SlideShare une entreprise Scribd logo
1  sur  26
THE WORLD LEADER
IN VISUAL COMPUTING
SAFE HARBOR
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements
as to: our strategies, performance, growth drivers, growth, opportunities, leadership, pipelines and design wins; estimates and
forecasts; the expansion of visual computing; value to shareholders and our commitment to capital return; growing markets for our
products; the performance and benefits of our products and technologies; and other predictions and estimates are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and any
other forward-looking statements that go beyond historical facts that are made in this presentation are subject to risks and
uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially
include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the
impact of technological development and competition; development of new products and technologies or enhancements to our
existing product and technologies; market acceptance of our products or our partners products; design, manufacturing or software
defects; changes in consumer preferences and demands; changes in industry standards and interfaces; unexpected loss of
performance of our products or technologies when integrated into systems and other factors. For a complete discussion of factors
that could materially affect our financial results and operations, please refer to the reports we file from time to time with the SEC,
including our Form 10-Q for the quarterly period ended April 27, 2014. Copies of reports we file with the SEC are posted on our
website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance
and speak only as of July 6, 2014, based on information currently available to us. Except as required by law, NVIDIA disclaims any
obligation to update these forward-looking statements to reflect future events or circumstances.
FINANCIAL MEASURES
This presentation contains historical revenue amounts for certain of our product lines and businesses which provides investors with
additional information to supplement the segment reporting information contained in our Form 10-K for the fiscal period ended
January 26, 2014. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-
GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in
accordance with U.S. GAAP. See the Appendix for a reconciliation between each non-GAAP measure and the most comparable GAAP
measure. Where we present non-GAAP financial measures, we generally exclude stock-based compensation, acquisition related
items, net warranty charges, and other income and expense.
3
GAMING
GPUs and
SOCs
AUTO
SYSTEMS
GRAPHICS
CARDS
IP
DESIGN and
VISUALIZATION
HPC
4
$0.81
$0.99
FY'11 FY'14
$2,856
$4,116
FY'11 FY'14
Revenue 13% CAGR
Revenue excludes chipset. Non-GAAP GM and EPS, see reconciliation in Appendix.
DRIVING GROWTH
45.1%
55.1%
FY'11 FY'14
Record GM % + 1,000 BPS EPS 7% CAGR
5
PC
GeForce growth is driven by more gamers globally and
games with ever-increasing production value.
CLOUD
Tesla and GRID are cloud GPU platforms that are made
possible by technologies we invented — GPGPU and
virtual GPU. Their growth is driven by enterprise
virtualization and internet service provider adoption
of high performance computing and big data analytics.
MOBILE
Tegra leverages NVIDIA’s visual computing capabilities
for mobile gaming, intelligent cars, robot computer
vision, and mobile devices.
GROWTH DRIVERS
IN
GROWING MARKETS
6
Global PC gaming growing at 12% CAGR
Steam, #1 digital game store, grew to 75M active
accounts (from 65M last Oct)
Tencent, #1 PC game company, grew 23% Q-Q
Huge new titles this fall — Call of Duty, Battlefield,
Assassin’s Creed, Evolve and The Crew
4K monitors need more powerful GPUs — forecasted to
grow from 2M to 12M over next 3 years
Upcoming NVIDIA Maxwell GPU & Intel Grantley start new
workstation cycle
GROWTH IN PC
GeForce and Quadro
0
100
200
300
400
500
600
700
800
900
Q1'14 Q1'15
+14%
SOURCE: Core PC gaming 12% CAGR: Newzoo. 4K monitor growth: Display Search.
Revenue(inmillions)
7
Google, Facebook, Baidu, Netflix revealed
machine learning efforts on Tesla
15 of “Top 15” most energy-efficient supercomputers in the
world now powered by Tesla (Last year was 10 of “Top 10”)
IBM announced supercomputer with Tesla
VMware announced support for GRID
Broadcom, Cavium, AMCC announced ARM64 CPU
supporting Tesla
>800 enterprise GRID trials on-going
GROWTH IN CLOUD
Tesla and GRID
0
20
40
60
Q1'14 Q1'15
+29%
SOURCE: “Top 15” in Green500 list, June ‘14.
Revenue(inmillions)
8
Tegra K1 is the highest performance mobile processor —
powers Xiaomi’s first tablet
Auto >$100M in FY15, ~$2B win pipeline to ship in next
few years
Google announces new initiatives to extend Android beyond
phones — Tegra K1 featured prominently:
1st 64-bit ARM
1st Android TV
1st Android extensions for gaming (AEP)
1st Tablet with computer vision
1st Android Auto
GROWTH IN MOBILE
Tegra
0
20
40
60
80
100
120
140
160
Q1'14 Q1'15
+42%
Revenue(inmillions)
9
1st Android TV
ANDROID BEYOND PHONES — GAMES, TV & CARS
1st 64bit ARM
(Android L)
1st AEP/Mobile
Gaming
1st Android Auto1st Tablet with Computer Vision 1-of-2 Chromebook ARM SOCs
10
“ It would be an understatement to say that apart from Google’s new playthings,
NVIDIA has been ubiquitous at the I/O developer conference as well – with its
Tegra K1 chip seemingly at the heart of all things cool.”
“ It will be exciting to see a new generation of games enabled by more powerful
hardware like NVIDIA’s Tegra K1”
“ NVIDIA has been a pervasive presence at the show, though you mightn’t
noticed… Tegra K1 lies at the center of many of Google’s recent efforts.”
“ A new focus on Android gaming has emerged at Google’s I/O 2014 event, with
Nvidia’s Tegra K1 processor showcasing the raw processing potential of the
next wave of mobile technology.”
“ Google Kicks It Up A Notch and Both NVIDIA and Lenovo Win at Google I/O.”
“ At the Google I/O Keynote, NVIDIA has a central role to play, and as it turns
out, the company’s Tegra K1 will be the powerhouse fueling Google’s recent
endeavors.”
“ The Google I/O showcased the close collaboration between Google and NVIDIA,
Tegra K1-powered devices is everywhere on the show floor.”
11
Augmented Reality HUD
FUTURE CARS NEED VISUAL SUPERCOMPUTERS
Intelligent Driver Assist Driver Interactions
Natural Language ProcessingPhotorealistic Materials High Fidelity Navigation
20+ brands
100+ models
~30M cars
NVIDIA WINS IN:
ON THE ROAD TODAY: 5.1M cars with NVIDIA
Leveraging our GPU assets, we can consistently build the
most advanced mobile processors and capture design wins
— Xiaomi, Google, etc.
We partner with leading wireless, connectivity, and analog
companies — ICERA, EMP, BRCM, INTC, Maxim, TI —
to create differentiated platforms.
And we can license GPU IP to vertically integrated
companies to create specialized mobile products.
GFXBench
GAMING AND AUTO ARE LARGE AND
GROWING MOBILE OPPORTUNITIES.
WHAT ABOUT MOBILE DEVICES?
13
25%
50%
75%
Q111 Q112 Q113 Q114
GeForce is about PC gaming — global PC gaming is
growing at 12% CAGR.
PC is vibrant because it is an open platform that allows
new business models that are friendly to developers —
League of Legends, DOTA, etc.
PC technology continuously advances to enable new
experiences — 4K displays, Oculus VR, etc.
Gamers are loyal to GeForce because we deliver the
highest quality software and the best gaming experience.
GeForce is rich with software capabilities that are
designed just for gaming — GeForce Experience,
ShadowPlay, GameWorks.
GEFORCE IS GROWING IN THE FACE OF
A SLOWING PC MARKET, COMPETITION
AND CONSOLES. CAN IT CONTINUE?
GeForce market share, calendar quarters: Mercury Research. Core PC gaming 12% CAGR: Newzoo.
GeForce Share
14
625M enterprise users
/20 concurrent users per GPU
*$1750 GRID GPU ASP
/4 enterprise IT refresh rate
= ~$13.7B TAM
DESIGNER
KNOWLEDGE WORKER
POWER USER
25M
200M
400M
100M
Virtualization
2.0
Virtualization
1.0
TASK WORKER
ENTERPRISE VIRTUALIZATION IS A
LARGE MARKET. HOW DO WE ESTIMATE
THE SIZE OF THE OPPORTUNITY?
15
NVIDIA monetizes innovation through product sales and
technology licensing. We expect to see continued
contributions from core and IP licensing in the future. One
of the important elements of our Tegra strategy is licensing
IP to vertically integrated companies. It is difficult to
estimate the mix of product sales to royalties. We expect
significant growth from Tesla, GRID, Tegra, as well as IP
core licensing. Our focus is driving overall earnings growth.
HOW IMPORTANT IS IP LICENSING TO
OUR EARNINGS GROWTH?
0
1000
2000
3000
4000
5000
6000
7000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0%
10%
20%
30%
40%
2006 2007 2008 2009 2010 2011 2012 2013 2014
0
200
400
600
800
1000
June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun
GRID GROWTH
TESLA GROWTH
PATENT PORTFOLIO GROWTH
% total Top500 performance from GPUs
ANDROID BEYOND PHONES
1st 64-bit ARM
1st Android TV
1st Android for gaming
1st Tablet with computer vision
1st Android Auto
# enterprise trials
16
NVIDIA has transformed from a PC components business
to a visual computing solutions business where complex
software is a major part of our value.
For example, GRID is possible because of GPU
virtualization software, Tesla is special because of the
CUDA parallel programming architecture and tools, and
GeForce is special because of GameWorks and GeForce
Experience.
Growth in Tesla, Quadro, GeForce gaming, and GRID will
increase corporate margins.
Growth in Tegra will decrease corporate margins while
increasing earnings.
Gross Margin is a Non-GAAP measure, see reconciliation in Appendix.
$3.3
$3.5
$4.0
$4.3
$4.1
39%
55%
30 %
40 %
50 %
60 %
$1
$2
$3
$4
$5
$6
FY'10 FY'11 FY'12 FY'13 FY'14
Revenue Gross Margin
Billions GROSS MARGIN HAS INCREASED TO A
RECORD 55%. WHAT CAN WE EXPECT
GOING FORWARD?
DRIVING RETURN ON INVESTMENT
Extending into Mobile-Cloud
ENTERING NEW MARKETS EFFICIENTLY LEVERAGING IP
Q1'14 Q1'15
+42%
Q1'14 Q1'15
+29%MOBILE CLOUD
18
CREATING SHAREHOLDER VALUE
Revenue comparisons Q1 FY15 vs. Q1 FY14. Non-GAAP GM, reconciliation in Appendix.
DRIVING GROWTH
EXCELLING IN OPERATIONS
GENERATING CASH AND
RETURNING
TO SHAREHOLDERS
PC up 14%
Cloud up 29%
Mobile up 42%
1,000 GM basis pts increase since FY′11
$3.7B cash generated since FY'10
$1B allocated for return in FY′15
$0.34/share annual dividend
Long-term commitment to capital return
$835
$488
$-
$250
$500
$750
$1,000
FY'14FY'10
STRONG CASH GENERATION
OCF/Millions
Total of $3.7B in last five years
(Operating cash flow)
612
617
568
500
550
600
650
700
FY'12 FY'13 FY'14
$-
$300
$600
$900
$1,200
FY'12 FY'13 FY'14 FY'15
CAPITAL RETURN ENHANCES
SHAREHOLDER VALUE
Millions
SHARES OUTSTANDINGCAPITAL RETURN
Capital
Returned to
Shareholders
Intended
Return to
Shareholders
Millions
GROWTH IN LARGE MARKETS
Cash generation in large
growing market
PC
Automotive base and
opportunities in gaming
MOBILE
Proven growth and
exposure to cloud &
enterprise virtualization
CLOUD
APPENDIX
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
(in millions)
FY2011 FY2014
Revenue, excluding chipset $2,856 $4,116
Chipset revenue 687 14
Revenue $3,543 $4,130
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
Non-GAAP
Stock-based
compensation
(a)
Net warranty
charges
(b)
Other
(c)
GAAP
FY2010 Gross margin 39.0% (0.7) (2.9) — 35.4%
FY2011 Gross margin 45.1% (0.2) (5.1) — 39.8%
FY2012 Gross margin 51.9% (0.3) — (0.1) 51.5%
FY2013 Gross margin 52.3% (0.3) — — 52.0%
FY2014 Gross margin 55.1% (0.3) 0.2 (0.1) 54.9%
Footnotes
(a) In addition to our historical practice of excluding stock-based compensation, during FY10, the Company completed a tender offer to purchase outstanding
stock options which resulted in a charge of $140.2 million. This charge was allocated to cost of goods sold of $11.4 million which resulted in 0.3% impact to
gross margin.
(b) Consists of charges for the weak die/packaging material set that was used in certain versions of our previous generation chips and the release of the remaining
warranty reserve balance in FY2014.
(c) Comprised of legal settlement charges.
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
Non-GAAP
Stock-based
compensation
(a)
Acquisition-
related items
(b)
Net warranty
charges
(c)
Other
(d)
Tax impact of
non-GAAP
adjustments
GAAP
FY2011
Revenue $3,543 $- $- $- $- $- $3,543
Gross profit $1,598 $(8) $- $(181) $- $- $1,409
Gross margin 45.1% (0.2)% - (5.1)% - - 39.8%
Operating expense $1,096 $92 $9 $13 $(57) $- $1,153
Operating income $502 $(100) $(9) $(194) $57 $- $256
Net income $476 $(100) $(9) $(194) $57 $23 $253
Shares used in diluted per share
calculation
589 - - - - - 589
Diluted net income per share $0.81 $- $- $- $- $- $0.43
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
Non-GAAP
Stock-based
compensatio
n (a)
Acquisition-
related
items (b)
Net warranty
charges
(c)
Other
(d)
Other
income &
expense
(e)
Tax impact
of non-GAAP
adjustments
GAAP
FY2014
Revenue $4,130 $- $- $- $- $- $- $4,130
Gross profit $2,274 $(11) $- $8 $(3) $- $- $2,268
Gross margin 55.1% (0.3)% - 0.2% (0.1)% - - 54.9%
Operating expense $1,610 $126 $32 $- $4 $- $- $1,772
Operating income $664 $(137) $(32) $8 $(7) $- $- $496
Net income $588 $(137) $(32) $8 $(7) $(2) $22 $440
Shares used in diluted per share
calculation
595 - - - - - - 595
Diluted net income per share $0.99 $- $- $- $- $- $- $0.74
Footnotes
(a) The stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense.
(b) Acquisition-related items are comprised of amortization of acquisition-related intangible assets and other acquisition-related costs such as transaction costs,
compensation charges and restructuring costs relating to the acquisitions.
(c) Net warranty charges are comprised of charges to cost of goods sold related to the weak die/packaging material set that was used in certain versions of our
previous generation chips and a charge to operating expense related to a class action lawsuit settlement, net of insurance reimbursement and reserve releases.
(d) Other is comprised of legal settlement charges and benefits.
(e) Other income and expense is comprised of gain on sale of non-affiliated investments and interest expense related to the debt discount portion of
convertible notes.

Contenu connexe

Tendances

Tendances (19)

GTC2016highlights
GTC2016highlightsGTC2016highlights
GTC2016highlights
 
NVIDIA - Strategic Management Presentation
NVIDIA - Strategic Management PresentationNVIDIA - Strategic Management Presentation
NVIDIA - Strategic Management Presentation
 
Nvidia
Nvidia Nvidia
Nvidia
 
nvidia-intro
nvidia-intronvidia-intro
nvidia-intro
 
NVIDIA GTC 2013 HIGHLIGHTS
NVIDIA GTC 2013 HIGHLIGHTSNVIDIA GTC 2013 HIGHLIGHTS
NVIDIA GTC 2013 HIGHLIGHTS
 
Nvidia time-line
Nvidia time-lineNvidia time-line
Nvidia time-line
 
Highlights from NVIDIA at CES 2014
Highlights from NVIDIA at CES 2014Highlights from NVIDIA at CES 2014
Highlights from NVIDIA at CES 2014
 
NVIDIA Investor's Day 2014 Presentation by Rob Csongor: Tomorrow's Car Today
NVIDIA Investor's Day 2014 Presentation by Rob Csongor: Tomorrow's Car TodayNVIDIA Investor's Day 2014 Presentation by Rob Csongor: Tomorrow's Car Today
NVIDIA Investor's Day 2014 Presentation by Rob Csongor: Tomorrow's Car Today
 
NVIDIA CES 2018 Highlights
NVIDIA CES 2018 HighlightsNVIDIA CES 2018 Highlights
NVIDIA CES 2018 Highlights
 
Silicom Ventures Talk Aug 2013 - GPUs and Parallel Programming create new opp...
Silicom Ventures Talk Aug 2013 - GPUs and Parallel Programming create new opp...Silicom Ventures Talk Aug 2013 - GPUs and Parallel Programming create new opp...
Silicom Ventures Talk Aug 2013 - GPUs and Parallel Programming create new opp...
 
NVIDIA Is Revolutionizing Computing - June 2017
NVIDIA Is Revolutionizing Computing - June 2017 NVIDIA Is Revolutionizing Computing - June 2017
NVIDIA Is Revolutionizing Computing - June 2017
 
nvidia COMPANY FULL presentation
 nvidia COMPANY FULL presentation nvidia COMPANY FULL presentation
nvidia COMPANY FULL presentation
 
GTC World Tour 2017 highlights
GTC World Tour 2017 highlightsGTC World Tour 2017 highlights
GTC World Tour 2017 highlights
 
Nvidia 2018 1
Nvidia 2018 1Nvidia 2018 1
Nvidia 2018 1
 
NVIDIA Overview 2015
NVIDIA Overview 2015NVIDIA Overview 2015
NVIDIA Overview 2015
 
Benefits of Deploying VMware Horizon and vSphere with NVIDIA GRID vGPU
Benefits of Deploying VMware Horizon and vSphere with NVIDIA GRID vGPUBenefits of Deploying VMware Horizon and vSphere with NVIDIA GRID vGPU
Benefits of Deploying VMware Horizon and vSphere with NVIDIA GRID vGPU
 
Top 5 Stories in Design and Visualization - Feb. 8th, 2018
Top 5 Stories in Design and Visualization - Feb. 8th, 2018Top 5 Stories in Design and Visualization - Feb. 8th, 2018
Top 5 Stories in Design and Visualization - Feb. 8th, 2018
 
CES 2012 Jen-Hsun Huang Press Conference
CES 2012 Jen-Hsun Huang Press ConferenceCES 2012 Jen-Hsun Huang Press Conference
CES 2012 Jen-Hsun Huang Press Conference
 
Fueling the AI Revolution with Gaming
Fueling the AI Revolution with GamingFueling the AI Revolution with Gaming
Fueling the AI Revolution with Gaming
 

En vedette

En vedette (9)

A Year of Innovation Using the DGX-1 AI Supercomputer
A Year of Innovation Using the DGX-1 AI SupercomputerA Year of Innovation Using the DGX-1 AI Supercomputer
A Year of Innovation Using the DGX-1 AI Supercomputer
 
GeForce is PC Gaming
GeForce is PC GamingGeForce is PC Gaming
GeForce is PC Gaming
 
Top 5 Deep Learning and AI Stories 1/27
Top 5 Deep Learning and AI Stories 1/27Top 5 Deep Learning and AI Stories 1/27
Top 5 Deep Learning and AI Stories 1/27
 
NVIDIA – Inventor of the GPU
NVIDIA – Inventor of the GPUNVIDIA – Inventor of the GPU
NVIDIA – Inventor of the GPU
 
OpenACC Highlights - March
OpenACC Highlights - MarchOpenACC Highlights - March
OpenACC Highlights - March
 
HPC Top 5 Stories: March 22, 2017
HPC Top 5 Stories: March 22, 2017HPC Top 5 Stories: March 22, 2017
HPC Top 5 Stories: March 22, 2017
 
The Next Generation of AI and Deep Learning - GTC17
The Next Generation of AI and Deep Learning - GTC17The Next Generation of AI and Deep Learning - GTC17
The Next Generation of AI and Deep Learning - GTC17
 
Top 5 Deep Learning and AI Stories 3/9
Top 5 Deep Learning and AI Stories 3/9Top 5 Deep Learning and AI Stories 3/9
Top 5 Deep Learning and AI Stories 3/9
 
What is Deep Learning?
What is Deep Learning?What is Deep Learning?
What is Deep Learning?
 

Similaire à NVIDIA Business Overview July 2014

Sharon#Final marketing plan
Sharon#Final marketing planSharon#Final marketing plan
Sharon#Final marketing plan
Sharon Huang
 
Strategic Audit Nvidia Corporation STUDENT .docx
Strategic Audit  Nvidia Corporation  STUDENT .docxStrategic Audit  Nvidia Corporation  STUDENT .docx
Strategic Audit Nvidia Corporation STUDENT .docx
rjoseph5
 
Strategic Audit Nvidia Corporation STUDENT .docx
Strategic Audit  Nvidia Corporation  STUDENT .docxStrategic Audit  Nvidia Corporation  STUDENT .docx
Strategic Audit Nvidia Corporation STUDENT .docx
susanschei
 
AMD 2008 Annual ReportonForm10-K
AMD 2008 Annual ReportonForm10-KAMD 2008 Annual ReportonForm10-K
AMD 2008 Annual ReportonForm10-K
finance34
 
AMD_Stock Pitch Report_final
AMD_Stock Pitch Report_finalAMD_Stock Pitch Report_final
AMD_Stock Pitch Report_final
Xitong Zhou
 
Group08_HTC & Virtual Reality Shivangi Gautam.pptx
Group08_HTC & Virtual Reality Shivangi Gautam.pptxGroup08_HTC & Virtual Reality Shivangi Gautam.pptx
Group08_HTC & Virtual Reality Shivangi Gautam.pptx
CHANCHALPRIYA1
 

Similaire à NVIDIA Business Overview July 2014 (20)

NVIDIA-Investor-Presentation-Oct-2022-(1).pptx
NVIDIA-Investor-Presentation-Oct-2022-(1).pptxNVIDIA-Investor-Presentation-Oct-2022-(1).pptx
NVIDIA-Investor-Presentation-Oct-2022-(1).pptx
 
Navigating the SEO of Tomorrow, Competitive Benchmarking, China as an e-Comme...
Navigating the SEO of Tomorrow, Competitive Benchmarking, China as an e-Comme...Navigating the SEO of Tomorrow, Competitive Benchmarking, China as an e-Comme...
Navigating the SEO of Tomorrow, Competitive Benchmarking, China as an e-Comme...
 
Sharon#Final marketing plan
Sharon#Final marketing planSharon#Final marketing plan
Sharon#Final marketing plan
 
google presentation.pdf
google presentation.pdfgoogle presentation.pdf
google presentation.pdf
 
Strategic Audit Nvidia Corporation STUDENT .docx
Strategic Audit  Nvidia Corporation  STUDENT .docxStrategic Audit  Nvidia Corporation  STUDENT .docx
Strategic Audit Nvidia Corporation STUDENT .docx
 
Strategic Audit Nvidia Corporation STUDENT .docx
Strategic Audit  Nvidia Corporation  STUDENT .docxStrategic Audit  Nvidia Corporation  STUDENT .docx
Strategic Audit Nvidia Corporation STUDENT .docx
 
Go+ product
Go+ productGo+ product
Go+ product
 
STKI Israeli IT market study 2022
STKI Israeli IT market study 2022STKI Israeli IT market study 2022
STKI Israeli IT market study 2022
 
Skyworks Perspective on 5G and Introduction of the Sky5 Product Line for 5G R...
Skyworks Perspective on 5G and Introduction of the Sky5 Product Line for 5G R...Skyworks Perspective on 5G and Introduction of the Sky5 Product Line for 5G R...
Skyworks Perspective on 5G and Introduction of the Sky5 Product Line for 5G R...
 
E-Magazine November - 2015
E-Magazine November - 2015E-Magazine November - 2015
E-Magazine November - 2015
 
AMD 2008 Annual ReportonForm10-K
AMD 2008 Annual ReportonForm10-KAMD 2008 Annual ReportonForm10-K
AMD 2008 Annual ReportonForm10-K
 
ZDNet Korea event introduction & schedule 2015
ZDNet Korea event introduction & schedule 2015 ZDNet Korea event introduction & schedule 2015
ZDNet Korea event introduction & schedule 2015
 
Financial results and Earnings Announcements - Q1 FY 22
Financial results and Earnings Announcements - Q1 FY 22   Financial results and Earnings Announcements - Q1 FY 22
Financial results and Earnings Announcements - Q1 FY 22
 
AMD_Stock Pitch Report_final
AMD_Stock Pitch Report_finalAMD_Stock Pitch Report_final
AMD_Stock Pitch Report_final
 
Game engines market by reports and data
Game engines market by reports and dataGame engines market by reports and data
Game engines market by reports and data
 
Marketing news
Marketing newsMarketing news
Marketing news
 
Gtc2013 recap
Gtc2013 recapGtc2013 recap
Gtc2013 recap
 
STKI Israeli IT market study 2022__2 pages
STKI Israeli IT market study 2022__2 pagesSTKI Israeli IT market study 2022__2 pages
STKI Israeli IT market study 2022__2 pages
 
Group08_HTC & Virtual Reality Shivangi Gautam.pptx
Group08_HTC & Virtual Reality Shivangi Gautam.pptxGroup08_HTC & Virtual Reality Shivangi Gautam.pptx
Group08_HTC & Virtual Reality Shivangi Gautam.pptx
 
Aricent Technology Vision 2016
Aricent Technology Vision 2016Aricent Technology Vision 2016
Aricent Technology Vision 2016
 

Plus de NVIDIA

NVIDIA GTC 2020 October Summary
NVIDIA GTC 2020 October SummaryNVIDIA GTC 2020 October Summary
NVIDIA GTC 2020 October Summary
NVIDIA
 

Plus de NVIDIA (20)

NVIDIA Story 2023.pdf
NVIDIA Story 2023.pdfNVIDIA Story 2023.pdf
NVIDIA Story 2023.pdf
 
NVIDIA GTC2022 Spring Highlights
NVIDIA GTC2022 Spring HighlightsNVIDIA GTC2022 Spring Highlights
NVIDIA GTC2022 Spring Highlights
 
NVIDIA Brochure 2021 Company Overview
NVIDIA Brochure 2021 Company OverviewNVIDIA Brochure 2021 Company Overview
NVIDIA Brochure 2021 Company Overview
 
NVIDIA GTC 2020 October Summary
NVIDIA GTC 2020 October SummaryNVIDIA GTC 2020 October Summary
NVIDIA GTC 2020 October Summary
 
The Best of AI and HPC in Healthcare and Life Sciences
The Best of AI and HPC in Healthcare and Life SciencesThe Best of AI and HPC in Healthcare and Life Sciences
The Best of AI and HPC in Healthcare and Life Sciences
 
NVIDIA CEO Jensen Huang Presentation at Supercomputing 2019
NVIDIA CEO Jensen Huang Presentation at Supercomputing 2019NVIDIA CEO Jensen Huang Presentation at Supercomputing 2019
NVIDIA CEO Jensen Huang Presentation at Supercomputing 2019
 
NLP for Biomedical Applications
NLP for Biomedical ApplicationsNLP for Biomedical Applications
NLP for Biomedical Applications
 
Top 5 Deep Learning and AI Stories - August 30, 2019
Top 5 Deep Learning and AI Stories - August 30, 2019Top 5 Deep Learning and AI Stories - August 30, 2019
Top 5 Deep Learning and AI Stories - August 30, 2019
 
Seven Ways to Boost Artificial Intelligence Research
Seven Ways to Boost Artificial Intelligence ResearchSeven Ways to Boost Artificial Intelligence Research
Seven Ways to Boost Artificial Intelligence Research
 
NVIDIA Developer Program Overview
NVIDIA Developer Program OverviewNVIDIA Developer Program Overview
NVIDIA Developer Program Overview
 
NVIDIA at Computex 2019
NVIDIA at Computex 2019 NVIDIA at Computex 2019
NVIDIA at Computex 2019
 
Top 5 DGX Sessions From GTC 2019
Top 5 DGX Sessions From GTC 2019Top 5 DGX Sessions From GTC 2019
Top 5 DGX Sessions From GTC 2019
 
DGX POD Top 4 Sessions From GTC 2019
DGX POD Top 4 Sessions From GTC 2019DGX POD Top 4 Sessions From GTC 2019
DGX POD Top 4 Sessions From GTC 2019
 
Top 5 Data Science Sessions from GTC 2019
Top 5 Data Science Sessions from GTC 2019Top 5 Data Science Sessions from GTC 2019
Top 5 Data Science Sessions from GTC 2019
 
This Week in Data Science - Top 5 News - April 26, 2019
This Week in Data Science - Top 5 News - April 26, 2019This Week in Data Science - Top 5 News - April 26, 2019
This Week in Data Science - Top 5 News - April 26, 2019
 
GTC 2019 Keynote in Silicon Valley
GTC 2019 Keynote in Silicon ValleyGTC 2019 Keynote in Silicon Valley
GTC 2019 Keynote in Silicon Valley
 
CUDA DLI Training Courses at GTC 2019
CUDA DLI Training Courses at GTC 2019CUDA DLI Training Courses at GTC 2019
CUDA DLI Training Courses at GTC 2019
 
DGX Sessions You Won't Want to Miss at GTC 2019
DGX Sessions You Won't Want to Miss at GTC 2019DGX Sessions You Won't Want to Miss at GTC 2019
DGX Sessions You Won't Want to Miss at GTC 2019
 
Transforming Healthcare at GTC Silicon Valley
Transforming Healthcare at GTC Silicon ValleyTransforming Healthcare at GTC Silicon Valley
Transforming Healthcare at GTC Silicon Valley
 
OpenACC Monthly Highlights February 2019
OpenACC Monthly Highlights February 2019OpenACC Monthly Highlights February 2019
OpenACC Monthly Highlights February 2019
 

Dernier

Mifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pills
Mifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pillsMifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pills
Mifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pills
Abortion pills in Kuwait Cytotec pills in Kuwait
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
Renandantas16
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
dollysharma2066
 
Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
Matteo Carbone
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
amitlee9823
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
amitlee9823
 

Dernier (20)

Call Girls in Gomti Nagar - 7388211116 - With room Service
Call Girls in Gomti Nagar - 7388211116  - With room ServiceCall Girls in Gomti Nagar - 7388211116  - With room Service
Call Girls in Gomti Nagar - 7388211116 - With room Service
 
Mifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pills
Mifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pillsMifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pills
Mifty kit IN Salmiya (+918133066128) Abortion pills IN Salmiyah Cytotec pills
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptx
 
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
VVVIP Call Girls In Greater Kailash ➡️ Delhi ➡️ 9999965857 🚀 No Advance 24HRS...
 
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf0183760ssssssssssssssssssssssssssss00101011 (27).pdf
0183760ssssssssssssssssssssssssssss00101011 (27).pdf
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
Lucknow 💋 Escorts in Lucknow - 450+ Call Girl Cash Payment 8923113531 Neha Th...
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Forklift Operations: Safety through Cartoons
Forklift Operations: Safety through CartoonsForklift Operations: Safety through Cartoons
Forklift Operations: Safety through Cartoons
 
Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usageInsurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
 
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
Call Girls Jp Nagar Just Call 👗 7737669865 👗 Top Class Call Girl Service Bang...
 
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
Call Girls Electronic City Just Call 👗 7737669865 👗 Top Class Call Girl Servi...
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptxB.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Service
 
Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023Mondelez State of Snacking and Future Trends 2023
Mondelez State of Snacking and Future Trends 2023
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
 
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case studyThe Coffee Bean & Tea Leaf(CBTL), Business strategy case study
The Coffee Bean & Tea Leaf(CBTL), Business strategy case study
 
Grateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdfGrateful 7 speech thanking everyone that has helped.pdf
Grateful 7 speech thanking everyone that has helped.pdf
 

NVIDIA Business Overview July 2014

  • 1. THE WORLD LEADER IN VISUAL COMPUTING
  • 2. SAFE HARBOR FORWARD-LOOKING STATEMENTS Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our strategies, performance, growth drivers, growth, opportunities, leadership, pipelines and design wins; estimates and forecasts; the expansion of visual computing; value to shareholders and our commitment to capital return; growing markets for our products; the performance and benefits of our products and technologies; and other predictions and estimates are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and any other forward-looking statements that go beyond historical facts that are made in this presentation are subject to risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners products; design, manufacturing or software defects; changes in consumer preferences and demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems and other factors. For a complete discussion of factors that could materially affect our financial results and operations, please refer to the reports we file from time to time with the SEC, including our Form 10-Q for the quarterly period ended April 27, 2014. Copies of reports we file with the SEC are posted on our website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of July 6, 2014, based on information currently available to us. Except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. FINANCIAL MEASURES This presentation contains historical revenue amounts for certain of our product lines and businesses which provides investors with additional information to supplement the segment reporting information contained in our Form 10-K for the fiscal period ended January 26, 2014. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non- GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. See the Appendix for a reconciliation between each non-GAAP measure and the most comparable GAAP measure. Where we present non-GAAP financial measures, we generally exclude stock-based compensation, acquisition related items, net warranty charges, and other income and expense.
  • 4. 4 $0.81 $0.99 FY'11 FY'14 $2,856 $4,116 FY'11 FY'14 Revenue 13% CAGR Revenue excludes chipset. Non-GAAP GM and EPS, see reconciliation in Appendix. DRIVING GROWTH 45.1% 55.1% FY'11 FY'14 Record GM % + 1,000 BPS EPS 7% CAGR
  • 5. 5 PC GeForce growth is driven by more gamers globally and games with ever-increasing production value. CLOUD Tesla and GRID are cloud GPU platforms that are made possible by technologies we invented — GPGPU and virtual GPU. Their growth is driven by enterprise virtualization and internet service provider adoption of high performance computing and big data analytics. MOBILE Tegra leverages NVIDIA’s visual computing capabilities for mobile gaming, intelligent cars, robot computer vision, and mobile devices. GROWTH DRIVERS IN GROWING MARKETS
  • 6. 6 Global PC gaming growing at 12% CAGR Steam, #1 digital game store, grew to 75M active accounts (from 65M last Oct) Tencent, #1 PC game company, grew 23% Q-Q Huge new titles this fall — Call of Duty, Battlefield, Assassin’s Creed, Evolve and The Crew 4K monitors need more powerful GPUs — forecasted to grow from 2M to 12M over next 3 years Upcoming NVIDIA Maxwell GPU & Intel Grantley start new workstation cycle GROWTH IN PC GeForce and Quadro 0 100 200 300 400 500 600 700 800 900 Q1'14 Q1'15 +14% SOURCE: Core PC gaming 12% CAGR: Newzoo. 4K monitor growth: Display Search. Revenue(inmillions)
  • 7. 7 Google, Facebook, Baidu, Netflix revealed machine learning efforts on Tesla 15 of “Top 15” most energy-efficient supercomputers in the world now powered by Tesla (Last year was 10 of “Top 10”) IBM announced supercomputer with Tesla VMware announced support for GRID Broadcom, Cavium, AMCC announced ARM64 CPU supporting Tesla >800 enterprise GRID trials on-going GROWTH IN CLOUD Tesla and GRID 0 20 40 60 Q1'14 Q1'15 +29% SOURCE: “Top 15” in Green500 list, June ‘14. Revenue(inmillions)
  • 8. 8 Tegra K1 is the highest performance mobile processor — powers Xiaomi’s first tablet Auto >$100M in FY15, ~$2B win pipeline to ship in next few years Google announces new initiatives to extend Android beyond phones — Tegra K1 featured prominently: 1st 64-bit ARM 1st Android TV 1st Android extensions for gaming (AEP) 1st Tablet with computer vision 1st Android Auto GROWTH IN MOBILE Tegra 0 20 40 60 80 100 120 140 160 Q1'14 Q1'15 +42% Revenue(inmillions)
  • 9. 9 1st Android TV ANDROID BEYOND PHONES — GAMES, TV & CARS 1st 64bit ARM (Android L) 1st AEP/Mobile Gaming 1st Android Auto1st Tablet with Computer Vision 1-of-2 Chromebook ARM SOCs
  • 10. 10 “ It would be an understatement to say that apart from Google’s new playthings, NVIDIA has been ubiquitous at the I/O developer conference as well – with its Tegra K1 chip seemingly at the heart of all things cool.” “ It will be exciting to see a new generation of games enabled by more powerful hardware like NVIDIA’s Tegra K1” “ NVIDIA has been a pervasive presence at the show, though you mightn’t noticed… Tegra K1 lies at the center of many of Google’s recent efforts.” “ A new focus on Android gaming has emerged at Google’s I/O 2014 event, with Nvidia’s Tegra K1 processor showcasing the raw processing potential of the next wave of mobile technology.” “ Google Kicks It Up A Notch and Both NVIDIA and Lenovo Win at Google I/O.” “ At the Google I/O Keynote, NVIDIA has a central role to play, and as it turns out, the company’s Tegra K1 will be the powerhouse fueling Google’s recent endeavors.” “ The Google I/O showcased the close collaboration between Google and NVIDIA, Tegra K1-powered devices is everywhere on the show floor.”
  • 11. 11 Augmented Reality HUD FUTURE CARS NEED VISUAL SUPERCOMPUTERS Intelligent Driver Assist Driver Interactions Natural Language ProcessingPhotorealistic Materials High Fidelity Navigation 20+ brands 100+ models ~30M cars NVIDIA WINS IN: ON THE ROAD TODAY: 5.1M cars with NVIDIA
  • 12. Leveraging our GPU assets, we can consistently build the most advanced mobile processors and capture design wins — Xiaomi, Google, etc. We partner with leading wireless, connectivity, and analog companies — ICERA, EMP, BRCM, INTC, Maxim, TI — to create differentiated platforms. And we can license GPU IP to vertically integrated companies to create specialized mobile products. GFXBench GAMING AND AUTO ARE LARGE AND GROWING MOBILE OPPORTUNITIES. WHAT ABOUT MOBILE DEVICES?
  • 13. 13 25% 50% 75% Q111 Q112 Q113 Q114 GeForce is about PC gaming — global PC gaming is growing at 12% CAGR. PC is vibrant because it is an open platform that allows new business models that are friendly to developers — League of Legends, DOTA, etc. PC technology continuously advances to enable new experiences — 4K displays, Oculus VR, etc. Gamers are loyal to GeForce because we deliver the highest quality software and the best gaming experience. GeForce is rich with software capabilities that are designed just for gaming — GeForce Experience, ShadowPlay, GameWorks. GEFORCE IS GROWING IN THE FACE OF A SLOWING PC MARKET, COMPETITION AND CONSOLES. CAN IT CONTINUE? GeForce market share, calendar quarters: Mercury Research. Core PC gaming 12% CAGR: Newzoo. GeForce Share
  • 14. 14 625M enterprise users /20 concurrent users per GPU *$1750 GRID GPU ASP /4 enterprise IT refresh rate = ~$13.7B TAM DESIGNER KNOWLEDGE WORKER POWER USER 25M 200M 400M 100M Virtualization 2.0 Virtualization 1.0 TASK WORKER ENTERPRISE VIRTUALIZATION IS A LARGE MARKET. HOW DO WE ESTIMATE THE SIZE OF THE OPPORTUNITY?
  • 15. 15 NVIDIA monetizes innovation through product sales and technology licensing. We expect to see continued contributions from core and IP licensing in the future. One of the important elements of our Tegra strategy is licensing IP to vertically integrated companies. It is difficult to estimate the mix of product sales to royalties. We expect significant growth from Tesla, GRID, Tegra, as well as IP core licensing. Our focus is driving overall earnings growth. HOW IMPORTANT IS IP LICENSING TO OUR EARNINGS GROWTH? 0 1000 2000 3000 4000 5000 6000 7000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0% 10% 20% 30% 40% 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 200 400 600 800 1000 June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun GRID GROWTH TESLA GROWTH PATENT PORTFOLIO GROWTH % total Top500 performance from GPUs ANDROID BEYOND PHONES 1st 64-bit ARM 1st Android TV 1st Android for gaming 1st Tablet with computer vision 1st Android Auto # enterprise trials
  • 16. 16 NVIDIA has transformed from a PC components business to a visual computing solutions business where complex software is a major part of our value. For example, GRID is possible because of GPU virtualization software, Tesla is special because of the CUDA parallel programming architecture and tools, and GeForce is special because of GameWorks and GeForce Experience. Growth in Tesla, Quadro, GeForce gaming, and GRID will increase corporate margins. Growth in Tegra will decrease corporate margins while increasing earnings. Gross Margin is a Non-GAAP measure, see reconciliation in Appendix. $3.3 $3.5 $4.0 $4.3 $4.1 39% 55% 30 % 40 % 50 % 60 % $1 $2 $3 $4 $5 $6 FY'10 FY'11 FY'12 FY'13 FY'14 Revenue Gross Margin Billions GROSS MARGIN HAS INCREASED TO A RECORD 55%. WHAT CAN WE EXPECT GOING FORWARD?
  • 17. DRIVING RETURN ON INVESTMENT Extending into Mobile-Cloud ENTERING NEW MARKETS EFFICIENTLY LEVERAGING IP Q1'14 Q1'15 +42% Q1'14 Q1'15 +29%MOBILE CLOUD
  • 18. 18 CREATING SHAREHOLDER VALUE Revenue comparisons Q1 FY15 vs. Q1 FY14. Non-GAAP GM, reconciliation in Appendix. DRIVING GROWTH EXCELLING IN OPERATIONS GENERATING CASH AND RETURNING TO SHAREHOLDERS PC up 14% Cloud up 29% Mobile up 42% 1,000 GM basis pts increase since FY′11 $3.7B cash generated since FY'10 $1B allocated for return in FY′15 $0.34/share annual dividend Long-term commitment to capital return
  • 20. 612 617 568 500 550 600 650 700 FY'12 FY'13 FY'14 $- $300 $600 $900 $1,200 FY'12 FY'13 FY'14 FY'15 CAPITAL RETURN ENHANCES SHAREHOLDER VALUE Millions SHARES OUTSTANDINGCAPITAL RETURN Capital Returned to Shareholders Intended Return to Shareholders Millions
  • 21. GROWTH IN LARGE MARKETS Cash generation in large growing market PC Automotive base and opportunities in gaming MOBILE Proven growth and exposure to cloud & enterprise virtualization CLOUD
  • 23. RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (in millions) FY2011 FY2014 Revenue, excluding chipset $2,856 $4,116 Chipset revenue 687 14 Revenue $3,543 $4,130
  • 24. RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES Non-GAAP Stock-based compensation (a) Net warranty charges (b) Other (c) GAAP FY2010 Gross margin 39.0% (0.7) (2.9) — 35.4% FY2011 Gross margin 45.1% (0.2) (5.1) — 39.8% FY2012 Gross margin 51.9% (0.3) — (0.1) 51.5% FY2013 Gross margin 52.3% (0.3) — — 52.0% FY2014 Gross margin 55.1% (0.3) 0.2 (0.1) 54.9% Footnotes (a) In addition to our historical practice of excluding stock-based compensation, during FY10, the Company completed a tender offer to purchase outstanding stock options which resulted in a charge of $140.2 million. This charge was allocated to cost of goods sold of $11.4 million which resulted in 0.3% impact to gross margin. (b) Consists of charges for the weak die/packaging material set that was used in certain versions of our previous generation chips and the release of the remaining warranty reserve balance in FY2014. (c) Comprised of legal settlement charges.
  • 25. RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES Non-GAAP Stock-based compensation (a) Acquisition- related items (b) Net warranty charges (c) Other (d) Tax impact of non-GAAP adjustments GAAP FY2011 Revenue $3,543 $- $- $- $- $- $3,543 Gross profit $1,598 $(8) $- $(181) $- $- $1,409 Gross margin 45.1% (0.2)% - (5.1)% - - 39.8% Operating expense $1,096 $92 $9 $13 $(57) $- $1,153 Operating income $502 $(100) $(9) $(194) $57 $- $256 Net income $476 $(100) $(9) $(194) $57 $23 $253 Shares used in diluted per share calculation 589 - - - - - 589 Diluted net income per share $0.81 $- $- $- $- $- $0.43
  • 26. RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES Non-GAAP Stock-based compensatio n (a) Acquisition- related items (b) Net warranty charges (c) Other (d) Other income & expense (e) Tax impact of non-GAAP adjustments GAAP FY2014 Revenue $4,130 $- $- $- $- $- $- $4,130 Gross profit $2,274 $(11) $- $8 $(3) $- $- $2,268 Gross margin 55.1% (0.3)% - 0.2% (0.1)% - - 54.9% Operating expense $1,610 $126 $32 $- $4 $- $- $1,772 Operating income $664 $(137) $(32) $8 $(7) $- $- $496 Net income $588 $(137) $(32) $8 $(7) $(2) $22 $440 Shares used in diluted per share calculation 595 - - - - - - 595 Diluted net income per share $0.99 $- $- $- $- $- $- $0.74 Footnotes (a) The stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense. (b) Acquisition-related items are comprised of amortization of acquisition-related intangible assets and other acquisition-related costs such as transaction costs, compensation charges and restructuring costs relating to the acquisitions. (c) Net warranty charges are comprised of charges to cost of goods sold related to the weak die/packaging material set that was used in certain versions of our previous generation chips and a charge to operating expense related to a class action lawsuit settlement, net of insurance reimbursement and reserve releases. (d) Other is comprised of legal settlement charges and benefits. (e) Other income and expense is comprised of gain on sale of non-affiliated investments and interest expense related to the debt discount portion of convertible notes.