Intel Corporation · NASDAQ:INTC
Intel — Investor Day (November 2015)
46 slides from Intel's investor day presentation, Nov 20, 2015
Slide 1: Investor Meeting 2015 Santa Clara
investor meeting 2015 SANTACLARA
Slide 2: Stacy Smith, Chief Financial Officer
investor meeting 2015 SANTACLARA Stacy Smith Chief Financial Officer
Slide 3: Key Message: Driving Shareholder Return
Key Message: Driving Shareholder Return Data Center: Big and Delivering Growth Client Computing enables critical IP blocks, profits, and cash flow Internet of Things and Memory Delivering Growth Insights into Investments, Cost and Capex Disciplined Capital Allocation
Slide 4: 2015 Financial Results
2015 Financial Results Full Year Revenue* ~$55.2B Full Year Gross Margin* ~62% Full Year Operating Profit Between** $13.5—$14.0B 4 *2015 forecast is based on Q1-Q3 actuals plus the midpoint of Q4 Business Outlook as announced on October 13, 2015. **Forecast range is based on current expectations giv
Slide 5: GDP Forecasts for 2015
GDP Forecasts for 2015 5 Forecast is based on current expectations given available information and is subject to change without notice. Source: IHS, November 2014 and November 2015 Forecasts.
Slide 6: Key Message: Driving Shareholder Return
Key Message: Driving Shareholder Return Data Center: Big and Delivering Growth Client Computing enables critical IP blocks, profits, and cash flow Internet of Things and Memory Delivering Growth Insights into Investments, Cost and Capex Disciplined Capital Allocation
Slide 7: Data Center Group
Data Center Group DCG Full Year Financials YTD 2015 PERFORMANCE $11.7B of Revenue: Up 13% YoY $5.7B Operating margin: Up 11% YoY 49% of revenue
Slide 8: Data Center ~ CPU Revenue
Data Center ~ CPU Revenue HPC, Workstation, Enterprise Server Networking & Storage Cloud Server 14-15* growth: Slightly down 14-15* growth: ~10% 14-15* growth: >40% *Forecast is based on current expectations given available information and is subject to change without notice.
Slide 9: Data Center ~ CPU Revenue Mix
DATA CENTER ~ CPU REVENUE MIX HPC Workstation Networking Enterprise Storage 2018 9 (inteD INVESTOR MEETING
Slide 10: Data Center ~ CPU Revenue Mix
Data Center ~ CPU Revenue MIX *Forecast is based on current expectations given available information and is subject to change without notice.
Slide 11: DCG 2016 Expectations
DCG 2016 Expectations Revenue growth in the mid-teens Operating Profit growth in the low double digits 11 Note: 2016 fiscal year has 53 work weeks. Forecast is based on current expectations given available information and is subject to change without notice.
Slide 12: Key Message: Driving Shareholder Return
Key Message: Driving Shareholder Return Data Center: Big and Delivering Growth Internet of Things and Memory Delivering Growth Insights into Investments, Cost and Capex Disciplined Capital Allocation Client Computing enables critical IP blocks, profits, and cash flow
Slide 13: PC TAM Forecast Changes For 2015
PC TAM Forecast Changes For 2015 Forecast is based on current expectations given available information and is subject to change without notice. For comparison purposes, IDC data has been adjusted to align with Intel’s “PC” definition which includes detachables. IDC reported its current 2015 forecast
Slide 14: Client Computing Group
Client Computing Group CCG Full Year Financials YTD 2015 PERFORMANCE ~$23.5B of Revenue: Down 10% YoY ~$5.4B Operating margin: Down 27% YoY ~23% of revenue
Slide 15: PC ASP & Segmentation
PC ASP & Segmentation 2015 Core Mix** >70% at an all time high 15 *PC ASPs include both CPU and chipset and excludes netbook. **Forecast is based on current expectations given available information and is subject to change without notice.
Slide 16: Improving Mobile Profitability in CCG
Improving Mobile Profitability in CCG On-track to exceed 2015 $800M Mobile* Profitability goal ~one-third from product margin improvements ~two-thirds from lower investment Low Double Digit Operating Profit Growth** for CCG in 2016 includes ~$800M of mobile profitability improvements ~two-thirds pro
Slide 17: 2014 Strategy Recap
2014 Strategy Recap IP and Manufacturing leadership are increasingly valuable advantages
Slide 18: 2015 Client Computing Business
2015 Client Computing Business Generates FCF + Profits: ~$8B in operating profit Gives us scale: >80% of total units Funds IP for use across the company: >50% of Shared IP Originates from Client Investments Forecast is based on current expectations given available information and is subject to chang
Slide 19: CCG 2016 Expectations
CCG 2016 Expectations PC Market projection: Slightly down, vs. 3rd party projections of ~flat CCG Revenue: Flat to low single-digit growth CCG Op Profit: Growth in the low double digits 19 Note: 2016 fiscal year has 53 work weeks. Forecast is based on current expectations given available information
Slide 20: Key Message: Driving Shareholder Return
Key Message: Driving Shareholder Return Internet of Things and Memory Delivering Growth
Slide 21: IOTG, NSG and SSG delivering Revenue Growth
IOTG, NSG and SSG delivering Revenue Growth *Forecast is based on current expectations given available information and is subject to change without notice.
Slide 22: Other Elements of our Portfolio
Other Elements of our Portfolio Internet of Things Group Software and Services Group Non-Volatile Memory Solutions Group Revenue Operating Margin *Forecast is based on current expectations given available information and is subject to change without notice.
Slide 23: Key Message: Driving Shareholder Return
Key Message: Driving Shareholder Return Insights into Investments, Cost and Capex
Slide 24: 2014 – 2016 Spending Shifts
2014 – 2016 Spending Shifts This chart shows spending (R&D and MG&A) shifts from 2014 to 2016F. Forecast is based on current expectations given available information and is subject to change without notice.
Slide 25: Capital Trends: 2012 – 2015
Capital Trends: 2012 – 2015 *Forecast is based on current expectations given available information and is subject to change without notice. 2015 forecast is based on the midpoint of Business Outlook as announced on October 13, 2015.
Slide 26: Capital Trends: 2012 – 2016
Capital Trends: 2012 – 2016 26 *Forecast is based on current expectations given available information and is subject to change without notice. forecast is based on the midpoint of Business Outlook as announced on October 13, 2015.
Slide 27: PC ASP and Cost Trends
PC ASP and Cost Trends 27 PC ASPs and costs include both CPU and chipset and exclude netbook. *Forecast is based on current expectations given available information and is subject to change without notice.
Slide 28: Segmented Costs to Compete Across Segments
Segmented Costs to Compete Across Segments PC Costs* *PC costs include both CPU and Chipset components and exclude netbook. **Forecast is based on current expectations given available information and is subject to change without notice.
Slide 29: Segmented Costs to Compete Across Segments
Segmented Costs to Compete Across Segments PC Costs* *PC costs include both CPU and Chipset components and exclude netbook. **Forecast is based on current expectations given available information and is subject to change without notice.
Slide 30: Segmented Costs to Compete Across Segments
Segmented Costs to Compete Across Segments PC Costs* *PC costs include both CPU and Chipset components and exclude netbook. **Forecast is based on current expectations given available information and is subject to change without notice.
Slide 31: Gross Margins
Gross Margins Gross Margin % Annual 2005-2016 *Forecast range is based on current expectations given available information and is subject to change without notice . 2015 forecast is based on the midpoint of Business Outlook as announced on October 13, 2015.
Slide 32: Gross Margin Drivers
Gross margin Drivers FY 2016 vs. FY 2015 10nm Start-up Costs 3D XPoint™ Ramp Forecast is based on current expectations given available information and is subject to change without notice . This gross margin walk is referencing Platform ASP and costs. Platform includes Client Computing Group, Data Ce
Slide 33: Key Message: Driving Shareholder Return
Key Message: Driving Shareholder Return Disciplined Capital Allocation
Slide 34: Strong Cash Generation
Strong Cash Generation Cash from Operations Free Cash Flow *Forecast is based on current expectations given available information and is subject to change without notice.
Slide 35: Bringing Down Net Cash Levels
Bringing Down Net Cash Levels Net cash is a non-GAAP measure which is used to assess our sources of liquidity and capital resources. See the non-GAAP reconciliation on the “Explanation of Non-GAAP Net Cash” slide.
Slide 36: Investing and Returning Cash to Shareholders
Investing and Returning Cash to Shareholders First: Invest in our business Second: Dividend Third: Share Repurchases
Slide 37: Share Repurchase, R&D, Capital Expenditure
Share Repurchase R&D Capital Expenditure 37 Source: Intel
Slide 38: Announcing Dividend Increase Starting in Q1 '16
Announcing Dividend Increase Starting in Q1 ‘16 38 *Forecast is based on current expectations given available information and is subject to change without notice.
Slide 39: Putting It All Together ~ 2016 Full Year Outlook
Putting It All Together ~ 2016 Full Year Outlook Note: 2016 fiscal year has 53 work weeks Revenue Growth in the Mid-Single Digits Gross Margin at 62% plus or minus a couple points Spending (R&D + MG&A)* as a percent of revenue down 1 / 2 point Capital Spending at $10B, plus or minus $500M (includes
Slide 40: One More Thing...
ONE MORE THING... 40 (ihtel) -NVESTOR MEETING
Slide 41: Growth Portfolio ~ The Revenue Mix
Growth Portfolio ~ The Revenue Mix 41 *Forecast is based on current expectations given available information and is subject to change without notice. Source: Intel
Slide 42: Napkin Math ~ The Growth Model
Napkin Math ~ The Growth Model Assumes DCG grows mid-teens Note: model assumes IOTG + Memory + Software at historical growth
Slide 43: Risk Factors
Risk Factors The statements in this presentation and other commentary that refer to future plans and expectations are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “goals,” “plans,” “believes,” “seeks,” “estimates,” “c
Slide 44: Investor Meeting 2015 Santa Clara
investor meeting 2015 SANTA CLARA
Slide 45: Explanation of Non-GAAP Net Cash
EXPLANATION OF NON-GAAP NET CASH The accompanying 2015 Investor Meeting materials contains references to non-GAAP financial measures of net cash, which is used by management when assessing our sources of liquidity and capital resources. We believe this non-GAAP financial measure is helpful to invest
Slide 46: Explanation of Non-GAAP Constant Currency
EXPLANATION OF NON-GAAP CONSTANT CURRENCY The 2015 Investor Meeting commentary contained references to non-GAAP financial measures of aggregated “software and services operating segments” net revenue and operating income on a constant currency basis. Constant currency results assume foreign revenues