Slide 1: AMD Financial Results Second Quarter 2022
AMD FINANCIAL RESULTS Second Quarter 2022 August 2, 2022
Slide 2: Cautionary Statement
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202222 CAUTIONARY STATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) such as the features, functionality, performance, availability, timing and expected benefits of AMD products and AMD’s expected third
Slide 3: Our Journey
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202233 Expanding Customer & Partner Ecosystem Significant Business Acceleration Outstanding Financial Performance Best Product Portfolio in History OUR JOURNEY
Slide 4: Our Leadership Technology
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202244 OUR LEADERSHIP TECHNOLOGY Software Enablement Open-source software co-designed with hardware and optimized for performance across heterogenous solutions Data Center Leadership Driving innovation in cloud, enterprise, AI and accelerated computing Advanced
Slide 5: Our Best Ever Product Portfolio
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202255 OUR BEST EVER PRODUCT PORTFOLIO Embedded Leadership FPGAs, Adaptive SOCs and Embedded CPUs and GPUs for a broad set of markets Gaming Top-to-bottom Radeon™ desktop and notebook GPUs and premium game console and semi-custom products Client Leadership Ryzen
Slide 6: Quarterly Summary Q2 2022
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 20226 QUARTERLY SUMMARY Q2 2022¹ ▪ Record revenue of $6.6 billion grew 70% y/y ▪ Growth across all segments: Data Center, Client, Gaming and Embedded 1. See Appendices for GAAP to Non-GAAP reconciliation 48% 46% Q2 2021 Q2 2022 $3.9B $6.6B Q2 2021 Q2 2022 ▪ GAAP
Slide 7: Quarterly Summary Q2 2022
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 20227 QUARTERLY SUMMARY Q2 2022¹ 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Net income $447 million; Non-GAAP net income $1.7 billion ▪ EPS reflects lower net income and higher share count as a result of Xilinx acquisition; Non-GAAP EPS primarily dr
Slide 8: Q2 2022 Summary P&L | GAAP
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 20228 ($ in millions, except per share data) Q2’22 Q2’21 Y/Y Revenue $6,550 $3,850 Up 70% Gross Profit $3,028 $1,830 Up 65% Gross Margin % 46% 48% Down 140 bps Operating Expenses $2,508 $1,000 Up 151% Operating Expense/Revenue % 38% 26% Up 12 pp Operating Income
Slide 9: Q2 2022 Summary P&L | Non-GAAP
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 20229 ($ in millions, except per share data) Q2’22 Q2’21 Y/Y Revenue $6,550 $3,850 Up 70% Gross Profit $3,538 $1,832 Up 93% Gross Margin % 54% 48% Up 640 bps Operating Expenses $1,562 $909 Up 72% Operating Expense/Revenue % 24% 24% Flat Operating Income $1,982 $
Slide 10: Significant Revenue Growth: Revenue Trend
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202210 $2.8 $3.2 $3.4 $3.9 $4.3 $4.8 $5.9 $6.6 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 SIGNIFICANT REVENUE GROWTH +70% y/y REVENUE TREND ($ in Billions)
Slide 11: Gross Margin Trend (GAAP and Non-GAAP)
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202211 44% 45% 46% 48% 48% 50% 48% 46% Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 54% (Non-GAAP) DATA CENTER & EMBEDDED GROWTH DRIVE HIGHER MARGIN GROSS MARGIN TREND (GAAP and Non-GAAP)* *See Appendices for GAAP to Non-GAAP reconciliation. GAAP and non-GAAP
Slide 12: Earnings Per Share Trend (GAAP)
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202212 $0.32 $0.39 $0.45 $0.58 $0.75 $0.80 $0.56 $0.27 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 $1.06 Valuation Allowance Release $1.45 1 EARNINGS PER SHARE TREND (GAAP) 1. In Q4 2020, AMD released $1.3 billion of its $2.9 billion income tax valuation all
Slide 13: Earnings Per Share Trend (Non-GAAP)
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202213 $0.41 $0.52 $0.52 $0.63 $0.73 $0.92 $1.13 $1.05 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 +67% y/y EARNINGS PER SHARE TREND (Non-GAAP)* SIGNIFICANT Y/Y GROWTH IN NON-GAAP EPS *See Appendices for GAAP to Non-GAAP reconciliation
Slide 14: Q2 2022 Summary Balance Sheet Items
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202214 Q2 2022 SUMMARY BALANCE SHEET ITEMS STRONG & GROWING CASH POSITION Cash from operations $1.04 billion; free cash flow $906 million2 Repurchased $920 million of common stock ($ in millions) Q2’22 Q2’21 Y/Y Cash, Cash Equivalents and Short-term Investments
Slide 15: Q2 2022 Segment Results
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202215 Q2 2022 SEGMENT RESULTS ($ in millions) Q2’22 Q2’21 Y/Y Data Center Net Revenue $1,486 $813 Up 83% Operating Income $472 $204 Up 131% Client Net Revenue $2,152 $1,728 Up 25% Operating Income $676 $538 Up 26% Gaming Net Revenue $1,655 $1,255 Up 32% Operati
Slide 16: Data Center Segment Q2 2022
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202216 DATA CENTER SEGMENT Q2 2022 ▪ 60+ new EPYC processor-based cloud instances across Tier 1 customers ▪ Enterprise OEM adoption accelerated in Q2 ▪ Frontier supercomputer #1 spot on TOP500 and GREEN500 lists ▪ Microsoft Azure deploying AMD Instinct MI200 acc
Slide 17: Client Segment Q2 2022
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202217 CLIENT SEGMENT Q2 2022 ▪ Announced Ryzen 7000 Series desktop processors based on 5nm “Zen 4” architecture ▪ HP and Lenovo launched 50+ AMD Ryzen processor-based commercial notebooks ▪ Dell announced its 1st AMD processor- based Precision workstation Strat
Slide 18: Gaming Segment Q2 2022
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202218 GAMING SEGMENT Q2 2022 ▪ Announced new Radeon™ RX 6950 XT, RX 6750 XT, and RX 6650 XT graphics cards ▪ Launched AMD Advantage gaming notebooks; Alienware m17 named best gaming laptop by Laptop Magazine ▪ Continued strong demand for semi- custom game conso
Slide 19: Embedded Segment Q2 2022
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202219 EMBEDDED SEGMENT Q2 2022 ▪ Canon selected Versal™ AI Core series for Canon Free Viewpoint Video System transforming live sports broadcasts ▪ Introduced Versal Premium series with AI Engines for the aerospace, defense and test and measurement markets Strat
Slide 20: Financial Outlook – Non-GAAP
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202220 ($ in millions) Q3’22 FY 2022 Revenue ~$6.7 Billion +/- $200 Million Growth of ~55% y/y ~$26.3 Billion +/- $300 Million Growth of ~60% y/y Gross Margin % ~54% ~54% Operating Expenses Operating Expenses/Revenue % ~$1.64 Billion ~24.5% ~24% Interest Expense
Slide 21: Q2 2022 Summary
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 20222121 Gross Margin of 46% Non-GAAP GM of 54% Cash from Ops $1.04B Free Cash Flow $906M Repurchased $920M Common Stock Revenue $6.6B Up 70% Y/Y Q2 2022 SUMMARY 1 STRONG REVENUE DIVERSITY AND CASH GENERATION 1. See Appendices for GAAP to Non-GAAP reconciliation
Slide 22: AMD Commitment to ESG
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 2022222 AMD COMMITMENT TO ESG Governance Delivering industry leading products with integrity, innovation and quality in order to help solve global challenges Social Creating a culture that drives innovation by fostering diversity, inclusion and belonging Environ
Slide 23: Driving Compelling Shareholder Returns
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 20222323 DRIVING COMPELLING SHAREHOLDER RETURNS
Slide 24: Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202224 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN (Millions) (Unaudited) Q3'20 Q4'20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 GAAP gross profit $ 1,230 $ 1,451 $ 1,587 $ 1,830 $ 2,086 $ 2,426 $ 2,818 $ 3,028 GAAP gross margin % 44% 45% 46% 48% 4
Slide 25: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202225 APPENDICES RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME (Millions) (Unaudited) Q2’22 Q2’21 GAAP operating income $ 526 $ 831 GAAP operating margin % 8% 22% Stock-based compensation 259 83 Acquisition-related costs (1) 174 10 Amorti
Slide 26: Reconciliation of GAAP to Non-GAAP Net Income and EPS
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202226 (Millions, except per share data) (Unaudited) Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 GAAP net income / earnings per share $ 390 $ 0.32 $ 1,781 $ 1.45 $ 555 $ 0.45 $ 710 $ 0.58 $ 923 $ 0.75 $ 974 $ 0.80 $ 786 $ 0.56 $ 447 $ 0.27 Loss on debt redem
Slide 27: Total Debt (Net) and Operating Cash Flow to Free Cash Flow
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202227 (Millions) (Unaudited) Q2’22 Q2’21 7.50% Senior Notes due 2022 $ 312 $ 312 2.95% Senior Notes due 2024 750 – 2.125% Convertible Senior Notes due 2026 1 1 2.375% Senior Notes due 2030 750 – 3.924% Senior Notes due 2032 500 – 4.393% Senior Notes due 2052 50
Slide 28: Share Count Overview
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202228 Shares (millions) (1) Q1’22 Q2’22 Q3’22 2022 Actual Actual Estimate Estimate Basic shares 1,393 1,618 1,617 1,563 Dilutive impact from: Employee equity grants and warrant(2) 17 14 11 11 Diluted shares 1,410 1,632 1,628 1,574 APPENDICES SHARE COUNT OVERVIE
Slide 29: Historical Segment Results
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202229 ($ in millions) Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 2020 2021 Data Center Net Revenue $610 $813 $1,108 $1,163 $1,293 $1,486 $1,685 $3,694 Operating Income $110 $204 $308 $369 $427 $472 $198 $991 Client Net Revenue $1,638 $1,728 $1,692 $1,829 $2,124 $2,152
Slide 30: Disclaimers and Attributions
Q2 2022 FINANCIAL RESULTS – AUGUST 2, 202230 DISCLAIMERS AND ATTRIBUTIONS The information contained herein is for informational purposes only and is subject to change without notice. Timelines, roadmaps, and/or product release dates shown in these slides are plans only and subject to change. While e
Slide 31: AMD – Together We Advance
AMD«¢l together we advance_