Slide 1: Investor Meeting 2011
INVESTOR MEETING 2011 Santa Clara, California May 17, 2011 Exhibit 99.1
Slide 2: Financial Update
INVESTOR MEETING 2011 Financial Update Stacy Smith Senior Vice President Chief Financial Officer
Slide 3: Key Messages
INVESTOR MEETING 2011 3 Key Messages • Design capability and manufacturing advantage enabling leadership products, resulting in record financial results • Significant and growing businesses across the compute continuum • Benefitting from the explosion of devices computing and connecting to the inter
Slide 4: Financial Performance
INVESTOR MEETING 2011 4 Financial Performance Segments of our Business Return of Cash to Shareholders
Slide 5: We are growing
INVESTOR MEETING 2011 5 We are growing 2008-2011: 35% CAGR Source: Intel and ThomsonOne *2009 earnings per share excludes EC fine and AMD settlement of $2.6B. See Non-GAAP recon in Appendix A ** Not an Intel forecast :2011 Consensus EPS of $2.28 and Revenue of $53.2B from ThomsonOne as of 5/11/11 20
Slide 6: Revenue vs. Benchmarks
INVESTOR MEETING 2011 6 Revenue vs. Benchmarks 2000-2011* Source: Intel , FactSet and ThomsonOne * Not an Intel forecast :Consensus 2011 revenue forecast of $53.2B from ThomsonOne as of 5/11/11 **Benchmark for the Dow 30 and S&P 100 measured on median revenue CAGRs pulled from FactSet as of 5/11/11
Slide 7: Intel Gross Margin Model
INVESTOR MEETING 2011 7 Intel Gross Margin Model Forecast 63% in 2011 represents the midpoint of the 2011 full year outlook range Forecast range is based on current expectations and is subject to change without notice Source: Intel 55%-65% Gross Margin Range
Slide 8: Spending % of Revenue
INVESTOR MEETING 2011 8 Spending* % of Revenue * MG&A + R&D spending. 2000 through 2005 adjusted to include stock based compensation expense. See Non-GAAP recon in Appendix B. ** Not an Intel forecast. Consensus Revenue of $53.2B from 5/11/11 and $15.7B for R&D + MG&A (the midpoint of Intel Outlook)
Slide 9: EPS vs. Benchmarks
INVESTOR MEETING 2011 9 EPS vs. Benchmarks 2000-2011* Source: Intel , FactSet and ThomsonOne * Not an Intel forecast :Consensus 2011 Earnings per share forecast of $2.28 from ThomsonOne as of 5/11/11 **Benchmark for the Dow 30 and S&P 100 measured on median CAGRs pulled from FactSet as of 5/11/11
Slide 10: ROIC Progress Report
INVESTOR MEETING 2011 10 ROIC Progress Report ROIC includes cash and goodwill. 2000-2005 excludes stock-based compensation. See Appendix B for Intel ROIC reconciliation to GAAP. * 2011 Annualized figure of ROIC is Q1 2011 ROIC multiplied by four S&P 500 contains 497 companies; Excludes: Allegheny En
Slide 11: Segments of our Business
INVESTOR MEETING 2011 11 Segments of our Business Financial Performance Return of Cash to Shareholders
Slide 12: Strong Businesses Across the Continuum
INVESTOR MEETING 2011 12 Data Center Group Strong Businesses Across the Continuum PC Client Group Intel Arch. Other 2010 Rev/OM $8.7B/$4.4B 2010 Rev/OM $3.1B/$0.3B 2010 Rev/OM $30.3B/$13.0B Software and Services Group 2011* Rev/OM $1.9B/($0.1B) *Forecast is based on current expectations and is subje
Slide 13: Strong Businesses Across the Continuum
INVESTOR MEETING 2011 13 Strong Businesses Across the Continuum 2010 Rev/OM $3.1B/$0.3B 2010 Rev/OM $30.3B/$13.0B Software and Services Group 2011* Rev/OM $1.9B/($0.1B) *Forecast is based on current expectations and is subject to change without notice Source: Intel Data Center Group PC Client Group
Slide 14: Data Center Group 2008 vs. 2010
INVESTOR MEETING 2011 14 Data Center Group 2008 vs. 2010 32% 50% Source: Intel 2008-2010: 43% CAGR 2008-2010: Billion Billion
Slide 15: Data Center Group Processor Growth Forecast
INVESTOR MEETING 2011 15 Mission Critical Infrastructure Small Scale Workstation Cloud Network Storage 2015 1995 2000 2005 Traditional Server Forecast is based on current expectations and is subject to change without notice Source: Intel Data Center Group Processor Growth Forecast* 2010
Slide 16: Data Center Group Looking Forward
INVESTOR MEETING 2011 16 Data Center Group Looking Forward Benefitting from four trends 1. Build-out of the cloud 2. Expanding into networking and communications infrastructure, and storage 3. Voracious demand for high-performance computing 4. Technology leadership = high ROI for enterprise upgrades
Slide 17: Strong Businesses Across the Continuum
INVESTOR MEETING 2011 17 Strong Businesses Across the Continuum PC Client Group Intel Arch. Other 2010 Rev/OM $3.1B/$0.3B 2010 Rev/OM $30.3B/$13.0B Software and Services Group 2011* Rev/OM $1.9B/($0.1B) *Forecast is based on current expectations and is subject to change without notice Source: Intel
Slide 18: Other Intel Architecture Group 2008 vs. 2010
INVESTOR MEETING 2011 18 Other Intel Architecture Group 2008 vs. 2010 2008-2010: 16% CAGR Million Billion Source: Intel
Slide 19: Embedded iA Business Momentum and Market Opportunity
INVESTOR MEETING 2011 19 Embedded iA Business Momentum and Market Opportunity 11% 8% 8% 19% 13% 8% 52% CAGRs Source: IDC and Intel Forecast Forecast Billion 2010-2013: 11% CAGR
Slide 20: Other Intel Architecture Group Looking Forward
INVESTOR MEETING 2011 20 Other Intel Architecture Group Looking Forward Embedded Intel architecture • 2010 Revenue of $1.5B and operating profit of ~$450M • Expect revenues to grow at a 25% CAGR through 2013 and operating margin to be greater than $1B in 2013 Making significant investments in SOC, t
Slide 21: Strong Businesses Across the Continuum
INVESTOR MEETING 2011 21 Strong Businesses Across the Continuum PC Client Group Intel Arch. Other 2010 Rev/OM $3.1B/$0.3B 2010 Rev/OM $30.3B/$13.0B Software and Services Group 2011* Rev/OM $1.9B/($0.1B) *Forecast is based on current expectations and is subject to change without notice Source: Intel
Slide 22: PC Client Group 2008 vs. 2010
INVESTOR MEETING 2011 22 PC Client Group 2008 vs. 2010 43% 2008-2010: 17% CAGR Billion Billion Source: Intel
Slide 23: Segmentation Drives ASP Benefit
INVESTOR MEETING 2011 23 Segmentation Drives ASP Benefit Source: Intel *Platform includes both CPU and chipset Up 6pts Core Mix % ’09 to ’10 $
Slide 24: Cost Declining Across Segments
INVESTOR MEETING 2011 24 Cost Declining Across Segments Platform Costs* Performance Mainstream Value Atom™ *Platform includes both CPU and Chipset components Forecast is based on current expectations and is subject to change without notice Source: Intel Forecast Forecast Forecast Forecast
Slide 25: Market Drivers Looking Forward
INVESTOR MEETING 2011 25 Market Drivers Looking Forward ~2 of every 3 PCs will be sold to emerging markets ~2 of every 3 PCs will be sold into the consumer segment ~2 of every 3 PCs sold will be notebooks Forward looking statements specified are preliminary based on current expectations, and are sub
Slide 26: Emerging Market Affordability
INVESTOR MEETING 2011 26 Blue shading notes SPP < 8 weeks of income Income measured as mean income Emerging Market Affordability Falling Prices, Rising Incomes Sources: WOI to buy NB PC - Intel Population by GEO - Economist Intelligence Unit (EIU) Blue shading notes SPP < 8 weeks of income Income me
Slide 27: Penetration Accelerates at 4-8 WOI to Buy a PC
INVESTOR MEETING 2011 27 Penetration Accelerates at 4-8 WOI to Buy a PC Weeks of Income to Purchase a Notebook Sources: WOI to buy NB PC - Intel Installed PCs - IDC PC Tracker Population by GEO - Economist Intelligence Unit (EIU)
Slide 28: Penetration Accelerates at 4-8 WOI to Buy a PC
INVESTOR MEETING 2011 28 Penetration Accelerates at 4-8 WOI to Buy a PC Weeks of Income to Purchase a Notebook Sources: WOI to buy NB PC - Intel Installed PCs - IDC PC Tracker Population by GEO - Economist Intelligence Unit (EIU)
Slide 29: Penetration Accelerates at 4-8 WOI to Buy a PC
INVESTOR MEETING 2011 29 Penetration Accelerates at 4-8 WOI to Buy a PC Weeks of Income to Purchase a Notebook Sources: WOI to buy NB PC - Intel Installed PCs - IDC PC Tracker Population by GEO - Economist Intelligence Unit (EIU)
Slide 30: Penetration Accelerates at 4-8 WOI to Buy a PC
INVESTOR MEETING 2011 30 Penetration Accelerates at 4-8 WOI to Buy a PC Weeks of Income to Purchase a Notebook Sources: WOI to buy NB PC - Intel Installed PCs - IDC PC Tracker Population by GEO - Economist Intelligence Unit (EIU)
Slide 31: Penetration Accelerates at 4-8 WOI to Buy a PC
INVESTOR MEETING 2011 31 Penetration Accelerates at 4-8 WOI to Buy a PC Weeks of Income to Purchase a Notebook Emerging Markets 2010 Sources: WOI to buy NB PC - Intel Installed PCs - IDC PC Tracker Population by GEO - Economist Intelligence Unit (EIU)
Slide 32: Penetration Accelerates at 4-8 WOI to Buy a PC
INVESTOR MEETING 2011 32 Penetration Accelerates at 4-8 WOI to Buy a PC Weeks of Income to Purchase a Notebook Emerging Markets 2015 Sources: WOI to buy NB PC - Intel Installed PCs - IDC PC Tracker Population by GEO - Economist Intelligence Unit (EIU) META India Brazil China E. Europe
Slide 33: Rapid increase in PC penetration rates
INVESTOR MEETING 2011 33 You will see a rapid increase in PC penetration rates in China, Latin America and Eastern Europe. Sources: Population - Economist Intelligence Unit (EIU) Forward looking statements specified are preliminary based on current expectations, and are subject to change without not
Slide 34: Rapid increase in PC penetration rates
INVESTOR MEETING 2011 34 You will see a rapid increase in PC penetration rates in China, Latin America and Eastern Europe. Population: 2.5 billion people. Sources: Population - Economist Intelligence Unit (EIU) Forward looking statements specified are preliminary based on current expectations, and a
Slide 35: PC TAM Growth
INVESTOR MEETING 2011 35 PC TAM Growth Over the last decade the PC TAM in emerging markets grew at a 17% CAGR, and mature markets grew at a 5% CAGR Those growth rates equate to ~11% TAM CAGR from 2010 to 2013 Acceleration of the emerging market CAGR by 5 points drives PC TAM CAGR of 14% from 2010 to
Slide 36: Won't they all buy tablets?
INVESTOR MEETING 2011 36 Hold on there, Tex! Won’t they all buy tablets?
Slide 37: Bear Case
INVESTOR MEETING 2011 37 Bear Case 100 million tablets in 2013 @ 33% cannibalization TAM CAGR = 11% with cannibalization Source: Intel Caveat: We don’t believe this case
Slide 38: PC Client Group Looking Forward
INVESTOR MEETING 2011 38 PC Client Group Looking Forward Emerging Markets, Consumers, Notebooks will drive solid revenue growth for several years Technology leadership, cost improvements, and segmentation expected to maintain the operating margin % through 2012 Forward looking statements specified a
Slide 39: Intel Gross Margin Model
INVESTOR MEETING 2011 39 Intel Gross Margin Model Forecast 63% in 2011 represents the midpoint of the 2011 full year outlook range Forecast range is based on current expectations and is subject to change without notice Source: Intel 55%-65% Gross Margin Range
Slide 40: Strong Businesses Across the Continuum
INVESTOR MEETING 2011 40 Strong Businesses Across the Continuum PC Client Group Intel Arch. Other 2010 Rev/OM $3.1B/$0.3B 2010 Rev/OM $30.3B/$13.0B Software and Services Group 2011* Rev/OM $1.9B/($0.1B) *Forecast is based on current expectations and is subject to change without notice Source: Intel
Slide 41: Software and Services Group outlook
INVESTOR MEETING 2011 41 • Rapidly growing software capabilities • $300M of revenue in 2010 expected to grow to over $3B in 2013 – McAfee slightly accretive on a non-GAAP basis in 2011, on a GAAP basis in 2012 • Operating margin improves from ~($200M) in 2010 to ~$700M in 2013 • Upside opportunity a
Slide 42: NAND Solutions Group
INVESTOR MEETING 2011 42 NAND Solutions Group* Cost/GB Q4 07 Q4 08 Q4 09 Q4 10 $0 Sources: Operating Profit $ and Compute % - Intel Cost/GB - iSuppli - Flash Q1 2011 Market Tracker Forecast is based on current expectations and is subject to change without notice *NAND solutions group is the same as
Slide 43: Return of Cash to Shareholders
INVESTOR MEETING 2011 43 Return of Cash to Shareholders Financial Performance Segments of our Business
Slide 44: Strong Cash Generation
INVESTOR MEETING 2011 44 Strong Cash Generation Cash from Operations $Billion Sources: 2001-2010 Cash from Operation - Intel *Not an Intel forecast - Consensus cash flow from ThomsonOne as of 5/11/11
Slide 45: Strong Cash Generation
INVESTOR MEETING 2011 45 Strong Cash Generation $Billion Sources: 2001-2010 Cash from Operation - Intel *Not an Intel forecast - Consensus cash flow from ThomsonOne as of 5/11/11
Slide 46: Uses of Cash
INVESTOR MEETING 2011 46 Uses of Cash Capital Spending, Acquisitions, Dividends, and Share Repurchases Source: Intel *2010 includes the $8.1B of acquisitions for McAfee and Infineon announced in 2010 but closed in Q1 2011 Capital Allocation Philosophy: • Invest in our business • Generate returns for
Slide 47: Steadily Increasing Dividend
INVESTOR MEETING 2011 47 Steadily Increasing Dividend • 16% increase announced last week brings dividend up to $.84 annualized • Target allocation for the dividend is ~40% of free cash flow • Plan to increase dividend roughly in line with EPS growth rate • Dividend Yield = 3.3%*^ *2011 Annualized fi
Slide 48: Share Repurchases
INVESTOR MEETING 2011 48 Share Repurchases We have bought back $5.5B from Q4’10 through Q1’11 Have reduced shares outstanding by 1.4B* shares since 2000, including ~250M shares since November of ‘10 *Repurchased under the common stock repurchase program, net of shares issued through employee equity
Slide 49: Strong cash generation
INVESTOR MEETING 2011 49 Strong cash generation Dividend $ now targeting ~40% of FCF $5.5 B share repurchases from Q4’10 to Q1’11 Source: Intel
Slide 50: Preview of the Rest of the Day
INVESTOR MEETING 2011 50 Preview of the Rest of the Day • Explosion of devices that compute and connect to the internet driving data center growth • Another historic change to the PC roadmap • Low power and SOC capability • Software is a competitive advantage • Combination of software and hardware c
Slide 51: Slide 51
Slide 52: Risk Factors
INVESTOR MEETING 2011 52 Risk Factors The above statements and any others in this document that refer to plans and expectations for the second quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “in
Slide 53: Appendix A: AMD Settlement/EC Fine
INVESTOR MEETING 2011 53 INTEL CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS Appendix A: AMD Settlement/EC Fine • In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this presentation contains non-G
Slide 54: Appendix A: AMD Settlement/EC Fine (Continued)
INVESTOR MEETING 2011 54 INTEL CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS Appendix A: AMD Settlement/EC Fine (Continued) Source: Intel
Slide 55: Appendix B: Share-Based Compensation
INVESTOR MEETING 2011 55 INTEL CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS Appendix B: Share-Based Compensation • In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this presentation contains non
Slide 56: Appendix B: Share-Based Compensation (Continued)
INVESTOR MEETING 2011 56 INTEL CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS Appendix B: Share-Based Compensation (Continued) Source: Intel
Slide 57: Appendix C: Historic ROIC
INVESTOR MEETING 2011 57 INTEL CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS Appendix C: Historic ROIC • We define Return on Invested Capital (ROIC) as adjusted net operating profit after taxes divided by beginning invested capital. Management believes that ROIC provides greater visibility
Slide 58: Appendix C: Historic ROIC (Continued)
INVESTOR MEETING 2011 58 INTEL CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS Appendix C: Historic ROIC (Continued) ($m) 2001 2002 2003 2004 2005 Net income (GAAP) $ 1,291 $ 3,117 $ 5,641 $ 7,516 $ 8,664 Interest expense 56 84 62 50 19 Income tax adjustment (1) (23) (22) (15) (14) (6) Adjus
Slide 59: Appendix C: Historic ROIC (Continued)
INVESTOR MEETING 2011 59 INTEL CORPORATION RECONCILIATIONS OF GAAP TO NON-GAAP RESULTS Appendix C: Historic ROIC (Continued) ($m) 2006 2007 2008 2009 2010 Net income (GAAP) $ 5,044 $ 6,976 $ 5,292 $ 4,369 $ 11,464 Interest expense 24 15 8 1 0 Income tax adjustment (1) (7) (4) (2) (0) 0 Adjusted net