Slide 1: Third Quarter 2021 Financial Results
THIRD QUARTER 2021 FINANCIAL RESULTS OCTOBER 26, 2021
Slide 2: Cautionary Statement
2 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 CAUTIONARYSTATEMENT 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; the Xilinx,
Slide 3: Our Journey
3 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 OUR JOURNEY Best-in-Class Financial Performance Expanding Customer & Partner Ecosystem Best Product Portfolio in History Significant Business Acceleration
Slide 4: Our Leadership Technology
4 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 Driving Leadership PC Experiences and Gaming Solutions PC/GAMING SOLUTIONS Leadership Process Technology and Innovative 3D Chiplet Packaging ADVANCED TECHNOLOGY Delivering Multi-generational Leadership CPU and GPU Roadmaps INDUSTRY-LEADING IP
Slide 5: Our Best Ever Product Portfolio
5 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 z PERFORMANCE LEADERSHIP IN PCS, DATA CENTER AND GAMING OUR BEST EVER PRODUCT PORTFOLIO See endnotes R5K-002 and CZM-35 Desktop and mobile processors provide world’s fastest gaming, leadership performance and advanced battery life Performance
Slide 6: Summary Q3 2021
6 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 1. See Appendices for GAAP to Non-GAAP reconciliation SUMMARY Q3 2021¹ $2.80 $4.31 Q3 2020 Q3 2021 +54% y/y Quarterly Revenue ($B) ▪ Record revenue $4.3 billion, up 54% y/y and 12% q/q ▪ Gross margin 48%, up over 400 bps y/y and up 80 bps q/q
Slide 7: Computing and Graphics Segment Q3 2021
7 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 COMPUTING AND GRAPHICS SEGMENT Q3 2021 ▪ Revenue $2.4 billion ‒ Up 44% y/y and 7% q/q driven by higher Ryzen™, Radeon™ and AMD Instinct™ processor sales ▪ Higher Average Selling Prices (ASP) ‒ Client processor ASP grew y/y and q/q driven by a
Slide 8: Enterprise, Embedded and Semi-Custom Segment Q3 2021
8 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 ENTERPRISE, EMBEDDED AND SEMI-CUSTOM SEGMENT Q3 2021 ▪ Revenue $1.9 billion ‒ Up 69% y/y and 20% q/q driven by higher EPYC processor and semi-custom product sales ▪ Higher Operating Income ‒ Operating income $542 million compared to $141 mill
Slide 9: Significant Revenue Trajectory
9 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 $2,127 $1,786 $1,932 $2,801 $3,244 $3,445 $3,850 $4,313 1000 1500 2000 2500 3000 3500 4000 4500 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 +54% y/y REVENUE TREND ($ IN MILLIONS) SIGNIFICANT REVENUE TRAJECTORY
Slide 10: Strong Gross Margin Expansion
10 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 45% 46% 44% 44% 45% 46% 48% 48% Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 +4 pp y/y GROSS MARGIN TREND (GAAP AND NON-GAAP)¹ 1. See Appendices for GAAP to Non-GAAP reconciliation STRONG GROSS MARGIN EXPANSION
Slide 11: Earnings Per Share Trend (GAAP)
11 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 EARNINGS PER SHARE TREND $0.15 $0.14 $0.13 $0.32 $0.39 $0.45 $0.58 $0.75 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Ax is T itl e +$0.43 y/y(GAAP) $1.451 1. In Q4 2020, AMD released $1.3 billion of its $2.9 billion income tax valuation
Slide 12: Earnings Per Share Trend (Non-GAAP)
12 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 $0.32 $0.18 $0.18 $0.41 $0.52 $0.52 $0.63 $0.73 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 +$0.32 y/y EARNINGS PER SHARE TREND (NON-GAAP)1 1. 1. See Appendices for GAAP to Non-GAAP reconciliation OUTSTANDING GROWTH IN PROFITABILITY
Slide 13: Q3 2021 Summary P&L – GAAP
13 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 ($ in millions, except per share data) Q3’21 Q3’20 Y/Y Q2’21 Q/Q Revenue $4,313 $2,801 Up 54% $3,850 Up 12% Gross Profit $2,086 $1,230 Up 70% $1,830 Up 14% Gross Margin % 48% 44% Up 450 bps 48% Up 80 bps Operating Expenses $1,141 $781 Up 46%
Slide 14: Q3 2021 Summary P&L – Non-GAAP
14 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 ($ in millions, except per share data) Q3’21 Q3’20 Y/Y Q2’21 Q/Q Revenue $4,313 $2,801 Up 54% $3,850 Up 12% Gross Profit $2,087 $1,231 Up 70% $1,832 Up 14% Gross Margin % 48% 44% Up 440 bps 48% Up 80 bps Operating Expenses $1,035 $706 Up 47%
Slide 15: Q3 2021 Segment Results
15 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 Q3 2021 SEGMENT RESULTS ($ in millions) Q3’21 Q3’20 Y/Y Q2’21 Q/Q Computing and Graphics Net Revenue $2,398 $1,667 Up 44% $2,250 Up 7% Operating Income $513 $384 Up 34% $526 Down 2% Enterprise, Embedded and Semi-Custom Net Revenue $1,915 $1,
Slide 16: Q3 2021 Summary Balance Sheet Items
16 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 Q3 2021 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q3’21 Q3’20 Y/Y Q2’21 Q/Q Cash, Cash Equivalents and Short-term Investments $3,608 $1,771 Up $1,837 $3,793 Down $185 Accounts Receivable, Net $2,224 $2,134 Up $90 $2,020 Up $204 Inventories
Slide 17: Outlook
17 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of October 26, 2021, and assumptions and beliefs that involve numerous risks and uncertainties. AMD u
Slide 18: Q3 2021 Summary
18 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 Q3 2021 SUMMARY Operating Income Doubled Y/Y Gross Margin Grew More Than 4 pp Y/Y Quarterly Revenue Up 54% Y/Y, 12% Q/Q Repurchased $750M of Common Stock
Slide 19: AMD's Commitment to ESG
19 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 AMD’SCOMMITMENT TO ESG Steadfast commitment to environmental stewardship and contributing to our local communities ENVIRONMENTAL Delivering industry leading products with integrity, innovation and quality in order to help solve global challe
Slide 20: Building the Best
20 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 BUILDING THE BEST Strong Shareholder Returns Execution Excellence Leadership Roadmaps Increasing Market Share
Slide 21: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
21 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Millions) Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1’21 Q2’21 Q3’21 GAAP gross profit $ 949 $ 818 $ 848 $ 1,230 $ 1,451 $ 1,587 $ 1,830 $ 2,086 GAAP gross margin % 45% 46% 44
Slide 22: Reconciliation of GAAP Operating Income to Non-GAAP
22 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 APPENDICES Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Millions) Q3’21 Q3’20 Q2’21 GAAP operating income $ 948 $ 449 $ 831 GAAP operating margin % 22% 16% 22% Stock-based compensation 99 76 83 Acquisition-related co
Slide 23: Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share
23 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 APPENDICES Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share (1) Q4’19, Q1’20 and Q2’20 GAAP diluted EPS calculation includes 31 million shares related to the assumed conversion of the Company's 2026 Convertible Notes and th
Slide 24: Share Count Overview
24 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 APPENDICES Share Count Overview Shares (millions) (1) Q1’21 Q2’21 Q3’21 Q4’21 2021 Actual Actual Actual Estimate Estimate Basic Shares 1,213 1,216 1,214 1,212 1,215 Dilutive impact from: Employee Equity Grants (2) 18 16 16 12 15 Diluted Shar
Slide 25: Total Debt (Net) and Free Cash Flow
25 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 APPENDICES Total Debt (Net) (Millions) Q3’21 Q3’20 Q2’21 7.50% Senior Notes due 2022 $ 312 $ 312 $ 312 2.125% Convertible Senior Notes due 2026 1 86 1 Borrowings from secured revolving line of credit – – – Total Debt (principal amount) $ 313
Slide 26: Endnotes
26 THIRD QUARTER 2021 FINANCIAL RESULTS | OCTOBER 26, 2021 ENDNOTES R5K-002: Testing by AMD Performance labs as of 5/28/2021 based on the average FPS of 20 PC games at 1920x1080 with the High image quality preset using an AMD Ryzen™ 9 5900X processor vs. Core i9-11900K. For Ryzen 5000 G-Series proce