Slide 1: 4th Quarter Earnings Presentation
4th Quarter Earnings Presentation Pat Gelsinger David Zinsner Chief Executive Officer Executive Vice President and Chief Financial Officer
Slide 2: Non-GAAP Financial Measures and Forward-Looking Statements
Non-GAAP Financial Measures and Forward-Looking Statements • This presentation contains non-GAAP financial measures. Intel gross margin, and earnings per share, including year-over-year comparisons, are presented on a non-GAAP basis. This presentation also includes a non-GAAP adjusted free cash flow
Slide 3: Executive Summary
Executive Summary Q4 beat on Revenue, Gross Margin and EPS Strong sequential revenue growth in client, server, network Continued operating leverage and expense discipline, achieved FY $3B cost savings Re-establishing technology leadership Closing in on 5N4Y: Intel 3 mfg ready; entering angstrom era
Slide 4: Driving Our Transformation
Driving Our Transformation Execution System Foundry AI Everywhere Cloud & Enterprise Intel Sapphire Emerald 7 Rapids Rapids Intel Meteor EUV Lake 4 Intel Sierra Granite Edge 3 Forest Rapids Intel Arrow At Scale, Geo Diverse, and Resilient PowerVia, + 20A RibbonFET Lake Transistor Leadership at Intel
Slide 5: Q4 Financial Highlights
Q4 Financial Highlights $15.4B 48.8% $0.54 Revenue Gross Margin EPS Up 10% YoY Up 5 ppt YoY Up 260% YoY $0.3B above Oct outlook1 2.3 ppt above Oct outlook1 $0.10 above Oct outlook1 1 Comparisons are based on the mid-point of revenue outlook 5
Slide 6: Client Computing Group (CCG)
Client Computing Group (CCG) Revenue up 33% Operating Income up 451% Revenue $8.8B • Healthier alignment of sell-in and sell- through $6.6B Operating Income • Increased revenue and sell through of reserved inventory Operating Margin 33% $2.9B Operating Margin 8% $0.5B Q4'22 Q4'23 Q4'22 Q4'23 6
Slide 7: Data Center and AI Group (DCAI)
Data Center and AI Group (DCAI) Revenue down 10% Operating Income down 38% Revenue • CPU TAM contraction, ongoing competitive pressure and PSG inventory correction $4.4B $4.0B Operating Income • Ramp of higher cost next gen products & lower revenue offset by reduced spending and sell through of rese
Slide 8: Network and Edge Group (NEX)
Network and Edge Group (NEX) Revenue down 24% Operating Income down 110% Revenue • Continued demand softness and elevated customer inventory $1.9B Operating Income $1.5B • Lower revenue offset by reduced spending Operating Operating Margin 7% Margin (1%) $0.1B ($0.0B) Q4'22 Q4'23 Q4'22 Q4'23 8
Slide 9: Intel Foundry Services (IFS) Mobileye
Intel Foundry Services (IFS) Mobileye Revenue Operating Income Revenue Operating Income Operating $291M Operating Margin 38% Margin 37% $242M $178M $637M $210M $565M Operating Operating Margin (19%) Margin (39%) ($34M) ($113M) Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 • Revenue up 63% on accel
Slide 10: Outlook
Outlook intel. 1°
Slide 11: Q1 2024 Outlook
Q1 2024 Outlook $12.2-13.2B 44.5% $0.13 Revenue Gross Margin1 EPS1 Up 8% YoY 1 Up 6.1 ppt YoY Up 425% YoY 1 Revenue growth comparison, gross margin outlook and EPS outlook based on the mid-point of the revenue range 11
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of Non-GAAP Actuals
Reconciliation of Non-GAAP Actuals Three Months Ended Dec 30, 2023 Dec 31, 2022 GAAP gross margin percentage 45.7% 39.2% Acquisition-related adjustments 1.9% 2.3% Share-based compensation 1.1% 1.1% Optane inventory impairment --% 1.2% Non-GAAP gross margin percentage 48.8% 43.8% GAAP earnings (loss)
Slide 14: Reconciliation of Non-GAAP Q1 Outlook
Reconciliation of Non-GAAP Q1 Outlook Q1 2024 Outlook1 Q1 2023 Actuals Approximately GAAP gross margin percentage 40.7% 34.2% Acquisition-related adjustments 1.8% 2.8% Share-based compensation 2.0% 1.4% Non-GAAP gross margin percentage 44.5% 38.4% GAAP earnings (loss) per share attributable to Intel
Slide 15: intel.
intel.