Intel Corporation · NASDAQ:INTC
Intel — Investor Day (May 2019)
35 slides from Intel's investor day presentation, May 9, 2019
Slide 1: Chief Executive Officer
Exhibit 99.1 CHIEF EXECUTIVE OFFICERExhibit 99.1 CHIEF EXECUTIVE OFFICER
Slide 2: Non-GAAP and forward-looking statements notice
This presentation contains non-GAAP financial measures. You can find the reconciliation of these measures to the most directly comparable GAAP financial measure in the Appendix at the end of this presentation. The non-GAAP financial measures disclosed by Intel should not be considered a substitute f
Slide 3: Accelerating transformation to a data-centric company
We’ve expanded our TAM… ACCELERATING TRANSFORMATION TO A DATA-CENTRIC COMPANY Extend product leadership advantage… FROM CPU TO XPU Improve execution… accelerate innovation… evolve culture Disciplined investment... Profitable growth... Attractive capital returnsWe’ve expanded our TAM… ACCELERATING TR
Slide 4: We exceeded Q1 expectations but lowered outlook
We exceeded Q1 expectations… but lowered outlook 1 1 Revenue Operating Margin EPS Down Down Down $2.5B 2pts $0.25 1 Non-GAAP. Refer to the Appendix for a reconciliation of these non-GAAP measures.We exceeded Q1 expectations… but lowered outlook 1 1 Revenue Operating Margin EPS Down Down Down $2.5B 2
Slide 5: Top Priorities for 2017
Top Priorities for 2017 Growth in Data strong & healthy Client growth flawlessly execute in Center & Adjacencies business in IoT & devices Memory & FPGAS 29Top Priorities for 2017 Growth in Data strong & healthy Client growth flawlessly execute in Center & Adjacencies business in IoT & devices Memor
Slide 6: Three-year transformation results versus guidance
Data-centric Increased revenue by $9B since ‘16 PC-Centric Record profitability in declining market Significant FCF Vs 3-yr guide Beat revenue by $6.7B and EPS by $1.27 Over the 3 years… added ~$12B in revenue… on lower spending… with ~64% increase in EPS 1 Data-centric businesses include DCG, IOTG,
Slide 7: Transformations... but it won't be easy
transformations …but it won’t be easytransformations …but it won’t be easy
Slide 8: Strategic priorities
Make the world’s best semiconductors Lead the AI, 5g, and Autonomous revolution Be the leading end to end platform provider for the new data world Relentless focus on operational excellence & efficiency Continue to hire, develop and retain the best, most diverse & inclusive talentMake the world’s be
Slide 9: Middle of a Journey: 2013 to 2021 and beyond
2021 & beyond Middle of a Journey Intel Powers the World 2017-2021 Data-Centric 2013 A PC-Centric Company2021 & beyond Middle of a Journey Intel Powers the World 2017-2021 Data-Centric 2013 A PC-Centric Company
Slide 10: Data-centric businesses and PC-centric business
Data-Centric Businesses PC-centric Business Growth Cash Flow/ ScaleData-Centric Businesses PC-centric Business Growth Cash Flow/ Scale
Slide 11: Data is growing exponentially
Data is growing exponentially Global Digital Data Created Data Centers Edge/Endpoints Real-time Source: IDC Data Age 2025 (2018) Data Created (ZB)Data is growing exponentially Global Digital Data Created Data Centers Edge/Endpoints Real-time Source: IDC Data Age 2025 (2018) Data Created (ZB)
Slide 12: Process everything, store more, move faster
process everything store more Move faster Sources: Global Internet Traffic, Cisco VNI Forecasts (2016, 2017, 2018); Stored Data, IDC Data Age 2025 (2018); Compute demand, Intel analysisprocess everything store more Move faster Sources: Global Internet Traffic, Cisco VNI Forecasts (2016, 2017, 2018);
Slide 13: 2018 revenue and silicon TAM
Source: 2018 Intel Revenue is based on Intel financials. 2018 Si TAM is based on amalgamation of analyst data and Intel analysis. PC and Server include CPU and Chipsets revenue. Source: 2018 Intel Revenue is based on Intel financials. 2018 Si TAM is based on amalgamation of analyst data and Intel an
Slide 14: 2023F TAM
2023F TAM is based on an amalgamation of analyst data and Intel analysis, based upon current expectations and available information and is subject to change without notice. PC-Centric includes CPU & Chipsets, Connectivity (including modems other than 5G smartphone), Gateways, Gaming Consoles, Memory
Slide 15: Strategic approach: product leadership and big bets
• Lead technology inflections • Extend product leadership… redefine Intel Inside • Make big bets… with attractive returns • Focus on execution • Evolve our culture • Lead CSR and D&I• Lead technology inflections • Extend product leadership… redefine Intel Inside • Make big bets… with attractive retu
Slide 16: AI, 5G and autonomous systems
Artificial intelligence 5G Autonomous systems Autonomous systems AI unlocks value from 5G transforms the require real-time data, enables new network, increases analysis of data flows, business models and consumption of data- drive new compute, experiences rich experiences network architecturesArtifi
Slide 17: Workload-optimized platforms, effortless customer and developer innovation
WORKLOAD-OPTIMIZED PLATFORMS, EFFORTLESS CUSTOMER & DEVELOPER INNOVATIONWORKLOAD-OPTIMIZED PLATFORMS, EFFORTLESS CUSTOMER & DEVELOPER INNOVATION
Slide 18: Intel Inside: from CPU to XPU platforms
Intel Inside = Intel Inside = CPU inside a PC and server XPU platforms inside everything Security Wi-Fi CPU XPU siph Software Nand SSD Modem ethernet Optane™ MemoryIntel Inside = Intel Inside = CPU inside a PC and server XPU platforms inside everything Security Wi-Fi CPU XPU siph Software Nand SSD M
Slide 19: Process technology: extend 14nm, ramp 10nm, accelerate to 7nm
extend 14nm ramp 10nm Accelerate to 7nm Client Systems on Build Capacity Shelf for 2019 Production and to Support Holiday Season Launch in 2021 Customer Growth Server in 1H’20 vs. tsmc 10nm vs. tsmc 7nm vs. tsmc 5nm world class packaging technology complements process leadershipextend 14nm ramp 10nm
Slide 20: Investment criteria
our investments must… …Address the leading edge of a technology inflection… …Allow us to play a larger role in the success of our customers… …Offer a clear path to profitability/attractive returns… …with regular evaluationour investments must… …Address the leading edge of a technology inflection… …A
Slide 21: 5G modem: inflections, customer, impact, profit and return
Influencing and shaping 5G standards Inflections World class 5G modem IP ready for 2020 industry ramp Customer Built momentum and won share at 4G/LTE High customer concentration Impact Unprofitable despite share and scale Profit Evaluating options to maintain modem capabilities for PC/IOT Significan
Slide 22: Memory and storage: inflections, customer, impact, return
Memory storage High-density 3D NAND for Optane™ offers ~performance of storage transition to NVM Inflections DRAM, persistence of NAND Industry leading density #2 DC SSD provider 3+ years Customer Optane™ + Xeon® = breakthrough Challenging tech transitions platform-level innovation impacted executio
Slide 23: Mobileye autonomous driving: inflections, customer, impact, return
1 ADAS penetration rising globally, growing from 30% to 70% by ‘23 L4/5 AV designs on track for 2021, enabling a MaaS opportunity Inflections Data services such as REM present new adjacent opportunities >60% global ADAS market segment share Customer L2+ designs w OEMs representing >50% of global veh
Slide 24: Recoup process leadership, meet customer demand
Recoup Process Leadership deliver with predictability Meet Customer Demand Leadership products 10nm products Ensure Supply on schedule on shelves Investing to ensure we don’t On track to full-year 10nm Ice Lake and Lakefield for client constrain growth shipment goals Cascade Lake, AgileX™, Teton Gla
Slide 25: Relentless focus on things that matter most
Relentless focus on things that matter mostRelentless focus on things that matter most
Slide 26: From 50 incredible years to an incredible opportunity
From To Build the best products… customers will come Listen to customers & enable their growth Nearly $300B TAM… Low MSS... growth mode $52B TAM… MSS >90%… protect & defend Very capable competition has high MSS Competition has <10% MSS… compete internally Product leadership trumps all IDM advantage/
Slide 27: 2727
2727
Slide 28: Recognized leader in corporate responsibility
We are a recognized leader in corporate responsibility and take action to advance progress in environmental sustainability, supply chain responsibility, and social impact. #1 Scores 4B KWH ENERGY SAVED >20 years For our environmental & since 2012, resulting in Of TRANSPARENCY & PROACTIVE social disc
Slide 29: Innovative and inclusive talent
INNOVATIVE & INCLUSIVE TALENT Innovative supply chain Comprehensive workforce pay $1B annually 2 years Early Equity for global gender pay global initiative to spend with met our 2020 U.S. worKforce CLOSED THE GAP OF Average PAY BETWEEN Diverse-owned businesses by 2020 to diversity goal EMPLOYEES OF
Slide 30: Financial outlook: revenue, operating efficiency, earnings and FCF
Revenue growth Operating efficiency Earnings/FCF Low-single digit growth, $76B-$78B Operating Margin ~32% EPS growth in line with revenue Data-Centric businesses Gross Margins declines high-single digit growth offset by spending FCF growing faster leverage and 5G than earnings PC-Centric business sm
Slide 31: EPS outlook
EPS presented on a non-GAAP basis. Refer to the Appendix for a reconciliation of this non-GAAP measure Forecasts are Intel estimates, based upon current expectations and available information and are subject to change without noticeEPS presented on a non-GAAP basis. Refer to the Appendix for a recon
Slide 32: Speakers and topics
Speaker Topic Murthy Renduchintala Product Leadership Walk-on: Raja Koduri Navin Shenoy The Data-Centric Opportunity Walk-On: Sandra Rivera Gregory Bryant The Transformation of the PC Sector George Davis A Focus on PerformanceSpeaker Topic Murthy Renduchintala Product Leadership Walk-on: Raja Koduri
Slide 33: Intel logo
Slide 34: Appendix
Slide 35: Full-year 2019 outlook non-GAAP reconciliation
Full-year 2019 2018 Outlook Approximately GAAP OPERATING MARGIN 33% 30% Amortization of acquisition-related intangible assets 2% 2% NON-GAAP OPERATING MARGIN 35% 32% GAAP EARNINGS PER SHARE $4.48 $4.14 Inventory valuation adjustments — — Amortization of acquisition-related intangible assets 0.28 0.2