Nvidia Corporation · NASDAQ:NVDA
Nvidia — Investor Day (April 2021)
41 slides from Nvidia's investor day presentation, Apr 12, 2021
Slide 1: GTC Spring 2021 Investor Day
© NVIDIA. GTC SPRING 2021 INVESTOR DAY
Slide 2: Forward Looking Statements
Forward Looking Statements Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: the forces, dynamics and changes in computing; waves of Alandits impacts; our strategies, growth, position, opportunities, and cont
Slide 3: Agenda
AGENDA 10am PT 11am PT 12pm PT Presentations Q&A End an J q/ ie ¢ B\ Ges HERE WITH YOU TODAY Jensen Huang Founder & CEO Colette Kress EVP & CFO Jeff Fisher SVP Gaming
Slide 4: Jensen Huang, Founder & CEO, NVIDIA
Jensen Huang | Founder & CEO, NVIDIA
Slide 5: For the Da Vincis of Our Time
FOR THE DA VINCIS OF OUR TIME SCIENTISTS AT GTC TALKS AT GTC LEADERS AT GTC - WN Adobe CJAlibabacioue arm GOD aws o @ 4 DA cattter mc? GB GB encsson 2 Yoshua Bengio Yann LeCun Geoffrey Hinton Daphne Koller = “BuebecAInsttute NewYork University oat erie | = a ae 1 | FACEBOOK SPEECH S QUANTUM NLU SELF
Slide 6: New NVIDIA Technologies
NEW NVIDIA TECHNOLOGIES
Slide 7: Forces Shaping Industries
FORCES SHAPING INDUSTRIES Accelerated Computing Al is Software that Data Center is the Al-on-5G Kickstarts the Autonomous Systems in is the Path Forward Writes Software New Unit of Computing 4th Industrial Revolution Real and Virtual Worlds | == ———| s=— e= | f= Si — o= || o=aall|o= Ss | =| fe=—] fe
Slide 8: Data Center-Scale Computing
DATA CENTER-SCALE COMPUTING 3-Chip Rhythm NVIDIA GRACE CPU NVIDIA DATA CENTER ROADMAP PU Ed BlueFiela-2 4 Ampere NextNext e 2020 2021 2022 2023 2024 2025
Slide 9: NVIDIA + Arm
@ANVIDIA. + arm Creates premier computing company for the age of Al — combining NVIDIA's leading Al computing platform with Arm's CPU and licensing expertise Expands Arms IP licensing portfolio with NVIDIA’s technology into large end markets — including Mobile and PCs Turbocharges Arm's server CPU r
Slide 10: Waves of AI
WAVES OF Al Al Computing Cloud 5G Industrial Edge Robotics <P
Slide 11: Announcing NVIDIA AI Enterprise Platform
ANNOUNCING NVIDIA Al ENTERPRISE PLATFORM AI nvipia. CERTIFIED/ F i (Bs
Slide 12: NVIDIA DRIVE Software-Defined Platform
NVIDIA DRIVE SOFTWARE-DEFINED PLATFORM For Autonomous Driving NVIDIA END-TO-END AV PLATFORM DATACOLLECTING, TESTING MAPPING, TRAINING SIMULATION, AV DRIVING ‘AV WORLD MODEL TOPS 1000 NVIDIA DRIVE AGX SOC ROADMAP Atlan Z © mnie Orin a Parker Xavier nuvi =a re eer © ne 2018 2020 2022 2024 1T0Ps 30 T0P
Slide 13: NVIDIA DRIVE Software-Defined Car Platform
NVIDIA DRIVE SOFTWARE-DEFINED CAR PLATFORM Announcing Hyperion 8 Reference Car Computing System
Slide 14: A New Technology Industry
A NEW TECHNOLOGY INDUSTRY TECHNOLOGY COMPANIES BIG BRANDS MILES A YEAR OF ATOMS ra ANEW BREED OF THE WORLD'S 10 TRILLION THE INTERNET
Slide 15: Three-Layer Model of Customer Engagement
THREE- LAYER MODEL OF CUSTOMER ENGAGEMENT at 3 4 : GEFORCE OMNIVERSE cuQUANTUM. MORPHEUS. JARVIS MERLIN MAXINE METROPOLIS AERIAL. ISAAC DRIVE APPLICATION FRAMEWORKS PLATFORM SOFTWARE CHIPS & SYSTEMS
Slide 16: GTC Spring 2021
GTC SPRING 2021 NVIDIA DRIVE Software-defined platform from AV to Al Cockpit Extending design pipeline with Volvo, Cruise, SAIC | Atlan SoC 1,000 TOPS in 2025 NVIDIA PRE-TRAINED MODELS Production-quality Al models on NVIDIA GPU Cloud (NGC) registry NVIDIA TAO to adapt | NVIDIA Fleet Command to orche
Slide 17: Jeff Fisher, SVP Gaming, NVIDIA
Jeff Fisher | SVP Gaming, NVIDIA
Slide 18: Gaming — Transforming Global Entertainment
GAMING — TRANSFORMING GLOBAL ENTERTAINMENT DISCORD 2.5X Active Users 140M 56M 1 TW/Cable Gaming/eSports H 2018 2020 E-SPORTS +75M Global Audience ! Music/Radio/ 436M Podcasts 361M oo Cinema i) 2015-2020 Growth 2018 2020 YOUTUBE 2X Gaming Hours Watched 100M 50M re coedee STEAM 1.5X ConcurrentUsers 25
Slide 19: Gaming — A Record Year
GAMING — A RECORD YEAR New SM 2ND GENERATION RTX AReset of Computer Graphics 2Gen RT Core 34Gen Tensor Core $78 $68 $58 $4B $3B $2B $1B $B STRONG GAMING GPU GROWTH AAA, eSports, Creators, Streamers $6.9B 21% CAGR 5Yr CAGR ASP. 11% Units 10% Revenue 21%
Slide 20: RTX — Resets the Installed Base
RTX — RESETS THE INSTALLED BASE RTX — THE NEW STANDARD RTX REAL-TIME RAY-TRACING GEFORCE GAMING INSTALLED BASE #1 - Battle Royale, RPG, MMO, Best Selling Game Power of RT Core and Tensor Core DLSS 85% Needs Upgrade RTX 90 ON ld @ Fraditionat GEFORCE FPS GAMING PCs 30 RT ON GTX RTX Note: RTX 3060 vs.
Slide 21: Ampere — Best Launch Ever
AMPERE — BEST LAUNCH EVER End Market Sales 2X — FASTEST RAMPING ARCH 2X SHARE ON STEAM GAMERS BUYING UP $245 $300 $360 ASP x 100% Ampere 80% >$299 | 60% § E 40% <$299 Pascal ai 0% 123 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Turing Ampere Pascal Turing Ampere Launch Launch Launch Weeks Note: $499+ Est
Slide 22: GeForce Laptop — Fastest Growing Game Platform
GEFORCE LAPTOP — FASTEST GROWING GAME PLATFORM AMPERE LAPTOP — BIGGEST LAUNCH EVER 70 New Models, Starting at $999 MAX-Q REDEFINES GAMING LAPTOP 2X Designs, Thinnest Ever Dynamic Boost 2.0 Resizable BAR - <y 98 WhisperMode 2.0 2019 Max-Q Models GEFORCE LAPTOP — FASTEST SELLING CONSOLE New Buyers Cho
Slide 23: PC Gaming Is More Than Playing
PC GAMING IS MORE THAN PLAYING CREATING BROADCASTING EXPERIENCING NVIDIA Studio - 60+ RTX Creative/Design Apps Twitch Streamers up 2X in 2020 VR Revenue Up 71% on Steam in 2020 35M 30M 25M 20M 4X in 2025 15M 10M 5M il ~ —_ooe 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 45M Creators 30M Live St
Slide 24: GeForce NOW
GEFORCE NOW REACHING BILLIONS MORE GAMERS 10M GFN MEMBERS 27 Data Centers, 75 Countries, 12 GFNA Partners 1000 Games Onboarded ios Underpowered PC/Chromebook GAMING — 5G KILLER APP 1/3 of World Population Covered 0.2B 2020 2025 5G Subscribers
Slide 25: Gaming — Long Runway for Growth
GAMING — LONG RUNWAY FOR GROWTH NVIDIA RTX 85% Need to Upgrade GEFORCE LAPTOP Fastest Growing PC Platform BEYOND PLAYING 100M eAthletes/ Creators / Streamers / VR Sat pi CLOUD GAMING Billions More Gamers
Slide 26: Colette Kress, EVP & CFO, NVIDIA
Colette Kress | EVP & CFO, NVIDIA
Slide 27: FY 2021 — A Record-Breaking Year
FY 2021 — A RECORD-BREAKING YEAR REVENUE GROSS MARGIN OPERATING INCOME EPS $16.78 , $10.00 53% 65.6% $6.88 73% 310 bps 00 62.5% $10.98 $5.79 $3.7B FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 Gross Margin, Operating Income and EPS shown are Non-GAAP measures.
Slide 28: Revenue FY 2017 to FY 2021
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Slide 29: NVIDIA AI Enterprise
NVIDIA Al ENTERPRISE Delivering NVIDIA Al and Accelerated Computing to the World’s Largest Industries NVIDIA Al ENTERPRISE SIMULATE ORCHESTRATE Partner Ecosystem vmware’ luil Der ttechnologies HewlettPackard cisco gies Hewlett enovo Business Model Software license per CPU socket and annual maintenan
Slide 30: Over $8B Automotive Design Win Pipeline
OVER $8B AUTOMOTIVE DESIGN WIN PIPELINE Autonomous Driving and Al Cockpit Plat orm NEW ENERGY VEHICLES w= Li Auto Ano ESTABLISHED OEM 8 r Mercedes-Benz vVoLuvo HYUNDAI & ROBOTAXI TRUCKING crvise® Z00x VOLVO NAVISTAR Opipi pony. simple Plus einride KBoxbotica auton- FAW LOCOM<TION NVIDIA DRIVE SOFTWA
Slide 31: Gross Profit
GROSS PROFIT Mix Shift to Data Center Largest Driver of Gross Margin Improvement GM % REVENUE CONTRIBUTION 100% Pro Vis Gaming GROSS PROFIT Data Center 021 = 65.6% OEM / Other Auto 0% FY 2017 = 59.2% Bubble size represents Gross Profit contribution FY 2021 FY 2017 - FY 2021 Revenue CAGR Gross Profit
Slide 32: The Power of "One Architecture"
THE POWER OF “ONE ARCHITECTURE” Leveraging our Platform to Reach Record Levels of Profitability GROSS MARGIN 65.6% +640 bps 59.2% | FY 2017 FY 2021 OPERATING MARGIN 40.8% +870 bps 32.1% ONE ARCHITECTURE ECOSYSTEM APPLICATIONS SDK & ENGINES SYSTEMS FY 2017 FY 2021 Gross Margin and Operating Income Ma
Slide 33: Cash Flow and Capital Allocation
CASH FLOW AND CAPITAL ALLOCATION Cash Flow Generation Fuels Investments into New Markets and Capabilities CASH FLOW FROM OPERATING ACTIVITIES ($Bs) INVESTING IN OUR CAPABILITIES Capital Expenditures ($Bs) $1.1 FY 2017 FY2018 FY2019 FY 2020 FY 2021 GAME CHANGING ACQUISITIONS Mellanox: arm 37% CAGR $5
Slide 34: FY22 Off to a Great Start
FY22 OFF TOA GREAT START Q1 Tracking Ahead of Outlook Q1 FY2022 REVENUE OUTLOOK AS PROVIDED ON FEB 24, 2021 Revenue of $5.30 billion, plus or minus two percent Most of the sequential growth driven by Gaming; all other platforms also expected to grow q/q Includes CMP revenue of $50 million Q1 FY2022
Slide 35: Commitment to ESG
COMMITMENT TO ESG Building One of the World’s Great Companies Through People, Innovation, and Energy Efficient Technology PEOPLE FIRST “America’s Most Just Companies” #1 in Semiconductors & Equipment #1 -Worker Treatment FORBES 2021 “100 Best Companies to Work For” FORTUNE “2021 Best Places “Best Pl
Slide 36: Reconciliation of Non-GAAP to GAAP Financial Measures
Reconciliation of Non-GAAP to GAAP Financial Measures
Slide 37: Reconciliation of Non-GAAP to GAAP
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES $4,088 -- 15 10 $4,063 FY 2017 59.2% -- 0.2 0.2 58.8% $6,821 -- 39 14 $6,768 FY 2020 62.5% <- 0.4 0.1 62.0% $10,947 (425) 88) 38) $10,396 FY 2021 65.6% (2.4) i) 0.2) 62.3% A. Consists of amortization of intangible assets and inventory step up B.
Slide 38: Reconciliation of Non-GAAP to GAAP (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) OPERATING MARGIN ACQUISITION- STOCK-BASED ($ IN MILLIONS & MARGIN NON-GAAP RELATED AND COMPENSATION (B) OTHER (C} GAAP PERCENTAGE) OTHER COSTS (A) 2,221 16) 248 23) 1,934 FY 2017 32.1% 0.2) 3.6 (0)] 28.0% 3,617 13) 391 (3) 3,210 FY 2018
Slide 39: Reconciliation of Non-GAAP to GAAP (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ACQUISITION- STOCK-BASED TAX IMPACT OF EPS NON-GAAP RELATED AND OTHER (C} GAAP OTHER COSTS [A) COMPENSATION (B) ADJUSTMENTS FY 2020 Net income ($ in millions) $3,580 (31) (844) (15) 106 $2,796 Shares used in diluted per share calculation
Slide 40: Reconciliation of Non-GAAP to GAAP (Contd.)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) FY 2017 $2,221 187 (16) $2,392 FY 2018 $3,617 19) (13) $3,803 FY 2019 $4,407 262 (7) $4,662 FY 2020 $3,735 381 (6) $4,110 FY 2021 $6,803 1,098 (591) $7,310 ‘A. Refer to Appendix herein for reconciliation of Non-GAAP operating income to G
Slide 41: GTC Spring 2021 Investor Day
© NVIDIA. GTC SPRING 2021 INVESTOR DAY