Slide 1: AMD Financial Results Fourth Quarter and Full Year 2022
AMD FINANCIAL RESULTS Fourth Quarter and Full Year 2022 January 31, 2023
Slide 2: Cautionary Statement
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202322 CAUTIONARY STATEMENT 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; AMD’s expected
Slide 3: Our Journey
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202333 Expanding Customer & Partner Ecosystem Data Center and Embedded Growth Strong Financial Foundation Leadership Product Portfolio OUR JOURNEY
Slide 4: Our Leadership Technology
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202344 OUR LEADERSHIP TECHNOLOGY Software Enablement Open-source software co-designed with hardware and optimized for performance across heterogenous solutions Data Center Leadership Delivering innovation in cloud, enterprise, AI and accelerated computi
Slide 5: Our Leadership Products
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202355 OUR LEADERSHIP PRODUCTS Embedded Leadership FPGAs, Adaptive SoCs and SoMs, and embedded CPUs and GPUs for a broad set of markets Gaming Top-to-bottom desktop and notebook GPUs, game console and semi-custom SoCs Client Leadership CPUs and APUs for
Slide 6: Revenue Summary FY 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 20236 REVENUE SUMMARY FY 2022 ▪ Revenue of $23.6 billion grew 44% y/y driven by higher Embedded, Data Center and Gaming segment revenue, partially offset by lower Client segment revenue ▪ Pro forma1 revenue of $24.1 billion, up 20% compared to $20.1 bil
Slide 7: Revenue Summary Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 20237 REVENUE SUMMARY Q4 2022 ▪ Revenue of $5.6 billion grew 16% y/y driven by growth across the Embedded and Data Center segments, partially offset by lower Client and Gaming segment revenue $4.8B $5.6B Q4 2021 Q4 2022
Slide 8: Gross Margin Summary FY 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 20238 GROSS MARGIN SUMMARY FY 2022 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin increase primarily driven by a richer product mix with higher Embedded and Data Center segment revenue, partially offset by lower Client seg
Slide 9: Gross Margin Summary Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 20239 GROSS MARGIN SUMMARY Q4 2022 1. See Appendices for GAAP to Non-GAAP reconciliation ▪ Non-GAAP gross margin increase primarily driven by a richer product mix with higher Embedded and Data Center segment revenue, partially offset by lower Client seg
Slide 10: Operating Income Summary FY 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202310 $3.6B $1.3B FY 2021 FY 2022 OPERATING INCOME SUMMARY FY 2022 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $4.1B $6.3B FY 2021 FY 2022 ▪ Operating income decrease primarily due to amortization of Xilinx acquisition-related
Slide 11: Operating Income (Loss) Summary Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202311 $1.2B $(0.1)B Q4 2021 Q4 2022 OPERATING INCOME (LOSS) SUMMARY Q4 2022 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 $1.3B $1.3B Q4 2021 Q4 2022 ▪ Operating loss primarily due to amortization of Xilinx acquisition-related in
Slide 12: Earnings Per Share Summary FY 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202312 EARNINGS PER SHARE SUMMARY FY 2022 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 ▪ Net income of $1.3 billion compared to $3.2 billion in prior year ▪ Earnings per share $0.84 compared to $2.57 in prior year $2.57 $0.84 FY
Slide 13: Earnings Per Share Summary Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202313 EARNINGS PER SHARE SUMMARY Q4 2022 1. See Appendices for GAAP to Non-GAAP reconciliation GAAP Non-GAAP1 ▪ Net income of $21 million, decreased y/y primarily due to amortization of Xilinx acquisition-related intangible assets, partially offset by
Slide 14: FY 2022 Summary P&L | GAAP
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202314 ($ in millions, except per share data) 2022 2021 Y/Y Revenue $23,601 $16,434 Up 44% Gross Profit $10,603 $7,929 Up 34% Gross Margin % 45% 48% Down 330bps Operating Expenses $9,441 $4,293 Up 120% Operating Expense/Revenue % 40% 26% Up 14 pp Operat
Slide 15: FY 2022 Summary P&L | Non-GAAP
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202315 ($ in millions, except per share data) 2022 2021 Y/Y Revenue $23,601 $16,434 Up 44% Gross Profit $12,273 $7,934 Up 55% Gross Margin % 52% 48% Up 370 bps Operating Expenses $6,030 $3,877 Up 56% Operating Expense/Revenue % 26% 24% Up 2 pp Operating
Slide 16: Q4 2022 Summary P&L | GAAP
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202316 ($ in millions, except per share data) Q4’22 Q4’21 Y/Y Revenue $5,599 $4,826 Up 16% Gross Profit $2,403 $2,426 Flat Gross Margin % 43% 50% Down 740 bps Operating Expenses $2,557 $1,223 Up 109% Operating Expense/Revenue % 46% 25% Up 21 pp Operatin
Slide 17: Q4 2022 Summary P&L | Non-GAAP
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202317 ($ in millions, except per share data) Q4’22 Q4’21 Y/Y Revenue $5,599 $4,826 Up 16% Gross Profit $2,859 $2,427 Up 18% Gross Margin % 51% 50% Up 70 bps Operating Expenses $1,602 $1,103 Up 45% Operating Expense/Revenue % 29% 23% Up 6 pp Operating I
Slide 18: Revenue by Quarter
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202318 $3.4 $3.9 $4.3 $4.8 $5.9 $6.6 $5.6 $5.6 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 EMBEDDED AND DATA CENTER SEGMENTS GREW Y/Y, CLIENT AND GAMING SEGMENT LOWER Y/Y +16% y/y REVENUE ($ in Billions)
Slide 19: Gross Margin (GAAP)
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202319 46% 48% 48% 50% 48% 46% 42% 43% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Y/Y DECREASE PRIMARILY DUE TO AMORTIZATION OF XILINX ACQUISITION-RELATED INTANGIBLE ASSETS GROSS MARGIN (GAAP) -7pp y/y
Slide 20: Gross Margin (Non-GAAP)
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202320 46% 48% 48% 50% 53% Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 51% Y/Y INCREASE PRIMARILY DRIVEN BY RICHER PRODUCT MIX WITH HIGHER EMBEDDED AND DATA CENTER SEGMENT REVENUE, PARTIALLY OFFSET BY LOWER CLIENT SEGMENT REVENUE GROSS MARGIN (Non-G
Slide 21: Earnings Per Share (GAAP)
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202321 $0.45 $0.58 $0.75 $0.80 $0.56 $0.27 $0.04 $0.01 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 -99% y/y EARNINGS PER SHARE (GAAP) Y/Y DECREASE PRIMARILY DUE TO AMORTIZATION OF XILINX ACQUISITION-RELATED INTANGIBLE ASSETS
Slide 22: Earnings Per Share (Non-GAAP)
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202322 $0.52 $0.63 $0.73 $0.92 $1.13 $1.05 $0.67 $0.69 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 -25% y/y EARNINGS PER SHARE (Non-GAAP)* Q4 DOWN Y/Y PRIMARILY DUE TO LOWER CLIENT OPERATING INCOME *See Appendices for GAAP to Non-GAAP reconciliation
Slide 23: Q4 & FY 2022 Summary Balance Sheet Items
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202323 Q4 & FY 2022 SUMMARY BALANCE SHEET ITEMS STRONG NET CASH POSITION Returned $3.7 billion to shareholders in FY’22 through share repurchases ($ in millions) Q4’22 Q4’21 Y/Y Cash, Cash Equivalents and Short-term Investments $5,855 $3,608 Up $2,247 A
Slide 24: Q4 & FY 2022 Segment Results
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202324 Q4 & FY 2022 SEGMENT RESULTS ($ in millions) Q4’22 Q4’21 Y/Y 2022 2021 Y/Y Data Center Net Revenue $1,655 $1,163 Up 42% $6,043 $3,694 Up 64% Operating Income $444 $369 Up 20% $1,848 $991 Up 86% Client Net Revenue $903 $1,829 Down 51% $6,201 $6,88
Slide 25: Data Center Segment Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202325 DATA CENTER SEGMENT Q4 2022 ▪ Announced availability of 4th Gen EPYC CPU processors delivering leadership performance and energy efficiency ▪ Previewed AMD InstinctTM MI300 designed for leadership HPC and AI performance ▪ Powering 101 supercomput
Slide 26: Client Segment Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202326 CLIENT SEGMENT Q4 2022 ▪ Announced broadest portfolio of high- performance PC products for mobile and desktop applications, including: ▪ RyzenTM 7040 CPU Series for ultrathin notebooks, industry’s 1st x86 CPUs with a dedicated, on-chip AI inferen
Slide 27: Gaming Segment Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202327 23% 16% Q4 2021 Q4 2022 GAMING SEGMENT Q4 2022 ▪ Announced RadeonTM RX 7900 series graphics cards, world’s 1st gaming graphics card with advanced AMD chiplet design ▪ Announced AMD Radeon 7000 Series Graphics for laptop PCs designed for exception
Slide 28: Embedded Segment Q4 2022
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202328 EMBEDDED SEGMENT Q4 2022 ▪ Announced multiple new wins for AMD’s automotive grade ZynqTM Ultrascale+TM MP SoC platforms with several of the largest vehicle equipment suppliers ▪ AMD VitisTM Medical Imaging libraries to bring premium medical imagi
Slide 29: Financial Outlook – Non-GAAP
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202329 ($ in millions) Q1’23 FY 2023 Revenue ~$5.3 Billion +/- $300 Million Decrease of ~10% y/y Data Center and Embedded segments expected to grow y/y Gross Margin % ~50% ~flattish in 1H 2023, expansion in 2H 2023 Operating Expenses ~$1.6 Billion ~flat
Slide 30: FY 2022 Summary
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 20233030 Strong Data Center, Embedded and Gaming Segment Performance Gross Margin 45% Non-GAAP GM 52% Operating Cash Flow $3.6B Free Cash Flow $3.1B Revenue $23.6B Up 44% Y/Y FY 2022 SUMMARY 1 RECORD ANNUAL REVENUE, NON-GAAP GROSS MARGIN AND PROFITABILI
Slide 31: Q4 2022 Summary
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 20233131 Growth in Embedded and Data Center Segments Gross Margin 43% Non-GAAP GM 51% Operating Cash Flow $567M Free Cash Flow $443M Revenue $5.6B Up 16% Y/Y Q4 2022 SUMMARY 1 DATA CENTER AND EMBEDDED PRODUCTS >50% OF 4TH QUARTER REVENUE 1. 1. See Appen
Slide 32: AMD Commitment to ESG
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 20233232 AMD COMMITMENT TO ESG Governance Delivering industry leading products with integrity, innovation and quality in order to help solve global challenges Social Creating a culture that drives innovation by fostering diversity, inclusion and belongi
Slide 33: Our Next Journey
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 2023333 Large and Compelling $300B TAM World-Class Execution and Focus Unmatched Technology Leadership Expanding Data Center Leadership and Pervasive AI Strong Balance Sheet OUR NEXT JOURNEY DRIVING LONG-TERM SHAREHOLDER RETURNS
Slide 34: Reconciliation of As-Reported Revenue to AMD Pro Forma Revenue
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202334 RECONCILIATION OF AS-REPORTED REVENUE TO AMD PRO FORMA REVENUE APPENDICES (1) Pre-acquisition revenue for the year ended December 31, 2022 includes unaudited Xilinx revenue from January 2, 2022 to February 13, 2022. Pre-acquisition revenue for th
Slide 35: Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202335 RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT AND GROSS MARGIN (Millions) (Unaudited) Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 2021 2022 GAAP gross profit $ 1,587 $ 1,830 $ 2,086 $ 2,426 $ 2,818 $ 3,028 $ 2,354 $ 2,403 $ 7,929 $ 10,603 G
Slide 36: Reconciliation of GAAP Operating Income to Non-GAAP Operating Income
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202336 APPENDICES RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME (Millions) (Unaudited) Q4’22 Q4’21 2022 2021 GAAP operating income (loss) $ (149) $ 1,207 $1,264 $3,648 GAAP operating margin % (3%) 25% 5% 22% Stock-based compensati
Slide 37: Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202337 RECONCILIATION OF GAAP TO NON-GAAP NET INCOME / EARNINGS PER SHARE (1) Acquisition-related costs primarily comprised of transaction costs, purchase price adjustments for inventory and certain compensation charges. (2) GAAP and non-GAAP diluted EP
Slide 38: Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202338 (Millions, except per share data) (Unaudited) 2021 2022 GAAP net income / earnings per share $ 3,162 $ 2.57 $1,320 $0.84 Loss on debt redemption/conversion 7 – – – (Gains) losses on equity investments, net (56) (0.04) 62 0.04 Stock-based compensa
Slide 39: Reconciliation of Operating Cash Flow to Free Cash Flow
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202339 (Millions) (Unaudited) Q4’22 2022 Operating cash flow 567 3,565 Operating cash flow margin % 10% 15% Purchases of property and equipment (124) (450) Free cash flow 443 3,115 Free cash flow margin % 8% 13% APPENDICES RECONCILIATION OF OPERATING CA
Slide 40: Share Count Overview
Q4 AND FY 2022 FINANCIAL RESULTS – JANUARY 31, 202340 Shares (millions) (1) Q1’22 Q2’22 Q3’22 Q4’22 2022 Q1’23 2023 Actual Actual Actual Actual Actual Estimate Estimate Basic shares 1,393 1,618 1,615 1,613 1,561 1,612 1,619 Dilutive impact from employee equity grants and warrant (2) 17 14 10 5 10 5
Slide 41: AMD – Together We Advance
AMD«¢l together we advance_