Slide 1: Q2 Earnings
Q2 Earnings Aug 1 , 2024 st
Slide 2: 2nd Quarter Earnings Presentation
2nd Quarter Earnings Presentation Pat Gelsinger David Zinsner Chief Executive Officer Executive Vice President and Chief Financial Officer
Slide 3: 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 percentage, operating income, and earnings per share attributable to Intel, including year-over-year comparisons, are presented on a non-GAAP basis. This presentati
Slide 4: Executive Summary
Executive Summary Q2 Rev In-Line, Profitability Below Expectations Implementing >$10B cost reduction plan for 2025 Driving sustainable operational & capital efficiencies with new model 5N4Y Nearing Completion Intel 18A 1.0 PDK released Lead Intel 18A Client and Data Center products powered-on Defini
Slide 5: >$10B Cost Reduction Plan
>$10B Cost Reduction Plan Non-GAAP R&D and MG&A Prior Est INTC Guide ▪ Responding to market conditions and driving ~$20B ~$17.5B efficiencies enabled by new operating model ▪ Sustaining investment needed to fund and execute our strategy 2024 2025 Capital Spending* Gross Net (non-GAAP) ▪ Aligning cap
Slide 6: 5N4Y Finish Line in Sight
5N4Y Finish Line in Sight Technology Intel Products Ecosystem Clearwater Perf/W Chip Forest Increase Density (vs. Intel 3) (vs. Intel 3) 1.0 PDK ~ 15% 1.30x Advanced Packaging Panther Alliances EMIB 2.5D EMIB 3.5D Lake Shipping since 2017 All the benefits of EMIB 2.5D HBM Integration with integratio
Slide 7: Unmatched AI PC Footprint
Unmatched >15M Units of AI PC Footprint Intel® Core® Ultra shipped to date 230+ OEM/IHV Partners / Designs Lunar Lake delivers up to: ▪ +50% Graphics Perf ▪ 40% Lower Power ▪ 3x AI TOPs
Slide 8: Q2 Financial Highlights
Q2 Financial Highlights $12.8B 38.7% $0.02 Revenue 1 Gross Margin EPS (non-GAAP) (non-GAAP) Down 1% YoY Down 1.1 ppt YoY Down $0.11 YoY In line with updated May outlook 4.8 ppt below April outlook1 $0.08 below April outlook1 GAAP Gross Margin 35.4%, down 0.4 ppt YoY GAAP EPS ($0.38), down $0.73 YoY
Slide 9: Intel Products and Foundry revenue, operating income and gross margin trends
($B) Revenue Op Income (non-GAAP) GM% (non-GAAP) ▪ Initiating significant cost reductions in response to market conditions $15.4 ▪ AI PC ramping faster than expected, $14.2 momentum to >40Mu shipped in ‘24 $12.9 $12.7 $12.8 ▪ Intel 18A PDK 1.0, Panther Lake & Clearwater Forest powered-on 48.8% 45.8%
Slide 10: CCG, DCAI and NEX results
CCG DCAI NEX ($B) Revenue Op Income OM% ($B) Revenue Op Income OM% ($B) Revenue Op Income OM% $8.8 $1.5 $1.5 $7.9 $3.5 $1.4 $1.4 $1.3 $7.5 $7.4 $3.2 $6.8 $3.1 $3.0 $3.0 40.3% 35.3% 35.1% 33.7% 29.3% 13.5% 10.3% 21.1% 6.9% 7.4% $3.6 15.9% 4.7% $2.8 14.9% 12.7% $2.6 $2.5 9.1% $2.0 $0.7 $0.2 $0.1 $0.5
Slide 11: Intel Foundry results
($B) Revenue Op Income OM% ▪ Released Intel 18A PDK 1.0; ramping volume production in 1H’25 ▪ Intel 14A & Intel 10A development $5.2 $4.7 underway utilizing High NA EUV $4.2 $4.4 $4.3 ▪ Building sustainable supply chain in the U.S. and around the world -$1.3 -$1.4 -$1.9 -$2.5 -$2.8 -29.7% -25.5% -44
Slide 12: Altera and Mobileye results
($M) Revenue Op Income OM% ($M) Revenue Op Income OM% $848 $637 $735 $530 40.8% $454 38.0% $440 35.8% 32.1% 28.4% 16.4% $480 $342 $361 $239 $242 $346 -6.9% $170 -11.4% $129 $263 0.8% $72 $4 -$68 -$39 -$25 -28.5% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 ▪ Continued strength in Agil
Slide 13: Outlook
Outlook intel.
Slide 14: Q3 2024 Outlook
Q3 2024 Outlook $12.5-13.5B 38.0% $(0.03) Revenue Gross Margin1 EPS1 (non-GAAP) (non-GAAP) Down $1.2B YoY 1 Down 7.8 ppt YoY Down $0.44 YoY 1 Revenue growth comparison, gross margin outlook and EPS attributable to Intel outlook based on the mid-point of the revenue range
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of Non-GAAP Actuals
Reconciliation of Non-GAAP Actuals Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 (In Billions) GAAP gross margin percentage 35.8% 42.5% 45.7% 41.0% 35.4% Acquisition-related adjustments 2.4% 2.1% 1.9% 1.8% 1.7% Share-based compensation 1.6% 1.2% 1.1% 2.3% 1.5% Non-GAAP gross margin percentage 39.8% 45.8%
Slide 17: Reconciliation of Non-GAAP Q3 Outlook
Reconciliation of Non-GAAP Q3 Outlook Q3 2024 Outlook1 Q3 2023 Actuals Approximately GAAP gross margin percentage 34.5% 42.5% Acquisition-related adjustments 1.7% 2.1% Share-based compensation 1.8% 1.2% Non-GAAP gross margin percentage 38.0% 45.8% GAAP earnings (loss) per share attributable to Intel
Slide 18: Reconciliation of Other Non-GAAP Forward-Looking Estimates
Reconciliation of Other Non-GAAP Forward-Looking Estimates (In Billions) Full-Year 2024 Full-Year 2025 Approximately Approximately GAAP R&D and MG&A $22.9 $20.1 Acquisition-related adjustments (0.2) (0.1) Share-based compensation (2.7) (2.5) Non-GAAP R&D and MG&A $20.0 $17.5 GAAP additions to proper
Slide 19: Reconciliation of Non-GAAP Adjusted Free Cash Flow
Reconciliation of Non-GAAP Adjusted Free Cash Flow (In Billions) Q2 2024 GAAP net cash provided by (used for) operating activities $2.3 Net partner contributions and incentives received 5.9 (cash expended) for property plant and equipment Adjusted free cash flow $8.2