Slide 1: Fourth Quarter and Full Year 2021 Financial Results
FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS FEBRUARY 1, 2022
Slide 2: Cautionary Statement
2 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 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
3 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 OUR JOURNEY Best-in-Class Financial Performance Expanding Customer & Partner Ecosystem Best Product Portfolio in History Significant Business Acceleration
Slide 4: Our Leadership Technology
4 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 Delivering Robust PC Experiences and Gaming Solutions PC/GAMING SOLUTIONS Leadership Process Technology and 3D Chiplet Packaging ADVANCED TECHNOLOGY Executing Multi-generational CPU and GPU Products & Roadmaps INDUSTRY LEADING IP Driving Innovati
Slide 5: Performance Leadership in PCs, Data Center and Gaming
5 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 z PERFORMANCE LEADERSHIP IN PCS, DATA CENTER AND GAMING OUR BEST EVER PRODUCT PORTFOLIO See endnotes R5K-002 and CZM-35 Leadership desktop and mobile performance and advanced battery life Performance and power efficiency with AMD RDNA™ 2 Architec
Slide 6: Financial Summary FY 2021
6 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 1. See Appendices for GAAP to Non-GAAP reconciliation FINANCIAL SUMMARY FY 2021¹ $9.8 $16.4 FY 2020 FY 2021 +68% y/y Annual Revenue ($B) Record revenue $16.4 billion, up 68% from 2020 Gross margin of 48% up 370 bps from prior year Significan
Slide 7: Quarterly Summary Q4 2021
7 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 1. See Appendices for GAAP to Non-GAAP reconciliation QUARTERLY SUMMARY Q4 2021¹ $3.2 $4.8 Q4 2020 Q4 2021 +49% y/y Quarterly Revenue ($B) Record revenue $4.8 billion, up 49% y/y and 12% q/q Gross margin 50%, up 560 bps y/y and up 190 bps q/q
Slide 8: Computing and Graphics Segment Q4 2021
8 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 COMPUTING AND GRAPHICS SEGMENT Q4 2021 Revenue $2.6 billion • Up 32% y/y and 8% q/q driven by RyzenTM and RadeonTM processor sales Higher Average Selling Prices (ASP) • Client processor ASP grew y/y and q/q due to a richer mix of Ryzen proces
Slide 9: Enterprise, Embedded and Semi-Custom Segment Q4 2021
9 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 ENTERPRISE, EMBEDDED AND SEMI-CUSTOM SEGMENT Q4 2021 Revenue $2.2 billion • Up 75% y/y and 17% q/q driven by higher EPYCTM and semi-custom processor sales Higher Operating Income • Operating income $762 million compared to $243 million a year
Slide 10: Revenue Trend: Outstanding Revenue Growth
10 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 $1,786 $1,932 $2,801 $3,244 $3,445 $3,850 $4,313 $4,826 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 +49% y/y REVENUE TREND ($ IN MILLIONS) OUTSTANDING REVENUE GROWTH
Slide 11: Gross Margin Trend: Strong Gross Margin Expansion
11 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 46% 44% 44% 45% 46% 48% 48% 50% Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 +560 bps y/y GROSS MARGIN TREND (GAAP AND NON-GAAP)¹ 1. See Appendices for GAAP to Non-GAAP reconciliation STRONG GROSS MARGIN EXPANSION
Slide 12: Earnings Per Share Trend
12 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 EARNINGS PER SHARE TREND $0.14 $0.13 $0.32 $0.39 $0.45 $0.58 $0.75 $0.80 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 A x is T it le +105% y/y1 (GAAP) $1.45 1 1. In Q4 2020, AMD released $1.3 billion of its $2.9 billion income tax valuation a
Slide 13: Earnings Per Share Trend (Non-GAAP)
13 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 $0.18 $0.18 $0.41 $0.52 $0.52 $0.63 $0.73 $0.92 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 +77% y/y EARNINGS PER SHARE TREND (NON-GAAP)1 1. 1. See Appendices for GAAP to Non-GAAP reconciliation SIGNIFICANT GROWTH IN PROFITABILITY
Slide 14: FY 2021 Summary P&L – GAAP
14 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 ($ in millions, except per share data) 2021 2020 Y/Y Revenue $16,434 $9,763 Up 68% Gross Profit $7,929 $4,347 Up 82% Gross Margin % 48% 45% Up 370bps Operating Expenses $4,293 $2,978 Up 44% Operating Expenses/Revenue % 26% 31% Down 5pp Operating
Slide 15: FY 2021 Summary P&L – Non-GAAP
15 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 ($ in millions, except per share data) 2021 2020 Y/Y Revenue $16,434 $9,763 Up 68% Gross Profit $7,934 $4,353 Up 82% Gross Margin % 48% 45% Up 370bps Operating Expenses $3,877 $2,696 Up 44% Operating Expenses/Revenue % 24% 28% Down 4pp Operating
Slide 16: Q4 2021 Summary P&L – GAAP
16 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 ($ in millions, except per share data) Q4’21 Q4’20 Y/Y Q3’21 Q/Q Revenue $4,826 $3,244 Up 49% $4,313 Up 12% Gross Profit $2,426 $1,451 Up 67% $2,086 Up 16% Gross Margin % 50% 45% Up 560bps 48% Up 190bps Operating Expenses $1,223 $881 Up 39% $1,1
Slide 17: Q4 2021 Summary P&L – Non-GAAP
17 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 ($ in millions, except per share data) Q4’21 Q4’20 Y/Y Q3’21 Q/Q Revenue $4,826 $3,244 Up 49% $4,313 Up 12% Gross Profit $2,427 $1,452 Up 67% $2,087 Up 16% Gross Margin % 50% 45% Up 560bps 48% Up 190bps Operating Expenses $1,103 $789 Up 40% $1,0
Slide 18: Q4 and FY 2021 Segment Results
18 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 Q4 AND FY 2021 SEGMENT RESULTS ($ in millions) Q4’21 Q4’20 Y/Y Q3’21 Q/Q 2021 2020 Y/Y Computing and Graphics Net Revenue $2,584 $1,960 Up 32% $2,398 Up 8% $9,332 $6,432 Up 45% Operating Income $566 $420 Up 35% $513 Up 10% $2,090 $1,266 Up 65% E
Slide 19: Q4 and FY 2021 Summary Balance Sheet Items
19 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 Q4 AND FY 2021 SUMMARY BALANCE SHEET ITEMS ($ in millions) Q4 & FY21 Q4 & FY20 Y/Y Q3’21 Q/Q Cash, Cash Equivalents and Short-term Investments $3,608 $2,290 Up $1,318 $3,608 Flat Accounts Receivable, Net $2,706 $2,066 Up $640 $2,224 Up $482 Inve
Slide 20: Outlook
20 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 1. See Cautionary Statement on Slide 2. These forward-looking outlook statements and non-GAAP measures are based on current expectations as of February 1, 2022, and assumptions and beliefs that involve numerous risks and uncertainties. AMD under
Slide 21: Q4 2021 Summary
21 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 Q4 2021 SUMMARY Operating Income Doubled Y/Y Gross Margin of 50% Up More Than 5 pp Y/Y Record Revenue $4.8B Up 49% Y/Y, 12% Q/Q Operating Cash Flow of $822M FREE CASH FLOW OF $736 MILLION
Slide 22: FY 2021 Summary
22 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 FY 2021 SUMMARY Gross Margin of 48% Up More Than 3 pp Y/Y Record Annual Revenue of $16.4B, Up 68% Y/Y RECORD GAAP & NON-GAAP PROFITABILTY & EPS Operating Cash Flow of $3.5B, Up 229% Y/Y Repurchased $1.8B in Common Stock
Slide 23: AMD's Commitment to ESG
23 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 AMD’SCOMMITMENT TO ESG Steadfast commitment to environmental stewardship and contributing to our local communities ENVIRONMENTAL Delivering leadership products with integrity, innovation and quality in order to help solve global challenges GOVER
Slide 24: Building the Best
24 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 BUILDING THE BEST Outstanding Financial Performance Execution Excellence Leadership Roadmaps Increasing Market Share
Slide 25: Expect Completion of the Transaction in the First Quarter 2022
25 [Public] Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 The Industry's High Performance and Adaptive Computing Leader EXPECT COMPLETION OF THE TRANSACTION IN THE FIRST QUARTER 2022
Slide 26: Reconciliation of GAAP to Non-GAAP Gross Profit and Operating Expenses
26 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 APPENDICES Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Millions) Q1'20 Q2'20 Q3'20 Q4'20 Q1’21 Q2’21 Q3’21 Q4’21 2020 2021 GAAP gross profit $ 818 $ 848 $ 1,230 $ 1,451 $ 1,587 $ 1,830 $ 2,086 $ 2,426 $ 4,347 $ 7,929 GAAP g
Slide 27: Reconciliation of GAAP to Non-GAAP Operating Income
27 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 APPENDICES Reconciliation of GAAP Operating Income to Non-GAAP Operating Income (Millions) Q4’21 Q4’20 Q3’21 2021 2020 GAAP operating income $ 1,207 $ 570 $ 948 $ 3,648 $ 1,369 GAAP operating margin % 25% 18% 22% 22% 14% Stock-based compensation
Slide 28: Appendices: Diluted EPS Calculation Notes
28 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 APPENDICES (1) Q1’20 and Q2’20 GAAP diluted EPS calculation includes 31 million shares related to the assumed conversion of the Company's 2026 Convertible Notes and the associated $4 million and $3 million interest expense, respectively, add-bac
Slide 29: Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share
29 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 APPENDICES Reconciliation of GAAP to Non-GAAP Net Income / Earnings Per Share (1) For the year ended December 26, 2020, GAAP diluted EPS calculations include 3 million shares related to the assumed conversion of the Company's 2026 Convertible No
Slide 30: Share Count Overview
30 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 APPENDICES Share Count Overview Shares (millions) (1) Q1’21 Q2’21 Q3’21 Q4’21 2021 Q1’22 2022 Actual Actual Actual Actual Actual Estimate (4) Estimate (4) Basic Shares 1,213 1,216 1,214 1,208 1,213 1,202 1,205 Dilutive impacts from: Employee Equ
Slide 31: Total Debt and Free Cash Flow Reconciliation
31 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 APPENDICES Total Debt (Net) (Millions) Q4’21 Q4'20 Q3’21 7.50% Senior Notes due 2022 $ 312 $ 312 $ 312 2.125% Convertible Senior Notes due 2026 1 26 1 Total Debt (principal amount) $ 313 $ 338 $ 313 Unamortized debt discount associated with 2.12
Slide 32: Endnotes
32 Q4 AND FY 2021 FINANCIAL RESULTS | FEBRUARY 1, 2022 ENDNOTES R5K-002: Testing by AMD Performance labs as of 5/28/2021 based on the average FPS of 20 PC games at 1920x1080 with the High image quality preset using an AMD Ryzen™ 9 5900X processor vs. Core i9-11900K. For Ryzen 5000 G-Series processor