Intel Corporation · NASDAQ:INTC
Intel — Investor Day (November 2014)
63 slides from Intel's investor day presentation, Nov 21, 2014
Slide 1: Investor Meeting 2014
INVESTOR MEETING 2014 SANTA CLARA NOVEMBER 20
Slide 2: Renée James, President
INVESTOR MEETING 2014 Renée James President
Slide 3: Intel Growth & Technology Investments
Intel Growth & Technology Investments Server Core: Intel® Xeon® E5-2600 V3 * Utilizing Intel IP in adjacent segments of computing & enabling new businesses * Invest in Intel platform value to maintain differentiation & leadership = Extend the Intel Architecture into emerging and growth segments of c
Slide 4: Key Areas of Strategic Platform Investments
Key Areas of Strategic Platform Investments a Mobile & Communications: Computing and devices will all be connected We as will IOT. Key area of platform investment for communications as well ( as growing Mobile Intel Architecture footprint in tablets and phones Security & Privacy: Central to the clou
Slide 5: Today's Detailed Discussions
Today’s Detailed Discussions Communications Platform & Mobile Technologies The Internet of Things and Connected Embedded Storage and Memory
Slide 6: Agenda
Agenda Communications Platform & Mobile Technologies The Internet of Things and Connected Embedded Storage and Memory
Slide 7: Mobile and Communications Platform Strategy
Mobile and Communications Platform Strategy = Leadership communications and connectivity development scaling across multiple segments: = JOT, Tablet, PC, Datacenter and Phone * Communications including WiFi and Cellular ,BT, BLE, NFC, etc, » Mobile platform investments lead innovation in low power a
Slide 8: Intel's Strategic Investment in Mobile & Comms
Intel’s Strategic Investment in Mobile & Comms Hermann Eul Vice President, General Manager Mobile and Communications Group
Slide 9: Mobile Market Trends
Mobile Market Trends Smart Mobile Devices Low-End Growing LTE Grows ~60% ~15% Growth 5x Faster Low-End 200% 2000 2000 100% 1800 1800 90% | | 1600 1600 80% 1400 1400 70% 1200 1200 60% 1000 1000 50% 800 800 40% 600 600 30% 400 400 20% 200 200 10% 10) 10) 0% 2014 2015 2014 2015 2014 2015 @Tablets mSmar
Slide 10: Our Focused Strategy to Win in 2014
Our Focused Strategy to Win in 2014 Grow IA Mobile Footprint Tablets, Cost Reduce, Differentiate Global Leadership In Communications & Connectivity Full IP Portfolio that Benefits All Intel Platforms Capture and Lead Growing V Value ice Entry Segment
Slide 11: Mobile Strategy is Paying Off
Mobile Strategy is Paying Off Application Processors, Communications & Connectivity Solutions 40M Tablet Volume On Track #1 Merchant Tablet Supplier, #2 Tablet Supplier Overall* Delivered World Class Advanced LTE Globally Competitive, Accelerated Rate of New Product Development First Integrated IA +
Slide 12: AOM Tablets
AOM Tablets ~100 OEM ~350 ODM Designs 2014 Designs in Market or Coming to Market Long Term Customer Partnerships ~20% WWAN Connected Channel & Marketing Campaigns Platform & eBOM Cost Reduction Value & Entry Premium & Mid Source: intel Internal Other brands and names may be claimed as the property o
Slide 13: Showcase Designs
Showcase Designs Dell Venue 8 with Intel® Realsense™ Snapshot FUHU DreamTab Lenovo Yoga 2 Pro Tablet — Other brands and names may be claimed as the property of others.
Slide 14: >350 Global Designs
>350 Global Designs >30 ODM, PCBA Partners 45% of Intel Powered Tablets Sold In ’14* > ‘Source: Intel internal estimates =
Slide 15: YIFANG Digital
[el] YIFANG Digital
Slide 16: Performance & Experience Matters
Performance & Experience Matters At All Price Points On Intel® Atom™ Processor Z3580 vs. On Intel® Atom™ Processor Z3580 vs. On Intel® Atom™ ProcesS6r Z3580 vs. Octa-core MediaTek* MT8392 Octa-core MediaTek” MT8392 Octa-core MediaTek” MT8392 Up to Up to Up to 53% 150% 200% Faster Better@ Faster® 1)
Slide 17: Applications Run Great On Intel
Applications Run Great On Intel Windows & Android = I. in Software i = Better Performance Top 2K Applications SDKs & Tools > Performance ve Windows & Android Competitive Platforms
Slide 18: Intel and Android Momentum
Intel and Android Momentum Intel Inside Android TV Intel Reference Design Shipments on Android Nexus Player for Android (Mu) Expanding Our Mobile Scale More Android Devices Steady Increase of Android Platform for Value Segment Shipments on IA
Slide 19: Smartphones
Smartphones | rs lenow i ie Intel LTE elauasiaiesaee Advanced Rockchip ASUS aia Samsung Galaxy ~ S Note 4 & Alpha GePSPREADTRUM = | # 7 LG G3 “asus Asus PadFone X mini Fonepad 7 ME372CL — Other brands and names may be claimed as the property of others.
Slide 20: LTE Ramp
LTE Ramp Shipping Today with Carriers in U.S., Latin America, Europe, SE Asia A) singtel ‘E+ Mobile- “© PSAMSUNGd 2. ben oy lenovo
Slide 21: Solid Foundation for Growth Design
Solid Foundat jel Growth 1 Design QP Biveline Ee. Yi KY Ecosystem
Slide 22: 2015: Focused Expansion
2015: Focused Expansion
Slide 23: SoFIA Family On Track for 2015 Ramp
SOFIA Family On Track for 2015 Ramp First Integrated Intel Architecture & Intel Communications Solutions SoFIA 3G al Phablets Rockchi> Fats oF SoFIA 3G-R ey Tablets Ge}SPREADTRUM SoFIA LTE Hi Phones
Slide 24: Communications and Connectivity Advantage
Communications and Connectivity Advantage Key for Platform & Industry Innovation Complete IP Portfolio Integrated 2015 Platforms Sey ULE Broadwell LTE
Slide 25: Communications and Connectivity For All Platforms
Communications and Connectivity For All Platforms Broad Portfolio Enables Integration for Cost & Performance Standards & Industry Leadership
Slide 26: Performance & Mid Mobile Platform Portfolio
Performance & Mid Mobile Platform Portfolio Bay Trail Moorefield Cherry Advanced Trail XMM 7260 ramp, Quad Core Quad Core Quad Core XMM 7360 Silvermont Silvermont Airmont Next-Gen: Cat 10, 3 22m 22nm 14nm CA, up to 450 Mbps D/L
Slide 27: Value & Entry Mobile Platform Portfolio
Value & Entry Mobile Platform Portfolio 2015 Bay Trail SoFIA 3G SoFIA3G-R SoFIALTE Entry Quad Core Integrated 3G Integrated 3G Integrated LTE Intel® Atom™ Dual Core Atom™ Quad Core Atom™ Quad Core Atom™ Q4'14 : 1H'15 Starting Mid 2015 Derivative Products & Reselling ao Ge}SPREADTRUM
Slide 28: Our Focused Strategy To Win
Our Focused Strategy To Win Grow IA Mobile Footprint Best Experience on IA Global Leadership In Communications & Connectivity Expanding IP Portfolio to All Intel Platforms Capture and Lead Growing Value and Entry Segment SoFIA, CTE, Partners
Slide 29: Agenda
Agenda Communications Platform & Mobile Technologies The Internet of Things and Connected Embedded Storage and Memory
Slide 30: IoT Platform Strategy
lOT Platform Strategy « Leadership Intel products for connected, intelligent IOT solutions utilizing low power IA investments as well as communications « Combined software and hardware to create solutions approach to the market and enabling selected verticals like Retail, Automotive, etc. (combined
Slide 31: Extending Core IP to New Markets
Extending Core IP to New Markets | Doug Davis _ Vice President, General Manager | Internet of Things Group
Slide 32: Key Messages
Key Messages Big opportunity evolving from a market footprint we've been in for 30+ years. Leading with solutions and technology across Intel. Well positioned with end-end capabilities necessary to deliver the value of the IOT.
Slide 33: The Internet of Things is...
The Internet of Things is... 50B 44 DEVICES” ZETABYTES* Sensors ok cOsTOF DX SENSORS BANDWIDTH PROCESSING PAST 10 YEARS gy PAST 10 YEARS PAST 10 YEARS gy "IDC * IMC/EDC: The Digital Universe of Opportunities * Goldman Sachs cost oF 4OX cost OF §QOX ;
Slide 34: IOTG Market Segment
|OTG Market Segment Internet of Things Group Opportunity Smart Bldg >20% CAGR >30% CAGR >10% CAGR >10% CAGR New lOTG ~40% MSS <10% MSS <10% MSS ~20% MSS Market Sector x 4 Mfg/ Induf Segments” & Smart Home & ndu Retail UGH EU) I Energy Broad Market Buildings cea an Vi ' a7 = oO aby x3 ' —_ Eke uM Tra
Slide 35: IOTG Benefits from Shared IP
lIOTG Benefits from Shared IP Market Opportunity ASP $100-2K+, Avg $450 ASP $30-300, Avg $75 ~100M units ASP $5-30, Avg $15 ~500M units ASP <$10, Avg $1 ~2B units Embedded ASP <$5, Avg $1 <32 bit MCU ~10B units MPU includes MPU, and core based ASSP/ASICS Source: |DC, IHS, Gartner, Intel
Slide 36: Internet of Things Group Revenue/Design Win Mapping
Internet of Things Group Revenue/Design Win Mapping mmRevenue «= Design Win $ Design win momentum continues across all segments 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Forecast “Forecast is based on current expectations and is subject to change without notice
Slide 37: IoT Challenges
lOT Challenges Legend Importance 4.3 to customer —EE 5.0 High 5 3.0 Biggest Gap = Biggest Opportunity Low 1 : = Ease of Sensing Hardware Silicon Performance Use Capability Perfor- Brand of today’s eral mance solutions Differentiation opportunity for horizontal platform Source Bain: Reflects n=37 int
Slide 38: Essential Tenets of Edge to Cloud IoT Solutions
Essential Tenets of Edge to Cloud loT Solutions Monetize HW, SW, and Data Management ee Actionable Analytics = Data Normalization Connectivity, Device Discovery, and Provisioning @) Security as the Foundation - HW and SW
Slide 39: Industry Alignment is Critical
Industry Alignment is Critical \ industrial internet CONSORTIUM lIC Founder Companies CAN@NICAL TOYOTA onenme() v2eom- MOxA [RR OSCH 1D) DATAWaTCH eclipse MITRE ftanindra 9. Gmachineshop ThingWorx © WPGC Deloitte. <wicocie POARns | DPrismrecH —FUSITSU *Other names and brands may be clai EESNokalva r
Slide 40: IOT Delivers Results
IOT Delivers Results Vnomics solution: 6% Di-BOSS (Digital Building NER POS w/ Intel® DPT and Intel’s Assembly / Test vPro for Transactions: Z ae, y 5 . increase in fuel economy Operating System) + Cisco ; sensors and analytics help. =) Reducing fraud through e2e MPA NGLGtiGe, across 100% of fleet =
Slide 41: Solutions for IOT and Developers
Solutions for IOT and Developers = API Management Service = AP| Orchestration (intel) Security® Ma t = Intel Express Gateway & Tokenization WIND Abeer = Intel Security Solutions RIVER MASHERY ile Developer = Wind River Systems Sp lniel Compa we Resources Datacenter Gateways DREN scare pened * Intel
Slide 42: Summary
Summary Big opportunity evolving from a market footprint we've been in for 30+ years. Leading with solutions and technology across Intel. Well positioned with end-end capabilities necessary to deliver the value of the IOT.
Slide 43: Memory as Platform
Memory as Platform = As computing architectures continue to scale, memory continues to be a critical piece of the platform architecture, especially in the datacenter — Intel continues to drive innovation in memory technology = Solid-state drives are only at the beginning of the adoption curve provid
Slide 44: CPU and Data: Better Together
CPU and Data: Better Together Rob Crooke Vice President, General Manager Non-Volatile Memory Solutions Group
Slide 45: Key Messages
Key Messages Sustained innovation has delivered profitable growth Key IT challenges can be addressed with CPU + storage together Computing insight and platform optimization are a unique advantage Our Strategy: Technology Driven. Customer Inspired. Platform Connected.
Slide 46: Data wants to be alive
a Data wants to be alle) ae keeps t
Slide 47: Performance: The Increasing Gap
Performance The Increasing Gap 2005 2007 2009 2011 2013 Memory & storage critical to scaling computing Increasing Gap
Slide 48: Intel Solid-State Drive a Multi-Decade Journey
Intel® Solid-State Drive a Multi-Decade Journey 12MB
Slide 49: Technology Leadership Through the Years
Technology Leadership Through the Years © intel/Micron Market @ Mare * 15 3D NAND * Tech Insights Best Flash Technology * aime with Disruptive Cost a 1% Cell w/ Hi-K Metal Gate, * 1% to 2Xnm 13*128Gb 1% Integration (20nm) 3D NAND of Word Line Airgap 128Gb & (25nm) | 1 eee Word Line Airgap . . Integr
Slide 50: Performance: SSDs address the performance gap
Performance The Increasing Gap 2005 2007 2009 2011 2013 SSDs address the performance gap Increasing Gap
Slide 51: Intel Creates an Industry
Intel Creates an Industry Industry Computing SSD Revenue §$ Billions 2009 2010 2011 2012 2013 2014 Source: Forward Insights October ‘14,
Slide 52: The SSD Difference — Accelerating Big Data
The SSD Difference — Accelerating Big Data &+*% 4x 3x 2x 1X Performance Improvement HDD PCle SSD s and brands may be c d as the property of others, Intel SSDs improve Hadoop performance by over 3x
Slide 53: Innovation and SSD Disruption
Innovation and SSD Disruption SSD: 4 inches of storage HDD: 500 feet of storage Performance: 11M I/O per sec Performance: 11M 1/O per sec Bringing data closer: same performance, smaller footprint
Slide 54: Slide 54
Slide 55: Platform Optimization Delivers Enhanced Capability
Platform Optimization Delivers Enhanced Capability Platform Validated Solutions > mc (a scene = = r * Intel® vPro™ Intel® SSD Professional Family Intel® Security : a a “ Improve Security UX Plug known security gaps No compromise in Solve iT pain points security/performance
Slide 56: Data Center Leadership
50% 40% 30% 20% 10% 0% Data Center Leadership Q2 2014 Data Center Market Segment Share: IDC Intel + WD SanDisk Fusion lO Samsung Source: IDC, Worldwide Solid State Drive Quarterly Update: 2Q14, doc #251237, September 2014,
Slide 57: NAND Leadership
NAND Leadership Estimates are based on internal Intel and market based analysis, and provided to you for informational purposes and are subject to change.
Slide 58: Tremendous Opportunity
Tremendous Opportunity Innovators Early Early Late Laggards 2.5% Adopters — Majority Majority 16% 13.5% 34% 34% Sources: Intel internal research, and Geoffrey Moore, Crossing the Chasm. 100 50 % UO!JEIBUa JaHIE|
Slide 59: Growing Revenue in Compute NVM
Growing Revenue in Compute NVM Intel NAND Revenue and SSD Revenue Revenue $ 2014 Est. Source: internal Intel estimates. 2009 2010 2011 2012 2013
Slide 60: Compute Data: A Growth Opportunity
Compute Data: A Growth Opportunity Technology Driven. Customer Inspired. Platform Connected.
Slide 61: Investor Meeting 2014 Q&A
Slide 62: Legal Disclaimers
Legal Disclaimers Software and workloads used in performance tests may have been optimized for erformance only on Intel microprocessors. Performance tests, such as SYSmark and obileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any o
Slide 63: Risk Factors
Risk Factors The statements in the presentations and other commentary that refer to plans and expectations for the fourth quarter, the year and the future are forward-looking statements that involve a number of risks and uncertainties. Words such as “anticipates,” “expects,” “intends,” “plans,” “bel