Advanced Micro Devices Inc · NASDAQ:AMD
Advanced Micro Devices — Investor Day (May 2015)
26 slides from Advanced Micro Devices's investor day presentation, May 6, 2015
Slide 1: 2015 Financial Analyst Day
2015 FINANCIAL ANALYST DAY LISA SU, PRESIDENT AND CEO
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (“AMD” or the “Company”) including, AMD’s 2015 expectations; AMD’s game plan for 2015-2018; AMD’s ability to participate in intelligent controllers, infrastructure and cloud/datacenter
Slide 3: Today's Discussion
TODAY’S DISCUSSION Progress to Date Market Opportunities Sharpening AMD’s Focus Technology Innovation Execution Priorities 3 | 2015 FINANCIAL ANALYST DAY | MAY 6, 2015
Slide 4: Built on a Foundation Spanning Innovation and Leadership
BUILT ON A FOUNDATION SPANNING INNOVATION AND LEADERSHIP HERITAGE SPANNING OVER 45 YEARS First proprietary device: World’s first First to break Brings World’s Inside every major Am2501 logic counter x86-64 bit teraflop first APUs to next generation introduced architecture performance barrier market
Slide 5: Transitioned Focus
TRANSITIONED FOCUS Enterprise, Embedded and Semi-Custom segment revenue Computing and Graphics segment revenue DIVERSIFYING REVENUE BASE AND GROWING IN NEW MARKETS 5 | 2015 FINANCIAL ANALYST DAY | MAY 6, 2015
Slide 6: Current Assessment
CURRENT ASSESSMENT RECENT CHALLENGES HIGHLIGHTS Weak PC market Grew in new markets Channel inventory – EESC annual revenue $2B+ Market share losses Gained share in profitable areas – Commercial PCs, OEM Graphics, Gaming, Professional – Consumer PCs, Desktop Graphics and Server Graphics and
Slide 7: 2015 Expectations
2015 EXPECTATIONS 1H15 2H15 Weak PC market Seasonal improvement BUSINESS Channel inventory in PCs/game consoles re-balancing Windows 10 demand DRIVERS catalyst Legacy New product products ramps PROFITABILITY* LOSS PROFITABLE CASH ~$800M ~$800M - $1B 7 | 2015 FINANCIAL ANALYST DAY | MAY 6
Slide 8: Our Game Plan
OUR GAME PLAN 2017/2018 Server/Infrastructure Market Share Gains 2016 Margin Expansion Gain Profitable Graphics, PC, Improved Profitability and and Embedded Market Share Cash Generation* 2015 New Semi-Custom Products PC Market Stabilization Ramp Consistent Profitability* Prioritize I
Slide 9: 50B Devices: From an Internet of Things to Immersive Platforms
FROM AN INTERNET OF THINGS TO IMMERSIVE PLATFORMS ENDPOINTS INFRASTRUCTURE CLOUD/DATACENTER Sensor and Compute-Driven Data Data Transmission Store/Analyze Data Collection and Data Interaction and Serve Information 50B DEVICES By 2020 Networking/ Telecom 9 | 2015 FINANCIAL ANALYST DAY | MAY 6, 2015 S
Slide 10: 50B Devices: From an Internet of Things to Immersive Platforms
FROM AN INTERNET OF THINGS TO IMMERSIVE PLATFORMS INTELLIGENT CONTROLLERS INFRASTRUCTURE CLOUD/DATACENTER AND IMMERSIVE DEVICES Compute-Driven Data Collection Data Transmission Store/Analyze Data and Data Interaction and Serve Information 50B ENDPOINTS DEVICES Sensor-Driven Data Collection By 2020 N
Slide 11: Where AMD Will Play: $60B+ TAM
FROM AN INTERNET OF THINGS TO IMMERSIVE PLATFORMS INTELLIGENT CONTROLLERS INFRASTRUCTURE CLOUD/DATACENTER AND IMMERSIVE DEVICES Compute-Driven Data Collection Data Transmission Store/Analyze Data and Data Interaction and Serve Information 50B ENDPOINTS DEVICES Sensor-Driven Data Collection By 2020 N
Slide 12: Portfolio Decisions
PORTFOLIO DECISIONS WHERE WE WILL FURTHER INVEST WHERE WE WILL NOT INVEST Gaming IoT Endpoints MARKETS Immersive Platforms Low-End Tablets/Mobile Datacenter/Infrastructure Smartphones High-Performance Cores Customized Process Technology TECHNOLOGY Immersive Technologies Commodity
Slide 13: Growth Opportunities: Growing Beyond the Traditional PC
GROWTH OPPORTUNITIES: GROWING BEYOND THE TRADITIONAL PC GAMING IMMERSIVE PLATFORMS DATACENTER NEW LEVELS OF REALITY INTELLIGENT AND INFRASTRUCTURE FOR THE INTERACTIVE EXPERIENCES NEXT WAVE 13 | 2015 FINANCIAL ANALYST DAY | MAY 6, 2015
Slide 14: Gaming
GAMING Visualization requirements increasing exponentially AMD Gaming leadership from casinos to consoles to PCs Virtual Reality a key driver for future platforms AMD Technology Enablers: – High-Performance CPUs, Graphics, Software APIs – Semi-Custom business model AMD Business: – Annual r
Slide 15: Immersive Platforms
IMMERSIVE PLATFORMS Fast growing segment of IoT Connected Devices New user interfaces and experiences enabled with VR/AR – the importance of “Presence” Broad set of applications in traditional and new areas AMD Technology Enablers: – High-performance x86 and ARM CPUs, Graphics & Visualizatio
Slide 16: Datacenter
DATACENTER Explosive data growth with IoT and immersive content Software defined everything disrupting the datacenter AMD history of innovation and success: x86 64-bit, multicore, silicon virtualization AMD Technology Enablers: – High-performance x86 and ARM CPUs, GPU compute, Security, Ente
Slide 17: Where Do We Play
WHERE DO WE PLAY GAMING IMMERSIVE PLATFORMS DATACENTER PC Platforms PC Platforms Workstation Graphics COMPUTING AND Consumer Graphics Consumer Graphics GRAPHICS Virtual Reality Game Consoles Augmented Reality Servers ENTERPRISE, Casino Gaming Digital Signage Networking & Comms EMBEDDED AND SEMI-CUST
Slide 18: Where Do We Play: #1 Share Position
WHERE DO WE PLAY #1 SHARE POSITION GAMING IMMERSIVE PLATFORMS DATACENTER PC Platforms PC Platforms Workstation Graphics COMPUTING AND Consumer Graphics Consumer Graphics GRAPHICS Virtual Reality Game Consoles Augmented Reality Servers ENTERPRISE, Casino Gaming Digital Signage Networking & Comms EMBE
Slide 19: Where Do We Play: Near-Term Share Growth
WHERE DO WE PLAY NEAR-TERM SHARE GROWTH OPPORTUNITY GAMING IMMERSIVE PLATFORMS DATACENTER PC Platforms PC Platforms Workstation Graphics COMPUTING AND Consumer Graphics Consumer Graphics GRAPHICS Virtual Reality Game Consoles Augmented Reality Servers ENTERPRISE, Casino Gaming Digital Signage Networ
Slide 20: Where Do We Play: Medium-Term Share Growth
WHERE DO WE PLAY MEDIUM-TERM SHARE GROWTH OPPORTUNITY GAMING IMMERSIVE PLATFORMS DATACENTER PC Platforms PC Platforms Workstation Graphics COMPUTING AND Consumer Graphics Consumer Graphics GRAPHICS Virtual Reality Game Consoles Augmented Reality Servers ENTERPRISE, Casino Gaming Digital Signage Netw
Slide 21: How Do We Win – Big Technology Investments
HOW DO WE WIN – BIG TECHNOLOGY INVESTMENTS CPU TECHNOLOGY GRAPHICS TECHNOLOGY PLATFORM SOLUTIONS New generation x86 and Performance/Watt leadership Modular design ARM cores Unique Virtual Reality features Open software investments High performance, power Leadership API performance Ex
Slide 22: Market Share Drivers
MARKET SHARE DRIVERS 2017/2018 Strong Datacenter Portfolio 2016 Additional Semi-Custom Design Wins Ramp Semi-Custom and Embedded Multi-Generation Roadmap Products Ramp Investments Deployed Graphics and Commercial 2015 Client Growth New High Performance CPUs 2H15 Product Ramps Seasona
Slide 23: Long-Term Target Model – Profitable Growth
LONG-TERM TARGET MODEL – PROFITABLE GROWTH Enterprise, Embedded and Semi-Custom segment revenue Computing and Graphics segment revenue 23 | 2015 FINANCIAL ANALYST DAY | MAY 6, 2015
Slide 24: Our Team's Mission
OUR TEAM’S MISSION 24 | 2015 FINANCIAL ANALYST DAY | MAY 6, 2015
Slide 25: Key Takeaways
KEY TAKEAWAYS Significant Market Opportunities Prioritized Technology Investments Roadmap for Profitable and Sustained Growth 25 | 2015 FINANCIAL ANALYST DAY | MAY 6, 2015
Slide 26: Disclaimer & Attribution
DISCLAIMER & ATTRIBUTION The information presented in this document is for informational purposes only and may contain technical inaccuracies, omissions and typographical errors. The information contained herein is subject to change and may be rendered inaccurate for many reasons, including but not