Advanced Micro Devices Inc · NASDAQ:AMD
Advanced Micro Devices — Non-Deal Roadshow (October 2008)
25 slides from Advanced Micro Devices's roadshow presentation, Oct 7, 2008
Slide 1: AMD Investor Roadshow
Exhibit 99.1 AMD Investor Roadshow Introducing The Foundry Company and The New ‘Asset Smart’ AMD Dirk Meyer, President and CEO Bob Rivet, Executive Vice President and CFO October 7, 2008
Slide 2: Forward Looking Disclaimer
Forward Looking Disclaimer This document contains forward-looking statements, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on risks and uncertainties that could cause actual results to d
Slide 3: Introduction
Introduction Creating a global, leading-edge foundry with world-class, committed partners Unlocking the value of AMD’s manufacturing talent and assets Strengthening AMD balance sheet Reducing AMD capital investment requirements AMD securing guaranteed access to the most advanced, leading-edge capaci
Slide 4: What We Are Announcing
What We Are Announcing AMD and ATIC agreed to form a world-class joint venture to unlock the value of AMD’s manufacturing expertise and create an independent, global leading-edge semiconductor manufacturing company Introducing “The Foundry Company” ATIC’s long-term vision and ”patient capital” AMD’s
Slide 5: Overview of ATIC
Overview of ATIC The Advanced Technology Investment Company (ATIC) – a technology investment company wholly owned by the Government of Abu Dhabi ATIC was founded in 2008 ATIC will hold and manage the stake in The Foundry ATIC seeks to identify and Company realize long-term investment ATIC will enter
Slide 6: A Large and Timely Growth Opportunity
A Large and Timely Growth Opportunity Global demand is growing for contract semiconductor manufacturing - particularly leading-edge, independent foundry services Global semiconductor sales set to grow from $277B in 2008 to $321B in 2010(1) The Foundry Company is uniquely Rapidly rising cost and comp
Slide 7: Creating A Global Leader in the Foundry Business
Creating A Global Leader in the Foundry Business The Foundry Company will be a ‘new global enterprise’ combining talent and resources from around the world to serve a growing global demand for leading-edge foundry services. Deep partnership with IBM Technology Leadership Aggressive 32/22/15 nm roadm
Slide 8: Introducing 'The Foundry Company'
Introducing ‘The Foundry Company’ A world-class joint venture with ATIC unlocking the value of AMD’s manufacturing expertise and creating an independent, global, leading-edge semiconductor manufacturing company Established history of manufacturing excellence under AMD Scale and access to capital to
Slide 9: AMD, the Next Stage, Positioned For Success
AMD, the Next Stage, Positioned For Success Strategic commitment from Mubadala Asset Smart Asset Smart The Foundry Company plans multi-billion dollar build-out of leading Manufacturing Manufacturing edge fabs in Dresden and Upstate New York Strategy Strategy Expanded IBM partnership delivering leadi
Slide 10: Mubadala Increasing its Stake in AMD
Mubadala Increasing its Stake in AMD Mubadala Development Company is a development and investment company, owned by the government of Abu Dhabi, with a global focus on commercial activities that achieve economic returns while advancing economic diversification Manages a multi-billion dollar global p
Slide 11: Summary Transaction Mechanics
Summary Transaction Mechanics Transaction Mechanics Pro-Forma Structure $0.3B 19.3% (1) 107M shares (including 49M cash from 11/07 investment) and 30M warrants (2) $2.4B of The Foundry $2.4B fab Company assets and Equity(4) ~$1.2B (5) debt The Foundry Company (1) Represents 19.3% of fully diluted ba
Slide 12: Transaction Summary
Transaction Summary AMD will transfer people, manufacturing assets, Fab36 debt and some intellectual property The ATIC to invest $2.1B in capital: Foundry - $1.4B to The Foundry Company Company - $0.7B to AMD - ATIC will hold convertible notes in The Foundry Company The joint venture will be owned o
Slide 13: Positive Impact to AMD
Positive Impact to AMD (1) Cash ~$1.0B new cash Gross Reflective of asset smart investment Margin business model Assumption of $1.2B(2) debt Operating Reduction of process R&D Debt by The Foundry Company Expenses Decreased G&A Capital Fab capital expenditures Operating Higher COGS offset by lower Ex
Slide 14: Improvements in Pro Forma Capitalization
Improvements in Pro Forma Capitalization For financial reporting purposes The Foundry Company will be consolidated with AMD 6/28/2008 6/28/2008 6/28/2008 6/28/2008 AMD The Foundry AMD AMD Pro Forma Company Pro Forma ($ Billions) As Reported Unconsolidated Pro Forma Consolidated Total Cash $1.6 $2.5
Slide 15: Transaction Close
Transaction Close Transaction close expected in the beginning of 2009 and is dependent on: Transfer of previously confirmed New York incentives to The Foundry Company for the creation of a state-of-the-art manufacturing facility in Upstate New York Assumption of Dresden debt by The Foundry Company C
Slide 16: Summary
Summary A world-class deal with world-class committed partners Unlocking the value of AMD’s manufacturing talent and assets Strengthening AMD balance sheet Reducing AMD capital investment requirements AMD securing guaranteed access to the most advanced, leading-edge capacity Committed future equity
Slide 17: Trademark Attribution
* * * * * * * * * * * * * * Trademark Attribution AMD, the AMD Arrow logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States and/or other jurisdictions. Other names used in this presentation are for identification purposes only and may be trademarks of their
Slide 18: Back-up
* * * Back-up 18 | Investor Roadshow | October 7, 2008
Slide 19: AMD's Accounting Post Transaction Close
AMD’s Accounting Post Transaction Close Upon transaction close, AMD will be required to consolidate The Foundry Company’s financials under U.S. GAAP accounting rules AMD’s consolidated U.S. GAAP EPS will be impacted by three factors: - Inclusion of The Foundry Company’s U.S. GAAP financial results -
Slide 20: Calculation of Class B Dividend Related Adjustments
Calculation of Class B Dividend Related Adjustments ATIC equity investment in The Foundry Company: 20% Class A Preferred shares, 80% Class B Preferred shares, One Class A ordinary share AMD equity investment in The Foundry Company: 100% Class A Preferred shares, One Class A ordinary share The Foundr
Slide 21: AMD's EPS Post The Foundry Company's Transaction Close
AMD’s EPS Post The Foundry Company’s Transaction Close AMD Net Income (Loss) Plus: The Foundry Company Net Income (Loss) Adjust: Inter-company elimination Consolidated GAAP Net Income (Loss) Subtraction of Less/More: 17% of The Foundry Company Net Income minority interest allocated to ATIC (1) Less:
Slide 22: Appendix A: Reconciliation of As Reported balances to pro forma
Appendix A: Reconciliation of As Reported balances to AMD pro forma unconsolidated, The Foundry Company pro forma standalone and AMD pro forma consolidated Slide 13: Improvements in Pro Forma Capitalization Total Cash ($ Billions) As Reported (US GAAP) 1.6 Add: Cash received from ATIC for the Foundr
Slide 23: Appendix B: Reconciliation of As Reported balances to pro forma
Appendix B: Reconciliation of As Reported balances to AMD pro forma unconsolidated, The Foundry Company pro forma standalone and AMD pro forma consolidated Slide 13: Improvements in Pro Forma Capitalization Debt ($ Billions) As Reported (US GAAP) 5.3 Add: Minority Interest 0.2 Total Debt and Minorit
Slide 24: Additional Information and Where You Can Find it
Additional Information and Where You Can Find it AMD will file a proxy statement pursuant to which AMD’s board of directors will solicit proxies in connection with seeking AMD stockholder approval of the issuance of AMD shares and warrants pursuant to the Master Transaction Agreement with the Securi
Slide 25: Trademark Attribution
* * * * * * * * * * * * * * Trademark Attribution AMD, the AMD Arrow logo and combinations thereof are trademarks of Advanced Micro Devices, Inc. in the United States and/or other jurisdictions. Other names used in this presentation are for identification purposes only and may be trademarks of their
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