Slide 1: 3rd Quarter Earnings Presentation
‘i 3rd Quarter Earnings Presentation Pat Gelsinger David Zinsner Chief Executive Officer Executive Vice President and Chief Financial Officer
Slide 2: 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, and earings per share, including year-over-year comparisons, are presented on anon-GAAP basis. This presentation also includes a non-GAAP adjusted free cash flow (
Slide 3: Executive Summary
Executive Summary Q3 beat on Revenue, Gross Margin and EPS Strong sequential revenue growth in client, edge, foundry; server revenue up QoQ Operating leverage and expense discipline driving improved profitability Re-establishing technology leadership SN4Y nearing completion; 0.9 PDK on Intel 18A; wa
Slide 4: Driving Our Transformation
Driving Our Transformation (Cloud & Enterprise Value Unlock Mobileye, IMS, PSG intel. 4
Slide 5: Q3 Financial Highlights
Q3 Financial Highlights $14.2B 45.8% $0.41 Revenue Gross Margin ERS Down 8% YoY Flat YoY Up 11% YoY $0.8B above July outlook! 2.8 ppt above July outlook! $0.21 above July outlook! 1 Comparisons are based on the mid-point of revenue outlook intel. 5
Slide 6: Client Computing Group (CCG)
Client Computing Group (CCG) Revenue down 3% Operating Income up 43% Revenue * Lower on overall TAM, partially offset by stabilizing OEM inventory $8.1B $7.9B Operating Income * Higher on reduced inventory reserves and spending discipline Q3'22 Q3'23 Q3'22 Q3'23 intel. «
Slide 7: Data Center and AI Group (DCAI)
Data Center and Al Group (DCAI) Revenue down 10% Operating Income up 151% Revenue + Lower on reduced CPU TAM and competitive pressure $4.3B $3.8B Operating Income * Higher on spending discipline and lower start-up costs Q3'22
Slide 8: Revenue down 32% Operating Income down 91%
Revenue down 32% Operating Income down 91% Revenue * Lower on TAM softness and elevated customer inventories $2.1B Operating Income * Lower on reduced revenue, partially offset by expense discipline Qs'22 Q3'23 Q3'22 Q323 intel. s
Slide 9: Intel Foundry Services (IFS) and Mobileye
Intel Foundry Services (IFS) Revenue Operating Income $3mIM on )0 0s + Revenue up 299% YoY on higher packaging and IMS tool sales + Operating loss improved on higher revenue, partially offset by increased investment to support long-term growth Mobileye Revenue Operating Income Operating Operating Ma
Slide 10: Outlook
Outlook intel. 10
Slide 11: Q4 2023 Outlook
O04 2023 Outlook S14.6-15.6B8 46.5% S0.44 Revenue Gross Margin! EPS! Up 8% YoY! Up 2.7 ppt YoY Up 193% YoY 1 Revenue growth comparison, gross margin outlook and EPS outlook based on the mid-point of the revenue range intel. 0
Slide 12: Appendix
Appendix
Slide 13: Reconciliation of Non-GAAP Actuals
Reconciliation of Non-GAAP Actuals ‘Three Months Ended Sep 30,2023 Oct, 2022 GAAP gross margin percentage 425% 426% Acquisition-related adjustments 21% 2.2% Share-based compensation 12% 1% Non-GAAP gross margin percentage 458% 459% GAAP eamings (loss) per share attributable to Intel—diluted $0.07 $0
Slide 14: Reconciliation of Non-GAAP Outlook
Reconciliation of Non-GAAP 04 Outlook Q4.2023 Outlook! Q4.2022 Actuals Approximately GAAP gross margin percentage 433% 39.2% Acquisition-related adjustments 2.0% 23% Share-based compensation 12% 1% Optane inventory impairment - 1.2% Non-GAAP gross margin percentage 465% 438% ‘GAAP eamings (Joss) per
Slide 15: intel.
intel.