Please see corresponding attached PDF.
INVESTOR MEETING 2014 SANTA CLARA NOVEMBER 20
Renée James President
Intel Growth & Technology Investments Utilizing Intel IP in adjacent segments of computing & enabling new businessesInvest in Intel platform value to maintain differentiation & leadershipExtend the Intel Architecture into emerging and growth segments of computing & devices PC Core: Haswell GT3e Server Core: Intel® Xeon® E5-2600 V3 Tablet Core: BayTrail DRAM PCH EC USB Clock Display Audio Core Cache(SRAM) Core Core Cache(SRAM) Core QPI, Uncore, I/O Memory Controller GenXGPU EmbeddedDRAM WiFi GenXGPU Core Cache (SRAM) Memory Controller SA, I/O,Etc. EmbeddedDRAM Co-packaged DRAM PCH EC USB Clock Display Audio WiFi BT WWAN I/O CoreClock & Misc I/O GenX GPU Memory Controller Core incl.Cache I/O I/O USB Security Display Audio Camera DRAM WiFi BT WWAN BT WWAN BT WWAN
Key Areas of Strategic Platform Investments Mobile & Communications: Computing and devices will all be connected as will IOT. Key area of platform investment for communications as well as growing Mobile Intel Architecture footprint in tablets and phones Internet-of-Things: Connected and intelligent embedded represents a growth business opportunity extending from a strong base of IA architecture into new segments and emerging IOT businesses Wearables: Inspiring the next generation of connected devices to develop and emerge on Intel Architecture Security & Privacy: Central to the cloud and network computing platforms. Accelerated and made more secure with the Intel Architecture extensions to our platforms and a growing business opportunity Storage & Memory: Growing portion of the balanced computing system and overall platform representing another growth opportunity for Intel
Communications Platform & Mobile Technologies Today’s Detailed Discussions The Internet of Things and Connected Embedded Storage and Memory
Communications Platform & Mobile Technologies Agenda The Internet of Things and Connected Embedded Storage and Memory
Mobile and Communications Platform Strategy Leadership communications and connectivity development scaling across multiple segments:IOT, Tablet, PC, Datacenter and PhoneCommunications including WiFi and Cellular ,BT, BLE, NFC , etc,Mobile platform investments lead innovation in low power and integration for all platforms Mobile platform designs lead Intel in new development methodology for faster derivatives and partner platform expansion Intel Confidential - Internal Use Only Investing for leadership in multi-comms and mobility
Intel’s Strategic Investment in Mobile & Comms Hermann EulVice President, General ManagerMobile and Communications Group
Mobile Market Trends Smart Mobile Devices~15% Growth Total Smart Mobile Devices (Mu) LTE Grows ~60%Low-End 200% Smart Mobile Device - LTE Mix (%) 60% Growth in Phablets ≥5.5” Cellular Smart Mobile Devices (Mu) Low-End Growing 5x Faster Total Smart Mobile Devices (Mu) Source: Intel internal estimates Forecast is based on current expectations and is subject to change without notice
Our Focused Strategy to Win in 2014 Grow IA Mobile Footprint Tablets, Cost Reduce, Differentiate Global Leadership In Communications & ConnectivityFull IP Portfolio that Benefits All Intel Platforms Capture and Lead Growing Value and Entry SegmentLeadership Products, CTE, Partners
40M Tablet Volume On Track#1 Merchant Tablet Supplier, #2 Tablet Supplier Overall* Mobile Strategy is Paying OffApplication Processors, Communications & Connectivity Solutions Delivered World Class Advanced LTEGlobally Competitive, Accelerated Rate of New Product Development First Integrated IA + Comms (SoFIA) On TrackSoFIA for the High Growth Value and Entry Market Source: Strategy Analytics
40M Tablets Long Term Customer Partnerships ~20% WWAN Connected ~100 OEM ~350 ODM Designsin Market or Coming to Market Channel & Marketing Campaigns Platform & eBOM Cost Reduction Other brands and names may be claimed as the property of others. Source: intel Internal
Showcase Designs Thinnest Tablet,Immersive Visuals Great for Education and Kids Innovative Designs: Sleek, Unique and 2 in 1s FUHU DreamTab Dell Venue 8 withIntel® Realsense™ Snapshot Lenovo Yoga 2 Pro Tablet Other brands and names may be claimed as the property of others.
Turnkey Program for OEM/ODM’s Master Reference Design Tools & Support and Channel Match-making >350 Global Designs >30 ODM, PCBA Partners 45% of Intel Powered Tablets Sold In ’14* Source: Intel internal estimates
Performance & Experience Matters At All Price Points Intel Inside Delivers A Better User Experience Web BrowsingLoading your web content Create & Edit ContentEdit pictures and videos 53% Up to Faster(1) 1) As measured by web page content load test 150% Up to Better(2) 2) As measured by MobileXPRT* 2013 Performance Score Online ActivitiesStock Dashboard Updates 200% Up to Faster(3) 3) As measured “Stocks Dashboard” subtest of WebXPRT* 2013 Device Configurations: (1) ASUS* MeMO Pad 8 (ME581C): Intel® Atom™ Processor Z3580 (4T4C Silvermont, up to 2.33GHz), PowerVR G6430 Graphics, 2GB RAM, 32GB storage, 8” screen with 1920x1200 resolution, Android* 4.4.2(2) Cube* Talk 9X*: MediaTek* MT8392 (8C8T Cortex*-A7, 2.0GHz), ARM* Mali-450MP4 Graphics, 2GB RAM, 32GB storage, 9.7” screen with 2048x1536 resolution, Android* 4.2.2 On Intel® Atom™ Processor Z3580 vs. Octa-core MediaTek* MT8392 On Intel® Atom™ Processor Z3580 vs. Octa-core MediaTek* MT8392 On Intel® Atom™ Processor Z3580 vs. Octa-core MediaTek* MT8392
Applications Run Great On IntelWindows & Android Android Apps“Just Work” Top Apps Native Full Developer Support Top 2K Applications > Performance Better Performance vs. Competitive Platforms SDKs & ToolsWindows & Android -
Intel and Android Momentum Intel Reference Design for Android Shipments on Android (Mu) Intel Inside Android TV Nexus Player Expanding Our Mobile Platform Scale More Android Devices for Value Segment Steady Increase of Android Shipments on IA
New Products & Partners SoFIA Smartphones New Family ofAsus Smartphones ASUSMeMo Pad 7 ASUSPadFone X mini ASUSFonepad 7 ME372CL Other brands and names may be claimed as the property of others. Communications for Smartphones Intel LTE AdvancedSamsung GalaxyNote 4 & AlphaLG G3
> 25 Designs In MarketIntel® XMM™ 7160 and 7260 ModulesTablets, 2 in 1s & Ultrabooks™ LTE Ramp Shipping Today with Carriers in U.S., Latin America, Europe, SE Asia LTE Advanced LaunchGlobal 5 ModeIntel® XMM™ 726x
Solid Foundation to Fuel Growth Strong Partners Design Pipeline Ecosystem Products
2015: Focused Expansion
SoFIA Family On Track for 2015 RampFirst Integrated Intel Architecture & Intel Communications Solutions Cost Optimized for Value & Entry SoFIA 3G SoFIA 3G-R SoFIA LTE Single Platform PhabletsTablets Phones Scale Partners
Complete IP Portfolio Communications and Connectivity AdvantageKey for Platform & Industry Innovation 4G3G2G GNSS FM Radio Integrated Modules Discrete 2015 Platforms SoFIA Cherry TrailBroadwell LTE
Communications and Connectivity For All PlatformsBroad Portfolio Enables Integration for Cost & Performance Standards & Industry Leadership
Performance & Mid Mobile Platform Portfolio LTE Advanced MoorefieldQuad Core H2’14 H1’14 Bay TrailQuad Core H2’13 Cherry TrailQuad Core EOY ’14 BroxtonQuad Core 2015 2016 SoFIA MIDQuad Core 2015 LTE AdvancedXMM 7260 ramp, XMM 7360 Next-Gen: Cat 10, 3 CA, up to 450 Mbps D/L Bay TrailQuad CoreSilvermont22m MoorefieldQuad CoreSilvermont22nm Cherry TrailQuad CoreAirmont 14nm BroxtonPerformanceQuad CoreGoldmont14nm SoFIA MID 2016 Quad CoreLTE14nm, Intel Mfg
Value & EntryMobile Platform Portfolio LTE Advanced MoorefieldQuad Core H2’14 H1’14 Bay TrailQuad Core H2’13 Cherry TrailQuad Core EOY ’14 BroxtonQuad Core 2015 2016 SoFIA MIDQuad Core 2015 Bay TrailEntryQuad Core Intel® Atom™ SoFIA 3GIntegrated 3GDual Core Atom™Q4’14 SoFIA 3G-RIntegrated 3G Quad Core Atom™1H’15 SoFIA LTE Integrated LTE Quad Core Atom™Starting Mid 2015 SoFIA LTE 2 Quad Core14nm, Intel Mfg 2016 Derivative Products & Reselling
Our Focused Strategy To Win Grow IA Mobile Footprint Best Experience on IA Global Leadership In Communications & ConnectivityExpanding IP Portfolio to All Intel Platforms Capture and Lead Growing Value and Entry SegmentSoFIA, CTE, Partners
Communications Platform & Mobile Technologies Agenda The Internet of Things and Connected Embedded Storage and Memory
IOT 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 WindRiver into IOT group)Deep knowledge and experience with design and life cycles of embedded devices and markets provides leadership opportunity Provides current and future adjacent growth opportunity, utilizing assets of other communication and mobile investments
Extending Core IP to New Markets Doug DavisVice President, General ManagerInternet of Things Group
Big opportunity evolving from a market footprint we’ve been in for 30+ years. Key Messages Well positioned with end-end capabilities necessary to deliver the value of the IOT. Leading with solutions and technology across Intel.
The Internet of Things is… Mobile Home/ Industrial Sensors Network DC/Cloud Gateway *** Goldman Sachs 44ZETABYTES** * ** IMC/EDC: The Digital Universe of Opportunities * IDC *** COST OF SENSORS 2X PAST 10 YEARS COST OF BANDWIDTH 40X PAST 10 YEARS COST OF PROCESSING 60X PAST 10 YEARS
Internet of Things Group BldgAutomation Smart Home &Buildings Quark Retail Visual Retail Transactional Retail >20% CAGR~40% MSS Transportation Autonomous Vehicles Software Defined Cockpit >30% CAGR<10% MSS Mfg/ Indu/ Energy Energy Smart Mfg >10% CAGR<10% MSS Segments* & Broad Market DSS Gaming Health MAG Print Imaging >10% CAGR~20% MSS CAGR is ’09-13 SOM revenue; MSS is calculated with silicon revenue SAM; SAM is 32bit+ MPU/ASSP/ASIC with non-focused MPU/ASSP/ASIC devices removed; based on IDC 2013 eMPU report . Includes other embedded vertical investments.* 2014 Intel forecast $2.1B in 2014*IOTG ~17% MSS18% YoY growth IOTG Market Segment Opportunity ‘15 SAM = $11-$13B* New IOTG Market Sector
IOTG Benefits from Shared IP Source: IDC, IHS, Gartner, Intel Hi PerfMPU ASP $100-2K+, Avg $450~1M units Mid PerfMPU ASP $30-300, Avg $75~100M units Entry Perf32+ bit MPU ASP $5-30, Avg $15~500M units Embedded 32+ bit MCU Embedded <32 bit MCU ASP <$10, Avg $1~2B units ASP <$5, Avg $1~10B units Market Opportunity XeonCorePentiumCeleronAtomQuark MPU includes MPU, and core based ASSP/ASICs Quark TAM SAM
Design win momentum continues across all segments Performance Internet of Things Group *Forecast is based on current expectations and is subject to change without noticeSource: Intel Forecast
IOT Challenges Source Bain: Reflects n=37 interviews with tier 1 leaders in Smart Factory, Smart Building, Smart Fleet, Smart Grid Substation and Smart City Environmental Sensing domains
Essential Tenets of Edge to Cloud IoT Solutions Connectivity, Device Discovery, and Provisioning Monetize HW, SW, and Data Management Actionable Analytics Security as the Foundation - HW and SW Data Normalization
IIC Founder Companies OIC Board of Directors Industry Alignment is Critical *Other names and brands may be claimed as the property of others
IOT Delivers Results Measured Benefits: $9M/ year Intel’s Assembly / Test – sensors and analytics help maintain productivity. Potential US Benefits: 100M credit card numbers stolen in 2013 NCR POS w/ Intel® DPT and vPro for Transactions: Reducing fraud through e2e encryption. Potential US Benefits: 38 Million Tons of CO2 Vnomics solution: 6% increase in fuel economy across 100% of fleet = $15M / Year Saved $1M in 1 Building / Year $.50/sq ft. Di-BOSS (Digital Building Operating System) + Cisco Energy Management: Electrical, Steam and Water Saved $1M in 1 Building / Year $.50/sq ft. Di-BOSS (Digital Building Operating System) + Cisco Energy Management: Electrical, Steam and Water
Network ServiceManagement Developer Resources Optimized onIntel Architecture Things Gateways Datacenter Solutions for IOT and Developers Personal devices incl wearablesCars, Home automationManufacturing equip Home: Puma GatewayIndustrial: Moon Island Gateway SDN: Software Defined NetworksONP: Open Networking PlatformNFV: Network Function Virtualization Intel Data Center ManagerIntel Data PlatformSoftware Defined Infrastructure … … API ManagementAPI OrchestrationIntel Express Gateway & TokenizationIntel Security SolutionsWind River Systems Comms: 3G, LTE, Wifi, Bluetooth, NFC, GPS…
Big opportunity evolving from a market footprint we’ve been in for 30+ years. Summary Well positioned with end-end capabilities necessary to deliver the value of the IOT. Leading with solutions and technology across Intel.
Memory as Platform As computing architectures continue to scale, memory continues to be a critical piece of the platform architecture, especially in the datacenterIntel continues to drive innovation in memory technologySolid-state drives are only at the beginning of the adoption curve providing a significant business growth opportunity
CPU and Data: Better Together Rob CrookeVice President, General ManagerNon-Volatile Memory Solutions Group
Key Messages Key IT challenges can be addressed with CPU + storage together Sustained innovation has delivered profitable growth Computing insight and platform optimization are a unique advantage Our Strategy: Technology Driven. Customer Inspired. Platform Connected.
Data wants to be close to the CPU… Economics keeps them apart
The Increasing Gap Increasing Gap CPU HDD Performance Memory & storage critical to scaling computing
Intel® Solid-State Drive a Multi-Decade Journey 12MBFirst Intel® Commercial SSD1992
Technology Leadership Through the Years 1st Pitch Doubling in Production 2007 1st to 3Xnm (34nm) 2008 Market Intel/Micron Tech Insights Best Flash Technology 1st to 2Xnm 1st Integration of Word Line Airgap (25nm) 2010 1st Cell w/ Hi-K Metal Gate, 1st 128Gb(20nm) 2012 2015 1st 3D NANDwith Disruptive Cost 2011 Word Line Airgap Integration 3D NAND128Gb 2014 Pitch Doubling 3Xnm 2009
The Increasing Gap Increasing Gap CPU SSD HDD SSDs address the performance gap Performance
Intel Creates an Industry Industry Computing SSD Revenue Source: Forward Insights October ’14. $ Billions “The Intel X25-M 80GB SSD is screaming fast and blows away all of the previous best storage options!” - 2008 “This, ladies and gentlemen, is absolute domination. The X25-M thoroughly outclasses the competition here, wiping the floor with not only every mechanical hard drive in the field, but the other SSDs, as well.” - 2008 2008 Intel Re-invents the SSD 2008
The SSD Difference – Accelerating Big Data Intel SSDs improve Hadoop performance by over 3x Results have been estimated or simulated using internal Intel analysis or architecture simulation or modeling, and provided to you for informational purposes. Any differences in your system hardware, software or configuration may affect your actual performance. Other names and brands may be claimed as the property of others. Performance Improvement x x x x 3x +
Innovation and SSD Disruption vs HDD: 500 feet of storagePerformance: 11M I/O per sec Just under two American football fields SSD: 4 inches of storagePerformance: 11M I/O per sec Bringing data closer: same performance, smaller footprint Results have been estimated or simulated using internal Intel analysis or architecture simulation or modeling, and provided to you for informational purposes. Any differences in your system hardware, software or configuration may affect your actual performance.
Addressing IT Pain Points
Platform Optimization Delivers Enhanced Capability Client Data Center Intel® vPro™ Intel® SSD Professional Family Intel® Security Better Security CoveragePlug known security gaps Better User ExperienceImprove Security UXNo compromise in security/performance Better IT SolutionsSolve IT pain points Platform NVM Validated Solutions
Data Center Leadership Source: IDC, Worldwide Solid State Drive Quarterly Update: 2Q14, doc #251237, September 2014. Intel WD(SAS)
NAND Leadership Disruptive 3D NAND Breakthrough cost 2x bits per die 1 TB in 2mm >10TB in a SSD Intel 3D NAND 2D NAND 32 Tiers Estimates are based on internal Intel and market based analysis, and provided to you for informational purposes and are subject to change.
Tremendous Opportunity Sources: Intel internal research, and Geoffrey Moore, Crossing the Chasm. ~2018 Note: this slide still being worked Innovators2.5% EarlyAdopters13.5% EarlyMajority34% LateMajority34% Laggards16% SSDs
Growing Revenue in Compute NVM NAND SSDs All NAND $2B Est. Source: internal Intel estimates.
Compute Data: A Growth Opportunity Technology Driven. Customer Inspired. Platform Connected.
Q&A
Legal Disclaimers Software and workloads used in performance tests may have been optimized for performance only on Intel microprocessors. Performance tests, such as SYSmark and MobileMark, are measured using specific computer systems, components, software, operations and functions. Any change to any of those factors may cause the results to vary. You should consult other information and performance tests to assist you in fully evaluating your contemplated purchases, including the performance of that product when combined with other products. All dates, forecasts and products specified in this presentation are subject to change without notice. This presentation will not be updated to reflect any such changes. Copyright 2014 Intel Corporation. *Other names and brands may be claimed as the property of others.
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,” “believes,” “seeks,” “estimates,” “may,” “will,” “should” and their variations identify forward-looking statements. Statements that refer to or are based on projections, uncertain events or assumptions also identify forward-looking statements. Many factors could affect Intel’s actual results, and variances from Intel’s current expectations regarding such factors could cause actual results to differ materially from those expressed in these forward-looking statements. Intel presently considers the following to be important factors that could cause actual results to differ materially from the company’s expectations. Demand for Intel’s products is highly variable and could differ from Intel’s expectations due to factors including changes in the business and economic conditions; consumer confidence or income levels; customer acceptance of Intel’s and competitors’ products; competitive and pricing pressures, including actions taken by competitors; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers.Intel’s gross margin percentage could vary significantly from expectations based on capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying products for sale; changes in revenue levels; segment product mix; the timing and execution of the manufacturing ramp and associated costs; excess or obsolete inventory; changes in unit costs; defects or disruptions in the supply of materials or resources; and product manufacturing quality/yields. Variations in gross margin may also be caused by the timing of Intel product introductions and related expenses, including marketing expenses, and Intel’s ability to respond quickly to technological developments and to introduce new features into existing products, which may result in restructuring and asset impairment charges. Intel operates in highly competitive industries and its operations have high costs that are either fixed or difficult to reduce in the short term. The declaration and rate of dividend payments and the amount and timing of Intel’s stock buyback program are at the discretion of Intel’s board of directors, and plans for future dividends and stock buy backs and could be affected by changes in Intel’s priorities for the use of cash, such as operational spending, capital spending, acquisitions, and because of changes to Intel’s cash flows and changes in tax laws.Intel’s expected tax rate is based on current tax law and current expected income and may be affected by the jurisdictions in which profits are determined to be earned and taxed; changes in the estimates of credits, benefits and deductions; the resolution of issues arising from tax audits with various authorities, including payment of interest and penalties; and the ability to realize deferred tax assets. Gains or losses from equity securities and interest and other could vary from expectations depending on gains or losses on the sale, exchange, change in the fair value or impairments of debt and equity investments; interest rates; cash balances; and changes in fair value of derivative instruments. Intel's results could be affected by adverse economic, social, political and physical/infrastructure conditions in countries where Intel, its customers or its suppliers operate, including military conflict and other security risks, natural disasters, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Intel’s results could be affected by the timing of closing of acquisitions, divestitures and other significant transactions.Intel's results could be affected by adverse effects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving intellectual property, stockholder, consumer, antitrust, disclosure and other issues. An unfavorable ruling could include monetary damages or an injunction prohibiting Intel from manufacturing or selling one or more products, precluding particular business practices, impacting Intel’s ability to design its products, or requiring other remedies such as compulsory licensing of intellectual property.A detailed discussion of these and other factors that could affect Intel’s results is included in Intel’s SEC filings, including the company’s most recent Form 10-Q, Form 10-K and earnings release.