ROB CSONGOR | VICE PRESIDENT, INVESTOR RELATIONS

17
ROB CSONGOR | VICE PRESIDENT, INVESTOR RELATIONS UBS Global Technology Conference | November 21, 2013

Transcript of ROB CSONGOR | VICE PRESIDENT, INVESTOR RELATIONS

Page 1: ROB CSONGOR | VICE PRESIDENT, INVESTOR RELATIONS

ROB CSONGOR | VICE PRESIDENT, INVESTOR RELATIONSUBS Global Technology Conference | November 21, 2013

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Safe Harbor

Forward-Looking Statements

Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: the

performance and benefits of our products and technologies; our planned return of capital to shareholders; our visual computing position; our

growth drivers; Tegra 4 ramp up; and other predictions and estimates are forward-looking statements within the meaning of the Private Securities

Litigation Reform Act of 1995. These forward-looking statements and any other forward-looking statements that go beyond historical facts that are

made in this presentation are subject to risks and uncertainties that may cause actual results to differ materially. Important factors that could

cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and

test our products; the impact of technological development and competition; development of new products and technologies or enhancements to

our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects;

changes in consumer preferences and demands; changes in industry standards and interfaces; unexpected loss of performance of our products or

technologies when integrated into systems and other factors. For a complete discussion of factors that could materially affect our financial results

and operations, please refer to the reports we file from time to time with the SEC, including our Form 10-Q for the fiscal period ended October 27,

2013. Copies of reports we file with the SEC are posted on our website and are available from NVIDIA without charge. These forward-looking

statements are not guarantees of future performance and speak only as of November 21, 2013, based on information currently available to us.

Except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

Financial Measures

This presentation contains historical revenue amounts for certain of our product lines and businesses which provides investors with additional

information to supplement the segment reporting information contained in our Form 10-K for the fiscal period ended January 27, 2013 and

subsequent reports we file from time to time. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures.

These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in

accordance with U.S. GAAP. See the Appendix for a reconciliation between each non-GAAP measure and the most comparable GAAP measure.

Where we present non-GAAP financial measures, we generally exclude stock-based compensation, and a legal settlement charges.

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NVIDIATHE VISUAL COMPUTING COMPANY

Image credit: Warner Brothers

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PROFESSIONAL VISUALIZATION & DESIGN

GAMING

TECHNOLOGY BOARDS SYSTEMSPROCESSORS

HPC & BIG DATA ANALYTICS

OEM

World Leader in Visual Computing

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Q3FY14 HIGHLIGHTS

Announced Intent to Return $1B

Capital to Shareholders in Fiscal 2015

Momentum in Growth Businesses

Tegra, Tesla, GRID

Near Record High Gross Margins of

55.7% (Non-GAAP)

Revenues of $1.054M, Up 8% From Q2,

Outperforming the PC Market Through:PC Gaming (Desktop + Notebook)

Quadro (Record Revenue Quarter)

Tesla (Record Revenue Quarter)

Tegra (Tegra 4 Ships, Xiaomi Phone, Tablets,

Record Automotive)

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NVIDIA GPUs Outperforming the PC Market

-15%

-10%

-5%

0%

5%

10%

15%

GEFORCE GAMING GPUs

6%

QUADRO

12%

TESLA

43%

MAINSTREAM OEM

8%

OVERALL NVIDIA GPU

4%

PC Market

11%

2013 GPU Revenues Q1 through Q3, 2013 PC revenue Q1 through Q3 from Gartner Data

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PC Gaming Growth

Gaming NotebooksRazer Blade with GeForce GTX 765

Gaming DesktopsGeForce GTX 780 TI

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0%

10%

20%

30%

40%

50%

2010 2011 2012

Record Revenue Quarter for TeslaAccelerated Computing Growing Fast

2x Growth in One Year NVIDIA GPU is Accelerator of Choice

NVIDIA GPUs

85%

INTEL PHI

4%OTHERS

11%

Intersect360 ResearchHPC User Site Census: Systems, July 2013

Percent of HPC Systems With Accelerators

22%24%

44%

Intersect360 ResearchHPC User Site Census: Systems, July 2013

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News this week at SC13 Conference …

• NVIDIA launches the Tesla K40, the world’s fastest

accelerator for supercomputing and big data analytics

• IBM and NVIDIA partner to build next-generation

supercomputers & will develop accelerated versions of its’

enterprise software applications with NVIDIA CUDA GPUs,

• NVIDIA Tesla GPUs power Europe’s #1 supercomputer

• NVIDIA launches CUDA 6 w/Unified Memory, dramatically

simplifying parallel programming

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5 1025 35 45

7590

101

140153

173194

212

0

50

100

150

200

250

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

Oct

EXPANDING ECOSYSTEMOEM | Virtualization | Services

SPREADING THE WORD15 Big Events | 100+ Training Sessions

90-stop SolidWorks Roadshow

GRID-CERTIFIED APPS

MAJOR ANNOUNCEMENTS“Amazon Web Services Deploys NVIDIA

GRID GPUs”

"SolidWorks Exclusively Certifies GRID VCA

as Virtualization Standard"

“VMware Delivers Rich, Virtual Graphics

with NVIDIA GRID”

“NVIDIA and Citrix Are Driving the Future

of Virtualized Visual Computing”

GRID MOMENTUM

TRIALS

EXTENDED REACH

100+ Value Added Resellers

10K+ “Army” of Evangelists

80+ Demo CentersWorldwide

2M CAD5M

PLM

8M Adobe

1.5M Solidworks .5M

Siemens

1.5M PTC

.5M Inventor

8MAutoCAD

6M Sciences

(Energy/GIS/Medical)

3M DCC

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TEGRA STRATEGY Android Devices where Visual Computing Matters

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50.4%

52.0%

53.1% 53.2%

54.6%

56.3%55.7%

45%

50%

55%

60%

Q113 Q213 Q313 Q413 Q114 Q214 Q314

Visual Computing Focus on Vertical Markets Drives Margins

Non-GAAP GM, see reconciliation in Appendix.

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$-

$200

$400

$600

$800

$1,000

$1,200

FY12 FY13 FY14 FY15

Shares Repurchase

Dividend

Capital return to shareholders

Increased Capital Return to ShareholdersIn

Millions

Increased quarterly dividend 13% from $0.075 to $0.085

Intent to return $1.0B in capital to shareholders in FY15, inclusive of dividends and share repurchases

Increased share repurchase authorizations for a total of $1.286B through the end of FY16

0

$150M

$1.0B $1.0B

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GPUs Outperforming the PC Market PC Gaming +6% YTD

Quadro +12% YTD

Tesla +43% YTD

GRID Lifting off the runway

Tegra Revenue Ramping BackTegra 4 now shipping in over 15 devices

Android not just about phones

Another record automotive quarter

Project Logan

NVIDIA GROWTH DRIVERS

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Appendix

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RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES

Non-GAAPStock-based

compensation Other

(a)

GAAP

Q1 FY2013Gross profit $466 $(3) $— $463

Gross margin 50.4% (.3%) — 50.1%

Q2 FY2013Gross profit $543 $(2) $— $541

Gross margin 52.0% (.2%) — 51.8%

Q3 FY2013Gross profit $639 $(2) $— $637

Gross margin 53.1% (.2%) — 52.9%

Q4 FY2013Gross profit $588 $(2) $— $586

Gross margin 53.2% (.3%) — 52.9%

Q1 FY2014Gross profit $521 $(2) $— $519

Gross margin 54.6% (.3%) — 54.3%

Q2 FY2014Gross profit $550 $(2) $(2) $546

Gross margin 56.3% (.3%) (0.3%) 55.8%

Q3 FY2014Gross profit $588 $(4) $— $584

Gross margin 55.7% (.3%) — 55.4%

(in millions)

Footnotes (a) Consists of a legal settlement charge