The Heart of A New Generation Update to Analysts. Anand Chandrasekher Senior Vice President, Intel General Manager, Ultra Mobility Group

Transcription

1 The Heart of A New Generation Update to Analysts Anand Chandrasekher Senior Vice President, Intel General Manager, Ultra Mobility Group

2 Today s s presentation contains forward-looking statements. All statements made that are not historical facts are subject to a number n of risks and uncertainties, and actual results may differ materially. ally. Please refer to our most recent Earnings Release and our most recent Form 10-K K filing for more information on the risk factors that could cause actual results to differ materially. If we use any non-gaap financial measures during the presentation, you will find on our website, the required reconciliation to the most directly comparable GAAP financial measure.

3 Today s s News New groundbreaking low power high performance technology for Mobile Internet Devices, enabling the best Internet experience in pocketable devices Intel is introducing its first groundbreaking low-power Intel Atom processors and Centrino Atom processor technology for Mobile Internet Devices A number of device manufacturers are planning to ship and range of service providers planning to deploy Intel-based MIDs beginning this summer * Announcing Intel Atom Architecture for the Embedded Market Segment with 7 year extended life support. Offers Ultra-Low Power for Fanless and Small Form Factor applications. Latest trends in personalizing the mobile computing experience, including Netbooks,, Intel s s 2009 notebook platform and the new Intel Anti-theft theft technology. Intel architecture from Milliwatts to Petaflops: MIDs to HPC to Visual Computing * Intel forecast

4 Intel Atom Processor Intel s s smallest processor built with the world s s smallest transistors < 25 mm2 die size 45nm High-K K CMOS 47 million transistors Intel s s lowest power CPU watts TdP 1 Low average power 2 ( mW) Low idle power 3 (80-100mW) Fastest processor in sub 3W space 800MHz 1.86Ghz 533MHz & 400MHz FSB HT Technology 1 Intel Digital Media Boost Ground Up Design with Core 2 Duo (Merom)) ISA Compatibility Intel Virtualization Technology SSE3, SSSE3 Support 1. HT Technology can add 200mW of power above quoted TDP for HT SKUs when multi-threaded applications are run. 2. Average power is defined as measured CPU power whilst running BAPCo MobileMark 05 Office Productivity suite on Microsoft* Windows* XP for a period of 90min at 50 C. 3. Idle power is measured when running Windows Vista in idle at 50C

5 Intel Atom Processor Performance AND Low Power Embedded Netbook/ Nettop Emb. Menlow A Second IA Core Diamondville CE Sodaville Menlow MID Optimized by Segment

6 Mobile Internet Devices The Heart of a New Generation Global Internet Growth Continues Unabated Best Internet: PC Internet + Interactive + Fast + Visual Users want to carry this Internet experience with them Mobile Internet Devices enable the Best Internet Experience in Pocketable Devices Ultra Mobile Performance Internet and Software Compatibility Wireless Connectivity Launching Intel Centrino Atom processor technology Intel s s FIRST Mobile Internet Device platform

7 Intel Centrino Atom processor technoloy 13mm 22mm 14mm Intel Atom processor Ground up design with Core 2 Duo ISA compatibility Intel s smallest processor built with world s smallest transistors Fastest CPU in sub 3W space Intel s lowest power CPU 19mm 22mm Intel System Controller Hub Ground up design, Highly integrated low power solution Best Graphics in handheld space HD Video Combines Handheld IO with PC Standards

8 Industry Momentum and Announcements MIDs Coming to Market Service Providers Getting Ready Software Ecosystem Gathering Steam

9 Embedded Markets Growth Opportunity New Growth in Existing Markets Fueling >18% CAGR for Embedded* >40 Early Access Design Wins* IP Phones Digital Medical In-Vehicle Digital Signage Point of Sale Surveillance Infotainment & Security * Source: Intel

10 Questions

11 Risk Factors This presentation contains forward-looking statements that involve a number of risks and uncertainties. ies. These statements do not reflect the potential impact of any mergers, acquisitions, divestitures, investments or other similar transactions that had not been completed ed in the future, with the exception of the Numonyx transaction. Our forward rd-looking statements for 2008 reflect the expectation that the Numonyx transaction will close during the first quarter. The information presented is accurate only as of today s s date and will not be updated. In addition to any factors discussed in the presentation, the important factors that could cause actual results to differ materially include the following: Factors that could cause demand to be different from Intel's expectations ectations include changes in business and economic conditions, including i conditions in the credit market that could affect consumer confidence; customer acceptance of Intel s s and competitors products; changes in customer order patterns, including order cancellations; and changes in the level of inventory at customers. Intel s s results could be affected by the timing of closing of acquisitions and divestitures. Intel operates in intensely competitive industries that are characterized d by a high percentage of costs that are fixed or difficult to reduce in the short term and product demand that is highly variable and difficult to forecast. Additionally, Intel is in the process of transitioning to its next generation of products on 45 nm process technology, and there could be execution issues associated with these changes, including product t defects and errata along with lower than anticipated manufacturing yields. Revenue and the gross margin percentage are affected by the timing of new Intel product introductions and the demand for and market acceptance of Intel's products; actions taken by Intel's competitors, tors, including product offerings and introductions, marketing programs p and pricing pressures and Intel s s response to such actions; Intel s s ability to respond quickly to technological developments and to incorporate new features into its products; and the availability of sufficient components c from suppliers to meet demand. The gross margin percentage could vary significantly from expectations based on changes in revenue levels; product mix and pricing; capacity utilization; variations in inventory valuation, including variations related to the timing of qualifying ing products for sale; excess or obsolete inventory; manufacturing ng yields; changes in unit costs; impairments of long-lived lived assets, including manufacturing, assembly/test and intangible assets; and the timing and execution of the manufacturing ramp and associated costs, including ing start-up costs. Expenses, particularly certain marketing and compensation expenses, vary depending on the level of demand for Intel's products, the level of revenue and profits, and impairments of long- lived assets. Intel is in the midst of a structure and efficiency y program that is resulting in several actions that could have an impact on expected expense levels and gross margin. We expect to complete the divestiture of our NOR flash memory assets to Numonyx. A delay or failure of the transaction to close, or a change in the financial l performance of the contributed businesses could have a negative e impact on our financial statements. Intel s s equity proportion of the new company s s results will be reflected on its financial statements below operating income and with a one quarter lag. The tax rate expectation is based on current tax law and current expected income. The tax rate 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 h various tax 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 fixed income and equity market volatility; gains or losses realized on the sale or exchange of securities; gains or losses from equity method investments; impairment charges related to marketable, non-marketable and other investments; interest rates; cash balances; and changes in fair value of derivative instruments. Intel s s results could be affected by the amount, type, and valuation of share-based awards granted as well as the amount of awards cancelled due to employee turnover and the t timing of award exercises by employees. Intel's results could be impacted by adverse economic, social, political and physical/infrastructure conditions in the countries in which Intel, its customers or its suppliers operate, including security concerns, natural disasters, s, infrastructure disruptions, health concerns and fluctuations in currency exchange rates. Intel's results could be affected by adverse effects ects associated with product defects and errata (deviations from published specifications), and by litigation or regulatory matters involving ng intellectual property, stockholder, consumer, antitrust and other o issues, such as the litigation and regulatory matters described in Intel's SEC C reports. A detailed discussion of these and other risk factors that could affect Intel s s results is included in Intel s s SEC filings, including the report on Form 10-K K for the fiscal year ended December 29, Rev. 2/26/08

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