2. 2 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
CAUTIONARY STATEMENT
THIS DECK CONTAINS FORWARD-LOOKING STATEMENTS CONCERNING AMD, ITS EMBEDDED PRODUCT ROADMAP AND STRATEGY AND THE TIMING, FEATURES AND
FUNCTIONALITY OF AMD’S FUTURE PRODUCTS, WHICH ARE MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995. FORWARD-LOOKING STATEMENTS ARE COMMONLY IDENTIFIED BY WORDS SUCH AS "BELIEVES, "EXPECTS," "MAY," "WILL," "SHOULD," "SEEKS," "INTENDS,"
"PRO FORMA," "ESTIMATES," "ANTICIPATES," "PLANS," "PROJECTS," AND OTHER TERMS WITH SIMILAR MEANING. INVESTORS ARE CAUTIONED THAT THE FORWARD-
LOOKING STATEMENTS IN THIS RELEASE ARE BASED ON CURRENT BELIEFS, ASSUMPTIONS AND EXPECTATIONS, SPEAK ONLY AS OF THE DATE OF THIS RELEASE AND
INVOLVE RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM CURRENT EXPECTATIONS. RISKS INCLUDE THE POSSIBILITY
THAT INTEL CORP.'S PRICING, MARKETING AND REBATING PROGRAMS, PRODUCT BUNDLING, STANDARD SETTING, NEW PRODUCT INTRODUCTIONS OR OTHER
ACTIVITIES MAY NEGATIVELY IMPACT THE COMPANY’S PLANS, THAT THE COMPANY WILL REQUIRE ADDITIONAL FUNDING AND MAY BE UNABLE TO RAISE SUFFICIENT
CAPITAL ON FAVORABLE TERMS, OR AT ALL; THAT CUSTOMERS STOP BUYING THE COMPANY’S PRODUCTS OR MATERIALLY REDUCE THEIR OPERATIONS OR DEMAND
FOR THE COMPANY’S PRODUCTS; THAT THE COMPANY MAY BE UNABLE TO DEVELOP, LAUNCH AND RAMP NEW PRODUCTS AND TECHNOLOGIES IN THE VOLUMES THAT
ARE REQUIRED BY THE MARKET AT MATURE YIELDS ON A TIMELY BASIS; THAT THE COMPANY’S THIRD PARTY FOUNDRY SUPPLIERS WILL BE UNABLE TO TRANSITION THE
COMPANY’S PRODUCTS TO ADVANCED MANUFACTURING PROCESS TECHNOLOGIES IN A TIMELY AND EFFECTIVE WAY OR TO MANUFACTURE THE COMPANY’S
PRODUCTS ON A TIMELY BASIS IN SUFFICIENT QUANTITIES AND USING COMPETITIVE PROCESS TECHNOLOGIES; THAT THE COMPANY WILL BE UNABLE TO OBTAIN
SUFFICIENT MANUFACTURING CAPACITY OR COMPONENTS TO MEET DEMAND FOR ITS PRODUCTS OR WILL NOT FULLY UTILIZE ITS PROJECTED MANUFACTURING
CAPACITY NEEDS AT GLOBALFOUNDRIES (GF) MICROPROCESSOR MANUFACTURING FACILITIES; THAT THE COMPANY’S REQUIREMENTS FOR WAFERS WILL BE LESS THAN
THE FIXED NUMBER OF WAFERS THAT IT AGREED TO PURCHASE FROM GF OR GF ENCOUNTERS PROBLEMS THAT SIGNIFICANTLY REDUCE THE NUMBER OF FUNCTIONAL
DIE IT RECEIVES FROM EACH WAFER; THAT THE COMPANY IS UNABLE TO SUCCESSFULLY IMPLEMENT ITS LONG-TERM BUSINESS STRATEGY; THAT THE COMPANY
INACCURATELY ESTIMATES THE QUANTITY OR TYPE OF PRODUCTS THAT ITS CUSTOMERS WILL WANT IN THE FUTURE OR WILL ULTIMATELY END UP PURCHASING,
RESULTING IN EXCESS OR OBSOLETE INVENTORY; THAT THE COMPANY IS UNABLE TO MANAGE THE RISKS RELATED TO THE USE OF ITS THIRD-PARTY DISTRIBUTORS AND
ADD-IN-BOARD (AIB) PARTNERS OR OFFER THE APPROPRIATE INCENTIVES TO FOCUS THEM ON THE SALE OF THE COMPANY’S PRODUCTS; THAT THE COMPANY MAY BE
UNABLE TO MAINTAIN THE LEVEL OF INVESTMENT IN RESEARCH AND DEVELOPMENT THAT IS REQUIRED TO REMAIN COMPETITIVE; THAT THERE MAY BE UNEXPECTED
VARIATIONS IN MARKET GROWTH AND DEMAND FOR THE COMPANY’S PRODUCTS AND TECHNOLOGIES IN LIGHT OF THE PRODUCT MIX THAT IT MAY HAVE AVAILABLE
AT ANY PARTICULAR TIME; THAT GLOBAL BUSINESS AND ECONOMIC CONDITIONS, INCLUDING PC MARKET CONDITIONS, WILL NOT IMPROVE OR WILL WORSEN; THAT
DEMAND FOR COMPUTERS WILL BE LOWER THAN CURRENTLY EXPECTED; AND THE EFFECT OF POLITICAL OR ECONOMIC INSTABILITY, DOMESTICALLY OR
INTERNATIONALLY, ON THE COMPANY’S SALES OR SUPPLY CHAIN. INVESTORS ARE URGED TO REVIEW IN DETAIL THE RISKS AND UNCERTAINTIES IN THE COMPANY'S
SECURITIES AND EXCHANGE COMMISSION FILINGS, INCLUDING BUT NOT LIMITED TO THE QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED JUNE 29,
2013.
3. 3 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AGENDA
THE EMBEDDED MARKET
FOCUS AREAS
PRODUCT ROADMAP
4. 4 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
RESET &
RESTRUCTURE
Q3’12 - Q1’13
ACCELERATE &
EXECUTE PLAN
2013
TRANSFORM
TO WIN
2014 & BEYOND
~$450M OPEX target in Q3
2013
Reduce headcount by ~14%
Manage cash and Inventory
Execute 2013 roadmap
Deliver 2013 financial
commitments
Return to profitability at
the net income level based
on mid-point of Q3’13
revenue guidance
Achieve positive free cash
flow in 2H 2013
Build leadership IP:
– Low power
– Server: x86 & ARM
– Graphics
Transition 40-50% of our
business to high growth
adjacent markets
– Ultra low power client
– Embedded
– Semi-custom
– Professional graphics
– Dense server
AMD EMBEDDED SOLUTIONS
THREE STEPS TO TRANSFORMATION
5. 5 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Traditional embedded systems* Intelligent systems* Personal computers Servers Cellular phones(M)
Source: IDC Press Release, Intelligent Systems Transforming the Embedded Industry and Driving the Value
Among M2M and the Internet of Everything, May 2013
THE INTERNET OF THINGS, SURROUND COMPUTING AND NEXT GENERATION EMBEDDED
SYSTEMS WILL BE A STRONG DRIVER FOR THE NEXT LEG OF SUBSTANTIAL GROWTH IN THE
COMPUTING INDUSTRY
AMD EMBEDDED SOLUTIONS
THE EMBEDDED MARKET
6. 6 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD EMBEDDED SOLUTIONS
THE EMBEDDED MARKET
VDC Research - Strategic Insights 2012: Embedded Processing Technologies
*Excludes mobile phones
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
0.0% 4.0% 8.0% 12.0% 16.0%
CAGR
% of Embedded Market
CPU GROWTH IN EMBEDDED APPLICATIONS BY 2016
Communications
& NetworkingIndustrial
Tablets
Consumer
Electronics
Industrial Control
& Automation
Gaming
Retail
Automation
Storage
Gateway
Equipment
Thin
Clients
Military/Aerospace/Defense
Energy/Power
Automotive
Office/Business Automation
Digital Surveillance/Security
Infotainment
Transportation Digital Signage
Medical
7. 7 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD EMBEDDED SOLUTIONS
FOCUS AREAS
INDUSTRIAL CONTROLS
& AUTOMATION
GAMING MACHINES
THIN CLIENT
DIGITAL SIGNAGE
COMMUNICATIONS
INFRASTRUCTURE
THEN NOW
8. 8 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
x86
44%
ARM
36%
MIPS
7%
Power
6%
Other
7%
2013 TAM $11.3B
x86
45%
ARM
37%
MIPS
6%
Power
6%
Other
6%
2016 TAM $15.5B
AMD EMBEDDED SOLUTIONS
FOCUS AREAS
VDC Research - Strategic Insights 2012: Embedded Processing Technologies
X86 & ARM ACCOUNT FOR 82% OF $15.5B TAM BY 2016
9. 9 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD EMBEDDED SOLUTIONS
PRODUCTS & TECHNOLOGY
A FIRST LOOK
GCN “Adelaar” Discrete GPU
x86 “Steppe Eagle” APU SOC
x86 “Bald Eagle” APU/CPU
ARM “Hierofalcon” CPU SOC
11. 11 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD EMBEDDED SOLUTIONS
PRODUCTS & TECHNOLOGY
A FIRST LOOK: “ADELAAR”
Discrete GCN-based GPU
2GBs integrated memory
Pre-qualified
MCM, MXM or PCIe® Add-on Board
FIRST EMBEDDED
DISCRETE GPU BASED
ON GCN
12. 12 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD EMBEDDED SOLUTIONS
PRODUCTS & TECHNOLOGY
A FIRST LOOK: “STEPPE EAGLE”
Low-power x86 APU SOC
Enhanced “Jaguar” CPU core
CPU & GPU frequency boosts
Superior performance/watt
EXCEPTIONAL
PERFORMANCE/WATT
AT LOWER TDP
13. 13 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD EMBEDDED SOLUTIONS
PRODUCTS & TECHNOLOGY
A FIRST LOOK: “BALD EAGLE”
High-performance X86 APU & CPU
New “Steamroller” CPU cores
Enhanced GCN based GPU
New power management features
Error-correcting code (ECC) memory
HSA ENHANCEMENTS FOR NEXT-
GENERATION EMBEDDED
HETEROGENEOUS COMPUTE
14. 14 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD EMBEDDED SOLUTIONS
PRODUCTS & TECHNOLOGY
A FIRST LOOK: “HIEROFALCON”
High-performance 64-bit ARM CPU SOC
Up to 8 ARM Cortex™-A57 CPUs
10Gb KR Ethernet
PCI-Express Gen 3
Enhanced security with ARM TrustZone™
FIRST ARM SOLUTION
FROM AMD FOR
EMBEDDED MARKETS
16. 16 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
AMD. ONLY COMPANY TO OFFER 64-BIT X86
& ARM FOR EMBEDDED APPLICATIONS.
AMD EMBEDDED SOLUTIONS
PRODUCTS & TECHNOLOGY
INDUSTRY-LEADING IP
UNMATCHED GRAPHICS
ULTIMATE SCALABILITY
COMPLETE ECOSYSTEM
17. 17 | AMD EMBEDDED SOLUTIONS | SEPTEMBER 09, 2013 | CONFIDENTIAL
NOVEMBER 11-13, 2013 | SAN JOSE CONVENTION CENTER
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