ROB CSONGOR | VICE PRESIDENT, INVESTOR RELATIONSUBS Global Technology Conference | November 21, 2013
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.
NVIDIATHE VISUAL COMPUTING COMPANY
Image credit: Warner Brothers
PROFESSIONAL VISUALIZATION & DESIGN
GAMING
TECHNOLOGY BOARDS SYSTEMSPROCESSORS
HPC & BIG DATA ANALYTICS
OEM
World Leader in Visual Computing
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)
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
PC Gaming Growth
Gaming NotebooksRazer Blade with GeForce GTX 765
Gaming DesktopsGeForce GTX 780 TI
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
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
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
TEGRA STRATEGY Android Devices where Visual Computing Matters
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.
$-
$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
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
Appendix
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