AMD 2010 Financial Analyst Day

Dirk Meyer
President and Chief Executive Officer

November 9, 2010
Review: 2010 Success Drivers




                                                            *Source: Mercury Research, October 2010



    3 | AMD 2010 Financial Analyst Day | November 9, 2010
Target Markets are Large and Growing




                                                                           Netbooks
                                                            Notebooks
                            Game                                                            Tablets
                           Consoles


                                                                             Servers
                           Embedded
   Desktops

                                                                Graphics




                        $40B Gross Margin Pool in 2014                                 Source: AMD estimates



    4 | AMD 2010 Financial Analyst Day | November 9, 2010
Convergence of Three Industry Trends




    5 | AMD 2010 Financial Analyst Day | November 9, 2010
Introducing: The AMD Fusion Family of APUs




    6 | AMD 2010 Financial Analyst Day | November 9, 2010
Success Drivers




    7 | AMD 2010 Financial Analyst Day | November 9, 2010
Appendix A – Non-GAAP Operating Income and Gross Margin Reconciliations

Reconciliation of GAAP to Non-GAAP Operating Income (Loss)
(Millions)                                                                    Q4-09       Q1-10       Q2-10       Q3-10
GAAP operating income (loss)                                                  $ 1,288     $ 182        $ 125       $128
 Gross margin benefit due to the deconsolidation of GF                                -       69              -           -

 Amortization of acquired intangible assets                                                 (17)          (17)      (16)
                                                                                   (18)
 Legal settlement                                                                 1,242           -           -           -
 Restructuring (charges) reversals                                                    -           -           4           -
 Operating income (loss) from Foundry segment and Intersegment Eliminations       (105)           -           -           -
Non-GAAP operating income (loss)                                              $    169    $ 130        $ 138       $144


Reconciliation of GAAP to Non-GAAP Gross Margin
(Millions, except percentages)                                                    Q4-09   Q1-10        Q2-10      Q3-10
GAAP Gross Margin                                                             $    735    $ 741       $   738      $739
GAAP Gross Margin %                                                                45%      47%           45%       46%
 Gross margin benefit due to the deconsolidation of GF                                -       69              -           -

 Gross margin from Foundry segment and Intersegment Eliminations                                  -           -           -
                                                                                     56
Non-GAAP Gross Margin                                                         $    679    $ 672       $   738      $739
Non-GAAP Gross Margin %                                                            41%      43%           45%       46%



             8 | AMD 2010 Financial Analyst Day | November 9, 2010
DISCLAIMER

The information presented in this document is for informational purposes only and may contain technical inaccuracies,
omissions and typographical errors.
The information contained herein is subject to change and may be rendered inaccurate for many reasons, including but not
limited to product and roadmap changes, component and motherboard version changes, new model and/or product releases,
product differences between differing manufacturers, software changes, BIOS flashes, firmware upgrades, or the like. AMD
assumes no obligation to update or otherwise correct or revise this information. However, AMD reserves the right to revise
this information and to make changes from time to time to the content hereof without obligation of AMD to notify any person
of such revisions or changes.

AMD MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE CONTENTS HEREOF AND ASSUMES NO
RESPONSIBILITY FOR ANY INACCURACIES, ERRORS OR OMISSIONS THAT MAY APPEAR IN THIS INFORMATION.

AMD SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR
PURPOSE. IN NO EVENT WILL AMD BE LIABLE TO ANY PERSON FOR ANY DIRECT, INDIRECT, SPECIAL OR OTHER
CONSEQUENTIAL DAMAGES ARISING FROM THE USE OF ANY INFORMATION CONTAINED HEREIN, EVEN IF AMD IS
EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

ATTRIBUTION

© 2010 Advanced Micro Devices, Inc. All rights reserved.

AMD, the AMD arrow logo, AMD Athlon, AMD Phenom, Radeon and combinations thereof, are trademarks of Advanced Micro
Devices, Inc. All other products names and logos are for reference only and may be trademarks of their respective owners.




         9 | AMD 2010 Financial Analyst Day | November 9, 2010

02 amd fad2010 dirk_meyer_final

  • 2.
    AMD 2010 FinancialAnalyst Day Dirk Meyer President and Chief Executive Officer November 9, 2010
  • 3.
    Review: 2010 SuccessDrivers *Source: Mercury Research, October 2010 3 | AMD 2010 Financial Analyst Day | November 9, 2010
  • 4.
    Target Markets areLarge and Growing Netbooks Notebooks Game Tablets Consoles Servers Embedded Desktops Graphics $40B Gross Margin Pool in 2014 Source: AMD estimates 4 | AMD 2010 Financial Analyst Day | November 9, 2010
  • 5.
    Convergence of ThreeIndustry Trends 5 | AMD 2010 Financial Analyst Day | November 9, 2010
  • 6.
    Introducing: The AMDFusion Family of APUs 6 | AMD 2010 Financial Analyst Day | November 9, 2010
  • 7.
    Success Drivers 7 | AMD 2010 Financial Analyst Day | November 9, 2010
  • 8.
    Appendix A –Non-GAAP Operating Income and Gross Margin Reconciliations Reconciliation of GAAP to Non-GAAP Operating Income (Loss) (Millions) Q4-09 Q1-10 Q2-10 Q3-10 GAAP operating income (loss) $ 1,288 $ 182 $ 125 $128 Gross margin benefit due to the deconsolidation of GF - 69 - - Amortization of acquired intangible assets (17) (17) (16) (18) Legal settlement 1,242 - - - Restructuring (charges) reversals - - 4 - Operating income (loss) from Foundry segment and Intersegment Eliminations (105) - - - Non-GAAP operating income (loss) $ 169 $ 130 $ 138 $144 Reconciliation of GAAP to Non-GAAP Gross Margin (Millions, except percentages) Q4-09 Q1-10 Q2-10 Q3-10 GAAP Gross Margin $ 735 $ 741 $ 738 $739 GAAP Gross Margin % 45% 47% 45% 46% Gross margin benefit due to the deconsolidation of GF - 69 - - Gross margin from Foundry segment and Intersegment Eliminations - - - 56 Non-GAAP Gross Margin $ 679 $ 672 $ 738 $739 Non-GAAP Gross Margin % 41% 43% 45% 46% 8 | AMD 2010 Financial Analyst Day | November 9, 2010
  • 9.
    DISCLAIMER The information presentedin this document is for informational purposes only and may contain technical inaccuracies, omissions and typographical errors. The information contained herein is subject to change and may be rendered inaccurate for many reasons, including but not limited to product and roadmap changes, component and motherboard version changes, new model and/or product releases, product differences between differing manufacturers, software changes, BIOS flashes, firmware upgrades, or the like. AMD assumes no obligation to update or otherwise correct or revise this information. However, AMD reserves the right to revise this information and to make changes from time to time to the content hereof without obligation of AMD to notify any person of such revisions or changes. AMD MAKES NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE CONTENTS HEREOF AND ASSUMES NO RESPONSIBILITY FOR ANY INACCURACIES, ERRORS OR OMISSIONS THAT MAY APPEAR IN THIS INFORMATION. AMD SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. IN NO EVENT WILL AMD BE LIABLE TO ANY PERSON FOR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES ARISING FROM THE USE OF ANY INFORMATION CONTAINED HEREIN, EVEN IF AMD IS EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ATTRIBUTION © 2010 Advanced Micro Devices, Inc. All rights reserved. AMD, the AMD arrow logo, AMD Athlon, AMD Phenom, Radeon and combinations thereof, are trademarks of Advanced Micro Devices, Inc. All other products names and logos are for reference only and may be trademarks of their respective owners. 9 | AMD 2010 Financial Analyst Day | November 9, 2010