#1NVIDIA INVESTOR PRESENTATION Q3 FY2021 November 23, 2020#2Except for the historical information contained herein, certain matters in this presentation including, but not limited to, statements as to: our financial position; our markets; the performance, benefits, abilities and impact of our products and technology; the availability of our products and technology; our partnerships and customers; our use of cash; the acquisition of Arm and its impacts; NVIDIA's financial outlook for the fourth quarter of fiscal 2021; our growth and growth drivers; our financial policy; future revenue growth; our opportunities in existing and new markets; the TAM for our products; and performance in our financial metrics 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. NVIDIA has based these forward-looking statements largely on its current expectations and projections about future events and trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, and you should not rely upon the forward-looking statements as predictions of future events. The future events and trends discussed in this presentation may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although NVIDIA believes that the expectations reflected in the forward-looking statements are reasonable, the company cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. 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 Annual Report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports we file with the SEC are posted on our website and are available from NVIDIA without charge. NVIDIA uses certain non-GAAP measures in this presentation including non-GAAP gross margin, non-GAAP operating margin, non-GAAP net income, non-GAAP operating income, non-GAAP diluted earnings per share, non-GAAP operating expenses, non-GAAP other income (expense), net, free cash flow, and adjusted EBITDA. NVIDIA believes the presentation of its non-GAAP financial measures enhances investors' overall understanding of the company's historical financial performance. The presentation of the company's non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial results prepared in accordance with GAAP, and the company's non-GAAP measures may be different from non-GAAP measures used by other companies. Further information relevant to the interpretation of non-GAAP financial measures, and reconciliations of these non-GAAP financial measures to the most comparable GAAP measures, may be found in the slide titled "Reconciliation of Non-GAAP to GAAP Financial Measures". NVIDIA#3CONTENT Q3 FY21 Earnings Summary Proposed Acquisition of Arm Key Announcements This Quarter NVIDIA Overview Financials Non-GAAP to GAAP Reconciliation#4Q3 FY21 EARNINGS SUMMARY#5HIGHLIGHTS Record quarter, with strong growth led by Gaming and Data Center Total revenue up 57% y/y to $4.73B, ahead of outlook of $4.40B Gaming up 37% y/y to a record $2.27B; Data Center up 162% y/y to a record $1.90B Strong Gaming growth driven by records in desktops, laptops, and game consoles ▸ NVIDIA Ampere architecture GeForce RTX 30 Series GPUs launched to overwhelming demand ▸ RTX 30 Series delivers our greatest-ever generational leap in performance Laptops posted double-digit year-on-year growth for the 11th quarter in a row Strong Data Center growth driven by A100 ramp, Al inference, and Mellanox ► A100 gained further cloud adoption (AWS, Alibaba, Oracle) and expanded in vertical industries Al inference adoption in full throttle with record T4 shipments and A100 ramp Mellanox reached record revenue, driven by cloud, enterprise and supercomputing ▶ NVIDIA#6$3,014 64.1% Q3FY20 Q3 FY2021 FINANCIAL SUMMARY $3,866 $3,105 $3,080 65.4% 65.8% 66.0% $4,726 65.5% Q4FY20 Q1FY21 Q2FY21 Q3FY21 Revenue ($M) -Non-GAAP GM Revenue Gross Margin Operating Income Net Income Diluted EPS Cash Flow from Ops Q3 FY21 $4,726 62.6% $1,398 $1,336 $2.12 $1,279 GAAP Y/Y +57% -100 bps +51% +49% +46% -22% Q/Q +22% +380 bps +115% +115% +114% -18% Q3 FY21 $4,726 65.5% $1,993 $1,834 $2.91 $1,279 No difference between GAAP and Non-GAAP Cash Flow from Operations and Revenue Non-GAAP Y/Y +57% +140 bps +72% +66% +63% -22% Q/Q +22% -50 bps +31% +34% +33% -18% NVIDIA.#7$1,659 Q3FY20 Revenue ($M) $1,491 $1,339 $1,654 GAMING 37% q/q and 37% y/y $2,271 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Highlights Record revenue for Desktop, Laptop, and Console Launched GeForce RTX 30 Series GPUs to amazing reviews and overwhelming demand; delivers up to 2x performance Launched NVIDIA Reflex to improve reaction time in games, and NVIDIA Broadcast for video conferencing and live streaming applications NVIDIA's GeForce NOW cloud gaming service doubled in the last 7 months to reach over 5M registered users GeForce NOW has 750 games, the most of any cloud gaming platform NVIDIA#8$726 Revenue ($M) $968 $1,141 1,752 DATA CENTER 8% q/q and 162% y/y $1,900 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 ▶ Highlights Strong ramp of our A100-based platforms, continued growth in Mellanox, and record T4 shipments for inference AWS, Oracle Cloud Infrastructure and Alibaba Cloud announced general availability of the A100, following Google Cloud Platform and Microsoft Azure NVIDIA AI inference in full throttle, as hundreds of companies now operate Al- enabled services on NVIDIA's platform Mellanox reached revenue records in both InfiniBand and Ethernet NVIDIA powers ~70%, and 8 of the top 10, supercomputers on the latest TOP500 list NVIDIA.#9$324 Q3FY20 PROFESSIONAL VISUALIZATION Revenue ($M) $331 $307 $203 16% q/q 27% y/y $236 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Highlights Desktop workstations continued to decline, impacted by COVID-19 Mobile workstations rebounded sharply due to work-from-home trends Strength in Healthcare, Public Sector, Higher Education & Research, and Financial Services New business wins in Healthcare - such as Medtronic and Philips Technology, and Media & Entertainment Announced that Omniverse, the world's first 3D collaboration and simulation platform, has entered open beta NVIDIA.#10$162 Q3FY20 Revenue ($M) $163 $155 $111 AUTOMOTIVE 13% q/q 23% y/y $125 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Highlights Year-on-year decline due to ramp-down of legacy infotainment revenue Sequential growth driven by recovery in automotive production volumes and continued growth in Al Cockpit revenue Mercedes-Benz debuted its redesigned S- Class sedan, featuring an all-new NVIDIA- powered MBUX Al cockpit system Li Auto announced that it will develop its next generation of vehicles using the NVIDIA DRIVE AGX Orin platform Hyundai Motor Group announced its line- up will come standard with NVIDIA DRIVE Al Cockpit systems starting in 2022 10 NVIDIA#11Cash Flow from Operations ($M) $1,640 Q3FY20 SOURCES & USES OF CASH $1,465 $909 $1,566 18% q/q and 22% y/y $1,279 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Highlights Paid $2B in cash as part of our announced acquisition of Arm Returned $99M to shareholders in the form of dividends Invested $473M in capex Ended the quarter with $10B in gross cash and $7B in debt, $3B of net cash Gross cash is defined as cash/cash equivalents & marketable securities. Debt is defined as principal value of debt. Net cash is defined as gross cash less debt. 11 NVIDIA#12▶ ▶ ▶ ▶ Q4 FY2021 OUTLOOK Revenue -$4.80 billion, plus or minus two percent We expect Gaming to be up sequentially. We expect Data Center to be down slightly sequentially. We expect continued sequential improvement in Auto and Pro Viz, and a sequential seasonal decline in OEM. Gross Margin - 62.8% GAAP and 65.5% non-GAAP, plus or minus 50 basis points ▶ Operating Expense - Approximately $1.64 billion GAAP and $1.18 billion non-GAAP Other Income & Expense - Net expense of $55 million for both GAAP and non-GAAP Tax Rate - GAAP and non-GAAP both eight percent, plus or minus one percent, excluding discrete items Capital Expenditure - Approximately $300 to $325 million#13PROPOSED ACQUISITION OF ARM#14Cloud Data Centers Thousands of DC Each with Millions of Nodes Internet of People PERSONAL COMPUTING Billions of People THE AGE OF AI From Cloud to Edge (1181)) Edge Data Centers Millions of Edge DC Each with Thousands of Nodes T Internet of Things AUTONOMOUS MACHINES Trillions of Devices looob T NVIDIA.#15NVIDIA TO ACQUIRE ARM Creates the premier computing company for the age of Al- combining NVIDIA's leading Al computing platform with Arm's vast CPU ecosystem Expands Arm's IP licensing portfolio with NVIDIA's technology in large end markets – including Mobile and PCs Turbocharges Arm's server CPU roadmap pace and accelerates Data Center, Edge Al, and loT opportunities Expands NVIDIA's computing platform reach from 2 to over 15 million developers Financially attractive: immediately accretive to non-GAAP gross margins and non-GAAP EPS upon closing NVIDIA#16ARM'S FINANCIAL PROFILE High Margin, Recurring Revenue Business Model Strong Financial Profile Pro forma revenues of $1.8B Pro forma gross margin of -94% Adjusted EBITDA margin of -35% High Quality Business Model Contract-based, recurring revenues 1,765+ licenses, growing by 100+ per year 500+ licensees - Industry leaders and high-growth startups; chip companies and OEMs Arm unaudited March-20 end trailing twelve months pro-forma IFRS financials of IPG business NVIDIA#17TRANSACTION CONSIDERATION FINANCIAL IMPACT APPROVAL PROCESS EXPECTED CLOSING TRANSACTION SUMMARY Up to $40B purchase price at the time of signing: $21.5B in NVIDIA shares ● ● ● ● $12B in cash, with $2B paid at signing $1.5B employee equity for post-closing retention $5B performance based earn-out paid in cash or up to 10.3M NVIDIA shares Expected to be immediately accretive to NVIDIA's non-GAAP gross margin and non-GAAP earnings per share Approved by NVIDIA, Arm and SoftBank Boards of Directors Subject to regulatory approvals Expected close in the first quarter of 2022 Customary closing conditions NVIDIA#18KEY ANNOUNCEMENTS THIS QUARTER#19GEFORCE RTX 30 SERIES Based on the New NVIDIA Ampere Architecture Greatest-Ever Generational Leap up to 2x the performance of prior generation 2nd Generation of NVIDIA RTX for real-time ray tracing and Al gaming ▸ NVIDIA Reflex for faster game reaction time through lower system latency NVIDIA Broadcast for live streamers to improve quality of microphones, speakers and webcams GeForce RTX 3090 $1,499 | 3080 $699 | 3070 $499 RAY TRACING THE NEW STANDARD 2nd GENERATION RTX 1 14 INFINITE WAYS TO PLAY NVIDIA#20▶ NVIDIA WINS BENCHMARK FOR AI INFERENCE Extending its Lead in Latest MLPerf Inference v0.7 Benchmark What is MLPerf? The industry's first and only objective standard for measuring machine learning performance Consortium of over 70 universities and companies, including Google, Intel, Baidu and NVIDIA, founded in 2018 NVIDIA won all prior MLPerf benchmarks, including for training in Dec. 2018, July 2019 and July 2020, and for inference Nov. 2019 MLPerf October 2020 - Al Inference ▶► NVIDIA won every test across all six application areas for data center and edge computing systems NVIDIA increased its lead, beating CPU-only systems by 30x on the ResNet-50 test versus 6x in the last round, and outperformed CPUs by up to 237x in the newly added recommender test ▶ NVIDIA T4 Tensor Core GPU continues to be a high- performance inference platform for mainstream enterprise, edge servers and cost-effective cloud instances, beating CPUs by up to 28x NVIDIA Jetson AGX Xavier is the performance leader among SoC-based edge devices NVIDIA#211x 10x 8x 6x 4x 2x Ox 0.3X Medical Imaging 3D U-Net 0.8X NVIDIA TOPS MLPERF AI INFERENCE BENCHMARKS A100 Is Up To 237X Faster Than the CPU ■Xilinx U250 (Available) NVIDIA T4 (Available) 0.2X OFFLINE Per-Accelerator Normalized to T4 XX Image Speech Classification Recognition ResNet-50 RNN-T Intel Cooper Lake (Preview) NVIDIA A100 (Available) 0.2X X Object Detection SSD-Large X0.1X Recommendation DLRM XX NLP BERT 1x 10x 8x 6x 4x 2x Ox 0.7X 0.2X Image Classification ResNet-50 Per-Accelerator Normalized to T4 ■Xilinx U250 (Available) ■ NVIDIA T4 (Available) SERVER XX Speech Recognition RNN-T X 0.1X Intel Cooper Lake (Preview) ■ NVIDIA A100 (Available) Object Detection SSD-Large 237X vs. CPU X 0.04X Recommendation DLRM XX NLP BERT XX = No result submitted MLPerf v0.7 Inference Closed; Per-accelerator performance derived from the best MLPerf results for respective submissions using reported accelerator count in Data Center Offline and Server. 3D U-Net 99.9%, : 0.7-125, 0.7-113, 0.7-111, ResNet-50: 0.7-119, 0.7-124, 0.7-113, 0.7-111, SSD-Large: 0.7-123, 0.7-113, 0.7-111 DLRM 99.9%: 0.7-126, 0.7-113, 0.7-111, RNN-T, BERT 99.9%: 0.7-111, 0.7-113 MLPerf name and logo are trademarks. See www.mlperf.org for more information. NVIDIA#22ACCELERATING ADOPTION OF NVIDIA AI INFERENCE Celebrating 10 Years of NVIDIA GPU in the Cloud 7TH GENERATION TensorRT (Inference Compiler) 2000+ Optimizations TensorFlow, PyTorch, ONNX 1.3M Downloads 16,000 Companies TRT ACCELERATED ADOPTION OF NVIDIA GPU (EXA OPS) <1 2 25 166 2019 2017 2018 2020 Inference ExaOPS shipped: Represents 12-month periods from October of the previous year to September of the year shown 1,000,000 100,000 10,000 1,000 100 10 1 0 TOTAL CLOUD AI INFERENCE COMPUTE CAPACITY (PETA OPS) Total CPU aws 2010 NVIDIA M2050 Total GPU - Alibaba Cloud aws BAIDU AI CLOUD Google Cloud Microsoft Azure ORACLE Cloud Infrastructure. Tencent Cloud 2020 NVIDIA A 100 NVIDIA#23AUTO M BOSCH Continental Ford tu simple ZOOX NVIDIA AI INFERENCE CUSTOMERS CONSUMER INTERNET Byte Dance criteol. NAVER P POSTMATES 0 Square CSP (-) Alibaba Cloud aws Baidu E Google Cloud Microsoft ORACLE Tencent 腾讯 ROBOTICS bossanova brain corp 九鼎香 JOHN DEERE KOMATSU MIR TOYOTA MEDICAL DEEP TEK fel 6 GE Healthcare NUANCE Predible SIEMENS Healthineers SUBTLE MEDICAL UCSF Ci center for intelligent imaging RETAIL & FSI AMERICAN EXPRESS Capital One Domino's ebay KENSHO KION GROUP Kroger INDUSTRIAL AUO FOXCONNⓇ INNOPEAK TECHNOLOGY Micron MUSASHI SAMSUNG SPIL NVIDIA#24► ▶ NVIDIA BLUEFIELD DPUS New Processor Enables the Data Center as the New Unit of Computing NVIDIA BlueField-2 DPU - the data processing unit (DPU) is a new class of processor that targets every server alongside the CPU and GPU Supported by NVIDIA DOCA - new "data-center-infrastructure-on-a- chip architecture" software-development kit for DPU-accelerated applications Offloads networking, storage and security tasks from CPUs - a single BlueField-2 DPU can deliver data center services that could consume up to 125 CPU cores Enables data centers that are accelerated, fully programmable and secure ▶ Customers & Timing: BlueField-2 DPUs are sampling now with major hyperscalers and server manufacturers; available in 2021 BlueField-2X DPUs, enhanced with NVIDIA Ampere architecture GPUs, will also become available in 2021 2x 100Gb/s Ethernet and InfiniBand Out-of-Band Management PCIe Gen NVIDIA#25VMWARE AND NVIDIA TO ENABLE NEXT-GEN HYBRID CLOUD ARCHITECTURE AND BRING AI TO EVERY ENTERPRISE Delivers an end-to-end enterprise platform for Al - Integrates NVIDIA's rich set of Al software into VMware vSphere and VMware Cloud Foundation. Allows enterprises to run and manage Al workloads with existing infrastructure. Delivers a material increase in performance and security - Offloads hypervisor, networking, security, and storage tasks from the CPU to NVIDIA's BlueField-2 DPU. Accelerates enterprise adoption of NVIDIA AI and accelerated computing Enables VMware's 300K+ customers to benefit from NVIDIA AI and accelerated computing technologies. NVIDIA vmware DATA ANALYTICS & MACHINE LEARNING GPU OPERATOR CPU AI TRAINING & INFERENCE CONTAINERS GPU GPUDIRECT RDMA PROFESSIONAL VISUALIZATION DPU vm MIG VMWARE CLOUD FOUNDATION WITH TANZU PRIVATE CLOUD VIRTUAL MACHINES STORAGE ENTERPRISE APPLICATIONS ACCELERATED AI ALONGSIDE ENTERPRISE APPS VCS NETWORKING#26NVIDIA CLARA DISCOVERY $1.25T Pharmaceutical Industry | $2B R&D Per Drug | 12½/2 Years To Market | 90% Failure Rate GENOMICS Clara Parabricks RAPIDS Biological Target Chemical Compounds STRUCTURE CryoSPARC, Relion AlphaFold Literature 0(1060) Foot in a prolonephrits SEARCH RAPIDS 0(10⁹) VERM DOCKING Bodaba all AutoDock RAPIDS NLP way we primary goes were of ver Swansactate w Abos of (1) with blood0/40 dyptve Our colleagues from conte Hamodyached and cydowa ad and we www.Awtor www pive The two to coce 14 day that was ve Biomegatron, BioBERT 0(10²) A state-of-the-art suite of tools for scientists, with a new collection of optimized computational drug discovery applications and frameworks, to discover life-saving drugs SIMULATION Schrodinger NAMD, VMD, ÕpenMM MELD Real World Data Drug Candidate IMAGING Clara Imaging ΜΟΝΑΙ NVIDIA#27NVIDIA OVERVIEW#28NVIDIA - A COMPUTING PLATFORM COMPANY 16. 445 JJJ Headquarters: Santa Clara, CA Headcount: 17,500 NVIDIA pioneered accelerated computing to help solve the most challenging computational problems. The approach is broadly recognized as the way to advance computing as Moore's law ends and Al lifts off. NVIDIA's platform is installed in several hundred million computers, is available in every cloud and from every server maker, powers 346 of the TOP500 supercomputers, and boasts 2.3 million developers. H#29Brief History NVIDIA AT A GLANCE Accelerated Computing Pioneer 1993: Founded by Jensen Huang, Chris Malachowsky, and Curtis Priem 1999: IPO on NASDAQ at $12 (prior to 4 stock splits, now 12:1) 2001: Xbox win; fastest semiconductor company to reach $1B in sales 2006: Unveils CUDA architecture, expanding to scientific computing 2009: Inaugural GPU Technology Conference (GTC) 2016: Introduces first products for Al and autonomous driving Recognitions Harvard Business Review's The CEO 100 Fortune's Best Places to Work MIT Tech Review's 50 Smartest Companies Fortune's World's Most Admired Companies Forbes JUST 100 Best Corporate Citizens Dow Jones Sustainability Index $5.0B $6.9B Revenue by Market Platform $9.7B 1999 GM 30%+ $11.7B $10.9B $7.8B FY16 FY17 FY18 FY19 FY20 YTD FY20 YTD FY21 2014 GM 50%+ GAMING $11.7B PRO VIZ ARCHITECTURE From Chip Vendor to Computing Platform Health- care HPC Al CUDA-X CUDA SYSTEMS Gaming Trans- portation YTD FY21 GM 60%+ Data Center ■ ProViz ■Auto ■OEM/IP Smart City/IOT Robotics DATA CENTER 29 NVIDIA#30Gaming 00000 ff GROWTH DRIVERS se H- 12280H Hobeant AI AR/VR Self-driving Cars 30 NVIDIA#31NVIDIA RTX $8B 2020 Revenue* 18% Trailing 5-year CAGR *Trailing 4-quarters through F3Q 2021 outlook for Gaming and Professional Visualization market platforms COMPUTING FOR THE AGE OF AI NVIDIA HPC $10B NVIDIA HYPERSCALE AI 000000 co $45B NVIDIA ENTERPRISE AI CREDIT CARD S 1234 5615 $30B M Data Center Total Addressable Market by 2024 NVIDIA Hyperscale Al includes estimated Total Addressable Market for accelerated computing platforms used in Hyperscale/ Cloud. Source: NVIDIA estimates, incorporating data from Counterpoint, Dell'Oro, Gartner, IDC, THS, Hyperion and Strategy Analytics NVIDIA EDGE AI $15B NVIDIA#32FY20 Revenue $5.52B, 3-year CAGR of 11% Strong market position and technology leadership Compounded long-term unit and ASP growth 200M+ gamers on our platform Strong Gaming ecosystem Multiple secular growth drivers: expanding population of gamers, eSports, VR, rising production value of games, gaming and prosumer laptops Gaming 51% of FY20 Rev OUR CORE BUSINESSES FY20 Revenue of $2.98B, 3-year CAGR of 53% Leader in deep learning/Al - used by all major cloud computing providers and thousands of enterprises Leader in HPC - in 8 of the top 10 and 2/3rds of the top 500 fastest supercomputers Multiple secular growth drivers: fast growing adoption of Al in every major industry; rising compute needs unmet by conventional approaches such as x86 CPUs; Mellanox networking Data Center 27% of FY20 Rev FY20 Revenue of $1.21B, 3-year CAGR of 13% 90%+ market share in graphics for workstations Diversified end markets, e.g. media & entertainment, architecture, engineering & construction, public sector Strong software ecosystem Multiple secular growth drivers: expanding creative & design workflows, mobile workstations, rising adoption of AR/VR across industries Professional Visualization 11% of FY20 Rev FY20 Revenue of $700M, 3-year CAGR of 13% Current revenue driven largely by infotainment Future growth expected to be driven largely by Autonomous Vehicle (AV) solution offering full hardware & software stack Large secular growth opportunity: autonomous vehicles estimated to drive a $25B TAM for the AV computing stack by 2025 Automotive 6% of FY20 Rev ASP Average Selling Price. Gamers are defined as consumers who purchase our GPUs to play video games. 200M+ gamers on our platform as of August 2020. FY20 ended 1/26/2020. 32 NVIDIA#336 F1H16 15 44 7 OO 54 42 17 7 Gaming Data Center ■ ProViz ■Auto ■ OEM / IP STRONG, PROFITABLE GROWTH F1H21 Gaming Data Center ■ ProViz ■Auto ■ OEM / IP Business Mix (%) 43 12,000 10,000 8,000 6,000 4,000 2,000 0 Revenue ($M) -Gross Margin 57% 22% 59% 32% 60% 37% Operating Margin 62% 38% FY16 FY17 FY18 FY19 63% 34% FY20 80% 70% 60% 50% 40% 30% 20% 12,000 10,000 8,000 6,000 4,000 2,000 0 Revenue ($M) Sustained Profitability (showing non-GAAP margins) 61% 32% -Gross Margin YTD FY20 -Operating Margin 66% 40% YTD FY21 85% 33 70% 55% 40% 25% Refer to Appendix for reconciliation of Non-GAAP measures NVIDIA.#34WHY ACCELERATED COMPUTING? Advancing Computing in the Post-Moore's Law Era The world's demand for computing power continues to grow exponentially, yet CPUs are no longer keeping up as Moore's Law has ended. NVIDIA pioneered GPU-accelerated computing to solve this challenge. Optimizing across the entire stack - from silicon to software - allows NVIDIA to advance computing in the post-Moore's Law era for large and important markets: Gaming, Pro Viz, High Performance Computing (HPC), Al, Cloud, Transportation, Healthcare, Robotics, and the Internet of Things (IOT). 107 105 103 1980 1990 GPU PERFORMANCE 2000 CPU PERFORMANCE 2010 2020 34 NVIDIA#35WORLD LEADER IN ACCELERATED COMPUTING Our Four Market Platforms & Key Brands Gaming GeForce GPUs for PC Gamers Data Center DGX/HGX/EGX for HPC/Al compute Mellanox for networking Professional Visualization Quadro for Workstations Auto DRIVE for Autonomous Vehicles 35 NVIDIA#3618% CAGR $2,818 FY16 $4,060 FY17 $5,513 FY18 $6,246 FY19 Revenue ($M) GAMING GeForce - The World's Largest Gaming Platform $5,518 FY20 #1 in PC gaming with more than 3X the revenue of the other major GPU vendor Expanding the market with gaming laptops and cloud gaming Powering the Nintendo Switch console Highlights TX200 BATTLEFIELE FORTNITE 200M+ Gamers on GeForce 36 NVIDIA.#37$339 FY16 $830 FY17 72% CAGR $1,932 FY18 $2,932 FY19 Revenue ($M) $2,983 FY20 DATA CENTER High Performance Computing (HPC) and Al 2.5M 2.0M 1.5M 1M 500K 0 2005 2010 2015 2020 Registered NVIDIA Developers (-) Alibaba Cloud Azure Google Cloud Platform ORACLE CLOUD aws Baidu Cloud IBM Cloud Tencent Cloud Every Major Cloud Provider 6% NVIDIA Share of New Top 500 Systems 24% 34% 41% 70% SC16 SC17 SC18 SC19 SC20 In 8 of top 10 Supercomputers Worldwide; #1 in US, China, Europe, India, Saudi Arabia, and academia SC20 Results Include MLNX 90%+ Share of Accelerators in Supercomputing 37 NVIDIA#38$750 FY16 13% CAGR $835 FY17 $934 FY18 $1,130 FY19 Revenue ($M) PROFESSIONAL VISUALIZATION $1,212 FY20 ANSYS SPEOS Workstation Graphics Oblender P KeyShot NOTCH Builder Remington SUBSTANCE u D AAUTODESK ARNOLD OS RENDER Lr MODO ENSCAPE DAZ STUDIO SIEMENS NX SUBSTANCE PAINTER Ⓒvray Iray 8 AUTODESK MAYA SKIDO S CATIA B COTHEA nommen SOLIDWORKS I Visualize VRED 3 50+ Applications Unlocking New Markets AUTODESK FLAME Dn Foundry 6 REDSHIFT SUBSTANCE ALCHEMIST unity weta Accelerated Rendering Simulation and Sci Viz QUADRO AR/VR Virtual Workstations O Data Science 40M Designers and Creatives 38 NVIDIA.#39$320 FY16 22% CAGR $487 FY17 $558 FY18 $641 FY19 Revenue ($M) $700 FY20 AUTO Infotainment and Autonomous Vehicles 80 70 60 50 40 30 20 10 0 42 Cars 7 26 Trucks Tier 1s 24 15 33 76 Robo taxis Mapping Sensors Software NVIDIA DRIVE Partners CA TOYOTA VOLVO DIDI XPENG MERCEDES-BENZ Continental ZF tu Simple TENE Strong Partnership / Ecosystem 39 NVIDIA#40LARGE AND DIVERSE CUSTOMER BASE Reaching Hundreds of Millions of End Users Through Hundreds of Customers Reaching 200M+ PC gamers Every Major PC OEM/ODM Every Major Graphics Card Manufacturer Gaming aws Google Cloud Cloud 2 Alibaba Group FOXCONN IBM Cloud HPC Piz ORNL LLNL Summit Sierra Daint Vertical Industry UNITED STATES POSTAL SERVICE Azure Data Center 199 8 ABCI Walmart 70 PORSCHEI 40M Designers/Creatives 20M Enterprise Users Pro Visualization Audi Largest Customer 11% of Total Revenue Over Past 3 Fiscal Years Auto B M 4 VOLVO 40 NVIDIA.#41FINANCIALS#42ww$ $mm $2,818 FY16 $750 FY16 ANNUAL REVENUE BY MARKET PLATFORM $4,060 FY17 $835 Gaming FY16-20 CAGR - 18% FY17 $5,513 FY18 Pro Visualization FY16-20 CAGR - 13% $934 FY18 $6,246 FY19 $1,130 FY19 $5,518 FY20 $1,212 FY20 $mm $mm $339 FY16 $320 FY16 FY16-20 CAGR - 72% $830 FY17 Data Center FY17 $1,932 FY18 Auto FY16-20 CAGR - 22% $487 $558 FY18 $2,932 FY19 $641 FY19 $2,983 FY20 $700 FY20 42 NVIDIA.#43ww$ $mm $1,305 FY16 $1,089 FY16 ANNUAL CASH & CASH FLOW METRICS ADJUSTED EBITDA (NON-GAAP) $2,392 FY17 $1,496 $3,803 FREE CASH FLOW FY17 FY18 $2,909 FY18 $4,662 FY19 $3,143 FY19 $4,110 FY20 $4,272 FY20 $mm $mm $1,175 FY16 $5,037 FY16 OPERATING CASH FLOW $1,672 FY17 $6,798 FY17 $3,502 FY18 CASH BALANCE $7,108 $3,743 FY19 $7,422 $4,761 FY20 $10,897 FY18 FY19 FY20 Cash balance is defined as cash and cash equivalents plus marketable securities 43 NVIDIA#44Revenue Adjusted EBITDA Key Credit Metrics Free Cash Flow Cash & Cash Equivalents and Marketable Securities Principal Value of Debt Net Cash CONSERVATIVE FINANCIAL POLICY Principal Value of Debt / Adjusted EBITDA FY20 $10.92B $4.11B $4.27B $10.90B $2.00B $8.90B 0.5x Financial Policy Highlights Commitment to maintain our historically modest leverage, consistent with investment grade credit ratings Disciplined capital return policy Solid balance sheet with substantial liquidity, and positive net cash position Disciplined approach to M&A Source: SEC filings and public disclosures 1 Adjusted EBITDA and Free Cash Flow are Non-GAAP measures. Refer to Appendix for reconciliation of Non-GAAP measures 2 Net Cash is defined as Cash & Cash Equivalents and Marketable Securities less principal value of debt Historical Debt / Adjusted EBITDA 1.4 1.2 1 0.8 0.6 0.4 0.2 0 FY16 FY17 FY18 FY19 FY20 44 NVIDIA#45Create a Leading Workplace glassdoor 2020 BEST PLACES TO WORK Best Places to Work: Employee's Choice GLASSDOOR Dow Jones Sustainability Indexes Member DOW JONES SUSTAINABILITY INDEX BEST PLACES TO WORK 2020 for LGBTQ Equality CORPORATE EQUALITY INDEX Best Places to Work for LGBT equality HUMAN RIGHTS CAMPAIGN JUST FOR WORKERS IN SEMICONDUCTORS & EQUIPMENT Forbes JUST100 List FORBES FAST COMPANY NVIDIA'S COMMITMENT TO ESG Forbes 2020 Most Innovative Companies in Al/Machine Learning FAST COMPANY CRO 100 Best Corporate Citizens CRO MAGAZINE "Nvidia Stock Wows Wall Street And ESG Investors Too As Best ESG Company" INVESTOR'S BUSINESS DAILY BEST ESG COMPANIES ENVIRONMENTAL, SOCIAL & GOVERNANCE SEMICONDUCTORS & COMPUTER HARDWARE Investor's Business Daily Oct. 26, 2020 Tackle Climate Change 65% global electricity use from renewable energy by FY25 The GREEN 500 #1 on the Green500 list, 26/30 super computers NVIDIA GPU powered. 45 NVIDIA.#46NVIDIA GPUS POWER 26 OUT OF THE 30 MOST ENERGY-EFFICIENT MACHINES ON THE TOP500 Accelerated computing is the way forward for powerful & efficient supercomputers NVIDIA GPUs and/or InfiniBand power 8 of top 10 systems on latest TOP500 list Fastest systems in US, China, Europe, India, Saudi Arabia, and academia Jiluluns IBM EX#47RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES#48RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES ($ IN MILLIONS) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 NON-GAAP OPERATING INCOME (A) $1,125 $2,221 $3,617 $4,407 $3,735 A. Refer to Appendix herein for reconciliation of Non-GAAP operating income to GAAP operating income GAAP DEPRECIATION & AMORTIZATION 197 187 199 262 381 AMORTIZATION OF ACQUISITION- RELATED INTANGIBLES (17) (16) (13) (7) (6) ADJUSTED EBITDA $1,305 $2,392 $3,803 $4,662 $4,110#49RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) FY 2016 FY 2017 FY 2018 FY 2019 NON-GAAP OPERATING INCOME FY 2020 $1,125 $2,221 $3,617 $4,407 PRODUCT STOCK-BASED COMPENSATION WARRANTY (A) (B) (205) (248) (391) (557) (20) I $3,735 (844) A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of warranty charge associated with a product recall C. Consists of amortization of acquisition-related intangible assets, transaction costs, compensation charges, other credits related to acquisitions, and other costs D. Comprises of legal settlement costs, contributions, and restructuring and other charges ACQUISITION- RELATED AND OTHER COSTS (C) (22) (16) (13) (2) (30) OTHER (D) (131) (23) (3) (44) (15) GAAP OPERATING INCOME $747 $1,934 $3,210 $3,804 $2,846#50RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) YTD Q3 FY20 YTD Q3 FY21 NON-GAAP OPERATING INCOME $2,515 $4,714 STOCK-BASED COMPENSATION (A) (624) (981) ACQUISITION- RELATED AND OTHER COSTS (B) (22) (669) A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges C. Comprises of legal settlement costs OTHER (C) (13) (39) GAAP OPERATING INCOME $1,856 $3,025#51RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) Q3 FY2021 Revenue Gross profit Gross margin Research and development expense Sales, general and administrative expense Operating expense Operating income ($ IN MILLIONS) Net income Diluted EPS STOCK-BASED NON-GAAP COMPENSATION (A) $4,726 $3,095 65.5% $813 $288 $1,101 $1,993 (383) $1,834 (383) $2.91 (0.61) A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Primarily consists of amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges C. Comprises of legal settlement costs, losses from non-affiliated investments, and interest expense related to amortization of debt discount (28) (0.6) 232 123 355 ACQUISITION- RELATED ITEMS OTHER TAX IMPACT OF AND OTHER COSTS (C) ADJUSTMENTS (B) (86) (1.8) 2 104 106 (192) (192) (0.30) (21) (0.5) (20) (25) (0.04) I I T I I 102 0.16 GAAP $4,726 $2,960 62.6% $1,047 $515 $1,562 $1,398 $1,336 $2.12#52RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 NON-GAAP GROSS MARGIN 56.8% 59.2% 60.2% 61.7% 62.5% A. Stock-based compensation charge was allocated to cost of goods sold B. Consists of warranty charge associated with a product recall C. Consists of legal settlement costs STOCK-BASED COMPENSATION (A) (0.3) (0.2) (0.3) (0.2) (0.4) PRODUCT WARRANTY (B) (0.4) I OTHER (C) (0.2) (0.3) (0.1) GAAP GROSS MARGIN 56.1% 58.8% 59.9% 61.2% 62.0%#53RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) Q3 FY2020 Q4 FY2020 Q1 FY2021 Q2 FY2021 NON-GAAP GROSS MARGIN Q3 FY2021 A. Stock-based compensation charge was allocated to cost of goods sold B. Consists of amortization of intangible assets and inventory step-up C. Consists of legal settlement costs 64.1% 65.4% 65.8% 66.0% 65.5% STOCK-BASED COMPENSATION (A) (0.5) (0.4) (0.7) (0.4) (0.6) ACQUISITION- RELATED ITEMS AND OTHER COSTS (B) T T (6.3) (1.8) OTHER (C) (0.1) (0.5) (0.5) GAAP GROSS MARGIN 63.6% 64.9% 65.1% 58.8% 62.6%#54RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) YTD Q3 FY20 YTD Q3 FY21 NON-GAAP GROSS MARGIN 61.3% 65.7% A. Stock-based compensation charge was allocated to cost of goods sold B. Consists of amortization of intangible assets and inventory step-up C. Consists of legal settlement costs STOCK-BASED COMPENSATION (A) (0.4) (0.5) ACQUISITION- RELATED ITEMS AND OTHER COSTS (B) (2.8) OTHER (C) (0.1) (0.4) GAAP GROSS MARGIN 60.8% 62.0%#55RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) FY 2016 FY 2017 FY 2018 FY 2019 NON-GAAP STOCK-BASED OPERATING MARGIN FY 2020 22.5% 32.1% 37.2% 37.6% PRODUCT COMPENSATION WARRANTY (A) (B) 34.2% (4.2) (3.6) (4.0) (4.7) (0.4) (7.7) A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of warranty charge associated with a product recall C. Consists of amortization of acquisition-related intangible assets, transaction costs, compensation charges, other credits related to acquisitions, and other costs D. Comprises of legal settlement costs, contributions, and restructuring and other charges I ACQUISITION- RELATED AND OTHER COSTS (C) (0.4) (0.2) (0.2) (0.3) OTHER (D) (2.6) (0.3) (0.4) (0.1) GAAP OPERATING MARGIN 14.9% 28.0% 33.0% 32.5% 26.1%#56RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) YTD Q3 FY20 YTD Q3 FY21 NON-GAAP OPERATING MARGIN 32.2% 40.4% STOCK-BASED COMPENSATION (A) (7.9) (8.4) ACQUISITION- RELATED AND OTHER COSTS (B) (0.3) (5.7) A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense B. Consists of amortization of intangible assets, inventory step-up, transaction costs, and certain compensation charges C. Comprises of legal settlement costs OTHER (C) (0.2) (0.4) GAAP OPERATING MARGIN 23.8% 25.9%#57RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 NET CASH PROVIDED BY OPERATING ACTIVITIES $1,175 $1,672 $3,502 $3,743 $4,761 PURCHASES OF PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS (86) (176) (593) (600) (489) FREE CASH FLOW $1,089 $1,496 $2,909 $3,143 $4,272#58RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK Q4 FY2021 Outlook 62.8% ($ in millions) GAAP gross margin Impact of stock-based compensation expense, acquisition-related costs, and other costs Non-GAAP gross margin GAAP operating expenses Stock-based compensation expense, acquisition-related costs, and other costs Non-GAAP operating expenses 2.7% 65.5% $1,640 (460) $1,180