#1NVIDIA® INVESTOR PRESENTATION 1Q FY2021 May 21, 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 timing for including Mellanox in our financials and its impact; the impact of COVID-19 and our response; our use of cash; NVIDIA's financial outlook for the second quarter of fiscal 2021, including the impact of the Mellanox acquisition; our operating expenses for fiscal 2021; the benefits and impact of the Mellanox acquisition; the number of Al interactions; our growth drivers, including, but not limited to gaming, AI, AR/VR, self-driving cars, data center, professional visualization and automotive; accelerated computing; the number of end users and customers for our products and us reaching them; sustained growth in our profitability and businesses; the number of professional designers and creators; 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 net, non-GAAP other 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". 2 NVIDIA.#3CONTENT Q1 FY2021 Earnings Summary Mellanox Acquisition GTC 2020 Announcements NVIDIA Business Overview NVIDIA Financials GAAP vs non-GAAP Reconciliation#4Q1 FY21 EARNINGS SUMMARY#5HIGHLIGHTS Strong results, led by Data Center and Gaming Total revenue up 39% y/y to $3.08B, ahead of outlook of $3.00B ▸ Data Center up 80% y/y to a record $1.14B ► A100 in full production, fastest ramp in history; contributed to Q1 revenue Up to 20x faster vs. V100, biggest generational performance leap ever ‣ Unifies training & inference; adds multi-instance GPU capability to enable elastic data center Mellanox acquisition closed on April 27, strengthens NVIDIA's Data Center strategy Mellanox will be included in NVIDIA financials starting with Q2 FY2021 results For the March quarter, standalone Mellanox revenue grew 40% y/y to a record $429M Immediately accretive to non-GAAP gross margins, non-GAAP EPS, and free cash flow LO 5 NVIDIA.#6Q1 FY2021 FINANCIAL SUMMARY $3,105 $3,080 $3,014 GAAP Non-GAAP Q1 FY21 Y/Y Q/Q Q1 FY21 Y/Y Q/Q Revenue $3,080 +39% -1% $3,080 +39% -1% $2,579 65.4% 65.8% 64.1% Gross Margin 65.1% +670 bps +20 bps 65.8% +680 bps +40 bps $2,220 60.1% 59.0% Operating Income $976 +173% -1% $1,205 +116% -1% Net Income $917 +133% -3% $1,120 +106% -4% Diluted EPS $1.47 +130% -4% $1.80 +105% -5% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Revenue ($M) -Non-GAAP GM Cash Flow from Ops $909 +26% -38% $909 +26% -38% No difference between GAAP and Non-GAAP Cash Flow from Operations and Revenue 6 NVIDIA.#7COVID-19 RESPONSE Employees - Committed to keep every job & accelerating annual raises; employees working from home very effectively Customers - Able to keep up with customer demand while working through industry-wide supply chain disruptions and logistics challenges Community - NVIDIA and its employees have committed to donate more than $10M to those currently in need World - Offered Parabricks genomics stack free-of-charge; joined COVID-19 High Performance Computing Consortium; supported Folding@home project#8$1,055 $1,313 GAMING Revenue ($M) $1,659 10% q/q on seasonality $1,491 $1,339 Highlights Strong demand across all major products Overcame COVID-19 related closures in iCafes and retail outlets with stronger e-tail demand 'Stay-at-home' driving > 50% increase in hours played on GeForce platform Launched RTX on Minecraft - the most popular PC game in the world. Released DLSS 2.0 Al algorithm, effectively doubling game performance Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 00 8 NVIDIA.#9Revenue ($M) $726 $634 $655 Q1FY20 DATA CENTER 80% y/y and 18% q/q $968 $1,141 Highlights Record quarter, exceeded the $1 billion mark for the first time Broad-based demand across hyperscale and vertical industries New A100 GPUs contributed to quarter with strong adoption across leading hyperscalers Solid visibility into Q2 Starting with Q2 FY2021, Data Center will incorporate Mellanox revenue Q2FY20 Q3FY20 Q4FY20 Q1FY21 9 NVIDIA.#10PROFESSIONAL VISUALIZATION Revenue ($M) Highlights 15% y/y 7% q/q on seasonality $324 $331 $307 $291 $266 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Continued strong demand for laptop workstations Turing adoption growing, now approximately 50% of sales Stronger demand verticals included healthcare, media & entertainment, and higher education Supported COVID-19 related applications with end customers such as Siemens, Oxford Nanopore, and Caption Health Remote workforce initiatives boosted demand from customers such as Disney 10 NVIDIA.#11$166 Q1FY20 $209 AUTOMOTIVE Revenue ($M) 7% y/y and 5% q/q on lower legacy infotainment revenue $162 $163 $155 Highlights Xpeng introduced the P7, an all-electric sports sedan with L3 automated driving features, powered by NVIDIA DRIVE AGX Xavier; production deliveries begin next month Announced that the NVIDIA DRIVE AGX Orin is powered by Ampere, our next generation GPU architecture ► Announced that the NVIDIA DRIVE platform extends from high performance L5 to very low power ADAS - all on a single scalable, software-defined architecture Q2FY20 Q3FY20 Q4FY20 Q1FY21 11 NVIDIA.#12SOURCES & USES OF CASH Cash Flow from Operations ($M) $936 $720 26% y/y on strong earnings growth partially offset by changes in working capital $1,640 38% q/q on changes in working capital $1,465 $909 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Highlights Returned $98M to shareholders in the form of dividends Invested $155M in capex Raised $5B in notes with maturities of 10-40 years, at a blended rate of 3.3% Ended quarter with $16.4B in gross cash and $7.0B in debt, $9.4B of net cash ▸ After the quarter's close, funded Mellanox acquisition with approximately $7B in cash Gross cash is defined as cash/cash equivalents & marketable securities. Debt is defined as principal debt. Net cash is defined as gross cash less debt. 12 NVIDIA.#13Q2 FY2021 OUTLOOK Revenue - $3.65 billion, plus or minus two percent Includes a full quarter of Mellanox revenue Automotive expected to decline about 40% q/q Gross Margin -58.6% GAAP and 66.0% non-GAAP, plus or minus 50 basis points Operating Expense - $1.52 billion GAAP and $1.04 billion non-GAAP FY2021 operating expense - approx. $5.7 billion GAAP and $4.1 billion non-GAAP, including 3 quarters of Mellanox Other Income & Expenses - net loss of $50 million GAAP and $45 million non-GAAP Tax Rate - GAAP and non-GAAP both approx. 9% Capital Expenditure - approximately $225 to $250 million#14MELLANOX ACQUISITION#15NVIDIA® M Mellanox® TECHNOLOGIES Strategic Highlights Unites two of the world's leading companies in high performance & data center computing NVIDIA computing + Mellanox networking will enable higher performance and lower operating costs for customers Full-stack offerings from processors to software will advance next-gen data centers Common culture of technology and performance leadership Financial Highlights $7B transaction value, funded with cash Acquisition closed on April 27, 2020 and will start contributing to NVIDIA financials in Q2 FY21 Adds >2,600 employees and trailing 4-qtr revenue of $1.5B, growing at 27%+ y/y Expected to be immediately accretive to non-GAAP gross margin, non-GAAP EPS and free cash flow 15 NVIDIA.#16MELLANOX Strong Financial Momentum Revenue Growth and Profitability Growth Across Both InfiniBand and Ethernet 22% Y/Y Increase $1,331 $1,331 $429 $380 $1,089 $335 $305 $310 69.1% 69.1% 68.0% 67.9% 68.1% Q1CY19 Q2CY19 Q3CY19 Q4CY19 Q1CY20 Revenue (M) -GM Note: Figures are in millions ($). GM = Non-GAAP Gross Margin. Quarters are calendar quarters. CY18 CY19 ■ Ethernet InfiniBand Others $1,089 CY19 Switch Systems CY18 ■Cables, Others. ■ Boards ICS 16 NVIDIA.#17GTC 2020 ANNOUNCEMENTS#18M Mellanox TECHNOLOGIES LE CHИGгOGIES GTC 2020 ANNOUNCEMENTS APACHE Spark TensorFlow RAPIDS Magnum 10 cuDNN ONNX TensorRT Magnum 10 Triton 為 Data-Center-Scale Computing Omniverse RTX Server A100 and DGX A100 NVIDIA AI EGX and ISAAC B M W#19Peak ANNOUNCING NVIDIA A100 GREATEST GENERATIONAL LEAP - 20X VOLTA Measured 310 160 125 310 625 625 1250 00 8 CO 20 20 60 16 V100 FP64 A100 FP64 V100 A100 A100 FP32 TF32 SPARSE V100 A100 A100 FP16 FP16 SPARSE TF32 FP16 V100 A100 A100 INT8 INT8 SPARSE INT8 188-16506-988-442 NVIDIA 54B xtors | 826mm² | TSMC 7N | 40GB Samsung HBM2 | 3rd gen Tensor Core GPU | 600 GB/s NVLink#20Petaflop/s - Days 1E+03 1E+02 1E+01 1E+00 1E-01 AlexNet 1E-02 CHALLENGES: ACCELERATING BIG AND SMALL Computing For Training Al Megatron-BERT 3000x Turing NLG Megatron-GPT2 ResNet Al Interactions Per Day GPT-2 Millions of Interactions Billions of Searches BERT 10s Billions of Ecom Recommendations 00 Millions of Medical Scans 000 Billions of photos tagged 100s of Billions Events Thousands Ads / Person For Cyber Threat 100s of Millions Fin Txn For Fraud 1E-03 2012 2013 2014 2015 2016 2017 2018 2019 2020 3000X Higher Compute Required to Train Largest Models Since Volta Every Al Powered Interaction Needs Varying Amount of Compute#21NVIDIA OVERVIEW#22NVIDIA - A COMPUTING PLATFORM COMPANY Headquarters: Santa Clara, CA Headcount: 13,775 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 136 of the TOP500 supercomputers, and boasts 1.6 million developers.#23NVIDIA AT A GLANCE Accelerated Computing Pioneer Revenue by Market Platform Brief History 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 $11.7B $10.9B ■Gaming $9.7B ■ Data Center $6.9B $5.0B ProViz Auto ■ OEM/IP FY16 FY17 FY18 FY19 FY20 Fiscal Year End Jan 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 From Chip Vendor to Computing Platform 1999 GM 30%+ GTX 980Ti 2014 GM 50%+ GAMING HPC PRO VIZ ΑΙ Health- care Trans- portation Smart City/IOT Robotics CUDA-X CUDA 11 ARCHITECTURE SYSTEMS DATA CENTER 2019 GM 60%+ 23 NVIDIA.#24w Gaming GROWTH DRIVERS >>1-1-1- NVIDIA ΑΙ AR/VR Self-driving Cars 24 24 NVIDIA.#25OUR CORE BUSINESSES FY20 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 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 5 of the top 10 and 136 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 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 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 $25B TAM for the AV computing stack by 2025 Gaming 51% of FY20 Rev Data Center 27% of FY20 Rev Professional Visualization 11% of FY20 Rev Automotive 6% of FY20 Rev ASP = Average Selling Price. Gamers are defined as consumers who purchase our GPUs to play video games. 200M+ gamers on our platform as of March 2020. FY20 ending 1/26/2020. 25 NVIDIA.#26STRONG, PROFITABLE GROWTH FY20 Gaming Data Center ProViz Auto OEM/IP Revenue ($M) -Gross Margin Operating Margin 5 12,000 80% 6 $11.7B $10.9B 10,000 $9.7B 70% 62% 63% 59% 60% 8,000 57% 60% 6 16 FY16 11 00 15 56 27 51 Gaming ■ Data Center ■ProViz Auto ■Gaming Data Center ■ ProViz ■ OEM / IP $6.9B $5.0B 6,000 4,000 2,000 22% Auto 0 ■ OEM / IP FY16 FY17 FY18 FY19 FY20 Business Mix (%) Broad-based Growth 50% 37% 38% 40% 34% 32% 30% 20% FY16 FY17 FY18 FY19 FY20 Sustained Profitability (showing non-GAAP margins) Refer to Appendix for reconciliation of Non-GAAP measures 26 NVIDIA.#27WHY 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 GPU PERFORMANCE 105 103 CPU PERFORMANCE 1980 1990 2000 2010 2020 22 27 NVIDIA.#28WORLD LEADER IN ACCELERATED COMPUTING Our Four Market Platforms & Key Brands NVIDIA NVIDIA Gaming GeForce GPUs for PC Gamers Data Center Tesla for HPC/AI VETS Professional Visualization Auto Quadro for Workstations DRIVE for Autonomous Vehicles 28 NVIDIA.#29GAMING GeForce - The World's Largest Gaming Platform $6,246 18% CAGR $5,513 $5,518 $2,818 $4,060 FY16 FY17 FY18 FY19 FY20 Revenue ($M) #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 RTX 208 FORTNITE น WARCRAFT BATTLEFIELD grand Ghert UGO PUNCERT 200M+ Gamers on GeForce 29 NVIDIA.#30$339 $830 DATA CENTER High Performance Computing (HPC) and Al 2.0M $2,932 $2,983 72% CAGR $1,932 1.5M 1M 500K 0 aws Alibaba Cloud 50% NVIDIA Share of New Top 500 Systems 40% ▲ Azure Baidu Cloud 30% 24% 20% 41% 34% 10% 6% Google Cloud Platform IBM Cloud 0% SC16 SC17 SC18 SC19 FY16 FY17 FY18 FY19 FY20 0 2005 ORACLE CLOUD Tencent Cloud 2010 2015 2020 Revenue ($M) Registered NVIDIA Developers Every Major Cloud Provider #1 and #2 Supercomputers Worldwide; #1 in Europe; #1 in Japan 90%+ Share of Accelerators in Supercomputing 30 NVIDIA.#31PROFESSIONAL VISUALIZATION Workstation Graphics AUTODESK ARNOLD AUTODESK MAYA AUTODESK FLAME Accelerated Rendering D blender DS RENDER DAZ STUDIO S CATIA Dn DENDIO5 ENSCAPE GICIDO Foundry ANSYS SPEOS $1,212 13% CAGR $1,130 $934 $835 $750 (N) MODO KeyShot NVIDU NOTCH Builder Lr Iray octane ender REDSHIFT Remington SIEMENS NX BS SOLIDWORKS Visualize SUBSTANCE ALCHEMIST SUBSTANCE DESIGNER SUBSTANCE PAINTER COTHEA unity (ir) FY16 FY17 FY18 FY19 FY20 v-ray VRED weta UNREAL Revenue ($M) 40+ Applications Unlocking New Markets Simulation and Sci Viz QUADRO AR/VR Virtual Workstations Data Science 40M Designers and Creatives 31 NVIDIA.#32$320 AUTO Infotainment and Autonomous Vehicles 80 60 $700 22% CAGR 70 $641 $558 60 60 $487 50 40 40 30 20 20 42 26 24 15 76 TOYOTA KE23097 VOLVO 33 10 7 0 Robo FY16 FY17 FY18 FY19 FY20 Cars Trucks Tier 1s taxis Mapping Sensors Software Revenue ($M) NVIDIA DRIVE Partners MERCEDES-BENZ KOMATSU KOMATSU ● 滴滴 DIDI ZF XPENG SEE THINLAC O SINGULATO Strong Partnership / Ecosystem 32 NVIDIA.#33LARGE AND DIVERSE CUSTOMER BASE Reaching Hundreds of Millions of End Users Through Hundreds of Customers Reaching 200M+ PC gamers Cloud aws Alibaba Group Azure > Google Cloud IBM Cloud GRACLE CLOUD Tencent Cloud Every Major PC OEM/ODM Every Major Graphics Card Manufacturer 70 SCHE 40M Designers/Creatives (11) Audi M HPC ORNL Summit LLNL Sierra Piz Daint ABCI Vertical Industry FOXCONN Walmart >< UNITED STATES POSTAL SERVICE 20M Enterprise Users Pro Visualization H Gaming Data Center Largest Customer 11% of Total Revenue Over Past 3 Fiscal Years Auto W VOLVO 33 NVIDIA.#34FINANCIALS#35$mm $mm ANNUAL REVENUE BY MARKET PLATFORM Gaming Data Center $4,060 $2,818 FY16-20 CAGR - 18% $5,513 $6,246 $5,518 $mm $830 $339 FY16-20 CAGR - 72% $1,932 $2,932 $2,983 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 $835 $750 Pro Visualization FY16-20 CAGR - 13% $934 $1,212 $1,130 աաց Auto FY16-20 CAGR - 22% $487 $700 $641 $558 $320 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 35 NVIDIA.#36աաց OPERATING CASH FLOW $4,761 $3,743 $3,502 ANNUAL CASH & CASH FLOW METRICS ADJUSTED EBITDA (NON-GAAP) $4,662 $4,110 $3,803 $2,392 $1,305 FY16 FY17 աաց FY18 FREE CASH FLOW աաց $1,672 $1,175 FY19 FY20 FY16 FY17 $4,272 $3,143 $2,909 աաց FY18 FY19 FY20 CASH BALANCE $10,897 $6,798 $7,108 $7,422 $5,037 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 $1,089 $1,496 36 NVIDIA.#37CONSERVATIVE FINANCIAL POLICY Key Credit Metrics Financial Policy Highlights Historical Debt / Adjusted EBITDA FY20 Commitment to maintain our 1.4 Revenue $10.92B Adjusted EBITDA $4.11B historically modest leverage, consistent with investment grade credit ratings 1.2 1 Free Cash Flow $4.27B 0.8 Disciplined capital return policy Cash & Cash Equivalents and 0.6 $10.90B Marketable Securities Principal Value of Debt $2.00B Solid balance sheet with substantial liquidity, and positive net cash position 0.4 0.2 Net Cash $8.90B 0 Disciplined approach to M&A FY16 FY17 FY18 FY19 FY20 Principal Value of Debt / Adjusted EBITDA 0.5x Source: SEC filings and public disclosures 1 Adjusted EBITDA and Free Cash Flow are Non-GAAP measures. Refer to Appendix for reconciliation of Non-GAAP measures 2 Net Cash is defined as Cash & Cash Equivalents and Marketable Securities less principal value of debt 32 37 NVIDIA.#38NVIDIA'S COMMITMENT TO ESG Creating a Leading Workplace FAST OMPANY Most Innovative Companies in Al/Machine Learning FAST COMPANY BEST PLACES TO WORK 2020 for LGBTQ Equality 18 COMFORATE EQUALITY INDEX Best Places to Work for LGBT equality HUMAN RIGHTS CAMPAIGN glassdoor 2020 BEST PLACES TO WORK Best Places to Work: Employee's Choice GLASSDOOR FORTUNE 100 BEST COMPANIES TO WORK FOR 2000 100 Best Companies to Work For FORTUNE Tackling Climate Change The GREEN 500 NVIDIA GPUs power 90 percent of the top 30 supercomputers on the Green500 list (as of Nov. 2019). NVIDIA GPUs are 20 to 25 times more energy efficient than traditional CPU servers for Al workloads. CRO 100 Best Corporate Citizens CRO MAGAZINE Dow Jones Sustainability Indexes Dow Jones Sustainability Index MEMBER 65% global electricity use from renewable energy by FY25 38 NVIDIA.#39RECONCILIATION OF GAAP VS NON-GAAP FINANCIAL MEASURES#40RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES NON-GAAP ($ IN MILLIONS) OPERATING INCOME (A) GAAP DEPRECIATION & AMORTIZATION AMORTIZATION OF ACQUISITION- RELATED INTANGIBLES ADJUSTED EBITDA FY 2016 $1,125 197 (17) $1,305 FY 2017 $2,221 187 (16) $2,392 FY 2018 $3,617 199 (13) $3,803 FY 2019 $4,407 262 (7) $4,662 FY 2020 $3,735 381 (6) $4,110 A. Refer to Appendix herein for reconciliation of Non-GAAP operating income to GAAP operating income#41RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) NON-GAAP STOCK-BASED PRODUCT OPERATING COMPENSATION WARRANTY INCOME (B) ACQUISITION- RELATED AND OTHER COSTS OTHER (D) GAAP OPERATING (A) INCOME (C) FY 2016 $1,125 (205) (20) (22) (131) $747 FY 2017 $2,221 (248) (16) (23) $1,934 FY 2018 $3,617 (391) (13) (3) $3,210 FY 2019 $4,407 (557) (2) (44) $3,804 FY 2020 $3,735 (844) (30) (15) $2,846 A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense. B. Consists of warranty charge associated with a product recall. C. Consists of amortization of acquisition-related intangible assets, transaction costs, compensation charges, other credits related to acquisitions, and other costs. D. Comprises of legal settlement costs, contributions, and restructuring and other charges.#42RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) NON-GAAP STOCK-BASED COMPENSATION (A) ACQUISITION- RELATED ITEMS AND OTHER COSTS (B) OTHER (C) TAX IMPACT OF ADJUSTMENTS GAAP Q1 FY2021 Revenue $3,080 $3,080 Gross profit $2,026 (21) (1) Gross margin 65.8% (0.7) | | Operating expense $821 203 4 ☐ $2,004 65.1% $1,028 Operating income $1,205 (224) (5) | $976 Net income $1,120 (224) (5) (3) 29 $917 Diluted EPS $1.80 (0.36) (0.01) (0.01) 0.05 $1.47 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 acquisition-related intangible assets, transaction costs, and other costs. C. Other comprises of losses from non-affiliated investments and interest expense related to amortization of debt discount#43RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) STOCK-BASED NON-GAAP GROSS MARGIN COMPENSATION (A) PRODUCT WARRANTY (B) OTHER (C) GAAP GROSS MARGIN FY 2016 56.8% (0.3) (0.4) 56.1% FY 2017 59.2% (0.2) | (0.2) 58.8% FY 2018 60.2% (0.3) 59.9% FY 2019 61.7% (0.2) FY 2020 62.5% (0.4) (0.3) 61.2% (0.1) 62.0% 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.#44RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) NON-GAAP GROSS MARGIN STOCK-BASED COMPENSATION (A) OTHER (B) GAAP GROSS MARGIN Q1 FY2020 59.0% (0.2) (0.4) 58.4% Q2 FY2020 60.1% (0.3) | 59.8% Q3 FY2020 64.1% (0.5) 63.6% Q4 FY2020 65.4% (0.4) (0.1) 64.9% Q1 FY2021 65.8% (0.7) 65.1% A. Stock-based compensation charge was allocated to cost of goods sold. B. Consists of legal settlement costs.#45RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) NON-GAAP STOCK-BASED PRODUCT OPERATING COMPENSATION WARRANTY MARGIN (B) ACQUISITION- RELATED AND OTHER GAAP OPERATING OTHER COSTS (D) (A) MARGIN (C) FY 2016 22.5% (4.2) (0.4) (0.4) (2.6) 14.9% FY 2017 32.1% (3.6) | (0.2) (0.3) 28.0% FY 2018 37.2% (4.0) FY 2019 37.6% (4.7) | | (0.2) 33.0% (0.4) 32.5% FY 2020 34.2% (7.7) (0.3) (0.1) 26.1% 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.#46RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES (CONTD.) ($ IN MILLIONS) NET CASH PROVIDED BY OPERATING ACTIVITIES PURCHASES OF PROPERTY AND EQUIPMENT AND INTANGIBLE ASSETS FREE CASH FLOW FY 2016 $1,175 (86) $1,089 FY 2017 $1,672 (176) $1,496 FY 2018 $3,502 (593) $2,909 FY 2019 $3,743 (600) $3,143 FY 2020 $4,761 (489) $4,272#47RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK ($ in millions) GAAP gross margin Impact of stock-based compensation expense, acquisition-related costs, and other costs. Non-GAAP gross margin Q2 FY2021 Outlook 58.6% 7.4% 66.0% GAAP operating expenses $1,515 Stock-based compensation expense, acquisition-related costs, and other costs (475) Non-GAAP operating expenses $1,040 GAAP other expense, net $50 Interest expense from amortization of debt discount and other costs. (5) Non-GAAP other expense, net $45#48RECONCILIATION OF GAAP TO NON-GAAP OUTLOOK (CONTD.) FY2021 ($ in millions) Outlook GAAP operating expenses $5,700 Stock-based compensation expense, acquisition-related costs, and other costs (1,600) Non-GAAP operating expenses $4,100#49MELLANOX RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES AMORTIZATION OF NON-GAAP GROSS MARGIN STOCK-BASED COMPENSATION (A) ACQUIRED INTANGIBLES GAAP GROSS MARGIN Q1 CY2019 68.0% (0.2) (3.2) 64.6% Q2 CY2019 67.9% (0.3) (3.1) 64.5% Q3 CY2019 68.1% (0.3) (2.9) 64.9% Q4 CY2019 69.1% (0.3) (2.6) 66.2% Q1 CY2020 69.1% (0.2) (2.1) 66.8% A. Stock-based compensation charge was allocated to cost of goods sold.