AMD Investor Day Presentation Deck slide image

AMD Investor Day Presentation Deck

Cautionary Statement This presentation contains forward-looking statements concerning Advanced Micro Devices, Inc. (AMD) including, but not limited to, the expected benefits of AMD's acquisition of Xilinx, Inc., including new markets and customer opportunities; the expected benefits of AMD's acquisition of Pensando Systems; TAM over the next five years and AMD's opportunity; AMD's strategic pillars; AMD accelerating financial momentum; AMD's long-term financial priorities and model, including potential drivers; and AMD being positioned for growth, 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 "would," "may," "expects," "believes," "plans," "intends," "projects" and other terms with similar meaning. Investors are cautioned that the forward-looking statements in this presentation are based on current beliefs, assumptions and expectations, speak only as of the date of this presentation and involve risks and uncertainties that could cause actual results to differ materially from current expectations. Such statements are subject to certain known and unknown risks and uncertainties, many of which are difficult to predict and generally beyond AMD's control, that could cause actual results and other future events to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Investors are urged to review in detail the risks and uncertainties in AMD's Securities and Exchange Commission filings, including but not limited to AMD's most recent reports on Forms 10-K and 10-Q. NON-GAAP FINANCIAL MEASURES In this presentation, in addition to historical GAAP financial results, AMD has provided historical non-GAAP financial measures including non-GAAP gross margin, non-GAAP operating margin, non-GAAP earnings per share and free cash flow. AMD uses a normalized tax rate in its computation of the non-GAAP income tax provision to provide better consistency across the reporting periods. For fiscal year 2019, 2020 and 2021, AMD used a non-GAAP tax rate of 3%, 3%, and 15%, respectively, which excludes the tax impact of pre-tax non-GAAP adjustments. AMD is providing these financial measures because it believes this non-GAAP presentation makes it easier for investors to compare its operating results for current and historical periods and also because AMD believes it assists investors in comparing AMD's performance across reporting periods on a consistent basis by excluding items that it does not believe are indicative of its core operating performance. The non-GAAP financial measures disclosed in this presentation should be viewed in addition to and not as a substitute for or superior to AMD's reported results prepared in accordance with GAAP and should be read only in conjunction with AMD's Consolidated Financial Statements prepared in accordance with GAAP. These non-GAAP financial measures referenced are reconciled to their most directly comparable GAAP financial measures in the Appendices at the end of this presentation. This presentation contains forward-looking non-GAAP measures concerning AMD's long-term financial model such as gross margin, operating expenses, operating margin and free cash flow margin. These forward-looking non-GAAP measures are based on current expectations, assumptions and beliefs that involve numerous risks and uncertainties. Adjustments to arrive at the GAAP financial outlook typically include stock-based compensation, amortization of acquired intangible assets, income tax provision, equity income in investee, and other non-recurring items such as loss on debt redemption/conversion, impairment charges and acquisition-related costs. The timing and impact of such adjustments are dependent on future events that are typically uncertain or outside of AMD's control; therefore, reconciliation to equivalent GAAP measures is not practicable at this time. All statements made in this presentation are based on current expectations as of June 9, 2022. AMD undertakes no intent or obligation to publicly update or revise any statement in this presentation whether as a result of new information, future events or otherwise, except to the extent that disclosure may be required by law.
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