investor day 2013 jen-hsun huang presentation
DESCRIPTION
NVIDIA CEO Jen-Hsun Huang presents at NVIDIA's Annual Investor Day 2013.TRANSCRIPT
JEN-HSUN HUANG CEO & Co-Founder | Annual Investor Day 2013
-
2
4
6
8
10
12
Millions
Tegra Unit Shipments
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Millions
OPEX PC Growth Rate
Q113 Q213 Q313 Q413
Poised for Growth Y/Y u
nit
ship
ments
, %
Non-GAAP, see reconciliation in Appendix Source: Goldman Sachs Research estimates Android, WinRT, Auto, and Embedded
FY11 FY12 FY13 FY14E
-10
-8
-6
-4
-2
0
2
4
6
8
NVIDIA THE VISUAL COMPUTING
COMPANY
NVIDIA The Visual Computing Company
TECHNOLOGY PROCESSORS VISUAL COMPUTING APPLIANCE
MODULES
GAMING ENTERPRISE NEW COMPUTING DEVICES
TARGET END MARKETS
A Computing Revolution
1993 1998 2003 2008 2013
OS M
ark
et
Share
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Source: Gartner, Strategy Analytics
Computing Everywhere
1993 1998 2003 2008 2013 0%
20%
40%
80%
100%
Pro
cess
or
Mark
et
Share
x86 and Cortex Processors Shipped
60%
0
1
2
4
5
3
Pro
cesso
r Ship
ments (B
illions)
Source: Mercury Research, ARM, Internal estimates
Visual computing is more important than ever
We continue to drive our visual
computing leadership
GRID extends GPU computing into server and datacenters
Tegra leverages our GPU strengths
to smart devices
Commitment to long-term profitable growth and capital return
3B+ HD devices by 2015
GPU growth 12% CAGR
$10B+
growth opportunity
$10B+
growth opportunity
20% Rev CAGR from FY10
2.4% dividend yield
Growing Beyond the PC
Revenue excluding chipset products
Growth Strategies Conventional wisdom suggests Moore’s law should have integrated the GPU long ago…
GPU
Growth Strategies But it didn’t. Strategic investments led to invention of Programmable Shaders
and CUDA GPGPU, fueled demand, and opened new markets.
Programmable Shaders
CUDA GPGPU
Growth Strategies Now, GRID extends NVIDIA GPUs into the server and datacenters,
creating a $10B+ growth opportunity.
Growth Strategies Many markets need great GPUs. However, mainstream PCs are good enough for
daily use. Low-end GPUs will eventually be integrated. PCs will be disrupted by tablets.
Growth Strategies Our investment in Tegra leverages our world-class GPU assets to grow into new markets and puts us in position to disrupt the PC ourselves.
Tegra devices disrupt PC
R&D Synergies Across Products Total R&D ~$1.2B
SHIELD ~$10M
TEGRA
~$300M
GRID
~$10M
CORE R&D ~$880M
GPU SOFTWARE VLSI CONTENT
TECH PROCESS
R&D
Refers to estimated FY14 non-GAAP R&D expense, see reconciliation in Appendix
FY10 FY13
Growing Beyond PC 20% CAGR Overall
S4.5
S4.0
S3.5
S3.0
S2.5
S2.0
S1.5
S1.0
S0.5
0
Revenue (
in b
illions)
GeForce Gamer
GeForce OEM
Quadro
Tesla
Tegra
Other
68%
109%
12%
9%
CAGR
15%
Tegra = Android, WinRT, Auto, and Embedded
$79M $723M
~$10B
~$10B
~$6B
TAM
$2.3B $3.2B
FY10 FY13
Android Devices
WinRT PC
Auto
GeForce Quadro Tesla
Growing Beyond PC Tegra growing 109% CAGR | GPU growing 12% CAGR
GRID
GPU
TEGRA
GPU Computing GPU evolves into a general-purpose, massively parallel
processor. NVIDIA CUDA GPU computing platform accelerates
applications — from ray-tracing and molecular dynamics to
visual search and big data.
GPU CPU
CUDA Revolutionizes Computing Multi-core plus Many-cores
CUDA Driving GPU Growth
2.3 2.7
3.0 3.2
$0
$1
$2
$3
$4
FY10 FY11 FY12 FY13
Millions
Billions
NVIDIA GPU Growth — 12% CAGR
CUDA & Tesla Investment
Billions
AMD Graphics — FLAT
223 243 246
231
$0
$50
$100
$150
$200
$250
2009 2010 2011 2012
Billions
1.2
1.7 1.6 1.4
$0
$1
$2
$3
$4
2009 2010 2011 2012
$0
$200
$400
$600
$800
FY10 FY11 FY12 FY13
Tesla/CUDA OPEX GPU Operating Income
GPU excluding chipset. OPEX based on non-GAAP
Overall PC Industry — FLAT
GPGPU Enables Next Generation Graphics Deferred Lighting, Depth of Field and Post-Processing | Facial Performance |
Wave and Fire Simulation | Interactive Global Illumination |
Volumetric Lighting and iRAY on CUDA
0
5
10
15
20
25
30
35
40
2007 2008 2009 2010 2011 2012
CUDA Accelerating 19% of FLOPS from GPU Systems
Tota
l Perf
orm
ance (
PFLO
PS)
NVIDIA Kepler
NVIDIA Fermi
Intel Xeon Phi
IBM Cell
Other
CUDA Accelerating Big Data
Shazam
10M queries per day against
27M content library
Cortexica/ebay
500+ keypoint fingerprint search
of like things
Twitter/SalesForce.com
500M tweets against
1M expressions daily
GRID Leveraging our graphics and GPU expertise,
invent new technologies that can extend our GPUs
into servers, datacenters and appliances.
NVIDIA GRID Visual Computing Appliance
GRID VCA — VAR Partner
We’re delighted to offer GRID VCA to our customers. We believe it
will expand the customer base for SolidWorks because it can now
be deployed with less concern about the hardware platform being
used. And it makes management and deployment to multiple users
significantly easier.
Dale Ford President & CEO, Hawk Ridge Systems
“
”
The New Enterprise Mobile | BYOD | Mixed OS | Massive Data
NVIDIA GRID A Visual Computing Appliance
CISCO ROUTER A Networking Appliance
NVIDIA GRID A Visual Computing Appliance
NETAPP NAS A Storage Appliance
GRID $10B+ TAM
Enterprise VDI – $5B VCA – $3B GAMING – $2B
700M cable subscribers
25 trials around the world
10M creative designers
50% in SMB
Launch GTC
Certify ISV
Signing up VARs
700M enterprise workers
160M knowledge workers
Dell, HP, IBM, Cisco
75 trials around the world
TEGRA Leveraging our GPU assets and expertise,
invest to be a major player in a world where
“visual computing is everywhere.”
% Developers working on games, per platform
55% Mobile Devices
48% PCs
Mobile Graphics More Important than Ever 13% Xbox 360,
PS3
11% Next-Gen Consoles
5% Wii U
Source: 2013 GDC Survey
PROJECT SHIELD
Project SHIELD is a major disruption to
portable game devices, game consoles
and devices like the Apple iPod.
“
”
NVIDIA has built what could be the most
compelling portable game system
in some time.
“
”
TEGRA Best in Graphics — Best for Gaming
DX9 to DX11 A Major Discontinuity
DX11, OGL4.3 Geometry Shaders
GPGPU Computational Graphics
DX9, ES2.0 Programmable Pixel
Shaders
DX11 — A Giant Leap in Graphics
Power
Perf
orm
ance
1 10
Fermi
Competition Mobile GPU
Kepler
Kepler.M
Bringing the World’s Best GPU to Mobile
KAYLA Tegra + DX11 Kepler
GK208 DEMO
TEGRA TAM
WinRT
200M notebooks sold in ‘13
Today’s tablet, tomorrow’s PC
ANDROID
430M+ Tablets by ‘16, >2x 2013
450M LTE phones by ‘16, >2x 2013
AUTO
7 makers, 34 models
$2B+ design wins, $450M by FY16
Visual computing is more important than ever
We continue to drive our visual
computing leadership
GRID extends GPU computing into server and datacenters
Tegra leverages our GPU strengths
to smart devices
Commitment to long-term profitable growth and capital return
3B+ HD devices by 2015
GPU growth 12% CAGR
$10B+
growth opportunity
$10B+
growth opportunity
20% Rev CAGR from FY10
2.4% dividend yield
Growing Beyond the PC
Revenue excluding chipset products
ANNOUNCEMENT
NVIDIA to return ~$1.2B to shareholders through 4Q FY14
$0.075 per share dividend ($50M/qtr)
$100M repurchase in each of 4Q FY13 and 1Q FY14
Commitment to repurchase $750M
NVIDIA The Visual Computing Company
TECHNOLOGY PROCESSORS VISUAL COMPUTING APPLIANCE
MODULES
Appendix
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
Non-GAAP
Stock-based
compensation
(a)
Acquisition-
related items
(b)
Net warranty
charges
(c)
Other
(d), (e)
Tax impact of
non-GAAP
adjustments
GAAP
FY2010
Revenue $3,326 $- $- $- $- $- $3,326
Gross profit $1,296 $(23) $- $(96) $- $- $1,177
Gross margin 39.0% - - - - - 35.4%
Net income (loss) $253 $(247) $(13) $(94) $- $33 $(68)
Shares used in diluted per share calculation 568 - - - (18) - 550
Diluted net income (loss) per share $0.45 $- $- $- $- $- $(0.12)
FY2011
Operating expense $1,096 $92 $9 $13 $(57) $- $1,153
FY2012
Operating expense $1,246 $125 $38 $- $- $- $1,409
(in millions, except per share data)
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES
Non-GAAP
Stock-based
compensation
(a)
Acquisition-
related items
(b)
Net warranty
charges
(c)
Other
(d), (e)
Tax impact of
non-GAAP
adjustments
GAAP
FY2013
Revenue $4,280 $- $- $- $- $- $4,280
Gross profit $2,237 $(11) $- $- $- $- $2,226
Gross margin 52.3% - - - - - 52.0%
Operating expense $1,396 $126 $36 $- $20 $- $1,578
Net income $728 $(137) $(36) $- $(20) $28 $563
Shares used in diluted per share calculation 624 - - - - - 624
Diluted net income per share $1.17 $- $- $- $- $- $0.90
FY2014 Estimate
R&D expense $1,200 $79 $29 $- $- $- $1,308
Operating expense $1,600 $125 $35 $- $- $- $1,760
(in millions, except per share data)
Footnotes (a) In addition to our historical practice of excluding stock-based compensation, during FY10, the Company completed a tender offer to purchase outstanding stock options which resulted in a charge of $140.2 million. This charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense, of $11.4 million, $90.5 million and $38.3 million, respectively. (b) Acquisition-related items are comprised of amortization of acquisition-related intangible assets and other acquisition-related costs such as transaction costs, compensation charges and restructuring costs relating to the acquisitions. (c) Net warranty charges are comprised of charges to cost of goods sold related to the weak die/packaging material set that was used in certain versions of our previous generation chips and a charge to operating expense related to a class action lawsuit settlement, net of insurance reimbursement. (d) Other is comprised of legal settlement charges and benefits and the net present value of a charitable contribution. (e) Shares excluded for computation of net loss per share position.
RECONCILIATION OF OTHER FINANCIAL MEASURES
FY2010 FY2011 FY2012 FY2013
Graphics Processing Unit (GPU) revenue excluding chipset products $2,299 $2,659 $2,990 $3,228
Chipset product revenue $872 $687 $197 $24
GPU revenue $3,171 $3,346 $3,187 $3,252
FY2010 FY2011 FY2012 FY2013
GPU operating income excluding chipset products $305 $403 $729 $869
Chipset product operating income $85 $278 $93 $16
GPU operating income $390 $681 $822 $885
(in millions)
FY2010 FY2013
Total revenue excluding chipset products $2,454 $4,256
Chipset product revenue $872 $24
Total revenue $3,326 $4,280