MSCM 7 Nguyen Huyen Vu

Group 3 Nguyen Thi Thai Hien

Mar 2 ’24
 Company Overview

ON E I NT EL OVERVIE W
ON E I NT EL OVERVIE W
Oregon Arizona New Mexico Ohio Costa Rica Ireland Germany Poland Israel Chengdu Vietnam Malaysia

Intel
Worldwide
Headquarters
Santa Clara, California

Wafer Fabs Assembly & Test Future Site

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 4004 X86 Personal 486 Pentium® USB Multi-Core Intel® Core 50 Years
Processor Architecture Computer Processor Processor Architecture

1968 1971 1974 1978 1980 1981 1983 1989 1991 1993 1994 1995 1998 2003 2005 2006 2011 2018 2020 2021

Intel 8080 Ethernet $1B Intel $10B Intel® Xeon Centrino® 3D Trigate Brand
Founded Processor Collaboration Revenue Inside® Revenue Transistor & Refresh
Thunderbolt

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 Business Manufacturing Supply Chain Community Sustainability

$ 63 10 $ 2
billion
$ 9.5
million
94
billion billion annual spending Invested in 60+ percent
total revenue transistors produced with diverse-owned Intel RISE Technology of nonhazardous
in 2022 every second businesses in 2022 Initiative programs waste recycled

124 100 900+ 20 + 9.6

thousand billion supplier audits million hours billion
employees work transistors are packed in the past six years of volunteer service gallons of water
in 53 countries in Ponte Vechio since 1995 conserved in 2022

$ 17.5 $ 24.8 #1 35 + 93
percent
billion billion responsible years of our global power
invested in R&D in capital investments minerals ranking of positive impact was green power
in 2022 in 2022 for past six years through intel foundation in 2022

1From the Responsible Sourcing Network

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 700+ 450+ 150+
Software Software
tools & tools &
resources resources
Foundations and standards on the Intel Developer Catalog on the Intel Developers
bodies with Intel for developers to create and Catalog for AI workloads
deploy solutions

300+ #1 top 10
community managed projects Linux kernel corporate contributor to Kubernetes
contributed to and maintained contributor since 2007

RSS
Floating Point
Standard DDRx Responsibility
Sensitive
Network/Edge
Standards Safety

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"At Intel, our values guide everything we do, so you can feel
welcomed to share and showcase yourself and your abilities.“
- Pat Gelsinger, Intel CEO

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 Data Center Network and Intel Foundry
Client Computing Mobileye
and AI Edge Services
FY2023 Revenue FY2023 Revenue FY2023 Revenue FY2023 Revenue FY2023 Revenue
$ 29.3B (54%) $ 15.5B (28.6%) $ 5.8B (10.6%) $ 2.1B (3.8%) $ 952m (1.8%)

Intel® 3
------------------------------------------------
Intel® 20A
------------------------------------------------
Intel® Smart Edge EyeQ® SoC Intel® 18A
Intel® 4G, 5G, and 6 Wi-Fi Solutions Data Center and Server Management ------------------------------------------------ ------------------------------------------------ ------------------------------------------------
------------------------------------------------ Systems 5G ASIC Mobileye SuperVision Intel® EMIB
Intel® Ethernet Adapters ------------------------------------------------ ------------------------------------------------ ------------------------------------------------ ------------------------------------------------
------------------------------------------------ Intel® Developer Cloud Intel® Edge Software Hub Cloud-enhanced ADAS Intel® Foveros
Intel® Developer Cloud ------------------------------------------------ ------------------------------------------------ ------------------------------------------------
Intel® Developer Cloud Moovit Intel® FCxGA

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 Intel - Market Leader in PC CPU (x86)

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 INTC stock price over time

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 Market Cap of Intel over time

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 Inclusive Leadership RISE Strategy Foundation of Inclusive External Leadership
and Accountability and Goals Processes and Systems and Impact

Advance culture of inclusion with a Enable achievement of CSR milestones Build a strong foundation for repeatable, Lead the industry with bold moves,
dynamic workplace where all employees to ensure Intel’s continued leadership in sustainable talent investment that supports transparent commitments, and policy and
are inspired and encouraged to achieve corporate responsibility and sustainability our efforts to have the right talent to deliver standards that drive equitable outcomes
their full potential on our transformation strategy

2 years early
Reached full market representation
Achieved
Gender pay equity across our global
$2B
Supplier diversity exceeded $2 billion in 2022,
in our U.S. workforce in 2018 workforce in 2019 achieving our 2030 goal 8 years ahead of schedule

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A history of taking action against Climate Change
1994 1996 2006 2008 2012
Intel begins Intel leads Intel joins the US Intel becomes the Intel reduces
voluntary agreement to EPA Climate largest voluntary absolute GHG
environmental reduce use of Leaders program corporate emissions more
reporting. perfluorocarbons and the EU purchaser of green than 60% below
(PFCs) in our Commission’s power under the US 2007 levels,
industry. Sustainable Energy EPA Green Power exceeding a 20%
Europe Campaign. Partner Program. reduction goal.

2013 2017 2020 2022 >

Intel achieves 100% Intel achieves 100% Intel commits to Intel announces
renewable renewable new operational, goal to achieve net
electricity in the electricity in Europe. industry, and global zero Scope 1 + 2
United States. challenge climate GHG emissions by
goals for 2030. 2040.

15
 Reducing Our Scope 1
GHG Emissions and 2 GHG Emissions
(Million Metric Tons CO2e)
Due to our long history of investment
12
and action, we avoided 80% of our
10 GHG emissions over the last decade.
8

Chemical substitution Process optimization

6

GHG abatement Energy conservation

2

0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
On-site alternative Investments in
Avoided Scope 1 & 2 Emissions and renewable electricity renewable electricity
Actual (Reported) Scope 1 + 2 GHG Emissions

Intel’s Approach to Environmental Sustainability 16

 Renewable Electricity and 100% renewable 93%
Energy Conservation, electricity in the renewable
U.S., Europe,
by the Numbers 1

Israel, and
electricity
globally
Malaysia; nearly
100% in Costa
Rica

970 million $70 million LEED® green 100+ onsite

kWh of saved due to building renewable and
electricity energy certification alternative
conserved conservation for > 18.5M electricity
since January 1, projects since square feet of projects
2020 2020 building space

Intel’s Approach to Environmental Sustainability 1 Figures as of year-end 2022 17

ON E I NT EL OVERVIE W
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
- R&D - High performance xPU - B2B CRM - Client (desktop / laptop)
Architecture : - Manufacturing - Data center (server)
across platforms & market - After sale services
- Foundry segments (server / client / - Customer support / - Artificial Intelligence
Tools : - Outsourcing connectivity, automotive) return / warranty - Network & edge
- Sale & Marketing - Excursion management - Automotives
- Customer Fulfillment - Advanced AI chip which - Education
- Supply Chain mgnt. enables AI/ML - Healthy
Design : applications / systems - Energy
- Cloud
Key Resources
- Foundry services from Channels
Die : - 70,000 patents and IPs. design / fabrication to - B2B
- 124,000 employees. assembly and test with - OEM
Substrate : - Multiples facilities (Fab / advanced technologies.
die prep / Assembly &
Test sites) - System solutions with
- Systems hardware / software
DRAM :
- Advanced fab nodes &
Outsource: packaging technologies.

Cost Structure Revenue Streams Client Computing : $ 29.3B (54.0%)

COGS : $ 32.5B (60.0% revenue) Data Center & AI : $ 15.5B (28.6%)
R&D : $ 16B (29.6% revenue) Network & Edge : $ 5.8B (10.6%)
SG&A : $ 5.6B (10.4% revenue) Mobile Eye : $ 2.1 B (3.8%)
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All Other : $ 664m (1.2%) Intel Foundry Service : $ 952m (1.8%)
 FY2023 - Revenue & Cost structure

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EQUIPMENT SOFTWARE MATERIALS RESEARCH GOVERNMENT

And driving Moore’s Law sustainability, with a 10 year horizon from research to HVM
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 Internal Factory Network External Foundries Intel Foundry

Intel’s global, internal factory network Expanded use of third-party Building a world-class foundry
for at-scale manufacturing foundry capacity business, Intel Foundry Services

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Financial Analysis – last 5 years
2019 2020 2021 2022 2023 Massive shrink in 2022-
Market capitalization 256,750 204,160 209,600 109,070 211,850 2023 due to significant
Net revenue 71,965 77,867 79,024 63,054 54,228 demand drop in PC business
Cost of Sales 29,825 34,255 35,209 36,188 32,517 after COVID (customers’
Gross profit 42,140 43,612 43,815 26,866 21,711 inventory correction)
Gross margin 58.55% 56% 55.44% 42.61% 40.03%
R&D 13,362 13,556 15,190 17,528 16,046
Marketing, general and administrative 6,350 6,180 6,543 7,002 5,634
Restructuring & other charges 393 198 2,626 2 (62)
Operating expenses 20,105 19,934 24,359 24,532 21,618
Operating income 22,035 23,678 19,456 2,334 93
Gain (losses) on equity investment, net 1,539 1,904 2,729 4,268 40
Interest and other, net 484 (504) (482) 1,166 629
Shrink in EBIT for
EBIT 21,048 20,899 19,868 7,768 762
investing in new
EBIT margin 29% 27% 25% 12% 1%
manufacturing sites
Earning per share 4.8 4.9 4.9 2.0 0.4
following IDM 2.0 strategy

Feb 2021 : New CEO

Stable growth from 2019-2021 from
onboard introducing
stronghold (client computing & data center)
new strategy IDM 2.0
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Financial Analysis - CCC
2019 2020 2021 2022 2023
Net income 21,048 20,899 19,868 8,017 1,675
Account receivables 7,659 6,782 9,457 4,133 3,402
DSO 39 32 44 24 23
Inventories 8,744 8,427 10,776 13,224 11,127
DIO 44 40 50 77 75
Account payables 4,128 5,581 5,747 4,084 3,655
DPO 21 26 27 24 25
CCC 62 45 67 77 73

Low DPO (<30 days): prepaid for tools / High inventories & DIO in 2022-2023 due to high safety
substrates to secure global supplies & flexible stock, overforecasting after COVID-19 and low actual
terms for suppliers (payment term : 90 days or 10 demand (customers’ inventory correction)  increased
days with 2% discount) CCC by 15% over 2 years

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 Strengths Weaknesses Threats
- Market leader in PC/server
processors with advanced
technologies. Low business
Intense competition
- Strong workforce with diversification
(AMD – x86 CPU, NVIDIA – GPU &
talented/skillfull engineers (80% revenue from PC/server AI chip, TSMC - foundry service)
segments, 2023)
- Hold > 70,000 patents

68.8% market share of x86

CPU (CNR, 2024)
Supply Chain Customized chips
Resilience ARM-based chip
76.9% market share of Data (No major manufacturing footprint (Microsoft Azure ARM-based
in Europe) CPUs, Apple Mx chips)
center (CNR, 2024)

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 Opportunities

Emerging market: AI chips

Market value 2023: $18.6B

Forecasted AI TAM by 2030 : $600B

Annual CAGR estimated 2023 – 2032:

38.16%

Booming market: Asia Pacific

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 Intel’s competitors

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 Competitor analysis: FY2023
Intel corporation Advanced Micro Qualcomm NVDIA Taiwan Semiconductor
Devices, Inc. Incorporated Corporation Manufacturing
Company

Market Cap EOY 2023 $211.85B $238.14B $160.97B $1.223T $539.38B

EBIT margin 1.4% 2.2% 20.2% 55.5% 45.3%
DSO 23 87 36 60 34
DIO 75 70 64 32 42
DPO 25 33 22 16 9
CCC 73 123 78 75 67
- Leadership in CPUs - High quality x86 - Leadership in mobile - Leadership in - Leadership in foundry
- Long value chain (E2E CPUs CPUs segment GPUs & AI - Silicon fabrication
Competitive manufacturing model)  - Competitive pricing - Established patent infrastructure service
advantage total control of efficiency licenses and segment
& effectiveness technology - Innovations in AI
technologies

Top player
ON E I NT EL OVERVIE W Bottom player
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Education Health Finance Retail Government Energy Automotive Manufacturing Telco

Teacher Enhanced Algorithmic Support Autonomous

Military apps Factory
Assistant Diagnostics Trading Oil & Gas Cars Personalized
Experience Automation
Data Exploration Customer
District Drug Fraud Automated
Marketing Insights Predictive Services
Knowledge Discovery Detection Smart Trucking Maintenance
Tool Merchandising Security Grid Network
Patient Care Research Aerospace Precision
Campus Operational Automation
Loyalty Resident Agriculture
Security Research Personal Improvement Shipping
Engagement Operational
Finance Supply Chain Field
Curriculum Sensory Conservation Search & Performance
Smart Cities Automation
Planner Aids Risk Mitigatio Security Rescue

ON E I NT EL OVERVIE W Source: Intel forecast

 CLOUD & ENTERPRISE

Deployment

Training/Fine-Tuning
AI Models

Edge Inference

Model Creation

EDGE
Democratizing
AI

Localized Inference
Data Prep (Client)
DirectML

Note: Intel Core integrates VPU low power inference

engine from Meteor Lake onwards.
© Intel Corporation. Intel, the Intel logo, and other Intel marks are trademarks of Intel Corporation or
its subsidiaries. Other names and brands may be claimed as the property of others.

ON E I NT EL OVERVIE W CLIENT & WORKSTATION

 Oregon Ohio Germany Poland

$20B €17B $4.6B

Planning Phase investment investment
investment
R&D, Wafer Fab Wafer Fab Assembly Test
Wafer Fab
Manufacturing
Expansion Greenfield Greenfield
(two fabs) Greenfield

Arizona New Mexico Malaysia

$20B $3.5B $7B

investment investment
investment
Wafer Fab,
Assembly Test Technology
Advanced Advanced
Development, Advanced Packaging Packaging
Packaging
Expansion Expansion
Expansion (retrofitting of Fab 9)
(Fab 52 and 62)

Scale of some investments contingent on U.S. and EU support. These statements are based on current expectations and involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements.
ON E I NT EL OVERVIE W For more information on the factors that could cause actual results to differ materially, see our most recent earnings release and SEC filings at www.intc.com
ON E I NT EL OVERVIE W
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 Revenue of Intel over time

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 Operating Margin of Intel Over time

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FY2023 - Revenue by Business Segment & Region

Client, Data Center & AI are the top

business segments contributed to revenue US & China are the biggest markets

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 FY2023 - Balance Sheet

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 FY2023 - Cash Flow

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Behind this Door: Learn about EUV, Intel’s Most Precise, Complex Machine (youtube.com)

https://youtu.be/hmkHoa_mpPo

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