Michael Hara Vice President of Investor Relations Safe Harbor Statement
During the course of this presentation we may make forward looking statements based on current expectations. Forward-looking statements pertain to future events and are subject to risks and uncertainties. The Company’s actual results may differ materially from results discussed in any forward-looking statements. For a complete discussion of risk factors that could affect the Company’s present and future financial results please refer to the Company’s Form 10K and Annual Report for the fiscal year ended January 29, 2001 and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission.
NVIDIA CONFIDENTIAL World leader in 3D graphics technology
Track record of execution
Strong position in PC desktop GPU & workstations – growing into platform processors, mobile, Apple, and game consoles
• 250M unit & $8B market opportunity
NVIDIA CONFIDENTIAL Virtua Fighter Sega on NV1 Circa 1995
NVIDIA CONFIDENTIAL NVIDIA CONFIDENTIAL NVIDIA CONFIDENTIAL NVIDIA – Moore’s Law3 Relentless rate of innovation
500M 7500 500M
NVIDIA GPU's 400M 6000 Intel CPU's
300M 4500 GPU CPU Performance Performance (32 bit AA Fill Rate) (Megahertz) 200M 3000
100M 1500 1500
20M 300
2H97 1H98 2H98 1H99 2H99 1H00 2H00 1H01
NVIDIA CONFIDENTIAL Incredible barriers to entry
60M 57 Million Transistors 800 Billion Operations Per Second 76 Giga FLOPS 50M Up to 1000x Faster Graphics Computation
– 25M 2001 40M
20M TNT2 – 15M
Transistor Count 2000 RIVA 128 – 7M
10M 1999
1998
NVIDIA CONFIDENTIAL Desktop PC Standalone Graphics
Technology leadership
Flagship GPU every six months
“Top-to-Bottom” family of GPUs
Unified driver architecture
NVIDIA CONFIDENTIAL Complete Digital Entertainment Experience
Intelligent TV: Watch, Record, and Control Live TV Superior-Quality DVD Playback Advanced Video Editing Suite Ultimate 3D Graphics
NVIDIA CONFIDENTIAL PC World – November PC Reviews
Of the 35 systems reviewed…NVIDIA-based systems earned the “Best Buy” in every category 25
Power 20 Home Power Home Value Value 15
10
5
0 NVIDIA ATI Intel Matrox
NVIDIA CONFIDENTIAL NVIDIA is “GPU Of Choice” for PC Gamers
70.00%
60.30%
60.00% Courtesy Valve Software; data captured from 530,000 Half Life
50.00% user machines.
40.00%
30.00% % of Valve Users 16.00% 13.80% 20.00%
5.40% 4.70%
10.00%
0.00% NVIDIA Other Software 3dfx ATI
NVIDIA CONFIDENTIAL The NVIDIA Product Universe
Desktop Desktop Mobile PC Workstation Console GPUs IGPs
XGPU
MCPX
NVIDIA CONFIDENTIAL Mobile PC 30M units
Set new feature & performance standards
Dominate performance segment – offer full range of GPUs
Drive rapid innovation
“I was so psyched to discover that Dell has added the GeForce2 Go for its Inspiron 8000,” Janice Chen, Editor-in-Chief, Computer Shopper
NVIDIA CONFIDENTIAL Consumer Electronics
$9 billion market
13% growth per year 2000-2005*
145 million US game players
Xbox launch schedule
US – November 15, 2001
Japan – February 22, 2002
Europe – March 14, 2002
*In-Stat October 2001 NVIDIA CONFIDENTIAL NVIDIA CONFIDENTIAL NVIDIA CONFIDENTIAL Desktop Workstations Create synergies through content
NVIDIA CONFIDENTIAL Demands on 21st Century PCs
Dolby Digital Audio Video Editing Complex 3D Graphics
Broadcast TV MP3 Playback Presentations
Spreadsheets E-mail HDTV
MP3 Ripping Word Processing Internet
Image Processing Broadband Connections Home Network Router
DVD Playback
NVIDIA CONFIDENTIAL Desktop PC 85M units Integrated Graphics
Industry’s first platform processors
Distributed processing architecture
NVIDIA GeForce2 graphics for value PCs
NVIDIA CONFIDENTIAL 250 Million Unit Market Opportunity (CY02)
Apple Mobile 5M
30M 42M Game Consoles
85M
Integrated 85M
1.5M Standalone Workstation
Source: Mercury Research, IDC, NVIDIA, Jon Peddie Associates NVIDIA CONFIDENTIAL Growth Opportunities
85M Units 85M Units 30M Units 5M Units 1.5M Units 100%
90%
80%
70%
60%
50%
40%
30% 60%
20% 35%
10% 15%
0% 0% 2% Desktop GPU Desktop Laptop Apple Workstation Integrated
NVIDIA CONFIDENTIAL Source: Mercury Research, Q3 2001 Annual Revenue Growth (Dollars in Millions)
$1,200 $1,160*
$1,000
$800 $735.3
$600 $501.2 1HFY02 $374.5 (Actual) $400 96%
$200 $158.2 137% $29.1 $3.9 444% $0 646% CY96 CY97 FY99 FY00 FY01 FY02
*analyst estimates © NVIDIANVIDIA Corporation CONFIDENTIAL – 9/2001 Quarterly Revenue (Dollars in Millions)
Fastest Semiconductor Company $300 To Reach $1B in Revenues (Morgan Stanley) $260.3 $240.9 $250 $218.2
$198.2 $200 $170.4
$148.5 $150 $128.5
$97.0 $100 $78.0 $71.0 $65.5
$50
$0 Q1FY02 Q2FY02 Q4 FY99 Q1 FY00 Q2 FY00 Q3 FY00 Q4 FY00 Q1 FY01 Q2 FY01 Q3 FY01 Q4 FY01 © NVIDIANVIDIA Corporation CONFIDENTIAL – 9/2001 NVIDIA Financial Results Key Statistics
FYE00 FY01 Q1FY02 Q2FY02
Days sales outstanding 48 43 33 40 Processor inventory days 43 49 39 44 Revenue per employee $1.4M $1.2M $1.2M $1.2M Number of employees 392 796 814 907
NVIDIA CONFIDENTIAL World leader in 3D graphics technology
Track record of execution
Strong position in PC desktop GPU & workstations – growing into platform processors, mobile, Apple, and game consoles
• 250M unit & $8B market opportunity
NVIDIA CONFIDENTIAL