Intel Corporation Corporation Intel Financial Results | 2011 Annual Report Annual Report 2011 Net Revenue Diluted Earnings Per Share Geographic Breakdown of Revenue Dollars in billions Dollars Percent 60 2.50 100 2.39 54.0 9% 11% 9% Japan 50 2.00 2.01 80 13 % Europe 19 % 43.6 25% 40 38.8 38.3 37.6 21% Americas 35.4 35.1 1. 50 60 34.2 21% 30 30.1 26.8 1.18 35% 1. 0 0 0.92 40 20 0.77 57% $VLD3DFLÀF 49% 10 0.50 20 31% 02 09080706050403 10 11 2007 2008 2009 2010 2011 2001 2006 2011 Capital Additions to Property, Dividends Per Share Paid Plant and Equipment Research and Development Dollars Dollars in billions Dollars in billions 0.80 0.78 12.0 10.0 10.8 8.4 0.63 0.60 9.0 7. 5 0.56 0.55 6.6 0.45 5.8 5.7 5.7 0.40 6.0 5.0 5.0 5.2 5.2 4.5 0.20 3.0 2.5 2007 2008 20092010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Past performance does not guarantee future results. This Annual Report to Stockholders contains forward-looking statements, and actual results could differ materially. Risk factors that could cause actual results to differ are set forth in the “Risk Factors” section and throughout our 2011 Form 10-K, which is included in this Annual Report. “ Intel’s 2011 revenue of $54 billion caps another record year for the company. Our growth is a direct result of outstanding products and technologies combined with solid execution. Record Our core markets of the PC and data center are strong and growing, and we are making steady progress in bringing the best of Intel® technologies to growing new areas of computing. For news and information about Intel® For stock information, earnings and conference performance. We look forward to an even stronger 2012.” products and technologies, customer support, webcasts, annual reports, and corporate careers, worldwide locations, and more, governance and historical fi nancial information, 2011 Annual Report Paul S. Otellini, President and Chief Executive Offi cer visit www.intel.com visit www.intc.com On the cover: The 3rd generation Intel® Core™ processor family, built using 22-nanometer process technology with 3-D Tri-Gate transistors, delivers energy-effi cient performance that will help shape the computing era ahead. Intel Corporation Corporation Intel Financial Results | 2011 Annual Report Annual Report 2011 Net Revenue Diluted Earnings Per Share Geographic Breakdown of Revenue Dollars in billions Dollars Percent 60 2.50 100 2.39 54.0 9% 11% 9% Japan 50 2.00 2.01 80 13 % Europe 19 % 43.6 25% 40 38.8 38.3 37.6 21% Americas 35.4 35.1 1. 50 60 34.2 21% 30 30.1 26.8 1.18 35% 1. 0 0 0.92 40 20 0.77 57% $VLD3DFLÀF 49% 10 0.50 20 31% 02 09080706050403 10 11 2007 2008 2009 2010 2011 2001 2006 2011 Capital Additions to Property, Dividends Per Share Paid Plant and Equipment Research and Development Dollars Dollars in billions Dollars in billions 0.80 0.78 12.0 10.0 10.8 8.4 0.63 0.60 9.0 7. 5 0.56 0.55 6.6 0.45 5.8 5.7 5.7 0.40 6.0 5.0 5.0 5.2 5.2 4.5 0.20 3.0 2.5 2007 2008 20092010 2011 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 Past performance does not guarantee future results. This Annual Report to Stockholders contains forward-looking statements, and actual results could differ materially. Risk factors that could cause actual results to differ are set forth in the “Risk Factors” section and throughout our 2011 Form 10-K, which is included in this Annual Report. “ Intel’s 2011 revenue of $54 billion caps another record year for the company. Our growth is a direct result of outstanding products and technologies combined with solid execution. Record Our core markets of the PC and data center are strong and growing, and we are making steady progress in bringing the best of Intel® technologies to growing new areas of computing. For news and information about Intel® For stock information, earnings and conference performance. We look forward to an even stronger 2012.” products and technologies, customer support, webcasts, annual reports, and corporate careers, worldwide locations, and more, governance and historical fi nancial information, 2011 Annual Report Paul S. Otellini, President and Chief Executive Offi cer visit www.intel.com visit www.intc.com On the cover: The 3rd generation Intel® Core™ processor family, built using 22-nanometer process technology with 3-D Tri-Gate transistors, delivers energy-effi cient performance that will help shape the computing era ahead. Letter From Your CEO 2011 Highlights Letter From Your Chairman Investor Information 2011 was an outstanding year for Intel. on a high-volume 14nm manufacturing facility in Arizona and As part of Intel’s ongoing commitment to Investor materials. Intel’s Investor Relations web site contains the strategic importance of investing in our people. We support this Despite a tough macro-economic environment, a leading-edge development fabrication facility in Oregon. increasing stockholder value, the Board of background on our company and our products, fi nancial information, value by cultivating a safe, respectful, and ethical work environment the company set records in platform unit sales, Software and services Directors raised the dividend twice in 2011 and frequently asked questions, and our online annual report, as well as that enables employees to thrive both on the job and in their com- revenue, and earnings, refl ecting strong global As the world’s digital footprint expands, so does its vulnerability continued an active buyback program. Intel’s divi- other useful information. For investor information, including additional munities. We measure our progress each year by soliciting employee demand for our products and solid execution to security breaches. More unique pieces of malware were dend payout totaled $4.1 billion in 2011, including copies of our annual report/10-K, 10-Qs, or other fi nancial literature, feedback through our annual Organizational Health Survey. In 2011, by our employees around the world. identifi ed in the last two years than existed worldwide prior to a 15% increase in the quarterly dividend paid in visit our web site at www.intc.com or call Intel at (408) 765-1480 (U.S.); a record 75% of our employees participated in the survey, providing We delivered revenue of $54.0 billion, up 24% compared to 2010. In 2011, mobile malware increased 70% over 2010. Intel March 2011 and an additional 16% increase paid in September. The (44) 1793 403 000 (Europe); (852) 2844 4555 (Hong Kong); valuable insight into our current strengths and areas for improvement. 2010. Net income rose to $12.9 billion, up 13% from 2010, and recognized this growing threat and the need for a new approach company used $14.1 billion to repurchase 642 million shares of stock (81) 298 47 8511 (Japan). More information is available at www.intel.com/jobs. earnings per share rose to $2.39, up 19% from the prior year. to platform security, which led to our acquisition of McAfee in 2011. in 2011, and the Board raised Intel’s authorization limit for share Intel on NASDAQ. Intel’s common stock trades on The NASDAQ Global Caring for the planet. We believe that technology plays a fundamental Spending as a percentage of revenue was approximately fl at com- The McAfee DeepSAFE* technology platform, introduced in 2011, repurchases by $20 billion. Intel also completed a senior notes offering Select Market* under the symbol INTC. role in fi nding solutions to the world’s environmental challenges. Intel pared to 2010, and our gross margin of 62.5% was at the top end combines McAfee’s security software with Intel’s silicon capabilities of $5 billion, primarily for the purpose of repurchasing Intel stock. Direct stock purchase plan. Intel’s Direct Stock Purchase Plan allows is a recognized leader in sustainability for the ways we work to mini- of our historical gross margin range for the second year in a row. and is designed to detect and prevent day-zero attacks. Powering the cloud Intel’s ongoing focus on corporate responsibility creates value stockholders to reinvest dividends and purchase Intel common stock mize the environmental impacts of our operations and design products for stockholders, for the company, and for society. In 2011, Intel was on a weekly basis. For more information, contact Intel’s transfer agent, that are increasingly energy effi cient. In 2011, for the fourth year in a Continuing PC growth Looking ahead The building blocks of connectivity named to the Dow Jones Sustainability Indexes for the 13th consecu- Computershare Investor Services, LLC, by phone at (800) 298-0146 row, Intel was the largest voluntary purchaser of green power according In 2011, the global demand for PCs continued to surge, especially in Our industry is at the brink of a major transformation. The number As the number of connected devices in the world expands, so does the demand for secure ways to create, share, store, and analyze data. tive year, in recognition of the company’s performance and reporting on (U.S. and Canada) or (312) 360-5123 (worldwide), or by e-mail through to the U.S. Environmental Protection Agency. To underscore the emerging markets. For the fi rst time, total PC purchases were higher of connected devices in the world now tops 4 billion and continues Intel® products form the backbone of cloud computing and the Internet.