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Except for the historical information contained therein, certain matters in these presentations including, but not limited to, statements as
to: our investments, market opportunities and TAM; our growth; future financial results, estimates and forecasts; the performance,
benefits and availability of our products and technologies; our strategies; and other predictions and estimates are forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and any other
forward-looking statements that go beyond historical facts that are made in these presentations are subject to risks and uncertainties that
may cause actual results to differ materially. Important factors that could cause actual results to differ materially include: global
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development and competition; development of new products and technologies or enhancements to our existing product and technologies;
market acceptance of our products or our partners products; design, manufacturing or software defects; changes in consumer preferences
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integrated into systems and other factors. For a complete discussion of factors that could materially affect our financial results and
operations, please refer to the reports we file from time to time with the SEC, including our Form 10-K for the fiscal year ended January
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to us. Except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or
circumstances.
Financial Measures
These presentations contain historical revenue amounts for certain of our product lines and businesses which provide investors with
additional information to supplement the segment reporting information contained in our Form 10-K for the fiscal year ended January 29,
2017. In addition to U.S. GAAP financials, these presentations include certain non-GAAP financial measures. These non-GAAP financial
measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S.
GAAP. See the Appendix for a reconciliation between each non-GAAP measure and the most comparable GAAP measure. Where we
present non-GAAP financial measures, including non-GAAP gross profit, gross margin, operating expense, operating income, operating
margin, and free cash flow, we generally exclude stock-based compensation, legal settlement, net warranty charges or release,
acquisition-related costs and other expense, where applicable. 2
Powering the AI Revolution Jensen Huang
Gaming Jeff Fisher
Datacenter Shanker Trivedi
6
NVIDIA PLATFORM
GRAPHICS HPC AI
Applications Deep Learning Frameworks
NekCEM COSMO CloverLeaf MAESTRO
Computational Climate CFD CASTRO
Electromagnetics Weather Astrophysics
NVIDIA DGX-1
7
NVIDIA POWERING THE AI REVOLUTION
NVIDIA
GPU CLOUD
CSPs
Tensor Core
Xavier DLA
TensorRT Open
Source
Tesla V100 DGX-1 and DGX Station ISAAC
8
GROWTH DRIVERS
$120
6% PC CAGR
400M Core PC Gamers
$100
Console
PC
$80
Console
PC Mobile
$60
Mobile
$40 Mobile
Mobile
$20 PC
PC
Console Console
NALA EMEA APAC
$0
2016 2020
$4,000 Pascal
$2,500
ASP 12%
$2,000
UNITS 11% Maxwell
$1,500
$1,000
$500
DEVELOPED + CHINA EMERGING
$-
FY 2016 FY 2017
Desktop Notebook +43% Revenue +59% Revenue
Source: NVIDIA
GEFORCE
EXPERIENCE
90M Clients
+ 15% YoY
2X
Esports Audience (M)
100
GeForce Powers
60
ALL Major
100 Tournaments
40
0 20
2016 2020
0
Esports Advertising ($M)
CHINA +
300 DEVELOPED
EMERGING
0
2016 2020
75% 55%
Source: DFC, NewZoo, NVIDIA
AAA: CINEMATIC GAMES DRIVE UPGRADE
BIGGER, MORE BEAUTIFUL GAMES IB OPPORTUNITY VIRTUAL REALITY
81%
4.0 100% of Gamers are
interested in VR
% of IB Above Perf
75% Gaming
Game Load Index for 1080p @ 60FPS
0%
2.0 Overwatch Avg Load Scorpio
10 150M 15M
Student
FY 2016 FY 2017
450+ GPU Accelerated Applications
$409M
GPU in Every Public Cloud Service
186% Supercomputing
$143M Enterprise AI adoption accelerates CSPs / ISPs
Enterprise
Q1 FY 2017 Q1 FY 2018
Source: NVIDIA
COMPELLING DATACENTER STRATEGY
ACCELERATE APPS INDUSTRY SOLUTIONS AVAILABLE EVERYWHERE
Energy
All AI Frameworks
Data Analytics Healthcare GPU AS A SERVICE
Enterprise Applications Internet
Manufacturing
Developer Outreach
Finance
GTC
NVAIL Retail
GPU SYSTEMS
EXASCALE REQUIRES ACCELERATED HPC
HPC EMBRACES AI
HPC TAM LEADERSHIP VALUE
10 20
CSCS
4 TITECH
8
576
2 32 CPUs
CPUs
SATURN V 4 +
.6 ExaFLOPS 64 P100s
0 VASP AMBER
2013 2020 CANDLE 0
1 RACK 8 RACKS 19 RACKS
FP64 (HPC) FLOPS ($0.6M) ($11M) ($14M)
60 40x
55 ExaFLOPS
12 h
20x
20 Speech
10x
1.4 ExaFLOPS
0 3 wk
2013 2020 Language 0x
FP32 (DL TRAINING) FLOPS Tensorflow CNTK MXNet
Source: NVIDIA and publicly available data; For 4 Yr Trend Chart: Relative speed-up of images/sec vs K40 in 2013. AlexNet training throughput based on 20 iterations. Training with Resnet-50 on DL frameworks, all data
measured, run with real data set | For GPU, use driver r375_00, cuDNNv6, NCCL 1.6.1, max batch size per GPU | For CPU, use latest Intel Caffe + MKL, use batch size 128
INFERENCING REQUIRES GPU ACCELERATION
TRADITIONAL HYPERSCALE SERVERS CANT KEEP UP
DL INFERENCE TAM INFERENCING VALUE
511,000
2,100
45,000 300
Enterprises adopting AI
DRIVE PX 2
REVENUE AI ENGAGEMENTS
PARTNERS
600 250 200
$487M
500
200 160
400
52%
150 120
Millions
300
100 80
200
50 40
100
0 0 0
FY13 FY14 FY15 FY16 FY17 FY17Q2 FY17Q3 FY17Q4 FY18Q1 FY17Q2 FY17Q3 FY17Q4 FY18Q1
AUTONOMOUS VEHICLE GAME CHANGERS
AI SUPERCOMPUTING
DEEP LEARNING HD MAP
SoC
AI IS THE SOLUTION TO SELF-DRIVING
PERCEPTION REASONING DRIVING
90%
ACCURACY
80%
OTA TRADITIONAL
COMPUTER
VEHICLE DYNAMICS VISION
5X
PATH PLANNING
70%
OCCUPANCY GRID
LOCALIZATION
DETECTION DETECTION
SITUATIONAL AIs
50X
99.99% AUTONOMY
FAIL OPERATION
OTA
VEHICLE DYNAMICS
5X
PATH PLANNING
OCCUPANCY GRID
LOCALIZATION
DETECTION DETECTION
ADAS L3 L4
ADAS TO AI CAR
NATURAL SPEECH
FACE RECOGNITION
2X
HEAD TRACKING
GAZE TRACKING
LIP READING
URBAN DRIVING
SITUATIONAL AIs
50X
99.99% AUTONOMY
FAIL OPERATION
OTA
VEHICLE DYNAMICS
5X
PATH PLANNING
OCCUPANCY GRID
LOCALIZATION
DETECTION DETECTION
ADAS L3 L4 AI CAR
DRIVE PX
NVIDIA DRIVE PX
Data Collection & Mapping Car END TO END
AI CAR COMPUTER PLATFORM
Data Factory
Deep learning is a new computing model that
requires new methods, tools, and flow
DPX 3 Xavier
Level 4/5
Perception AI
10 TOPS
DPX 2 Parker
Level 2/3 Computer Vision Libraries
1 TOPS
CUDA, cuDNN, Tensor RT
OS
AI CAR PARTNER ANNOUNCEMENTS
HD MAPPING
AUTO PARTNERS
PARTNERS
NVIDIA AI CAR OPPORTUNITY BY 2025
TAM $ OPPORTUNITY
Self-Driving Cars
5 Million Vehicles $5 Billion
AI L4/L5
Self-Driving Cars
15 Million Vehicles $2 Billion
AI L2+/L3
EFFICIENCY
SAFETY
Image Classification
1,000M
97%
800M
Human
600M
Accuracy
Deep Learning
400M
74%
200M
Hand-coded CV
0M
2016 2020 2010 2016
1B installed security cameras WW (2020) Challenging real-world conditions AI achieves superhuman results
30B frames per day Traditional video analytics not trustworthy AI-driven intelligent video analytics
CLOUD
1000s of cameras
ON-PREM SERVER
10s-100s of cameras
Traffic management
Airport security
CAMERA
Parking entrance
Law enforcement
NVIDIA METROPOLIS
EDGE TO CLOUD AI CITY PLATFORM
$2B TAM
$1B Server
$1B Camera + Video recorder
$100M+ Revenue
<5% Streams AI-enabled
10x
~ $10M Revenue
POCs
Industrys first search by 30x faster than real-time 6x improvement for pedestrian 5x speed-up for ALPR
example video synopsis detection in rain
10x speed-up in vehicle 11x boost in investigation 30x speed-up in people and World-leading
attribute classification productivity attribute detection object detection
NVIDIA AI CITY PARTNERS
FINANCIALS
Colette Kress, EVP & CFO
RECORDS
REVENUE GROSS MARGIN OPERATING INCOME
$8.0
59.2% $2.2B
$7.0 $6.9B 240 BPS
56.8%
$6.0 38%
2X
$5.0B
$5.0
$1.1B
$4.0
$3.0
$2.0
$1.0
FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017
$6.9B
AUTO
~20% DATACENTER
CAGR
PRO VIZ
$4.1B
~35%
GROWTH CAGR GAMING
PLATFORMS
OEM & IP
OEM & IP
FY 2014 FY 2017
MARKET PLATFORMS
GAMING PRO VISUALIZATION
3-YEAR CAGR ~40% 3-YEAR CAGR 2%
5 11%
800
4 44%
600
Millions
Billions
3
400 $789 $795 $750 $835
2 $4.1
$2.8
1 $2.1 200
$1.5
0 0
FY 2014 FY 2015 FY 2016 FY 2017 FY 2014 FY 2015 FY 2016 FY 2017
DATACENTER AUTO
3-YEAR CAGR ~60% 3-YEAR CAGR ~70%
900 600
Millions
145%
Millions
$830
$487
300 200
$320
$317 $339 $183
$199 $99
0 0
FY 2014 FY 2015 FY 2016 FY 2017 FY 2014 FY 2015 FY 2016 FY 2017
GROSS MARGIN EXPANSION
Value added platforms expand margins
GM% Growth Platforms IP, PC & Tegra OEM
5 59.6% 60%
59.2%
4
58%
56.8%
3
55.8%
Billions
55.1% 56%
2
54%
1
0 52%
FY 2014 FY 2015 FY 2016 FY 2017 Q1 FY 2018
12% 17%
Millions
Billions
11%
1 500 6%
$1.7 $1.7 $1.9
$1.6
$498 $517
$448 $478
0 0
FY 2014 FY 2015 FY 2016 FY 2017 Q2 FY 2017 Q3 FY 2017 Q4 FY 2017 Q1 FY 2018
2.0
25%
22%
1.5
20%
Billions
16% $2.2
1.0
15%
0.5 $1.1
$1.0
$0.7 $0.6
0.0 5%
FY 2014 FY 2015 FY 2016 FY 2017 Q1 FY 2018
$4.0
4
$3.3
Billions
$2.2
$2.1
2 $1.7
$0.8
Net Cash = Total Cash Total Debt; FY 2014 Total Debt = $1.37B; FY 2017 Total Debt = $2.82B
CAPITAL RETURN
Since FY 2013: $4B ~85% FCF
Share Repurchase Dividend Intended Return
1,600
$1.25B
1,200
$1.1B
$1.0B $1.0B
$0.8B
Millions
800
400
$147M
0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
ROIC CY2016 11 % 13 % 20 %
A. Stock-based compensation charge was allocated to research and development expense, and sales, general and administrative expense.
B. Consists of amortization of acquisition-related intangible assets, transaction costs, and other credits related to acquisitions.
C. Comprises of legal settlement costs, contributions, and restructuring and other charges.
RECONCILIATION OF NON-GAAP TO GAAP
FINANCIAL MEASURES (CONTD.)
OPERATING EXPENSES STOCK-BASED ACQUISITION- OTHER
NON-GAAP GAAP
($ IN MILLIONS) COMPENSATION (A) RELATED ITEMS (B) (C)
A. Stock-based compensation charge was allocated to research and development expense, and sales, general and administrative expense.
B. Consists of amortization of acquisition-related intangible assets, transaction costs, compensation charges and other credits related to acquisitions.
C. Comprises of legal settlement costs, contributions, and restructuring and other charges.
RECONCILIATION OF NON-GAAP TO GAAP
FINANCIAL MEASURES (CONTD.)
OPERATING MARGIN STOCK-BASED PRODUCT ACQUISITION-
OTHER
($ IN MILLIONS & NON-GAAP COMPENSATION WARRANTY RELATED ITEMS GAAP
MARGIN PERCENTAGE) (D)
(A) (B) (C)
$664 (137) 8 (32) (7) $496
FY 2014
16% (3) (1) 12%
A. Stock-based compensation charge was allocated to cost of goods sold, research and development expense, and sales, general and administrative expense.
B. Consists of the release of warranty reserve balance and warranty charge associated with a product recall.
C. Consists of amortization of acquisition-related intangible assets, transaction costs, and other credits related to acquisitions.
D. Comprises of legal settlement costs, contributions, and restructuring and other charges.
RECONCILIATION OF NON-GAAP TO GAAP
FINANCIAL MEASURES (CONTD.)
Q1
($ IN MILLIONS) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
FY2018
GROWTH
$2,598 $3,353 $4,227 $6,212 ~35% $1,781
PLATFORMS
OEM & IP 1,532 1,329 783 698 ~-20% 156