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CEO Jen-Hsun Huang shares record revenues, business growth, and "light every pixel" strategy for 2014. Here, you'll find details about how NVIDIA expands its visual computing technology for enterprises and progresses portable gaming with SHIELD.

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    Presentation Transcript
    jen hsun huang ceo co founder nvidia

    Jen-Hsun Huang

    CEO & Co-Founder, NVIDIA

    safe harbor

    Safe Harbor

    Except for the historical information contained herein, certain matters in this presentation including, but not limited to,

    statements as to: our investments and opportunities; our financial results; the performance and benefits 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 this presentation 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 economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the

    impact of technological 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 and demands; changes in industry standards and interfaces;

    unexpected loss of performance of our products or technologies when 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 27, 2013. Copies of

    reports we file with the SEC are posted on our website and are available from NVIDIA without charge. These forward-

    looking statements are not guarantees of future performance and speak only as of March 19, 2013, based on information

    currently available to us. Except as required by law, NVIDIA disclaims any obligation to update these forward-looking

    statements to reflect future events or circumstances.

    achieved record revenues margins and cash grew

    Achieved record revenues, margins and cash

    Grew GPU and Tegra processor businesses

    Reached tipping point for GPU-accelerated

    computing

    Introduced Tegra 4 with integrated 4G/LTE

    Invented GRID — A new server GPU platform

    FY13

    Fighting through

    the Headwinds

    fiscal 2013 performance

    Fiscal 2013 Performance

    Record Revenue

    Record Cash

    3.7

    4.0

    +19%

    5.0

    +7%

    4.3

    3.1

    4.0

    4.0

    3.0

    Billions

    Billions

    3.0

    2.0

    2.0

    1.0

    1.0

    FY12

    FY13

    FY12

    FY13

    Record Tegra

    (Smartphones & Tablets)

    Record Gross Margin

    52.9%

    52.9%

    55%

    600

    540

    51.8%

    +50%

    50.1%

    50%

    Millions

    360

    45%

    350

    40%

    35%

    100

    FY12

    FY13

    Q1FY13

    Q2FY13

    Q3FY13

    Q4FY13

    Based on GAAP Results

    consistent financial performance

    Consistent Financial Performance

    GPU Growth

    Leveraging R&D for Income Growth (non-GAAP)

    3.5

    3.2

    OM%

    OPEX%

    COGS%

    3.0

    100%

    2.7

    2.3

    Billions

    47%

    48%

    75%

    2.5

    55%

    61%

    50%

    31%

    1.5

    33%

    31%

    25%

    31%

    21%

    20%

    14%

    8%

    0.5

    0%

    FY10

    FY11

    FY12

    FY13

    FY10

    FY11

    FY12

    FY13

    Record Gross Margin (non-GAAP)

    Cash Generation

    3.7

    55%

    52.3%

    4

    51.9%

    3.1

    % of Revenue

    50%

    3

    45.1%

    2.5

    Billions

    45%

    1.7

    2

    39.0%

    40%

    1

    35%

    30%

    0

    FY10

    FY11

    FY12

    FY13

    FY10

    FY11

    FY12

    FY13

    Based on non-GAAP Results which excluded stock-based compensation, amortization of acquisition-related intangible assets, other acquisition-related costs, a charge

    related to a tender offer purchase in fiscal 2010, charges related to the weak die/packaging material set, net of insurance reimbursement, in fiscal years 2011 and 2010,

    a legal settlement charge in fiscal 2012, and a contribution expense in fiscal 2013

    strong position in gpu leverage gpu launch grid

    Strong position in GPU

    Leverage GPU, launch GRID into new $5B+ TAM

    Engage LTE market with Tegra 4 and 4i —

    projected to triple to 500Mu/yr by 2017

    Tegra traction in mobile, tablets, PC, gaming

    devices, auto, and embedded

    Investment quadruples NVIDIA TAM to $20B+

    FY14

    New Products

    New Markets

    Gearing Up for Growth

    nvidia

    NVIDIA

    THE VISUAL COMPUTING

    COMPANY

    nvidia 1

    NVIDIA

    The Visual Computing Company

    VISUAL COMPUTING

    APPLIANCE

    TECHNOLOGY

    PROCESSORS

    a computing revolution

    A Computing Revolution

    100%

    90%

    80%

    70%

    OS Market Share

    60%

    50%

    40%

    30%

    20%

    10%

    0%

    1993

    1998

    2003

    2008

    2013

    Source: Gartner, Strategy Analytics

    computing everywhere

    Computing Everywhere

    5

    100%

    4

    80%

    Processor Shipments (Billions)

    Processor Market Share

    3

    60%

    2

    40%

    1

    20%

    x86 and Cortex

    Processors Shipped

    0

    0%

    1993

    1998

    2003

    2008

    2013

    Source: Mercury Research, ARM, Internal estimates

    investments opportunities

    Investments &

    Opportunities

    Smartphone

    Tablets

    WinRT PCs

    Auto

    Gaming Devices

    500M LTE devices (by 2017 – 3X 2013)

    ~$10B

    200M Android & WinRT tablets

    50M cars w/ infotainment & cluster

    20M mobile gaming devices

    ~$5B

    GRID

    160M enterprise workers @ 8ccu = $20B/4y

    ~$1B

    Tesla

    50M game subscribers @ 5ccu = $10B/4y

    10M designers @ 1ccu = $10B/4y

    GeForce

    Quadro

    ~$5B

    Tegra

    ~$600M

    ~$1B

    GPU

    INVESTMENT

    TAM

    investments opportunities 1

    Investments &

    Opportunities

    REVENUES

    Smartphones

    Tablets

    WinRT PCs

    Auto

    Gaming Devices

    ~$10B

    $764M

    $156M

    ~$5B

    GRID

    ~$1B

    Tesla

    $3.2B

    $2.3B

    GeForce

    Quadro

    ~$5B

    Tegra

    ~$600M

    ~$1B

    GPU

    INVESTMENT

    TAM

    FY10

    FY13

    slide15

    GRID

    Leveraging our graphics & GPU expertise,

    invent new technologies that can extend our

    GPUs into servers, datacenters, and

    appliances.

    key components of grid

    Key Components of GRID

    GRID VGX

    Software

    GRID

    GPUs

    GRID VCA

    Visual Computing Appliance

    enterprise computing strategy industry s most

    Enterprise Computing Strategy

    Industry’s most trusted graphics partner | Deep optimization with ISVs

    End-to-end visual computing solution

    GRID VGX

    GRID VGX

    QUADRO

    Workstations

    GRID

    TEGRA | GEFORCE

    Devices

    Enterprise Server

    DESIGN

    SIMULATION

    COLLABORATION

    SALES & MARKETING

    remote gpu accelerated workspace grid available

    Remote GPU-Accelerated

    Workspace

    GRID available to ALL

    16 Concurrent Users

    nvidia grid a visual computing appliance

    NVIDIA GRID

    A Visual Computing Appliance

    CISCO ROUTER

    A Networking Appliance

    NVIDIA GRID

    A Visual Computing Appliance

    NETAPP NAS

    A Storage Appliance

    nvidia grid vca

    NVIDIA GRID VCA

    BASE

    $24,900

    + $2,400/yr SW license

    (unlimited devices)

    MAX

    $39,900

    + $4,800/yr SW license

    (unlimited devices)

    Kepler GPUs (4GB FB ea)

    CPU Threads

    System Memory

    8

    16

    16

    32

    192 GB

    384 GB

    grid milestones

    GRID Milestones

    Q1

    Q2

    Q3

    Q4

    6 Partners

    20 Trials

    Production

    GRID Gaming

    VDI & OEM partners

    Production

    75 Trials

    GRID Enterprise

    GRID VCA & ISVs

    Announcement

    15 Trials

    VAR Program Launch

    Production

    GRID VCA

    tegra

    TEGRA

    Leveraging our GPU assets & expertise,

    invest to be a major player in a world where

    “visual computing is everywhere”.

    slide26

    2013

    1st Quad Core A15

    1st Always-On HDR Camera

    1st LTE SDR Modem

    1st Quad Core

    1st Battery Saver Core

    1st WinRT Tablet

    Tegra Firsts

    2012

    1st Dual Core

    1st Honeycomb

    1st Game Store — TegraZone

    2011

    mobile computing innovation

    Mobile Computing Innovation

    A15

    A15

    4+1

    PRISM 2

    FRAME

    DISPLAY

    A15

    A15

    BEST PERFORMANCE

    LONGEST

    BATTERY LIFE

    Chimera Architecture

    TEGRAZONE

    S

    I

    G

    C

    ENGINE

    MEMORY

    BEST GAMING

    INNOVATIVE

    CAMERA

    INTEGRATE INDUSTRY LEADING

    CPU, GPU, CAMERA, LTE MODEM

    tegra 4 5w tdp

    Tegra 4

    5W TDP

    Tegra 4i

    1W TDP

    Tegra 4 Family

    Based on these estimates,

    even Qualcomm’s best

    processor, which is due to

    enter production at about the

    same time as Tegra 4, won’t

    surpass Nvidia in these tests.

    Quad CPU

    A15 4+1

    A9 r4 4+1

    NVIDIA GPU

    72 Core

    60 Core

    i500

    dedicated

     

    integrated

     

    CHIMERA Photo

    Architecture

    superphones for the mainstream

    SUPERPHONES

    FOR THE MAINSTREAM

    Tegra 4i | 5” 1080p Display | 8mm Thin | 4G LTE

    PRISM 2 | DirectTouch | Chimera Camera

    Phoenix Reference Phone Platform

    icera modem milestones certified at 95 carriers

    Icera Modem Milestones

    Certified at 95 carriers in 65 countries | 20M modems shipped to date

    1st WinRT LTE multi-mode modem certified at AT&T

    CAT4, CA,

    VoLTE

    1st LTE

    CAT3

    Multimode

    AT&T

    I500

    Sampling

    1st HSPA+

    Phones

    HSPA+

    T-Mobile US

    HSPA

    Vodafone Global

    HSUPA

    AT&T

    HSDPA

    SoftBank Japan

    2006

    2007

    2008

    2009

    2010

    2011

    2012

    2013

    i150

    i300

    i400

    i500

    project shield

    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 1

    TEGRA

    Best in Graphics — Best for Gaming

    tegra milestones

    Tegra Milestones

    Q1

    Q2

    Q3

    Q4

    Q1 (2014)

    SHIELD

    Production

    Phones/Tablets

    Production

    Tegra 4

    Carrier

    Certifications

    Begin

    Tablets

    Production

    i500

    Carrier

    Certifications

    Begin

    Mainstream

    Smartphones

    Production

    Tegra 4i

    gearing up for growth

    Gearing Up

    for Growth

    ~$10B

    ~$5B

    ~$1B

    ~$5B

    Tegra

    ~$600M

    ~$1B

    GPU

    INVESTMENT

    TAM

    reconciliation of non gaap to gaap financial

    RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES

    Stock-based

    compensation

    (a)

    Acquisition-

    related items

    (b)

    Net warranty

    charges

    (c)

    Other

    (d)

    Non-GAAP

    GAAP

    FY2010

    Revenue

    Cost of goods sold

    Gross profit

    Operating expense

    Operating income (loss)

    $ 3,326

    $ 2,030

    $ 1,296

    $ 1,041

    $

    $

    $

    $

    $

    $ (247 )

    -

    $

    $

    $

    $

    $

    -

    -

    -

    $

    $

    $

    $

    $

    -

    $

    $

    $

    $

    $

    -

    -

    -

    -

    -

    $ 3,326

    $ 2,149

    $ 1,177

    $ 1,276

    $

    (99 )

    23

    96

    (23 )

    224

    (96 )

    (2 )

    (94 )

    13

    255

    (13 )

    FY2011

    Revenue

    Cost of goods sold

    Gross profit

    Operating expense

    Operating income

    $ 3,543

    $ 1,945

    $ 1,598

    $ 1,096

    $

    $

    $

    $

    $

    $ (100 )

    -

    8

    (8 )

    92

    $

    $

    $

    $

    $

    -

    -

    -

    9

    (9 )

    $

    $

    $ (181 )

    $

    $ (194 )

    -

    $

    $

    $

    $

    $

    -

    -

    -

    $ 3,543

    $ 2,134

    $ 1,409

    $ 1,153

    $

    181

    13

    (57 )

    57

    502

    256

    FY2012

    Revenue

    Cost of goods sold

    Gross profit

    Operating expense

    Operating income

    $ 3,998

    $ 1,923

    $ 2,075

    $ 1,246

    $

    $

    $

    $

    $

    $ (136 )

    -

    $

    $

    $

    $

    $

    -

    -

    -

    $

    $

    $

    $

    $

    -

    -

    -

    -

    -

    $

    $

    $

    $

    $

    -

    7

    (7 )

    -

    (7 )

    $ 3,998

    $ 1,941

    $ 2,057

    $ 1,409

    $

    11

    (11 )

    125

    38

    829

    (38 )

    648

    $ in millions

    reconciliation of non gaap to gaap financial 1

    RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES

    Stock-based

    compensation

    (a)

    Acquisition-

    related items

    (b)

    Net warranty

    charges

    (c)

    Other

    (d)

    Non-GAAP

    GAAP

    FY2013

    Revenue

    Cost of goods sold

    Gross profit

    Operating expense

    Operating income

    $ 4,280

    $ 2,043

    $ 2,237

    $ 1,396

    $

    $

    $

    $

    $

    $ (137 )

    -

    $

    $

    $

    $

    $

    -

    -

    -

    $

    $

    $

    $

    $

    -

    -

    -

    -

    -

    $

    $

    $

    $

    $

    -

    -

    -

    $ 4,280

    $ 2,054

    $ 2,226

    $ 1,578

    $

    11

    (11 )

    126

    36

    20

    841

    (36 )

    (20 )

    648

    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.

    $ in millions

    reconciliation of other financial measures

    RECONCILIATION OF OTHER FINANCIAL MEASURES

    FY2010

    FY2011

    FY2012

    FY2013

    Graphics Processing Unit (GPU) Revenue excluding chipset products

    Chipset product revenue

    GPU Revenue

    $ 2,299

    $

    $ 3,171

    $ 2,659

    $

    $ 3,346

    $ 2,990

    $

    $ 3,187

    $ 3,228

    $

    $ 3,252

    872

    687

    197

    24

    $ in millions