Intel : Infographic Q2 2022

Intel's Second Quarter of 2022 (Q2'22)

Financial Results

Total Q2'22 Revenue

$15.3B

17% YoY

Client Computing (CCG)	$7.7B		25% YoY
Datacenter and AI (DCAI)	$4.6B		16% YoY
Network and Edge (NEX)	$2.3B		11% YoY
Accelerated Computing Systems	$186M		5% YoY
and Graphics (AXG)
Mobileye	$460M		41% YoY
Intel Foundry Services (IFS)	$122M		54% YoY

Q2'22 Non-GAAP EPS

$0.29 79% YoY [$0.41 below prior guidance]

Quarterly Records

NEX Quarterly Revenue

Mobileye Quarterly Revenue

"

This quarter's results were below the standards we have set for the company and our shareholders. We must and will do better. The sudden and rapid decline in economic activity was the largest driver, but the shortfall also reflects our own execution issues. We are being responsive to changing business conditions, working closely with our customers while remaining laser-focused on our strategy and long-term opportunities. We are embracing this challenging environment to accelerate our transformation.

Pat Gelsinger, Intel CEO

We are taking necessary actions to manage through the current environment, including accelerating the deployment of our smart capital strategy, while reiterating our prior full-year adjusted free cash flow guidance and returning gross margins to our target range by the fourth quarter. We remain fully committed to our business strategy, the long-term financial model communicated at our investor meeting and a strong and growing dividend.

David Zinsner, Intel CFO

"

FY'22 Non-GAAP Outlook

Revenue	Net Capital Spending
$65B - $68B	$23B
EPS
$2.30

Intel Quarterly Financial and Business Report Page 1 of 2

Business Highlights

Process Leadership			Execution Milestones

Intel 7 now shipping in aggregate over 35 million units

• Intel 4: Ready for volume production in 2H 2022

•  Intel 3, 20A and 18A: At or ahead of schedule

Customer and Partner Wins

MediaTek to use IFS to manufacture new chips for a range of smart edge devices

•  Launched: Alder Lake 12th Gen Core processors; world's best mobile processor1

•  Launched: Habana® Gaudi®2 and Habana® Greco™

• Shipped: Initial volumes of Mount Evans, Intel's first ASIC-based IPU

• Shipped: Intel's first Blockscale™ ASIC and Arc™ A-series GPUs for laptops

• Launched: IFS Cloud Alliance, including Amazon Web Services, Microsoft Azure

•  Amazon Web Services: Agreed to expand its partnership with Intel to include co-development of multi-gen datacenter solutions optimized for AWS infrastructure and Intel as a strategic customer for internal workloads, including EDA

• Lockheed Martin: Entered MOU to utilize 5G for military personnel, satellites, air, land, sea

• Accenture: Partnered to launch a series of trained AI reference kits to the open-source community

• NVIDIA: Selected Sapphire Rapids for use in its new DXG-H100

• Meta: Expanded its supply agreement, leveraging Intel's IDM advantage so that it can meet its expanding compute needs

Strategic Achievements

• Achieved net positive water in U.S., Costa Rica, and India2

• Sustained 80% renewable electricity use globally2

Abbreviations:

= Record revenue; Q2 (second-quarter); YoY (year-over-year); GAAP (general accepted accounting principles); EPS (earnings per share); FY (full-year).

Footnotes:

1. As measured by unique features and superior in-game benchmark mode performance (score or frames per second) on majority of the 31 game titles tested (as of Oct 1, 2021), including in comparison to AMD Ryzen 5950X. See www.intel.com/PerformanceIndex for additional details. Results may vary.
2. Based on 2021 data, announced in Q2'22.

Q2'22 non-GAAP EPS ($0.29) is Q2'22 GAAP EPS (-$0.11) after adjustment for acquisition-related adjustments (+$0.09), restructuring and other charges (+$0.02), share- based compensation (+$0.22), patent settlement (+$0.05), Optane inventory impairment (+$0.14), gains/losses on equity investments, net (+$0.02), tax reform (+$0.01) and income tax effects (-$0.15). FY'22 non-GAAP EPS Outlook ($2.30) is FY'22 GAAP EPS Outlook ($2.57) after adjustment for acquisition-related adjustments (+$0.37), restructuring and other charges (-$0.23),share-based compensation (+$0.79), patent settlement (+$0.05), Optane inventory impairment (+$0.14), gain from divestiture (-$0.30), gains/losses on equity investments, net (-$1.05), tax reform (-$0.17) and income tax effects (+$0.13). For a full explanation of these non-GAAP measures, see Intel's Q2'22 earnings release at intc.com. Year-over-year comparisons, including for Intel Q2'22 revenue, exclude NAND memory business from 2021 results. We completed the first closing of the divestiture on December 29, 2021. Year-over-year comparisons also exclude share-based compensation and gains/losses on equity investments. Intel FY'22 revenue outlook is presented on a GAAP basis. Graphic omits intersegment and All Other revenue.

Our FY'22 outlook and other statements about future plans, expectations, and opportunities, including with respect to future products and technologies, are forward-looking statements. They are based on current expectations as of July 28, 2022 but are subject to many risks and uncertainties that could cause actual results to differ materially from those anticipated. Important factors that could cause actual results to differ materially are set forth in Intel's Q2'22 earnings release at intc.com, and our most recent reports on Forms 10-K and 10-Q, available at intc.com and sec.gov.

Intel Quarterly Financial and Business Report Page 2 of 2