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NEW YORK ANALYST DAY

NOVEMBER 17, 2010

Bill Keitel
EVP and CFO

Safe Harbor
Before we proceed with our presentation, we would like to point out that the following discussion will contain forward-looking statements from industry consultants, Qualcomm and others regarding industry trends, anticipated future results and product availability, potential market size, market shares and other factors that inherently involve risks and uncertainties, including the rate of development, deployment and commercial acceptance of CDMA- and OFDMA-based networks and technology and fluctuations in the demand for CDMA- and OFDMA-based products, services or applications. These and other risks and uncertainties relating to Qualcomms business are outlined in detail in our most recent 10-Q and 10-K forms filed with the Securities and Exchange Commission. Please consult those documents for a more complete understanding of these risks and uncertainties.

This presentation includes a discussion of Non-GAAP financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these Non-GAAP financial measures to the Company's financial results prepared in accordance with GAAP have been included at the end of this presentation.

Fiscal 2010 Results


FINANCIALS
Revenues
$11 billion, up 6 percent

HIGHLIGHTS
Revenues consistent with original guidance Record MSM shipments, EPS and Total Reported Device Sales QCT operating margins improved towards year-end, consistent with original guidance

Operating Income
$3.3 billion GAAP, up 47 percent (1)

Earnings Per Share


$1.96 GAAP, up 106 percent (1)

Cash Flow
$4.1 billion GAAP operating cash flow

Improved our competitive position


Gained WCDMA chipset share Strong traction from Snapdragon and integrated solutions Select R&D investments

(1) See note included in the appendix section at the end of the presentation.

Qualcomm Ranked in Top 35% of Non-Financial S&P 500 Companies for 2010

FINANCIAL METRIC*
Operating Cash Flow Margin
(unlevered)

PERCENTILE RANKING
92%

Return on Invested Capital


Operating Margin

91%
88%

Return on Assets

65%

*Analysis based on Qualcomms fiscal year period (ending September 2010) Source: Standard & Poors

Regional* CDMA-Based Device Shipment Estimates


(2)

CALENDAR YEAR, MILLIONS, MIDPOINTS(3), AS OF NOVEMBER 3, 2010


Guidance 625 - 650e

CY10 CHANGE FROM PRIOR GUIDANCE


+5
-

WCDMA Europe WCDMA Asia WCDMA ROW** CDMA2K Americas CDMA2K India/China CDMA2K Korea, Japan, SEA, ROW

500 - 516

153

Favorable 3G migration trends No change Favorable 3G migration trends and strength in smartphone demand Strong smartphone demand, increasing replacement rate Favorable subscriber net adds in China GSM competition at VLE segment

121 91

124 120

+3

83 114 120 80 41
2010
397 est. 241 est. 638 est.

+6
+4 -5

67 32
2009
295 213 508

WCDMA CDMA Total

(2) & (3) See notes included in the appendix section at the end of the presentation. * Regional device shipments are Qualcomm estimates and include handsets, data devices, telematics, security devices and some quantity of channel inventory. WCDMA includes TD-SCDMA. Both CDMA and WCDMA include multimode LTE. ** WCDMA ROW includes North America.

Regional* CDMA-Based Device Shipment Estimates


(2)

CALENDAR YEAR, MILLIONS, MIDPOINTS(3), AS OF NOVEMBER 17, 2010


Guidance 740 - 790e

800 700 600

Guidance 625 - 650e 500 - 516

183

WCDMA Europe WCDMA Asia

153 154 124 120 178 123 84 43


2011
515 est. 250 est. 765 est.

500
400 300 200 100 0
WCDMA CDMA Total

472 - 480 382

118 80 62 117

121 91

WCDMA ROW** CDMA2K Americas CDMA2K India/China CDMA2K Korea, Japan, SEA, ROW

87 58 28 110 46 53
2007
173 209 382

83
114 67 32
2009
295 213 508

120
80 41
2010
397 est. 241 est. 638 est.

43 56
2008
260 216 476

(2) & (3) See notes included in the appendix section at the end of the presentation. * Regional device shipments are Qualcomm estimates and include handsets, data devices, telematics, security devices and some quantity of channel inventory. WCDMA includes TD-SCDMA. Both CDMA and WCDMA include multimode LTE. ** WCDMA ROW includes North America.

Estimated CDMA-Based Replacement Rate


Worldwide
60% 60%

Regional
NORTH AMERICA

41%
40%

33%

34%

35%

40%

EUROPE

20%

ASIA 20% ROW*

0%

0%

CY08

CY09

CY10

CY11

CY08

CY09

CY10

CY11

2010/2011 KEY DRIVERS Replacement rate cycle driven by broader availability of smartphones Breakage continues to be key driver
8 *ROW (Rest of World) Source: Qualcomm estimates as of November 17, 2010

Estimated CDMA-Based Channel Inventory


EXPECTED SEASONAL BUILD INTO HOLIDAYS
30

Actual Forecast
CDMA ramp in China/India Global WCDMA ramp

25
20

Weeks

Normal Range

15 10 5 0
Contraction & economic weakness Contraction & economic weakness

2001

2002

2003

2004

2005 2006 2007 Calendar years

2008

2009

2010

2011e

Estimated Channel Inventory = Chipset shipment through to consumer device purchase


9 Qualcomm estimates as of November 17, 2010.

CDMA-Based Technologies Estimated Wholesale Device Midpoint ASP Trend


(3) (2) $500 Learning Curves 9711 est. 84% 9911 est. 95% 0711 est. 92%

$400

$300
$194 $192 $205 $215 $214 $214 $219 $205 $186

Midpoint of $185-$195* estimate for FY11

$200

$190*

$100

Voice
$'97 '98 '99 '00 '01

Voice / Data Transition


'02 '03 '04 '05 '06

Voice + Enhanced Data


'07 '08 '09 '10 '11e*

Fiscal Years
Voicecentric devices Growth in CDMA 2000 Focus on developed regions Transition to data Ramp in WCDMA and EV-DO Significant growth in emerging regions Strong 2G to 3G migration DOrA, DOrB, HSPA+ growth, Initial LTE Growth in smartphones and new connected devices

*Guidance as of November 17, 2010. (2) & (3) See notes included in the appendix section at the end of the presentation. 10

Fiscal 2011 Return to Growth


NON-GAAP(4), FISCAL YEARS Revenue Growth
(YoY)

Operating Income Growth (YoY)


11-23%e* 13-18%e* 20% Avg.

22% Avg.

(1%) Avg.

(3%) Avg. 2011e*

2005-08

2009-10

2005-08

2009-10**

2011e*

Strong wireless market


11

Broad, stable licensing program

QCT the strategy is working!

*Guidance as of November 17, 2010 **Excludes $783M related to litigation settlement and $230M related to the KFTC fine. (4) See note included in the appendix section at the end of the presentation.

Fiscal 2011 Guidance


NON-GAAP(4), AS OF NOVEMBER 17, 2010
FISCAL 2010

FISCAL 2011 GUIDANCE

FISCAL 2011 COMMENTS


Modest decrease in average revenue per MSM Prudent inclusion of partial dispute settlement revenues (excluding prior years) -Based on midpoint of guidance, implied royalty rate ~3.3%

REVENUES

$10.98B

~$12.4B - $13.0B
+13-18%

COMBINED R&D & SG&A


OPERATING INCOME TAX RATE

$3.41B

Increase ~7% y-o-y

Growth driven by R&D (3 fold SG&A growth rate)


~22-24% QCT op. margin ~83-85% QTL op. margin

$4.32B
~20%

~$4.8B - $5.3B
+11-23%

~21% ~$2.63 - $2.77


+7-13% Excludes forecasts of unrealized gains/losses on investment portfolio, potential impairments, new acquisitions and stock repurchases.

EPS

$2.46

12

(4) See note included in the appendix section at the end of the presentation.

Qualcomm MEMS Technologies (QMT) Division


Focused on productization E-Readers, initial volumes Handsets, future volume production Synergies with QTL and QCT Licensing strategy secondary at this stage ~$975 million Fiscal 2011 capital spend on fabrication facility Fiscal 2011 operating loss: ~$225 million (~$180 million FY10)
LOW POWER

OUTDOOR VIEWABILITY
FULL COLOR AND VIDEO FRONT LIGHT TOUCH CAPABILITY

Expect to ultimately report QMT as a separate and new segment

13

First Quarter Fiscal 2011 Outlook


AS OF NOVEMBER 17, 2010
Non-GAAP(4) Revenues
(Billions)

Non-GAAP(4) EPS

$3.05-$3.35e $2.67 $0.62

$0.70-$0.74e

Q1'10

Q1'11

Q1'10

Q1'11

MSMs (Millions)

Reported Device Sales(2)(5)


(Billions)

115-119e 92 $24.5

$31.5-$33.5e

Q1'10
14

Q1'11

Sep'09 Qtr

Sep'10 Qtr

(2), (4) & (5) See notes included in the appendix section at the end of the presentation.

First Quarter Fiscal 2011 Guidance


NON-GAAP(4), AS OF NOVEMBER 17, 2010
FOURTH QUARTER FISCAL 2010 FIRST QUARTER FISCAL 2011 GUIDANCE FIRST QUARTER FISCAL 2011 COMMENTS
Sequential increase in average revenue per MSM Total reported device sales up 11-18% sequentially 3G device ASPs up sequentially R&D growth expected to be offset by SG&A decline

REVENUES

$2.95B

~$3.05B - $3.35B
+3-14%

COMBINED R&D & SG&A OPERATING MARGIN

$911M QTL 82% QCT 28%

~Flat QTL ~82% QCT ~28%

TAX RATE

19%

~21%
~13 19% growth year-over-year Excludes forecasts of unrealized gains/losses on investment portfolio, potential impairments, new acquisitions and stock repurchases.

EPS

$0.68

~$0.70 - $0.74
+3-9%

15

(4) See notes included in the appendix section at the end of the presentation.

Cash Returned to Stockholders While Continuing to Invest in the Business


Eight Year Cash Flow
Cash Proceeds $47B
$5B: Proceeds from stock issuance

Cash Uses $47B

$12B: Net purchases of marketable securities


(~75% offshore)

$15B: Return to stockholders (repurchases and dividends)

$42B: Cash Flow from operations before R&D


$13B: R&D $5B Capex

$2B: Investments and acquisitions


16 Above figures in billions, based on components of certain GAAP cash flows for fiscal years 2003 2010.

$14.8 Billion Returned to Stockholders Over 8 Years


(Millions)

Share Repurchases*

(Millions)

Dividends Paid

$3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0


FY'03 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10

$1,400

$9.1B

$1,200

$5.8B

$1,000
$800 $600 $400 $200 $0
FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10

Quarterly Cash Dividend Per Share


$0.25 $0.20 $0.15 $0.10 $0.05 $0.00
Jun-03 Jun-04 Jan-05 Jun-05 Jan-06 Jun-06 Jan-07 Jun-07 Jan-08 Jun-08 Jan-09 Jun-09 Jun-10 Sep-03 Dec-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Dec-09 Sep-10 Dec-10 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10

(Based on Date Payable)


$0.16 $0.14 $0.12 $0.07 $0.035 $0.025 $0.05 $0.17

$0.19

$0.09

17

Note: The Company effected a two-for-one stock split in August 2004. All references to per share data have been adjusted to reflect the stock split. *Gross repurchases

Financial Strength
(IN BILLIONS)
Domestic Offshore Total Cash & Marketable Securities Total Assets

SEPT 2009
$7.9 $9.8 $17.7

SEPT 2010
$6.3 $12.1 $18.4 Cash Resources and Operating/Stock Repurchases Flexibility

$27.4 $20.3 $0.2

$30.6 $20.9 $1.3 Solid Balance Sheet

Stockholders Equity
Debt* EBITDA(1) Non-GAAP(4) Free Cash Flows**(1)

$2.2 $6.9

$4.2 $4.2

Cash Flow to Support Future Growth and Dividends

18

*Includes capital leases and loan payable to banks related to India BWA spectrum purchase. (1) & (4) See note included in the appendix section at the end of the presentation. **Free Cash flows is defined as net cash provided by operating activities less capital expenditures.

Cash and Marketable Securities


ONSHORE CASH ~$6.3B SEPT. 10 BALANCE
Target minimum cash/liquidity $5B

OFFSHORE CASH
~$12.1B Domiciled in foreign subsidiary

PRIMARY SOURCES

QTL Licensing
U.S. operations R&D investments

QCT Chipsets

International operations Acquisitions Strategic Investments: - India spectrum - QMT: FAB investment Low High marginal tax

PRIMARY USES

Acquisitions

Cash dividends
Stock repurchases

MARGINAL TAX RATE REPATRIATION

High n/a

19

THANK YOU

Appendix

Footnotes
(1) In the year-over-year comparisons, the following should be noted: fiscal 2009 results (GAAP and Non-GAAP) included a $783 million charge related to a litigation settlement and patent agreement with Broadcom Corporation, including $35 million recorded in the fourth quarter of 2009; both the fourth quarter and fiscal 2009 results (GAAP and Non-GAAP) also included a $230 million charge related to the Korea Fair Trade Commission fine; GAAP results in fiscal 2009 included a $155 million tax benefit related to prior years as a result of tax audits; net income was favorably impacted in fiscal 2010 (GAAP and Non-GAAP) due to a significant increase in net investment income; and fiscal 2009 operating and free cash flow included the receipt of a $2.5 billion payment related to the license and settlement agreements with Nokia. Total reported device sales is the sum of all reported sales in U.S. dollars (as reported to us by our licensees) of all licensed CDMA-based subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period. The reported quarterly estimated ranges of ASPs and unit shipments are determined based on the information as reported to us by our licensees during the relevant period and our own estimates of the selling prices and unit shipments for licensees that do not provide such information. Not all licensees report sales, selling prices and/or unit shipments the same way (e.g., some licensees report selling prices net of permitted deductions, such as transportation, insurance and packing costs, while other licensees report selling prices and then identify the amount of permitted deductions in their reports), and the way in which licensees report such information may change from time to time. Total reported device sales, estimated unit shipments and estimated ASPs for a particular period may include prior period activity that is reported with the activity for the particular period. For results using assumptions in effect for quarters prior to the second quarter of fiscal 2010, please refer to the Changes to QTL Metrics table of our April 21, 2010 earnings release that was furnished to the Securities and Exchange Commission on Form 8-K.

(2)

(3)
(4)

The midpoints of the estimated ASP and device shipment ranges for the relevant periods are identified for comparison purposes only and do not indicate a higher degree of confidence in the midpoints.
Non-GAAP results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation, certain tax items that are not related to the current year and acquired in-process research and development (R&D) expense. Royalties are recognized when reported, generally one quarter following shipment.

(5)
22

Treasury Portfolio Allocation


DIVERSIFIED FOR LIQUIDITY, INCOME AND GROWTH
ASSET TYPE Money Market Funds Money Market Securities
CASH

10/29/10 17% 9% 26%

KEY ATTRIBUTES

Government Securities Invt Grade MBS & ABS Invt Grade Corporate Bonds Sr. Secured Corporate Loans Non-Invt Grade Bonds Preferred Securities
BONDS

6% 3% 29% 11% 7% 4% 60% Generally investment grade; fixed maturity Investment grade; ~1.4 year average duration Floating rate, below investment grade, senior secured debt

Preferred Securities Domestic (US) Equities European Equities Pacific Equities


STOCKS

4% 8% 1% 1% 14%

Generally investment grade; perpetual maturity

Various managers/ETFs

TOTAL

100%

23

Reconciliations

Non-GAAP Revenues and Operating Income Growth


Reconciliation of Non-GAAP to GAAP
Revenues and Operating Income Growth ($ in millions) Fiscal Year Ended September 26, 2010 Share-Based Non-GAAP (1) Compensation Revenues Operating income (loss) Revenues change compared to prior year Operating income change compared to prior year $ $ 10,982 $ 4,316 $ 6% 4% In-Process R&D $ (3) $ QSI 9 $ (416) $ GAAP 10,991 3,283 6% 47%

$ (614) $

Fiscal Year Ended September 27, 2009 Non-GAAP Excluding Broadcom and KFTC Charges Revenues Operating income (loss) Revenues change compared to prior year Operating income change compared to prior year $ $ 10,387 $ 4,166 $ (7% ) (10% ) Broadcom Litigation Settlement Charge $ (230) $

KFTC Fine

Non-GAAP (1)

Share-Based Compensation $ (584) $

In-Process R&D $ (6) $

QSI 29 $ (337) $

GAAP 10,416 2,226 (7% ) (40% )

$ (783) $

10,387 $ 3,153 $

Fiscal Year Ended September 28, 2008 Share-Based Non-GAAP (1) Compensation Revenues Operating income (loss) Revenues change compared to prior year Operating income change compared to prior year $ $ 11,130 $ 4,604 $ 25% 27%

In-Process R&D $ (14) $

QSI 12 $ (320) $

GAAP 11,142 3,730 26% 29%

$ (540) $

25

Non-GAAP Revenues and Operating Income Growth, (continued)


Fiscal Year Ended September 30, 2007 Share-Based Non-GAAP (1) Compensation Revenues Operating income (loss) Revenues change compared to prior year Operating income change compared to prior year $ $ 8,870 $ 3,630 $ 18% 9% In-Process R&D $ (10) $ QSI 1 $ (250) $ GAAP 8,871 2,883 18% 7% $ (487) $

Fiscal Year Ended September 24, 2006 Share-Based Non-GAAP (1) Compensation Revenues Operating income (loss) Revenues change compared to prior year Operating income change compared to prior year $ $ 7,526 $ 3,341 $ 33% 36%

In-Process R&D $ (22) $

QSI $ (134) $

GAAP 7,526 2,690 33% 13%

$ (495) $

Fiscal Year Ended September 25, 2005 Share-Based Non-GAAP (1) Compensation Revenues Operating income (loss) Revenues change compared to prior year Operating income change compared to prior year $ $ 5,673 $ 2,455 $ 13% 7% -

In-Process R&D $ $ $ $

QSI $ (69) $

GAAP 5,673 2,386 16% 12%

26

Non-GAAP Revenues and Operating Income Growth, (continued)

Fiscal Year Ended September 26, 2004 Non-GAAP Including QTL Adjustment QTL Adjustment (2) Revenues Operating income (loss) $ $ 5,031 $ 2,300 $

Non-GAAP (1)

Share-Based Compensation -

In-Process R&D $ $ $ $

QSI $ (20) $

GAAP 4,880 2,129

(151) $ (151) $

4,880 $ 2,149 $

(1) Non-GAAP results exclude the Qualcomm Strategic Initiatives (QSI) segment, certain share-based compensation and acquired in-process research and development expense. (2) Prior to the fourth quarter of fiscal 2004, we recorded royalty revenues from certain licensees based on our estimates of royalties during the period they were earned. Starting in the fourth quarter of fiscal 2004, we began recognizing royalty revenues solely based on royalties reported by licensees during the quarter. The change in the timing of recognizing royalty revenues was made prospectively and had the initial one-time effect of reducing royalty revenues recorded in the fourth quarter of fiscal 2004. The QTL Adjustment shown here is the impact on revenues and operating income as if the new method had been applied at the beginning of fiscal 2004.

27

Non-GAAP Free Cash Flows


(In millions)

Twelve Months Ended September 26, 2010 Share-Based Tax Compensation Items $ (45) (a) $ $ (45) $ In-Process R&D $ $ -

Net cash provided (used) by operating activities Less: capital expenditures Free cash flow

Non-GAAP $ 4,511 (350) $ 4,161

QSI $ (390) (76) $ (466)

GAAP 4,076 (426) $ 3,650 $

Twelve Months Ended September 27, 2009 Share-Based Tax Compensation Items $ (79) (a) $ $ (79) $ In-Process R&D $ $ -

Net cash provided (used) by operating activities Less: capital expenditures Free cash flow

Non-GAAP $ 7,556 (649) $ 6,907

QSI $ (305) (112) $ (417)

GAAP 7,172 (761) $ 6,411 $

(a) Incremental tax benefits from stock options exercised during the period.

28

EBITDA

(In millions)
Fiscal Year 2009 Fiscal Year 2010

Net income Plus: Income tax expense Plus: Depreciation and amortization Less: Interest and dividend income, net EBITDA

1,592 484 635 (492) 2,219

3,247 787 666 (472) 4,228

EBITDA is defined as Earnings (Loss) Before Interest, Taxes, Depreciation and Amortization

29

Non-GAAP R&D and SG&A Combined


Reconciliation of Non-GAAP to GAAP
Combination of R&D and SG&A
($ in millions)

Fiscal 2010 Results Non-GAAP combined R&D and SG&A expenses (1) QSI In-process R&D Total combined R&D and SG&A expenses excluding certain share-based compensation Share-based compensation allocated to SG&A & R&D Total GAAP combined R&D and SG&A expenses (2) $ $ $ 3,410 206 3

Fiscal 2011 Guidance* Increase approx. 7% sequentially (est.) not provided not provided

$ $ $

3,619 572 4,191

Increase approx. 7 - 8% sequentially (est.)

Increase approx. 8 - 9% sequentially (est.)

(1) Non-GAAP combined R&D and SG&A expenses guidance for fiscal 2011 excludes expenses related to the QSI segment, acquired in-process R&D and certain share-based compensation. (2) FY11 total GAAP combined R&D and SG&A expenses guidance includes an estimate of the share-based compensation expense allocated to R&D and SG&A. * Guidance as of November 17, 2010

30

Non-GAAP R&D and SG&A Combined


Reconciliation of Non-GAAP to GAAP
Combination of R&D and SG&A
($ in millions)

Q4 FY2010 Results Non - GAAP combined R&D and SG&A expenses (1) QSI Total combined R&D and SG&A expenses excluding certain share-based compensation Share-based compensation allocated to SG&A & R&D Total GAAP combined R&D and SG&A expenses (2) $ $ 911 67

Fiscal Q1 - 2011 Guidance* Increase approx. 0% sequentially (est.) not provided

$ $ $

978 149 1,127

Decrease approx. (1%) sequentially (est.)

Decrease approx. (1%) sequentially (est.)

(1) Non-GAAP combined R&D and SG&A expenses guidance for Q1 FY11 excludes expenses related to the QSI segment, acquired in-process R&D and certain share-based compensation. (2) Q1 FY11 total GAAP combined R&D and SG&A expenses guidance includes an estimate of the share-based compensation expense allocated to R&D and SG&A. * Guidance as of November 17, 2010

31

Business Outlook
AS OF NOVEMBER 17, 2010
FIRST FISCAL QUARTER
Q1 FY10 Results Current Guidance Q1 FY11 Estimates $2.67B $0.62 $3.05B - $3.35B increase 14% - 26% $0.70 - $0.74 increase 13% - 19% 21%

Non-GAAP
Revenues Year-over-year change Diluted earnings per share (EPS) Year-over-year change Effective income tax rate

GAAP
Revenues Year-over-year change Diluted EPS Year-over-year change Diluted EPS attributable to QSI Diluted EPS attributable to share-based compensation Diluted EPS attributable to certain tax items Effective income tax rate Sums may not equal totals due to rounding. $2.67B $0.50 ($0.03) ($0.07) ($0.02) $3.05B - $3.35B increase 14% - 25% $0.58 - $0.62 increase 16% - 24% ($0.05) ($0.07) $0.00 19%

32

Business Outlook
AS OF NOVEMBER 17, 2010
FISCAL YEAR
FY 2010 Results Current Guidance FY 2011 Estimates $10.98B $4.32B $2.46 20% $12.4B - $13.0B increase 13% - 18% $4.8B - $5.3B increase 11% - 23% $2.63 - $2.77 increase 7% - 13% 21%

Non-GAAP
Revenues Year-over-year change Operating Income Year-over-year change Diluted earnings per share (EPS) Year-over-year change Effective income tax rate

GAAP
Revenues Year-over-year change Operating Income Year-over-year change Operating income (loss) attributable to QSI Operating income (loss) attributable to shared-based compensation Operating income (loss) attributable to in-process R&D Diluted EPS Year-over-year change Diluted EPS attributable to QSI Diluted EPS attributable to share-based compensation Diluted EPS attributable to certain tax items Effective income tax rate Sums may not equal totals due to rounding. $10.99B $3.28B ($0.42B) ($0.61B) ($0.00B) $1.96 ($0.13) ($0.27) ($0.10) 20% $12.4B - $13.0B increase 13% - 18% $3.6B - $4.1B increase 10% - 25% ($0.5B) ($0.7B) N/A $2.08 - $2.22 increase 6% - 13% ($0.22) ($0.32) ($0.01) 19%

33

Non-GAAP Results
SEGMENTS Non-GAAP (1) Share-Based Compensation (2) Tax Items (3) InProcess R&D QSI (4) GAAP (1)

Q4 - FISCAL 2010
Revenues Operating income (loss) EBT Net income (loss) Diluted EPS Diluted shares used $2,952 $1,130 $1,361 $1,105 $0.68 1,621 $ ($161) ($161) ($120) ($0.07) 1,621 $ $ $ ($40) ($0.02) 1,621 $ $ $ $ $ 1,621 $ ($132) ($153) ($80) $(0.05) 1,621 $2,952 $837 $1,047 $865 $0.53 1,621

Q1 - FISCAL 2010
Revenues Operating income (loss) EBT Net income (loss) Diluted EPS Diluted shares used $2,668 1,134 1,310 1,041 $0.62 1,691 $ (151) (151) (114) ($0.07) 1,691 $ (32) $(0.02) 1,691 $ $ 1,691 $2 (104) (107) (54) ($0.03) 1,691 $2,670 879 1,052 841 $0.50 1,691

12 MONTHS - FISCAL 2010


Revenues
Change from prior year

$10,982
6%

$ ($614)
(5%)

$ $ $ ($159)
N/M

$ ($3)
N/M

$9
(69%)

$10,991
6%

Operating income (loss)


Change from prior year

$4,316
37%

($416)
(23%)

$3,283
47%

EBT
Change from prior year

$5,086
68%

($614)
(5%)

($3)
N/M

($435)
(20%)

$4,034
94%

Net income (loss)


Change from prior year

$4,071
86%

($442)
3%

($3)
N/M

($220)
13%

$3,247
104%

Diluted EPS
Change from prior year

$2.46
88%

($0.27)
0%

($0.10)
N/M

$ N/M

($0.13)
13%

$1.96
106%

Diluted shares used


34

1,658

1,658

1,658

1,658

1,658

1,658

Non-GAAP Results, (continued)


12 MONTHS - FISCAL 2009
Revenues Operating income (loss) EBT Net income (loss) Diluted EPS Diluted shares used $10,387 3,153 3,027 2,187 $1.31 1,673 $ (584) (584) (455) ($0.27) 1,673 $ 118 $0.07 1,673 $ (6) (6) (6) $ 1,673 $29 (337) (361) (252) ($0.15) 1,673 $10,416 2,226 2,076 1,592 $0.95 1,673

(1) Fiscal 2009 results included a $783 million charge related to a litigation settlement and patent agreement with Broadcom Corporation, including $748 million recorded in the second quarter of fiscal 2009 and $35 million recorded in the fourth quarter of 2009. T he fourth quarter of fiscal 2009 results also included a $230 million charge related to the Korea Fair T rade Commission fine. (2) Certain share-based compensation is included in operating expenses as part of employee-related costs but is not allocated to the Companys segments as such costs are not considered relevant by management in evaluating segment performance. (3) During the first, second, third and fourth quarters of fiscal 2010, the Company recorded $32 million, $33 million, $32 million and $40 million in state tax expense, respectively, or $0.02 diluted loss per share for each quarter, because deferred revenue related to the license and settlement agreements with Nokia was taxable in fiscal 2010 but the resulting deferred tax asset will reverse in future years when the Companys state tax rate, based on the legislation in effect during fiscal 2010, will be lower. During the third quarter of fiscal 2010, the Company recorded $22 million of tax expense, or $0.01 diluted loss per share, as a result of prior year tax audits completed during the third quarter. (4) At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the Non-GAAP tax provision, the tax items column and the tax provision related to share-based compensation from the GAAP tax provision. N/M - Not Meaningful Sums may not equal totals due to rounding.

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Non-GAAP Tax Rates


Reconciliation of Non-GAAP Tax Rate to GAAP Tax Rate (in millions)
Three Months Ended S eptember 26, 2010 Non-GAAP Results Income (loss) before income taxes Income tax (expense) benefit Net income (loss) Tax rate $1,361 (256) $1,105 19% S hare-Based Compensation ($161) 41 ($120) 25% In-Process R&D $$N/M GAAP Results $1,047 (182) $865 17%

Tax Items $(40) ($40) N/M

QS I (a) ($153) 73 ($80) N/M

Twelve Months Ended S eptember 26, 2010 Non-GAAP Results Income (loss) before income taxes Income tax (expense) benefit Net income (loss) Tax rate $5,086 (1,015) $4,071 20% S hare-Based Compensation ($614) 172 ($442) 28% In-Process R&D ($3) ($3) N/M GAAP Results $4,034 (787) $3,247 20%

Tax Items $(159) ($159) N/M

QS I ($435) 215 ($220) 49%

(a) At fiscal year-end, the sum of the quarterly tax provisions for each column, including QSI, equals the annual tax provisions for each column computed in accordance with GAAP. In interim quarters, the tax provision for the QSI operating segment is computed by subtracting the NonGAAP tax provision, the tax items column and the tax provision related to share-based compensation from the GAAP tax provision. N/M - Not Meaningful
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