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Intel CorporationIntel Corporation

Business PlanBusiness Plan

By: Tom TokmenkoBy: Tom Tokmenko

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Mission StatementMission Statement Our missionOur mission

Delight our customers, employees, and shareholders by relentlessly Delight our customers, employees, and shareholders by relentlessly delivering the platform and technology advancements that become delivering the platform and technology advancements that become essential to the way we work and live.essential to the way we work and live.

Our valuesOur valuesCustomer orientationCustomer orientationResults orientationResults orientationRisk takingRisk takingGreat place to workGreat place to workQualityQualityDisciplineDiscipline

Our objectivesOur objectivesExtend our silicon technology and Extend our silicon technology and

manufacturing leadershipmanufacturing leadershipDeliver unrivaled microprocessorsDeliver unrivaled microprocessors

and platforms. and platforms. Grow profitability worldwideGrow profitability worldwide

Excel in customer orientationExcel in customer orientation

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The Team – The Team – Major ExecutivesMajor Executives

Paul S. OtelliniPaul S. Otellini is president and chief executive officer of Intel is president and chief executive officer of Intel Corporation. He became the company's fifth CEO on May 18, 2005, Corporation. He became the company's fifth CEO on May 18, 2005, succeeding Craig R. Barrett. Otellini previously had served as Intel's succeeding Craig R. Barrett. Otellini previously had served as Intel's president and chief operating officer, positions he held since 2002, president and chief operating officer, positions he held since 2002, the same year he was elected to Intel's board of directors. Otellini the same year he was elected to Intel's board of directors. Otellini joined Intel in 1974. Otellini received a bachelor's degree in joined Intel in 1974. Otellini received a bachelor's degree in economics from the University of San Francisco in 1972, and an MBA economics from the University of San Francisco in 1972, and an MBA from the University of California, Berkeley in 1974. from the University of California, Berkeley in 1974. Salary per year: Salary per year: 14,581,90014,581,900

Andy D. BryantAndy D. Bryant is executive vice president of Technology, is executive vice president of Technology, Manufacturing and Enterprise Services, and chief administrative Manufacturing and Enterprise Services, and chief administrative officer of Intel Corporation. He is responsible for technology officer of Intel Corporation. He is responsible for technology development and manufacturing, financial operations, human development and manufacturing, financial operations, human resources, information technology and e-business functions and resources, information technology and e-business functions and activities worldwide and has been part of the team since 1981.activities worldwide and has been part of the team since 1981.

Sohail U. AhmedSohail U. Ahmed is vice president and director of Logic Technology is vice president and director of Logic Technology Development for Intel Corporation. Ahmed joined Intel in 1984, Development for Intel Corporation. Ahmed joined Intel in 1984, working as a process engineer. Ahmed is responsible for the working as a process engineer. Ahmed is responsible for the development and deployment of next-generation silicon logic development and deployment of next-generation silicon logic technologies that will produce future Intel microprocessors. technologies that will produce future Intel microprocessors.

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Market SummaryMarket Summary

The Intel World Ahead Program has worked with over 70 countries to The Intel World Ahead Program has worked with over 70 countries to allow more people to participate in today’s digital world. With over 200 allow more people to participate in today’s digital world. With over 200 active programs worldwide, the company is putting the right technology active programs worldwide, the company is putting the right technology in the hands of people and businesses to improve education and in the hands of people and businesses to improve education and healthcare, stimulate economies, and enrich lives. Collaborations with healthcare, stimulate economies, and enrich lives. Collaborations with governments, other industry leaders, and non-governmental governments, other industry leaders, and non-governmental organizations have allowed us to accelerate access to technology for the organizations have allowed us to accelerate access to technology for the next billion people.next billion people. Net Value ( Billions)Net Value ( Billions)

Among the customers include original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who make computer systems, cellular handsets and handheld computing devices, and telecommunications and networking communications equipment; PC and network communications products users (including individuals, large and small businesses, and service providers) who buy PC components and board-level products, as well as our networking and communications products, through distributor, reseller, retail, and OEM channels throughout the world; and other manufacturers, including makers of a wide range of industrial and communications equipment.

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OpportunitiesOpportunities Intel supports global Intel supports global

standards by standards by participating in their participating in their development and development and designing them into our designing them into our products. Pursuing the products. Pursuing the latest in technological latest in technological advancement, Intel is advancement, Intel is working with more than working with more than 250 standards and 250 standards and industry groups industry groups worldwide to help worldwide to help facilitate growth and facilitate growth and expansion of the expansion of the industry as a whole.industry as a whole.

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Business ConceptBusiness Concept Our success lies in the ability to exceed the Our success lies in the ability to exceed the

expectations of our customers, employees, expectations of our customers, employees, and stockholders. We are Intel ,sponsors of and stockholders. We are Intel ,sponsors of tomorrow, not only through our technical tomorrow, not only through our technical innovation, but through our endless efforts in innovation, but through our endless efforts in education, environmental sustainability, education, environmental sustainability, healthcare, and much, much more. We believe healthcare, and much, much more. We believe that technology makes life more exciting and that technology makes life more exciting and can help improve the lives of people around can help improve the lives of people around the world. Therein lies the endless opportunitythe world. Therein lies the endless opportunity..

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CompetitionCompetition

The intelligence inside your computer could very well be The intelligence inside your computer could very well be Intel. The company which holds about 80% of the market Intel. The company which holds about 80% of the market share for microprocessors that go into desktop and share for microprocessors that go into desktop and notebook computers, and also into computer servers -- is notebook computers, and also into computer servers -- is still #1 in semiconductors. Archrival AMD ate into Intel's still #1 in semiconductors. Archrival AMD ate into Intel's market share for a time, but the Intel fought back with market share for a time, but the Intel fought back with faster processors and advanced manufacturing technology. faster processors and advanced manufacturing technology. Intel also makes embedded semiconductors for the Intel also makes embedded semiconductors for the industrial, medical, and in-vehicle infotainment markets. industrial, medical, and in-vehicle infotainment markets.

Intel is the world’s largest semiconductor chip maker, the Intel is the world’s largest semiconductor chip maker, the inventor of the x86 series of microprocessors which can be inventor of the x86 series of microprocessors which can be found in the majority of most personal computers most found in the majority of most personal computers most notably including Dell.notably including Dell.

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Goals & ObjectivesGoals & Objectives Exploratory Research at Intel is advancing the state of the art Exploratory Research at Intel is advancing the state of the art

through world class technical expertise, open collaboration and through world class technical expertise, open collaboration and university ties, and multi-disciplinary teams. Further investigation university ties, and multi-disciplinary teams. Further investigation into new technologies is currently utilized every day and will into new technologies is currently utilized every day and will hopefully be placed into developing products for future use. This hopefully be placed into developing products for future use. This research is concentrated on improving the power profile of Intel research is concentrated on improving the power profile of Intel components, taking a systems approach to designing power components, taking a systems approach to designing power efficient platforms, and collaborating with industry partners and efficient platforms, and collaborating with industry partners and customers to develop broader energy–efficient system solutionscustomers to develop broader energy–efficient system solutions

Intel researchers are also redefining the mobile device, how it Intel researchers are also redefining the mobile device, how it interacts with its environment and how we interact with it to lead interacts with its environment and how we interact with it to lead the industry in delivering new products and services to open a the industry in delivering new products and services to open a whole new internet experience soon.whole new internet experience soon.

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Financial PlanFinancial Plan Stock grants within Intel may include Restricted Stock Units (RSUs) or, Stock grants within Intel may include Restricted Stock Units (RSUs) or,

depending on grade level, a combination of Restricted Stock Units and depending on grade level, a combination of Restricted Stock Units and Stock Options. Stock grants vest in equal installments of 25 percent each Stock Options. Stock grants vest in equal installments of 25 percent each year over four years and heavily contribute to the success of the company year over four years and heavily contribute to the success of the company

A A Restricted Stock UnitRestricted Stock Unit is an agreement by Intel to issue an actual share is an agreement by Intel to issue an actual share of Intel stock at $0 cost to employees (other than applicable taxes) once of Intel stock at $0 cost to employees (other than applicable taxes) once vesting requirements have been satisfied. The actual value to employees is vesting requirements have been satisfied. The actual value to employees is based on the market value of Intel stock on the vesting date. based on the market value of Intel stock on the vesting date.

A A Stock OptionStock Option is the right to purchase a certain amount of Intel stock at is the right to purchase a certain amount of Intel stock at a set price during a specified time period once vesting requirements have a set price during a specified time period once vesting requirements have been satisfied.been satisfied.

The company now expects third-quarter revenue to be $11.0 billion, plus or The company now expects third-quarter revenue to be $11.0 billion, plus or minus $200 million, compared to the previous expectation of between minus $200 million, compared to the previous expectation of between $11.2 and $12.0 billion. $11.2 and $12.0 billion.

Comparison of Rival Company Revenues in terms of current top products..

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Resource RequirementsResource Requirements Intel supports global standards by participating in their development and designing Intel supports global standards by participating in their development and designing

them into their products. Pursuing the latest in technological advancement, Intel is them into their products. Pursuing the latest in technological advancement, Intel is working with more than 250 standards and industry groups worldwide to help working with more than 250 standards and industry groups worldwide to help facilitate growth and expansion of the industry in whole as well as the staff members.facilitate growth and expansion of the industry in whole as well as the staff members.

Computing and consumer electronics standardsComputing and consumer electronics standardsIntel is involved in the development and implementation of standards that are Intel is involved in the development and implementation of standards that are positively impacting computing and consumer electronics platforms. positively impacting computing and consumer electronics platforms.

Silicon and semiconductor standardsSilicon and semiconductor standardsWorking with key industry silicon and semiconductor organizations worldwide, Intel Working with key industry silicon and semiconductor organizations worldwide, Intel helps ensure standards-based technological advancements. helps ensure standards-based technological advancements.

Software and web standardsSoftware and web standardsIntel participates in software and web standards that are helping to secure Intel participates in software and web standards that are helping to secure internet operations and the adoption of open standards. internet operations and the adoption of open standards.

Networking and communications standardsNetworking and communications standardsIntel is helping to accelerate the convergence of communications and Intel is helping to accelerate the convergence of communications and networking devices by driving the development and broad adoption of networking devices by driving the development and broad adoption of numerous industry standards. numerous industry standards.

National and International Standards CommitteesNational and International Standards CommitteesIntel actively participates in key industry organization and formal standards Intel actively participates in key industry organization and formal standards organizations around the world to further expand the value of standards-organizations around the world to further expand the value of standards-based advances in technologybased advances in technology

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Risks & RewardsRisks & Rewards ““At Intel Capital, we only succeed when our portfolio of At Intel Capital, we only succeed when our portfolio of

companies succeeds. That’s why we do everything we can companies succeeds. That’s why we do everything we can to ensure a positive return. We lead the majority of to ensure a positive return. We lead the majority of investments, participate on boards, and collaborate with investments, participate on boards, and collaborate with the investment community at large.”the investment community at large.”

Global ReachGlobal Reach With offices in more than 25 countries, Intel Capital offers a With offices in more than 25 countries, Intel Capital offers a

vast network of resources in established and emerging vast network of resources in established and emerging markets.markets.

Technology ExpertiseTechnology Expertise Portfolio companies gain access to Intel’s manufacturing Portfolio companies gain access to Intel’s manufacturing

and engineering knowledge, benefit from the work of Intel’s and engineering knowledge, benefit from the work of Intel’s labs, and are privy to architecture roadmaps.labs, and are privy to architecture roadmaps.

Risks: Stocks fluctuate by wide margins… Be Risks: Stocks fluctuate by wide margins… Be expectant of surprise..expectant of surprise..

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Key IssuesKey Issues Technology Technology downturn that has continued since 2002, where that has continued since 2002, where

Intel cut thousands of workers from its Intel cut thousands of workers from its payroll to reduce to reduce costs, trying to maintain employee numbers and begin costs, trying to maintain employee numbers and begin hiring again. hiring again.

Intel has often been accused by competitors of using legal Intel has often been accused by competitors of using legal claims to thwart competition. Intel claims that it is claims to thwart competition. Intel claims that it is defending its intellectual property. Intel has been plaintiff defending its intellectual property. Intel has been plaintiff

and defendant in numerous legal actionsand defendant in numerous legal actions. . They are working They are working towards settling disputes within the company and hope to towards settling disputes within the company and hope to turn around the negative feedback in future year with new turn around the negative feedback in future year with new groundbreaking products. groundbreaking products.