Pricing Promotion Process & Guidelines

Corp Biz Ops

March 2021
[AMD Official Use Only]

Mission Statement

…Proactively create the Strategically

Aligned
conditions under which solid Planned in Operationally
Advance Efficient
promotional offers are designed,
Customer
executed, and measured to Targeted
Correctly
Executed
boost future revenue and Risk
profitability… Managed Measurable
Goals
Simply
Communicated

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[AMD Official Use Only]

What is a Pricing Promotion?

• Temporary authorization to sell Xilinx’ products at a discount
• Terms are valid only during the promotional period
• Promotion may be cancelled or extended at Xilinx’ discretion
• No expectation should be set that these prices are applicable post the promotion expiration date for new or additional
orders
• Promotional pricing applies to opportunities brought in during the promotional period and should have a timeframe
regarding shipment to receive the promotional pricing
• Xilinx reserves the right to increase prices as part of any MPA/MPPI program or amend distributor margin post the
promotional period
• Some reasons why promotions are used:
• Distribution Margin  support higher margin payout to incentivize distributors
• Incentivized to capture higher design wins, new customers or market entry, or customer adoption
• Market Share  to capitalize share gain and increase revenue when late to market or entering a new market with
high growth potential
• Revenue  maintaining revenue which may have declined or is threatened to decline due to market conditions (ex.
COVID-19)
• This reason is highly exception based as it may impact production business

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[AMD Official Use Only]

Roles & Responsibilities

• BU Product/Segment Lead or Product Marketing (Responsible, Accountable)
• Initiates request with Corp and/or BU Biz Ops Lead
• Provides the objective, problem statement, desired outcome, measurable goals
• Gets any required buy in or approvals where there are potential price contamination or exposure risks
• Monitors and reports results to measure program success (either monthly or quarterly)
• Creates training collateral for external and internal teams
• Conducts training to internal and external teams (Sales, BU Biz Ops, Corp Biz Ops)
• Corp & BU Biz Ops (Accountable, Consulted)
• Provide quoting support (BU Biz Ops)
• Alignment to the promotional request and measurable goals (Both)
• Review and provide recommendation to the SRP discounting or margin payout (Both)
• Pricing Director  Provides final approval for any promotion (Corp Biz Ops)
• Sales (Consulted, Informed)
• VP of Sales or Designate (ex. Sales Distribution Director)
• Must approve supporting the promotional program and agree to the objectives, desired outcome, and goals
• Must approve any changes to where the distribution margin payout is less than standard margin payouts
• This may occur due to SRP discounting levels where we offer an attractive price but need Distribution support on margins

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[AMD Official Use Only]

What is Required Prior to Initial Meeting

• Mission: Statement to define the long-term company expectation in a manner that can be accepted and visualized by
the targeted audience. This statement should be written from the targeted audiences perspective.
• The targeted audience can be the customer, sales, distributor, internal employees, etc
• This must be agreed upon by all stakeholders
• Problem Statement: What problem are we trying to solve (short term and long term)
• Problem 1
• Problem 2
• Problem 3
• Objectives: Define a maximum of three items to achieve as the end state (ex. Customer adoption, more revenue)
• Objective 1
• Objective 2
• Objective 3
• Goals: What measurable goals are being set to determine the program is successful?
• State what will be tracked and the value. What is the baseline and how much more are we expecting to get with this promotion.
• This can be number of customers, design wins, revenue, etc

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[AMD Official Use Only]

Pricing Promotion Checklist

Internal External Comments

Promotion Details
- Documented business requirements x See slide 5
- Applicable part numbers x x Promo can be on standard part or require new part set up
- Rules of the promo x x

- How is pricing different x x

-- Table showing pricing structure / discounting x Table to provide internally to Sales Ops, BU Biz Ops, and GPS

Terms & Conditions x x Includes any exclusions (ex. region, market segment, repeat buys, MOQ, NCNR terms, etc)

Promotion Timeline

- Effective Dates (start and end date) x x

- Deadline for quote approval or entry x x Required if this differs from the start & end date

- Deadline for PO entry x x Required if this differs from the start & end date

Training Collateral & FAQ x x Required for Sales (internal/external), BU Biz Ops, GPS

Transaction Details x x

- How to receive the promotional price x x CPQ, online store, etc

- Details required in quote to receive promo x x Ex: xFusion XPA required ‘XPA 15-25-40 Promo’ in the COMPASS quote notes, attach email approval

Contact Details x x Need contact name and email address on who to contact for all promotion related questions

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[AMD Official Use Only]

Process Flow Chart

Non-Silicon:
BU Product/Segment Lead

- PL88  Include BU Segment Lead

- All Other  BU Segment Lead not
- Prepare promotion and training collateral
Product Marketing

required (unless segment specific)

Silicon: (Sales, Corp Biz Ops, BU Biz Ops)
- Include BU Segment Lead if - New or existing part setup process - Obtain any required approvals with Sales
Complete prior to 1st meeting promotion is segment specific - Any online/e-store/traditional selling or Management
requirements
Prepare
Requirements for Set up review with
Complete promotional Finalize promotional Promotional
Promotion Corp & BU Biz Ops
specific tasks program Program Launched
(see p.5)

- Review pricing portion of promotion

- Review training collateral
Corp & BU Biz Ops

No Yes Yes No
Complete data
Pricing
analysis and
Alignment Director Alignment
determine quote
Approval
resource support

No Yes

Attend training
Sales

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