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1 © 2013 Broadcom Corporation. All rights reserved.
BROADCOM CORPORATION CORPORATE OVERVIEW
Q1 2013
2 © 2013 Broadcom Corporation. All rights reserved.
CAUTIONARY STATEMENT
This presentation may contain forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include the potential growth of the markets in which we compete and the development status and planned availability of new products. In fact, all statements that we make or incorporate by reference in the presentation, other than statements or characterizations of historical fact, are forward-looking statements. It should be clearly understood that these forward-looking statements, and our assumptions about the factors that influence them, are based on the limited information available to us at this date. Such information is subject to change, and we may not inform you when changes occur. We undertake no obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.
Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those described in the statements you hear today as a result of various factors. We refer you to our Form 10-K for the year ended December 31, 2012, subsequent and forthcoming 10-Qs and other filings with the SEC, which discuss some of the important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition.
For additional financial and statistical information, including the information disclosed in accordance with SEC Regulation G, please see the Investors section of our website.
Broadcom®, the pulse logo, Connecting everything®, the Connecting everything logo, the 5G WiFi logo, NetXtreme II®, StrataXGS®, VideoCore®, XGS Core®, XLP®, Xtendnet®, and StrataDNX™ are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names mentioned are the property of their respective owners.
3 © 2013 Broadcom Corporation. All rights reserved.
ABOUT BROADCOM
2012 Net Revenue of $8.01 Billion
Founded in 1991
Initial Public Offering in April 1998 (NASDAQ-BRCM)
A Global Leader in Semiconductors for Wired and Wireless Communications
Broad IP Portfolio with More than 18,900 U.S. and Foreign Patents and Applications
One of the Largest Volume Fabless Semiconductor Suppliers
~11,550 Employees Worldwide
4 © 2013 Broadcom Corporation. All rights reserved.
BROADCOM ORGANIZATION
Business Groups
Henry Samueli, Ph.D. Co-Founder, Chief Technical Officer, Chairman of the Board
Scott A. McGregor President and
Chief Executive Officer, Board Member
Other Corporate Executives
Rajiv Ramaswami, Ph.D.
Executive VP and GM, Infrastructure and Networking Group
Daniel Marotta
Executive VP and GM, Broadband Communications Group
Robert Rango
Executive VP and GM, Mobile and Wireless Group
Eric Brandt
Executive VP and Chief Financial Officer
Art Chong
Executive VP, General Counsel and Secretary
Neil Kim
Executive VP, Operations and Central Engineering
Michael Hurlston
Executive VP, Worldwide Sales
Terri Timberman
Executive VP, Human Resources
Thomas Lagatta
Executive VP, Business Development
5 © 2013 Broadcom Corporation. All rights reserved.
Worldwide Locations to Serve Our Expanding Customer Base
BROADCOM’S GLOBAL PRESENCE
47 Sales/Marketing Locations
75 Design Centers
Headquarters in Irvine, CA
Japan
Singapore
South Korea
Taiwan
Shenzhen
Beijing
Shanghai
Sydney
Belgium Netherlands
Israel
France
Finland
Greece
United Kingdom
Spain
Dalian
Turkey Italy
India
Sao Paulo, Brazil
Minsk, Belarus Richmond, BC Kanata
Duluth Durham
Dallas
Austin San Diego
San Jose
Matawan
Seattle
Sunnyvale
Houston
Santa Clara
Andover
Colorado Springs
Edina
Irvine
Chandler
Longmont
Québec
Fort Collins
Glen Rock
Petaluma
Lancaster Germantown
6 © 2013 Broadcom Corporation. All rights reserved.
2,7112,499
2,666
3,257
4,110
5,079
6,206
7,283 7,307
8,942
9,590
11,30011,550
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q12013
INVESTING IN TOP TALENT TO ENHANCE GROWTH AND NEW INITIATIVES
Net Revenue ($ Million)
Headcount
R&D Engineering
8,850
PhDs 900
77% Engineering
© 2013 Broadcom Corporation.
$962$1,083
$1,610
$2,401
$2,671
$3,668$3,776
$4,658$4,490
$6,818
$7,389
$1,827
$2,005
$1,971
$2,128
$2,080
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q12013
Q1
Q2
Q3
Q4
$8,006
7 © 2013 Broadcom Corporation. All rights reserved.
TOP 10 SEMICONDUCTOR COMPANIES BY REVENUE
Source: Gartner April 2013
Rank
2011
Rank
2012
Company
2011
Revenue
2012
Revenue
2011-2012
Growth (%)
2012 Market
Share (%)
1 1 Intel 50,669 49,089 -3.1% 16.4%
2 2 Samsung Electronics 27,764 28,622 3.1% 9.5%
6 3 Qualcomm 9,998 13,177 31.8% 4.4%
4 4 Texas Instruments 11,754 11,111 -5.5% 3.7%
3 5 Toshiba 11,769 10,610 -9.8% 3.5%
5 6 Renesas Electronics 10,650 9,152 -14.1% 3.1%
8 7 SK Hynix 9,388 8,965 -4.5% 3.0%
7 8 STMicroelectronics 9,635 8,415 -12.7% 2.8%
10 9 Broadcom 7,160 7,846 9.6% 2.6%
9 10 Micron Technology 7,643 6,917 -9.5% 2.3%
Others 151,343 146,008 -3.5% 48.7%
Total Market 307,773 299,912 -2.6 100.0%
Excluding Memory Companies Broadcom is #5 in 2012
Rank
2011
Rank
2012
Company
2011
Revenue
2012
Revenue
2011-2012
Growth (%)
2012 Market
Share (%)
1 1 Intel 50,669 49,089 -3.1% 16.4%
2 2 Samsung Electronics 27,764 28,622 3.1% 9.5%
6 3 Qualcomm 9,998 13,177 31.8% 4.4%
4 4 Texas Instruments 11,754 11,111 -5.5% 3.7%
3 5 Toshiba 11,769 10,610 -9.8% 3.5%
5 6 Renesas Electronics 10,650 9,152 -14.1% 3.1%
8 7 SK Hynix 9,388 8,965 -4.5% 3.0%
7 8 STMicroelectronics 9,635 8,415 -12.7% 2.8%
10 5 Broadcom 7,160 7,846 9.6% 2.6%
9 10 Micron Technology 7,643 6,917 -9.5% 2.3%
Others 151,343 146,008 -3.5% 48.7%
Total Market 307,773 299,912 -2.6 100.0%
10 9 Broadcom 7,160 7,846 9.6% 2.6% 10 5 Broadcom 7,160 7,846 9.6% 2.6%
* Revenue excluding memory
8 © 2013 Broadcom Corporation. All rights reserved.
50 250 450 800 1,600
2,600 3,450
4,500 5,350
6,800
8,550
10,900 11,250
1,050 2,050
2,750
4,000
5,100
5,600
7,400
7,600
7,800
7,800
7,350
7,700 7,650
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Q1 2013
Patents Issued Patents Pending
SUSTAINED RECORD OF INTELLECTUAL PROPERTY INNOVATION
>2,300
>1,100
>3,200
>6,700
>8,200
>4,800
>10,850
>12,100
>13,150
>14,600
>15,900
>18,600 >18,900
9 © 2013 Broadcom Corporation. All rights reserved.
SEMICONDUCTOR INDUSTRY PATENT RANKINGS
IEEE Spectrum Semiconductor Patent Power (November 2012)
Rank Company Adjusted Patent Pipeline Power
1 Samsung Electronics Co., South Korea 3,976.5
2 SanDisk Corp., U.S. 3,168.9
3 Semiconductor Energy Laboratory Co., Japan 2,072.0
4 Broadcom Corporation, U.S. 1,949.5
5 Micron Technology Inc., U.S. 1,390.7
6 STATS ChipPac Ltd., Singapore 1,375.0
7 Intermolecular Inc., U.S. 1,347.5
8 Megic Corp., Taiwan 1,322.3
9 Marvell Technology Group Ltd., Bermuda 1,127.1
10 Seoul Semiconductor Co., South Korea 890.7
Source: 2012 IEEE Spectrum, 1790 Analytics, LLC., and Wall Street Journal
4 Broadcom Corporation, U.S. 1,949.5
10 © 2013 Broadcom Corporation. All rights reserved.
SEMICONDUCTOR INDUSTRY PATENT RANKINGS
Source: 2012 IEEE Spectrum, 1790 Analytics, LLC., and Wall Street Journal
Wall Street Journal Semiconductor Industry Scoreboard (February 2013)
Rank Company Technology Strength Patents Granted
1 Intel Corp., U.S. 1,613.1 1,483
2 Semiconductor Energy Laboratory Co. Ltd., Japan 1,399.9 866
3 Broadcom Corporation, U.S. 1,286.5 1,197
4 Samsung Electronics Co Ltd., Korea 1,143.8 1,581
5 IBM, U.S. 1,104.8 1,369
6 Micron Technology Inc., U.S. 1,040.6 910
7 SanDisk Corp., U.S. 919.2 333
8 Marvell Technology Group Ltd., Bermuda 856.8 790
9 Toshiba Corp., Japan 847.2 970
10 Renesas Electronics Corp., Japan 729.0 1,051
3 Broadcom Corporation, U.S. 1,286.5 1,197
11 © 2013 Broadcom Corporation. All rights reserved.
Large and Growing End Markets
Right Place at the Right Time
Right Products and Technology to Address Communication Needs
Superior Execution
CAPITALIZING ON THE OPPORTUNITIES IN COMMUNICATIONS AND CONNECTIVITY
Revenue Growth vs. Industry
Ind
exe
d R
eve
nu
e (
200
2 =
1)
Source: World Semiconductor Trade Statistics 2012
CAGR
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Broadcom 22%
Communication Semis
13%
Semis 8%
12 © 2013 Broadcom Corporation. All rights reserved.
KEY AREAS OF R&D INVESTMENT
High Efficiency Video Coding (HEVC/H.265)
Higher Resolution Displays / UltraHD (4K x 2K, 8K x 4K)
Video Transcoding
HomePlugAV2
10G EPON/GPON
VDSL – Vectoring
3G/LTE Small Cells
DOCSIS 3.1
G.Fast
Home
Cloud-Scale Data Center Transition to 10/40/100 GbE
Enterprise 2.0 – Flat, Virtualized Cloud Networks
Energy Efficiency and Secure Networking
High Performance Processors
Wireless Infrastructure Transformation
Automotive Ethernet
Infrastructure
4G LTE and 3G
Complete Cellular Platforms
Mobile Multimedia:
Graphics, Video and ISP
802.11ac 5G WiFi
NFC
Bluetooth Low Energy
Context Awareness/ Ubiquitous Location
Hand
13 © 2013 Broadcom Corporation. All rights reserved.
BROADCOM’S CHIPS ARE PERVASIVE
99.98% of All Data Traffic Crosses a Broadcom Chip
Source: Broadcom internal estimate
Coax
Microwave Backhaul
Fiber Optic
Wireless Infrastructure
Service Provider Network
Macro Base Station
Wi-Fi Router
Data Center Corporate Enterprise
Wi-Fi Router
Coax
DSL
Ethernet
Ethernet
PON
Home
Fiber
14 © 2013 Broadcom Corporation. All rights reserved.
BROADCOM COMPETITIVE ADVANTAGE
IP Portfolio Strength
Among Fabless Semiconductor Companies
As Ranked by
BCM7445
HEVC Quad-core CPU Gigabit speeds Web domain security Quad 1080p transcoding 4kx2k video display
Among Semiconductor Companies
As Ranked by
Advanced R&D Capabilities
IP Sharing
Home Hand Infrastructure
Market Categories
#1
#1
Unparalleled Integration
Recognized for Innovation
Great Engineers