nxp company presentation 2014 april · wireless infra lighting industria mobile ! wireless base...
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NXP Semiconductors Secure Connections for a Smarter World Company Presentation April 2014
NXP Semiconductors ! The electronics industry is being driven by four mega trends that are helping shape our society:
Energy Efficiency, Connected Devices, Security and Health. Connecting to these trends and enabling Secure Connections for a Smarter World, NXP Semiconductors (NASDAQ: NXPI) creates solutions for the Connected Car, Cyber Security, Portable & Wearable and the Internet of Things.
! Through our innovations, customers across a wide variety of industries – including automotive, security, connected devices, lighting, industrial and infrastructure – are able to differentiate their products through features, cost of ownership and/or time-to-market. With operations in more than 25 countries, NXP posted revenue of $4.82 billion in 2013. Additional information can be found on www.nxp.com
Secure Connections for a Smarter World
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Connected Car Cyber Security Portable & Wearable Internet of Things
Strong innovation track record Our innovations are used in a wide range of applications (1/2)
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Automotive Identification Consumer Computing
! In-vehicle networking ! Car access & immobilizers ! Car entertainment ! Solid State Lighting ! Telematics ! Speed & Angular Sensors
! Secure identity ! Secure transactions ! Tagging & authentication
! TV ! Satellite, Cable, Terrestrial
and IP set-top boxes ! Satellite outdoor units
! Tablet PCs ! Note-/Netbooks ! Desktops ! Power supplies ! Monitors and peripherals
Strong innovation track record Our innovations are used in a wide range of applications (2/2)
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Wireless infra Lighting Industrial Mobile
! Wireless base stations ! Point-to-point ! CATV infrastructure ! Broadcasting
! Lighting drivers (CFL, LED)
! Lighting networks ! Backlighting
! Smart grid ! White goods ! Home / building automation ! Power supplies
! Mobile devices ! Portable power supplies ! Personal health ! Chargers
Fueling Industry Leading Growth NXP HPMS Growth at Least 50% Faster Than Market
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-
1,500
3,000
4,500
6,000
7,500
$MM
>1.5x Industry Growth
CORE Product Revenue EMERGING Product Revenue
Internet of Things
2010
NFC
Cyber Security
Car-2-X
HPRF
HPMS Solutions
Auto
Healthcare
Mobile
High Speed Interface
Identification
Portable and Computing
Automotive
Infrastructure and Industrial
2010 2011 2012 2013 2010 2011 2012 2013
Note: 1. As of 2Q12, prior end market definitions for “Wireless Infrastructure, Lighting and Industrial” and “Mobile, Consumer and Computing” have been redefined to align internal management organization.
All prior periods have been realigned to conform with new end market definitions.
9% Y-Y
15% Y-Y
Consistently outgrowing the industry ($M)(1)
2010 2011 2012 2013 2010 2011 2012 2013
32% Y-Y
17% Y-Y
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Revenue ($M)
Non-GAAP Operating Margin
Non-GAAP Gross Margin
Adj. EBITDA Margin
Note: 1. As of 1Q13, product classification for HPMS end markets “Infrastructure and Industrial” and “Portable and Computing” in addition to segment “Standard Products” have been redefined to reflect underlying
market dynamics, product complexity and organizational management. Prior periods have been realigned to conform with new end market definitions. Non-GAAP amounts exclude stock-based compensation.
Consistently outgrowing the industry ($M)(1)
Recent Quarterly Business Trends
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Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14
Identification 28% Product Revenue in 2013(1)
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! Digitization of government documents ! Global roll-out of chip-based bank cards ! Unified transit payment platforms ! Secure mobile payments and access ! Authentication of products and people
! SmartMX secure microcontroller ! Secure Java-card operating system ! Zero and low-power RF interfaces ! MiFare ticketing and access solutions ! Complete document reader solutions ! Low-power RFID tagging solutions
! #1 eGovernment documents ! #1 Chip-based banking cards ! #1 Transit system products ! #1 Mobile transaction solutions ! #1 RFID tags and labels ! #1 Contactless infrastructure
Secular Trends Driving Growth
Market Position
Products
Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR
NXP Identification Group Growth ($M)
Potential Identification Market Growth ($M)(1)
2012 2013E 2014E 2015E
16% CAGR
2010 2011 2012 2013
30% CAGR
32% Y-Y
Potential Automotive Market Growth ($M)(1)
Automotive 22% Product Revenue in 2013(1)
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! Secure connected car – Car-to-X management ! Demand for increased safety (ADAS) ! Adoption of global digital broadcast ! Increased data-flow throughout the car ! Increased intelligence to key ! Energy efficiency and CO2 reduction ! Complexity and long-life cycle demands
Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR
! SoC infotainment and SDR systems ! CAN/LIN, FlexRay and Ethernet PHY ! RF passive keyless and proximity entry ! ABS, angular and temperature sensors ! LED interior and exterior lighting ! Car-to-X communication systems
! #1 Auto infotainment systems ! #1 In-vehicle networking ! #1 Auto access - immobilizers ! #3 Magnetic sensors
Secular Trends Driving Growth
Market Position
Products
NXP Automotive Group Growth ($M)
2010 2011 2012 2013
3% CAGR
9% Y-Y
2012 2013 2014E 2015E
4% CAGR
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Portable and Computing 10% Product Revenue in 2013(1)
! Increased demand energy efficiency ! Market shift toward 32-bit ARM MCU ! Adoption of multi-protocol interfaces ! Low power sensor management ! Emergence of wireless charging
! Multi-protocol interface products ! 32-bit ARM MCU ! Custom SoC (MCU w/ mixed A/D)
! #1 Multi-protocol interface products ! #11 32-bit ARM MCU
Secular Trends Driving Growth
Market Position
Products
Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR
2010 2011 2012 2013
8% CAGR
17% Y-Y
Potential Portable and Computing Market Growth(1)
Portable and Computing Group Growth ($M)
2012 2013 2014E 2015E
4% CAGR
Infrastructure and Industrial 16% Product Revenue in 2013(1)
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! Increased cellular data consumption ! Adoption of energy efficient lighting ! Low-Power RF- Connectivity (“IoT”) ! Increased demand for mobile charging ! Increased demand for Audio quality
! HPRF power amplifiers ! Small signal LNA and RF discrete ! AD/DC power controllers and regulators ! LED lighting drivers ! IoT ultra-low power RF-connectivity ! Smart mobile audio solutions
! #1 LED lighting drivers ! #1 Small-signal RF ! #1 RF transceivers (silicon tuners) ! #2 HPRF power amplifiers ! #3 Small signal (mobile FEM) ! #4 AC/DC power adapters
Secular Trends Driving Growth
Market Position
Products
Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR
2010 2011 2012 2013
3% CAGR
15% Y-Y
NXP Infra. and Industrial Group Growth ($M)
Potential Infra. and Industrial Market Growth ($M)(1)
2012 2013 2014E 2015E
11% CAGR
Standard Products 24% Product Revenue in 2013(1)
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Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR
! Scale: ̶ 70B units/yr. manufactured ̶ Material purchasing power
! Reach - #2 supplier in WW distribution ! Quality - Automotive qualified
! General purpose logic (“GPL”) ! Small signal discrete ! Signal conditioning ! Low-voltage power MOSFET
! #1 Standard products (overall) ! #2 General purpose logic ! #2 Small signal discrete ! #2 Signal conditioning
Benefits to Customers of Standard Products
Market Position
Products 2010 2011 2012 2013
0% CAGR
(2%) Y-Y
Potential Standard Product Market Growth(1)
NXP Standard Product Growth ($M)
2012 2013 2014E 2015E
2% CAGR
Leveraging Secular Trends and Unique Capabilities
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Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR
! Security ! Connectivity ! Mobility ! Energy efficiency
! Large with long life cycles ! Growth in excess of overall market ! Broad and diverse customer base ! High barrier to entry ! “Sticky” customer relationships
! Strong IP and patent portfolio position ! Broad mixed signal product portfolio ! Differentiated process technology ! Acknowledged leadership capability in
Low-power RF; cryptography; Mixed-signal MCU system design
Secular Trends and Demands Driving Growth
NXP Competitive Advantages
Characteristics of HPMS Focused Markets
Potential Future Market Growth ($M)(1)
Addressable Market Growth ($M)(1)
4% Y-Y
2010 2011 2012 2013
1% CAGR
2012 2013 2014E 2015E
6% CAGR
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