qualcomm analyst day

Qualcomm Analyst Day NOVEMBER 15, 2012

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Safe Harbor, Regulation G and Corporate Structure In addition to the historical information contained herein, this presentation contains forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding our financial and business guidance, estimates and outlook; industry trends and forecasts; our growth initiatives; business and growth opportunities, and our positioning to take advantage of those opportunities; our product roadmap, and future products, features and functionality. Forward-looking statements are generally identified by words such as “estimates,” “guidance” and similar expressions. Actual results may differ materially from those referred to in the forward-looking statements due to a number of important factors, including but not limited to risks associated with the commercial deployment of our technologies and our customers’ and licensees’ sales of equipment, products and services based on these technologies; competition; our dependence on a small number of customers and licensees; attacks on our licensing business model, including current and future legal proceedings and actions of governmental or quasi-governmental bodies; our dependence on third-party suppliers, including the potential impact of supply constraints; the enforcement and protection of our intellectual property rights; claims by third parties that we infringe their intellectual property; global economic conditions that impact the communications industry and the potential impact on demand for our products and our customers’ and licensees’ products; our stock price and earnings volatility; strategic transactions and investments; the commercial success of our QMT division’s display technology; foreign currency fluctuations; and failures, defects or errors in our products and services or in the products of our customers and licensees. These and other risks are set forth in our most recent Form 10-K filed with the SEC, copies of which are available on our website at www.qualcomm.com. We undertake no obligation to update any forward-looking statements.

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.

Throughout today’s presentations we refer to “Qualcomm” for ease of reference. However, please recall that in connection with our recent reorganization, Qualcomm Incorporated continues to operate QTL and own the vast majority of our patent portfolio, while Qualcomm Technologies, Inc., its wholly-owned subsidiary, now operates substantially all of our products and services businesses, including QCT, and substantially all of our research and development functions.

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9:10AM: Paul Jacobs

10:10AM: Steve Mollenkopf

11:00AM: Lunch Break

11:30AM: Derek Aberle

12:00PM: Bill Keitel

12:30PM: Q&A

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Dr. Paul E. Jacobs CHAIRMAN AND CEO

5

Record revenues and earnings

Record QCT MSM chip shipments

Record 3G/4G device shipments by QTL licensees

Continued investment in technology leadership

Positioned well for trends in the mobile wireless industry

6

Cumulative $19.5 Billion* Returned to Stockholders

STOCK REPURCHASES DIVIDENDS PAID

FISCAL 2012

STOCK REPURCHASES DIVIDENDS PAID DIVIDENDS PAID PER SHARE

REMAINS AVAILABLE FOR REPURCHASE UNDER CURRENT BOARD AUTHORIZATION

CUMULATIVE SINCE 2003

*As of November 7, 2012

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FY’05 FY’13e*

$5.7B

~$23B - $24B

Revenues

Growth Since 2005

Jul’05 Nov’12

~$55B

~$100B

Market Cap

FY’05 FY’13e

$1.26

~$3.40-$3.60

EPS (GAAP)

Jun’05 Sep’12

$7.9B

$26.8B

Cash & Marketable Securities

*Guidance as of November 7, 2012; % growth for FY’13 guidance presented at the midpoint

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Continued adoption of smartphones

Growth of 3G in emerging regions

QCT: • Technology leadership • Roadmap breadth and depth • New computing and connectivity opportunities

QTL: Industry-leading licensing program

Double-digit revenue and EPS CAGR targets over the next five years*

~27% pre-revenue R&D*

*Estimates as of November 15, 2012

9

Wafer Supply

10

Evolving Industry Dynamics

11

Qualcomm: A Communications Systems Company INNOVATION ACROSS ENTIRE WIRELESS VALUE CHAIN

Innovative Technologies

Standardization Productization Commercialization

12

Key Industry Trends

Computing Redefined Unprecedented Data Demand Digital 6th Sense

13

Key Initiatives for Sustained, Long-Term Growth QUALCOMM INNOVATIONS UNDERPIN INDUSTRY DYNAMICS

Drive Smartphone Growth and Innovation

Solve the 1000x Data Challenge

Enable Growth in Emerging

Regions

Create New Mobile Computing

Opportunities

Deliver the Internet of Everything

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Our Most Important Device IMMEDIACY, PORTABILITY, CONNECTEDNESS

of all searches on a smartphone are spontaneous, compared to

52% on PC

of daily media interactions occur on a smartphone

of smartphone owners use them while watching TV

Source: Google/Sterling Brands/Ipsos Multi-Screen Research, Aug. ’12

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2011 2012 2013 2014 2015 2016

Annual Forecasted Smartphone Unit Shipments 2011–2016

Continued Smartphone Momentum DISPLACING FEATURE PHONES

CUMULATIVE SMARTPHONE UNIT SALES FORECAST BETWEEN 2012–2016

Source: Average of Gartner, Oct. ’12; Strategy Analytics, Aug. ’12

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One Device, Many Functions DRIVING SMARTPHONE REPLACEMENT CYCLE

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Expanding Areas for Smartphone Innovation

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Expanding Areas for Smartphone Innovation

aSMP

High Performance Floating Point

Custom Krait 2MB L2 (8064 only)

Web Tech Innovations

Custom System Interconnect

Low Power Innovations

Profiling Tools

GPGPU Compute for Imaging/Video (Renderscript, OpenCL, LLVM)

Stereoscopic Rendering

FlexRender™ Technology

Unified Shader Architecture

Accelerated WebGL

Ultrasound

1080P HD video

Stereo 3D video

21 MPix 7.1 Surround Playback

5.1 Surround Camcorder Noise cancellation

Zero Shutter Lag

Browser with HTML5 and 1080p Flash

20x Digital zoom

Computational Camera

TD-SCDMA

VoLTE / SRVCC

Power Optimization Advanced Receivers

RF Multi-band

LTE TDD LTE World Mode LTE Broadcast

.11ac

Indoor Location

Multiband FM

BT GPS/GNSS Miracast

Accelerometer

Temperature Magnetometer Gyroscope

Ambient light Proximity

Pressure Gestures

IR Sensing Humidity

MEMS

Color correction

Content Adaptive Backlight

Frame Buffer Compression

3D

Wireless Display

Coexistence with connectivity

Coexistence with WWAN

Create New Mobile Computing Opportunities

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High Resolution Screens

Responsive Devices

Fast, Always-On Connectivity

Rich Multimedia Experience

High Performance Computing

Sleek, Ultra-light

Longer Battery Life

Thermal Efficiency

Without Compromising Mobility

Mobile is Redefining Computing

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Snapdragon Across a Range of Devices

Afterburn

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Computing Growth Opportunities TABLETS TO LEAD GROWTH OF NEW GENERATION OF MOBILE COMPUTING DEVICES

Tablets: Average of Gartner, Sep. ’12; Strategy Analytics, Sep. ’12; Mobile PCs: Average of Gartner, Sep. ’12; IDC, Aug. ’12

CAGR (2011–2016) CAGR (2011–2016)

Tablets and Laptops Estimated to be Sold in 2016

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Connectivity is Key in New Mobile Computing Devices EMBEDDED AND EXTERNAL MOBILE BROADBAND IN NEW MOBILE COMPUTING DEVICES

Growth in unit shipments 2011–2016

Dongle & MiFi: Gartner, Oct. ’12; ABI, Oct. ’12; Embedded M-PCs: Average of Aug. ’12; SA, Jul. ’12 Gartner, Sep. ’12; Tablets: Average of SA, Sept. ’12; Gartner, Sep. ’12

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Flexible Data Plans to Support Continued Growth NEW AND INNOVATIVE DATA PLANS

Chromebook

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Uniquely Positioned to Address the Growing Opportunity

Integrated AP/ Modem/Connectivity

APQ Processors

3G/LTE Modem

Connectivity

Enable Growth in Emerging Regions

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Emerging Regions Lead Mobile Usage Across Many Categories

Source: TIME Mobility Poll, conducted in cooperation with Qualcomm

China 86%

India 87%

China 76%

China 84% India

77% India 70%

India 62%

India 65%

China 78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Surf Internet Music Web Search News Take Photos E-mail Social Networks Games Weather

% Surveyed That Use Their Mobile Device a Few Times a Week to Perform Each Task

32

3G/4G Growth in Emerging Regions

EXPECTED GROWTH

2.7B

2011 2016

3G/4G Connections

0.8B

Source: Wireless Intelligence, Nov. ’12

33

Ramping 3G/4G Growth in Emerging Regions FORECASTED 3G/4G CONNECTION GROWTH BETWEEN 2011-2016

LatAm India

China MEA

Source: Wireless Intelligence, Nov. ’12

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Advanced Network Deployments in Emerging Regions

HSPA+ LTE DC-HSPA+

NETWORKS

DO-Rev. A

Source: CDG, Nov. ’12; GSA, Jul./Nov. ’12

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China 34% SMARTPHONE SHIPMENT CAGR FORECAST FROM 2011–2016

Source: Gartner, Jun. ’12

Affordable smartphone initiatives

Vibrant ecosystem

Increased data traffic

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Latin America 27% SMARTPHONE SHIPMENT CAGR FORECAST FROM 2011–2016


LTE Network launches and spectrum opportunities

Strengthening Brazilian ecosystem

Push-to-Talk

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India 39% SMARTPHONE SHIPMENT CAGR FORECAST FROM 2011–2016


Affordable 3G Services

Mobile web browsing users surpassed fixed

BWA spectrum

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Expanding Diversity of Affordable Smartphones >800M SMARTPHONE SHIPMENTS FORECAST IN EMERGING REGIONS IN 2016

India Latin America SE Asia Africa

China

Source: Average of Gartner, Oct. ’12; Strategy Analytics, Aug. ’12

39

Qualcomm Reference Designs ACCELERATING GLOBAL GROWTH OF 3G SMARTPHONES

Source: Qualcomm data

OEMs Device Launches Countries

41

GLOBAL DATA TRAFFIC GROWTH

FROM 2010–2011*

Mobile Data Traffic Growth

*Source: Cisco, Feb. ’11

PREPARING FOR

DATA TRAFFIC GROWTH

Network Efficiency Small Cells More Spectrum

42

Wi-Fi Offload Complements Cellular Infrastructure

Passpoint (Hot Spot 2.0)

802.11ac

43

Improving Network Efficiency

44

LTE Broadcast Enables Efficient and High Quality Delivery of Media

LTE

Notes: HSPA+ Advanced example, compared to HSPA+ R7/R8. Less resources to discover proximal devices within 20s in a cell with 800 users, vs. regular LTE. Can also discover 16x more devices than Wi-Fi Direct

LTE Broadcast

45

LTE Carrier #5

LTE Carrier #4

LTE Carrier #3

LTE Carrier #2

LTE Carrier #1

Aggregated Data Pipe

Carrier Aggregation Leverages All Spectrum Assets

Aggregation within band e.g. 2.6 GHz

10 MHz

Supplemental Downlink

e.g. 700MHz

10 MHz

Enhances User Experience Higher Data Rates Leverages All Spectrum Assets

46

Demand Driving Extreme Densification

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Small Cells Everywhere LOW COST, SMALL SIZE AND EASE OF DEPLOYMENT

48

Indoor Cells Provide Outdoor Coverage

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Even Low Small Cell Penetration Provides Good Performance

Low Transmit Power Sufficient* Gain Not Sensitive to External Wall Loss

2% Household Penetration, Neighborhood Small Cells

5% 20%

Offloaded Offloaded

Offloaded to small cells

Source: Qualcomm Research; example for LTE FDD, 2x2 MIMO; assumptions: 70% indoor users, 200 Active users per macrocell, small cells randomly dropped in households in a mix of 2 to 6 story apartments Macro uses 2GHz and small cells uses 3.5GHz; shows the percentage of users offloaded to the small cells *Interference limited, not coverage limited; 20mW or less is sufficient (we compared 20mW/13 dBm with a baseline of 100mW/20dBm)

50

Tests Show Indoor Small Cells Providing Coverage Outside

Signal Strength [dBm]

-55 to -65*

-65 to -75

-75 to -85

-85 to -95

-95 to -105

-105 to -115

Household small cell penetration

Excellent Performance

Very Good Performance

Acceptable Performance

Source: Qualcomm Research; shows actual measured received pilot strength for small cell deployment; -115dBm results in ~700kpbs for Rel-7 5MHz in thermal noise limited case; points with RSCP less than -115dBm is not shown on the plots

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Interference Management Enables Higher Densification

Source: Qualcomm Research. Simulation details: Pico small cell, 10MHz@2GHz + [email protected], D1 scenario macro 500m ISD, 100 users uniformly distributed. Gain is median throughput improvement from baseline with macro only on 10MHz@2GHz, part of gain is addition of 10MHz spectrum. Users uniformly distributed—a hotspot scenario could provide higher gains. Macro and outdoor small cells sharing spectrum (co-channel)

+4

5.7x

37x

+8 +16 +32

With Interference Management CAPACITY GAIN

Number of Small Cells Per Macro

21x

11.4x

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New Spectrum SMALL CELLS ENABLE USE OF NEW SPECTRUM BANDS

450 MHz 2 GHz 6 GHz 60 GHz

Macro Small Cells In-Room

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Accessing Spectrum Resources

55

Internet of Everything EVERYTHING AROUND US IS BECOMING INTELLIGENT & CONNECTED

56

IoE Verticals

Health & Fitness

Automotive Industrial

Home

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Increased Demands on Home Networks

QUANTITY OF CONTENT COMING INTO THE HOME WILL MORE THAN TRIPLE BY 2016

Source: Cisco Visual Networking Index, May ’12

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Afterburn

The New Connected Home

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Connectivity Technologies EXTENDS QUALCOMM’S IMPACT BEYOND MOBILE

Computing Mobile Consumer Electronics Networking & Infrastructure

WIRELESS + WIRED

60

Bringing the Internet of Everything to Life

61

Digital 6th Sense

62

Key Initiatives for Sustained, Long-Term Growth QUALCOMM INNOVATIONS UNDERPIN INDUSTRY DYNAMICS



Regions



Opportunities


TECHNOLOGY LEADERSHIP & FINANCIAL STRENGTH

64

Steve Mollenkopf PRESIDENT AND COO

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Record Revenues and Earnings Before Tax • Double Digit Year-Over-Year Growth

Record MSM Shipments • 590 Million, up 22% Year-Over-Year

Multimode LTE Modem Leadership • ~1/3 Shipments Exiting the Year Were LTE

Snapdragon Leadership • Unmatched Tiered Roadmap

28nm – Leading the Mobile Industry • Fastest Ramp of a New Process Node in Our History

66

QCT Results

$6.1B $6.7B $8.9B

$12.1B

FY’09 FY’10 FY’11 FY’12

Revenues

$1.4B $1.7B

$2.1B $2.3B

FY’09 FY’10 FY’11 FY’12

Earnings Before Tax

317M 399M

483M 590M

FY’09 FY’10 FY’11 FY’12

MSM Chip Shipments

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Successful Investments Have Resulted in Leadership

Sources: Mobile AP Unit Shipment - Strategy Analytics; GPU Shipment - Jon Peddi Research; DSP shipment - Forward Concepts; 3G/4G/LTE - Strategy Analytics; RF iSuppli, Q1’12

AP GPU DSP 3G/4G/LTE RF

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Unmatched Scale of Global Application Processor Deployment SNAPDRAGON S4 MSM8x60 LAUNCH

Commercial Sample to First Carrier Acceptance in 52 Days

15 OEMs, 19 Carriers

Our Fastest Integrated Chip to Ship 10M Units

Commercial Sample

First Carrier Acceptance

# of Carrier A

cceptances

69

Day 0 Day 52 Today

69

Qualcomm LTE Leadership and Scale FIRST AND SECOND GENERATION GOBI LTE LAUNCH VELOCITY

MDM9x15MSM8960MDM9x00

Cum

ulat

ive

Num

ber o

f Car

rier A

ccep

tanc

es

(Uni

que

OE

M D

evic

es)

LTE OEM Device Acceptances on

Qualcomm LTE chips

12/2010 11/2012

Time

Nov. ’12 CAs shown are projected, based on documented OEM products in development; all other figures are actual/historical CAs

70

Qualcomm Snapdragon Processor Leadership

Manufacturers Shipping

Devices Announced

Source: Qualcomm data

Designs in Development

Strategy

72

Strategy DRIVE SMARTPHONE LEADERSHIP INTO ADJACENT OPPORTUNITIES

Set the Design Point

Own the Key Technology Blocks

Integration

Scale – Deployment and Ability to Invest

73

Qualcomm Approach: Own the Key Technology Blocks UNMATCHED PORTFOLIO

DSP GPU

CPU RF

Connectivity

Location

3G/4G/LTE

74

Industry Trends

Cloud Drives Modem and Connectivity Attach – OS Demands It

Technology Velocity Is Increasing

Smartphone Setting the Pace

Small Cell Brings Technology Convergence Across Wireless Operators, HLOS Ecosystems, and Broadband Providers

IMPACT TO SEMICONDUCTOR INDUSTRY

75

Windows 8 SHARED EXPERIENCE ACROSS DEVICE CATEGORIES

Built for Mobile New Programming Model Connected Standby

Leading Technologies: Modem and Connectivity

77

Two Generations Ahead

Increasing Technical Complexity

Modem and Connectivity

Time-to-Market Leadership on

Next Generation Modem and Connectivity

Integration & Co-existence Critical

78

/ /

Qualcomm Modem Technology Leadership A HISTORY OF TIME-TO-MARKET AND PRODUCT SUPERIORITY

2008 2010 2012 2009 2011 2007 2006 2005 2004 2013

90

70

50

30

40

60

80

100

20

10

DL 1.8 Mbps UL 384 kbps

DL 7.2 Mbps UL 5.76 Mbps

DL 28 Mbps UL 5.76 Mbps

First Integrated LTE Multimode

DL 100 Mbps

First DC-HSPA+

DL 42 Mbps

Pea

k D

L D

ata

Rat

e (M

bps)

First LTE World Mode DL 100 Mbps

MSM 6275

MSM 7200

MDM 8200

MDM 8220

MDM 9x00

MDM 9x15

MDM 9x25

First LTE Advanced Carrier Aggregation with Cat4 DL 150 Mbps

First HSDPA

First HSUPA

First Integrated LTE Smartphone

DL 100 Mbps

MSM 8960

150

First HSPA+

79

Connectivity Wi-Fi BT GPS

The Unique Qualcomm Advantage HIDING THE COMPLEXITY UNDERNEATH THE MOST SEAMLESS MOBILE CONNECTIVITY

LTE

2G/3G

System Selection Blind Redirection Redirection w/ Measurements Reselection

PS Handover CS Fallback CSFB w/ SI Tunneling Single Radio VCC

Handover Techniques (Multiple Can Apply in Each Case) Handover Combinations (Hypothetical Examples)

22 33

27

35 36 37 38

39 40 41 42 43 1 2 8 3 4 5 6 9

28

34

7 10 11 12

13 14 17 44 18

19

20

21

23 24

25

26 Radio Frequency Bands

GERAN CDMA 1x UMTS TD-SCDMA LTE TDD LTE FDD EV-DO

80

The Unique Qualcomm Advantage HIDING THE COMPLEXITY UNDERNEATH THE MOST SEAMLESS MOBILE CONNECTIVITY

81

Continued LTE and Cellular Innovation AND NEED FOR COEXISTENCE

Commercial

Note: Estimated commercial dates.

2012 2013 2014 2015+

CDMA2000 1X

Multicarrier Rev A H/W Upgrade Phase I Phase II

EV-DO EV-DO Rev. B

Rel-11 & Beyond Rel-10 Rel-9 Rel-8 LTE Advanced LTE

Rel-11 & Beyond Rel-10 Rel-9 Rel-8 Rel-7

HSPA+ Advanced HSPA+

HSPA

WCDMA+

Voice Efficiency M2M Efficiency

802.11 g 802.11 n 802.11 ac

Wi-Fi

Wi-Fi

1X Advanced

DO Advanced

WCDMA

HSPA+

DL: 3.1 Mbps UL: 1.8 Mbps




DL: 14.4 Mbps

UL: 5.7 Mbps DL: 28 Mbps

UL: 11 Mbps DL: 42 Mbps

UL: 11 Mbps DL: 168 Mbps (20 MHz)

UL: 23 Mbps (10 MHz) DL: 336+ Mbps1 (40MHz) UL: 69+ Mbps1

DL: 73 – 150 Mbps2 (10 MHz–20 MHz) UL: 36 – 75 Mbps2 (10 MHz–20 MHz)

DL: 1+ Gbps3 (Up to 100 MHz)

UL: 375+ Mbps3 (Up to 100 MHz)

DL: 1+ Gbps (e.g. 80 MHz , 3 streams)

1R11 expands multicarrier to 40 MHz to reach up to 336 Mbps, Uplink 2x2 MIMO and 64QAM takes uplink to 69Mbps, 2Peak rates for 10 and 20 MHz FDD using 2x2 MIMO, standard supports 4x4 MIMO enabling peak rates of 300 Mbps. Peak data rates takes overhead into account, per standards 172 Mbps is achievable in 20 Mhz. 3Peak rates can exceed 300 Mbps by aggregating multiple 20 MHz carriers planned for LTE Advanced (LTE Rel-10). Peak data rate can exceed 1 Gbps using 4x4 MIMO and at least 80 MHz of spectrum

82

Complexity in 3G and LTE Standards Pipeline MAJOR DIFFERENTIATION OPPORTUNITIES CONTINUE TO GROW

*Projected completion date. Completion means ASN.1 Freeze Source: Qualcomm, Nov. ’12

3GPP Release R5 R6 R7 R8 R9 R10 R11 R12

Std. Complete Jun ’04 Mar ’06 Dec ’07 Mar ’09 Mar ’10 Jun ’11 Dec ’12* Jun ’14*

Products 2006 2007 2009 2010 2011 2013 TBD TBD

• HSDPA

• W-AMR • IMS

N/A

UMTS

LTE

End-to-end

• HSUPA • MBMS

• DL MIMO • DTX/DRX • HS-SCCH-Less • 64 QAM • DL L2 Enh. • E_CELL_FACH/PCH • CS over HS • Enhanced F-DPCH

N/A N/A

• A-GNSS • HS UICC • MMTEL (VoIP)

• DC HSDPA • Home NodeBs • 64QAM+MIMO • UL L2 Enh. • EUL+CELL_FACH • E-DRX+CELL_FACH • IMB • E-SCC

• EPC • CSFB, SRVCC • I-WLAN, IMS CS • eCall

• FDD/TDD (Cat 1-5) • iRAT LU/G/C/T • TM1-7 • Up to 4x4 DL MIMO • SON/ANR • C-DRX, SPS, TTI-B • QoS

• OTDOA/PRS FDD, UP, CP

• OTDOA/PRS TDD • eMBMS • SSAC • TWC • TM8 DL BF • Enh. Home eNB

• DC HSDPA+MIMO • Interband DC

HSDPA • DC HSUPA • Home NodeB Enh.

(inbound mobility, hybrid mode)

• TxAA/non MIMO UEs

• CS Fallback enhancements

• SRVCC enhancements

• FDD/TDD Cat 6-8 • Carrier Aggr. • eMBMS enh. • TM9 • Enh. MIMO UL/DL • eICIC • Relays • MDT

• ZUC LTE Chinese encryption

• SIPTO/LIPA

• 4C HSDPA • Interband MC • MC

HDSPA+MIMO • SON/ANR • HNB: Interference

Management • Minimization of

drive tests

• FMC • Enh. Access Cntrl • SRVCC 3G to

LTE • IMS VoIP with

local breakout

• Enhanced CA • Enhanced eICIC • CoMP • UTDOA • ePDCCH • New TD subfrm • In-device coex. • Smartphone enh. • eMBMS continuity • SON/MDT Enh.

• FE-FACH • HSDPA Multi-Flow • UL MIMO • UL Tx Div • DL 4xMIMO • 8C HSDPA • SON/MDT

Enhancements

• LTE Direct • New Carrier Type • Multi-flow • Int. Suppr., TDD IM • 3D MIMO • Small cell enh. • Push to Talk • Enhanced eMBMS • Radio IW w/ WiFi • Pub Safety support • M2M

• Hotspot 2.0 • Enhanced WiFi IW • EVS codec • M2M • Congestion cntrl • Dynamic B’cast

• HSPA Hetnet • WCDMA+ • Flexible bandwidth • Uplink Enhancements • Radio interworking w/

Wi-Fi • M2M

And beyond…

83

Only Qualcomm Integrates Wi-Fi, Bluetooth, FM and Location into 3G/LTE

Enhanced Wi-Fi/LTE Coexistence

Improved Performance, Lower Latency

WAN Assists Location, Lowers Power

Pin Compatible 3660 3680

300+ 28nm INTEGRATED CONNECTIVITY DESIGNS IN DEVELOPMENT

Digital Signal Processors

Dual-Channel Memory

Snapdragon Adaptive Power Techniques

Multimedia

CPU Cores

Modem LTE World

GPS Wi-Fi

Bluetooth FM

3680 802.11n/ac

BT/FM Radio

84

Afterburn

802.11ac End-to-End Portfolio

Computing Mobile Consumer Electronics Networking

Complete 802.11ac Portfolio

85

Leading End-to-end Positioning System with Qualcomm Mobile and Networking Solutions

Enabling Operators and Venues to Provide New Location Services

>1 Billion Location Enabled Devices Shipped

Qualcomm: #1 Location Technology Provider ADVANCING THE MOBILE EXPERIENCE THROUGH INDOOR LOCATION

Source: ABI Research, Sep. ’12

Leading Technologies: Application Processors

87

Leading IP Technology Roadmap

Accelerating Node Leadership

Application Processor Strategy

Differentiated Approach

Architectural Control of SoC

88

Most Efficient Architecture

Schedule

CPU Leadership

Highest Performance at the Lowest

Power Differentiated SoC

INCREASING INVESTMENT IN LEADERSHIP

89

A History of Firsts

2010 2011 2012 2008

1st 1 GHz Scorpion CPU

1st Integrated 3G Multimode

1st 1.4 GHz Scorpion CPU

1st Integrated GPS + GLONASS

1st & Only aSMP Dual Core

1st Integrated 3G/4G Multimode

1st on 28nm

Krait 200 CPU

New Krait 300 CPU

90 Performance (DMIPS)

Pow

er (m

W)

0

500

1000

1500

2000

0 1000 2000 3000 4000 5000 6000 7000

Half the Power

Laptop Only

CPU Leadership Now and into Next Generation HIGHEST PERFORMANCE AT THE LOWEST POWER

Source: Qualcomm lab testing

x86 SOC (32nm HKMG)

Current Gen Competitor (40nm LP)

Newly Released Competitor (32nm HKMG)

Snapdragon “Krait” 200 (28nm LP)

Snapdragon “Krait” 300 (28nm LP)

91

Great Coverage of the Latest Snapdragon S4 Devices

Droid DNA Xiaomi Phone 2 LG Nexus 4 HTC 8X

92

Processor Synergy

Advanced GPU Architecture

GPU Leadership

Leadership in Graphics

Performance and Efficiency

Comprehensive Ecosystem

93

Adreno 320 GPU Leads in Power-efficient Performance LATEST GPU ARCHITECTURE—HIGHER PERFORMANCE, LOWER POWER

Sources: AnandTech ’12, Qualcomm data R

elat

ive

Per

form

ance

per

mW

Performance Power Efficiency (Higher Is Better)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Competitor A quad-core

Snapdragon dual-core (8960) Adreno

225

Competitor B quad-core

Snapdragon quad-core (8064) Adreno

320

5.1

5.9

8.7

8.8

9

12

13

13

13

29

Samsung Galaxy Nexus(OMAP4460/SGX540)

Huawei Ascend P1 (OMAP4460/SGX540)

LG Optimus 4X HD (Tegra 3)

Samsung Galaxy S 2 (Exy/Mali400)

HTC One X (Tegra 3)

HTC One S (S4/Adreno 225)

HTC One X (S4/Adreno 225)

Samsung Galaxy S 3 (Exy4/Mali400)

Samsung Galaxy S 3 (S4/Adreno 225)

LG Optimus G (S4 Pro/Adreno 320)

GLBenchmark 2.5—Egypt HD (Offscreen 1080p) Frames per Second—Higher Is Better

94

Adreno 225

Adreno 320: Immersive Visual Experiences REDEFINING MOBILE GRAPHICS

95

Adreno 320

Adreno 320: Immersive Visual Experiences REDEFINING MOBILE GRAPHICS

More Complex Scenes at High Frame Rate

More Detailed Textures for Improved

Visual Realism

More Advanced Lighting Effects

Support for Larger Displays

and Higher Resolutions

Performance Improvement

96

More Efficient

Delivers High Performance

DSP Leadership

Enables Differentiated

User Experiences

Programmable

97

Harnessing Developer Innovation

Open Architecture

DSP Access Program

Large Installed Base Image

Processing

Custom DSP Architecture ENABLING RICH USER EXPERIENCES WITHOUT SACRIFICING BATTERY LIFE

Delivering Rich Experiences

Voice Quality

Augmented Reality

High Definition Audio

Object Recognition

Gestures

“Qualcomm leads the global unit market for DSP silicon shipments” Will Strauss President, Forward Concepts

Bringing Leading Technology to Emerging Accounts

99

Developing New Channel

Incremental Opportunity

Emerging Accounts

Investing for Growth

Technology Leadership Matters

100

Opportunity for Growth CHINA EMERGING ACCOUNT CONVERSION TO 3G

Source: 3G Connections: Wireless Intelligence, Nov. ’12, including 1x; Handset shipments: iSuppli, Q4’12, all technologies

~1 Billion Connections in China • 27% 3G

90+ China OEMs

Annual Handset Shipments ~700M

101

Qualcomm Maturing Turnkey Model INVESTING FOR GROWTH

Ecosystem, Channel Support

Complete Reference Design

Competitive Price

Superior Technology Brand

OEMs Launches

Launch Time-to-Market in Design

102

Qualcomm Engaged Across a Growing Account Base UNIQUE ABILITY TO SUPPORT DIVERSE REQUIREMENTS

(BBK)

103

Q2’11/Q3’11

MSM 7x27

MSM 7x25

First High Volume

Q4’11

First 1GHz Single Core

7x27A Single Core

Q1’13

Quad Core

8x25Q Quad Core

8x30 Dual Kraits

Q2’12

Dual Core

8x25 Dual Core

Our Industry-Leading QRD Portfolio QUAD CORE AND “KRAIT” DESIGNS

8x25 8x25q Quad Core CPU New Memory Controller LPDDR2 Single Platform for UMTS & CDMA DSDS And DSDA 720p Capture and Playback Up to 8 Megapixel Camera

8x30 Dual “Krait” CPUs Adreno GPU 28nm Process Faster Memory Industry Leading Modem Integrated Connectivity GPS

>75% Connectivity Attach in QRD, and Increasing

104

Only Single Platform to Support Top Three China Carriers

TD-SCDMA/LTE

CDMA/LTE

HSPA+/LTE

MSM8x30

*New Opportunity* ~150M Connections ~225M Connections ~675M Connections

Source: Wireless Intelligence. Nov. ’12

Our Fabless Semiconductor Model

106

Leading Fabless Foundry Capital Investment MOBILE LEADERSHIP NOW AND IN THE FUTURE

$4.5 $5.5

$10.8 $11.3

$5.4

$12.0

$17.6

$19.6

2009 2010 2011 2012

Capital Expenditures ($ Billions)

Intel

Fab Suppliers

Source: Gartner ’12, Fab Suppliers: Global Foundries, Samsung, TSMC, UMC

Scalable Roadmap: Enabling Leadership for the Future

108 *Reflects a numbering change; formerly known as MSM8270

Leading Roadmap In Production Segment

Premium and Mid Smartphones

QSC61x5 DOrB/1xAdv

QSC6295 HSPA+

QSC62xx HSDPA

QSC60x5 1x/DOrA

QSC11x0 1x

MDM9600 LTE

DOrB DC-HSPA+

MDM8215 DC-HSPA+

MDM6x00 DOrB

HSPA+

MDM8220 DC-HSPA+

MDM9200 LTE

DC-HSPA+

MDM9615 LTE DOrB DC-HSPA+ TD-SCDMA

MDM9625 LTE-A DOrB

HSPA+ R10 TD-SCDMA

MDM8225 HSPA+ R10

MDM8200A HSPA+

S2 MSM8x55

S2 APQ8055

S2 MSM7x30

S1 MSM7x25

S1 MSM7x27

S1 QSD8x50

S3 MSM8x60

S3 APQ8060

S1 MSM7x27A

S1 MSM7x25A

S4 Plus MSM8x30

S4 Plus APQ8030

S4 Plus APQ8060A

S4 Plus MSM8960

S4 Plus MSM8x60A

S4 Prime MPQ8064

S4 Play MSM8x25

2012

MDM9215 LTE

DC-HSPA+ TD-SCDMA

MDM9225 LTE-A

HSPA+ R10 TD-SCDMA Modem and

Data Cards

High-Volume Smartphones

Feature Phones

Computing/CE

2013

S4 Pro MSM8960T

S4Plus MSM8x27

S4 Plus MSM8930

COMING SOON

S4 Pro APQ8064

109

Coming Soon…

Next Generation CPU Micro-architecture

Next Generation Adreno GPU

Third Generation LTE Modem

110

Strong Financial Growth

Continued Snapdragon and Modem Leadership

Increasing 3G/LTE Product Mix

Global Scale, Broad/Tiered Roadmap

Increased R&D Investments for Long-Term Technology Leadership and Expanding Opportunities

112

Derek Aberle EVP & GROUP PRESIDENT

113

Fiscal 2012 QTL Highlights RECORD RESULTS

REVENUES +17% YOY

EARNINGS BEFORE TAX +18% YOY

EARNINGS BEFORE TAX %

TOTAL REPORTED DEVICES SALES(1)

+25% YOY

EST. 3G/4G DEVICES SHIPPED BY LICENSEES(1)(2)

+18% YOY

EST. 3G/4G DEVICE ASP MIDPOINT(1)(2)

+6% YOY

CDMA-BASED LICENSEES

OFDMA-BASED (w/o CDMA) LICENSEES

(1) and (2) See notes included in the appendix section at the end of the presentation.

114

3G/4G multimode devices covered by existing 3G agreements 30+ OFDMA/4G (without 3G) royalty-bearing licensees • LG, Nokia, Pantech, Samsung, Sony Mobile, and ZTE

Extensive Qualcomm R&D driving broad patent portfolio applicable to 3G/4G products Qualcomm leading inventor of advanced enabling technologies, including 3G and 4G

115

Continued Innovation QUALCOMM CONTRIBUTING TO A VARIETY OF SIGNIFICANT TECHNOLOGIES

NFC

Semiconductor

WLAN/ 802.11

WWAN

Video Codecs

Sensors

Apps Processor

Camera

Position Location

Audio Processing

RF and Antenna

Security

Graphics Processing

Wireless Charging

Display

OS/User Interface

116

Growing China Opportunity

90+ Chinese 3G licensees to date

~27%* 3G penetration

Growth of smartphones across all tiers

Vibrant carrier competition

LTE TDD advanced trials underway

WCDMA specified for roaming by China Mobile

*Source: Wireless Intelligence (includes 1x), Nov. ’12

117

Regional Subscriber Wireless Penetration Rates MULTIPLE CONNECTIONS PER SUBSCRIBER, LONG RUNWAY FOR GROWTH

121% 138%

62%

101%

CY11 CY16

Total Penetration 3G/4G Penetration

Pen

etra

tion

Rat

e* (%

)

78%

106%

14%

43%

CY11 CY16

Total Penetration 3G/4G Penetration

DEVELOPED REGIONS (North America, Europe, Japan, Korea)

EMERGING REGIONS (Latin America, MEA, China, India, ROW)

*Penetration rate is measured by connections/population Source: Wireless Intelligence, Nov. ’12

118

29% 39%

49% 55%

62% 67%

2011 2012 2013 2014 2015 2016

Global Smartphone Adoption SMARTPHONES FORECAST AS A % OF HANDSET SHIPMENTS (ALL TECHNOLOGIES)

Source: Average of Gartner, Oct. ‘12; Strategy Analytics, Aug. ‘12

119

Fiscal 2012 3G/4G Handset Trends - Developed Regions

Continued increase in estimated ASPs • Continued shift to smartphones • Selling prices increased in the high-tier • Estimated ASPs within low- and mid-tiers relatively stable • Low- and mid-tier not cannibalizing high-tier

120

Fiscal 2012 3G/4G Handset Trends - Emerging Regions

Continued increase in estimated ASPs • Strong shift to smartphones across price levels • Continued growth in high-tier devices • Significant increase in low-tier smartphone models

Low-tier smartphone ASP premium over feature phone

121

Expanding Wireless into Other Device Categories INCREMENTAL GROWTH CATEGORIES BEYOND HANDSETS

Non-handset mobile broadband device shipments expected to grow at ~20% CAGR from 2011–2016

Sources: CAGR is based on average of Gartner, Strategy Analytics, IDC , ABI from Mar. – Oct. ‘12. Devices include USB modems, embedded notebooks/netbooks, mi-fi routers, tablets, e-readers, gaming consoles, CE devices (portable navigation devices, portable media player, digital still cameras, digital camcorders), and M2M (telematics, utilities, security, tracking, healthcare, retail).

122

Licensing Program Designed to Promote Growth of Incremental Non-Handset Devices

Impact on ASP and Implied Royalty Rate Calculation Will Depend on Mix and Volume

TABLETS AND EMBEDDED LAPTOPS Incremental revenue opportunity Royalty caps to promote widespread 3G/4G adoption Total Reported Device Sales reflect ASP of complete device

EMBEDDED MODULES Royalty amounts generally subject to a minimum or floor Total Reported Device Sales reflect module ASP

123

Future Licensing Initiatives

Wireless Charging Small Cells Displays

124

Industry-leading licensing program Continued technology leadership, including in 3G/4G and other device-related technologies • Strong essential and non-essential patent portfolio

Key wireless trends driving QTL growth: • Smartphones, multimode 3G/4G devices • Continued 2G to 3G migration in emerging regions • Favorable global ASP trends • New non-handset devices

Future licensing opportunities

126

Bill Keitel EVP & CFO

127

Record Fiscal 2012 Results

(3) (4) (5) (6) See notes included in the appendix section at the end of the presentation.

FY’11 FY’12

$3.71

$3.20

Non-GAAP(5) EPS(4)(6)

FY’11 FY’12

$19.12B $14.96B

Revenues(3)(4)

FY’11 FY’12

$7.10B $6.08B

Non-GAAP(5) Operating Income(3)(4)

$6.01B

$4.90B

FY’11 FY’12

590M 483M

MSM Chip Shipments

128

Qualcomm Ranked in Top 10% of Non-Financial S&P 500 Companies

*Based on last twelve months reported GAAP for FY2012 and FY2011 as of Nov. 7, 2012 Source: Thomson Reuters

Financial Metric* FY 2012 % Ranking

2 year % Ranking

(FY 2011 & FY 2012)

Revenue & Earnings Growth 99% 99%

Operating Margin 91% 93%

Return on Invested Capital 93% 95%

Operating Cash Flow Margin 90% 92%

129

-4%

-2%

0%

2%

4%

6%

8%

2009 2010 2011 2012 2013

Consensus Gross Domestic Product GDP (YOY): HISTORICAL ACTUALS, CONSENSUS ESTIMATES & QC BASELINE*

Relevant correlations between GDP growth and total mobile devices Qualcomm guidance not as optimistic on the developed regions Midpoint of our guidance is based on 3.0% world GDP growth in 2013 compared to consensus of 3.4%

*Input into Qualcomm’s 2013 plans and guidance. GDP forecasts are from Consensus Economics®. Country weights are determined using IMF Purchasing Power Parity (PPP).

Developed Regions

World

Emerging Regions

Actual Forecast

Consensus

QC Baseline

130

200 208

173 185

75 73

165 210

133

168 49

61

2011 2012

Latin America

ROW

China/India

Japan/Korea

Europe

North America

Emerging 347 439 est. Developed 448 466 est.

Total 795 905 est.

2011 – 2012 Regional* 3G/4G Device Shipment Estimates(1)

CALENDAR YEAR, MILLIONS, MIDPOINTS(2), AS OF NOVEMBER 7, 2012

(1) and (2) 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.

787–803 880–930e

Developed Regions

Emerging Regions

+5

+10

-15 Change from prior guidance

+15 -15

131

Emerging 439 est. 536 est. Developed 466 est. 499 est.

Total 905 est. 1,035 est.

2012 – 2013 Regional* 3G/4G Device Shipment Estimates(1)

CALENDAR YEAR, MILLIONS, MIDPOINTS(2), AS OF NOVEMBER 15, 2012

(1) and (2) 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.

880–930e

208 220

185 204

73 75

210 243

168

210 61

83

2012 2013

Latin America

ROW

China/India

Japan/Korea

Europe

North America

Developed Regions

Emerging Regions

1,000–1,070e

132

41%

33% 34% 34% 33% 30%

0%

20%

40%

60%

CY08 CY09 CY10 CY11 CY12 CY130%

15%

30%

45%

CY08 CY09 CY10 CY11 CY12 CY13

Estimated 3G/4G Replacement Rate*

*Guidance as of November 15, 2012

Developed

Emerging

Worldwide Regional

Replacement Rate 2012/2013 Highlights Lengthening Replacement Cycles in North America

Increasing Contribution from Emerging Regions

133

Past

Range: 15 – 20 weeks (thru 2011)

Current

Range: 13 – 18 weeks (2012)

Future

Range: 11 – 16 weeks (2013)

Estimated* 3G/4G Channel Inventory CHIPSET SHIPMENT THROUGH SUBSCRIBER DEVICE PURCHASE

• Feature phone centric

• Distribution model: majority operator procured

• Limited turnkey volume

• Continuing migration from feature phones to smartphones

• Volume ramp in non-operator procured devices

• Consumer buying patterns trending towards flagship models

• Continuing trends towards flagship models

• Continued growth in non-operator procured devices

• Longer term (next 3-5 years) expect transition to PC-like turnkey ODM model


134

• Growth in smartphones & connected devices

• 3G/LTE adoption • Increased device capabilities;

memory, display, camera...

$194 $192 $205 $215 $214 $214 $219 $205

$186 $206 $219 $220

$-

$100

$200

$300

$400

$500

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13e

3G/4G Estimated Wholesale Device Midpoint ASP Trend(1)(2)

*Guidance as of November 7, 2012. (1) and (2) See notes included in the appendix section at the end of the presentation.

Learning Curves ’97–’13 est. 85% ’99–’13 est. 96% ’07–’13 est. 99%

• Voice-centric devices • Growth in CDMA 2000 • Focus on developed

regions

• Transition to data • Ramp in WCDMA and EV-DO • Significant growth in emerging regions

• DOrA, HSPA+ • Increased device

capabilities; • 2G to 3G migration

Fiscal Years

Voice/Data Transition Smartphones

Midpoint of $214–$226* Estimate for

FY’13

Voice & Enhanced Data Voice

135

3G/4G Estimated Wholesale Device Average Selling Price(1)(2)

QUALCOMM’S LONG-TERM PLAN IS BASED UPON AN AVERAGE ANNUAL LOW SINGLE-DIGIT % DECLINE OF DEVICE AVERAGE SELLING PRICE

Multi-year Developed Device ASP

Multi-year Emerging Device ASP

Smartphone capabilities/features

Smartphone penetration

Feature phones in decline

Competition

Emerging regions growing faster than developed regions

Upward pressure on 2012-2013 ASP as mix shifts from dongles to tablets

(1) and (2) See notes included in the appendix section at the end of the presentation.

Handset ASPs

Non-Handset ASPs

136

FY'12 FY'13 est.

Fiscal 2013 Outlook AS OF NOVEMBER 7, 2012

(3) (5) (6) See note included in the appendix section at the end of the presentation. **Guidance as of November 15, 2012

FY'12 FY'13 est.

$8.1B–$8.6B $7.1B

Non-GAAP(5) Operating Income(3)

FY'12 FY'13 est.

$23B–$24B

$19.1B

Revenues(3)

Non-GAAP(5) R&D and SG&A Combined(3)

FY'12 FY'13 est.

$4.12–$4.32 $3.71

Non-GAAP(5) EPS(6)

137

First Quarter Fiscal 2013 Outlook AS OF NOVEMBER 7, 2012

(1) (3) (5) (6) (7) See notes included in the appendix section at the end of the presentation.

Q1'12 Q1'13 est.

168M–178M 156M

MSM Chip Shipments

Q1'12 Q1'13 est.

$5.6B–$6.1B $4.68B

Q1'12 Q1'13 est.

$1.08–$1.16

$0.97

Non-GAAP(5) EPS(6)

Sep'11 Qtr Sep'12 Qtr est.

$46.0B–$51.0B $41.4B

Total Reported Device Sales(1)(7)

Revenues(3)

138

Cash Returned to Stockholders While Continuing to Invest in the Business 10 YEAR CASH FLOW* APPROXIMATELY $70 BILLION

*Based on components of certain GAAP cash flows for fiscal years 2003–2012. **Acquisitions also includes other investments, including BWA spectrum won in India. Capex is presented net of proceeds from sale of our 700 MHz spectrum in December 2011.

Cash Uses

$60B: Cash Flow from Operations Before R&D

Cash Proceeds

$19B: Net Purchases of Marketable Securities

$20B: R&D

$19B: Return to Stockholders

(Repurchases and Dividends)

$5B: Capex**

$10B: Stock & Debt

139

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

FY'03 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12 FY'13**$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

FY'03 FY'04 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY'12

$19.5 Billion Returned to Stockholders Over 10 Years AS OF NOVEMBER 7, 2012

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 **As of November 7, 2012

Stock Repurchases* Dividends Paid (Millions) (Millions)

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

Mar-03

Jun-03

Sep-03

Dec-03

Mar-04

Jun-04

Sep-04

Jan-05

Mar-05

Jun-05

Sep-05

Jan-06

Mar-06

Jun-06

Sep-06

Jan-07

Mar-07

Jun-07

Sep-07

Jan-08

Mar-08

Jun-08

Sep-08

Jan-09

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

Sep-12

Dec-12

Quarterly Cash Dividend Per Share (Based on Date Payable)

$0.025 $0.035 $0.05

$0.07 $0.09

$0.12 $0.14

$0.16 $0.17 $0.19

$0.215 $0.25

140

Stock Repurchase Plan Update QUALCOMM HAS TWO 10B5-1 STOCK BUYBACK PROGRAMS

Program Long-Term Performance Target

Opportunistic: Repurchases below targeted price levels > QCOM cost of capital

RSU offset: Formulaic repurchases based on stock price and volatility

5-10% discount from RSU issuance price

141

Fiscal 2013 Additional Metrics*

*Guidance as of November 15, 2012. (5) See notes in the appendix section at the end of the presentation.

QCT Operating Margin ~18.5% to 20.5%

QTL Operating Margin ~85.5% to 87.5%

QCT Revenue per MSM Significant increase vs. FY’12

Change in Segment Operating Expense

+ approx. $50M QTL - approx. $50M QCT

(patent expenses)

Non-GAAP(5) Combined R&D and SG&A year-over-year growth

+18 to 20% y-o-y R&D is major driver

Pre-Revenue R&D ~27%

Q1 and FY Non-GAAP(5) Tax Rates ~18% to 19%

Note: FY’13 guidance does not include estimates for realized investment gains or losses on our cash and marketable securities portfolio unless they are reasonably certain, and excludes any new acquisitions and potential stock repurchases.

142

ONSHORE CASH OFFSHORE CASH

September 30, 2012 Balance

~ $9.8B Target Minimum Cash/Liquidity $5B

~ $17.0B Held by Foreign Subsidiaries

Primary Sources QTL Licensing QCT Chipsets

Marginal Tax Rate High Low

Primary Uses • U.S. operations • R&D investments • Acquisitions • Cash dividends • Stock repurchases

• International operations • R&D investments • Acquisitions

Repatriation N/A High Marginal Tax

Cash and Marketable Securities

143

Key Growth Initiatives Drive Long-Term Revenue and Earnings Growth



Regions



Opportunities


QUALCOMM’S LONG-TERM PLAN CONTINUES TO HAVE A DOUBLE-DIGIT REVENUE AND EPS CAGR OVER NEXT FIVE YEARS*


Appendix

145

Footnotes 1) 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, OFDMA-based and multimode CDMA/OFDMA subscriber devices (including handsets, modules, modem cards and other subscriber devices) by our licensees during a particular period (collectively, “3G/4G devices”). 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 was not reported by the licensee until such particular period.

2) The midpoints of the estimated ranges are identified for comparison purposes only and do not indicate a higher degree of confidence in the midpoints.

3) Throughout this presentation, revenues, operating expenses, operating income, earnings before tax (EBT) and effective tax rates are from continuing operations (i.e., before discontinued operations and adjustments for noncontrolling interests), unless otherwise stated.

4) The following should be considered in regards to the year-over-year comparisons: Fiscal 2012 Non-GAAP results included Qualcomm Atheros, Inc., which was acquired on May 24, 2011, as compared to fiscal 2011 Non-GAAP results, which only included Qualcomm Atheros, Inc. from the date of the acquisition. Fiscal 2011 operating and free cash flows reflected the impact of a $1.5 billion income tax payment primarily related to license and settlement agreements entered into in fiscal 2008.

5) Non-GAAP results exclude the QSI segment, certain share-based compensation, certain acquisition-related items and certain tax items.

6) Throughout this presentation, net income and diluted earnings per share are attributable to Qualcomm (i.e., after discontinued operations and adjustments for noncontrolling interests), unless otherwise stated.

7) Royalties are recognized when reported, generally one quarter following shipment.

146

Financial Strength

*Includes capital leases and the BWA subsidiaries’ loans and debentures. **EBITDA is defined as income from continuing operations before income tax expense, depreciation and amortization, and interest and dividend income, net. (4) (5) See notes included in this appendix section.

(In Billions) September 2011 September 2012

Domestic $5.7 $9.8 Cash Resources and

Operating/Stock Repurchases Flexibility

Offshore $15.2 $17.0

Total Cash and Marketable Securities $20.9 $26.8

Total Assets $36.4 $43.0

Solid Balance Sheet Stockholders’ Equity $27.0 $33.5

Debt* $1.2 $1.1

EBITDA** $6.0 $6.9 Cash Flow to Support Future Growth and

Dividends Non-GAAP(5) Free Cash Flows(4) $4.8 $5.2

Reconciliations

148

Non-GAAP Results IN MILLIONS, EXCEPT PER SHARE DATA

149

Non-GAAP Cash Flow IN MILLIONS

150

EBITDA IN MILLIONS

151

Business Outlook IN BILLIONS, EXCEPT PER SHARE DATA, AS OF NOVEMBER 7, 2012

152

Business Outlook, continued IN BILLIONS, EXCEPT PER SHARE DATA, AS OF NOVEMBER 7, 2012

153

Fiscal 2013 Combined R&D and SG&A Guidance IN MILLIONS, AS OF NOVEMBER 15, 2012

Thank You

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