Slide 1: Wolfspeed FY25 Q1 Earnings
Wolfspeed FY25 Q1 Earnings NOVEMBER 6, 2024 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 2: Forward-Looking Statements and Non-GAAP Measures
. FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Note on Forward-Looking Statements The schedules attached to this presentation are an integral part of the presentation. This presentation contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause
Slide 3: Wolfspeed at a Glance
WOLFSPEED AT A GLANCE Wolfspeed is the world’s only pure-play, vertically integrated silicon carbide company By the Numbers $195 million The JP: world’s largest and only Access to up to $2.5B of incremental #1 $28B+ FY25 Q1 revenue dedicated 200mm silicon carbide proposed funding to support U.S. Pro
Slide 4: A Critical Inflection Point in Strategic Direction and Priorities
A CRITICAL INFLECTION POINT IN STRATEGIC DIRECTION AND PRIORITIES Solidifying Our Capital Simplifying Our Business – Capitalizing on Structural and Structure 200mm Silicon Carbide Leader Long-term, Growing Demand • Awarded $750M of proposed direct • First SiC company to transition entire • Recorded
Slide 5: Recent Announcements Support Improved Cash Flow Profile
RECENT ANNOUNCEMENTS SUPPORT IMPROVED CASH FLOW PROFILE Anticipated Cash Inflows from Funding Sources Total Impact Item Anticipated Cash Inflows Up to $750M total CHIPS Act Funding • First disbursement to be 20%-25% of total grant size expected in mid CY25 $750M total over three tranches Debt Financ
Slide 6: Mohawk Valley Update
MOHAWK VALLEY UPDATE Key Takeaways Mohawk Valley Fab Revenue • FY24 Q1 revenue contribution of $49M, up more $50M - $70M than 20% Q/Q • FY25 Q2 targeted revenue of $60M at the midpoint $49M • MVF contributed more power device revenue than Durham fab for the first time in FY25 Q1 $41M • Continues to
Slide 7: Significant Progress Made to Simplify 200mm Footprint
SIGNIFICANT PROGRESS MADE TO SIMPLIFY 200MM FOOTPRINT Materials: Wolfspeed HQ - Durham, NC Materials: The JP - Siler City, NC Device Fab: Mohawk Valley - Marcy, NY • Crystal growth and substrate • Crystal growers up and running • Contributed more power device processing continues to generate with hi
Slide 8: Power Device Footprint Will Help Capture Massive Market Opportunity
POWER DEVICE FOOTPRINT WILL HELP CAPTURE MASSIVE MARKET OPPORTUNITY BY END OF THE DECADE Cumulative Power Device Design-Ins ($M)1 Key Takeaways ~$28,700 • $1.5B of Power Device Design-Ins in FY25 Q1 ~$20,300 – ~70% of Design-Ins were from EV platforms ~$13,600 – $28B+ of cumulative Power Design-Ins
Slide 9: Financial Performance – Revenue
FINANCIAL PERFORMANCE – REVENUE1 $197M $209M $201M $201M $195M 108 102 105 101 97 96 101 99 96 98 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 Materials Devices Key Takeaways FY25 Q1 Drivers • Revenue slightly below midpoint of August guidance • $49M contribution from Mohawk Valley, up 20% Q/Q and more t
Slide 10: Taking Proactive Steps to Improve Capital Structure
TAKING PROACTIVE STEPS TO IMPROVE CAPITAL STRUCTURE The significantly lower targeted CapEx spend should result in much lower cash use exiting FY26 Significant Reduction in CapEx Expected Key Takeaways Over Next Two Years $2.1B • FY25 CapEx guidance further reduced by $100M – Adjustment aligns with b
Slide 11: FY25 Q2 Guidance
FY25 Q2 GUIDANCE Revenue $160M - $200M Non-GAAP Gross Margin1 (6)% - 6% Non-GAAP OpEx1 $105M - $115M Non-GAAP Net Loss1 $(145)M - $(114)M Non-GAAP EBITDA profitability in 2H FY25 Long-term Profitability Targets Operating cash flow breakeven in FY26 Guidance Drivers Upcoming Milestones • $50M - $70M
Slide 12: Appendix
APPENDIX
Slide 13: Non-GAAP Reconciliation – Gross Margin
NON-GAAP RECONCILIATION – GROSS MARGIN Three Months Ended September 29, September 24, 2024 2023 GAAP gross profit ($36.2) $24.7 GAAP gross margin percentage (19)% 13% Adjustments: Stock-based compensation expense 8.5 6.0 Restructuring and facility closure costs 34.3 — Non-GAAP gross profit $6.6 $30.
Slide 14: Non-GAAP Reconciliation – EPS
NON-GAAP RECONCILIATION – EPS1 Three Months Ended September 29, 2024 September 24, 2023 GAAP net loss ($282.2) ($123.6) Adjustments: Stock-based compensation expense 23.7 19.7 Amortization of acquisition-related intangibles 0.3 0.3 Project, transformation and transaction costs 6.0 2.6 Restructuring
Slide 15: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
NON-GAAP RECONCILIATION – EBITDA AND ADJUSTED EBITDA2 Three Months Ended September 29, 2024 September 24, 2023 GAAP net loss ($282.2) ($123.6) Reconciling items to EBITDA (Non-GAAP) Income tax expense 0.4 0.2 Interest expense 42.3 21.1 Depreciation and amortization 71.1 40.1 EBITDA (Non-GAAP) (168.4
Slide 16: Non-GAAP Reconciliation – Gross Margin Outlook
NON-GAAP RECONCILIATION – GROSS MARGIN OUTLOOK Three Months Ended December 29, 2024 GAAP gross margin from continuing operations outlook range (33)% to (16)% Adjustments: Stock-based compensation expense 6% to 5% Restructuring and facility closure costs 21% to 17% Non-GAAP gross margin from continui
Slide 17: Non-GAAP Reconciliation – Operating Expenses Outlook
NON-GAAP RECONCILIATION – OPERATING EXPENSES OUTLOOK Three Months Ended (in millions of U.S. Dollars) December 29, 2024 GAAP operating expenses from continuing operations outlook $265 to $275 Adjustments: Stock-based compensation expense (15) Project, transformation and transaction costs (5) Restruc
Slide 18: Non-GAAP Reconciliation – Net Loss Outlook
NON-GAAP RECONCILIATION – NET LOSS OUTLOOK Three Months Ended December 29, (in millions of U.S. Dollars) 2024 GAAP net loss from continuing operations outlook range ($401) to ($362) Adjustments: Stock-based compensation expense 24 Restructuring and facility closure costs 174 Amortization of discount
Slide 19: Glossary of Terms
GLOSSARY OF TERMS Design-Ins: Design-Ins are customer commitments to purchase our products and are one of the factors we use to forecast long-term demand and future revenue. To meet the qualification of a Design-In, the customer provides us with documentation (e.g., a letter of intent, statement of
Slide 20: Let's Reimagine a More Sustainable World. Together.
LET’S REIMAGINE A MORE SUSTAINABLE WORLD. TOGETHER. WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.