Nxp Semiconductors N.v. · NASDAQ:NXPI
Nxp Semiconductors — Investor Presentation (August 2017)
20 slides from Nxp Semiconductors's investor presentation, August 2017
Slide 1: NXP Semiconductors Investor Presentation | August 2017
NXP SEMICONDUCTORS Investor Presentation | August 2017 0
Slide 2: Legal Notice
LEGAL NOTICE This document has been prepared by NXP Semiconductors N.V. (“NXP”) solely for informational purposes. The presentation includes the following slides, the oral presentation of the slides by NXP or any person on its behalf, any question-and-answer session that follows the oral presentatio
Slide 3: Secure Connections for the Smarter World
Secure Connections for the Smarter World Everything Everything Everything Smart Connected Secure 40B+ devices with 1B+ additional consumers online, Potential economy savings intelligence shipped in 2020 30B+ connected devices up to half trillion dollars Processing Connectivity Security Automotive In
Slide 4: The NXP – Strategically and Financially Compelling
The NXP – Strategically and Financially Compelling Solutions leadership Growth in excess of market • Broad and diverse customer base • Accelerates “Secure Connections for • Compelling cross-sell opportunity a Smarter World” strategy • Complementary market reach • Leader in automotive semiconductor •
Slide 5: HPMS Market Leader with Sharper Focus, Broader Reach
HPMS Market Leader with Sharper Focus, Broader Reach NXP 2016 Revenue NXP: the HPMS leader by Operating Segment • Deliver growth >1.5x market • #5 global non-memory semi supplier Auto • #1 global auto semi supplier 35% Corp & Other 2% • #1 non-auto MCU STDP • #1 secure identification 13% Focused on
Slide 6: Focused Leadership – End Markets
Focused Leadership – End Markets NXP 2016 Product Revenue Broad end market exposure by End-market Exposure • Long life cycles • High barriers to entry Automotive 45% • Application expertise Product leadership positions • #1 Automotive Computing Industrial • #1 Non-auto MCU 3% & Other 22% • #1 Secure
Slide 7: Top 20 Customers > 40% of 2016 Revenue
(1,2) Top 20 Customers > 40% of 2016 Revenue 12% >25,000 Total Customers 6% 0% Automotive Mobile Comm. Infra. Note: 1. Through all channels, 6 2. NXP completed the divestment of its Standard Products segment on Feb 7, 2017.
Slide 8: Driving Profitable Growth in Excess of Addressable Market
Driving Profitable Growth in Excess of Addressable Market (1,2,3) 2 As Reported Revenue Up 25% 3-yr. CAGR ($B) Non-GAAP Gross Profit up 28% 3-yr. CAGR ($B) $4.8 $5.6 $6.1 $9.5 $2.3 $2.7 $3.0 $4.8 2013 2014 2015 2016 2013 2014 2015 2016 2 Non-GAAP EBIT Profit up 31% 3-yr. CAGR ($B) Non-GAAP Free Cash
Slide 9: Focused on Generating Cash
Focused on Generating Cash (1,2,3) Interest Expense ($M) Leverage $179 $139 $172 $347 $75 $59 1.9x 1.7x 3.9x 2.5x 1.4x 1.3x 2013 2014 2015 2016 1Q17 2Q17 2013 2014 2015 2016 1Q17 2Q17 Interest Coverage Net Debt ($B) 6.3x 10.2x 9.8x 7.3x 8.0x 10.6x $2.7 $2.8 $7.6 $7.3 $4.3 $3.9 2013 2014 2015 2016 1Q
Slide 10: Quarterly Revenue and Operating Income
Quarterly Revenue and Operating Income (1,2) Quarterly Segment Revenue ($M): GAAP Financial Summary Corporate & Other $104 5% Q2 Q1 Q2 ($ in millions) Q-Q Y-Y 2017 2017 2016 Product Revenue 2,098 2,129 2,317 (31) (219) All Other 104 82 48 22 56 Total Revenue 2,202 2,211 2,365 (9) (163) Gross Profit
Slide 11: Business Segment Performance
Business Segment Performance (1,2) GAAP Financial Summary HPMS Q2 Q1 Q2 STDP Q2 Q1 Q2 Q-Q Y-Y Q-Q Y-Y ($ in millions) 2017 2017 2016 ($ in millions) 2017 2017 2016 Revenue 2,098 2,011 2,014 87 84 Revenue - 118 303 (118) (303) Gross Profit 1,066 1,030 998 36 68 Gross Profit - 45 97 (45) (97) Gross Ma
Slide 12: Recent Quarterly Business Trends
Recent Quarterly Business Trends (1,2,3) As Reported Revenue ($M) Non-GAAP Gross Margin 370 378 104 351 313 200 300 363 360 358 2,014 2,099 2,062 2,011 2,098 1,911 1,146 1,164 1,306 1,104 48.5% 48.7% 49.1% 50.2% 50.0% 50.0% 50.5% 51.1% 51.7% 53.0% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 1
Slide 13: HPMS Segment Revenue Business Trends ($M)
(1) HPMS Segment Revenue Business Trends($M) Automotive Secure Connected Devices 4% Q-Q 9% Y-Y 9% Q-Q 14% Y-Y 863 906 938 805 858 853 422 514 592 569 541 588 471 302 310 308 317 379 289 276 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1
Slide 14: Debt Summary End of 2Q17
Debt Summary End of 2Q17 (1) Sr. Cash Sr. Sr. Sr. Sr. Sr. Sr. Unsecured Revolving Debt Instrument Unsecured Convertible Unsecured Unsecured Unsecured Unsecured Unsecured Notes Credit Facility Notes Notes Notes Notes Notes Notes Notes Maturity Date 01-Jun-18 02-Dec-19 15-Jun-20 01-Jun-21 15-Jun-22 01
Slide 15: Working Capital Ratios
(1,2,3) Working Capital Ratios DSO DPO 34 32 37 37 43 42 43 39 41 38 90 86 86 71 77 72 74 83 83 93 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 DIO(2) Cash Conversion Cycle 92 95 95 101 117 107 101 101 97 103 36 41 46 67 83 7
Slide 16: Quarterly Financial Reconciliation (GAAP to non-GAAP)
Quarterly Financial Reconciliation (GAAP to non-GAAP) (1,2) Q2 Q1 Q2 ($ in millions, unless otherwise stated) 2017 2017 2016 Total Revenue 2,202 2,211 2,365 Other Information GAAP Gross Profit 1,083 1,079 1,099 • PPA effects: ($455M); Gross profit adjustments (84) (65) (84) • Stock-based compensatio
Slide 17: Quarterly Cash Flow Overview ($M)
Quarterly Cash Flow Overview ($M) (1,2) Q2 Q1 Q2 2017 2017 2016 Net cash provided by (used for) operating activities 441 625 434 Net cash provided by (used for) investing activities (58) 2,428 (59) Net cash provided by (used for) financing activities 18 (2,722) (514) Effects of changes in exchange r
Slide 18: Quarterly Adjusted EBITDA ($M)
Quarterly Adjusted EBITDA ($M) (1,2) Q2 Q1 Q2 2017 2017 2016 Net income (loss) 63 1,318 1 Reconciling items to EBITDA Financial (income) expense 75 136 126 (Benefit) provision for income taxes (54) 230 (152) Depreciation 155 154 165 Amortization 405 380 455 EBITDA 644 2,218 595 Results of equity-acc
Slide 19: NXP Value Proposition
NXP Value Proposition True Leadership Driving RMS FOCUSED ON RMS > 1.5x Multiple High Growth Markets PROFITABLE GROWTH World-Class Expertise and Team CUSTOMER-FOCUSED PASSION TO WIN Operational Excellence + Benchmark Cost Structure STRONG CASH GENERATION MAXIMIZE SHAREHOLDER VALUE 18
Slide 20: Secure Connections for a Smarter World
SECURE CONNECTIONS FOR A SMARTER WORLD
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