Nxp Semiconductors N.v. · NASDAQ:NXPI
Nxp Semiconductors — Investor Presentation (May 2017)
22 slides from Nxp Semiconductors's investor presentation, May 2017
Slide 1: NXP Semiconductors Investor Presentation | May 2017
NXP SEMICONDUCTORS Investor Presentation | May 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: NXP – Top 5 Semiconductor Company
NXP – Top 5 Semiconductor Company Update w/ end ’16 Data (1) 2015 REVENUES , $B 55 14 12 10 8 6 4 2 0 INTC QCOM AVGO TXN NXP (2) IFX STM RENS ON ADI MCHP MXIM LLTC FCS ATML SLAB ISIL CAVM (1) Source: public filings (2) For NXP, reference is made to the Combined Non-GAAP Adjusted Revenue which is the
Slide 6: HPMS Market Leader with Sharper Focus, Broader Reach
HPMS Market Leader with Sharper Focus, Broader Reach NXP 2016 Revenue NXP: the HPMS leader by Operating Segment • Deliver growth >1.5x market • #5 global non-memory semi supplier Auto • #1 global auto semi supplier 35% Corp & Other 2% • #1 non-auto MCU STDP • #1 secure identification 13% Focused on
Slide 7: Focused Leadership – End Markets
Focused Leadership – End Markets NXP 2016 Product Revenue Broad end market exposure by End-market Exposure • Long life cycles • High barriers to entry Automotive 45% • Application expertise Product leadership positions • #1 Automotive Computing Industrial • #1 Non-auto MCU 3% & Other • #1 Secure ide
Slide 8: Top 20 Customers > 40% of 2016 Revenue
(1) Top 20 Customers > 40% of 2016 Revenue 12% >25,000 Total Customers 6% 0% Automotive Mobile Comm. Infra. 7 Note: (1) Through all channels,
Slide 9: Driving Profitable Growth in Excess of Addressable Market
Driving Profitable Growth in Excess of Addressable Market (1,2) 2 As Reported Revenue Up 25% 3-yr. CAGR ($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 F
Slide 10: Focused on Generating Cash
Focused on Generating Cash (1,2) Cash Interest Expense ($M) Leverage $179 $139 $172 $348 $75 1.9x 1.7x 3.9x 2.5x 1.4x 2013 2014 2015 2016 1Q17 2013 2014 2015 2016 1Q17 Interest Coverage Net Debt ($B) 6.3x 10.2x 9.8x 7.3x 8.0x $2.7 $2.8 $7.6 $7.3 $4.3 2013 2014 2015 2016 1Q17 2013 2014 2015 2016 1Q17
Slide 11: Recent Quarterly Business Trends
Recent Quarterly Business Trends (1,2) As Reported Revenue ($M) Non-GAAP Gross Margin 1,467 1,506 1,522 1,606 2,224 2,365 2,469 2,440 2,211 48.5% 48.7% 49.1% 50.2% 50.0% 50.0% 50.5% 51.1% 51.7% Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 1
Slide 12: Business Segment Revenue and Non-GAAP Margin Trends
Business Segment Revenue and Non-GAAP Margin Trends (1,2) HPMS Segment Standard Product Segment 54.3% 53.7% 54.0% 54.6% 53.3% 53.7% 53.9% 54.6% 54.5% 35.0% 35.1% 35.4% 35.8% 36.8% 35.6% 32.5% 32.7% 34.1% 1,104 1,146 1,164 1,306 1,911 2,014 2,099 2,062 2,011 323 322 325 271 274 303 320 323 118 Q1 15
Slide 13: HPMS Segment Revenue Business Trends ($M)
(1,2) HPMS Segment Revenue Business Trends($M) Automotive Secure Connected Devices 5% Q-Q 13% Y-Y (5%) Q-Q 15% Y-Y 858 853 863 906 805 422 514 592 569 541 471 302 310 308 317 379 289 276 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Secur
Slide 14: Quarterly Revenue and Operating Income
Quarterly Revenue and Operating Income (1) Quarterly Segment Revenue ($M): STDP GAAP Financial Summary $118 5% Corporate and Other $82 4% Q1 Q4 Q1 ($ in millions) Q-Q Y-Y 2017 2016 2016 Product Revenue 2,129 2,385 2,185 (256) (56) All Other 82 55 39 27 43 Total Revenue 2,211 2,440 2,224 (229) (13) G
Slide 15: Business Segment Performance
Business Segment Performance (1) GAAP Financial Summary HPMS Q1 Q4 Q1 STDP Q1 Q4 Q1 Q-Q Y-Y Q-Q Y-Y ($ in millions) 2017 2016 2016 ($ in millions) 2017 2016 2016 Revenue 2,011 2,062 1,911 (51) 100 Revenue 118 323 274 (205) (156) Gross Profit 1,030 1,058 510 (28) 520 Gross Profit 45 130 87 (85) (42)
Slide 16: Debt Summary End of 1Q17
Debt Summary End of 1Q17 (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 17: Working Capital Ratios
(1,2) Working Capital Ratios DSO DPO 34 32 37 37 43 42 43 39 41 90 86 86 71 77 72 74 83 83 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 DIO(2) Cash Conversion Cycle 92 95 95 101 117 107 101 101 97 36 41 46 67 83 76 70 57 55 Q1 15 Q2 15 Q
Slide 18: Quarterly Financial Reconciliation (GAAP to non-GAAP)
Quarterly Financial Reconciliation (GAAP to non-GAAP) (1) Q1 Q4 Q1 ($ in millions, unless otherwise stated) 2017 2016 2016 Total Revenue 2,211 2,440 2,224 Other Information GAAP Gross Profit 1,079 1,189 597 • PPA effects: ($430M); Gross profit adjustments (65) (59) (515) • Stock-based compensation:
Slide 19: Quarterly Cash Flow Overview ($M)
Quarterly Cash Flow Overview ($M) (1) Q1 Q4 Q1 2017 2016 2016 Net cash provided by (used for) operating activities 625 737 414 Net cash provided by (used for) investing activities 2,428 (157) (106) Net cash provided by (used for) financing activities (2,722) (246) (441) Effects of changes in exchang
Slide 20: Quarterly Adjusted EBITDA ($M)
Quarterly Adjusted EBITDA ($M) (1) Q1 Q4 Q1 2017 2016 2016 Net income (loss) 1,318 537 (387) Reconciling items to EBITDA Financial (income) expense 136 96 116 (Benefit) provision for income taxes 230 (456) (199) Depreciation 154 149 149 Amortization 380 381 380 EBITDA 2,218 707 59 Results of equity-
Slide 21: 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 20
Slide 22: Secure Connections for a Smarter World
SECURE CONNECTIONS FOR A SMARTER WORLD
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