Microsemi — Merger or Acquisition (March 2018)
20 slides from Microsemi's merger presentation, Mar 1, 2018
Slide 1: Microsemi Acquisition
Steve Sanghi Chief Executive Officer ©March 2018 Microsemi Acquisition March 1, 2018
Slide 2: Forward Looking Statement
Forward Looking Statement Safe Harbor: During the course of this presentation, we will make projections or other forward-looking statements regarding the future financial performance of the company or future events, including our strategy, growth drivers, industry outlook, industry trends, market si
Slide 3: Microsemi Overview
Microsemi Overview Strong complementary portfolio of Specialized Ethernet, Storage and Optical Networking Microcontrollers, FPGA, Wireless, Timing, Analog and Mixed-Signal products Leadership in Defense, Aerospace, Data Center and Communication markets – ~ 80% of revenue Markets where Microchip has
Slide 4: Strategically and Financially Compelling Transaction
Strategically and Financially Compelling Transaction Strengthens Microchip’s presence in Defense, Aerospace, Data Center and Communications markets Expands our Ethernet portfolio to serve Industrial IoT, Enterprise and Carrier markets Adds specialized Microcontrollers to serve the Enterprise Storage
Slide 5: Over $18B SAM Expansion
Over $18B SAM Expansion MCU Analog / mixed signal >$15bn >$17bn >$18bn >$50bn Strengthened end market presence Expanded portfolio Specialized solutions >$32bn Source: Gartner/Dataquest reports and Microchip and Microsemi management estimates
Slide 6: End-Market Diversification
End-Market Diversification Industrial 35% Automotive 25% Consumer 24% Computing 9% Communication 5% Aerospace & Defense 2% Industrial 11% Computing 20% Communications 31% Other 9% Aerospace & Defense 29% Microchip Microsemi Industrial 27% Computing 12% Communications 13% Other 3% Aerospace & Defense
Slide 7: Extensive Combined Portfolio Across End Markets
Extensive Combined Portfolio Across End Markets MCUs Mixed signal Memory Analog Interface Switches & controllers High-Rel Discrete Power mgmt. COMBINED CAPABILITIES Industrial 27% Automotive 17% Consumer 16% Communication 13% Computing 12% A&D 11% Enterprise storage FPGA
Slide 8: Highly Profitable Financial Model
Highly Profitable Financial Model * * In millions, except percentages. All figures are non-GAAP and are based on results for the December 2017 quarter. Revenue and operating income dollars are based on December 2017 quarter results which were annualized by multiplying the December quarter numbers by
Slide 9: Synergy and Accretion Expectations
Synergy and Accretion Expectations Transaction is expected to be immediately accretive to our non GAAP earnings per share Short term: Targeting 18% growth in non-GAAP EPS from FY18 to FY19 with accretion from Microsemi (assumes June 2018 close) Microsemi adds ~75 cents of non-GAAP EPS accretion annu
Slide 10: Transaction Summary And Financing
Transaction Summary And Financing Transaction value of $10.15B Includes assumption of net debt of Microsemi of $1.8B as of 12/31/2017 $68.78 per share in cash to Microsemi stockholders Transaction is being funded through a combination of: $1.6B of cash from combined company balance sheets $0.6B of c
Slide 11: Summary
Summary Microsemi adds strong complementary product lines which support the Microchip 2.0 strategy Microsemi’s strength in Defense, Aerospace, Data Center and Communication markets complements Microchip’s strength in Industrial, Automotive and Consumer markets Microsemi adds further operational and
Slide 12: Thank You!
MicROCcHIP Thank You! So ‘SMART | CONNECTED | SECURE
Slide 13: Microsemi Expands Our Served Available Market
Microsemi Expands Our Served Available Market FPGA High Reliability Analog Mixed-ignal Optical Networking Storage Adapters Ethernet Solutions Discretes & Power Modules Power Management Security Technology Sensor Interfaces Software & IPs Power over Ethernet (PoE) RFIC/MMIC Audio Processing Timing &
Slide 14: Microsemi Innovation
MicROCcHIP Microsemi Innovation & Microsemi Power Matters.” ©March 2018
Slide 15: Strengthens Our Industrial Market Offering
Smart Energy Oil & Gas Key Industrial Products FPGA Industrial Ethernet Power & High-Reliability RF Microwave Clocks & Timing Automation Motor Control IIoT Automotive Ethernet in the car Medical Key Industrial Applications PoE Building Automation IP security cameras Strengthens Our Industrial Market
Slide 16: Access Infrastructure from Core to Last Mile
Edge / Core Routers OTN, FPGA, 1588, Clocks Optical Transport Metro and Core OTN, Clocks, FPGA Packet Transport 1588, FPGA, Clocks, PHY, Carrier Ethernet Access Infrastructure Carrier Ethernet, PHY, FPGA, RPF, 1588, Midspan, Clocks, PON Broadband/ Residential Voice, TW, WiFi Wireless/ Microwave Back
Slide 17: Ethernet as a Platform to Deliver a Comprehensive Solution
Ethernet as a Platform to Deliver a Comprehensive Solution Signal boost and Equalization + Relocation Power over Ethernet Systems and ICs Diodes Rectifiers & Bridges Optical Drivers (Inside Fiber Modules) Software Media PoE Drivers Signal Interface Signal Integrity PHY Switching / Routing Ethernet S
Slide 18: Comprehensive Data Center Portfolio for Key Applications
Comprehensive Data Center Portfolio for Key Applications Hybrid Cloud Private Cloud Public Cloud Connect Storage Systems NVM Storage Rack Scale Architecture Ethernet Switching Data Protection & Security Network Timing Data Center Power Data Center Interconnect Servers Custom ASIC Leading Data Center
Slide 19: Storage Leadership Driving Greater Penetration of the Data Center
Storage Leadership Driving Greater Penetration of the Data Center #1 in SAS Ports Shipped #1 in Storage Systems #1 in Performance #1 in Density / Port Count #1 in Flash Controllers Market Adoption & Success Technology & Innovation 1st Controller Based Encryption 1st 24 Port SAS Controller 1st PCIe G
Slide 20: Microsemi Enterprise Reference Design
Microsemi Enterprise Reference Design © 2017 Microsemi Corporation. CONFIDENTIAL SST Micrel Classic Microchip Micrel SST Microsemi