Slide 1: Quarterly Investor Presentation Third Quarter 2022
Quarterly Investor Presentation Third Quarter 2022 1 Public Public Information Information © © onsemi onsemi 2022 2022
Slide 2: Safe Harbor Statement and Non-GAAP and Forecast Information
Safe Harbor Statement and Non-GAAP and Forecast Information This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements
Slide 3: Creating Shareholder Value
Creating Shareholder Value Aligned to fast-growing secular megatrends in automotive and industrial end-markets Significant gross margin expansion driven by manufacturing consolidation, portfolio optimization and mix Significant growth in Free Cash Flow – disciplined and shareholder-friendly investme
Slide 4: The onsemi Customer Promise
The onsemi Customer Promise We add intelligence through integration to create value-based solutions We drive disruptive technologies to empower a strong, sustainable ecosystem INTELLIGENT INTELLIGENT POWER SOLUTIONS SENSING SOLUTIONS enable customers to exceed offer the proprietary range targets wit
Slide 5: Intelligent Power and Sensing are a Winning Combination
Power and Sensing Synergistic goals drive go hand-in-hand. investments in Together, they are driving industrial automation massive disruption in for all industries, industrial and automotive including automotive markets Intelligent Power and Sensing are a Winning Combination Customers value Trends i
Slide 6: Intelligent Power and Sensing Drive 2X Market Growth
Intelligent Power and Sensing Drive 2X Market Growth CAGR 2021-2025 Intelligent Power ▪ 6% TAM CAGR ’21-’25 ▪ Enabling Electric Vehicles ▪ Driving Power Efficiency in Industrial Systems ▪ Accelerating the pace of de-carbonization of power grid Intelligent Power 15% Intelligent Sensing ▪ 10% TAM CAGR
Slide 7: Automotive and Industrial Markets to Fuel Growth
Automotive and Industrial Markets to Fuel Growth CAGR 2021-2025 Automotive ▪ Electrification – SiC and IGBT ▪ ADAS – Image sensors and LiDAR ▪ Power – LED and ADAS power Auto Industrial 17% ▪ Alternative energy ▪ Factory automation Industrial ▪ EV fast-charging stations 7% Other ▪ Cloud / 5G expecte
Slide 8: onsemi's SiC Leadership
onsemi’s SiC Leadership Fueling high-growth megatrends for a sustainable ecosystem ▪ SiC end-to-end capabilities provide unmatched supply assurance ▪ Differentiated technology − SiC technology – Highest efficiency and longer-range from cell and trench structure − Package technology – High power dens
Slide 9: Shifting to Fab-Liter Manufacturing
Shifting to Fab-Liter Manufacturing Legacy IDM Model – Excessive capacity Collection of many Low return on fab filler strategy expansion sub-scale sites capital investments Flexible manufacturing Invest in internal capacity for Exit sub-scale fabs and shift Optimize capex – Rely on strategy with low
Slide 10: Capital Expenditures Drive Differentiation & Leadership
Capital Expenditures Drive Differentiation & Leadership Enabling 300mm ▪ 300mm will provide significant cost capabilities at advantage in front-end costs East Fishkill ▪ Accelerate fab consolidation process ▪ GTAT expansion Silicon Carbide ▪ Expansion in die capacity ▪ Grow competitive advantage in
Slide 11: Commits to Net Zero by 2040
Fourth consecutive One of four semiconductor companies included years in Dow Jones within the electronics and semiconductor Sustainability Index industry in 2022 for seven consecutive years Top 1% of 912 companies In 2021, onsemi assessed in the maintained its ESG “A” “Manufacture of electronic rati
Slide 12: Financial Results Q3'22
12 Financial Results Q3’22 oOnsemMi.
Slide 13: Non-GAAP Financial Highlights
Non-GAAP Financial Highlights Revenue Gross Margin 2,500 49.4% 49.7% 49.3% 2,000 45.2% $ millions 1,500 41.5% 1,000 38.4% 500 34.4% 35.2% 0 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Other Intelligent Sensing Intelligent Power Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Operating Income EPS
Slide 14: Revenue by End-Market
Revenue by End-Market Q3’22 Revenue YoY Revenue* Growth 68% of revenue ($ Millions) Auto + Industrial Other Other 32% $4,110 +40.4% Automotive $2,928 40% $1,966 $2,112 Industrial +7.4% 28% YTD Q3’21 YTD Q3’22 YTD Q3’21 YTD Q3’22 Automotive and Industrial growing >5x YTD faster than other end-markets
Slide 15: Non-GAAP Financial Performance
Non-GAAP Financial Performance 2020 Q3’21 Q4’21 2021 2025 Q1’22 Q2’22 Q3’22 Q4’22 Actual Actual Actual Actual Target • Record Q3 revenue, up 26% year- 7-9% over-year and 5% quarter-over- Revenue 2,010 to ($ millions) 5,255.0 1,742.1 1,846.1 6,739.8 1,945.0 2,085.0 2,192.6 CAGR quarter 2,140 • Auto +
Slide 16: Q4'22 Guidance
Q4’22 Guidance GAAP Special Items ** Non-GAAP*** Revenue $2,010 to $2,140 million --- $2,010 to $2,140 million Gross Margin 47.0% to 49.0% --- 47.0% to 49.0% Operating Expenses $323 to $338 million $18 million $305 to $320 million Other Income and Expense (including interest expense), ($18) to ($14)
Slide 17: Notes to Q4'22 Guidance
Notes to Q4’22 Guidance • Diluted shares outstanding can vary as a result of, among other things, the actual exercise of options or vesting of restricted stock units, the incremental dilutive shares from the Company's convertible senior subordinated notes, and the repurchase or the issuance of stock
Slide 18: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation $ in Millions, except share cout and EPS Q2'20 Q3'20 Q4'20 FY2020 Q1'21 Q2'21 Q3'21 Q4'21 FY2021 Q1'22 Q2'22 Q3'22 Reconciliation of GAAP to Non-GAAP Gross Margin: GAAP Gross Margin 30.8% 33.5% 34.4% 32.7% 35.2% 38.3% 41.4% 45.1% 40.3% 49.4% 49.7% 48.3% Impa
Slide 19: Appendix: GAAP to Non-GAAP Reconciliation
Appendix: GAAP to Non-GAAP Reconciliation $ in Millions, except share cout and EPS Q4'20 FY2020 Q1'21 Q2'21 Q3'21 Q4'21 FY2021 Q1'22 Q2'22 Q3'22 Reconciliation of GAAP to Non-GAAP Net Income Attributable to ON Semiconductor Corporation: GAAP net income (loss) attributable to ON Semiconductor $ 89.0
Slide 20: Follow Us @onsemi
Follow Us @onsemi www.onsemi