Slide 1: Wolfspeed FQ1'24 Earnings
Wolfspeed FQ1’24 Earnings OCTOBER 30, 2023 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2023 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 This presentation contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause Wolfspeed’s actual results to differ materially from those indicated in the forward-lo
Slide 3: Wolfspeed at a Glance
WOLFSPEED AT A GLANCE With the pending sale of the RF business, Wolfspeed is now the world’s only pure- play, vertically integrated silicon carbide company By the Numbers #1 >60% Producer of Wolfspeed makes more than silicon carbide 60%of the worlds silicon $197 million The JP: the world’s largest a
Slide 4: Mohawk Valley Update
MOHAWK VALLEY UPDATE Key Takeaways Mohawk Valley Fab Revenue • FQ1’24 revenue contribution of ~$4M $10M to $15M • FQ2’24 revenue estimates of $12.5M at the midpoint • Rapidly growing ramp with significant revenue increase expected in 2H FY24 • Doubled the number of products qualified in the last 90
Slide 5: Materials Update
MATERIALS UPDATE Building 10: Durham Campus, NC • Building 10 ramp ahead of plan • Producing enough material to support 15% utilization at Mohawk Valley by end of FQ2’24 • On track to support 20% utilization by June 2024 The JP: Siler City, NC • Construction progressing as expected • Plan to produce
Slide 6: RF Sale: Transaction Overview
RF SALE: TRANSACTION OVERVIEW • Positions Wolfspeed as a pure-play silicon carbide technology company Strategic Rationale • Allows for a focus on the growing EV and industrial silicon carbide markets • Selling the business segment to MACOM Technology Solutions Terms Holding, Inc. (NASDAQ: MTSI) • Ap
Slide 7: Making and Taking Share Amidst Rapidly Accelerating Demand
MAKING AND TAKING SHARE AMIDST RAPIDLY ACCELERATING DEMAND Cumulative Power Device Design-Ins ($M) 1 Key Takeaways • $2.2B of Power Device design-ins in FQ1’24, the ~$20,200 3rd largest on record • $1.4B of Power Device design-wins in FQ1’24, the largest on record ~$13,600 • Reflects 231 projects •
Slide 8: Driving Our Investment in the World's Largest Silicon Carbide Manufacturing Footprint
DRIVING OUR INVESTMENT IN THE WORLD’S LARGEST SILICON CARBIDE MANUFACTURING FOOTPRINT Purpose-built silicon carbide fabs Deliver >11x Revenue at Scale than Durham Power Device Fab Siler City Facility exponentially increases materials capacity over the Durham Facility, which today accounts for >60% o
Slide 9: Balance Sheet
BALANCE SHEET Wolfspeed is well capitalized to support capacity expansion plans Multiple Sources of Liquidity ($M) Key Takeaways • Expect peak CapEx period in FY24 ~$4.3B • Operating cash flow generation targeted by FY25 1,000 • Free cash flow generation targeted by FY27 • Government incentives prov
Slide 10: FQ2'24 Guidance
FQ2’24 GUIDANCE1 Revenue $192M - $222M Non-GAAP Gross Margin 12% - 20% Non-GAAP OpEx ~$109M Non-GAAP Net Loss $(88)M - $(71)M Guidance Drivers Upcoming Milestones • $10M - $15M revenue contribution from Mohawk Valley; • Mohawk Valley Fab partially offset by China I&E weakness o 20% utilization (wafe
Slide 11: Appendix
APPENDIX
Slide 12: Non-GAAP Reconciliation – Gross Margins
NON-GAAP RECONCILIATION – GROSS MARGINS Three Months Ended December 31, 2023 GAAP gross margin from continuing operations outlook range 9% to 17% Adjustments: Stock-based compensation expense 3% Non-GAAP gross margin from continuing operations outlook range 12% to 20% WOLFSPEED CONFIDENTIAL & PROPRI
Slide 13: Non-GAAP Reconciliation – Operating Expenses
NON-GAAP RECONCILIATION – OPERATING EXPENSES Three Months Ended (in millions of U.S. Dollars) December 31, 2023 GAAP operating expenses from continuing operations outlook $128 Adjustments: Stock-based compensation expense (15) Project, transformation and transaction costs (4) Non-GAAP operating expe
Slide 14: Non-GAAP Reconciliation – Net Loss
NON-GAAP RECONCILIATION – NET LOSS Three Months Ended (in millions of U.S. Dollars) December 31, 2023 GAAP net loss from continuing operations outlook range ($153) to ($131) Adjustments: Stock-based compensation expense 21 Amortization of discount and debt issuance costs, net of capitalized interest
Slide 15: 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 16: Let's Reimagine a More Sustainable World. Together.
LET’S REIMAGINE A MORE SUSTAINABLE WORLD. TOGETHER. WOLFSPEED WOLFSPEED CONFIDENTIAL CONFIDENTIAL & PROPRIETARY & PROPRIETARY © 2022 © 2021 Wolfspeed, Wolfspeed, Inc. All Inc. rights All rights reserved. reserved. Wolfspeed® Wolfspeed® and the andWolfstreak the Wolfstreak logo are logoregistered are