Slide 1: Fourth Quarter and Fiscal 2019 Earnings
November 6, 2019 Fourth Quarter and Fiscal 2019 Earnings
Slide 2: Safe harbor
Safe harbor In addition to the historical information contained herein, this presentation and the conference call that accompanies it contain forward-looking statements that are inherently subject to risks and uncertainties, including but not limited to statements regarding: our technology and inven
Slide 3: Qualcomm reports fourth quarter and fiscal 2019 earnings
Qualcomm reports fourth quarter and fiscal 2019 earnings Quarter ended September 29, 2019 • We delivered a strong quarter, with Non-GAAP earnings per share above the high end of our guidance range, primarily on solid performance in our QTL segment. • We exit the fiscal year having successfully execu
Slide 4: Quarterly results and guidance
Quarterly results and guidance As of November 6, 2019 Q4 ‘19 Guidance* Q4 ‘19 Results (3) Q1 ‘20 Guidance^ Revenues $4.3B - $5.1B $4.8B $4.4B - $5.2B Non-GAAP(1) combined R&D and SG&A Decrease 1% - 3% Decrease 1% Flat to decrease 2% expenses, sequential change Interest expense, net of investment and
Slide 5: Additional results and guidance
Additional results and guidance As of November 6, 2019 Segment Results and Guidance Q4 ‘19 Guidance* Q4 ‘19 Results (3) Q1 ‘20 Guidance^ MSM chip shipment 140M – 160M 152M 145M – 165M QCT EBT margin % 13% - 15% 14% 10% - 12% QTL revenues $1.0B - $1.2B $1.16B $1.3B - $1.5B QTL EBT margin % 62% - 66%
Slide 6: MSM chip shipments
MSMTM chip shipments Calendar year, millions 903 818 823 804 242 217 237 186 Quarter 608 - 628e* December 203 145 – 211 232 165e* September 220 152 June 225 201 187 199 156 March 233 189 187 179 155 2015 2016 2017 2018 2019 MSMs are products of Qualcomm Technologies, Inc. and/or its subsidiaries. *
Slide 7: Global 3G/4G/5G device shipment estimates
Global 3G/4G/5G device shipment* estimates Calendar year, as of November 6, 2019 ~1.80B ~1.75B – 1.85Be^ ~1.70B – 1.80Be Down ~3% at midpoint** Up ~3% at midpoint** 2018 2019 2020 * Global 3G/4G/5G device shipments represent our estimate of CDMA-based, OFDMA-based and CDMA/OFDMA multimode subscriber
Slide 8: Cumulative $89.5 billion returned to stockholders
Cumulative $89.5 billion returned to stockholders As of September 29, 2019 Stock Repurchases* (Billions) $22.57 $7.1 billion remained authorized for repurchase $11.25 under our stock repurchase program. $4.61 $4.55 $3.92 $3.02 $0.95 $1.50 $1.48 $1.67 $1.31 $1.34 $1.79 $0.17 $0.28 $0.14 FY’03 FY’05 F
Slide 9: Financial strength
Financial strength In Billions Sep ‘18 (2) Sep ‘19 Total cash, cash equivalents & marketable $12.1 $12.3 securities Total assets $32.7 $33.0 Stockholders’ equity $0.8 $4.9 Debt* $16.4 $15.9 FY ‘18 (2) FY ‘19 EBITDA**(1)(3) $2.2 $9.1 Adjusted EBITDA**(1)(3) $6.6 $5.7 * Including short-term and long-t
Slide 10: Footnotes
Footnotes 1. Non-GAAP results exclude the QSI (Qualcomm Strategic Initiatives) segment and certain share-based compensation, acquisition-related items, tax items and other items. Further discussion regarding our use of Non- GAAP financial measures and reconciliations between GAAP and Non-GAAP result
Slide 11: Reconciliations
Reconciliations 11
Slide 12: Note regarding use of Non-GAAP financial measures
Note regarding use of Non-GAAP financial measures The Non-GAAP financial information presented herein should be considered in addition to, not as a substitute for or superior to, financial measures calculated in accordance with GAAP. In addition, “Non-GAAP” is not a term defined by GAAP, and as a re
Slide 13: Non-GAAP results
Non-GAAP results In millions, except per share data Non-GAAP Results QSI Share-based Other Items (1)(2) GAAP Results Compensation Revenues $4,804 $10 $— $— $4,814 Net income (loss) $947 $5 ($282) ($164) $506 Q4 ‘19 Diluted EPS $0.78 $— ($0.23) ($0.14) $0.42 Diluted shares 1,211 1,211 1,211 1,211 1,2
Slide 14: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA(1) In millions FY ‘18 FY ‘19 Net income (loss) ($4,964) $4,386 Plus income tax expense 5,356 3,095 Plus depreciation and amortization expense 1,561 1,401 Plus interest expense 768 627 Less investment and other income, net 539 441 EBITDA $2,182 $9,068 Adjustments Less QSI o
Slide 15: Combined R&D and SG&A expenses
Combined R&D and SG&A expenses In millions Q3 ‘19 Q4 ‘19 % Increase Results Results (Decrease) Non-GAAP combined R&D and SG&A expenses $1,675 $1,653 (1%) Plus amounts attributable to QSI 3 3 Plus amounts attributable to other items (1) 11 6 Total combined R&D and SG&A expenses excluding certain shar
Slide 16: Business outlook
Business outlook As of November 6, 2019 Q1 ‘19 Results (1) Q1 ‘20 Estimates (2)(3) GAAP Revenues $4.8B $4.4B - $5.2B Year-over-year change decrease 9% - increase 7% GAAP diluted EPS $0.87 $0.51 - $0.61 Less diluted EPS attributable to QSI 0.01 — Less diluted EPS attributable to share-based compensat
Slide 17: Combined R&D and SG&A expenses guidance
Combined R&D and SG&A expenses guidance In millions Q4 ‘19 Results Q1 ‘20 Estimates* Non-GAAP combined R&D and SG&A expenses $1,653 0% - 2% decrease sequentially Plus amounts attributable to QSI 3 Not provided Plus amounts attributable to other items (1) 6 Not provided Total combined R&D and SG&A ex
Slide 18: Previous business outlook
Previous business outlook As of July 31, 2019 Q4 ‘19 Previous Guidance Estimate (2) Revenues $4.3B - $5.1B GAAP diluted EPS $0.38 - $0.48 Less diluted EPS attributable to QSI — Less diluted EPS attributable to share-based compensation (0.18) Less diluted EPS attributable to other items (1) (0.09) No
Slide 19: Previous combined R&D and SG&A expenses guidance
Previous combined R&D and SG&A expenses guidance As of July 31, 2019 Q4 ‘19 Previous Guidance Estimates Non-GAAP combined R&D and SG&A expenses 1% - 3% decrease sequentially Plus amounts attributable to QSI Not provided Plus amounts attributable to other items (1) Not provided Total combined R&D and
Slide 20: Tax rates
Tax rates Non-GAAP Results QSI (1) Share-based Other Items (1)(2)(3) GAAP Results Compensation(1) Estimated* Q4 ‘19 tax rate 13% —% 1% 2% 16% Q4 ‘19 Estimated* annual tax rate —% (1%) 5% 37% 41% Tax rate 10% —% —% 8% 18% FY ‘19 Annual tax rate (1%) (2%) 6% 38% 41% Q1 ‘20 Estimated** tax rate 14% —%
Slide 21: Thank you
Thank you Follow us on: For more information, visit us at: www.qualcomm.com & www.qualcomm.com/blog References in this presentation to “Qualcomm” may mean Nothing in these materials is an offer to sell any of the Qualcomm Incorporated, Qualcomm Technologies, Inc., and/or components or devices refere