Broadcom Inc. · NASDAQ:AVGO
Broadcom — Merger or Acquisition (May 2015)
11 slides from Broadcom's merger presentation, May 28, 2015
Slide 1: Avago to Acquire Broadcom
Your Imagination, Our Innovation Avago to Acquire Broadcom Creates World’s Leading Diversified Communications Semiconductor Company Investor Presentation May 28, 2015
Slide 2: Forward-Looking Statements
Your Imagination, Our Innovation Forward-Looking Statements Cautions Regarding Forward-Looking Statements This communication contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the Unite
Slide 3: Strategically and Financially Compelling Transaction
Your Imagination, Our Innovation Strategically and Financially Compelling Transaction Creates world’s leading diversified communications semiconductor company Broad portfolio of category-leading franchises Levered to numerous secular growth trends $750 million of run rate cost synergies Immediately
Slide 4: Creates a Global Semiconductor Leader
Your Imagination, Our Innovation Creates a Global Semiconductor Leader LTM Revenue ($B) $55.9 $27.5 $15.1 $13.2 $10.5 $8.5 $7.3 $6.9 $6.6 $6.6 + + Combined enterprise value of $77 billion Source: Company filings as of May 27, 2015 Page 3
Slide 5: World's Leading Diversified Communications Semiconductor Company
Your Imagination, Our Innovation World’s Leading Diversified Communications Semiconductor Company Avago (1) Broadcom Combined (2) LTM Rev: $15.1B Industrial & Other Enterprise Storage LTM Rev: $8.5B Wireless Comm LTM Rev: $6.6B Infrastructure & Industrial & Other Networking Wired Infrastructure Ente
Slide 6: Broad Portfolio of Category-Leading Franchises
Your Imagination, Our Innovation Broad Portfolio of Category-Leading Franchises Storage Wireless Ethernet RF Fiber Optics ASIC Optocouplers HDD Connectivity Combo Set Top Box Broadband Switching PHY Leading Positions P P P P P P P P P P P Key Customers Page 5
Slide 7: Levered to Numerous Secular Growth Trends
Your Imagination, Our Innovation Levered to Numerous Secular Growth Trends LTE Transition Datacenter Spending LTE Phone Growth (Units M) Hardware Datacenter Spending ($M) $15,731 1,316 $9,397 467 2014 2019E 2014 2017E Source: Gartner 2014 Source: Gartner 2014 IP Traffic Connected Home / IoT Global I
Slide 8: Highly Profitable Financial Model
Your Imagination, Our Innovation Highly Profitable Financial Model Long-term Sustainable and + ($ in B) (5/03/2015) (1) (3/31/2015) model growing revenue Revenue $6.6 $8.5 $15.1 5% CAGR Proven operating model with industry Gross margin 59% 55% 57% 60% leading margins $750M of annual run R&D %
Slide 9: Transaction Overview
Your Imagination, Our Innovation Transaction Overview $37 billion of total transaction consideration Transaction – ~$17 billion in cash Consideration – Economic equivalent of ~140 million Avago shares (current value of ~$20 billion (1)) Broadcom shareholders expected to own 32% of combined compa
Slide 10: Transaction Financing
Your Imagination, Our Innovation Transaction Financing $15.5 billion of new term loans at closing ($6.5 billion to refinance existing debt facilities and $9 billion of new debt) Credit Facility $500 million revolving credit facility (undrawn) Facility allows for dividends and share repurchases
Slide 11: Important Additional Information
Your Imagination, Our Innovation Important Additional Information No Offer or Solicitation This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solici