Nxp Semiconductors N.v. · NASDAQ:NXPI
Nxp Semiconductors — Investor Presentation (January 2013)
33 slides from Nxp Semiconductors's investor presentation, January 2013
Slide 1: NXP Semiconductors Investor Presentation
NXP Semiconductors Z Investor Presentation January 2013
Slide 2: Forward Looking Statement
Forward Looking Statement This document includes forward-looking statements which include statements regarding our business strategy, financial condition, results of operations, and market data, as well as any other statements which are not historical facts. By their nature, forward- looking stateme
Slide 3: Business Strategy
Business Strategy 1 Focused on high growth application segments fueled by key mega-trends 2 Leverage unique HPMS capabilities to power new product engine 3 Multiple growth drivers across a range of target applications 4 Margin expansion into long-term model 5 Capital structure de-leveraging Above-ma
Slide 4: Focused on Growth from Key Mega Trends
Focused on Growth from Key Mega Trends Key Mega-Trends (>$1,100 billion spend1) Energy Connected Security Health Efficiency Devices require High-Performance Mixed-Signal Solutions Application-optimized analog and digital solutions that help our customers to truly differentiate their products in term
Slide 5: Competitive HPMS Product Franchises
Competitive HPMS Product Franchises Characteristics of HPMS Market 2012 Product Segment Contribution ($M) • Large and fast growing Standard Products Automotive $939M $832M • Broad and diverse customer base (10%) Y-Y +1% Y-Y 23% of Total 20% of Total • High barriers to entry • “Sticky” customer relat
Slide 6: NXP Business Trends
NXP Business Trends Revenue ($M) Non-GAAP Gross Margin $1,121 $1,094 $1,170 $1,116 $1,082 $1,060 $931 $978 48.3% 47.8% 47.8% 45.4% 46.2% 46.3% 46.1% 44.3% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Non-GAAP Operating Margin Adj. EBITDA Margin 27.3
Slide 7: Business Segment Revenue and Margin Trends
Business Segment Revenue and Margin Trends HPMS Revenue and Gross Margin HPMS Operating Income and Margin 57.0% 56.5% 55.6% 23.6% 23.1% 22.6% 21.3% 21.9% 53.3% 20.5% 52.4% 52.4% 51.5% 51.6% 16.8% 17.3% $742 $779 $726 $659 $710 $803 $901 $868 $175 $166 $149 $111 $123 $176 $208 $196 Q1 11 Q2 11 Q3 11
Slide 8: HPMS Revenue Business Trends
HPMS Revenue Business Trends(1) ($M) Automotive Identification 5% Q-Q (5%) Q-Q $275 $290 $238 $251 $244 $239 $223 $218 $229 $227 $234 $189 $194 $187 $160 $155 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Infrastructure and Industrial Portable and Co
Slide 9: Identification
Identification 2012 Revenue = $986M, 24% Product Revenue Key Positions Highlights #1 Transport Secular market trends and solutions # 1 eGov & Access Electronic Mobile Payments SmartMXTM Security & Trusted Access Smart@IDTM #1 NFC # 1 RFID Secure Connected Mobility MIFARETM Counterfeit
Slide 10: Identification Market Opportunities
Identification Market Opportunities Core Emerging eGovernment, Payment, Smart Mobility, Mobile Transactions (excl. Bulk-SIM), Tagging, Infrastructure Authentication Market Size1 $1.47B $0.36B Market Growth Rate2 12% 37% Market Share3 44% 12% NXP Rank4 #1 #1 in Mobile, entering Authentication Key Pro
Slide 11: Portable and Computing
Portable and Computing 2012 Revenue = $753M, 18% Product Revenue Key Positions Highlights 32-bit ARM MCU Secular market trends Increased demand for energy efficiency Low power mixed-signal integration Interface ICs: I²C, Bridging ICs, UARTS, LP RTC Shift toward embedded ARM-architecture Gene
Slide 12: Portable & Computing Market Opportunities
Portable & Computing Market Opportunities Core Emerging Interface Products MCU Logic Mobility Market Size1 $2.1B $3B $1.5B $5B Market Growth Rate2 4% 4% 2% 10% Market Share3 11% 7% 22% 0% NXP Rank4 #1 #11 #1 Volume, Auto, N/A I2C, Multiprotocol MCU Mobile Key Products • Auto Display Drivers • Indust
Slide 13: Automotive
Automotive 2012 Revenue = $939M, 23% Product Revenue Key Positions Highlights #1 Passive Keyless Entry & Immobilizers Secular market trends and characteristics Focus on reduced CO2 ,mobility and convenience # 1 In-Vehicle Networking: (CAN/LIN/FlexRay) High barriers to entry and long product li
Slide 14: Automotive Market Opportunities
Automotive Market Opportunities Core Emerging In-Vehicle Magnetic Car Entertainment Car Access Business Networking Sensors Market Size1 $1.2B $0.5B $0.4B $0.8B $0.2B Market Growth Rate2 6% 6% 6% 5% 40% Market Share3 35% 52% 41% 12% 0% NXP Rank4 #1 #1 #1 #3 N/A RMS5 1.5 2.3 2.6 0.4 N/A Key Products •
Slide 15: Infrastructure and Industrial
Infrastructure and Industrial 2012 Revenue = $604M, 15% Product Revenue Key Positions Highlights High Performance RF – Cellular basestations Secular market trends Mobile data usage driving cellular base-station upgrade RF Silicon Tuners – DTV, STB, and Cable Modem Increased demand for energy e
Slide 16: Infrastructure & Industrial Market Opportunities
Infrastructure & Industrial Market Opportunities Mature Core Emerging High Performance RF Power & Lighting Solutions RF Emerging Transceivers Power Small Power Lighting Business Amplifier Signal Adapters Drivers Market Size1 $0.51B $0.93B $1.10B $0.62B $0.18B $1.35B Market Growth Rate2 2% 4% 6% 5% 1
Slide 17: Standard Products
Standard Products 2012 Revenue = $832M, 20% Product Revenue Solutions for energy efficiency and system protection leveraging integration and packaging leadership Commitment to quality – product failure rate measured in parts per billion (ppb) Broad Portfolio - Approximately 45% of all Standard
Slide 18: Q4 2012 Quarterly Revenue and Operating Income
Q4 2012 Quarterly Revenue and Operating Income GAAP Financial Summary Quarterly Segment Revenue: $50 , 4% Q4 Q3 Q4 Y-Y Variance Q-Q Variance ($ in millions) 2012 2012 2011 Q4 ‘11 – Q4 ‘12 Q3 ‘12 – Q4 ‘12 Product Revenue 1,066 1,114 857 209 (48) $198 , 18% All Other 50 56 74 (24) (6) Total Revenue 1,
Slide 19: Q4 2012 Business Segment Performance
Q4 2012 Business Segment Performance GAAP Financial Summary HPMS Q4 Q3 Q4 STDP Q4 Q3 Q4 Y-Y Q-Q Y-Y Q-Q ($ in millions) 2012 2012 2011 ($ in millions) 2012 2012 2011 Revenue 868 901 659 209 (33) Revenue 198 213 198 - (15) Gross Profit 453 463 321 132 (10) Gross Profit 41 73 67 (26) (32) Gross Margin
Slide 20: 2012 Annual Revenue and Operating Income
2012 Annual Revenue and Operating Income GAAP Financial Summary Annual Segment Revenue: $244 , 6% Y-Y Variance ($ in millions) 2012 2011 2010 2009 2012 – 2011 Product Revenue 4,114 3,831 3,694 2,578 283 $832 , 19% All Other 244 363 708 941 (119) Total Revenue 4,358 4,194 4.402 3,519 164 Gross Profit
Slide 21: 2012 Annual Business Segment Performance
2012 Annual Business Segment Performance GAAP Financial Summary HPMS STDP 2012 2011 2010 2009 Y-Y 2012 2011 2010 2009 Y-Y ($ in millions) ($ in millions) Revenue 3,282 2,906 2,846 2011 376 Revenue 832 925 848 567 (93) Gross Profit 1,745 1,573 1,525 785 172 Gross Profit 238 336 280 74 (98) Gross Marg
Slide 22: Annual HPMS Revenue Business Trends
Annual HPMS Revenue Business Trends(1) ($M) Automotive Identification 41% Y-Y 1% Y-Y $986 $931 $930 $939 $698 $589 $616 $381 2009 2010 2011 2012 2009 2010 2011 2012 Infrastructure and Industrial Portable and Computing 14% Y-Y (2%) Y-Y $689 $753 $637 $617 $604 $661 $515 $499 2009 2010 2011 2012 2009
Slide 23: Debt Summary Dec 2012
Debt Summary Dec 2012 Sr. Secured Sr. Secured Sr. Secured Term Term Sr. Secured Term Term Revolving FRN FRN FRN Loan A Loan A2 Notes Loan B Loan C Credit Facility Debt Instrum ent Issue Date 15-Oct-06 15-Oct-06 10-Nov-11 05-Mar-11 16-Dec-11 20-Jul-10 19-Mar-12 12-Dec-12 27-Apr-12 Maturity Date 15-Oc
Slide 24: Working Capital Ratios
Working Capital Ratios DSO DPO Target 40 – 45 Days Target 70 – 80 Days 36 35 36 43 38 38 37 38 85 86 85 77 76 86 79 82 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 DIO Cash Conversion Cycle Target 75 – 85 Days Target 45 – 50 Days 85 87 97 104 102 10
Slide 25: Guidance for the First Quarter of 2013
Guidance for the First Quarter of 2013 (1) Guidance Range Product Revenue trends at the mid-point of 1Q13 Low Mid High guidance: Product Revenue $ 1,027 $ 1,043 $ 1,058 1. Automotive is expected to be down low single digit Q-Q -4% -2% -1% range Q-Q; Mfg. & Other Revenue $ 24 $ 24 $ 24 2. Identificat
Slide 26: Target Financial Model
Target Financial Model HPMS Target SP Target (1) NXP Target(2) Revenue > Market Growth @ Market Growth > Market growth Product Revenue Mix >80% <20% Non-GAAP Gross Margin 58 - 63% 33 - 39% 52 - 56% Non-GAAP Operating Margin 24 - 29% 18 - 23% 23 - 28% Long-term Tax Rate 12% - 14%(3) Capex ~5% over a
Slide 27: Q4 2012 Financial Reconciliation (GAAP to non-GAAP)
Q4 2012 Financial Reconciliation (GAAP to non-GAAP) ($ in millions, unless otherwise stated) Q4 2012 Q3 2012 Q4 2011 Total Revenue 1,116 1,170 931 GAAP Gross Profit 490 536 389 Gross profit adjustments (24) (6) (34) Non - GAAP Gross Profit 514 542 423 GAAP Gross Margin 43.9% 45.8% 41.8% Non-GAAP Gro
Slide 28: 2012 Financial Reconciliation (GAAP to non-GAAP)
2012 Financial Reconciliation (GAAP to non-GAAP) ($ in millions, unless otherwise stated) 2012 2011 2010 2009 Total Revenue 4,358 4,194 4,402 3,519 GAAP Gross Profit 1,988 1,906 1,823 898 Gross profit adjustments (6) (82) (52) (227) Non - GAAP Gross Profit 1,994 1,988 1,875 1,125 GAAP Gross Margin 4
Slide 29: Quarterly Cash Flow Overview ($M)
Quarterly Cash Flow Overview ($M) Q4 Q3 Q4 2012 2012 2011 Net cash provided by (used for) operating activities 164 192 (34) Net cash provided by (used for) investing activities (45) (71) (33) Net cash provided by (used for) financing activities (209) (258) (12) Net cash provided by (used for) contin
Slide 30: Annual Cash Flow Overview ($M)
Annual Cash Flow Overview ($M) 2012 2011 2010 2009 Net cash provided by (used for) operating activities 722 175 361 (701) Net cash provided by (used for) investing activities (243) (202) (269) 63 Net cash provided by (used for) financing activities (574) (926) (157) (109) Net cash provided by (used
Slide 31: Quarterly Adjusted EBITDA ($M)
Quarterly Adjusted EBITDA ($M) Q4 Q3 Q4 2012 2012 2011 Net income (loss) (98) 131 (173) Income (loss) on discontinued operations - - 2 Income (loss) on continuing operations (98) 131 (175) Reconciling items to EBITDA Financial (income) expense 153 33 165 (Benefit) provision for income taxes (7) 6 2
Slide 32: Annual Adjusted EBITDA ($M)
Annual Adjusted EBITDA ($M) 2012 2011 2010 2009 Net income (loss) (52) 436 (406) (153) Income (loss) on discontinued operations 1 434 59 32 Income (loss) on continuing operations (53) 2 (465) (185) Reconciling items to EBITDA Financial (income) expense 437 257 628 (682) (Benefit) provision for incom
Slide 33: Positioned to Deliver Industry Leading Growth
Positioned to Deliver Industry Leading Growth 7,500 NXP HPMS Growth >50% Faster Than Market $ MM 6,000 Healthcare Car – 2 - X Internet of Things 4,500 Cyber Security 2,011 High Speed Interface Mobile NFC 3,000 HPRF 1,500 AUTO >1.5x Industry HPMS Growth Solutions - 2010 CORE Product Revenue EMERGING
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