Slide 1: Investor Day
INVESTOR DAY September 7, 2023 1
Slide 2: Introduction
INTRODUCTION Munjal Shah | VP Investor Relations 2
Slide 3: Safe Harbor Statement
Synaptics Investor Day 2023 SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectat
Slide 4: Reaffirm Fiscal Q1 Guidance
Synaptics Investor Day 2023 REAFFIRM FISCAL Q1 GUIDANCE See press release filed today, September 7, 2023 We are reiterating our guidance for the September quarter given in the August 3, 2023 earnings release Webcast and slides of today’s presentation are available on the IR section of www.synapt
Slide 5: Agenda
Synaptics Investor Day 2023 AGENDA MICHAEL HURLSTON MICHAEL HURLSTON Growth Automotive Strategy President & CEO President & CEO Wireless VENKAT KODAVATI Financials DEAN BUTLER Connectivity SVP & GM, for Growth CFO Wireless EXECUTIVE TEAM IoT VIKRAM GUPTA Q&A Processors SVP & GM, Synaptics IoT Proces
Slide 6: Accelerating Growth
ACCELERATING GROWTH Michael Hurlston | President & CEO 6
Slide 7: The Synaptics Journey
FOUNDED Frederico Faggin IPO 1 BILLION UNITS & Carver Mead iPOD Shipped 1ST TOUCHPAD Capacitive Touch MOBILE INVESTMENT WORLD’S FIRST Capacitive touch screen phone 1986 1995 2002 2004 2007 2011 2014 Synaptics Investor Day 2023 THE SYNAPTICS JOURNEY 2023 2022 2021 2020 2019 2017 IoT SURPASSES BOLSTER
Slide 8: Synaptics' Transformation Journey
Synaptics Investor Day 2023 SYNAPTICS’ TRANSFORMATION JOURNEY Long history of successfully transitioning into new markets PC PHASE (2004) MOBILE PHASE (2017) IoT PHASE (2023+) 16% 14% Mobile 23% Mobile PC 5% 16% IoT PC 84% 82% 70% PC Mobile IoT 8
Slide 9: Market Leading IoT Products
No. No. UNIFIED COMMUNICATIONS VIDEO INTERFACE 1 1 AND COLLABORATION (UCC) MARKET LEADING IoT AUTOMOTIVE No. No. VIRTUAL REALITY INFOTAINMENT 1 1 DISPLAY DRIVERS PRODUCTS TOP TOP ENTERPRISE HEADSETS 2 3 IoT CONNECTIVITY 9
Slide 10: The Right Market
Why IoT? THE RIGHT MARKET IoT SEMICONDUCTOR SYNAPTICS MARKET SAM EXPANSION $270B $38B 12% CAGR Investor Day 2020 SAM sizing Updated Synaptics SAM sizing $155B $9.5B $5.0B 2022 2023 2024 2025 2026 2027 2019 2023 2028 Source: Gartner IoT Semiconductors, Worldwide, 2Q23 Update, and Synaptics internal e
Slide 11: The Right Technology
Why IoT? THE RIGHT TECHNOLOGY SENSING PROCESSING CONNECTING AI Low-Power Touch Biometrics Wi-Fi Bluetooth Accelerators Neural Networks Computer Intelligent Audio/Video MPU ZigBee GPS Vision Audio Processing MCU 11
Slide 12: The Right Team
Why IoT? THE RIGHT TEAM ACCESS TO IoT TALENT WORLDWIDE MANAGEMENT WITH 85 YEARS OF EXPERIENCE LEADING HIGH-GROWTH IoT TEAMS UK POLAND USA JAPAN VENKAT FRANCE ISRAEL KODAVATI CHINA INDIA TAIWAN VIKRAM GUPTA IoT TALENT WORLDWIDE SALEEL AWSARE US NON-US HW SW 18% 82% 54% 46% 12
Slide 13: The Right Customers
Why IoT? THE RIGHT CUSTOMERS Well-established strategic relationships with key players across the IoT space 13
Slide 14: Broad Landscape of IoT: Focus on Processors and Wireless
WITHIN FOCUS THE BROAD ON PROCESSORS LANDSCAPE AND OF IoT..... WIRELESS MOVES SYNAPTICS INTO THE LARGEST PIECE OF THE IoT MARKET SENSE PROCESS CONNECT 14
Slide 15: Why Processors and Wireless
Synaptics Investor Day 2023 WHY PROCESSORS AND WIRELESS TRACK RECORD OF SUCCESS LARGE MARKETS RIGHT TECHNOLOGY $250 $225M $200 Best-in-class Revenue ($M) $150 $9.3B $100 SAM WIRELESS $65M FY28 $50 $0 2020 2022 End-to-end portfolio $24B PROCESSORS SAM Scalable Software FY28 Efficient AI Network Sourc
Slide 16: Processors and Wireless Drive Funnel
Synaptics Investor Day 2023 PROCESSORS AND WIRELESS DRIVE FUNNEL WIRELESS NETWORKING ENTERPRISE PRODUCTIVITY Core IoT Enterprise + $2.2B Automotive EDGE PROCESSING THE FUTURE AUTOMOBILE $2.7B Source: Synaptics internal sales funnel which includes all customer opportunities which are considered as ‘d
Slide 17: Building on IoT Foundation
Synaptics has reinvented itself many times over its history Focus on IoT has generated the margins and Cash flow that enable further investment BUILDING ON IoT FOUNDATION Key Takeaways Processors and Wireless: Large Opportunity within IoT Doubling down leads to outsized growth and shareholder value
Slide 18: Wireless Connectivity
WIRELESS CONNECTIVITY Venkat Kodavati | General Manager, Wireless 18
Slide 19: Our Broad Portfolio
Synaptics Wireless OUR BROAD PORTFOLIO IoT connectivity supplier with deep know-how and best-in-class products LARGEST SAM WITH HIGH GROWTH AUGMENTS WI-FI & BT IN NICHE IoT APPLICATIONS 19
Slide 20: Wi-Fi Anywhere, Anytime
Synaptics Wireless WI-FI ANYWHERE, ANYTIME 42 BILLION $3.4 TRILLION Cumulative device Economic value shipments 3.8 BILLION 94.6 MILLION Annual device Wi-Fi 6E access shipments points 19.5 BILLION 628 MILLION Devices in use Global public access points 2.5 BILLION 473 MILLION Wi-Fi 6 device Wi-Fi 6E d
Slide 21: Bluetooth Everyday Connections
Synaptics Wireless BLUETOOTH® EVERYDAY CONNECTIONS Total Annual Bluetooth® Device Shipments NUMBERS IN BILLIONS 8 7 6 5.9 6.5 7.1 7.6 BILLION 5.4 Annual shipments 4.9 5 4.6 4.1 4.2 4 3.8 3 2 1 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 9% CAGR Data source: ABI Research, 2023 21
Slide 22: Wi-Fi & BT Connectivity Market
Synaptics Wireless WI-FI & BT CONNECTIVITY MARKET $10 $9.3B SAM EXPANSION $7+ BILLION BLE & THREAD $8 $2.5 Standalone BLE/Thread Low data rate/low cost $6.2B MCU integrated BILLIONS $6 NEW MARKETS BROAD MARKET FOR SYNAPTICS $1.9 $3.2 Low cost MCU integrated segments $4 Low power Data c
Slide 23: Wireless Foundation
Team, Revenue & Engineering WIRELESS FOUNDATION 300 CUMULATIVE YEARS OF WIRELESS EXECUTIVE LEADERSHIP FY2023 ORGANIC DEVELOPMENT Delivered 4 high-performance SoCs Branching out to broad market FY2022 REVENUE GROWTH 3.5x revenue 10x customers FY2021 TEAM BUILDING Assembled top team of 350+
Slide 24: High Performance Market
Synaptics Wireless HIGH PERFORMANCE MARKET OTT/STB/TV HOME SECURITY SMART DISPLAY/SPEAKER DRONES/ROBOTICS High speed Reliable connection Wi-Fi/BT co-existence Rate-over-Range 24
Slide 25: Ahead of the Curve
Synaptics Wireless AHEAD OF THE CURVE LONG RANGE IC INNOVATION WI-FI/BT COMBO LEADERSHIP Enhanced Spatial diversity 16nm process for low First Wi-Fi 7 and Bluetooth® algos for 2x range power & size 6.0 product for IoT market Consistent video delivery Lowest power World’s first innovative
Slide 26: Industry-Leading Performance
Synaptics Wireless INDUSTRY-LEADING PERFORMANCE SYNAPTICS WI-FI/BT CO-EX ENGINE: 20 YEARS OF EXCELLENCE 25x 50% WIDER HIGHER MORE CHANNEL THROUGHPUT WIRELESS TECH LEADING DEVICE WFA SECURITY UPDATES CERTIFIED BEST IN CLASS INTEROPERABILITY 26
Slide 27: Why We Win
High Performance Wireless WHY WE WIN WORLD’S BEST WI-FI & BLUETOOTH® IP Unmatched Interoperability CUTTING EDGE CMOS RF DESIGN High reliability and low system cost EASY HOST INTEGRATION Lightweight host driver. Robust SW performance LEADING FEATURES Wi-Fi 6E, RSDB, HADM, LE Audio, Triple Combo Co-Ex
Slide 28: Broad Market Applications
Synaptics Wireless BROAD MARKET APPLICATIONS HOME AUTOMATION SENSORS WEARABLES APPLIANCES Low-cost Small size Low power Turnkey System 28
Slide 29: Innovation for Broad Market
Synaptics Wireless INNOVATION FOR BROAD MARKET HIGH PERFORMANCE BROAD MARKET COMPONENT SIZE 40% SMALLER CHIP SIZE INTEGRATION LEVEL 50% LOWER SYSTEM COST 50% POWER DRAW LOWER POWER DRAW 29
Slide 30: Wi-Fi/BT MCU Integration
Benefits of Next-Gen Synaptics Technology WI-FI/BT MCU INTEGRATION Next-gen creates MCU and wireless connectivity application overlap COST EASE-OF-USE SMALLER SIZE LOWER POWER Complete system Integrated dev Lower PCB area, No external interface, solution at lower cost platform BOM & peripherals hard
Slide 31: Why We Win
Broad Market Applications WHY WE WIN INDUSTRY-LEADING PERFORMANCE Bringing high performance to Broad Market with best interoperability CUTTING EDGE FEATURES Delivering first-to-market features MARKET COMPETITIVE COST AND POWER Enables rapid customer expansion MCU + AI INTEGRATION Reduces BOM cost an
Slide 32: BLE & Thread Market
Synaptics Wireless BLE & THREAD MARKET LOCATION SERVICE CONSUMER HEALTH CARE INDUSTRIAL Distance measure High quality Low power Range extension 32
Slide 33: First-Rate BLE Foundation
Highly Efficient Coders FIRST-RATE BLE FOUNDATION CHANNEL SOUNDING DUAL CORE INDUSTRY’S MOST ACCURATE Tracker, automotive, wearable WORLD’S FIRST DUAL CORE Both MIMO or Dual BLE mode MIMO increases range 2x Dual mode lowers latency 2x LOW ENERGY AUDIO LOWEST LATENCY Multiple connections (U
Slide 34: Innovation for BLE & Thread
Synaptics Wireless INNOVATION FOR BLE & THREAD CURRENT GENERATION NEXT GENERATION 50% SMALLER SIZE ULTRA-LOW POWER 50% SMALLER TX @ 8dBm 34
Slide 35: Why We Win
BLE & Thread Market WHY WE WIN HIGH-PERFORMANCE STARTING POINT Solves interoperability and software problems LEVERAGE EXISTING BLE IP To contain cost & drive revenue growth ULTRA-LOW COST & POWER BLE With more robust RF FIRST-TO-MARKET IN IOT With multi-core Bluetooth® 35
Slide 36: Billion Dollar Growth Target
Synaptics Wireless BILLION DOLLAR GROWTH TARGET BLE & Thread BROAD MARKET HIGH PERFORMANCE FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 ___________________________ Note: Graphic not to scale and for illustrative purposes only. Wireless products only. Internal Synaptics estimates 36
Slide 37: Wireless Connectivity Key Takeaways
HIGH PERFORMANCE LEADERS Synaptics world class wireless talent EXPANDING INTO BROAD MARKET & BLE Additional $7B+ connectivity SAM WIRELESS CONNECTIVITY Key Takeaways PROCESSORS + CONNECTIVITY Facilitates & accelerates Broad Market IoT expansion MAJOR REVENUE GROWTH Poised to hit $1B in the next 5 ye
Slide 38: Processors
PROCESSORS Vikram Gupta | General Manager, IoT Processors 38
Slide 39: Edge Processing & AI
The Future of the IoT EDGE PROCESSING & AI SENSE PROCESS CONNECT 75º EDGE PROCESSORS EXPECTED TO INCREASINGLY BECOME AI ENABLED MORE LOWER MORE MORE MORE PRIVATE LATENCY AVAILABLE INTELLIGENT AWARE 39
Slide 40: A $24 Billion Device Edge Opportunity
The Edge AI IoT Market A $24 BILLION DEVICE EDGE OPPORTUNITY Expanded SAM opportunity targeting Edge AI IoT devices DEVICE EDGE ON-PREMISES EDGE ACCESS & METRO EDGE CLOUD Smart Home Appliances IP Cameras Smart Buildings Connected Field Devices Smart Audio & Display Drones and Robotics Wearables Heal
Slide 41: Addressing Broader IoT Markets
Synaptics Processor Solutions ADDRESSING BROADER IoT MARKETS $30 $25 $24B BILLIONS $20 IoT COMPUTE SILICON $11.2 New IoT markets with new products SAM EXPANSION $15 $10 $9.3 New IoT markets with existing products $5 $3B $3.0 $3.5 Existing markets $0 FY23 FY28 Source: Gartner Research reports and Syn
Slide 42: We Provide Edge Processors Today
Established in Market with Key Customers WE PROVIDE EDGE PROCESSORS TODAY ADVANCED STREAMERS & STB MULTIMEDIA PHONES SMART DISPLAYS LEADING 12nm INDUSTRY AI ENGINES INDUSTRY KEY SEGMENT SILICON STANDARD CORES SINCE 2018 CERTIFICATIONS SW PROFILES 42
Slide 43: New Customer Pull for Our Solutions
Embedded IoT Market NEW CUSTOMER PULL FOR OUR SOLUTIONS SECURITY SYSTEMS SMART SIGNAGE COST, POWER, AI CUSTOMER FOCUSED PERFORMANCE DIFFERENTIATION INTIMACY & SUPPLIER ADVANTAGE ATTENTION 43
Slide 44: Family of Edge AI Processors for IoT
Synaptics Processors FAMILY OF EDGE AI PROCESSORS FOR IoT SCALABLE COMPUTE SOLUTIONS FOR CONSUMER & INDUSTRIAL IoT MARKETS HIGH PERFORMANCE MPUs HIGH PERFORMANCE MCUs CONNECTIVITY MCUs RELEASING SOON IN DEVELOPMENT IN DEVELOPMENT AI-Native Compute AI Compute Low-Power AI Compute 44
Slide 45: Anatomy of a High Performance Synaptics MPU
Synaptics Processors ANATOMY OF A HIGH PERFORMANCE SYNAPTICS MPU Secure High-Performance Multimedia 12nm SoC, 2.5W Power Storage IO 64bit LP/DDR4/4X, Memory Encryption Secure Boot Display GPU 1C-4C 64b IO USB, SPI, SDIO ARM Core L1 FPU Compute GbE Audio NPU L2 5 TOPS Interfaces PCIe UART, GPIO, ADC
Slide 46: High Performance MPUs
Secure Multi-modal Linux and Android SoCs HIGH PERFORMANCE MPUs STB & STREAMERS HOME AUTOMATION PROCESS CONTROL POS & SCANNERS SMART APPLIANCES Multi-core Graphics, video, AI engines Industry standard Yocto, Linux, accelerated SoCs DSP subsystems 5+ TOPS HW security Android ADVANCED HIGH- SYNAPTICS
Slide 47: High Performance MCUs
Multi-modal AI-enabled Solution HIGH PERFORMANCE MCUs HOME CONTROL SECURITY & VISION WEARABLES POS & SCANNERS PROCESS CONTROL High-performance Audio, graphics, AI engines Context-aware Always-on Standard HW Zephyr, Free Standard cores imaging 10-100 GOPS computing sensing security RTOS SYNAPTICS INN
Slide 48: Connectivity MCUs
Power-Efficient, AI-enabled Solution CONNECTIVITY MCUs WEARABLES APPLIANCES ASSET TRACKING SENSORS HEALTHCARE Ultra-low power 32bit Integrated connectivity: AI engines Matter Zephyr, Free Standard HW Standard cores Wi-Fi, BT, BLE 10s of GOPS compliant RTOS security SYNAPTICS COST-OPTIMIZED BEST-IN-C
Slide 49: Software Platform of Choice
Synaptics Processors SOFTWARE PLATFORM OF CHOICE ENABLE SOFTWARE REUSE WITH A SEAMLESS EXPERIENCE ACROSS THE PORTFOLIO DEBUG & DEV UNIFIED MARKET SPECIFIC FULL STACK CUSTOMER FEATURE TOOLS SDK MIDDLEWARE SOLUTION ENABLEMENT PERFORMANCE SYNAPTICS SOFTWARE PLATFORM: RTOS & LINUX/ANDROID 49
Slide 50: Easy AI Integration for Customers
Synaptics AI Platform EASY AI INTEGRATION FOR CUSTOMERS BUILDING A UNIVERSAL PLATFORM TO ENABLE AI USE-CASES ACROSS OUR IoT PRODUCTS Secure AI AI tools to processing optimize Customers incorporate market- models specific AI-enhanced use-cases VIDEO & IMAGE ENHANCEMENT CUSTOMER PREDICTIVE MAINTENANCE
Slide 51: Processors Key Takeaways
UNLOCK A $24 BILLION OPPORTUNITY Capitalize on AI trends to disrupt IoT verticals & considerably expand SAM WE ARE AN EXISTING PROVIDER Already supplying Edge Processing Solutions for the IoT market PROCESSORS Key Takeaways CUSTOMER-CENTRIC FOCUS Streamline customer experience by creating an industr
Slide 52: Enterprise Workspaces
ENTERPRISE WORKSPACES Saleel Awsare | General Manager, Enterprise & Mobile 52
Slide 53: Total Workspace Platform
Insightful Solutions to Enable Enterprise TOTAL WORKSPACE PLATFORM 30M DOCKS 180M NOTEBOOKS 120M MONITORS 20M CONFERENCE PHONES 90M HEADSETS Edge-AI Multimodal Sensing Wired & Wireless High Performance SoC Category Leader PRESENCE DETECTION AUDIO UNIFIED COMMUNICATIONS DOCKING Extensive Portfolio FA
Slide 54: Leadership in a Growing Market
Enterprise Workspaces LEADERSHIP IN A GROWING MARKET $3.0 $2.7B WITH GROWTH $2.5 GROWTH 8% CAGR $2.2B AI Presence Detection for PCs Video technology for seamless workspaces $1.8B AI-enhanced wireless headsets BILLIONS $2.0 SAM 4% CAGR AUDIO & UCC $1.5 #1 in Wired Enterprise Headsets & UCC So
Slide 55: Marquee Customers
Key Partner for Enterprise Leaders MARQUEE CUSTOMERS Trusted partner with 35+ years of strategic relationships Unparalleled commercial reach & scale supporting customers wherever they are Enabling multiple different products Cross-selling solutions 55
Slide 56: Differentiated Technology
VIDEO & DATA TRANSPORT High-speed, low latency 40G BEST-IN-CLASS SECURITY Serdes & DisplayLink® Video Enterprise-grade security in all workspace solutions EDGE AI PROCESSING Low-power hardware + DIFFERENTIATED LEADING BIOMETRICS advanced ML algorithms TECHNOLOGY AI presence detection & MoS fingerpri
Slide 57: Leadership in Docking
Multiscreen Productivity for Enterprise LEADERSHIP IN DOCKING FIRST-TO-MARKET FIRST-TO-MARKET FIRST-TO-MARKET SMART DISPLAYPORT 2.1 HDMI 2.1 DOCK-ON-A-CHIP PIONEERED No. 1 IN UNIVERSAL DOCKING DOCKING 57
Slide 58: Universality Is Pivotal
Enterprise Workspaces are Evolving UNIVERSALITY IS PIVOTAL RISE OF MAC 1. OFFICE HOTELING BYOD POLICIES 2. 3. 1 in 4 PCs in US Enterprise 63% of Large Enterprises 82% of Enterprises ANY PC ANY OS ANY CONNECTOR 1. Source: IDC estimate, 2021 2. Source: Zippia, Hybrid Work Statistics, 2023 3. Source: C
Slide 59: The Future of Enterprise
Driving Workspace Mobility THE FUTURE OF ENTERPRISE Synaptics is uniquely positioned to enable seamlessly connected, wireless workspaces LOW LATENCY VIDEO COMPRESSION + MA-USB + WIRELESS + AI PRESENCE DETECTION WIRELESS DOCKING CONNECTED MONITORS FLEXIBLE MEETING ROOMS 59
Slide 60: Large Touchpads
Broadest Portfolio of Mechanical Clickpads & Haptic Forcepads LARGE TOUCHPADS MECHANICAL HAPTICS SEAMLESS COLLABORATION LIGHTING TOUCH + FORCE + HAPTICS + CLICK-ANYWHERE + AI ACM EXPERIENCE-DEFINING TECHNOLOGY Market moving to large touchpads with higher ASPs ~ 40% of market by ‘28 3x content va
Slide 61: Next-Gen Secure Fingerprint
Best-in-Class Biometrics NEXT-GEN SECURE FINGERPRINT SIDE WALL POWER BUTTON KEY-CAP C-DECK WIRELESS Security focus growing Steady attach & growing ASP Secure & resilient firmware In Enterprises & Governments Match-On-Chip value-add NIST, FIDO2, & FIDO NEXT Certified 61
Slide 62: Edge AI in PCs Has Arrived
Presence Detection EDGE AI IN PCs HAS ARRIVED 2025 16% Attach Rate Disruptive AI hardware & 4th-gen algorithms Greatly extends PC battery-life (+20%) Enables advanced levels of privacy Supports Zero-Trust with continual user ID Broad Market Adoption 2024 Edge-AI Enhancement Facial biometrics
Slide 63: Unified Communications & Collaboration
World’s Leading Supplier of Enterprise Collaboration Solutions UNIFIED COMMUNICATIONS & COLLABORATION HEADSETS PHONES MONITORS SPEAKERPHONES VIDEO PHONES AUDIO + VIDEO + AI + WIRELESS + SOCS MARKET & TECHNOLOGY LEADERSHIP No. 1 in Enterprise Collaboration products Full stack SoC, software and AI
Slide 64: Next-Gen Headsets
Leading Enterprise Audio Performance NEXT-GEN HEADSETS Enterprise-quality audio and connectivity -90˚ -45˚ GROWTH Market expansion ASP uplift in growing wireless segment DIFFERENTIATION 60cm Only provider of unified software platform 0˚ Multi-protocol connectivity: BT, DECT, USB PERFORMANCE
Slide 65: Enterprise Workspaces Key Takeaways
NO. 1 IN EVERY MARKET WE SERVE GROWING CONTENT VALUE WITH INNOVATION ENTERPRISE WORKSPACES Key Takeaways BROADEST PORTFOLIO OF UNIQUE TECHNOLOGY SUCCESSFULLY CROSS-SELLING MULTIPLE SOLUTIONS 65
Slide 66: Automotive
AUTOMOTIVE Michael Hurlston | President & CEO 66
Slide 67: Infotainment Market Dynamics
Synaptics Automotive INFOTAINMENT MARKET DYNAMICS Automotive Displays 8" and Up — TAM Mu 160 OLED 140 120 WE LCD TDDI 100 ARE HERE 80 Discrete LCD Touch & DDIC 60 40 LCD DDIC (CLUSTER) 20 0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Source: Omdia, and Synaptics internal estimates 67
Slide 68: Automotive: Trends in the Digital Cockpit
AUTOMOTIVE: TRENDS IN THE DIGITAL COCKPIT 2010-2020 2020-2025 2026+ Digital Displays Larger, Touch enabled Pillar to Post w/ Vivid Resolution 6-8” 8-14” 20”+ Discrete Touch 2- 3 TTDIs 3-6 TDDIs Discrete DDIC Smartbridge $4-10 $12-25 $20-30 68
Slide 69: Introducing SmartBridge
Introducing SMARTBRIDGE Advanced Automotive Display Processor • OLED-like Contrast Ratios at LCD panel prices TDDI TDDI TDDI TDDI TDDI TDDI • Advantages of LCD: LVDS LVDS • Longer Lifetime • Lower Cost Legacy • Lower Power Local Bridge Dimming eDP • Synaptics SmartBridge: eDP rBOM savings of >$10 De
Slide 70: Design Win Traction
Car Model 50+ Design Wins Synaptics Automotive DESIGN WIN TRACTION MERCEDES BENZ GLE LUCID AIR # 25+ OEM AUTOMOTIVE TDDI Design Wins 70
Slide 71: Corporate Responsibility
Synaptics Investor Day 2023 CORPORATE RESPONSIBILITY ENVIRONMENTAL SOCIAL GOVERNANCE Established Climate Targets Culturally diverse workforce High ethics and integrity standards Energy efficient operations Socially responsible supply chain Leading governance practices More information can be found a
Slide 72: Financial Model
FINANCIAL MODEL Dean Butler | Chief Financial Officer 72
Slide 73: Track Record of Financial Execution
Synaptics Investor Day 2023 TRACK RECORD OF FINANCIAL EXECUTION NON-GAAP GROSS MARGIN EXPANSION REVENUE GROWTH OF IoT PRODUCTS 60.0% 60.1% $1,101 32% CAGR $946 53.6% FY19-23 $613 43.7% 38.8% $315 $330 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 ___________________________ N
Slide 74: Successful Pivot to IoT (2019-2023)
Synaptics Investor Day 2023 SUCCESSFUL PIVOT TO IoT (2019-2023) 21% 28% 46% 14% 70% IoT Mobile IoT Mobile IoT 61% Mobile 16% FY2019 FY2021 PC FY2023 18% PC 26% PC ___________________________ Note: As-reported, not proforma for any acquisition/divestiture activity over this timeframe. See Company’s f
Slide 75: Diversified Industry Structure
Synaptics Investor Day 2023 DIVERSIFIED INDUSTRY STRUCTURE TRADITIONAL PC AUTOMOTIVE ENTERPRISE CORE IoT ~3 OEMs ~20-30 OEMs 100’s of OEMs 1,000’s of OEMs SMARTPHONES ~6 OEMs 75
Slide 76: Enhanced Accountability: Introducing Core IoT
Synaptics Investor Day 2023 ENHANCED ACCOUNTABILITY : INTRODUCING “CORE IoT” CURRENT REPORTING NEW REPORTING (FY2023 ACTUALS) (FY2023 ACTUALS) 14% 14% 23% Mobile Mobile Core IoT • Wireless CORE IoT • Processors • Enterprise Workspace 16% ENTERPRISE + • Automotive PC AUTOMOTIVE • PC (commercial lapto
Slide 77: Significant Serviceable Addressable Market
Synaptics Investor Day 2023 SIGNIFICANT SERVICEABLE ADDRESSABLE MARKET CAGR 12% $38B Core IoT • 10-15% % CAGR* • Wireless $9B SAM* • Processors $24B SAM* $22B Core IoT Enterprise + Enterprise + Automotive Automotive (and Mobile) • 3-6% CAGR* Mobile • $5B SAM* FY23 FY28 ___________________________ So
Slide 78: Core IoT: New Products Drive Growth Upside
Synaptics Investor Day 2023 CORE IoT : NEW PRODUCTS DRIVE GROWTH UPSIDE Core IoT Revenue: NEW IoT PROCESSORS Tremendous Growth Prospects BROAD-MARKET CONNECTIVITY WI-FI 7 EXPANSION EXISTING PRODUCTS (15-20% CAGR) EXISTING PRODUCTS SALES FUNNEL* Excess 28% YOY GROWTH Inventory Depletion FY2023 FY2024
Slide 79: Measuring the Growth
Value of Revenue Reporting Reclassification MEASURING THE GROWTH Synaptics almost doubles revenue by FY2028* — driven primarily by Core IoT FY2023 FY2028 10% 14% 23% 5-Year Mobile Mobile Core IoT Revenue CAGR** 45% CORE IoT 25-30% Core IoT ENTERPRISE + AUTOMOTIVE 4-6% MOBILE 3-5% 63% SYNAPTICS 10-15
Slide 80: Gross Margin Profile
Synaptics Investor Day 2023 GROSS MARGIN PROFILE Long-term blended Gross Margin target : 57% of Sales (Non-GAAP) NON-GAAP GROSS MARGIN % Core IoT ENTERPRISE mid-50’s Gross Margin (Non-GAAP) + AUTOMOTIVE CORPORATE AVERAGE CORE IoT MOBILE Mobile ~10% of sales ___________________________ Note: Graphic
Slide 81: Inorganic Investment
Capital Allocation OUR THESIS INORGANIC IoT semiconductor market consolidates & rationalizes over time INVESTMENT Our growth rate & business model allows us to meaningfully participate RECENT INVESTMENTS WI-FI M&A CRITERIA Core IoT Acceleration: Further scale in Processors Industrial end mar
Slide 82: Capital Allocation Priorities
$1.7B ORGANIC GROWTH Total R&D Synaptics 3.0 Prioritize fastest growing Core IoT Investments CAPITAL ALLOCATION FY18-23 16% ROIC PRIORITIES INORGANIC INVESTMENT $1.4B M&A Activity Heavy bias for accretive opportunities FY18-23 Leverage DEBT MANAGEMENT FY2023 Ending Target gross leverage of 1.5x Gros
Slide 83: Updated Financial Model
SYNAPTICS 3.0 Accelerate growth while delivering on an established financial model Synaptics, Inc. UPDATED EVOLUTION OF THE FINANCIAL MODEL FINANCIAL MODEL Non-GAAP JUN FEB UPDATED MODEL 2020 2021 Measures* SEPT 2023 SYNAPTICS 2.0 REVENUE 4-6% 8-10% 10-15% Pivot portfolio to IoT, improve profitabili
Slide 84: Bringing It All Together
HUGE OPPORTUNITY IN CORE IoT MARKET Significant growth accelerator ENTERPRISE LEADERSHIP UNDERPINS INVESTMENT Strong financial basis to fund Core IoT expansion BRINGING IT ALL TOGETHER Key Takeaways TRACK-RECORD OF SUCCESS Established team history of delivering strong financial results COMPELLING FI
Slide 85: Questions via email to ir@synaptics.com
INVESTOR DAY 2023 Online audience can submit a question via email to ir@synaptics.com 85
Slide 86: Financial Appendix
FINANCIAL APPENDIX Synaptics Investor Day 2023 86
Slide 87: GAAP to Non-GAAP Reconciliations
Synaptics Investor Day 2023 GAAP TO NON-GAAP RECONCILIATIONS © 2023 Synaptics Incorporated 87
Slide 88: GAAP to Non-GAAP Reconciliations
FY23 FY22 FY21 FY20 FY19 FY18 Actual Actual Actual Actual Actual Actual GAAP operating income (loss) $ 154.3 $ 350.4 $ 147.0 $ 68.9 $ (6.3) $ (61.9) Recovery on supply commitment - - (0.6) (3.0) 9.0 - Acquisition & transaction/integration related costs 132.2 140.2 139.4 55.6 77.3 136.0 Share-based c
Slide 89: GAAP to Non-GAAP Reconciliations
Reconciliation of R&D ROIC to nearest GAAP measure Totals ($ millions) FY18-23 GAAP R&D Expense $2,029 Non-GAAP R&D Expense $1,718 GAAP Operating Income $652 Non-GAAP Operating Income $1,990 GAAP ROIC on R&D -68% Synaptics Investor Day 2023 Non-GAAP ROIC on R&D 16% GAAP TO NON-GAAP ROIC = Operating
Slide 90: Fiscal Q1 2024 Guidance
NON-GAAP GAAP NON-GAAP Provided August 3, 2023 ADJUSTMENT FISCAL Q1 2024 GUIDANCE REVENUE $215M to $245M N/A N/A GROSS 43.5% to 47.5% $18M 52.0% to 55.0% MARGIN* OPERATING $139M to $147M $42M to $47M $97M to $100M EXPENSE** ___________________________ Notes: *Projected Non-GAAP gross margin excludes