Skyworks Solutions, Inc. · NASDAQ:SWKS
Skyworks Solutions — Merger or Acquisition (October 2015)
33 slides from Skyworks Solutions's merger presentation, Oct 8, 2015
Slide 1: Creating a Connectivity to the Cloud Powerhouse
October 2015 Creating a Connectivity to the Cloud Powerhouse David J. Aldrich Chairman and CEO
Slide 2: Connecting Everyone and Everything, All the Time
Connecting Everyone and Everything, All the Time Connecting Everything
Slide 3: Our Strategy
Our Strategy Capitalize on Powerful Market Forces in Mobile and IoT Diversification—Expanding our Opportunities Provide Increased Value—Systems Leadership Operational Excellence—Superior Financial Returns Above Market Growth with Diversified Analog Financial Returns
Slide 4: Leadership in Integration
Leadership in Integration System Engineering Standards Boards and Regulatory Bodies Influencing Technical Requirements Customization Core Technologies SOI CMOS SiGe GaAs TC-SAW Amplifiers Filters Switches Integration Leadership SkyOne™ 4G Module Flip Chip Die Stacking Shielding WLCSP Global Scale Ad
Slide 5: Overview
Overview Mobile Drivers Broad Market and IoT Drivers Financial Returns Macro Environment
Slide 6: Market Background
Market Background Consumers, Content Providers, Carriers Driving Data Explosion Connectivity Crucial to the User Experience Limited Spectrum to Support Exploding Data Demand Mobile Devices are the Gateway to an Ecosystem of Rich Media and E-Commerce OEMs Responding with Higher Performance Devices
Slide 7: Insatiable Demand for Higher Data
Insatiable Demand for Higher Data Gaming 20 Hours/Month Streaming Music 10 Hours/Month Std. Def Video 10 Hours/Month High Def 10 Hours/Month 4K Video 10 Hours/Month 1.2 GB 1.7 GB 2.6 GB 10 GB 30 GB Source: U.S. Cellular, 4G Americas Adoption of Streaming Services Driving a Boom Data Consumption
Slide 8: Mobile Data Consumption Exploding
Mobile Data Consumption Exploding Source: Cisco VNI Mobile, 2015
Slide 9: Connectivity an Enabler of an Ecosystem of Content and Services
Connectivity an Enabler of an Ecosystem of Content and Services Content Advertising E-Commerce Follow the Money Trail Mobile Payments
Slide 10: Addressing the Data Challenge
Addressing the Data Challenge More Frequency Bands Number of Global Frequency Bands Continues to Rise Number of Bands per Device Increasing Unlicensed Bands Becoming Available More Data Through Existing Spectrum LTE-Advanced and Carrier Aggregation Diversity and MIMO Wi-Fi Offload Higher Power-Added
Slide 11: Overview
Overview Macro Environment Broad Market and IoT Drivers Financial Returns Mobile Drivers
Slide 12: Complexity Driving Content
Complexity Driving Content World Smartphone Today ~3 Years $10-12 Addressable SkyOne™ Ultra (x5) Carrier Aggregation Diversity Module (x3) ET Converter GPS SW/LNA Multi-Stream 802.11ac WLAN LED Flash $>18 Addressable MIMO / Multi-Antenna SkyOne Ultra (x3) DC/DC Converter GPS SW/LNA 802.11ac WLAN Div
Slide 13: Long Term Growth in Mobile SAM
Long Term Growth in Mobile SAM Discrete PA Integrated Mobile Systems ~15% CAGR Biggest Growth in Integrated Systems and Mobile Analog Products Addressable Market ($M)
Slide 14: Overview
Overview Macro Environment Mobile Drivers Financial Returns Broad Market and IoT Drivers
Slide 15: Broad Market Drivers
Broad Market Drivers II. Bandwidth Needs Growing Dramatically Networking, Media, Storage, Cloud I. Internet of Things Driving Connectivity into New Device Categories III. Increasing Vertical Market Penetration Automotive, Medical, Industrial
Slide 16: Connectivity Spreading Across Diversified Markets
Connectivity Spreading Across Diversified Markets (2014-2019) 35% CAGR Internet of Things Automotive Wearables Media Gateway Tablets Smartphones PC Source: Ericsson, Skyworks estimates 0 7 14 21 28 35 2019E 2018E 2017E 2016E 2015E 2014 Units (B)
Slide 17: New Market Opportunities: Connected Home
Source: BI Intelligence Estimates 67% Compounded Growth Skyworks Traction Alarm Systems Smoke Detectors Thermostats Wireless Lighting Units (M) Streaming Media Platforms Intelligent Security Audio Systems New Market Opportunities Connected Home
Slide 18: New Market Opportunities: Automotive Applications
39% Compounded Growth Source: SBD, GSMA Skyworks Traction Navigational Assist Backlight Drivers for In-Dash Display Collision Avoidance Systems New Market Opportunities Automotive Applications
Slide 19: Growing Bandwidth Requirements Enhancing Content Opportunities
MoCA Switch Load Switch 11n WLAN FEMs Voltage Reg Load Switches DC-DC Converters MoCA Switch 11ac WLAN FEMs Satellite LNA CATV LNA Optical 4G LTE 2012 2014 SAM: <$1 SAM: $4-$5 SAM: $7-$10 Content Rich Set-top Boxes and Media Gateways Becoming the Hub of the Connected Home GPS Rx ZigBee FEM Voltage R
Slide 20: Broad Markets—Long Term Growth
Broad Markets—Long Term Growth IoT Network Infrastructure $10 Billion Opportunity Over 2-3 Year Period Networking Gear Emerging Catalog
Slide 21: Overview
Overview Macro Environment Mobile Drivers Broad Market and IoT Drivers Financial Returns
Slide 22: Significant Earnings Power
Significant Earnings Power Strong Top Line Growth - Expanding Opportunities in Targeted High Growth Markets Business Model Contribution - GM Expansion and Leverage Best In Class Financial Returns - Earnings per Share; Cash Flow; ROIC Unique Model Producing High Growth With Diversified Analog Returns
Slide 23: A Track Record of Results With Strong Operating Leverage
A Track Record of Results With Strong Operating Leverage Gross Margin 220bp Op Margin 700bp 29% Op. Inc. CAGR 21% Sales CAGR
Slide 24: Significant Earnings Potential Ahead
Significant Earnings Potential Ahead Complexity Driving Profitability Revenue ($M) $3.5B ~$4B Gross Margin 50% >50% EPS ~$6 $7 Q4’15 Mid Term ~15% Market Systems Solutions Enhance Margins Strong EPS Upside
Slide 25: Summary
Summary Target Broad Based, High Growth Segments Enabling Connectivity in all Forms Providing Value Added Solutions Analog Complexity Drives Profitability Consistently Delivering Superior Returns Diversification and Scale
Slide 26: Creating a Connectivity to the Cloud Powerhouse
Creating a Connectivity to the Cloud Powerhouse
Slide 27: Why PMC?
Why PMC? Expands Our Serviceable Market into Cloud Storage and Optical Networking Creates Operational Efficiencies and Cost Synergies Combines PMC’s Leadership in Mixed Signal Storage and Transport Devices with SWKS RF/Analog Scale and Customers Benefits All of Our Stakeholders +
Slide 28: Key Customers Complementary Yet Highly Synergistic
Key Customers Complementary Yet Highly Synergistic
Slide 29: The Combined Market Opportunity
The Combined Market Opportunity $ Billions Broad Markets / IoT Mobile Storage Networking $17B CAGR 12% $12B An Enormous Market Opportunity with Substantial Headroom
Slide 30: Q&A
Q&A
Slide 31: Ready-Access Shortcuts
Ready-Access Shortcuts Please use the following commands if you have any questions. Press *7 to unmute Press *6 to mute
Slide 32: Important Additional Information Will Be Filed with the SEC
Important Additional Information Will Be Filed with the SEC PMC plans to file with the SEC and mail to its stockholders a proxy statement in connection with the transaction. Additionally, PMC will file other relevant materials with the SEC in connection with the transaction. The proxy statement and
Slide 33: Safe Harbor Statement
Safe Harbor Statement Certain statements made herein are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act o
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