Slide 1: Quarterly Investor Presentation First Quarter 2024
Quarterly Investor Presentation First Quarter 2024 1 Public Public Information Information © © onsemi onsemi 2024 2024
Slide 2: Safe Harbor Statement and Non-GAAP and Forecast Information
Safe Harbor Statement and Non-GAAP and Forecast Information This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements
Slide 3: Financial & Business Update
Financial & Business Update About onsemi Sustainable Ecosystem Appendix 3 Public Public Information Information © © onsemi onsemi 2024 2024
Slide 4: Q1'24 Highlights
Q1’24 Highlights Gross margin of 45.9% Exceeded expectations in compared to ~ 30% a challenging environment in prior downturns Sustainable New product revenue Ecosystem Free Cash Flow grew 9% Y/Y, outpacing increased ~3x Y/Y total company growth Returned ~100% of LTM free Vehicle Electrification cas
Slide 5: Non-GAAP Financial Performance
Non-GAAP Financial Performance Gross Operating Diluted LTM Free Revenue Margin Margin EPS Cash Flow $1.86B 45.9% 29.0% $1.08 7.2% -5% Y/Y -90 bps Y/Y -320 bps - $0.11 Y/Y + 230 bps Y/Y Q/Q Automotive Industrial Other $1,017m Revenue $476m Revenue $369m Revenue 3% Y/Y 14% Y/Y 12% Y/Y Our earnings rel
Slide 6: Strategic Announcements
Strategic Announcements onsemi Releases DC onsemi Introduces 7th onsemi Aligns Ultra-Fast Electric Gen IGBT based Business Groups to Vehicle Charging Intelligent Power Expand Product Solutions to Address Modules to Reduce Portfolio and Critical Barriers to Energy Consumption in Accelerate Growth Ado
Slide 7: Q2'24 Guidance Highlights
Q2’24 Guidance Highlights Revenue GM OPEX EPS GAAP: GAAP: GAAP: GAAP: $1,680 to $1,780m 44.1% to 46.1% $327 to $342m $0.82 to $0.94 Non-GAAP: Non-GAAP: Non-GAAP: Non-GAAP: $1,680 to $1,780m 44.2% to 46.2% $313 to $328m $0.86 to $0.98 Our earnings release and this presentation include certain non-GAA
Slide 8: About onsemi
Financial & Business Update About onsemi Sustainable Ecosystem Appendix 8 Public Public Information Information © © onsemi onsemi 2024 2024
Slide 9: onsemi at a glance
onsemi at a glance Our Mission We push innovation to create intelligent power and sensing technologies that solve the most challenging customer problems Our employees are inspired to go above and beyond, to increase stakeholder value through high quality and high value products and services S&P 500®
Slide 10: onsemi Focus: Accelerating Shareholder Value
onsemi Focus: Accelerating Shareholder Value Revenue Free Cash Flow Sustainable Ecosystem to drive Significant growth in Free revenue 3x the industry growth1 Cash Flow margin to 25-30%3 Aligned to fast-growing secular Capital efficiency through high megatrends of Auto and Industrial ROIC inv
Slide 11: Power of the onsemi Portfolio
Power of the onsemi Portfolio eePROM Comms Interfaces “Our broad portfolio of SiC & Si Sensor Interfaces Power products has enabled us to become a one-stop shop for Gate Logic our customers and the Amplifier / Comparators Driver source for the most Image optimized solutions” Depth Sensors Controller
Slide 12: Power of the Portfolio Driving onsemi Growth
Power of the Portfolio Driving onsemi Growth Energy Infrastructure Electric Vehicles $7.8B $15.5B 16% CAGR 25% CAGR Charging $43B TAM Advanced Safety $1.1B growing at $5.6B 26% CAGR ~16% CAGR 15% CAGR Factory Automation 5G Cloud Power $9.1B $3.7B 8% CAGR 8.8% CAGR Notes: Based on current market proj
Slide 13: Enabling a Sustainable Ecosystem
Enabling a Sustainable Ecosystem Premium Business in Intelligent Power and Sensing INTELLIGENT POWER SOLUTIONS enabling customers to exceed range targets with lower weight, and reduce system cost through unparalleled efficiency Silicon Carbide Silicon Power – IGBT, FET Power ICs Revenue growing 2x
Slide 14: The onsemi Advantage: Intelligent Power
The onsemi Advantage: Intelligent Power SUPPLY SCALE Vertically integrated end-to-end capabilities A multi-decade history in Auto Volume substrates, epitaxy, wafering & and Industrial markets device fabrication High-quality, high-volume Best-in-class integrated modules and manufacturing di
Slide 15: onsemi's SiC Leadership
Expect to Fastest Growing Attractive Grow at 2X End-to-End SiC Business Financial the Market Supply Chain in the Industry Profile in 2024 2023 Growth Share gains and From boules The best financial of 4x Y/Y to ramp of new to modules performance in the >$800m platforms industry … onsemi’s SiC Leaders
Slide 16: The onsemi Advantage: Intelligent Sensing
The onsemi Advantage: Intelligent Sensing Installed base of Superior Auto & Industrial >450M automotive High Dynamic Range Technology Focus sensors Industry-leading 8 megapixel Enabling Factory Automation onsemi’s Image Sensor Devware 45+ years of Ref Designs Solution Decades sustained
Slide 17: onsemi. Everywhere in Automotive Today.
onsemi. Everywhere in Automotive Today. Silicon Carbide Silicon Power Power ICs Sensor Interfaces Image Sensors Other ~500 onsemi products in production vehicles today 17 Public Information © onsemi 2024
Slide 18: onsemi. Driving Innovation in Industrial
onsemi. Driving Innovation in Industrial onsemi delivers solutions that create the infrastructure needed to generate, store and deploy sustainable industrial energy Medical across a network • Propelling the sustainable energy evolution Energy in the industrial market with our intelligent Infrastruct
Slide 19: Highly Diversified Customer Base
Highly Diversified Customer Base Customer Needs: onsemi Delivers: Top 20 customers Best-in-Class Performance Industry-leading products represent ~40% of revenue and each buy ~600 products on average Reliable suppliers at scale Vertically integrated supply chain Tighter supplier base Broa
Slide 20: onsemi's Path to Net Zero by 2040
onsemi’s Path to Net Zero by 2040 SBTi Commitment Letter Signed in December 2022 Greenhouse Gas Emissions Targets anticipated to Near-term targets to be include Scope 1, 2 & 3 SBTi-validated in 2024 Progress towards Greenhouse Gas Targets* 11% YoY reduction of Scope 20% YoY reduction of Scope 3 1 &
Slide 21: Accelerating the Financial Model
Accelerating the Financial Model 2023 2027 Actual Target Revenue $8.25B 10-12% CAGR • Grow at ~3x the semiconductor industry • Mix shift, new products & SiC ramp at accretive margins Gross Margin 47.1% 53% • Optimize cost through Fab Right Operating • Invest in R&D for long-term growth 14.8% 13% • D
Slide 22: Appendix
Financial & Business Update About onsemi Sustainable Ecosystem Appendix 22 Public Public Information Information © © onsemi onsemi 2024 2024
Slide 23: Non-GAAP Financial Performance
Non-GAAP Financial Performance 2022 2023 Q1’24 Q2’24 2027 Actual Actual Actual Guide Target 10-12% • Automotive revenue of $1.0 billion, Revenue 1,680 to 8,326.2 8,253.0 1,862.7 CAGR up 3% Y/Y ($ millions) 1,780 • Q1’24 gross margin above the 44.2% to Gross Margin 49.2% 47.1% 45.9% 53% midpoint of g
Slide 24: Q2'24 Guidance
Q2’24 Guidance GAAP Special Items** Non GAAP*** Revenue $1,680 to $1,780 million - $1,680 to $1,780 million Gross Margin 44.1% to 46.1% 0.1% 44.2% to 46.2% Operating Expenses $327 to $342 million $14 million $313 to $328 million Other Income and Expense (including interest), ($12 million) - ($12 mil
Slide 25: Notes to Q2'24 Guidance
Notes to Q2’24 Guidance * Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible senior subordinated notes, and the repurchase or the issuance of stock or convertible notes or the sale of tre
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Millions) FY2022 FY2023 Q1'24 Reconciliation of GAAP to Non-GAAP Gross Margin: GAAP Gross Margin 49.0% 47.1% 45.8% a) Impact of business wind down 0.2% 0.0% 0.0% b) Amortization of acquisition-related intangible assets 0.1% 0.1% 0.1% Non-GAAP Gross Margin 49.2%
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation ($ in Millions, except share count and EPS) FY2022 FY2023 Q1'24 Reconciliation of GAAP to Non-GAAP Net Income Attributable to ON Semiconductor Corporation: GAAP net income attributable to ON Semiconductor Corporation $1,902.2 $2,183.7 $453.0 a) Amortization of acquisi
Slide 28: Notes & Sources
Notes & Sources Sustainable Ecosystem ‘22-’27 TAM CAGRs (Slide 12) • onsemi estimates based on current market projections • LMC Automotive: Global Hybrid & Electric Vehicle Forecast -Quarter 4, 2022 • Omdia: Power IC Market Tracker, Sep’22 • $43B TAM for sustainable ecosystem for onsemi estimates ba
Slide 29: Follow Us @onsemi
Follow Us @onsemi www.onsemi.com