Slide 1: MaxLinear Investor Presentation May 2023
MaxLinear Investor Presentation May 2023
Slide 2: Cautionary Note Concerning Forward-Looking Statements
Disclaimer Cautionary Note Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Unless otherwise indicated, all forw
Slide 3: MaxLinear Snapshot
MaxLinear Snapshot Leading Semiconductor Supplier in Broadband, Connectivity, and Infrastructure FOUNDED IN 2003 IPO IN 2010 EMPLOYEES 1,775+ WORLDWIDE IP PORTFOLIO 1,700+ PATENTS REVENUE $1.12B FY22A Non-GAAP EPS* $4.23 FY22A Global Footprint Engineering Centric Competitive Advantage 5Y CAGR 20%+ E
Slide 4: Diversified End-Market Portfolio
Diversified End-Market Portfolio Across the Board Secular and MXL Specific Growth Opportunities BROADBAND CONNECTIVITY INDUSTRIAL / MULTI-MARKET INFRASTRUCTURE Gateway SoC RF Front-End MoCA / Ethernet WiFi Power / Analog Interface PAM4 DSP TRX / MOD
Slide 5: Execute Plan to Deliver Profitable Growth
ADDRESS GROWING MARKETS INCREASE SHARE & CONTENT DRIVE OPERATING LEVERAGE Execute Plan to Deliver Profitable Growth 5 Utilize superior technology to outperform our growing end-markets and deliver strong returns Market Strategy Growth Strategy Financial Strategy
Slide 6: Market Strategy
Market Strategy Target and Address Dynamic Growth Markets
Slide 7: Target Large and Growing End-Markets
*All data based on a combination of industry research reports and management estimates Target Large and Growing End-Markets SAM expansion driven by organic growth and strategic acquisitions SAM GROWTH Broadband Connectivity Infrastructure FY20 $4B SAM $500M $1.8B $1.2B $400M FY24 $8B SAM $2.2B $2.0B
Slide 8: Platform Approach Expands Our SAM
Platform Approach Expands Our SAM Transformation to broadband platform provider is driving higher content opportunity FY19 – Cable Gateway FY22 – Cable Gateway Cable FE / Tuner MoCA Cable FE / Tuner MoCA WiFi GW SoCPower Ethernet SLIC/SLAC Gateway content opportunity increasing by >3x
Slide 9: Product Cycles Drive Opportunity
Product Cycles Drive Opportunity 9 Well positioned to benefit from dynamically changing technology transition Product cycles across our end markets create opportunity for share gains and higher ASPs Wireless Backhaul Wireless Access Optical Ethernet WiFi Fiber Cable mWave 4T4R TRX 200G 2.5G Single P
Slide 10: Secular Trends
Secular Trends Strong macro drivers across all support long-term growth BROADBAND CONNECTIVITY OPTICAL WIRELESS ACCESS Fiber gateway market growing at 7% CAGR through 2030 WiFi access point growth to accelerate above 10% driven by WiFi6 Hyperscale data center traffic increasing by 70% annually 5G tr
Slide 11: Expanding into New Markets
Expanding into New Markets 11 Leverage existing technologies to ramp new products in new and growing markets RF Analog Mixed-Signal Digital Signal Processing Security Compression Optical $300M 5G Access $400M Storage $200M Power $300M Core Markets - $7B New product introductions have unlocked an inc
Slide 12: Growth Strategy
Growth Strategy Increase Market Share and Content Per Platform
Slide 13: Long-Term Growth Drivers
Long-Term Growth Drivers Product Innovation Drives Opportunity to Grow Content and Market Share FIBER GATEWAY WIFI WIRELESS INFRASTRUCTURE OPTICAL STORAGE
Slide 14: Fiber Gateway
Fiber Gateway Capturing new fiber gateway design wins 2022 2023 2024 20252021 MXL 100 90 80 70 60 50 40 30 20 10 0 Fiber GW Units (mm) Fiber gateway wins in North America to drive initial share gain Current fiber gateway design win pipeline of $300M+ in play Gateway SoC share gains pull through ~$20
Slide 15: WiFi
WiFi Attach rates, share gain, and product cycles will accelerate growth over time G ro w th R at e % Time WiFi 7 Ramp Multi-Band Adoption WiFi 6 / 6e Higher Attach Rates Gateway SoC Design Wins Market Growth
Slide 16: Wireless Infrastructure
Wireless Infrastructure Scaling product offerings across existing applications Wireless Access Wireless Backhaul FY19 FY22 Content opportunity up by >4x Content opportunity up by >3x 4x4 RF Transceiver Baseband SoC 8x8 RF Transceiver Baseband SoCPower Management Ultra-Wband DPD Digital Front End mWa
Slide 17: Optical
Optical Best-in-class technology poised to disrupt hyperscale DC interconnect Keystone is the industry’s first 5nm 800G PAM4 DSP with integrated EML driver Best-in-class power consumption with 12mm² package to enable next-gen optical module form factors New PAM4 DSP offering expands presence across
Slide 18: Storage
Storage New product introductions drive share in growing infrastructure space AlterHD Compression for Hadoop AlterStor Compression for Storage Zlib OpenSSL CryptoAPI 40Gbps to 640Gbps solutions optimized for storage, IPsec and SSL Delivers deflate level 4 compression ratios with 10x lower latency Pl
Slide 19: Financial Strategy
Financial Strategy Drive operating leverage and shareholder returns
Slide 20: Revenue Growth
Revenue Growth 20 Drive sales expansion by at least 2x the semiconductor industry growth rate Industry Growth Rate MXL Target Growth Rate Product Cycles Content Increases New Markets Share Gains Fiber GW WiFi Routers G.hn Ethernet Power Mgmt. BB Gateway 5G Base Station Wireless Backhaul Optical 5G A
Slide 21: Margin Expansion
Margin Expansion 21 Drive operating leverage with higher gross margin and increasing productivity • Grow slower than revenue • Leverage automation • Emphasize productivity gains • Prudent product investments • Technology re-use across markets • Co-invest with strategic customers • Demand value for o
Slide 22: Long-Term Non-GAAP Target Model
Long-Term Non-GAAP Target Model 22 Target model achieves significant operating leverage over time Revenue Growth Rate 2x Market Share/content growth + product cycles Gross Margin 65% Lower product costs + richer mix Operating Expenses 50% of Sales Growth Drive new project ROI + customer NRE Operatin
Slide 23: Appendix
Appendix
Slide 24: 2022 GAAP to Non-GAAP Reconciliation
2022 GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Year Ended December 31, 2022 GAAP gross profit $ 649,769 Stock-based compensation 735 Performance based equity 569 Amortization of purchased intangible assets 39,288 Non-GAAP g
Slide 25: 2022 GAAP to Non-GAAP Reconciliation
2022 GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Year Ended December 31, 2022 GAAP impairment losses 2,811 Impairment losses (2,811) Non-GAAP impairment losses — GAAP restructuring expenses 2,265 Restructuring charges (2,265)
Slide 26: 2022 GAAP to Non-GAAP Reconciliation
2022 GAAP to Non-GAAP Reconciliation UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS (in thousands, except per share data) Year Ended December 31, 2022 GAAP income before income taxes $ 174,198 Total non-GAAP adjustments before income taxes 189,818 Non-GAAP income before income taxes 364,016 GAAP i
Slide 27: MaxLinear - Thank you
MAXLINEAR Thank you