Qualcomm Incorporated · NASDAQ:QCOM
Qualcomm — Merger or Acquisition (October 2016)
13 slides from Qualcomm's merger presentation, Oct 27, 2016
Slide 1: Qualcomm to Acquire NXP
Qualcomm to Acquire NXP Creates Semiconductor Engine for the Connected World October 27, 2016
Slide 2: Additional information and forward-looking statements
Additional information and forward-looking statements Additional Information and Where to Find It The tender offer described herein has not yet commenced. This document is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell any common shares o
Slide 3: Creates semiconductor engine for the connected world
Creates semiconductor engine for the connected world TECHNOLOGY LEADERSHIP, COMBINED REVENUE INTEGRATION AND SCALE TO WIN OF $30+ BILLION IN THE CONNECTED WORLD SIGNIFICANTLY EXPANDS SUBSTANTIAL SYNERGY FOOTPRINT IN AUTO, IOT OPPORTUNITIES: $500 MILLION AND SECURITY COMPLEMENTARY TECHNOLOGY, HIGHLY
Slide 4: Our long-term vision
Our long-term vision Transforming our world through intelligent connected platforms LAST 30 YEARS: NEXT 30 YEARS: Interconnecting People Interconnecting Their Worlds BUILDING ON MOBILE TECHNOLOGY LEADERSHIP IN: SoC Connectivity 4
Slide 5: Executing strategy to extend our core technology to new opportunities
Executing strategy to extend our core technology to new opportunities Successfully built a foundation for profitable growth NXP ACCELERATES STRATEGIC INITIATIVES DELIVERED RESULTS STRATEGY Invest to expand technology Refreshed QCT roadmap EXTENDS TECHNOLOGY roadmap and lead in 5G First 5G modem LEAD
Slide 6: Qualcomm + NXP: A global leader in integrated semiconductor solutions
Qualcomm + NXP: A global leader in integrated semiconductor solutions QUALCOMM NXP QUALCOMM + NXP ANNUAL REVENUE (1 ) $25B + $10B = $35B Leading Leading mobile World-class sales CUSTOMERS channel + auto, IoT & security = channels channels EXPECTED SAM (2 ) BY 2020 $100B + $38B = $138B Leading SoC te
Slide 7: Leadership, integration and scale to win in the connected world
Leadership, integration and scale to win in the connected world QUALCOMM NXP QUALCOMM + NXP MOBILE Leading position in Well positioned to lead in Smartphone SoCs and the nascent NFC/eSE A LEADER 3G/4G modems; Mobile SoC, Connectivity and Security technology solutions accelerating 5G adoption Leading
Slide 8: Revenue extension beyond mobile
Revenue extension beyond mobile Expands position in strategically important opportunities Auto, IoT and Other $10.2B Auto, IoT and Other $1.9B 29% 8% Licensing $7.9B 31% 23% 48% 61% Licensing $7.9B Mobile Mobile Products Products $15.5B $16.9B QUALCOMM (1) QUALCOMM (1) + NXP (2) ~$25B Revenue ~$35B
Slide 9: Transaction overview
Transaction overview TRANSACTION § $110 in cash per share; $47B enterprise value CONSIDERATION § To be financed through cash on hand and $11B in new debt § Anticipate $500M annualized cost synergies within 2 years of close FINANCIAL IMPACT § Expected to be significantly accretive to non-GAAP EPS imm
Slide 10: Cost synergies
Cost synergies Expect total annualized synergies of $500 million EXPECTED SYNERGIES ARE INCREMENTAL TO STANDALONE COST SAVING INITIATIVES TOTAL $500M cost saving opportunity EXPECTED COST SYNERGIES ~35% ~65% $1.4B spending reduction under COGS OPEX Strategic Realignment Plan 100% run-rate savings to
Slide 11: Financial strength and capital returns
Financial strength and capital returns BALANCE SHEET RETURN OF CAPITAL TRANSACTION EFFICIENCIES DIVIDEND Tax efficient use of offshore cash; Committed to current dividend significantly improves ROIC and continued dividend growth ACQUISITION FINANCING SHARE REPURCHASES Ability to rapidly deleverage;
Slide 12: Creates semiconductor engine for the connected world
Creates semiconductor engine for the connected world TECHNOLOGY LEADERSHIP, COMBINED REVENUE INTEGRATION AND SCALE TO WIN OF $30+ BILLION IN THE CONNECTED WORLD SIGNIFICANTLY EXPANDS SUBSTANTIAL SYNERGY FOOTPRINT IN AUTO, IOT OPPORTUNITIES: $500 MILLION AND SECURITY COMPLEMENTARY TECHNOLOGY, HIGHLY
Slide 13: Thank you
Thank you Follow us on: For more information, visit us at: www.qualcomm.com & www.qualcomm.com/blog Nothing in these materials is an offer to sell any of the components or devices referenced herein. ©2016 Qualcomm Incorporated and/or its subsidiaries. All Rights Reserved. Qualcomm is a trademark of