Macom Technology Solutions Holdings, Inc. · NASDAQ:MTSI

Macom Technology Solutions — Investor Presentation (April 2022)

21 slides from Macom Technology Solutions's investor presentation, Apr 28, 2022

1. Slide 1: Partners from RF to Light

   April 28, 2022 Partners from RF to Light

2. Slide 2: Forward-Looking Statement Safe Harbor and Use of Non-GAAP Financial Measures

   Forward-Looking Statement Safe Harbor and Use of Non-GAAP Financial Measures This presentation contains forward-looking statements based on MACOM management’s beliefs and assumptions and on information currently available to our management. These forward-looking statements include, among others, sta

3. Slide 3: Company Snapshot

   Company Snapshot Leading Supplier of Semiconductor Solutions ■ Headquartered in Lowell, ■ Domestic fab and foundry ■ Focused on complex Massachusetts services applications across the RF and ■ 70 years of RF & ■ Global, multi-channel sales lightwave frequency spectrum Microwave history strategy ■ Bro

4. Slide 4: Corporate Structure Focused on Engineering Leadership

   Corporate Structure Focused on Engineering Leadership President & CEO SVP & Chief Financial Officer Stephen Daly Jack Kober Advanced Technology Operations Sales & Corporate Marketing Legal & Human Resources Dr. Douglas Carlson Robert Dennehy Thomas Hwang Ambra Roth SVP, Technology SVP, Operations SV

5. Slide 5: Large & Diverse End Markets

   Large & Diverse End Markets Industrial & Defense Data Center Telecom SAM $2 Billion* SAM $1 Billion* SAM $2 Billion*  Diodes  RF Power  Lightwave  MLH  Diodes  RF Power  MMIC  Lightwave  HPA  Connectivity  MMIC  Lightwave  HPA  Connectivity RF and Microwave components and sub- Optical

6. Slide 6: Core Competencies

   Core Competencies Wafer Material Integrated Broad IP and Processing, Science Circuit Design Product Packaging & Portfolio Test Datacenter A Leader in the Engineering and Manufacturing of High-Performance Analog and Mixed-Signal ICs 6

7. Slide 7: Material Science

   Material Science MACOM Used Semiconductor Process Technologies Packaging Material Science  Aluminum Gallium Arsenide  Indium Phosphide (InP)  Alumina (Al2O3) (AlGaAs)  Silicon Bipolar (BJT)  Aluminum Nitride (AlN)  Gallium Arsenide (GaAs)  Silicon CMOS  Beryllium Oxide (BeO)  GaN on Silicon

8. Slide 8: Integrated Circuit & Process Design

   Integrated Circuit & Process Design COMPLEXITY Crosspoint Switches Silicon Photonics Multifunction MMICs Amplifiers Lasers Switches 8 Diodes INTEGRATION

9. Slide 9: Wafer Processing, Package and Test

   Wafer Processing, Package and Test ■ Wafer Processing ■ Specialized Screening ■ Hi-Rel Capabilities ■ Automated Assembly ■ Wafer Inspection & Handling ■ Automated Test ■ Packaging Differentiated Capabilities for Specialized High-Performance Applications 9

10. Slide 10: Broad IP and Product Portfolio Serving a Broad Frequency Spectrum

    Broad IP and Product Portfolio Wireless WiMAX, Satellite Millimeter Communication Scientific Lasers for Lasers for Blue and Data, WLAN, Microwave Payload Wave Tracking and Imaging and Mobile Silicon Green Communications Toll Tags Cellular Access Radio Links Communications Radio Links Jamming Measure

11. Slide 11: Financials

    Financials MACOM. Partners from RF to Light

12. Slide 12: Revenue and Non-GAAP EPS Performance

    Revenue and Non-GAAP EPS Performance Revenue Non-GAAP Earnings Per Share* $750 $2.50 $699 $2.32 $2.15 $607 $600 $570 $1.90 $530 $500 $450 $1.30 $ Millions $0.98 $300 $0.70 $0.42 $150 Datacenter $0.10 $- $(0.50) $(0.29) FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 12 * Please see appendix for a

13. Slide 13: Profitability (Non-GAAP)

    Profitability (Non-GAAP) Non-GAAP Gross Margin* Non-GAAP Operating Margin* 65% 35% 59.6% 58.1% 28.1% 57% 55.0% 28% 25.8% 53.5% 50.6% 49% 21% 18.1% 41% 14% 10.0% 33% 7% 2.2% 25% 0% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 13 * Please see appendix for a reconciliation between non-GAAP measure

14. Slide 14: Recent Financial Performance

    Recent Financial Performance Revenue Non-GAAP Gross Margin* Non-GAAP Operating Margin* $170 64% 34% $165 61.7% 61.4% 61.1% 30.8% $160 60.3% 30.2% 30.7% $160 60% 59.2% 30% $155 28.7% $153 27.8% $151 $ Millions $150 56% 26% $140 52% 22% $130 48% 18% FQ2'21 FQ3'21 FQ4'21 FQ1'22 FQ2'22 FQ2'21 FQ3'21 FQ4

15. Slide 15: Key Balance Sheet Metrics

    Key Balance Sheet Metrics $ in Millions, Unaudited April 1, 2022 October 1, 2021 Cash and Short-Term Investments $ 503.0 $ 344.9 Total Current Assets $ 706.4 $ 521.5 Property and Equipment $ 122.4 $ 120.5 Goodwill and Intangibles $ 380.5 $ 398.9 Total Assets $1,286.5 $1,134.1 Total Current Liabiliti

16. Slide 16: Strategy

    Strategy Increase Revenue ■ Expansion of Product Portfolio ■ Address Growing Markets x ■ Bring New Technologies to Market Expand Margins / Improve Free Cash Flow ■ Accretive New Product Introductions ■ Operating Expense Leverage ■ Increased Business Efficiency Improved Balance Sheet Metrics 16

17. Slide 17: Non-GAAP Financial Measures

    Non-GAAP Financial Measures We make references in this presentation to certain financial information calculated on a basis other than in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-

18. Slide 18: Reconciliation of GAAP to Non-GAAP Results

    Reconciliation of GAAP to Non-GAAP Results $ in Millions, Unaudited FY 2021 FY 2020 FY 2019 FY2018 FY2017 Revenue $ 606.9 $ 530.0 $ 499.7 $ 570.4 $ 698.8 Gross Profit – GAAP $ 341.9 $ 270.2 $ 220.7 $ 245.7 $ 326.9 Amortization expense 15.3 17.5 29.9 33.4 30.3 Share-based and non-cash compensation 4.

19. Slide 19: Reconciliation of GAAP to Non-GAAP Results

    Reconciliation of GAAP to Non-GAAP Results $ in Millions, except per share data, Unaudited FY2021 FY2020 FY2019 FY2018 FY2017 Net Income (Loss) – GAAP $ 38.0 $ (46.1) $ (383.8) $ (140.0) $ (169.5) Amortization expense 46.2 50.3 74.7 81.7 65.7 Share-based and non-cash compensation 43.1 41.2 25.7 31.7

20. Slide 20: Reconciliation of GAAP to Non-GAAP Results

    Reconciliation of GAAP to Non-GAAP Results $ in Millions, Unaudited Q2FY22 Q1FY22 Q4FY21 Q3FY21 Q2FY21 Revenue $ 165.1 $ 159.6 $ 155.2 $ 152.6 $ 150.6 Gross Profit – GAAP $ 99.0 $ 94.1 $ 90.2 $ 87.3 $ 84.1 Amortization expense 1.8 2.5 3.8 3.8 3.8 Share-based and non-cash compensation 1.1 1.4 0.9 0.9

21. Slide 21: Partners from RF to Light

    Contact: Stephen Ferranti Vice President, Strategic Initiatives and Investor Relations Phone: (978) 656-2977 Email: stephen.ferranti@macom.com Partners from RF to Light

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