Analog Devices, Inc. · NASDAQ:ADI
Analog Devices — Raymond James Conference 2019
15 slides from Analog Devices's conference presentation, March 2019
Slide 1: Analog Devices, Inc. Company Presentation
Analog Devices, Inc. Company Presentation Raymond James Conference, March 2019 PRASHANTH MAHENDRA-RAJAH, CFO ©2019 Analog Devices, Inc. All rights reserved.
Slide 2: Forward Looking Statements GAAP Reconciliations
Forward Looking Statements GAAP Reconciliations This presentation contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding expected financial goals and results, expected product development and technical advances, anticipated market tr
Slide 3: Industry Overview: What Exactly Is a Semiconductor?
Industry Overview: What Exactly Is a Semiconductor? Conductor Industrial Discrete Components Semiconductor Communications Integrated Circuits or ICs or Chips Automotive Consumer Healthcare Insulator 3
Slide 4: ADI Powerfully Bridges the Physical and Digital Worlds
ADI Powerfully Bridges the Physical and Digital Worlds Physical World Digital World Power Power Sensors Signal Chains Connectivity 4
Slide 5: ADI at a Glance
ADI at a Glance Founded 1965 Corporate Headquarters located in Norwood, MA Market Cap ~$40B FY18 Revenue >$6 billion FY18 R&D >$1 billion FY18 FCF >$2 billion (35% margin) Customers ~125,000 Principal locations Other locations Employees ~16,000 Products ~45,000 SKUs Top 20 Sustainable Company** Pate
Slide 6: We Are a Top Tier Firm in a Top Tier Industry
We Are a Top Tier Firm in a Top Tier Industry 5 Year Sales and EPS CAGR* Operating and FCF Margins* 42% 22% 35% 19% 19% 16% 28% 22% 9% 17% 5% 10% ADI Philadelphia Semi Index S&P 500 Index ADI Philadelphia Semi Index S&P 500 Index Revenue EPS Operating Margin FCF Margin Top 5% of S&P 500 Companies AD
Slide 7: Analog Revenues Are Incredibly Sticky and Diverse
Analog Revenues Are Incredibly Sticky and Diverse Over a Third of Our Revenue Is Generated from Products Released Over a Decade Ago 2018 2015 to 2017 2012 to 2014 Revenue 2009 to 2011 2006 to 2008 2003 to 2005 2000 to 2002 Pre-2000 FY13 FY14 FY15 FY16 FY17 FY18 7 Includes Linear Technology Corporati
Slide 8: End-Market Breakdown
End-Market Breakdown Consumer Portable Devices Prosumer Audio/Video Industrial Aerospace and Defense Automotive Energy Autonomous Transport and Safety Factory Automation Cabin Electronics Healthcare Powertrain $6B+ Instrumentation Sensing 2018 Revenue Communications Wireless Wireline/Optical Network
Slide 9: B2B Markets: Several Secular Growth Opportunities
B2B Markets: Several Secular Growth Opportunities Automotive Industrial Vehicle Autonomous Electrification Driving Communications $6B+ Industry 4.0 Smart Health 2018 Revenue Data Next-Gen Center Wireless 9 Source: 2018 10-K.
Slide 10: Long-Term Financial Model
Long-Term Financial Model Long-Term Model Upside from stronger GDP, LTC revenue Sales Growth Mid-single digit synergies Gross Margin 70%+ Industry-leading gross margins Operating Margin 39% to 45% Operating expenses to lag revenue growth EPS and free cash flow grow > revenue EPS/FCF Growth 8% to 12%
Slide 11: ADI Has Delivered Superior Returns with Less Volatility
ADI Has Delivered Superior Returns with Less Volatility Compounded Annualized Stock Outperformance with Less Return Since SOX Inception Volatility 37% 15% 27% 11% 10% 9% 22% 4% ADI SOX NASDAQ S&P 500 ADI Average SOX Component Volatility 1 Year Return Source: Bloomberg and Analog Devices Source: Bloo
Slide 12: Q&A
ANALOG DEVICES AHEAD OF WHAT'S POSSIBLE™ Q&A
Slide 13: Appendix
ANALOG DEVICES AHEAD OF WHAT'S POSSIBLE™ Appendix
Slide 14: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation Fiscal 2018 Fiscal 2018 GAAP Revenue $6,200,942 GAAP Revenue $6,200,942 GAAP Gross Margin $4,233,302 Net Cash Provided by Operating Activities $2,442,361 GAAP Operating Expenses $2,351,567 % of Revenue 39% GAAP Operating Income $1,881,735 Capital Expenditures $254,876
Slide 15: GAAP to non-GAAP Reconciliation
GAAP to non-GAAP Reconciliation FY 13 FY 18 GAAP Diluted EPS $2.14 GAAP Diluted EPS $3.97 Impact of Loss on Extinguishment of Debt $0.02 Acquisition-Related Expenses $1.76 Impact of Gain on Sale of Product Line $ (0.19) Acquisition-Related Transaction Costs $0.06 Restructuring Related Expense $0.08