Slide 1: Semtech to Acquire Sierra Wireless
SEMTECH TO ACQUIRE SIERRA WIRELESS Creating a comprehensive IoT platform to enable the transformation to a smarter, more sustainable planet A U G U S T 2 , 2 0 2 2
Slide 2: Forward-Looking Statements
Forward -Looking Statements This presentation contains “forward -looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended, based on Semtech Corporation’s (the “Company’s”) current expectations, estimates and projection
Slide 3: Transaction Overview
Transaction Overview ï,§ Semtech to acquire Sierra Wireless (Nasdaq: SWIR) in an all-cash transaction Transaction ï,§ Purchase price: US$31 per share Consideration ï,§ Transaction enterprise value: ~US$1.2 billion ï,§ Doubles revenue, accelerates growth, and maintains path to long term operating mod
Slide 4: Semtech to Acquire Sierra Wireless
Semtech to Acquire Sierra Wireless Creating a comprehensive IoT platform to enable the transformation to a smarter, more sustainable planet New Complete 2X Cloud Service ~10X Immediately IoT Portfolio Revenue Revenue IoT SAM Accretive LoRa ®+ $1.5B >$100M $10B To Non- Cellular Annual Recurring By 20
Slide 5: Sierra Wireless
Sierra Wireless BEST IN CLASS CELLULAR IoT SOLUTIONS $473M ï,§ 25 years of cellular IoT expertise 30% 2021 ï,§ 2G ïƒ 5G cellular module & routers shipping to over 200 countries REVENUE ï,§ Device to IoT Cloud management service platform including 70% managed connectivity Productï,§ Strong engineerin
Slide 6: Semtech IoT Vision & Strategy
Semtech IoT Vision & Strategy Creating a comprehensive IoT platform to enable the transformation to a smarter, more sustainable planet Simplify IoT Through a Enable Access to Enable Network Coverage for Total Platform Offering all IoT Markets all IoT use cases Maximize Offering Through Accelerate an
Slide 7: Complementary Technologies For IoT
Complementary Technologies For IoT Power & Bandwidth Ideal Technology Consumption Solution by Use Case High Sierra Wireless ï,§ 2G-5G Modules Routers PC-OEM Auto Cellularï,§ Gateways & Routers ï,§ AirVantage ® Cloud Service Platform Semtech Enterprise Security Public Safety Transit Fleet ï,§ LoRa Cl
Slide 8: Innovative Solutions For an Expanded Market
Innovative Solutions For an Expanded Market ~10x Increase New low power, multi -mode solutions IoT Market Opportunity IoT Cellular Connectivity Services LoRa ® LoRa Cloud ™ Services $10B Platform IoT SAM + Mission Critical IoT Gateways Cellular LoRa + Cellular Modules & = LPWAN Gateways IoT Multi Ra
Slide 9: Greater IoT Scale
Greater IoT Scale $ 1.3B $0.8B 21% Wireless IoT 54% 1 Pro Forma Revenue 1 Semtech LTM Revenue LTM (Semtech + Sierra Wireless) 8 | SEMTECH TO ACQUIRE SIERRA WIRELESS | AUGUST 2, 2022 Source: Company filings and Sierra Wireless filings ¹LTM revenue as of 5/1/2022 for Semtech and 3/31/2022 for Sierra W
Slide 10: Diversified Revenue Base and Attractive End Markets
Diversified Revenue Base and Attractive End Markets Semtech Standalone Pro Forma (Semtech + Sierra Wireless) 16% Industrial 28% 36% 21% High-end consumer End Market 1 62% Infrastructure 36% 21% 28% China 19% EMEA 34% Geographic Americas 2 17% Composition Rest of World 28% 19% 34% Source: Company fil
Slide 11: Doubles Scale and Maintains Path to LT Operating Model
Doubles Scale and Maintains Path to LT Operating Model Margin Drivers ï,§ Grow and accelerate high—(US$ millions) Semtech 1 Pro Forma 1,2 Long Term Target margin Cloud and services Semtech + Sierra Wireless revenue ï,§ LoRa ® penetration of cellular $3B by CY2027 LTM Revenue $773 $1,311 SAM (LoRa +
Slide 12: Semtech with Sierra Wireless
Semtech with Sierra Wireless Creating a comprehensive IoT platform to enable the transformation to a smarter, more sustainable planet Complete & Doubling Cloud Significant Immediately Highly Annual Services IoT SAM Accretive to Diversified IoT Revenue & Momentum Expansion Non-GAAP Portfolio Geograph
Slide 13: semtech.com
SEMT E C H . CO M Visit our website to learn more or follow us on LinkedIn, Twitter and YouTube Semtech, the Semtech logo, and LoRa are registered trademarks or service marks, and LoRa Cloud is trademark or service mark of Semtech Corporation or its affiliates. Copyright © 2022 Semtech Corporation.
Slide 14: Non-GAAP Reconciliation (Semtech)
Non -GAAP Reconciliation (Semtech) Q2 CY21 Q3 CY21 Q4 CY21 Q1 CY22 LTM 5/1/2022 Gross Margin -GAAP 62.4% 63.5% 64.1% 64.4% 63.6% Share-based compensation 0.3% 0.3% 0.4% 0.4% 0.4% Non-GAAP Gross margin 62.7% 63.8% 64.5% 64.8% 64.0% Operating Margin -GAAP 19.8% 19.2% 22.5% 23.3% 21.2% Share-based comp