Analog Devices, Inc. · NASDAQ:ADI
Analog Devices — Shareholder Meeting (February 2024)
18 slides from Analog Devices's shareholder meeting presentation, Feb 29, 2024
Slide 1: ADI Shareholder Presentation Spring 2024
ADI SHAREHOLDER PRESENTATION Spring 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements, which address a variety of subjects including, for example, our statements regarding future financial performance, including expected future adjusted operating margin and other future financial results; anticipated gro
Slide 3: Executive Summary
EXECUTIVE SUMMARY ⦿ We remain confident in the resilience of our business model, financial profile and focused execution ⦿ Our executive compensation program supports our corporate strategy and incentivizes execution across the key objectives embedded in our financial model ⦿ Our CEO’s compensation
Slide 4: We Solve Our Customers' Most Complex Problems
1 WE SOLVE OUR CUSTOMERS’ MOST COMPLEX PROBLEMS HIGHEST DIVERSE CUSTOMER-CENTRIC RESILIENT HYBRID INDUSTRY-LEADING INNOVATIVE PERFORMANCE CUSTOMERS, CULTURE MANUFACTURING & FINANCIAL PROFILE ENTERPRISE WITH RICH PRODUCT PORTFOLIO APPLICATIONS & GO-TO-MARKET GROWTH MARKETS MODEL OPPORTUNITIES • Portf
Slide 5: $12B+ of Revenue Diversified Across Markets & Geographies
1 $12B+ OF REVENUE DIVERSIFIED ACROSS MARKETS & GEOGRAPHIES 1,2 1 REVENUE BY END MARKET REVENUE BY GEOGRAPHY 24% 54% 23% 18% EUROPE, MIDDLE INDUSTRIAL AUTOMOTIVE GREATER CHINA EAST AND AFRICA 13% COMMUNICATIONS 23% 35% REST OF ASIA AMERICAS B2B PACIFIC 10% CONSUMER ~90% 1. Fiscal year 2023. 2.The su
Slide 6: Updates to FY23 CEO Executive Compensation Program
UPDATES TO FY23 CEO EXECUTIVE COMPENSATION PROGRAM The Compensation and Talent Committee enhanced our program design based on shareholder feedback and to align with our corporate strategy CEO Target Compensation Pay Element Pay Vehicle Time Period Performance Measures Base Salary Cash Annual• Fixed
Slide 7: Short-Term Variable Cash Incentive – Metrics and Targets
SHORT-TERM VARIABLE CASH INCENTIVE – METRICS AND TARGETS Transparent metrics are aligned with strategic priorities. Targets are consistent and aligned with long-term ambitions HISTORICAL SHORT-TERM INCENTIVE PERFORMANCE TARGETS BALANCED PERFORMANCE MEASURES Pre LTC Acquisition Post LTC Acquisition P
Slide 8: Short-Term Variable Cash Incentive – Earned Payouts
SHORT-TERM VARIABLE CASH INCENTIVE – EARNED PAYOUTS Short-term incentive payouts reflect challenging targets and consistent pay-for-performance philosophy through business cycles aligned with value creation ⦿ Our business is cyclical and our short-term incentive plan pays accordingly. Payouts are hi
Slide 9: Short-Term Variable Cash Incentive – OPBT Margin Metric
SHORT-TERM VARIABLE CASH INCENTIVE – OPBT MARGIN METRIC Targets are tied to expansion goals for revenue and adjusted operating margins consistent with our long-term financial model ⦿ We are focused on growing our adjusted operating margins -- which are well above industry and peer averages -- and ha
Slide 10: FY23 CEO LTI Award in Focus
FY23 CEO LTI AWARD IN FOCUS Incentivizing growth and aligning compensation with shareholder interests and long-term strategy ⦿ To recognize Mr. Roche’s contributions over his tenure and to incentivize him to continue driving future long-term growth, the Compensation and Talent Committee increased Mr
Slide 11: Shareholder Engagement Program
SHAREHOLDER ENGAGEMENT PROGRAM Our executive compensation program continues to evolve to align with our strategy and reflect shareholder perspectives The Chair of our Compensation We reached out to shareholders We engaged with shareholders and Talent Committee 48% 33% 22% representing representing p
Slide 12: Committed to Corporate Governance Best Practices
COMMITTED TO CORPORATE GOVERNANCE BEST PRACTICES Our Board is committed to effective corporate governance, promoting effective board oversight and ensuring responsiveness to shareholder feedback ⦿ We believe that retaining the default supermajority voting standards under Massachusetts law is in the
Slide 13: Leadership Board Overview
LEADERSHIP BOARD OVERVIEW Highly Qualified and Diverse Board With Ongoing Refreshment Diversity of Director Nominees VINCENT ROCHE EDWARD H. FRANK, Ph.D. MERCEDES JOHNSON Chief Executive Officer and Executive Chair of Gradient Former Chief Financial Chair Technologies Officer of Avago Technologies (
Slide 14: We Request Your Support
WE REQUEST YOUR SUPPORT Below are the Board’s voting recommendations for ballot items at our 2024 Annual Meeting. We request your support thank you for your continued interest in Analog Devices Proposal 1 - Election of Directors – FOR ALL • Our Board recommends a vote FOR each director nominee, who
Slide 15: Appendix
APPENDIX Bie sae Wed 2 : = 2 e e 1 Sees ? e ee Meee) Oe c—2 eo. 8 t P DI oF WHATS @bssiaL™ Say Sey
Slide 16: Appendix – Reconciliation from GAAP to Non-GAAP
APPENDIX – RECONCILIATION FROM GAAP TO NON-GAAP ($ in millions) The sum and/or computation of the individual amounts may not equal the total due to rounding. 1 FY23 FY23 FY23 Q1 24 Q2 24 (Projected) $2,100 Revenue $12,306 Revenue $12,306 Revenue $12,306 Revenue $2,513 Revenue (+/- $100) Net Cash Pro
Slide 17: Appendix – Reconciliation from GAAP to Non-GAAP
APPENDIX – RECONCILIATION FROM GAAP TO NON-GAAP Fiscal year Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 Revenue $ 2,513 $ 2,716 $ 3,076 $ 3,263 $ 3,250 $ 12,014 $ 7,318 $ 5 ,603 $ 5,991 $ 6,225 $ 5,246 $ 3,421 $ 3 ,435 $ 2,865 $ 2,634 GAAP Gross Margin $
Slide 18: Appendix – Unreasonable Effort for Reconciliation of Forward-Looking Estimates
APPENDIX – UNREASONABLE EFFORT FOR RECONCILIATION FROM GAAP TO NON-GAAP FORWARD-LOOKING ESTIMATES This presentation contains forward-looking estimates of non-GAAP measures including adjusted operating margin. We are unable to provide a reconciliation of the above-listed forward-looking estimates of