Nxp Semiconductors N.v. · NASDAQ:NXPI
Nxp Semiconductors — Investor Presentation (April 2016)
23 slides from Nxp Semiconductors's investor presentation, April 2016
Slide 1: NXP Semiconductors Investor Presentation | April 2016
NXP Semiconductors Investor Presentation | April 2016
Slide 2: Legal Notice
LEGAL NOTICE This document has been prepared by NXP Semiconductors N.V. (“NXP”) solely for informational purposes. The presentation includes the following slides, the oral presentation of the slides by NXP or any person on its behalf, any question-and-answer session that follows the oral presentatio
Slide 3: Legal Notice (continued)
LEGAL NOTICE (continued) Forward-Looking Statement This presentation includes forward-looking statements which include statements regarding our business strategy, financial condition, results of operations, and market data, as well as any other statements which are not historical facts. By their nat
Slide 4: Focused on Profitable Growth from Smarter World Opportunity
Focused on Profitable Growth from Smarter World Opportunity Our innovative solutions are used in a wide range of applications Connected Car Security Portable Internet of Things and Wearable • Car entertainment • Mobile transactions • Mobile audio • Smart home and buildings • In-vehicle networking •
Slide 5: We Provide Secure Connections for a Smarter World
We Provide Secure Connections for a Smarter World • Enhanced security • Secure bank cards • Mesh connectivity • Car entertainment • Mobile transactions • Sensors • In-vehicle networking • Loyalty- reward • Smart LED lighting • Car access • RFID tags - labels • Gateway & cyber • V2X and Radar • Suppl
Slide 6: NXP Value Proposition
NXP Value Proposition Multiple High Growth Markets + RMS of at Least 1.5x Profitable Growth Operational Excellence + Benchmark Cost Structure Strong Cash Generation Industry Leading Management Team and People Customer-Focused Passion to WIN MAXIMIZE SHAREHOLDER VALUE 6
Slide 7: Growth Driven by High RMS Businesses and Adjacent Markets
Growth Driven by High RMS Businesses and Adjacent Markets Focused on • High growth markets; $6,000 Adjacencies • Deliver unique NXP capabilities; Revenue • Driving operating margin; $4,000 High RMS Business • Optimized capital structure. Core Business $2,000 Broad sustainable leadership as we $- • I
Slide 8: Driving Profitable Growth in Excess of Addressable Market
Driving Profitable Growth in Excess of Addressable Market 1 As Reported Revenue Up 12% 3-yr. CAGR ($B) 1 EBIT Profit up 26% 3-yr. CAGR ($B) $4.4 $4.8 $5.6 $6.1 $0.8 $1.1 $1.4 $1.7 2012 2013 2014 2015 2012 2013 2014 2015 1 1 EPS up 44% 3-yr. CAGR Free Cash Flow up 28% 3-yr. CAGR ($B) $1.88 $3.29 $4.7
Slide 9: Focused on Generating Cash
Focused on Generating Cash 1 1 Cash Interest Expense Declined 14% 3-yr. CAGR ($M) Leverage $266 $179 $139 $172 2.6x 1.9x 1.7x 3.9x 2012 2013 2014 2015 2012 2013 2014 2015 1 Interest Coverage Net Debt ($B) 3.1x 6.3x 10.2x 9.8x $2.9 $2.7 $2.8 $7.6 2012 2013 2014 2015 9 2012 2013 2014 2015 Note: 1. GM,
Slide 10: Recent Quarterly Business Trends
Recent Quarterly Business Trends Revenue ($M) Non-GAAP Gross Margin 1,246 1,349 1,515 1,537 1,467 1,506 1,522 1,606 2,224 49.5% 48.6% 47.9% 46.6% 48.5% 48.7% 49.1% 50.2% 50.0% Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Non-GAAP Operati
Slide 11: Business Segment Revenue and Non-GAAP Margin Trends
Business Segment Revenue and Non-GAAP Margin Trends HPMS Segment Standard Product Segment 56.0% 55.4% 53.3% 54.3% 53.7% 54.0% 54.6% 53.3% 51.1% 33.2% 33.2% 33.6% 34.1% 35.0% 35.1% 35.4% 35.8% 32.5% 912 988 1,139 1,169 1,104 1,146 1,164 1,306 1,911 295 316 333 331 323 322 325 271 274 Q1 14 Q2 14 Q3 1
Slide 12: HPMS Segment Revenue Business Trends
(1) HPMS Segment Revenue Business Trends($M) Secure Identification Solutions Automotive 91% Q-Q 167% Y-Y 805 (6%) Q-Q (5%) Y-Y 422 276 288 288 292 302 310 308 254 267 252 257 269 223 222 225 212 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1
Slide 13: Quarterly Revenue and Operating Income
Quarterly Revenue and Operating Income GAAP Financial Summary Quarterly Segment Revenue ($M): Q1 Q4 Q1 Corporate ($ in millions) Q-Q Y-Y STDP 2016 2015 2015 and Other $274 $39 Product Revenue 2,185 1,577 1,427 608 758 12% 2% All Other 39 29 40 10 (1) Total Revenue 2,224 1,606 1,467 618 757 Gross Pro
Slide 14: Business Segment Performance
Business Segment Performance GAAP Financial Summary HPMS Q1 Q4 Q1 STDP Q1 Q4 Q1 Q-Q Y-Y Q-Q Y-Y ($ in millions) 2016 2015 2015 ($ in millions) 2016 2015 2015 Revenue 1,911 1,306 1,104 605 807 Revenue 274 271 323 3 (49) Gross Profit 510 534 597 (24) (87) Gross Profit 87 90 110 (3) (23) Gross Margin 2
Slide 15: Debt Summary
Debt Summary Sr. Sr. Cash Sr. Sr. Sr. Sr. Revolving Term Term Term Sr. Secured Sr. Secured Unsecured Unsecured Convertible Unsecured Unsecured Unsecured Unsecured Credit Loan E Loan D Loan B Notes Notes Debt Instrument Notes Notes Notes Notes Notes Notes Notes Facility Issue Date 24-Sep-13 04-Mar-14
Slide 16: Working Capital Ratios
Working Capital Ratios (1) DSO DPO 41 43 42 32 34 32 37 37 43 77 80 76 80 90 86 86 71 77 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 DIO(2) Cash Conversion Cycle 102 96 85 83 92 95 95 101 117 66 59 51 35 36 41 46 67 83 Q1 14 Q2 14 Q3 14
Slide 17: Guidance for the Second Quarter of 2016
(1) Guidance for the Second Quarter of 2016 Low Mid High Revenue range is expected to be: Product Revenue $ 2,247 $ 2,297 $ 2,347 Q-Q 3% 5% 7% • Auto is expected to be up in the range of mid to high Other Revenue $ 48 $ 48 $ 48 single digits; Total Revenue $ 2,295 $ 2,345 $ 2,395 • Secure Identifica
Slide 18: Quarterly Financial Reconciliation (GAAP to non-GAAP)
Quarterly Financial Reconciliation (GAAP to non-GAAP) Q1 Q4 Q1 ($ in millions, unless otherwise stated) 2016 2015 2015 Total Revenue 2,224 1,606 1,467 GAAP Gross Profit 597 619 704 Gross profit adjustments (515) (187) (7) Non - GAAP Gross Profit 1,112 806 711 GAAP Gross Margin 26.8% 38.5% 48.0% Non-
Slide 19: Quarterly Cash Flow Overview ($M)
Quarterly Cash Flow Overview ($M) Q1 Q4 Q1 2016 2015 2015 Net cash provided by (used for) operating activities 414 271 368 Net cash provided by (used for) investing activities (106) (77) (183) Net cash provided by (used for) financing activities (441) (1,070) 1 Effects of changes in exchange rates o
Slide 20: Quarterly Adjusted EBITDA ($M)
Quarterly Adjusted EBITDA ($M) Q1 Q4 Q1 2016 2015 2015 Net income (loss) (387) 989 (90) Reconciling items to EBITDA Financial (income) expense 116 174 373 (Benefit) provision for income taxes (199) (148) 15 Depreciation 149 89 58 Amortization 380 141 37 EBITDA 59 1,245 393 Results of equity-accounte
Slide 21: Supplemental Combined Non-GAAP Adjusted Revenue
Supplemental Combined Non-GAAP Adjusted Revenue See Notes 1, 2, 3, 4, 5, 6 2012 2013 2014 2015 Q115 Q215 Q315 Q415 FY Automotive NXP 939 1,019 1,144 302 310 308 422 1,342 Acquired Freescale 1,727 1,805 1,918 493 505 503 318 1,819 Automotive combined 2,666 2,824 3,062 795 815 811 740 3,161 Secure Ide
Slide 22: Notes to Supplemental Combined Non-GAAP Adjusted Revenue
Notes to Supplemental Combined Non-GAAP Adjusted Revenue 1. As a result of the Freescale Semiconductor (“Freescale”) Merger, NXP has included previously reported Freescale product group revenue into its various existing High Performance Mixed Signal (HPMS) and Standard Products (STDP) segments. As o
Slide 23: NXP: Secure Connections for the Smarter World
NXP: Secure Connections for the Smarter World Drive Profitable Drive Earnings Drive Cash Drive Significant Growth Per Share Flow Value for Our Owners 23
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