Silicon Laboratories, Inc. · NASDAQ:SLAB
Silicon Laboratories — Merger or Acquisition (April 2021)
22 slides from Silicon Laboratories's merger presentation, Apr 22, 2021
Slide 1: The measure of intelligence is the ability to change
The measure of intelligence is the ability to change. ALBERT EINSTEIN
Slide 2: Divestiture of Infrastructure & Automotive
Divestiture of Infrastructure & Automotive Simplify and Focus to Accelerate IoT Market Leadership and Growth 22 April 2021
Slide 3: Transaction Summary
Transaction Summary Overview Divested Asset: Silicon Labs (NASDAQ: SLAB) Infrastructure & Automotive (“I&A”) business unit Acquiror: Skyworks Solutions, Inc. (NASDAQ: SWKS) Transaction Structure: Asset sale Revenue & Employees: ~$375M of CY20 revenue and approximately 350+ employees Consideration &
Slide 4: Why Divest I&A Now?
Why Divest I&A Now? Separating, Simplifying and Scaling for the Future Deal Logic • Internet of Things (IoT) and Infrastructure and Automotive (I&A) businesses are different – unique markets, customers, supply chains, R&D, selling motion and corporate organization • By divesting I&A to Skyworks, eac
Slide 5: Pure-Play Leader of Intelligent Wireless Connectivity
Pure-Play Leader of Intelligent Wireless Connectivity Large, diverse, growing IoT opportunity Capitalizing on increased wireless adoption and predicted connected devices growth Unmatched wireless portfolio, hardware & software platform “Works with” industry’s widest range of protocols, ecosystems fo
Slide 6: Focused on the Large, Diverse, Growing IoT Opportunity
Focused on the Large, Diverse, Growing IoT Opportunity Today Next Decade+ Mobile Handsets 1.2 Personal Computers 0.3 IoT Connected Devices >6 IoT Connected Devices >50 10+ wireless protocols 10’s of Billions of Connected Devices Devices Per Person + MORE Cellular 6 SILICON LABS CONFIDENTIAL
Slide 7: Focused on the Large, Diverse, Growing IoT Opportunity
Focused on the Large, Diverse, Growing IoT Opportunity ▪ Intelligent Wireless Connectivity driving growth ▪ Leading solutions in target markets ▪ Well positioned to capture share 7 SILICON LABS CONFIDENTIAL 2023e $26B TAM $10B SAM Source: ABI, OMDIA, and Silicon Labs estimates
Slide 8: Diversity of IoT Business is Key to Our Success
AMER APAC EMEA Diversity of IoT Business is Key to Our Success GEOGRAPHIES APPLICATIONS % of 2020 Revenue TECHNOLOGIES CUSTOMERS Sensor 8 SILICON LABS CONFIDENTIAL LONG TAIL
Slide 9: Leader in IoT Wireless Connectivity
Leader IoT Wireless Connectivity 2015 BT Smart Modules 2012 Software ZigBee SoC 2015 ZigBee/Thread Modules 2017 Device Management 2013 Low-power 32-bit MCUs 2016 Software RTOS 2018 Smart Home Protocol 2020 Ultra Low Power Wi-Fi Growing Revenue Based on IoT 1st To Market with Multiprotocol, BLE Mesh,
Slide 10: Our Hardware and Software Platform for the IoT
Our Hardware and Software Platform for the IoT Smartphones Wireless Software Stacks / Advanced Tools Sense / Control Compute / Memory Connect Security Power Management Modern Development Suite Cloud IoT Wireless SoCs, Modules, Prototyping Kits 10
Slide 11: Ecosystem Leader Defining the Future of IoT
Ecosystem Leader Defining the Future of IoT 11 SILICON LABS CONFIDENTIAL + MORE
Slide 12: Silicon Labs' Wireless Portfolio is Unmatched in Breadth and Depth
Silicon Labs’ Wireless Portfolio is Unmatched in Breadth and Depth 100’s of Partners 1,000’s of Applications 10,000’s of Customers Ecosystems Applications Protocols Developers Support Partners Design Partners Channel Partners Technology Partners
Slide 13: Proven Track Record of Sustainable Growth
$9.5 CY15 CY18 Current CY15 CY18 CY21 Target Proven Track Record of Sustainable Growth Pipeline data as of January 1 of each year. Current pipeline as of April 3, 2021. $249 $456 $640 – $660 CY15 CY18 CY21E ~18% CAGR ~27% CAGR ~23% CAGR Revenue $M Opportunity Pipeline $B Design-Win Life-Time Revenue
Slide 14: Consistent Outperformance of the Market
Consistent Outperformance of the Market 14 -15% -10% -5% 0% 5% 10% 15% 20% 25% 30% 2016 2017 2018 2019 2020 2021 Silicon Labs IoT Revenue Growth vs WSTS SILICON LABS CONFIDENTIAL Source: WSTS, Public Silicon Labs – IoT. WSTS – Short-range wireless + MCU
Slide 15: Focus on Large & Growing Markets
0.8 2.1 4.7 2020 2025E 2030E 2.6 5.0 9.9 2020 2025E 2030E Focus on Large & Growing Markets Source: TAM according to OMDIA IoT Devices Market Tracker (October 2020). 14% CAGR Industrial & Commercial Billions of Wireless IC Units Home & Life Billions of Wireless IC Units 19% CAGR KEY RELATIONSHIPS KEY
Slide 16: Industrial & Commercial
Industrial & Commercial Electric Submetering 15.4, Bluetooth, Wi-Fi, Z-Wave Energy 15.4, Proprietary, Thread, Wi-Fi Loss Prevention 15.4, Wi-Fi Electronic Shelf Labels Proprietary 2.4Ghz Commercial Lighting 15.4, Bluetooth Mesh, Thread Human Machine Interface Bluetooth AoX Smart Lighting 15.4, Wi-Fi
Slide 17: Home & Life
Home & Life Entertainment Bluetooth, 15.4, Wi-Fi, Z-Wave Smart Access 15.4, Bluetooth, Wi-Fi, Z-Wave Security Wi-Fi, Z-Wave Smart Hub 15.4, Bluetooth, Wi-Fi, Z-Wave HVAC Control 15.4, Wi-Fi Smart Switch BLE, Wi-Fi Garage Control Bluetooth, Proprietary, Wi-Fi Portable Medical BLE Smart Lighting Zigbe
Slide 18: We help developers transform industries, grow economies, and improve lives
We help developers transform industries, grow economies, and improve lives. Our products, people, and purpose are addressing some of today’s biggest challenges. Good Corporate Citizen Committed to operational excellence Support for people and communities globally “Do the right thing” for our shareho
Slide 19: Matt Johnson Promoted to President
Matt Johnson Promoted to President SILICON LABS CONFIDENTIAL 19 ▪ Joined company in 2018 as SVP & GM of IoT ▪ Experienced business, engineering and operations leader ▪ Expanded role to include management of day-to- day business operations and product execution ▪ Previous experience at NXP, Freescale
Slide 20: Strong & Sustainable Growth, and Highly Attractive Target Model
Strong & Sustainable Growth, and Highly Attractive Target Model Growth supported by massive pipeline and strong design-win momentum • More than ~$10B in opportunity pipeline today • Design win growth from 2016 – 2020 at a 27% CAGR • Growing revenue faster than end markets • Stable long-term gross ma
Slide 21: Why We Lead the IoT Markets
Why We Lead the IoT Markets and Financial • Large, diverse, growing IoT opportunity • Proven track record of high-quality, sustainable growth Technology • Wireless portfolio with unmatched breadth/depth • Robust IoT hardware & software platform Ecosystem • Ecosystem leader defining future of connect
Slide 22: Forward-looking statements
This presentation contains forward-looking statements based on Silicon Labs’ current expectations. The words "believe," "estimate," "expect," "intend," "anticipate," "plan," "project," "will" and similar phrases as they relate to Silicon Labs are intended to identify such forward-looking statements.
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