Nxp Semiconductors N.v. · NASDAQ:NXPI
Nxp Semiconductors — Q4 2024 Earnings Presentation
37 slides from Nxp Semiconductors's earnings presentation, Feb 4, 2025
Slide 1: NXP Investor Presentation Fourth Quarter 2024
NXP Investor Presentation Fourth Quarter 2024 February 2025 | Public | NXP and the NXP logo are trademarks of NXP B.V. All other product or service names are the property of their respective owners. © 2024 NXP B.V.
Slide 2: Forward Looking Statements
Forward Looking Statements This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statement
Slide 3: NXP, A Future of Innovation and Long-term Value Creation
NXP, A Future of Innovation and Long-term Value Creation + + High Single Digit Organic Gross Margin Expansion 100% of Excess FCF Revenue Growth Above 60% to Our Owners S32 SDV Hybrid manufacturing Hybrid manufacturing Intelligent systems at the edge Mix / NPI RMS & system leadership Doubling non-GAA
Slide 4: NXP, A History of Innovation and Value Creation
NXP, A History of Innovation and Value Creation Refining strategic focus & financial discipline Intelligent edge systems Year End $230 Share Price $228 $208 Marvell $159 Connectivity $158 Freescale Assets Acquired Merger $127 $117 $98 $84 $76 $73 Non-GAAP IPO 36.3% 35.1% 34.6% Op. Margin $46 32.9% $
Slide 5: Total Semiconductor Market Macrotrends Drive Waves of Growth $1.3 Trillion
Total Semiconductor Market Macrotrends Drive Waves of Growth $1.3 Trillion Anticipate & Automate On-demand Cloud AI & Analog Intelligent Systems at the Edge 2000 2010 2020 2030E Laptops Smartphones Cloud AI Desktops Tablets Intelligent edge systems Mobiles Data-center servers • Smart connected devic
Slide 6: Auto & Industrial Lead Growth at the Intelligent Edge within a $1.3T Opportunity
Auto & Industrial Lead Growth at the Intelligent Edge within a $1.3T Opportunity Global Semiconductor market value by vertical, $billion Growth contribution 2021-2030E $B ( % of Total) CAGR, % 9% ~ 1,300 ~ 700 300 300 (43%) GenAI 60 80 140 8% 5% 30 (4%) Wired 140 30 (4%) Consumer 100% 10% 600 Indust
Slide 7: NXP Uniquely Positioned to Bring Intelligent Systems to the Edge
NXP Uniquely Positioned to Bring Intelligent Systems to the Edge Industry challenges NXP’s unique capability and response Ecosystem shifts Complete portfolio Deep competence From supply chain to value network Sensing Security leader AI enabled processing Functional safety leader Actuation Automotive
Slide 8: NXP Uniquely Positioned to Bring Intelligent Systems to the Edge
NXP Uniquely Positioned to Bring Intelligent Systems to the Edge Sense SW-defined ADAS vehicle Think Automotive High RMS Electrification Connect core franchises Act Factory Building automation & home Safe & secure Industrial Power Scalable system & IoT Healthcare & energy solutions 8 | NXP | Public
Slide 9: NXP Investment Compass to Focus on Profitable Growth
NXP Investment Compass to Focus on Profitable Growth Investment matrix Augmenting product leadership Focus on RMS leadership at above market growth with system leadership Relative market share (RMS) Sustain Invest Product High leadership for growth Leadership De-prioritize Seed investment System R&D
Slide 10: NXP Revenue Growth in Next 3 Years
NXP Revenue Growth in Next 3 Years 2024 Revenue by Revenue by business type end-market exposure 2024A-2027E CAGR ~$16.0B 6 - 10% $12.6B Accelerated growth ~38% 57% $11.1B 15 - 25% Automotive ~27% 18% Core businesses ~3% 12% Mobile 18% Industrial 13% & IoT Comm Infra 2021 2024 2027E 1. Reconciliation
Slide 11: Analyst Day 2024 Outlook: Accelerating Secular Profitable Revenue Growth
Analyst Day 2024 Outlook: Accelerating Secular Profitable Revenue Growth (1,2,3,4) Automotive Industrial & IoT 8 - 12% CAGR ~$9.5B 8 – 12% CAGR $7.2B ~20% CAGR ~$3.1B $2.3B ~25% CAGR ~3% CAGR ~4% CAGR 2024 2027E 2024 2027E Mobile Comm. Infrastructure 0 - 4% CAGR 0% CAGR ~$1.6B $1.7B $1.7B $1.5B 2024
Slide 12: NXP Semiconductors – At a Glance
NXP Semiconductors – At a Glance (1,2,3) 2024 Geographic Revenue Ship-To by Region 2024 Revenue Ship-To by Channel EMEA, Americas, $2.7B, 22% $1.8B, 14% Distribution, Direct & Other, $7.2B, 57% $5.4B, 43% Asia Pacific ex-China, China, $3.5B, 28% $4.6B, 36% Hybrid Manufacturing - Front-end Sourcing H
Slide 13: Diverse End-Customer Base with High Barriers to Entry
Diverse End-Customer Base with High Barriers to Entry (1) 13 | NXP | Public 1. Reflects 2024 sales on a ship to basis through all channels
Slide 14: Driving Profitable Growth in Excess of Addressable Market
Driving Profitable Growth in Excess of Addressable Market (1,2) As Reported Revenue Non-GAAP Gross Profit / Non-GAAP Gross Margin Up 7% 5-yr. CAGR ($B) Up 9% 5-yr. CAGR ($B) 53.5% 51.1% 56.1% 57.9% 58.5% 58.1% $8.9 $8.6 $11.1 $13.2 $13.3 $12.6 $4.7 $4.4 $6.2 $7.6 $7.8 $7.3 2019 2020 2021 2022 2023 2
Slide 15: Annual Revenue by End Market ($B)
Annual Revenue by End Market ($B) (1) Automotive Industrial & IoT Up 11% 5-yr. CAGR ($B) Up 7% 5-yr. CAGR ($B) $4.2 $3.8 $5.5 $6.9 $7.5 $7.2 $1.6 $1.8 $2.4 $2.7 $2.4 $2.3 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Mobile Communication Infrastructure & Other Up 5% 5-yr. CAGR ($B) Dow
Slide 16: Recent Quarterly Business Trends
Recent Quarterly Business Trends (1,2) As Reported Revenue ($M) Non-GAAP Gross Profit / Non-GAAP Gross Margin (4%) Q-Q (9%) Y-Y 58.7% 58.2% 58.6% 58.2% 57.5% 58.2% 58.4% 3,422 3,126 3,127 3,250 3,111 2,010 1,818 1,833 1,892 1,789 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Non-GAAP O
Slide 17: Quarterly Revenue by End Market ($M)
Quarterly Revenue by End Market ($M) (1) Automotive Industrial & IoT (2%) Q-Q (8%) Q-Q (6%) Y-Y (22%) Y-Y $1,899 $1,804 $1,728 $1,829 $1,790 $662 $574 $616 $563 $516 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Mobile Communication Infrastructure & Other (3%) Q-Q (9%) Q-Q (2%) Y-Y (10
Slide 18: A Robust Shareholder Centric Capital Return Policy
A Robust Shareholder Centric Capital Return Policy (1,2) Capital Return ($B) Capital Return Policy: Increased 25% from 2018 to 2024 (6-yr. CAGR) • Return All Excess non-GAAP FCF 135% 124% • Cumulative Capital Return 2018 – 2024: 122% 114% • $19.5B or 109% of non-GAAP FCF 108% 109% • Capital Return G
Slide 19: Debt Summary at the End of 4Q24
Debt Summary at the End of 4Q24 (1,2) Sr. Sr. Sr. Sr. Sr. Sr. Sr. Sr. Sr. Sr. Sr. Sr. Sr. Sr. EIB - Sr. Revolving Debt Instrument Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Credit Notes Notes N
Slide 20: Working Capital Ratios ($M)
Working Capital Ratios($M) (1,2) DSO DPO 24 26 27 30 30 72 65 64 60 65 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 DIO Cash Conversion Cycle 132 144 148 149 151 84 105 111 119 116 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 DSO = (91.25 x AR) / Revenue DIO = (91.25 x
Slide 21: Financial Model: P&L
Financial Model: P&L Investor Day 2021 2024A Investor Day 2024 NXP Growth +8 to 12% (3 yr. CAGR) 4.5% (3 yr. CAGR) +6 to 10% (3 yr. CAGR) Channel Inventory ~11 wks. 8 wks. ~11 wks. Non-GAAP Gross Margin % 55 to 58% 58.1% 57 to 63% Non-GAAP R&D (% of Rev) ~16% 16.3% ~16% Non-GAAP SG&A (% of Rev) ~7%
Slide 22: Source and Use of Cash Model
Source and Use of Cash Model Investor Day 2021 2024A Investor Day 2024 Non-GAAP Free-cash Flow 25% of Rev 19.5% of Rev (CUM ‘22 to ‘24) > 25% of Rev DSO ~30 30 (4Q24A) ~30 DPO ~75 65 (4Q24A) ~75 DIO ~95 151 (4Q24A) ~110 Capacity Access Fee (VSMC) N/A $275M $800M Net Capex % of Revenue 6 to 8% 6.6% (
Slide 23: Guidance for the First Quarter of 2025
Guidance for the First Quarter of 2025 (1,2,3,4,5) GAAP Reconciliation Non-GAAP Low Mid High Low Mid High Total Revenue 2,725 2,825 2,925 2,725 2,825 2,925 Q-Q -12% -9% -6% -12% -9% -6% Y-Y -13% -10% -6% -13% -10% -6% Gross Profit 1,489 1,559 1,630 (31) 1,520 1,590 1,661 Gross Margin 54.6% 55.2% 55.
Slide 24: NXP Sustainability Mission
NXP Sustainability Mission Strategy Guiding Principles Goals Push boundaries Innovate advancements that Develop higher-performing, and explore new approaches to enable a better, safer, more energy-efficient solutions that develop innovative and secure and more sustainable positively impacts the plan
Slide 25: NXP 2023 Sustainability Progress
NXP 2023 Sustainability Progress Scope 1 Scope 2 Scope 3 Additional Progress: Upstream and Direct sources Indirect sources downstream sources 28% decrease 1% decrease 29% decrease non-GHG electricity PFC emissions emissions consumption from 2022 from 2022 from 2022 2% decrease 57% decrease 24% decre
Slide 26: NXP Sustainability Ratings
NXP Sustainability Ratings BB AA AAA AAA AAA 2020 2021 2022 2023 2024 Low Risk Low Risk Medium Risk Low Risk Low Risk 19.4 19.8 21.6 19.8 16.7 2020 2021 2022 2023 2024 Climate: D Climate: D Climate: D Climate: C Water: D Water: D Water: D Water: B- 2020 2021 2022 2023 C+ C+ C+ B- B- Prime Prime Prim
Slide 27: Annual GAAP Condensed Consolidated Statement of Operations ($M)
Annual GAAP Condensed Consolidated Statement of Operations ($M) (1) ($ in millions, unless otherwise stated) 2019 2020 2021 2022 2023 2024 Revenue 8,877 8,612 11,063 13,205 13,276 12,614 Cost of Revenue 4,259 4,377 4,996 5,688 5,723 5,495 Gross Profit 4,618 4,235 6,067 7,517 7,553 7,119 Research and
Slide 28: Annual GAAP to non-GAAP Reconciliation ($M)
Annual GAAP to non-GAAP Reconciliation ($M) (1) ($ in millions, unless otherwise stated) 2019 2020 2021 2022 2023 2024 GAAP Gross Profit 4,618 4,235 6,067 7,517 7,553 7,119 Gross profit adjustments (131) (165) (138) (126) (209) (213) Non - GAAP Gross Profit 4,880 4,565 6,343 7,769 7,970 7,545 GAAP G
Slide 29: Annual Cash Flow Overview ($M)
Annual Cash Flow Overview ($M) (1) ($ in millions, unless otherwise stated) 2019 2020 2021 2022 2023 2024 Net cash provided by (used for) operating activities 2,373 2,482 3,077 3,895 3,513 2,782 Net cash provided by (used for) investing activities (2,284) (418) (934) (1,249) (1,508) (686) Net cash p
Slide 30: Annual Adjusted EBITDA ($M)
Annual Adjusted EBITDA ($M) (1) ($ in millions, unless otherwise stated) 2019 2020 2021 2022 2023 2024 Net income (loss) 272 80 1,906 2,833 2,822 2,542 Financial (income) expense 350 417 403 434 309 318 (Benefit) provision for income taxes 20 (83) 272 529 523 545 Depreciation 518 547 551 605 652 630
Slide 31: Quarterly GAAP Condensed Consolidated Statement of Operations ($M)
Quarterly GAAP Condensed Consolidated Statement of Operations ($M) (1) ($ in millions, unless otherwise stated) Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Revenue 3,422 3,126 3,127 3,250 3,111 Cost of Revenue (1,485) (1,343) (1,335) (1,384) (1,433) Gross Profit 1,937 1,783 1,792 1,866 1,678 Research an
Slide 32: Quarterly GAAP to non-GAAP Reconciliation ($M)
Quarterly GAAP to non-GAAP Reconciliation ($M) (1) Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 ($ in millions, unless otherwise stated) 2023 2024 2024 2024 2024 2023 2024 2024 2024 2024 GAAP Gross Profit 1,937 1,783 1,792 1,866 1,678 GAAP Net income (loss) attributable to stockholders 697 639 658 718 495 PPA Effe
Slide 33: Quarterly Cash Flow Overview ($M)
Quarterly Cash Flow Overview ($M) (1) Q4 Q1 Q2 Q3 Q4 ($ in millions, unless otherwise stated) 2023 2024 2024 2024 2024 Net cash provided by (used for) operating activities 1,137 851 761 779 391 Net cash provided by (used for) investing activities (629) (274) (239) (371) 198 Net cash provided by (use
Slide 34: Quarterly Adjusted EBITDA ($M)
Quarterly Adjusted EBITDA ($M) (1) Q4 Q1 Q2 Q3 Q4 ($ in millions, unless otherwise stated) 2023 2024 2024 2024 2024 Net income (loss) 703 644 664 729 505 Reconciling items to adjusted net income Financial (income) expense 78 70 75 82 91 (Benefit) provision for income taxes 124 141 154 173 77 Depreci
Slide 35: Notable Product Announcements
Notable Product Announcements New S32J Family of Safe and Secure Ethernet Switches Enables Scalable Vehicle Networks, Extending NXP CoreRide Platform NXP’s Advanced Trimension UWB Portfolio Hits the Road with Audi NXP’s New i.MX 94 Family of Applications Processors Delivers Safe, Secure Connectivity
Slide 36: NXP, A Future of Innovation and Long-term Value Creation
NXP, A Future of Innovation and Long-term Value Creation + + High Single Digit Organic Gross Margin Expansion 100% of Excess FCF Revenue Growth Above 60% to Our Owners S32 SDV Hybrid manufacturing Hybrid manufacturing Intelligent systems at the edge Mix / NPI RMS & system leadership Doubling non-GAA
Slide 37: nxp.com
nxp.com | Public | NXP and the NXP logo are trademarks of NXP B.V. All other product or service names are the property of their respective owners. © 2024 NXP B.V.