Qorvo, Inc. · NASDAQ:QRVO
Qorvo — Investor Day (June 2024)
95 slides from Qorvo's investor day presentation, Jun 11, 2024
Slide 1: Investor Day June 11, 2024
Exhibit 99.1 Investor Day June 11, 2024
Slide 2: Doug DeLieto, Vice President, Investor Relations
Doug DeLieto Vice President, Investor Relations 2
Slide 3: Safe Harbor
Safe Harbor Forward-looking statements This presentation includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objecti
Slide 4: Agenda
Agenda Bob Bruggeworth Strategic Overview 8:30 am President and CEO David Fullwood Customer & Market Segments 8:45 am SVP, Sales and Marketing Frank Stewart Advanced Cellular 9:05 am President of Advanced Cellular Break 9:25 am Philip Chesley High Performance Analog 9:45 am President of High Perform
Slide 5: Bob Bruggeworth, President and CEO
Bob Bruggeworth President and CEO 5
Slide 6: We Are Qorvo
We Are Qorvo Mission: Improve lives by creating a more connected, safe and sustainable planet R&D/Sales Manufacturing/Test 2 224,000 ft 43% $3.8 Billion 6,100 2,313 GHG emission Fab and test clean room FY24 Revenue Global Employees space. Category 1A Trusted Active Patents reduction, FY20- FY24 Foun
Slide 7: Strong Financial Position
Strong Financial Position Progress as Qorvo Consistently returning Revenue and EPS growth Expanding opportunity and cash to shareholders since our merger free cash flow 52.4M ~$30B FY16 Rev: $2.6B Net Shares Increased FY24 Rev: $3.8B Repurchased TAM Opportunity 35% FY16 EPS: $4.38 ~$5.9B Net Shares
Slide 8: Compelling Strategic Positioning
Compelling Strategic Positioning Serving attractive markets 01 underpinned by secular trends, technology transitions and multiyear upgrade cycles Trusted partner with broad market reach 02 across customers, suppliers and global ecosystems Competing and winning 03 where customers value performance, t
Slide 9: Complementary Businesses
Complementary Businesses Businesses aligned with markets and supported by core competitive strengths Advanced Cellular Group High Performance Analog Connectivity & Sensors Group Automotive Automotive Consumer Consumer Consumer Mobile Defense & Aerospace Industrial & Enterprise Industrial & Enterpris
Slide 10: Premier Technology Portfolio
Premier Technology Portfolio Core Competitive Manufacturing Scale & Expertise Strengths Leveraged Across Markets Systems-Level Expertise Trusted Supplier with Broad Market Reach © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 10
Slide 11: Premier Technology Portfolio
Premier Technology Portfolio Thriving at the intersection of process, device, component and packaging Manufacturing Technologies Expertise, scale, quality and reliability Component/Device Engineering Power, performance and size Best-in-class Products Efficiency, throughput and form factor © 2024 Qor
Slide 12: Manufacturing Strategy
Manufacturing Strategy Footprint supports long-term growth while reducing capital intensity Footprint priorities: Generate more Qorvo’s manufacturing strengths are highly differentiated and difficult to replicate revenue leveraging others’ capital Invest in internal manufacturing where it On-shore S
Slide 13: Systems-Level Expertise
Systems-Level Expertise Enabling better performing, smaller, lower power solutions Delivering Systems-Level Solutions Supported by: Addressing advanced integration trends Deep knowledge of customer specifications and architectures Accelerating customer device speed to market Expanding portfolio of p
Slide 14: How Qorvo Wins
How Qorvo Wins Differentiating across key parameters Customer requirements are consistent across markets: • Performance enhancements • Power savings • Size reduction Size Power Performance © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 14
Slide 15: Trusted Supplier with Broad Market Reach
Trusted Supplier with Broad Market Reach Decades of trust built by technology leadership and award-winning support US Department of Defense Category 1A Trusted Foundry* © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information *US Department of Defense (DoD) Defense Microelectronics Activ
Slide 16: Multiyear Tailwinds: Global Megatrends
•What are your goals for this event? What do you want to make sure investors understand at the conclusion of this event? Multiyear Tailwinds Global Megatrends Connectivity Mobility Sustainability Electrification AI/Datafication AESA Indoor Non-Terrestrial Force sensors, enhanced Ultra- upgrades/retr
Slide 17: Growth and Diversification Strategy
Growth and Diversification Strategy Well positioned to accelerate growth across business segments CSG HPA CSG HPA Post-correction Growth in ACG Growth in HPA Growth in CSG Investments in Defense & Automotive ACG largest customer Aerospace and Connectivity, and ACG platforms Power Management Matter &
Slide 18: Today's Speakers
Today’s Speakers Frank Stewart Bob Bruggeworth David Fullwood President of President and CEO SVP, Sales and Marketing Advanced Cellular 41 Industry Years 25 Industry Years 28 Industry Years Philip Chesley Eric Creviston Grant Brown President of High President of SVP and CFO Performance Analog Connec
Slide 19: David Fullwood, SVP, Sales and Marketing
David Fullwood SVP, Sales and Marketing 19
Slide 20: Diversifying Customer Base
Diversifying Customer Base Targeted approach to expanding market and customer reach Growing Strategic Accounts 25 customers Expand business into new Strategic $23B SAM product categories Customers Build new strategic accounts in more markets Broadening Customer Base 250 customers Focus Customers $8B
Slide 21: Expanding Mobile Footprint
Integrated PADs Ultra-Wideband Enable secure access, indoor Broadest RF portfolio across navigation, locate my devices, all ecosystems contextual user interface Expanding Mobile Wi-Fi FEMs MEMS Force Sensing Footprint Enable high data rate & stable Superior Human Machine in Mobile connectivity for c
Slide 22: Increasing Opportunity in Automotive
Increasing Opportunity in Automotive Addressing $3B market with broad product portfolio Network Secure Car Connectivity Ultra-Wideband Access Access UWB Transceivers LTE FEMs UWB SoC and Software 5G FEMs Antenna tuners APT modulator Passenger Infotainment Detection Switches Sensors eCall switches ME
Slide 23: Technology-Driven Land and Expand Opportunities
DS Technology-Driven “Land and Expand” Opportunities Driving new opportunities from single point focus customer engagements Ultra- Precise location + Wideband Matter™ & Tool health ® Bluetooth and diagnostics + Motor Low Energy Control & Drive Intelligent, integrated & programmable Superior HMI Sens
Slide 24: Enabling Broad Market Customer Success
Enabling Broad Market Customer Success Supercharging Qorvo’s ability to serve increasingly diversified customer base Enabling Solutions Broad-customer Developer • Customer-centered AI-powered website technical support community • Digital tools including QSPICE™ • Reference designs for hardware & sof
Slide 25: Capturing Land and Expand Opportunities
Capturing Land and Expand Opportunities Multiple channels to grow and diversify customer base Sales E-Marketing QSPICE™ Qorvo.com Source New Customer Initial Engagement Expanded Engagement Motor Control Motor Control Power Management Force Sensing $4B appliance company Wi-Fi RF Power Management Wi-F
Slide 26: Focusing on Attractive and Growing Markets
Focusing on Attractive and Growing Markets Faster SAM growth driven by expanding technology portfolio and increasing product complexity TAM SAM (In billions) (In billions) $72.7 13.2% 9.0% CAGR CAGR $47.2 $38.3 $20.6 FY24 FY29 FY24 FY29 © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Inform
Slide 27: Building on a Strong Foundation to Address New Opportunities
Building on a Strong Foundation to Address New Opportunities Each segment has a “foundation” and “expansion” opportunities SAM by Segment SAM by Segment ($B) (In billions) Foundation Expansion 5.0% 19.3% 20.0% CAGR CAGR CAGR $9.4 $6.9 $5.4 $6.3 $5.3 $ $2 2.0 .0 $1.3 $1.3 $6.0 $5.3 $4.7 $4.4 $4.1 $3.
Slide 28: Focusing on Attractive & Growing Markets
Focusing on Attractive & Growing Markets SAM $B Customer Product 13% CAGR Development Horizon $38B Industrial & % 34 3 – 5 years Enterprise % 23 Automotive 3 - 5 years Defense and % 13 3 - 8 years $21B Aerospace % 0 Infrastructure 2 - 5 years % 14 Other Consumer 1 - 4 years % 8 Smartphone 1 - 3 year
Slide 29: Frank Stewart, President of Advanced Cellular
Frank Stewart President of Advanced Cellular 29
Slide 30: ACG at a Glance
ACG at a Glance Driving above-market growth Strong Foundation Leading supplier Broad range of products Premier technology portfolio With Multiple Growth Vectors Expanding addressable market with continuing 5G penetration More and Better RF (Premiumization, AI and 5G Advanced) Investing for growth in
Slide 31: Leading Global Supplier of Cellular RF Solutions
Leading Global Supplier of Cellular RF Solutions SMARTPHONES LAPTOPS TABLETS WEARABLES © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 31
Slide 32: Cellular RF Technology Advancements Continue
Cellular RF Technology Advancements Continue TAM SAM* (In billions) (In billions) $17.1 3.3% 5.0% $14.6 CAGR CAGR $12.9 $10.1 FY24 FY29 FY24 FY29 5G smartphone unit growth > 10% annually 1.2 billion smartphones sold annually <50% to >75% Android 5G penetration by 2028 *Excludes mmW, HW, 4G and relat
Slide 33: Multiyear Tailwinds
•What are your goals for this event? What do you want to make sure investors understand at the conclusion of this event? Multiyear Tailwinds Increasing demand for RF, power and analog solutions Global Megatrends Connectivity Mobility Sustainability Electrification AI/Datafication AESA Indoor Non-Ter
Slide 34: AI / Personal Assistants Drive Demand for More & Better RF
AI / Personal Assistants Drive Demand for More & Better RF AI Smartphones* More processing, memory & battery Personal More data, lower latency and smaller area Assistants for All Drives need for high-performance RF 43% CY23 CY27 AI Enabled Smartphones © 2024 Qorvo US, Inc. | Qorvo Confidential & Pro
Slide 35: Premiumization Drives Demand for More & Better RF
Premiumization Drives Demand for More & Better RF Discrete Entry 5G ~3 >10 Integrated Flagship 5G 10+ components, Antenna tuners RF modules Antenna tuners Smartphone Smartphone simple modules ~$5 average >$25 average <20 Bands >50 Bands RF content RF content © 2024 Qorvo US, Inc. | Qorvo Confidentia
Slide 36: Advanced Cellular Product Portfolio
Advanced Cellular Product Portfolio Premier Technology Portfolio UHB (Ultra High Band) PAD MHB PAD BAW SAW LB PAD GaAs HBT TxDSM (Secondary Transmit) Silicon / SOI Antenna Tuners MEMS High-Performance Filters High density packaging RF PMIC Systems-level expertise © 2024 Qorvo US, Inc. | Qorvo Confid
Slide 37: Driving Growth Through 5G Cycle
Driving Growth Through 5G Cycle Unlocking 5G’s full potential; Laying the groundwork for 6G Release 15 Release 17 Release 19 Q2 2018 Q1 2022 Future 3GPP 3GPP 5G 6G Standards Standards Release 16 Release 18 Release 20 Q3 2020 Q4 2023 Future Advanced © 2024 Qorvo US, Inc. | Qorvo Confidential & Propri
Slide 38: 5G Advanced Expands RF Content
5G Advanced Expands RF Content Improved user experience driving need for more and better RF NTN (SOS) UL MIMO* – UHB New function / Higher power Additional module UL MIMO* – M/H bands NTN (Voice & Data) Upgraded module New function / Higher power UL/DL MIMO* – LB Additional module 6 GHz Licensed / U
Slide 39: Content Integration: Flagship Smartphones
Content Integration: Flagship Smartphones MHB PAD integrating MHB DRx content Integrates ~2x the BAW filter content in a QM77178 MHB+DRx Front Qorvo smaller footprint MHB + DRx than existing main path-only, mid-/high-band PAD architectures Qorvo BAW Qorvo LRT SAW 2 PCB area: 86mm CMOS Qorvo GaAs SOI
Slide 40: Content Integration: Mass Market Smartphones
Content Integration: Mass Market Smartphones MHB PAD integrating LB PAD content Qorvo MHB+LB Qorvo BAW Qorvo LRT SAW 2 PCB area: 101.5mm CMOS Qorvo GaAs SOI QM77051 LMH PAD © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 40
Slide 41: More & Better RF
More & Better RF T Antenna Tuners RF environment tougher in new form factors T T T T T T T T T T T T RF PMIC T T T MHB PAD LB PAD Increase in Antenna >40% Antenna Tuners Tuners in foldable phones © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 41
Slide 42: Strategic RF Supplier to All Major Smartphone OEMs
Strategic RF Supplier to All Major Smartphone OEMs Increasing Increasing Performance Performance High scale manufacturing expertise Consistently best-in-class products Trusted innovator since 2G Technology Architecture and roadmap influence Innovation Systems-level capability and integration Increas
Slide 43: Advanced Cellular: Driving above-market growth
Advanced Cellular Driving above-market growth through content gains SAM (In billions) Expansion Opportunities Foundation Expansion Expanding addressable market with continuing 5G penetration 5.0% More and Better RF (Premiumization, AI and 5G Advanced) CAGR $6.9 Investing for growth within largest cu
Slide 44: Break
BREAK Qorvo’s 2024 Investor Day will resume shortly © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 44
Slide 45: Philip Chesley, President of High Performance Analog
Philip Chesley President of High Performance Analog 45
Slide 46: HPA at a Glance
HPA at a Glance Diversified supplier of market leading analog, RF and power solutions Strong Foundation Robust technology portfolio spanning digital motor control, power management, SiC Power, RF GaN and GaAs, silicon SOI design Broad market exposure – automotive, consumer, D&A, industrial & enterpr
Slide 47: SAM Growth Outpacing TAM Growth
SAM Growth Outpacing TAM Growth TAM SAM (In billions) (In billions) $33.0 11.5% 19.3% CAGR CAGR $19.1 $14.7 $6.1 FY24 FY29 FY24 FY29 Increasing market focus on performance, Broad market exposure spanning automotive, consumer, efficiency and integrated solutions D&A, industrial & enterprise, and infr
Slide 48: Multiyear Tailwinds
•What are your goals for this event? What do you want to make sure investors understand at the conclusion of this event? Multiyear Tailwinds Global Megatrends Connectivity Mobility Sustainability Electrification AI/Datafication AESA Indoor Non-Terrestrial Force sensors, enhanced Ultra- upgrades/retr
Slide 49: Diversifying Technologies and Markets
Diversifying Technologies and Markets Leading in high-growth segments, targeting new growth vectors Motor control Battery management Standard products Industrial & systems Advanced packaging Enterprise Data center power and foundry services Defense & Renewable energy Integrated solutions for Aerospa
Slide 50: Capturing Growth
Capturing Growth Through: Leveraging market-leading Expanding analog, RF, and power technologies and building out Portfolio Positioned to systems-level solutions portfolio deliver long-term diversified growth Expanding base of strategic Expanding Markets and focus customers in targeted high-growth s
Slide 51: D&A: AESA Radar Drives Huge Multiplier Effect
D&A: AESA Radar Drives Huge Multiplier Effect 1000s to 10K + Tx/Rx elements per AESA radar Qorvo Opportunities RF amplifiers, PMICs and Active Electronically Scanned Array switches, control ICs Simultaneous multi-beam operation at multiple frequencies limiters, filters Electronically scanned Edge Fa
Slide 52: Expanding Qorvo Content in AESA
Beamformer IC (BFIC) FEMs Expanding Qorvo Content in AESA Broadening capabilities to address more discrete and integrated solutions Path to 10x CURRENT FUTURE size reduction Currently selling On-shore packaging solutions discrete placements enable AESA SiP integration Sub-Array FEMs + BFIC + PMIC PM
Slide 53: D&A: One-to-Many Drives Volume of Systems
D&A: “One-to-Many” Drives Volume of Systems Few, large systems to many highly capable networked systems Centralized operations, Distributed operations conducted by few, large systems many smaller networked systems Drives increased need for Volume Capability Smaller form factor 1: N Connectivity Expa
Slide 54: Expanding Content in LEO Networks
Expanding Content in LEO Networks Enabling internet connectivity around the globe Qorvo Advantage Leveraging broad defense product portfolio into commercial networks Long term provider of GaN, GaAs products and expanding Si product portfolio with Anokiwave acquisition Foundational products in spacec
Slide 55: Infrastructure: Broadband and Base Station
Broadband Well Positioned to Today: Defend Through: • Leading provider of amplifiers • Market leading portfolio enabling DOCSIS 4.0 configurability and modules for broadband Infrastructure: cable access • Continue performance gains and differentiation to maintain leadership position Broadband and Ba
Slide 56: Power Management Solutions for Diverse Markets
Power Management Solutions for Diverse Markets Qorvo's unique power management IP blocks enable SAM expansion Industrial & Enterprise Multi-Channel Power Loss RF Power DC/DC Battery Intelligent ICs (PMICs) Protection Management Regulators Management Motor Control Consumer/ • Highly-integrated • Inte
Slide 57: Expanding Opportunities: Industrial & Enterprise
Expanding Opportunities: Industrial & Enterprise Battery Management Solutions (BMS) for portable brushless motor applications Integrating high-voltage analog, ARM processors and advanced algorithms in single-chip solutions Adding embedded ML and other smart power management techniques Leveraging mot
Slide 58: Expanding Opportunities: Consumer
Expanding Opportunities: Consumer Configurable PMICs enable rapid product development across multiple generations Two PMICs manage power for 31 voltage supply lines in latest GoPro models © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 58
Slide 59: Expanding Opportunities: Consumer
Expanding Opportunities: Consumer Leverage smartphone RF PMIC expertise, customer relationships and PMIC IP Qorvo RF PMIC Qorvo RF PMIC Opportunities Multiple power management placements in smartphones and wearables © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 59
Slide 60: Expanding Opportunities: Automotive
Expanding Opportunities: Automotive Increasing content with Qorvo’s SiC power and power management solutions On-board charging Intelligent motor controllers Power management for connectivity systems Battery management systems DC-DC converters © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary
Slide 61: High Performance Analog
High Performance Analog Growing SAM faster than TAM in diversified, high-growth segments SAM (In billions) Expansion Opportunities Foundation Expansion Scaling capabilities in automotive, consumer, D&A, industrial & enterprise, and infrastructure markets 19.3% Supporting integration trends and syste
Slide 62: Eric Creviston, President of Connectivity & Sensors Group
Eric Creviston President of Connectivity & Sensors Group 62
Slide 63: CSG at a Glance
CSG at a Glance Accelerate & diversify growth – expand to broad market solutions provider Strong Foundation Broad market exposure – mobile, industrial & enterprise, automotive and consumer Attractive scale and Tier 1 intimacy Recognized leadership in RF expertise and quality With Multiple Growth Vec
Slide 64: SAM Growth Outpacing TAM Growth
SAM Growth Outpacing TAM Growth TAM SAM (In billions) (In billions) $22.7 20% 11% CAGR CAGR $13.5 $10.7 $4.3 FY23 FY29 FY23 FY29 Ad Adopt optioio n o n o f CS f g G re disr enf up ie tiv ld et te ec ch hn no ol loogi gies es lik ou e UWB tpac & ing Broad market exposure – mobile, Sensors outpace und
Slide 65: Multiyear Tailwinds
•What are your goals for this event? What do you want to make sure investors understand at the conclusion of this event? Multiyear Tailwinds Increasing demand for RF, power and analog solutions Global Megatrends Connectivity Mobility Sustainability Electrification AI/Datafication AESA Indoor Non-Ter
Slide 66: Capturing Market Evolution and Disruptions
Capturing Market Evolution and Disruptions Investing in a comprehensive and differentiated portfolio for the short & long term Mobile Consumer User interfaces 8K video, gaming, VR The “true” smart home Secure transactions Context awareness and location Data speed & reliability V2X Automotive Industr
Slide 67: Connectivity and Sensors
Connectivity and Sensors Accelerate & diversify growth – Expand to broad market solutions provider Foundation Investments Expansion Technology Force Sensing Portfolio Markets Focus Broad Customers Customers Markets © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 67
Slide 68: Mobile & Consumer Markets
Mobile & Consumer Markets Enabling true innovation with our customers What we enable • Secure transactions • Context awareness • High performance wireless network • Sleek industrial designs Our strengths • Unique access to Mobile OEMs and their ecosystems • Technology portfolio • Capability to quick
Slide 69: Delivering More Intuitive User Experiences
Delivering More Intuitive User Experiences From context awareness to transforming the human machine interface Our unique core technologies + MEMS Force Sensing + ASIC + SoCs Ultra- + Embedded software Wideband + Android integration How our customers leverage our technologies Force Sensing UWB • Repl
Slide 70: Automotive Market
Automotive Market A proven, dependable and innovative partner Strong foundation Expansion opportunities Smart Antennas Telematics & Infotainment SDARS (satellite radio), Wi-Fi modules, Antenna tuners Safety: eCall, V2X Passenger Detection Passenger monitoring, In-cabin micro-location Secure Access N
Slide 71: Bringing Security, Safety & Convenience
Bringing Security, Safety & Convenience From secure car access to child presence detection Our unique core technologies + Antennas + SoCs Ultra- + Embedded software Wideband + Custom algorithms How our customers leverage our technologies • End-to-end solution; from antenna to application • Car to Mo
Slide 72: Industrial & Enterprise Market
Industrial & Enterprise Market Unleashing the digital transformation What we enable • Digital twins that drive operational efficiencies • Virtual fences that improve workers safety • Enabling turn by turn indoor navigation Our strengths • Pioneers in real time location technology • Robust RF solutio
Slide 73: The Value of Indoor Navigation
The Value of Indoor Navigation Redefining “navigation” Our unique core technologies + Antennas Ultra- + SoCs Wideband + Embedded software + Deployment tools How our customers leverage our technologies • Navigation & location services • Anti-theft / virtual fences • Targeted marketing • Building mapp
Slide 74: Becoming a Broad Market Leader - One Step at a Time
Becoming a Broad Market Leader - One Step at a Time Foundation in place – scaling and expansion underway Establish broad market leadership FUTURE Targeting Strong • Portfolio of market specific solutions Double-digit • Low-touch model from online presence to channel Revenue Growth Expand and drive s
Slide 75: Connectivity and Sensors
Connectivity and Sensors Expanding to broad market solutions provider SAM (In billions) Expansion Opportunities Foundation Expansion Investing in high potential technologies Expanding addressable market through product and 20% customer diversification $6.3 CAGR Expanding portfolio and reach into bro
Slide 76: c S a C4 c & oO oO ire (>) ue} ¢ a >
c S 2 a C4 c & oO oO ire (>) ue} ¢ 6 a > n Qorvae
Slide 77: History of Financial Growth
History of Financial Growth Track record of topline growth and focus on free cash flow Revenue Free Cash Flow (In billions) (In billions) $3.8 $0.7 +45% +90% $2.6 $0.4 FY16 FY24 FY16 FY24 © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 77 Financials presented are Non-GAAP
Slide 78: Demonstrated Financial Resiliency
Demonstrated Financial Resiliency Weathered inventory correction while remaining free cash flow positive Revenue Free Cash Flow (In billions) (In millions) $467 $4.6 $4.0 $230 $220 $3.8 $203 $170 $3.6 $64 $31 $5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY21 FY22 FY23 FY24 FY23 FY24 © 2024 Qorvo US, Inc. | Qorvo Conf
Slide 79: Growth and Diversification Strategy
Growth and Diversification Strategy Well positioned to accelerate growth across business segments CSG HPA CSG HPA Post-correction Growth in ACG Growth in HPA Growth in CSG Investments in Defense & Automotive ACG largest customer Aerospace and Connectivity, and ACG platforms Power Management Matter &
Slide 80: Reducing Capital Intensity
Reducing Capital Intensity Technology and process advances improve wafer efficiency and reduce cost CapEx as a % of Sales Business Mix & Factory Consolidation & OSAT partnerships Acquisitions Existing Capital New Capital TX FL HPA CSG Beijing & Dezhou Wafer Diameter Wafer Yield % % Product Design Di
Slide 81: 50%+ Gross Margin Optimization
50%+ Gross Margin Optimization Path back to 50% driven by Utilization manufacturing efficiencies, mix and utilization Optimized factory Normalization footprint Diversified Efficiency gains with business mix OSAT partners Broadened Increasing utilization 44.5% Channel inventory customer base and load
Slide 82: Operating Expenses
Operating Expenses Commitment to R&D sustains technology leadership Investing to Sustain Competitive R&D Investments Aligned to Advantage & Technology Leadership Customer Roadmaps $ $ $ Operating R&D SG&A $ Expenses ~33% ~67% FY16 - FY24 Today Year 3 Year 1 Year 2 Close customer partnerships provide
Slide 83: Transforming Our Core Systems
Transforming Our Core Systems Investing to support growth, profitability, and efficiency Targeted Transformation Areas Investment will drive multi-year benefits beyond initial investment Driving Operational Digitization of our $100 Excellence Organization Technology and Optimize data model to proces
Slide 84: Target Model
Target Model Operating model defined by growth, profitability and business mix ACG HPA CSG Qorvo Strong Revenue Mid-to-high Double > 10% Growth % Double Digits Single Digits Digits Collective benefit from lower capital intensity, factory Gross efficiencies, yield improvements, process advancements,
Slide 85: Sustaining Growth & Returning Capital
Sustaining Growth & Returning Capital Balanced capital allocation including ongoing commitment to share repurchase Net Cumulative Shares Repurchased CapEx 80M 40% 16% Share 35% Repurchase 41% 60M 30% M&A 11% 25% 40M 20% $14B Cash Deployed 15% FY16 – FY24 20M 10% 5% 0M 0% R&D FY15 / FY17 FY18 FY19 FY
Slide 86: Reducing Leverage
Reducing Leverage Low coupon, fixed rate debt; dedicated to investment grade credit profile Long Term Notes Debt Rating 4.375% A3 A- A- Fixed 3.375% Baa1 BBB+ BBB+ Fixed Short Term Investment Notes Grade Baa2 BBB BBB 1.75% Fixed Baa3 BBB- BBB- $850M $700M $440M Ba1* BB+ BB+ Non-Investment Grade Ba2
Slide 87: Compelling Investment Thesis
Compelling Investment Thesis Thriving on ever-increasing complexity 01 Strong tailwinds within large addressable markets 02 Broadly applicable core competitive strengths and leading technology portfolio 03 Expanding breadth across markets, customers and product categories OpEx discipline and decreas
Slide 88: Q&A
Q&A © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 88
Slide 89: Important Supplemental Information
Important Supplemental Information © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 89
Slide 90: Supplemental information on Non-GAAP financial measures
Investor Day Presentation Supplemental information on Non-GAAP financial measures In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this presentation contains some or all of the following non-GAAP financial
Slide 91: Supplemental information on Non-GAAP financial measures (continued)
Investor Day Presentation Supplemental information on Non-GAAP financial measures (continued) Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo's operations, are outlined below: Non-GAAP revenue. Non-GAAP revenue (for fiscal 2016) exclude
Slide 92: Supplemental information on Non-GAAP financial measures (continued)
Investor Day Presentation Supplemental information on Non-GAAP financial measures (continued) Non-GAAP operating expenses and operating margin. Non-GAAP operating expenses and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration-re
Slide 93: Supplemental information on Non-GAAP financial measures (continued)
Investor Day Presentation Supplemental information on Non-GAAP financial measures (continued) Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is cal
Slide 94: Supplemental information on Non-GAAP financial measures (continued)
Investor Day Presentation Supplemental information on Non-GAAP financial measures (continued) Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financ
Slide 95: Reconciliation of GAAP to non-GAAP Financial Measures
Investor Day Presentation Reconciliation of GAAP to non-GAAP Financial Measures (In thousands, except per share data) © 2024 Qorvo US, Inc. | Qorvo Confidential & Proprietary Information 95