Wolfspeed, Inc. · NYSE:WOLF
Wolfspeed — Investor Day (November 2021)
132 slides from Wolfspeed's investor day presentation, Nov 17, 2021
Slide 1: Wolfspeed Investor Day
Wolfspeed Investor Day NOVEMBER 17, 2021 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 2: Welcome
Welcome TYLER GRONBACH, VP OF INVESTOR RELATIONS WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 3: Forward-Looking Statements and Non-GAAP Measures
FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Note on Forward-Looking Statements This presentation includes forward-looking statements about Wolfspeed’s business outlook, future financial results and targets, product markets, plans and objectives for future operations, and product development pro
Slide 4: Agenda
AGENDA 1 STRATEGIC OVERVIEW 5 CUSTOMER FIRESIDE CHAT Gregg Lowe – President Moderated by Kenric Miller – VP, Global Sales & CEO & Marketing, Automotive 2 TECHNOLOGY OVERVIEW 6 PIPELINE DEVELOPMENT - COMPONENTS John Palmour - CTO Thomas Wessel – SVP, Global Sales & Marketing 3 WOLFSPEED BUSINESS REVI
Slide 5: Strategic Overview
Strategic Overview GREGG LOWE | PRESIDENT & CEO WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 6: Wolfspeed at a Glance
WOLFSPEED AT A GLANCE Company Overview Wolfspeed Revenue (M)(1) ~$16B Substantial Largest $526 Market Cap IP Position Silicon Carbide Provider $221 1987 ~3,500 30+ Years Founded Employees Leadership FY2017 FY2021 Recent Highlights $18B+ ~$2.9B ~$9B Current Device Pipeline Design-In Awards in FY2021
Slide 7: Since We Last Met: Headwinds
SINCE WE LAST MET The industry has been hit by several near-term headwinds…. 2020 2021 March: Global pandemic hits all parts March: Industry-wide supply chain of the world lags as demand strengthens May: Demand begins to pick up as May: Mounting concern regarding world adjusts to new normal inflatio
Slide 8: Since We Last Met: Transformation
SINCE WE LAST MET …but we’ve still managed to transform into a global semiconductor powerhouse 2020 2021 March: Quickly Adapted to the New February: Completed $500M ATM Equity COVID-19 Operating Environment Offering March: Completed Sale of LED Business April: Announced $575M Convertible Senior Note
Slide 9: I Took a Bike Ride Recently
I TOOK A BIKE RIDE RECENTLY… … here’s what I learned. WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 9
Slide 10: Wolfspeed Is at an Inflection Point
WOLFSPEED IS AT AN INFLECTION POINT Pipeline Key milestones on our transformation Grows Cree is Announces to $18B+ Renamed ~$2.9B Wolfspeed Design-ins, Pipeline ~$1.3B LTAs Grows to ~$15B Sale of LED $1B+ Business Investment Sale of in MVF Fab Lighting Business Acquired Infineon’s RF Strategic Busin
Slide 11: Next Generation Power Semiconductors Driven by Silicon Carbide
THE NEXT GENERATION IN POWER SEMICONDUCTORS WILL BE DRIVEN BY SILICON CARBIDE TECHNOLOGY Power Density Comparison vs. Silicon SiC Inverters | OBCs are: • Lighter RF Power • Smaller • More efficient, 5% - 10% increase in vehicle range GaN-Silicon Carbide in 5G enables: • Increased capacity and covera
Slide 12: Silicon Carbide Unlocking a New Era of Energy Efficiency
SILICON CARBIDE IS UNLOCKING A NEW ERA OF ENERGY EFFICIENCY ENERGY SAVED ON ENERGY INVESTED (ESOI) FOR AN EV SEDAN APPLICATION 13 : 1 800V bus Silicon Carbide MOSFET solution to 400V bus Si IGBT solution WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and
Slide 13: Accelerating EV Adoption Driving $330B+ Investment
ACCELERATING EV ADOPTION DRIVING $330B+ INVESTMENT Global OEMs and Corporates have made significant commitments to EVs Committed to 30 new EVs Announced Model S and All electric; 150K in Expects EVs to represent Plans to spend over €40B by 2025; plans to spend Model X extended ranges annual producti
Slide 14: Automotive Outlook from 2019
AUTOMOTIVE OUTLOOK FROM 2019 – SPLIT BETWEEN PHEV & BEV GM, Volkswagen Say The Battery Is Ready Volvo Plans to Sell Goodbye to Hybrid to Power the World Only Electric Cars by Vehicles 2030 FEB. 5, 2021 AUG. 12, 2019 MARCH 3, 2021 Study Expects More EVs Ford Will Build 4 Than ICE Vehicles Will Be Fac
Slide 15: Silicon Carbide Gaining Momentum Across Industrial Applications
SILICON CARBIDE GAINING MOMENTUM ACROSS A WIDE RANGE OF INDUSTRIAL APPLICATIONS Wolfspeed’s value proposition spans several different applications EV charger Scalable charger Portable power supply Tropospheric scatter communications Off board charger system for industrial trucks Air conditioning mot
Slide 16: Attractive Markets with Ample Runway
ATTRACTIVE MARKETS WITH AMPLE RUNWAY TO SUPPORT RAPID GROWTH Serviceable Market Opportunity (M) $8,900M • Auto devices account for 50% of the $6,800M opportunity, with a 30% CAGR $4,300M • As device cost decreases, Industrial Devices markets expand, creating a $40B+ opportunity 2022 2024 2026 Power
Slide 17: Supply Has Become a Key Issue
SUPPLY HAS BECOME A KEY ISSUE Global Chip Shortage ‘Is Far From Over’ as Wait Times Get Longer OCT. 28, 2021 SEPT. 23, 2021 The global chip shortage is continuing to wreak havoc for the car giants OCT. 28, 2021 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspee
Slide 18: March 2020 – Mohawk Valley
MARCH 2020 – MOHAWK VALLEY WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 18
Slide 19: October 2021
OCTOBER 2021 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 19
Slide 20: Materials Expansion in North Carolina
MATERIALS EXPANSION IN NORTH CAROLINA WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 20
Slide 21: Building a World-Class, Customer-Centric Organization
BUILDING A WORLD-CLASS, CUSTOMER-CENTRIC ORGANIZATION TO SUPPORT A MULTI-DECADE GROWTH OPPORTUNITY Attracting talent at every level from large-scale semiconductor companies to support biggest device shift in the analog market in decades 350+ years of semiconductor leadership experience across key ar
Slide 22: Why We Win
WHY WE WIN - FOCUSED ON STEEPENING DEMAND CURVE FOR SILICON CARBIDE SOLUTIONS Expanding Executing on Growing and Investing in leading growth plans diversified capacity and market to create a $18B+ pipeline people to position with global supported by support multi- strong barriers semiconductor secul
Slide 23: WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the
WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 23
Slide 24: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 24
Slide 25: Technology Overview
Technology Overview JOHN PALMOUR | CTO WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 26: Agenda
AGENDA 1 MOSFET DEVELOPMENT 650 V family and 1200 V Gen 3+ 2 MODULES FOR INVERTERS Power module demonstration 3 200mm SUBSTRATES 200mm bulk growth update 4 DOES SiC SAVE ENERGY? Joint study with BPEI on ESOI 5 CONCLUSIONS © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo
Slide 27: Current Status of 200mm Substrates
CURRENT STATUS OF 200mm SUBSTRATES
Slide 28: Die Count Advantage of 200mm SiC Wafers
INCREASED DIE COUNT ADVANTAGE OF MOVING TO 200mm SiC WAFERS 32 mm2 die 150mm 200mm # whole die 448 845 % edge die 14 7 produce more devices from a single wafer enhanced productivity and efficiency © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademark
Slide 29: First Announcement of 200mm in 2015
FIRST ANNOUNCEMENT OF 200mm IN 2015 200mm Substrate – Micropipe Density • 2.03 micropipes/cm2 – Lattice Plane Radius Curvature • >75 meters 200mm Epiwafer – Radial Doping • Navg = 3.2 x1015 cm-3 • /mean = 1.9 % – Epitaxial Thickness • mean = 8.3 microns • /mean = 2.2 % © 2021 Wolfspeed, Inc. All r
Slide 30: Cross Polarization Image of a 200mm Wafer
CROSS POLARIZATION (XPOL) IMAGE OF A 200mm WAFER FROM DEC 2019 Cross-polarizer image highlights crystalline structural imperfections © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 30
Slide 31: 200mm Quality Improvement Status
200mm QUALITY IMPROVEMENT STATUS – HIGH CONTRAST XPOL Best Dislocation Densities Basal Plane Dislocation Density (BPDs) = 309 /cm2 Threading Screw Dislocation Density (TSDs) = 289 /cm2 Cross-polarized image shows very good structural quality © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and
Slide 32: 200mm Surface Quality After CMP
200mm – SURFACE QUALITY AFTER CHEMO-MECHANICAL POLISH (CMP) Projected Yield (Material Defects Only) 5x5 mm Die Yield = 96.1% 2x2 mm Die Yield = 99.2% Total Defects = 66 Surface scan shows excellent CMP process and surface quality © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstr
Slide 33: Fully Fabbed 200mm MOSFET Wafer from SUNY Poly
FULLY FABBED 200mm MOSFET WAFER FROM SUNY POLY PILOT LINE © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 33
Slide 34: Latest SiC MOSFET Developments
LATEST SiC MOSFET DEVELOPMENTS: - 650V MOSFET FAMILY - GEN 3+ 1200 V MOSFETs
Slide 35: Wolfspeed C3M 650V SiC Discrete Power MOSFETs
WOLFSPEED C3M 650V SiC DISCRETE POWER MOSFETS Available Packages Rds(on) Voltage Package (25°C) 15mΩ 650V TO-247-4L, TO-247-3L 25mΩ 650V TO-247-4L, TO-247-3L 45mΩ 650V TO-247-4L, TO-247-3L 60mΩ 650V TO-247-4L, TO-247-3L, TO-263-7L TO-247-4L TO-247-3L TO-263-7L 120mΩ 650V TO-247-4L, TO-247-3L, TO-263
Slide 36: Industry-Leading Performance: SiC vs SiC
INDUSTRY-LEADING PERFORMANCE: SiC VS SiC Normalized RDS(on) vs. Temperature 1.6 1.5 1.4 1.3 1.2 1.1 1.0 0.9 -50 -25 0 25 50 75 100 125 150 175 Wolfspeed Competitor A Competitor B Competitor C Source: Company and competitor data sheets © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wo
Slide 37: System Efficiency: Synchronous DC/DC Boost Converter
SYSTEM EFFICIENCY: SYNCHRONOUS DC/DC BOOST CONVERTER Wolfspeed 650V SiC MOSFET vs Competition in a Sync. Boost Converter 99.2% Test Platform 99.0% Wolfspeed Gen 3 650 V MOSFET Buck/Boost Board – Sync. 98.8% Boost Mode Efficiency (%) 98.6% Sync Conditions 98.4% SiC Competition 60 kHz, 5kW 98.2% VIN =
Slide 38: System Efficiency: Power Loss vs Output Power
SYSTEM EFFICIENCY: POWER LOSS vs OUTPUT POWER 140 20W Test Platform 120 Buck/Boost Board – Sync. 100% Boost Mode Power Loss (W) 80 Sync Conditions 60 60 kHz, 5kW VIN = 200 VDC 40 7.1W VOUT = 400 VDC 20 Wolfspeed 650V SiC 0 SiC Competition 467 1142 1810 2473 3125 3761 4387 5008 Total Power (W) © 2021
Slide 39: Hex Cell for Increased Channel Density on 650V Gen 3
HEX CELL FOR INCREASED CHANNEL DENSITY IMPLEMENTED ON 650V GEN 3 Hex Cell Performance 650V Gen 3 • Rdson-spec. = 2.3 mW-cm2 • Minimum Vbr > 700V 1200V Gen 3+ • Rdson-spec. = 2.7 mW-cm2 • Minimum Vbr > 1400V • Hex cell originally implemented on C3D and E3D 650V MOSFETs Linear Unit Cell in Gen 3 Hexag
Slide 40: Hex Cell for Increased Channel Density on 1200V Gen 3+
HEX CELL FOR INCREASED CHANNEL DENSITY IMPLEMENTED ON 1200V GEN 3+ Hex Cell Performance 650V Gen 3 • Rdson-spec. = 2.3 mW-cm2 • Minimum Vbr > 700V 1200V Gen 3+ • Rdson-spec. = 2.7 mW-cm2 • Minimum Vbr > 1400V • Hex cell originally implemented on C3D and E3D 650V MOSFETs Linear Unit Cell in Gen 3 Hex
Slide 41: SiC Power Module Capabilities
SiC POWER MODULE CAPABILITIES
Slide 42: SiC Power Solutions
SiC POWER SOLUTIONS Medium- to High-Power Solutions Complete the Design Continuum Discrete Product Portfolio - Complete 650V/900V/1200V/1700V - >50 products in different package and Rdson - Auto grade and Industrial grade 1 kW 10 kW 50 kW 100 kW 600 kW Wolfspeed WolfPACK™ Family Module Design Goals
Slide 43: XM3 Dual Inverter System
XM3 DUAL INVERTER SYSTEM • Compact metal enclosure only 8.6 L and 9.7 kg • Dimensions: 204 x 267.5 x 157.5 mm • Output terminals enable application flexibility • Phase outputs can be used as dual inverter or paralleled for higher output current Dual Inverter Single Inverter 375A per phase 750A per p
Slide 44: Incredible Power Density with the XM3 Module
INCREDIBLE POWER DENSITY ALLOWED WITH THE XM3 MODULE Competitor CRD300DA12E-XM3 CRD600DA12E-XM3 Semiconductor Si IGBT SiC SiC Type Single Inverter Single Inverter Dual Inverter Output Power 250 kW 300 kW 624 kW Volume 12.6 L 9.3 L 8.6 L Power Density 19.8 kW/L 32.2 kW/L 72.5 kW/L 3.6X Si © 2021 Wolf
Slide 45: Incredible Power Density with the XM3 Module
INCREDIBLE POWER DENSITY ALLOWED WITH THE XM3 MODULE How big is 8.6 liters? A regulation soccer ball is 5.8 liters © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 45
Slide 46: Wolfspeed's Strong Patent Position
WOLFSPEED’S STRONG PATENT POSITION 2,939 issued and pending worldwide patents MATERIALS (412) POWER (1,212) Materials Issued (360) Materials Pending (52) RF Issued (1015) RF Pending (300) Power Issued (984) Power Pending (228) RF (1,315) © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the
Slide 47: Do Silicon Carbide MOSFETs Actually Save Energy Overall?
DO SILICON CARBIDE MOSFETS ACTUALLY SAVE ENERGY OVERALL? ESOI – ENERGY SAVED ON ENERGY INVESTED AS METRIC
Slide 48: Accounted for All Energy Required to Make SiC MOSFETs
ACCOUNTED FOR ALL ENERGY REQUIRED TO MAKE SiC MOSFETS Sources of Embedded Energy Percentage of Embedded Energy Electricity: Accounted for all electricity required to grow SiC boules, wafer them, polish, grow epitaxy and do cleanroom fabrication 78.2% Embodied Energy: All raw materials, chemicals & c
Slide 49: ESOI – EV Sedan Application
ESOI – EV SEDAN APPLICATION RETURN ON EXTRA ENERGY 400V Si IGBT to 400V Si IGBT to 800V SiC MOSFET 400V SiC MOSFET 800V SiC MOSFET Taxi/Uber Scenario* 7:1 13:1 24:1 Increasing bus voltage from 400V to 800V: • reduces total chip area (assumption is by 20%) • reduces marginal energy investment by ~1 G
Slide 50: Energy Saved per Car Using Silicon Carbide
ENERGY SAVED PER CAR USING SILICON CARBIDE Equivalent of 5.5 barrels Owners save over $233* Lifetime GHG emissions reduced by of oil saved per sedan of electricity 690 kg CO2,eq, equal to the CO2 in 77 gallons of gasoline In 2030, if 35M BEVs use Silicon Carbide, the lifetime savings for that 1 mode
Slide 51: ESOI for SiC MOSFETs in Industrial Applications
THE ESOI FOR SiC MOSFETS IS EVEN MORE DRAMATIC FOR INDUSTRIAL APPLICATIONS Phoenix, AZ Beijing 77:1 63:1 +1,078 kWh/yr ESOI FOR +862 kWh/yr 50 kW PV SYSTEM WITH SiC STRING Albany, NY INVERTER Shenzhen 55:1 59:1 +738 kWh/yr +797 kWh/yr © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wo
Slide 52: Why We Win – Technology
WHY WE WIN – TECHNOLOGY 200mm wafers show very 200mm BPD Densities as Hex cell planar MOSFETs good structural quality low as 309 /cm2, and TSD are very competitive at with minimum Densities as low as 650V birefringent contrast over 289 /cm2 the entire 200mm wafer For 1200V Gen 3+ devices, Power Modu
Slide 53: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 53
Slide 54: Power
Power JAY CAMERON | SVP & GM, POWER WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 55: Wolfspeed Power Device Opportunity
WOLFSPEED POWER DEVICE OPPORTUNITY Power Device Market Forecast (M) Growth Drivers for Silicon Carbide TAM $6,000M • Battery Electric Vehicle (BEV) ramp $4,200M • Energy efficiency requirements in Industrial $2,200M • Power density and solution size in Industrial & Energy • Electric vehicle charging
Slide 56: Power Device Portfolio
POWER DEVICE PORTFOLIO Discrete Power Devices Power Die Products Power Modules Broad applications across Devices in chip form for Modules for high power Automotive and Industrial & customers with internal applications in Automotive and Energy packaging capability Industrial & Energy Portfolio Charac
Slide 57: Power Device Opportunity: Industrial & Energy
WOLFSPEED POWER DEVICE OPPORTUNITY: INDUSTRIAL & ENERGY Industrial & Energy Market Forecast (M) $1,400M Growth Drivers for Industrial & Energy $1,000M • Electric vehicle fast charging infrastructure • Energy efficiency standards & operating cost reductions $600M via less wasted electricity • Renewab
Slide 58: Secular Trends in Industrial Devices
POWERFUL SECULAR TRENDS DRIVING GROWTH OPPORTUNITIES IN INDUSTRIAL & ENERGY DEVICES Market Segment Trend Air Conditioners Efficiency standards, smaller systems Trains Improving operating economics Test & Measurement Automotive electrification Industrial Heating & Welding Smaller, more portable solut
Slide 59: Secular Trends in Energy Devices
POWERFUL SECULAR TRENDS DRIVING GROWTH OPPORTUNITIES IN INDUSTRIAL & ENERGY DEVICES Market Segment Trend Higher voltage, paired with storage, increased share of Solar energy production Paired with solar, surge and backup capability, Energy Energy Storage scalable implementations DC microgrid, solid
Slide 60: Silicon Carbide Wins in Industrial & Energy
SILICON CARBIDE WINS IN INDUSTRIAL & ENERGY Silicon Carbide Advantages Why Wolfspeed Wins Higher efficiency Sales channel matched to opportunity – Meet stringent energy standards – Wolfspeed for focus accounts – Improved operating costs – Arrow Electronics for breadth and scale – Simplified cooling
Slide 61: Power Device Opportunity: Automotive
WOLFSPEED POWER DEVICE OPPORTUNITY: AUTOMOTIVE Automotive Market Forecast (M) $4,600M Growth Drivers for Automotive Opportunities $3,200M • Automakers transition aggressively from internal combustion engine (ICE) to battery electric vehicle (BEV) $1,600M • Electric vehicles switch from silicon to Si
Slide 62: Silicon Carbide Wins in Automotive
SILICON CARBIDE WINS IN AUTOMOTIVE Silicon Carbide Advantages Why Wolfspeed Wins Performance & Technology Supply Chain Capability Regulatory & Environmental – Comprehensive Silicon Carbide expertise & intellectual property • Effectiveness of battery • Carbon fleet regulations investments • Consumer
Slide 63: Wolfspeed Assurance of Supply Program
WOLFSPEED ASSURANCE OF SUPPLY PROGRAM: A SUPPLY CHAIN SOLUTION Traditional automotive industry Capacity planning decisions made 1-4 Mismatched timelines creates risk for sourcing mechanics commit orders years in advance, require large capital manufacturers and automakers inside one year outlays for
Slide 64: Why We Win - Power
WHY WE WIN - POWER Market conditions Industrial & The electric The combination for Silicon Carbide Energy brings vehicle transition of our adoption are breadth and in automotive technology, favorable across diversity to our creates a large manufacturing, Automotive and customer base opportunity for
Slide 65: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 65
Slide 66: RF Power
RF Power GERHARD WOLF | SVP & GM, RF POWER WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 67: Communication Infrastructure Industry Trends
COMMUNICATION INFRASTRUCTURE INDUSTRY TRENDS – CONNECTIVITY EVERYWHERE & EXPLOSIVE GROWTH IN DATA TRAFFIC Significance of 5G network Forecasted worldwide mobile data traffic 300 +22% +23% 250 +26% 200 +29% GB/month 150 +28% +29% 100 50 0 2020 2021 2022 2023 2024 2025 2026 Central & Eastern Europe In
Slide 68: Aerospace & Defense Trends – Phased Array Radar
AEROSPACE & DEFENSE INDUSTRY TRENDS – RADAR SYSTEMS MIGRATING TO PHASED ARRAY ANTENNAS Modern radar systems are moving from rotating antennas to electronically scanned active arrays for improved performance Rotating Antenna Phased Array Antenna (Single Mechanically scanned beam) (Multiple electronic
Slide 69: RF Device Market Expanding to $2.9B
RF DEVICE MARKET EXPANDING TO $2.9B RF Device Market (M) Drivers $2,900M 5G revolution driven by significant rise in data rate $2,400M and bandwidth requirements $2,100M High-performance next generation aerospace and defense systems Improved performance, higher efficiency commercial and industrial e
Slide 70: Why Gallium Nitride-on-Silicon Carbide?
WHY GALLIUM NITRIDE-ON-SILICON CARBIDE? Advantages of GaN-on-SiC over Si Customer Benefits Efficiency Power Density ✓ High efficiency solutions → Lower power consumption Si GaN-SiC ✓ High power density → Compact solutions Advantages of GaN-on-SiC over GaAs ✓ High thermal conductivity → Savings on co
Slide 71: GaN Applications & Advantages in Communications Infrastructure
GAN APPLICATIONS & ADVANTAGES IN COMMUNICATIONS INFRASTRUCTURE APPLICATIONS AND DRIVERS SOLUTION: GaN-on-SiC BASED 5G SYSTEM • High power density of GaN-on-SiC PAs enable • Compact systems compact solutions • Increased frequency bandwidth • High efficiency of GaN-on-SiC supports smaller • Lower carb
Slide 72: GaN-on-SiC Improves System Performance
GAN-ON-SIC IMPROVES SYSTEM PERFORMANCE ACROSS MULTIPLE APPLICATIONS APPLICATIONS AND DRIVERS SOLUTION: X-Band PHASED ARRAY RADAR • Lower power consumption with higher performance • GaN-on-SiC versus GaAs Transmit Module • Smaller, lighter equipment Amplifier Comparison Satcom Weather Radar Test and
Slide 73: RF Power Business Strategy
RF POWER BUSINESS STRATEGY Drive value with vertical Support Communication Serve Aerospace and integration and technology Infrastructure customers Defense markets with select leadership with focused product and distribution partnerships worldwide application WOLFSPEED CONFIDENTIAL & PROPRIETARY © 20
Slide 74: Why We Win – RF Power
WHY WE WIN – RF POWER MORE THAN MORE THAN 800+ BILLION ACCREDITED 15 YEARS 50 MILLION FIELD HOURS AS A CATEGORY DEVICES 1A TRUSTED Of commercial Failure-in-time FOUNDRY GaN HEMT Successfully rates lower production fielded to date than Si By the U.S. experience Department of Defense WOLFSPEED CONFIDE
Slide 75: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 75
Slide 76: Materials
Materials CENGIZ BALKAS | SVP & GM, MATERIALS WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 77: Wolfspeed Materials: Mission
WOLFSPEED MATERIALS: MISSION Accelerate the industry conversion from silicon to Silicon Carbide in power and RF semiconductors by being the preferred and trusted supplier of Silicon Carbide and GaN materials WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed®
Slide 78: Materials Strategy: Intact and Unchanged
MATERIALS STRATEGY: INTACT AND UNCHANGED Maintain leading global Expand capacity to Use scale to drive market share accelerate industry innovation, quality and transition from silicon to cost reduction Silicon Carbide improvements WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All right
Slide 79: Silicon Carbide Materials Market Expanding to $1B+ by 2024
SILICON CARBIDE MATERIALS MARKET EXPANDING TO $1B+ BY 2024 Drivers Value proposition validated in applications that are 2.5x $1,700M driving significant growth EV applications driving significant volume in $1,200M power wafer market Significant adoption in broad industrial power market applications
Slide 80: Market Leadership
MARKET LEADERSHIP Wolfspeed is the premiere Silicon Carbide wafer supplier with leading-edge technology SiC Wafer Market Share • Wolfspeed has long-term stable 4% 2% market share of >60% 5% • Wolfspeed recognized as a 13% technology leader in the industry • Wolfspeed is leading supplier to world’s l
Slide 81: Winning in Materials – Key Deals Announced
WINNING IN MATERIALS – KEY DEALS ANNOUNCED Wolfspeed wafers are driving the transition in the power semiconductor industry from silicon to Silicon Carbide Binding two-way Multi-year commitment to $1.3B agreements purchase and to supply Capacity Access to long reservation deposit term pricing and mec
Slide 82: Scale and Cycles of Learning
SCALE AND CYCLES OF LEARNING Intellectual Property Long-Term Agreements Large Diameter Commitment High Quality Value Low Defectivity Internal and External Feedback 400+ Years of Team Experience 30+ Customer Service Surface Finish years Safety Quality Repeatability Volume Automation WOLFSPEED CONFIDE
Slide 83: From Demonstration to Full Manufacturing Takes Years
FROM DEMONSTRATION TO FULL MANUFACTURING FOR SILICON CARBIDE WAFERS TAKES YEARS Demonstration Definition Ramp Production • Refine specifications • Initial specifications • Stable POR • Productivity improvements • Refine POR • Initial POR • Commercially available • Volume output • Quality demonstrati
Slide 84: Materials Product Portfolio
MATERIALS PRODUCT PORTFOLIO Wolfspeed is the only commercial provider of a full suite of Silicon Carbide and GaN materials Power Materials RF Materials • 150mm Silicon Carbide N-type wafers • 150mm HPSI Silicon Carbide wafers • 150mm Silicon Carbide epitaxy • 150mm GaN-based HEMT epitaxy • 150mm thi
Slide 85: Silicon Carbide Epitaxy
SILICON CARBIDE EPITAXY Epitaxy Process – critical for device design, performance, and quality High device yields require good thickness and doping uniformity with high crystal quality Silicon Carbide Growing Silicon Silicon Carbide substrate Carbide epiwafer Multiple commercial reactor platforms ar
Slide 86: Leading Volume Supplier: By the Numbers
LEADING VOLUME SUPPLIER: BY THE NUMBERS Over the past 10 years, Wolfspeed has Over the past 5 years, Wolfspeed has manufactured >615 million cm2 shipped >2.5 million µm of Silicon of Silicon Carbide wafers Carbide epitaxy –More than 15 acres –2.5 meters (8.34 ft) –Nearly 12 football fields –Depth of
Slide 87: Why We Win - Materials
WHY WE WIN - MATERIALS World class Investing in Absolute Driving R&D and R&D and scale commitment business to operations to drive to quality continuously team focused industry serving create value solely on transition at a demanding for our Silicon Carbide rapid pace applications customers and GaN m
Slide 88: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 88
Slide 89: Customer Fireside Chat with ZF
Customer Fireside Chat with ZF MODERATED BY KENRIC MILLER | VP, GLOBAL SALES & MARKETING, AUTOMOTIVE WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 90: Pipeline Development - Components
Pipeline Development - Components THOMAS WESSEL | SVP, GLOBAL SALES & MARKETING WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 91: Current Pipeline > $18B
CURRENT PIPELINE > $18B $ MILLIONS 2022 2023 2024 2025 2026 2027 AUTO NON-AUTO Auto represents >70% of the Non-Auto represents close to pipeline 60% of the pipeline FY22-24 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registe
Slide 92: Pipeline Development by Segment
PIPELINE DEVELOPMENT BY SEGMENT ~75% ~65% ~10% CAGR CAGR CAGR $ MILLIONS $ MILLIONS Beg FY20 Beg FY21 Beg FY22 AUTOMOTIVE INDUSTRIAL & ENERGY RF AUTOMOTIVE INDUSTRIAL & ENERGY RF Beg FY20 Beg FY21 Beg FY22 Auto grew 3x in this period with Industrial & Energy > 2.5x driven RF recovering from Geopolit
Slide 93: FY21 Design In Details
FY21 DESIGN IN DETAILS * WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. *ELR=Estimated Lifetime Revenue 93
Slide 94: Channel Pipeline
CHANNEL PIPELINE Pipeline $ (excl Verticals) Pipeline Development (excl Verticals) $ MILLIONS DIRECT DISTRIBUTION Pipeline # of Projects (excl Verticals) 2022 2023 2024 2025 2026 2027 DIRECT DISTRIBUTION DIRECT DISTRIBUTION Excluding our vertical segments (Auto & Communication Close to 1,000 project
Slide 95: FY21 Design In - Revenue Profile
FY21 DESIGN IN - REVENUE PROFILE $500.00 $450.00 $400.00 $350.00 $300.00 $ MILLIONS $250.00 $200.00 $150.00 $100.00 $50.00 $0.00 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 RF Ind & Energy Automotive Automotive - Time to revenue 2x compared to non-Auto WOLFSPEED CONFIDENTIAL & PROPRIETARY © 20
Slide 96: Why We Win – Pipeline Development, Components
Why We Win – Pipeline Development, Components Auto Strong growth Contribution Global High opportunities across all from all Distribution confidence of proliferating major geographies Partner allows pipeline to across all segments us to cover a revenue major OEMs diverse conversion to customer achiev
Slide 97: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 97
Slide 98: Capacity Update
Capacity Update REX FELTON | SVP, FAB OPERATIONS WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 99: Vision and Passion to Win Supported by OnePack Culture
VISION AND PASSION TO WIN SUPPORTED BY ONEPACK CULTURE Global Operations Vision: Cutting Down the Nets in FY24 Safe, Right, Fast Mentality ~$1.5B Revenue, 50%+¹ Gross Margin Nimble and Agile. Leverage operations performance for fast turn protos OnePack Culture: Make it Personal and Win Reaching for
Slide 100: World Class Operating System
WORLD CLASS OPERATING SYSTEM Target Zero Quality Structured Dispo Guidelines, Detection Methods, Sampling and Yield Top 10 by Tech Drive to Zero Actions Problem Solving Inspection, Risk Reduction Process Yield 4C, 3X5 Why, Engineering 5S Operational Cost CPP, Productivity, Excellence MOOI 5S, Lot Lo
Slide 101: Global Operations - Manufacturing High Level Strategy
GLOBAL OPERATIONS - MANUFACTURING HIGH LEVEL STRATEGY Materials and Epi Wafer Fab Short Term: Expansion of Short Term: Expansion of capacity on Durham campus Power capabilities in Durham for initial growth of 200mm while transitioning to Mohawk Valley 200mm fab 2023/2024: Expand Power Materials and
Slide 102: Silicon Carbide Substrate Capacity
SILICON CARBIDE SUBSTRATE CAPACITY Silicon Carbide Substrate Capacity (sq. cm.) 200mm established, well positioned to support MVF expansion Ongoing customer demands for both power and RF substrates are driving 150mm volumes into the future FY2022 FY2024 FY2026 Materials to grow from 167k sq. ft. to
Slide 103: Materials Expansion
MATERIALS EXPANSION Existing Footprint Future Footprint WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 103
Slide 104: SiC MOSFET Bare Die Manufacturing Locations
WOLFSPEED SIC MOSFET – BARE DIE MANUFACTURING LOCATIONS NORTH CAROLINA WAFER FABS NEW YORK WAFER FAB RTP Fab: 1,495m2 World’s First 200mm SiC Fab 3028 E Cornwallis Road Durham, NC MFT and Schottky, 150mm RF, 100mm MVF fab: 14,100m2 Technology Drive Marcy, NY Production quals Q3 FY22 MFT and Schottky
Slide 105: NC Fab - New Leadership and Call to Action in FY22
NC FAB - NEW LEADERSHIP AND CALL TO ACTION IN FY22 FOCUS ON STRATEGIC LINE ENHANCED EARLY RETURNS UTILIZATION MANAGEMENT ENGAGEMENT ARE ENCOURAGING OF KEY TOOLS Established run plans for Empowered supervisors Significantly improved Established a key tool list bottleneck toolsets and and leads to mak
Slide 106: Power MOSFET Supply – MVF Ramp
POWER MOSFET SUPPLY – MVF RAMP COGS Impact Wolfspeed Power Wafer Capacity Yield Benefit Automation (Labor/CT) FY22 Durham 150mm Scale Benefits FY24 MVF 150mm Eq Drivers & Assumptions • Fab in final stages of facilities fit out with first learning cycles to be started by end of year and production st
Slide 107: Mohawk Valley Fab: Construction Update
MOHAWK VALLEY FAB: CONSTRUCTION UPDATE Central Utility Building (CUB) CUB build complete and handed over to Wolfspeed Mechanical systems providing air, water, and exhaust to fab complete Bulk gases onsite to support startup activities Fab Class 100 cleanroom on Level 3 is complete and meets environm
Slide 108: Mohawk Valley Fab: Automation
MOHAWK VALLEY FAB: AUTOMATION https://teams.microsoft.com/_#/files/Systems%20Automation?threadId=19%3Aa279766ed2034d958a86ebd36b6883ee%40thread.sky pe&ctx=channel&context=MVL%2520AMHS%2520Videos&rootfolder=%252Fsites%252FNFStartup%252FShared%2520Documents%25 2FSystems%2520Automation%252FFiles%252Fvi
Slide 109: Driving SiC Manufacturing Cost Structure
DRIVING SIC MANUFACTURING COST STRUCTURE Invested in the resources to drive significant yield and cycle-time improvements over the next 3 years MOSFET Chute Yield Key Operational Investments • Hired experienced silicon industry leaders % Chute Yield • Implementing factory automation and yield/big da
Slide 110: Why We Win – Capacity
WHY WE WIN – CAPACITY • Wolfspeed’s Leadership in RF Operational OnePack Game Invested to footprint culture changing drive strategy supporting automation significant maximizes operations and scalability yield and revenue and excellence, that is cycle-time gross margin automotive bending the improvem
Slide 111: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 111
Slide 112: Long-Term Outlook
Long-Term Outlook NEILL REYNOLDS | EVP & CFO WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.
Slide 113: Key Financial Highlights & Takeaways
KEY FINANCIAL HIGHLIGHTS & TAKEAWAYS Three stages to Business and portfolio Demand curve achieve our target is focused and work steepening; pipeline model: Transform, continues opportunities Ramp, Execute expanding; continuing to capture design-ins Investments increase FY2026 outlook reflects scale
Slide 114: Market Is Rapidly Growing
MARKET IS RAPIDLY GROWING - UNIQUELY POSITIONED TO CAPTURE SHARE Automotive Device Opportunity in FY2026 Device Market Outlook (M) Inverter $8,900M OBC DC/DC $6,600M Drivers & Assumptions $4,300M • Total Device market growing with a 20% CAGR • Automotive is the fastest growing market with a 30% CAGR
Slide 115: Wolfspeed Revenue Growing Faster Than the Market
WOLFSPEED REVENUE GROWING FASTER THAN THE MARKET Revenue Outlook (M) ~$2,100M+ 30%+ CAGR Drivers & Assumptions ~$1,500M • Revenue driven by strength across all product lines led by devices • Devices expected to capture increasing share of revenue between FY24 - FY26 • Device revenue driven by strong
Slide 116: Global Semiconductor Powerhouse
GLOBAL SEMICONDUCTOR POWERHOUSE; WELL-POSITIONED TO CAPITALIZE ON INCREASING DEMAND FOR EVs, INDUSTRIAL AND 5G ~$2.1B+ ~$1.5B Broad ~$0.5B $0.7B - $1B¹ Adoption Accelerated Modest Inflection Growth Growth Point FY2019 - 2021 FY2022 - 2023 FY2024 FY2026+ Transform Ramp Execute $4.5B+ design-ins annou
Slide 117: Mohawk Valley Scale and Yields Drive Gross Margin
MOHAWK VALLEY SCALE, 200mm DIAMETER CHANGE, AND IMPROVING YIELDS TO DRIVE GROSS MARGIN PERFORMANCE Gross Margin (Non-GAAP)¹ 50% - 54% Drivers & Assumptions ~50%² • Gross margin transition between FY22 and FY24 Mid 30% - 40%+ supported by 200mm transition from Durham to MVF Expand • MVF to have 50% l
Slide 118: Clear Path to Gross Margin Expansion
CLEAR PATH TO GROSS MARGIN EXPANSION 50%-54% 50%¹ Mid 30%s FY22 Optimize Durham Wafer Diameter Power: MVF FY24 Continued FY26 Change Cost/Scale/Yields Performance Drivers & Assumptions New leadership in Durham fab driving Benefits realized of shift to 200mm for MVF cost/scale/yield improvements oper
Slide 119: Revenue Expansion Provides Operating Leverage
REVENUE EXPANSION PROVIDES OPERATING LEVERAGE AS INVESTMENT PAYBACKS REALIZED OPEX % of Revenue (Non-GAAP)¹ 60% +36% pts Drivers & Assumptions operating efficiency • Investments in R&D and S&M continues to increase through FY26 ~24% • Increased operational efficiency via digital transformation and o
Slide 120: Capital and Cash Flow
CAPITAL AND CASH FLOW Peak Investment Period CAPEX FREE CASH FLOW¹ $566M 20%+ $475M FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 Drivers & Assumptions FY21 and FY22 represents peak investment Investment generates $1.5B+ in revenue and Accelerating demand curve
Slide 121: Wolfspeed Target Operating Model
WOLFSPEED TARGET OPERATING MODEL FY2024 FY2026 Drivers & Assumptions Revenue $1.5B $2.1B • Positioned to capitalize in key growth areas following significant period of investment CAGR vs 2021 40%+ 30%+ • Transition to MVF markedly improves gross margin trajectory GM% ~50% 50-54% • Powerful secular t
Slide 122: Why We Win - Successfully Transformed
WHY WE WIN - SUCCESSFULLY TRANSFORMED INTO A LEADING GLOBAL SEMICONDUCTOR POWERHOUSE Invested $1B+ Multi-decade Market leader Outlook in the last two growth in terms of reflects high years to opportunity knowledge growth, high cement our within both and capacity, margin, and position as a devices an
Slide 123: We harness the power of Silicon Carbide
We harness the power of Silicon Carbide to change the world for the better WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc. 123
Slide 124: Question & Answer Session
QUESTION & ANSWER SESSION
Slide 125: Conversation Kiosks
CONVERSATION KIOSKS Our Technology Automotive Capacity Device Pipeline, Industrial People Leadership Trends Expansion & Distribution 1 2 3 4 5 Margaret Chadwick John Palmour Lisa Fritz Rex Felton Thomas Wessel Tamara Pearce Jay Cameron Kenric Miller Missy Stigall Steven Fera Jim Milligan Ole Gerkens
Slide 126: Appendix
APPENDIX
Slide 127: Non-GAAP Reconciliation: Gross Margin %
NON-GAAP RECONCILIATION: GROSS MARGIN % FY2022-FY2023 FY2024-FY2025 FY2026+ GAAP Gross Margin% Low 30s to 40%+ ~49% 49%-53% Adjustments: Stock-based compensation 2% 1% 1% Non-GAAP Gross Margin% Mid 30s to 40%+ ~50% 50%-54% FY2022 FY2024 FY2026 GAAP Gross Margin% Low 30s 49% 49%-53% Adjustments: Stoc
Slide 128: Non-GAAP Reconciliation: Operating Expense % of Revenue
NON-GAAP RECONCILIATION: OPERATING EXPENSE % OF REVENUE ($M) FY2021 FY2026 GAAP OPEX % 91% ~28% Adjustments: Stock-based compensation 7% 3% Amortization or impairment of acquisition-related intangibles 3% 1% Abandonment of long-lived assets 14% 0% Factory optimization restructuring and start-up cost
Slide 129: Non-GAAP Reconciliation: EBIT
NON-GAAP RECONCILIATION: EBIT ($M) FY2024 FY2026 GAAP Net Income ~$559 $297 - $402 Adjustments: Stock-Based Compensation COGS $15 $21 OPEX $60 $63 Total Stock-Based Compensation $75 $84 Amortization or impairment of acquisition-related intangibles $15 $21 Accretion on convertible notes, net of capit
Slide 130: Reconciliation: Free Cash Flow
RECONCILIATION: FREE CASH FLOW ($M) FY2024 FY2026 Cash Provided by Operating Activities $475 $720 Purchases of PP&E and Patents, Net of Reimbursements ($250) ($300) Free Cash Flow ~$225 ~$420 Free Cash Flow% of Revenue ~15% ~20%+ WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2021 Wolfspeed, Inc. All rights
Slide 131: Non-GAAP Adjustments
NON-GAAP ADJUSTMENTS Wolfspeed excludes the following items from one or more of its non-GAAP measures when applicable: • Stock-based compensation expense. This expense consists of expenses for stock options, restricted stock, performance stock awards and employee stock purchases through its Employee
Slide 132: Thank You
THANK YOU