Slide 1: Wolfspeed FY24 Q4 Earnings
Wolfspeed FY24 Q4 Earnings AUGUST 21, 2024 WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 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: Forward-Looking Statements and Non-GAAP Measures
. FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Note on Forward-Looking Statements The schedules attached to this presentation are an integral part of the presentation. This presentation contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause
Slide 3: Wolfspeed at a Glance
WOLFSPEED AT A GLANCE With the sale of the RF business, Wolfspeed is now the world’s only pure-play, vertically integrated silicon carbide company By the Numbers $201 million The JP: world’s largest and only Multi-billion of planned #1 $27B+ FY24 Q4 revenue dedicated 200mm silicon carbide capacity i
Slide 4: Mohawk Valley Update
MOHAWK VALLEY UPDATE Key Takeaways Mohawk Valley Fab Revenue • FY24 Q4 revenue contribution of $41M $50M-$60M • FY25 Q1 targeted revenue of $55M at the midpoint • Achieved 20% utilization in June 2024, ahead of schedule $41M • On track to achieve 25% utilization by end of $28M September 2024, a quar
Slide 5: Materials Update
MATERIALS UPDATE Building 10: Durham, NC • On track to support 25% utilization at Mohawk Valley by end of September • Expect to support ~30% utilization at Mohawk Valley in the March 2025 quarter The JP: Siler City, NC • Powered up initial furnaces last quarter • Actively qualifying crystals this qu
Slide 6: Power Device Footprint Will Help Capture Massive Market Opportunity
POWER DEVICE FOOTPRINT WILL HELP CAPTURE MASSIVE MARKET OPPORTUNITY BY END OF THE DECADE Key Takeaways Cumulative Power Device Design-Ins ($M) 1 ~$27,200 • $2.0B of Power Device Design-Ins in FY24 Q4 • ~50% of Design-Ins for 800-Volt EV ~$20,300 applications, which necessitate higher power requireme
Slide 7: Strong Conversion from Design-Ins to Design-Wins Since FY20
STRONG CONVERSION FROM DESIGN-INS TO DESIGN-WINS SINCE FY20 EV-dominant Design-Win pipeline capitalizes on robust EV TAM while providing greater insight into future revenue due to longer design cycles FY24 YTD Power DWINs by Application Key Takeaways • $0.5B of Power Device Design-Wins in FY24 Q4 –
Slide 8: Financial Performance – Revenue
FINANCIAL PERFORMANCE – REVENUE1 $203M $209M $201M $201M $197M 107 108 102 105 101 96 96 101 99 96 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 Materials Devices Key Takeaways FY24 Q4 Drivers • Results slightly above midpoint of June guidance • $41M contribution from Mohawk Valley, up 46% Q/Q and an expo
Slide 9: FY24 Q4 Financial Performance – EPS & Margins
FY24 Q4 FINANCIAL PERFORMANCE – EPS & MARGINS1 Key Takeaways • Non-GAAP gross margin slightly above the midpoint of June guidance 5% – FY24 Q4 includes $24.0M, or approximately 1,200 bps, of underutilization Non-GAAP Gross costs from MVF – Gross margin negatively impacted by 500 bps due to incident
Slide 10: Design-Ins Deliver Long Tail Revenue Opportunity
DESIGN-INS DELIVER LONG TAIL REVENUE OPPORTUNITY • Design cycles, while long, are sticky and create multi-year revenue streams • 800-Volt EV Design-Ins represented ~50% of $2.0B total for the quarter • EV Design-Wins typically mature over a five- to seven-year period 2-4 Years Design Cycle Illustrat
Slide 11: Taking Proactive Steps to Improve Capital Structure
TAKING PROACTIVE STEPS TO IMPROVE CAPITAL STRUCTURE Wolfspeed has access to several different options that enable the Company to end FY2025 above $1B minimum cash target Significant Reduction in CapEx over Next Two Years Key Takeaways $2.1B • FY25 CapEx guidance reduced by $200M – Majority of future
Slide 12: FY25 Q1 Guidance
FY25 Q1 GUIDANCE Revenue $185M - $215M Non-GAAP Gross Margin1 (2)% - 6% Non-GAAP OpEx1 $124M - $129M Non-GAAP Net Loss1 $(138)M - $(114)M Guidance Drivers Upcoming Milestones • $50M - $60M revenue contribution from Mohawk Valley • Mohawk Valley Fab • Revenue partially offset by the incident at Durha
Slide 13: Appendix
APPENDIX
Slide 14: Non-GAAP Reconciliation – Gross Margin
NON-GAAP RECONCILIATION – GROSS MARGIN Three months ended Fiscal years ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 GAAP gross profit $2.4 $58.7 $77.4 $242.9 GAAP gross margin percentage 1% 29% 10% 32% Adjustments: Stock-based compensation expense 8.5 3.5 28.5 20.3 Non-GAAP gross pr
Slide 15: Non-GAAP Reconciliation – EPS
NON-GAAP RECONCILIATION – EPS1 Three months ended Fiscal years ended June 30, 2024 June 25, 2023 June 30, 2024 June 25, 2023 GAAP net loss ($174.9) ($91.2) ($573.6) ($260.5) Adjustments: Stock-based compensation expense 21.0 16.4 84.9 72.7 Amortization of acquisition-related intangibles 0.2 0.4 1.1
Slide 16: Non-GAAP Reconciliation – Gross Margin Outlook
NON-GAAP RECONCILIATION – GROSS MARGIN OUTLOOK Three Months Ended September 29, 2024 GAAP gross margin from continuing operations outlook range (7)% to 2% Adjustments: Stock-based compensation expense 5% to 4% Non-GAAP gross margin from continuing operations outlook range (2)% to 6% WOLFSPEED CONFID
Slide 17: Non-GAAP Reconciliation – Operating Expenses Outlook
NON-GAAP RECONCILIATION – OPERATING EXPENSES OUTLOOK Three Months Ended (in millions of U.S. Dollars) September 29, 2024 GAAP operating expenses from continuing operations outlook $148 to $153 Adjustments: Stock-based compensation expense (18) Project, transformation and transaction costs (6) Total
Slide 18: Non-GAAP Reconciliation – Net Loss Outlook
NON-GAAP RECONCILIATION – NET LOSS OUTLOOK Three Months Ended (in millions of U.S. Dollars) September 29, 2024 GAAP net loss from continuing operations outlook range ($226) to ($194) Adjustments: Stock-based compensation expense 26 Amortization of discount and debt issuance costs, net of capitalized
Slide 19: Glossary of Terms
GLOSSARY OF TERMS Design-Ins: Design-Ins are customer commitments to purchase our products and are one of the factors we use to forecast long-term demand and future revenue. To meet the qualification of a Design-In, the customer provides us with documentation (e.g., a letter of intent, statement of
Slide 20: Let's Reimagine a More Sustainable World. Together.
LET’S REIMAGINE A MORE SUSTAINABLE WORLD. TOGETHER. WOLFSPEED CONFIDENTIAL & PROPRIETARY © 2024 Wolfspeed, Inc. All rights reserved. Wolfspeed® and the Wolfstreak logo are registered trademarks and the Wolfspeed logo is a trademark of Wolfspeed, Inc.