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Z NXP Semiconductors Secure Connections for a Smarter World Company Presentation April 2014

NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

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Page 1: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

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NXP Semiconductors Secure Connections for a Smarter World Company Presentation April 2014

Page 2: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

NXP Semiconductors ! The electronics industry is being driven by four mega trends that are helping shape our society:

Energy Efficiency, Connected Devices, Security and Health. Connecting to these trends and enabling Secure Connections for a Smarter World, NXP Semiconductors (NASDAQ: NXPI) creates solutions for the Connected Car, Cyber Security, Portable & Wearable and the Internet of Things.

! Through our innovations, customers across a wide variety of industries – including automotive, security, connected devices, lighting, industrial and infrastructure – are able to differentiate their products through features, cost of ownership and/or time-to-market. With operations in more than 25 countries, NXP posted revenue of $4.82 billion in 2013. Additional information can be found on www.nxp.com

Secure Connections for a Smarter World      

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Connected Car Cyber Security Portable & Wearable Internet of Things

Page 3: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Strong innovation track record Our innovations are used in a wide range of applications (1/2)

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Automotive Identification Consumer Computing

! In-vehicle networking ! Car access & immobilizers ! Car entertainment ! Solid State Lighting ! Telematics ! Speed & Angular Sensors

! Secure identity ! Secure transactions ! Tagging & authentication

! TV ! Satellite, Cable, Terrestrial

and IP set-top boxes ! Satellite outdoor units

! Tablet PCs ! Note-/Netbooks ! Desktops ! Power supplies ! Monitors and peripherals

Page 4: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Strong innovation track record Our innovations are used in a wide range of applications (2/2)

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Wireless infra Lighting Industrial Mobile

! Wireless base stations ! Point-to-point ! CATV infrastructure ! Broadcasting

! Lighting drivers (CFL, LED)

! Lighting networks ! Backlighting

! Smart grid ! White goods ! Home / building automation ! Power supplies

! Mobile devices ! Portable power supplies ! Personal health ! Chargers

Page 5: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Fueling Industry Leading Growth NXP HPMS Growth at Least 50% Faster Than Market

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-

1,500

3,000

4,500

6,000

7,500

$MM

>1.5x Industry Growth

CORE Product Revenue EMERGING Product Revenue

Internet of Things

2010

NFC

Cyber Security

Car-2-X

HPRF

HPMS Solutions

Auto

Healthcare

Mobile

High Speed Interface

Page 6: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Identification

Portable and Computing

Automotive

Infrastructure and Industrial

2010 2011 2012 2013 2010 2011 2012 2013

Note: 1.  As of 2Q12, prior end market definitions for “Wireless Infrastructure, Lighting and Industrial” and “Mobile, Consumer and Computing” have been redefined to align internal management organization.

All prior periods have been realigned to conform with new end market definitions.

9% Y-Y

15% Y-Y

Consistently outgrowing the industry ($M)(1)

2010 2011 2012 2013 2010 2011 2012 2013

32% Y-Y

17% Y-Y

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Page 7: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Revenue ($M)

Non-GAAP Operating Margin

Non-GAAP Gross Margin

Adj. EBITDA Margin

Note: 1.  As of 1Q13, product classification for HPMS end markets “Infrastructure and Industrial” and “Portable and Computing” in addition to segment “Standard Products” have been redefined to reflect underlying

market dynamics, product complexity and organizational management. Prior periods have been realigned to conform with new end market definitions. Non-GAAP amounts exclude stock-based compensation.

Consistently outgrowing the industry ($M)(1)

Recent Quarterly Business Trends

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Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14

Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14

Page 8: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Identification 28% Product Revenue in 2013(1)

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! Digitization of government documents ! Global roll-out of chip-based bank cards ! Unified transit payment platforms ! Secure mobile payments and access ! Authentication of products and people

! SmartMX secure microcontroller ! Secure Java-card operating system ! Zero and low-power RF interfaces ! MiFare ticketing and access solutions ! Complete document reader solutions ! Low-power RFID tagging solutions

! #1 eGovernment documents ! #1 Chip-based banking cards ! #1 Transit system products ! #1 Mobile transaction solutions ! #1 RFID tags and labels ! #1 Contactless infrastructure

Secular Trends Driving Growth

Market Position

Products

Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

NXP Identification Group Growth ($M)

Potential Identification Market Growth ($M)(1)

2012 2013E 2014E 2015E

16% CAGR

2010 2011 2012 2013

30% CAGR

32% Y-Y

Page 9: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Potential Automotive Market Growth ($M)(1)

Automotive 22% Product Revenue in 2013(1)

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! Secure connected car – Car-to-X management ! Demand for increased safety (ADAS) ! Adoption of global digital broadcast ! Increased data-flow throughout the car ! Increased intelligence to key ! Energy efficiency and CO2 reduction ! Complexity and long-life cycle demands

Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

! SoC infotainment and SDR systems ! CAN/LIN, FlexRay and Ethernet PHY ! RF passive keyless and proximity entry ! ABS, angular and temperature sensors ! LED interior and exterior lighting ! Car-to-X communication systems

! #1 Auto infotainment systems ! #1 In-vehicle networking ! #1 Auto access - immobilizers ! #3 Magnetic sensors

Secular Trends Driving Growth

Market Position

Products

NXP Automotive Group Growth ($M)

2010 2011 2012 2013

3% CAGR

9% Y-Y

2012 2013 2014E 2015E

4% CAGR

Page 10: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

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Portable and Computing 10% Product Revenue in 2013(1)

! Increased demand energy efficiency ! Market shift toward 32-bit ARM MCU ! Adoption of multi-protocol interfaces ! Low power sensor management ! Emergence of wireless charging

! Multi-protocol interface products ! 32-bit ARM MCU ! Custom SoC (MCU w/ mixed A/D)

! #1 Multi-protocol interface products ! #11 32-bit ARM MCU

Secular Trends Driving Growth

Market Position

Products

Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

2010 2011 2012 2013

8% CAGR

17% Y-Y

Potential Portable and Computing Market Growth(1)

Portable and Computing Group Growth ($M)

2012 2013 2014E 2015E

4% CAGR

Page 11: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Infrastructure and Industrial 16% Product Revenue in 2013(1)

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! Increased cellular data consumption ! Adoption of energy efficient lighting ! Low-Power RF- Connectivity (“IoT”) ! Increased demand for mobile charging ! Increased demand for Audio quality

! HPRF power amplifiers ! Small signal LNA and RF discrete ! AD/DC power controllers and regulators ! LED lighting drivers ! IoT ultra-low power RF-connectivity ! Smart mobile audio solutions

! #1 LED lighting drivers ! #1 Small-signal RF ! #1 RF transceivers (silicon tuners) ! #2 HPRF power amplifiers ! #3 Small signal (mobile FEM) ! #4 AC/DC power adapters

Secular Trends Driving Growth

Market Position

Products

Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

2010 2011 2012 2013

3% CAGR

15% Y-Y

NXP Infra. and Industrial Group Growth ($M)

Potential Infra. and Industrial Market Growth ($M)(1)

2012 2013 2014E 2015E

11% CAGR

Page 12: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Standard Products 24% Product Revenue in 2013(1)

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Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

! Scale: ̶  70B units/yr. manufactured ̶  Material purchasing power

! Reach - #2 supplier in WW distribution ! Quality - Automotive qualified

! General purpose logic (“GPL”) ! Small signal discrete ! Signal conditioning ! Low-voltage power MOSFET

! #1 Standard products (overall) ! #2 General purpose logic ! #2 Small signal discrete ! #2 Signal conditioning

Benefits to Customers of Standard Products

Market Position

Products 2010 2011 2012 2013

0% CAGR

(2%) Y-Y

Potential Standard Product Market Growth(1)

NXP Standard Product Growth ($M)

2012 2013 2014E 2015E

2% CAGR

Page 13: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Leveraging Secular Trends and Unique Capabilities

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Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

! Security ! Connectivity ! Mobility ! Energy efficiency

! Large with long life cycles ! Growth in excess of overall market ! Broad and diverse customer base ! High barrier to entry ! “Sticky” customer relationships

! Strong IP and patent portfolio position ! Broad mixed signal product portfolio ! Differentiated process technology ! Acknowledged leadership capability in

Low-power RF; cryptography; Mixed-signal MCU system design

Secular Trends and Demands Driving Growth

NXP Competitive Advantages

Characteristics of HPMS Focused Markets

Potential Future Market Growth ($M)(1)

Addressable Market Growth ($M)(1)

4% Y-Y

2010 2011 2012 2013

1% CAGR

2012 2013 2014E 2015E

6% CAGR

Page 14: NXP company presentation 2014 April · Wireless infra Lighting Industria Mobile ! Wireless base stations ! ... Emergence of wireless charging ! ... NXP_company_presentation_2014_April.pptx

Follow us:

Contact us for more information

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@nxp /nxpsemiconductors /nxpsemi

/nxpsemiconductors blog.nxp.com our campaigns: www.nxp.com/campaigns

CUSTOMERS INVESTORS MEDIA CAREERS

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