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@ 2011 RDA Microelectronics, Inc.The information contained herein is subject to change without notice
RDA Microelectronics
Oct 2012
DisclaimerThe information contained in our presentation is intended solely for your personal
reference and is not an offer to buy or sell or a solicitation of an offer to buy or sell
any security or instrument or to participate in any trading strategy. We make no
representation or warranty (express or implied) as to the correctness or
completeness of the presentation. The presentation may contain projections and
forward-looking statements that reflect our current views with respect to future events
and financial performance. These views are based on assumptions subject to various
risks. No assurance can be given that future events will occur, that projections will be
achieved, or that our assumptions are correct. Actual results may differ materially
from those projected. We undertake no obligation to update or revise any forward-
looking statements to reflect subsequent events or circumstances. These materials
are highly confidential, are being given solely for your personal use and may not be
copied, reproduced, redistributed or passed on, directly or indirectly, to any other
person in any manner.
2
RDA Overview
3
Q2 2012 Financial Highlights
Corporate Overview Global End Markets
2007 2008 2009 2010 2011
114% CAGR 2007-2011RDA Revenue ($MM)
$13.7
$55.5
$118.4
$191.2
$288.9
• Founded in 2004 - IPO Nov 2010
• Broadest handset product offering ranging from baseband to PA
• Market share leader of China handset manufacturer market
• 1,000+ Chinese and international customers
• RF and mixed-signal wireless SoC semiconductors for cellular, connectivity and broadcast
• Gaining share, penetrating Tier 1 OEMs
• Targeting 2G, 3G, smartphone, satellite and consumer electronics applications
• Baseband market entry expands TAM
• Revenue $94.4 million, up 40% YoY
• Margins: 31% gross, 16.8% operating
• Non-GAAP net income $15.2 million, EPS $0.32 per diluted ADS
• $159 million cash; no debt
Investment Highlights
4
Proven Capability to Become Market Share Leader Across All Key Products • #1 provider of Power Amplifier, Bluetooth, FM Tuner, DVB-S Tuner in China • Strong track record of share gains against competitors in multiple markets• Applying same successful strategy to baseband market
World-Class Technology • Broad technology capabilities and IP portfolio• Best-in-class die size• Advanced process technology migration and rapid design cycles
Efficient and Profitable Operating Model• Highest revenue per employee among fabless IC companies• Strong revenue growth and operating leverage drive profits and cash flow
Strong Growth Platform• Expanding TAM with large growth opportunities in emerging markets• Increasing addressable silicon content per handset• Expanding penetration of global Tier 1 OEMs• Ability to extend into new markets successfully
8080
812 812 812
655
157
664
148
601
9655
60
Chinese Manufacturers-The largest handset provider in the world
Source: iSuppli
810+MM Handsets By Chinese Manufacturers
(Units in MM)
5
Developed Markets ~26%
Other Emerging Markets ~29%
2012E Global Mobile Handset Shipments
Chinese Manufacturers ~45%Export
Domestic
TD-SCDMA
WCDMA
CDMA
GSM/GPRS/EDGE
Feature Phone
Smart Phone
Increasing Silicon Content
6 Note: ASP as of today
$2.00 - $2.30 per unit $9.00 - $11.00 per unit
Smartphone
Baseband
RF Front End Module
+WiFi/Bluetooth/FM
+CMMB
+Transceiver
2G Feature Phone
Baseband
RF Front End Module
+Bluetooth
+FM+
Transceiver
# 1 in DVB–S Tuner
Entered: 2007
# 1 in Power Amplifier
Entered: 2007
China Market Share Leader
7
Share of China Branded and White Label MarketShare of China Branded and White Label Handset Market
# 1 in FM Tuner
Entered: 2007
7Source: iSuppli, Q2012; percentages are approximate
# 1 in Bluetooth Chipset
Entered: 2009
20%
44%
#3#1
24%
#2#1
40%
Q2 ‘121H ‘10 Q2 ’121H ‘10
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
RDA BRCM MRVL SPRD MTK SWKS RFMD
Why RDA Wins
8
• Geographic proximity
• Rapid product cycles
• Quick design response
• Optimized performance and cost balance
Vs. US/EU competitors
• Geographic proximity
• Stronger RF R&D
• Best RF integration
Vs. Taiwan competitors
• Economies of scale
• Superior RF performance
• Best RF integration
• 55nm technology
• Strong balance sheet
Vs. Chinese Local
Strong Operating Performance
•$1.1 million revenue per employee vs average $530,000
•Solid profit and cash flows fund R&D and process technology advancements
Revenue Per Employee
Baseband Product Roadmap
92012 2013
RDA8853Single Chip260MHzGSM/GPRS3-SIM with PSRAM andBT/FM Built-In
RDA8852 Single Chip260MHzGSM/GPRS3-SIM with PRAM Built-In
RDA8851Single Chip260MHzGSM/GPRS3-SIM withPSRAMand BT/FM on same die
3G
2G/2.5G
40nm55nm
RDA8810EDGESmart Phone
RDA8850WCDMA / EDGE Smart Phone
RDA8860WCDMA/TD-SCDMA/EDGESmart Phone
2.75G
2014
28nmRDA8880Quad core AP/ High performance
40nm
Product Roadmap (Ex. Baseband)
Cellular2012
BroadcastConnectivity
Wi-Fi + BT + FM + GPS Combo
Wi-Fi + BT + FM Combo
2013
RF Front Module (TD-SCDMA)
RF Front End Module (GSM)
Multi Mode Multi Band Front End Module
QFN5*5
QFN1*1.5
5*5 GSM/EDGE 1st
55nm/QFN 6*6/802.11.b/g
Bluetooth Earphone
WCDMA PA
55nm,802.11.b/g/n
CMMB SOCQFN5*5/tuner+demod
LNB Down Converter QFN4*4/3rd generation
DVB-S Tuner + Demodulator + Decoder
Walkie-Talkie55nm/digital and analog interface
10 Sample date
LGA5*5
800MHz/Band 5
GPS LNA
Wi-Fi/BT Front End Module3*3/GaAs HBT
55nm/BT3.0/Wi-Fi direct/802.11.b/g/n
0.11um
Hybrid Tuner
40nm/1st 40nm/2nd
QFN5*5/cost down
2100MHz/Band 1
6*6;GSM/EDGE PA+TD PA+ Switch SP7T/cost down
5*5 GSM/EDGE 2nd
3*3/SOI
LTE TransceiverTDD/FDD
55nm,BT4.0
GSM/EDGE PA+SP7T,GSM+EDGA/WCDMA
Switch QFN 2*2 QFN 1.6*1.6
1900MHz/Band2900MHz/Band8
Filter integrated
QFN 1.5*1.5
55nm,BT2.1
Wi-Fi40nm/802.11ac 40/28nm/802.11ad
3rd/3D capability
2014
DTV SOC55nm/2nd 55nm/3rd
Most Advanced IntegrationCompany RDA Company A Company B
Platform 8851 653X 6250
Size 10mm 16.5mm 19.1mm
Integration
Integrate TRx + BB + PMIC + BT + FM SOC
+ Class-K Audio Amp, Save Saw
BB+
SIP TRx
BB+BT+FM+
SIP TRx+
Save Saw
Chipset Single chip SIP, 2 dies SIP, 2 dies
BOM Integrated 32k crystal External 32k crystal Integrated 32k crystal
Process 55nm SOC 40nmBB +152nm TRx
55nmBB +110nm TRx
CPU 260MHz 240MHz ~200MHz
11
Motorola
Samsung
ZTE
Tianyu
TCL/Alcatel
Oppo
Lenovo
Konka
Huawei
Guohong
Goinee
BBK
Wingtech
TINNO
SIM
Diwave
Huaqin
Longcheer
Huiyue
Hexing
Eidolan
CKT
Strong Customer Base
Source: Company Data, iSuppli, 1H 201012
With more than 1,000+ customers, RDA works with every major handset manufacturer in China
Top Chinese Handset Brands Top Chinese Independent Design Houses Global Tier-1 OEMs
TD Smartphone Brands
ZTE
Samsung
RIMM
Sony
Huawei
Lenovo
Tier One Expansion+ + + =
Strong Growth Drivers
2011 Revenue
New Products
Market Share Gain
Global Tier One
> $1 Billion
US$MM
$110
$289
• BT: 36% to >50%• PA: 39% to >50%
• Baseband• WiFi+BT+FM+GPS• WCDMA PA+GSM Edge PA+Switch• Mobile TV• Transceivers• 218MM 3G units in
China by 2015 based on iSuppli
• Korea TAM• 300MM units/year
Profitable Core Business
New Product Introductions
Continued Share Gains
Revenue Growth Opportunity
13
$150-$200
$50-$80 > $1 Billion
$550-$600
Financial Performance
High Revenue Growth
Annual Revenue
CAGR 114%
15
Quarterly Revenue
Robust Quarterly Growth
($MM)
16
Q2 2012Revenues - Applications
Product and Customer Diversity
Cellular
Broadcast Connectivity
Q2 2012Revenues - Customers
Top 1038%
All Others62%
17
(%)
Temporarily Drag by Addition of Baseband Business
Quarterly Gross Margin
18
(*) As a result of the consolidation of the lower margin baseband revenue from our acquisition of Coolsand baseband
Healthy Balance SheetAs of June 30, 2012
19
June 30 2012 March 31 2012
Cash and Investment ($MMs) $159.0 $142.9
Total Debt ($MMs) -- --
Net Cash ($MMs) $159.0 $142.9
Net Cash / ADR ($) $3.49 $3.31
Accounts Receivable ($MMs) $21.5 $24.1
Receivable Days 22 42
Inventory ($MMs) $44.6 $29.3
Inventory Days 51 64
Accounts Payable Days 61 65
Cash Conversion Cycle 12 41
Shareholder Equity ($MMs) $223.5 $210.9
Book Value / ADR ($) $4.91 $4.89
Q1 2012 Q2 2012 Q3 2012 Guidance
Revenue ($MMs) $72.0 $94.4 $100- $110
Gross Margin 35.9% 31.0% (2) 30.8%-31.2%
R&D % of Revenue (1) 9.8% 10.5%
SG&A % of Revenue (1) 3.4% 3.8%
Operating Margin (1) 21.2% 16.8%
Net Income ($MMs) (1) $15.1 $15.2
2012 Results and GuidanceAs of Aug 7, 2012
20
(1) R&D% of Revenue, SG&A % of Revenue, Operating Margin and Net Income are Non-GAAP number(2) As a result of the consolidation of the lower margin baseband revenue from our acquisition of Coolsand baseband
Summary
21
China’s Market Share Leader Across Multiple Products • #1 provider of Power Amplifier, Bluetooth, FM Tuner, DVB-S Tuner products• Diverse products sold to more than 600 customers• World-class technology driving share gains
Large and Growing Markets • Increasing TAM through rapid product family expansion• Significant growth opportunities in 3G and smartphones• Increasing addressable silicon content per handset• Expanding penetration of global Tier 1 OEMs
Proven Profitable Growth Model• Highest revenue per employee among fabless IC companies• Strong revenue growth• Highly efficient operating model • GAAP profitable since 2008, strong cash flows• $159 million cash position to support R&D and growth initiatives
Appendix
Appendix 1
Misconceptions = RDA Advantage
23
China technology not world-class
• The most highly integrated BB in the world• Leading RF and mixed signal designers• Advanced process migration ahead of competition• Proven single chip solutions• Working with market leaders across all products
• China handsets taking share from tier ones• 3 out of 4 phones ship to emerging markets• Mobile utilization in these regions driving volume
• Government supporting transition to 3G• TD is China 3G standard adopted by China Mobile• Increased sales driven by features (WiFi, Mobile TV)• Smartphone will double market again
• Use PriceWaterHouse for US GAAP audited financials since 2005
• No material weakness on internal controls• Compliance with SOX Section 404
2G is a dying market
White label market won’t transition to 3G or smartphone successfully
Lack of financial controls in China
24
130nm
Bluetooth Example
Time
Bluetooth
Bluetooth + FM
Sampling
130nm
110nm
110nm
130nm
Development Time
110nm
20112010200920082007
RDA 5868
RDA 5868+
RDA 5868E
RDA 5868H
55nmRDA 5875
55nm
RDA 5870
RDA 5870E
RDA 5876
Appendix 2
Rapid Product Development Cycles
24
Sampling
130nm
Mass Production
Example: Bluetooth
2009 2010 2011
110nm
55nm
RDA 5868RDA 5868+RDA 5888S
RDA 5868E 2nd GenRDA 5868H 2nd Gen cost downRDA 5872 3rd GenRDA 5888E
RDA 5876RDA 5888H
Appendix 3
Accelerating Process Technology Migration
25
Rapid Product Family Ramp Expands TAM
5 9 18 26
300M Units Over 3B UnitsTAM
Connectivity
• Bluetooth• Bluetooth + FM• WiFi + Bluetooth + FM• Walkie Talkie
Cellular Broadcast
• FM Radio• Analog TV / CMMB• DVB-S Tuner• LNB Down Converter
• Front-end Module(PA + Switch)
• Transceiver• Baseband
Appendix 4
Diverse Product Portfolio
26
36 48
Appendix 5
Diverse Product Portfolio Detail
27
2006 2007 2008 2009 2010 2011 2012&2013
SCDMA Transceiver GSM power amplifier Module
GSM power amplifier Module with high power
output
GSM/EDGE power amplifier module
GSM power amplifier and switch
module(IPD)
TD-SCDMA/EDGE Transceiver WCDMA PA
PHS Transceiver GSM Transceiver 3G switch module TD-SCDMA/GSM amplifier module TD PA Module
Multi Mode Multi Band Front end
Module
FM radio receiverFM radio receiver with radio data
system
Radio frequency switch
TD-SCDMA transceiver CDMA transceiver RF Frone end
module(TD-SCDMA)
DVB-S satellite tuner
DVB-S2 satellite tuner
TD-SCDMA/GSM dual-mode transceiver
EDGE transceiver WCDMA/EDGE/GSM transceiver Wifi+BT+FM combo
AM/FM receiverAnalog mobile
television receiver system-on-chip
SOI switch BT earphone
FM radio receiver and teansmitter DVB-T tuner PA for
Bluetooth/Wifi BT 4.0
LNB satellite downconverter
Buletooth+FM system-on-chip for
mobile handsetsPA for CDMA LTE transceiver
Buletooth system-on-chip for mobile
handsets
Walkie-talkie transceiver for professional application
DAB Wifi+BT+FM+GPS combo
Walkie-talkie transceiver for
family radio service application
CMMB GSM BB
Digital Walkie-talkie Edge BB
WCDMA BB
TD-SCDMA BB
IPD for RF Front End Module
Multi Discretes Single Chip
Appendix 6
World-Class Technology Innovation
28
• World’s first IPD solution, 2-year technology lead over competition
• Superior integration roadmap
• Reduced size and cost
• Leverage standard packaging technology
• Improved yields and reliability
• High frequency 10GHz single-chip solution
• Reduced size and cost
• Improved yields and reliability
LNB Down Converter
Multi Discretes Single Chip
Appendix 7
Partner with Best-in-Class Semi Peers
29
TD-SCDMA Transceiver
• Marvell PXA920 Platform with RDA 8207 TD transceiver for Samsung TD-SCDMA Smartphone
DVB-S Tuner
• Silicon Lab Si 2167 with RDA 5812 for Samsung DTV selling Europe
Past Experience
Vincent Tai
Shuran Wei
Lily Dong
Over 28 years
Over 20 years
Over 20 years
Years of ExperienceManagement Position
Co-FounderCEO, Chairman
Co-FounderCTO
CFO
Appendix 8
Seasoned Management Team
Liang Zhang Over 14 years SVP, Engineering
Jun Chen Over 14 years SVP, Engineering
30
Appendix 9
RDA Partners
31
Foundry
Packaging and Testing