TI at a glance
Markets
Analog and Embedded Processing
Financials
Innovation
University and student
engagement
Manufacturing
Our commitment and values
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TI at a glance
Global semiconductor design and manufacturing
We design, manufacture, test and sell semiconductor chips
Technologies that improve how we live our lives
Industry’s broadest and most
diverseportfolio of
Analog and Embedded Processing products
used by approximately
100,000of the world’s most
innovative companies
Diverse and global workforce
Almost
30,000employees in more than countries30
Diverse and global workforce
Almost
30,000employees in more than countries30
• Increases flexibility• Fosters problem solving• Fuels innovation
2016 Revenue $13.37 billion
$8.54 billion Analog $1.81 billion
Other
$3.02 billion Embedded Processing
Focus on Analog and Embedded Processing
More than 85 percent of TI’s revenue comes from Analog and Embedded Processing
A history of great invention through the years
1930s
Oil exploration
Processors
Defense systems
Analog and Embedded Processing Applied research in Kilby Labs
Integrated circuit
1970s-’80s 2000 to present
1940s 1950s
Products for a broad set of applications and markets
Communications equipment Personal electronics
Industrial
Automotive
Enterprise systems
Global manufacturing
Innovative processes, flexible operations and high quality resultsto support customer demand
Core values
TI’s core values ofintegrity, innovation and commitment are woven throughout our DNA
Corporate citizenship
Our commitment to do the right thing permeates all aspects of our culture
Innovation and R&D
More than$7 billion investedin the past
5 years*
TI has more than
44,000patents
*2012-2016
Innovation and R&D
More than$7 billion investedin the past
5 years*
In areas such as:
Product development
R&D labs
Manufacturing technology
*2012-2016
Analog & Embedded Processing
semiconductor solutions
Solutions for all markets
Enablingendless applications
Industrial
Automotive
Personal electronics
Enterprise systems Communications equipment
Analog and Embedded Processing make electronics work
Gather information from the real world
Analog
Industry’s No. 1 analog supplier* with the broadest and most comprehensive portfolio of products
*IHS 2016
Embedded Processing
Full-system design expertise with differentiated embedded processing hardware and software
Global application expertise and support, anytime and anywhere
TI Designs reference designsMore than 2,000 TI Designs to
jumpstart system plans
TI E2ETM CommunityMore than 1.5 million questions and
answers at your fingertips
TI Store24/7 tool sales and
silicon sales
Sales supportIndustry’s largest salesand applications force
TrainingOnline and in-person
customer training
WEBENCH®
Online design tools deliver custom results in seconds
Technical documentsComprehensive technical
documentation available online
Continued investment in Analog and Embedded Processing
Expanding TI’sproduct portfolio
Helping customers solve design challenges
Innovation
Innovative technology that meets our customers’ needs
Delivering differentiated products that are: • Smarter
• Faster
• More efficient
• Lower power
Research and development
• Systems and applications labs
• Kilby Labs
• University partnerships
Celebrating our people
We foster a culture of innovation
Manufacturing
Global manufacturing
• Innovative processes
• High-quality results
• Flexibility
15 manufacturing sites in 9 countries
Innovative manufacturing processes
• High-speed
• High-precision
• High-voltage
• High-density
• Low-power
Producing analog technologies that are:
Innovative manufacturing processes
Our approach to manufacturing and differentiated processing technologies is a competitive advantage. This includes our investment in 300mm Analog capacity.
Responsive manufacturing capacity
RFAB is the industry’s first and largest fab in the world dedicated to analog technology on 300mm wafers.
About $8B of total 300mm Analog
capacity
Quality and reliability of our chips
Ensuring our products operate
at or beyond our customers’
performance requirements
Safe and sustainable operations
Meeting our customers’ needs through sustainable operations
One of the best U.S. safety records*
in the semiconductor industry
* SIA I&I survey 2013
Financials
2016 Revenue $13.37 billion
$8.54 billion Analog $1.81 billion
Other
$3.02 billion Embedded Processing
Strategic focus on Analog and Embedded Processing
We grow, generate and return cashto our shareholders
0 5 10 15 20 25 30 35
Acquisitions
Dividends
Share repurchases
R&D, Sales/Mkgt, CapEx, Inv 32
25
9
7
Capital over 10 years(2007-2016)
$ Billions
Disciplined capital allocation drives long-term value, competitiveness
• $73B of capital allocated over the past 10 years
• Drives long-term value, competitiveness, continued free cash flow per share growth
• Impacts shareholders returns
*Free cash flow = Cash flow from operations less capital expenditures
Looking forward: R&D investments strengthen portfolio, drive future growth
• Disciplined R&D investments allocated to higher value and growth opportunities
• Focused investments on industrial and automotive produce results: today comprise about 51% of TI revenue
Strategic decisions drivefree cash flow growth including: • Approach to technology and
manufacturing • Broadest product portfolio • Reach of market channels • Long-lived and diverse products
Generate cash
In 2016, free cash flow (FCF)* increased to
$4.1B or 30.5% of revenue.
*FCF = cash flow from operations minus capital expenditures
4Q16x42016201520142013201220112010200920082007200620052004
Dividends per share(in U.S. dollars)
0.089 0.105 0.13
0.30
0.41 0.45 0.490.56
0.72
1.07
1.24
1.40
1.64
2.00
Return cash
Committed to return all* of free cash
flow to shareholders through dividends and
share repurchases
*FCF plus proceeds from exercises of equity compensation less net debt retirement
42% reduction in shares outstanding(in billions)
0.5
1.0
1.5
2.0
2016201520142013201220112010200920082007200620052004
Return cash
Committed to return all* of free cash
flow to shareholders through dividends and
share repurchases
*FCF plus proceeds from exercises of equity compensation less net debt retirement
Building a stronger TI
We are focused on strengthening our unique competitive advantages: • Approach to technology and
manufacturing
• Broadest product portfolio
• Reach of market channels
• Long-lived and diverse products and markets
Markets
Automotive systems
Key automotive sectors:
• Infotainment
• Passive safety
• Advanced driver assistance systems (ADAS)
• Body electronics and lighting
• Hybrid/electric vehicle and powertrain
Industrial systems
Industrial is broad and diverse. 14 sectors including: • Factory automation and control
• Medical, healthcare and fitness
• Building automation
• Grid infrastructure
• Test and measurement
• Motor drivers
with hundreds of end equipments
From personal electronics to enterprise systems
Personal electronics Enterprise systemsCommunications equipment
University faculty and student engagement
Bridging the gap between industry and academia
University engagements include:
• Coursework materials • Teaching labs • Student design inspiration • Research projects
Since 1982, TI has been bridging the gap between academia and industry with more than 8,000 teaching labs in engineering departments at 2,600 universities worldwide, 450 TI-based textbooks in 10 languages, reaching tens of thousands of students annually.
Bringing real-world engineering concepts to life for students
Resources students need for their maker mindset to thrive.
• Online tutorials • Design inspiration • Engineer-to-engineer
discussions • Products and tools to
enhance the learning experience
Supporting university professors
Teaching materials and resources to integrate into coursework: • TI-based teaching kits and labs • Analog • Embedded Processors • Power management • Products and tools
Employing the best and brightest
• Internships and rotation programs
• Early career and experienced professionals
• Technicians and operators
Our commitmentand values
Our commitment
Social Impact
Economic Impact
Environmental Impact
Citizenship is our commitment to be accountable for our social, environmental and economic impact aroundthe world
Investment in our people
We believe diversity fuels innovation because our people are our greatest assets
Operating sustainably
Responsible business practices are the foundation by which we operate
Environmental stewardship
Investment to reduce:
• Air emissions
• Energy consumption
• Water use
Stronger communities make stronger companies
Investment in our communities
* 2011-2016
Stronger communities make stronger companies
Involvement through volunteerism
Employees serving in nonprofit leadership roles
Volunteer hours valued at $3.2m in 2016* (estimated)
400+
140k
*As of 11/15/2016
Connecting future engineers to STEM
More than$150 million
invested in education, including K-16 science, technology, engineering
and math (STEM) programs
Connecting future engineers to STEM
More than$150 million
invested in education, including K-16 science, technology, engineering
and math (STEM) programs
Enabling: • K-12 and university programs • Curriculum, technology and tools • Employee volunteering
and mentoring • Underrepresented groups to
learn more about STEM and engineering careers
Company CR Magazine, “100 Best Corporate Citizens”(14th year)
Ethisphere Institute, “World’s Most Ethical Companies” (10th consecutive year)
Fortune, “World’s Most Admired Companies” (3rd in industry)
Employer Forbes, “America’s Best Employers”
Human Rights Campaign, inclusion in the Corporate Equality Index rating LGBT workplace equality (13th year)
CareerBliss, “50 Happiest Companies in America” (5th year)
Financials indicesand ratingsDow Jones Sustainability Indices, “North America Component” (10th year)
FTSE Group, “Constituent,” FTSE4Good, a responsible investment index series (4th year)
Safety and healthBritish Safety Council, “International Safety Award” for best in class in the manufacturing sector
Malaysian Society of Occupational Safety and Health Awards, “Gold Class,” recognizing TI Malaysia and TI Electronics Malaysia
National Safety Council, “Perfect Record Award,” recognizing RFAB
2016 Awards
Q&A