Skyworks Overview
- 2. Safe Harbor Statement This presentation contains forward-looking statements that are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. These forward-looking statements speak only as of this p y g p y date and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. Forward- looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially and adversely as a result of various factors. Such factors t diff t i ll d d l lt f i f t S hf t include, but are not limited to: uncertainty regarding global economic and financial market conditions; the susceptibility of the wireless semiconductor industry and the markets addressed by our, and our customers', products to economic downturns; the timing, customers , rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; losses or curtailments of purchases or payments from key customers, or the timing of customer inventory adjustments; and changes in laws, regulations and/or policies in the United States that could adversely affect financial markets and our ability to raise capital. Additional information on these and other factors that may cause actual results and Skyworks’ performance to differ is included in the company s company’s recent SEC filings. filings
- 3. Skyworks Vision Enabling Mobile Connectivity Through Analog Semiconductor Innovation I. Addressing High Growth Markets and Applications II. Gaining Share Through Technology Leadership and Scale III. III Generating Superior Operating Results
- 4. Mobile Internet Traffic 2,500,000 2,184,212 2,000,000 2 000 000 Data erabytes per Month P2P 1,500,000 131% CAGR r 1,076,319 1,000,000 Video Te 482,216 500,000 207,412 33,068 , 85,075 Audio 0 2008 2009 2010E 2011E 2012E 2013E
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- 6. Always O Al On Connectivity
- 7. Cellular Handset Market Outlook 1,800 1,609 1 600 1,600 10% CAGR 1,450 CDMA and iDEN 1,400 1,310 GSM/GPRS 1,187 1,200 1,200 , 00 1,096 1 096 EDGE 1,000 Units (M) 3G / Multi-mode 800 32% CAGR 600 WCDMA 400 200 - 2008 2009 2010 2011 2012 2013 Source: Deutsche Bank, Oppenheimer and Internal Estimates, January 2010
- 8. Smart Phone Outlook 800 600 48% CAGR Social Networking Units (M) 400 Advanced Multimedia 200 - Enterprise Platforms 2009 2010E 2011E 2012E
- 9. Addressable PA/FEM Semi Content $5,000 $4.9B CDMA and iDEN $4,500 $4 500 GSM/GPRS 17% CAGR EDGE $4,000 $3,500 3G / 30% CAGR $3,000 $ Millions $2.6B $2.6B $2,500 $1.50 $2,000 $2 000 ASP WCDMA $1,500 $4-$5 ASP $1,000 $500 $0 2008 2009 2010 2011 2012 2013 Source: Deutsche Bank, Oppenheimer and Internal Estimates, January 2010
- 10. Embedded Wireless Applications Netbooks Notebooks eReaders 3G and 4G Datacards and Video Platforms Explosion of New Access Products
- 11. Industry Dynamics EDGE & 3G 2G Multimode Market Growth Low High Dollar Content $1 $3 to $6 Sole Source Seldom Almost Always Competitors Many Few Changing Landscape with Fewer Competitors
- 12. Vertical Markets Smart Grid A High Growth Adjacent Application
- 13. Smart Metering 94% 2,500 Unautomated 2,000 Global Unit (M) 1,500 ts 1,000 • Utilizes WiFi and ZigBee g 500 6% Automated • Smart Meters 0 • Programmable Thermostats and Worldwide 2.46 Billion Appliances Electric, Gas and Water Meters Source: ABS Energy Research and Management Estimates
- 14. Green Technologies Smart Meter Home Area Network Displays Other Appliances Electric ZigBee® Smart Energy Network N t k Frequency: 2.4 GHz Water Air Conditioners Programmable Gas Thermostats Addressing Both Access Points and Network / Grid Nodes
- 15. Linear Components LNAs Switches Synthesizers Mixers Diodes Attenuators Receivers Passives Catalog with Over 800 Products for Adjacent Markets
- 16. Analog Portfolio Overview Target Market and A li ti T t M k t d Applications Core Competency Infrastructure Broadband Industrial Medical Military ssion Amplifiers Transmis Front-End Modules Receivers Signa Processing g Synthesizers Mixers al Modulators Diversifying Our Business
- 17. Analog Market Outlook $18 18.0 8% CAGR $16.8 $15.4 Other $16 16.0 Automotive Electronics $14.1 $14 14.0 $13.4 $13 4 Wired Communications $12 12.0 Wireless Communications ons $10 10.0 Consumer Electronics $ Billio $8 8.0 $6 6.0 Industrial Electronics $4 4.0 $2 2.0 Computing / Storage $0 0.0 2009 2010 2010 2011 2011 2012 Source: Gartner Group and Internal Estimates Analog Markets Present Substantial and Diversified Opportunities
- 19. Q210 Performance Summary Quarterly Revenue and Gross Margin Quarterly Non-GAAP EPS and Operating Margin $300 45% $0.30 25% $275 44% $0.25 $0.24 Operating Margin $250 20% $238 Up 100% Gross M 43% Non-GAAP EPS Revenue ($M) $0.20 $225 Up 38% g P Margin 42% $200 $0.15 15% 41% $0.12 $173 $175 $0.10 $0 10 40% $150 10% 39% $0.05 $125 $100 38% $0.00 5% Q209 Q210 Q209 Q210 Outpacing our Addressed Markets and O t i Add dM k t d Demonstrating Operating Leverage
- 20. Q310 Outlook Revenue ($M) Non-GAAP EPS $300 $0.35 Up 10% - 15% p $0.30 Up 25% $0.30 $250 $238 $0.25 $0.24 $200 $0.20 $150 $0.15 $100 $0.10 $50 $0.05 $0 $0.00 Q210 Q310 G* Q210 Q310 G* * Per Company Guidance April 29, 2010
- 21. Margin Expansion Drivers Non-GAAP Q2 FY10 Revenue 100.0% Revenue Efficiencies Growth Gross Margin 42.3% Operating Expense Operating Expenses 21.8% Leverage Operating Margin 20.5% 25%
- 22. Skyworks Vision Enabling Mobile Connectivity Through Analog Semiconductor Innovation I. Addressing High Growth Markets and Applications II. Gaining Share Through Technology Leadership and Scale III. III Generating Superior Operating Results