analyst and investor day

Analyst and Investor DayRick Bergman, President & CEO

December 13, 2016

© 2016 Synaptics Incorporated 2

This presentation contains forward-looking statements that are subject to the safe harbors created under the Securities

Act of 1933, as amended, and the Securities Act of 1934, as amended. Forward-looking statements give our current

expectations and projections relating to our financial condition, results of operations, plans, objectives, future

performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts.

Such forward-looking statements may include words such as ”expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,”

“target,” “strategy,” “continue,” “may,” “will,” “should,” variations of such words, or other words and terms of similar

meaning. All forward-looking statements reflect our best judgment and are based on several factors relating to our

operations and business environment, all of which are difficult to predict and many of which are beyond our control.

Such factors include, but are not limited to, the risks as identified in the “Risk Factors,” “Management’s Discussion and

Analysis of Financial Condition and Results of Operations” and “Business” sections of our Annual Report on Form 10-K

for the fiscal year ended June 25, 2016, and other risks as identified from time to time in our Securities and Exchange

Commission reports. Forward-looking statements are based on information available to us on the date hereof, and we

do not have, and expressly disclaim, any obligation to publicly release any updates or any changes in our expectations,

or any change in events, conditions, or circumstances on which any forward-looking statement is based. Our actual

results and the timing of certain events could differ materially from the forward-looking statements. These forward-

looking statements do not reflect the potential impact of any mergers, acquisitions, or other business combinations that

had not been completed as of the date of this filing. While today’s presentation may include forward-looking statements,

we are specifically not providing any update to the financial guidance given in our last quarterly conference call on

October 27, 2016.

Disclosure


Agenda

8:30 – 9:00 Arrival, Coffee, Demos

9:00 – 9:20 Welcome Rick Bergman, President & CEO

9:20 – 9:30 Partnering for Success Tieer Gu, Chairman, Shanghai OXi Technology

9:30 – 9:45 Biometrics Anthony Gioeli, VP Marketing, Biometrics Product Division

9:45 – 10:30 Smart Displays & Automotive Kevin Barber, SVP & GM, Smart Display Division

10:30 – 11:00 Q&A, Break, Demos

11:00 – 11:15 Notebook & PC Peripherals Huibert Verhoeven, SVP & GM, Human Interface Systems Division

11:15 – 11:30 Innovation Patrick Worfolk, SVP, Corporate Research & CTO

11:30 – 11:45 Financial Update Wajid Ali, SVP & CFO

11:45 – 12:00 Wrap-up, Q&A All

12:00 – 1:00 Lunch, Demos


Synaptics Innovates for Great User Experience

Our Vision:

Lead the human

interface revolution

Pioneering the Relationship

Between People and

Intelligent Devices


Uniquely Positioned to Win

Deep knowledge of consumer market

Strong IP portfolio

Leader in innovation

User experience approach

Scale and velocity to drive

inflection points


Winning in TDDI

Momentum

in OLED

Expanding FPS

Portfolio

OXi

Partnership

Growth &

Diversification

Infinity

Display


Revenue & EPS Trend

*Consensus estimate, Nov 2016

$ M

illio

ns

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$0

$300

$600

$900

$1,200

$1,500

$1,800

FY11 FY12 FY13 FY14 FY15 FY16 FY17*

Revenue

EPS

2013-2016

Revenue CAGR

36%


Core Market Opportunities

0

2,000

4,000

6,000

8,000

2016 2017 2018 2019 2020

Mill

ion

s o

f U

nits

(Excludes Apple except DDIC)

Biometrics

Touchpad

TDDI

Touchscreen

DDIC

# of End Devices

SAM multiplier from

increased sockets

per device

Source: IDC, IHS and internal estimates


DDIC44%

Touchscreen13%

TDDI14%

Touchpad7%

Biometrics22%

SAM Growth by Key Products

DDIC48%

Touchscreen21%

TDDI5%

Touchpad7%

Biometrics19%

$5.7B $7.5 B

CY2016 CY2020

Over 30% growth

in the coming 4

years

Source: IDC & internal estimates; excludes Apple


Synaptics CY16 Q3 Market Share

Mobile Touch Mobile Display

SYNA

28%

SYNA

29%*

Source: IHS, IDC, and internal estimates

Touchpad

SYNA

62%

#1 #1

Fingerprint

SYNA

27%

#2#1

* 29% share for LCD; 22% share for LCD and OLED

Note: Excludes Apple except Mobile Display


Revenue Contribution from China

F Y 1 5

F Y 1 6

F Y 1 7

19%25%

35%*

Greater contribution

from China

expected

* Internal estimates


Today’s Growth Pillars

OLEDTDDI

TOUCH & DISPLAYBIOMETRICS


Biometrics Attach Rate Increasing

0

500

1000

1500

2000

CY16 CY17 CY18 CY19 CY20

Other Biometrics

FingerprintM

illio

ns o

f U

nits

Source: IDC & internal estimates; excludes Apple

Fingerprint

Design Wins

OLED panel

shipments forecast

to grow to over

700Mu by 2020

CAGR

35%


-

500

1,000

Mill

ion

s o

f U

nits

TDDI in Majority of LCD Smartphones OLED panel

shipments forecast

to grow to over

700Mu by 2020

CAGR

70%

Source: IDC & internal estimates

TDDI

Design Wins

CY15 CY16 CY17 CY18 CY19 CY20


Smartphone OLED GrowthTDDI forecast to

be in majority of

LCD smartphones

by 2019

OLED panel

shipments forecast

to grow to over

700Mu by 2020

CAGR

23%


OLED

Design Wins (Touch)

0

500

1000

CY15 CY16 CY17 CY18 CY19 CY20

Mill

ion

s o

f U

nits


Design Win Momentum

TDDI Fingerprint TouchPad OLED Touch


Wearables

Smart Home

Access Control AV / VR

Automotive Healthcare


The Winning Formula – Leverage and Scale

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

500

1,000

1,500

2,000

2,500

3,000

End

Syste

m U

nits (

Mill

ion

s)

Syna

ptics R

even

ue

(M

illio

ns)


Notebook PCs



0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

500

1,000

1,500

2,000

2,500

3,000

End

Syste

m U

nits (

Mill

ion

s)

Syna

ptics R

even

ue

(M

illio

ns)

Smartphones


Notebook PCs



0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

500

1,000

1,500

2,000

2,500

3,000

End

Syste

m U

nits (

Mill

ion

s)

Syna

ptics R

even

ue

(M

illio

ns)

Smartphones

Consumer IoT


Notebook PCs


Multiple Opportunities Per Vehicle

AUTOMOTIVE

CAGR

16%

Automotive

Touch,

Display,

Fingerprint

0

250

500

CY16 CY17 CY18 CY19 CY20 CY21 CY22

Source: IHS & internal estimates

Mill

ion

s o

f IC

s


AR/VR Drive New Wave of Innovation

0

50

100

CY16 CY17 CY18 CY19 CY20 CY21 CY22

CAGR

50%

Source: IHS & internal estimates

Mill

ion

s o

f IC

s


Driving Industry Transitions

Trackball to Touchpad Passwords to Fingerprint

Discrete touch to

Integrated touch

Home button to button-free


Infinity Display

Driving Industry Transitions

Full Cover-glass

Tuesday, December 13

10:15 AM

• Bezel-free

• Fingerprint

in-display

• Chip-on-flex

• 18:9 display

• Button-free

• Fingerprint

under-glass

• Narrow border


OXi & Synaptics Partnership

© 2016 Synaptics Incorporated

Expands Synaptics optical

fingerprint solutions

Enables true under-glass

fingerprint sensing

Broadens product portfolio

Strengthens presence in China

Partnering for Success

Tieer Gu

Chairman, OXi Technology Ltd.


OXi Company Overview

Mission

• Innovation in biometric

technologies to create positive

changes towards more secure and

convenient personal identification

• Founded in 2014

• Headquarters in Shanghai

• Focused on innovative optical design

• Expertise in IC design, TFT sensors

& OLED displays

• >150 patents filed

• Outsourced manufacturing model

• Several global LCM partnerships

Vision

• Simple life without keys, wallets,

cards, passwords…


0

200

400

600

800

1000

1200

2014 2015 2016F 2017F 2018F

Smartphone Shipments with Fingerprint

Apple Samsung China-made Other

China Smartphone Fingerprint Opportunity

Units (mu)

Smartphone

Shipments

(2016)

With

Fingerprint

(2016)

Fingerprint

Adoption

Rate

Huawei 125 75 60%

Oppo 80 68 85%

Vivo 65 55 85%

Xiaomi 60 54 90%

Others 568 78 14%

Total 898 330 37%

Data source: Nomura Global Market Research

Fingerprint Adoption Rate

for Major China-made Smartphones

Units (

mu)


Winning in China

Be Innovative

• Low system cost

• Ultra-thin module

• Under-glass fingerprint

• Liveness detection and anti-

spoofing

• New applications

– E.g, heart rate, blood pressure,

oxygen, glucose…

Be Local

• Familiarity with Chinese culture

• Good customer relationships and

understanding of local market

• Local engineers to work onsite at

key customers

• Strong relationship with Chinese

government

• Local supply chain, including

turnkey services


Why OXi and Synaptics

Synaptics Strengths

• Consumer brand

• Silicon design expertise

• Software expertise

• Fingerprint, touch and display IP

• Global supply chain

• Customer relationships

OXi Strengths

• TFT-based sensor design

• Under-glass fingerprint solution

• China market expertise

• Strong customer demand

• Local supply chain

Complete synergy between the two companies


Innovating Towards the Ultimate Solution

Integrated touch, display

and fingerprint solutions

DISPLAY


10:15 AM

TOUCH

FINGERPRINT

Biometrics Solutions

Anthony Gioeli

Vice President, Marketing

Biometrics Product Division


Synaptics Growth and Success

in Fingerprint


Continued Leadership in PC Market:

Migration from Swipe to Touch Sensors


Growing Market Share With Top OEMs


Consumer IoT: Working with OEMs and Ecosystem Partners

Automotive Wearables


Product Strategy


Fingerprint Market Opportunity

0

200

400

600

800

1000

1200

1400

1600

2016 2017 2018 2019 2020

Tablet

Notebook PC

Smartphone

Source: IDC & internal estimates; excludes Apple; CY

Mill

ion

s o

f U

nits

Forecast of Fingerprint Shipments

2016 – 2020 CAGR:

31%


Key Drivers for Fingerprint Adoption

New use cases require increasing security

Time

Se

cu

rity


Global Mobile Payment Transaction Volume

450

620

780

930

1080

2015 2016 2017 2018 2019

An

nu

al tr

an

sa

ctio

n v

olu

me

in b

illio

n U

.S. d

olla

rs

Source: © Statista 2016; CY

Additional Information: Worldwide.


Synaptics Value Proposition: Unparalleled Security

PurePrint™ Anti-spoofingHigh reject rate and field

upgradeable

Match-in-SensorExceptional protection

against on-device threats

SecureLink™

End-to-end security

Key GenerationNIST certified, true

random numbers

Quantum Matcher™

High accuracy with

native anti-spoofing

Crypto EngineEmbedded in sensor for

optimum performance


Customer Validation

Key Differentiators

Quantum Matcher™

SecureLink™ encryption

PurePrint™ anti-spoof

“We’re excited to partner with Synaptics … [for] stronger

authentication using enterprise-grade biometric sensors.”

“The security of Synaptics’ fingerprint authentication solution

… is a key upgrade.”

“Synaptics’ wide range of solutions offers unique security

features for Alcatel smartphone customers.”

Johnson Jia

Senior Vice President

PC & Smart Device Business Group

Lenovo

Rangoon Chang

General Manager

Mobile Computing Business Unit

ASUS

Alain Lejeune

Senior Vice President & GM

Worldwide Mobile Devices

TCL Communication


Synaptics Value Proposition: Modular Architecture

Ideal for In-Display

Excellent Durability

• Improved Ruggedness

• Better ESD protection

Unique Synaptics IP

Smaller Die Size

• Lower overall cost

• Larger sensing area

• Patent protected• Sensor is separate from control IC

Sensing area

Control IC (Die)


Buttons

Under Glass

In Display

Fingerprint Growth in Smartphones

0

200

400

600

800

1000

1200

1400

2016 2017 2018 2019 2020

Mid-to-High End

Low-End

Source: IDC & internal estimates; excludes Apple; CY

Mil

lio

ns o

f U

nit

s2016-2020 CAGR:

32%Smartphone Market Opportunity

2016 – 2020 CAGR:

32%

Adoption Rates:

High/Mid 100%

Low-End 65%


Gen 3

Technology Innovation

+

Cost Optimization

Very low cost glass,

ceramic and coated

solutions

Button Product Strategy

Gen 2 TDDI

SYNA Touch +

RSP Display

Flagship to Entry

WQHD to HD

55nm / 90nm

Technology Innovation and Cost Optimization

Gen 2


Glass + Ceramics

Gen 2

Cost Optimization

Low cost coated

solutions

Key Differentiators

On-board microprocessor

Modular architecture

SentryPoint security

Gen 1

Rectangular +

Coatings

Gen 1.5

Square +

Match in Sensor


Overcoming

Technology

Barriers

Full cover glass

over 1mm

Optical Technology

Under Glass Product Strategy

Gen 2 TDDI

SYNA Touch +

RSP Display

Flagship to Entry

WQHD to HD

55nm / 90nm

Overcoming Technology Barriers

Recessed Glass

to 350um

Capacitive

Technology

Key Differentiators

Full under cover glass functionality

Optical and capacitive offerings

SentryPoint security


FS9100

• Senses through full cover glass up to 1mm

• Offers clean industrial design with

unprecedented durability

Industry’s 1st optical under cover glass

fingerprint sensor designed for smartphones

OXi Technology Co., Ltd.


FS9100 Key Benefits

Excellent Performance

• Great wet finger performance

• Quantum Matcher™ & PurePrint™

Proven Technology Extreme Ruggedness

Low-cost Integration

• No glass processing needed

• Simple module design

• Optical-based fingerprinting

• Strong IP position

• Scratch resistant

• Waterproof

• Easy ESD compliance


In Display Product StrategyTechnology and Architectural Leadership

Key Differentiators

Modular architecture

Expertise in optical & capacitive

SentryPoint™ security

Future Solution


Key Takeaways

Rapidly expanding

customer base

Unparalleled security &

unique product architecture

Under glass &

in display leadership

Smart Displays

Kevin Barber

Senior Vice President & General Manager

Smart Display Division


Key Growth Vectors

OLED

image…

TDDI

Automotive

image…

AutomotiveOLED


Smart Displays Opportunity Growing to $5.5B

SOURCE: IHS, IDC, Synaptics; CY

Bill

ion

s

$0

$2

$4

$6

2016$4.3B

2017$4.7B

2018$5.0B

2019$5.3B

2020$5.5B

Smartwatch

Virtual Reality

Notebook

Automotive

Tablet

Smartphone


Strong Growth Forecast for TDDI and OLED

SOURCE: IHS, IDC, Synaptics; CY

TDDI forecast to

be majority of

LCD smartphone

displays by 2019

OLED panel

shipments forecast

to grow to over

850Mu by 2020


Smartphone Technology Trends

Infinity Display

Clean industrial

design – extended

display with no

button

.

Virtual Reality

(VR)

Higher resolution displays with faster refresh

rates

High-Dynamic

Range (HDR)

UHD 4K content from Amazon, Netflix, etc...

Flexible OLED Displays

New form factors and smartphone design concepts


10:15 AM


Synaptics28%

WW Touch Share*

Synaptics Smartphone Market Share (3Q16)

SOURCE: IHS, IDC, Synaptics

Synaptics39%

China Touch Share

Synaptics20%

China Display Share

Synaptics22%

WW Display Share

Synaptics29%

WW LCD Display Share

* Excludes Apple


TDDI


Synaptics Leading Rapid Growth for TDDI

SOURCE: Smartphone Display Forecast 4Q16 - IHS, internal estimates; CY

CAGR: 2016-2020

70%

Synaptics

TDDI share

70% today

OLED TDDI

starts to

ramp in 2018

Mill

ion U

nits

0

500

1,000

2015 2016 2017 2018 2019 2020


Industry-leading TDDI Portfolio Shipping in High-Volume

TD4300FHD Resolution

TD4100HD Resolution


Integrated RAM

TD4302WQHD Resolution

Integrated RAM


Integrated RAM

Integration of market-proven touch IP (US) and display IP (Japan)


Latest Synaptics TDDI Solutions in the Market

HuaweiNova

TD4300

LG X Power

TD4100

SamsungGalaxy On5 / On7

TD4100 / TD4300

XiaomiMi5s Plus

TD4322

HuaweiMate 9

TD4322


Comprehensive TDDI Strategy

Gen 1 TDDI

SYNA Touch +

Display

Gen 2 TDDI

SYNA Touch +

RSP Display

Flagship to Entry

WQHD to HD

55nm / 90nm

2017

2017

Driving Technology and Cost Innovation

~2015

2016

2017

2018~

Gen 2 TDDI

SYNA Touch +

RSP Display

Flagship to Entry

WQHD to HD

Gen 3 TDDI


WQHD+ and VR

Gen 3 TDDI

Cost Innovation

FHD and HD

OLED TDDI

Flexible displays

Gen 4 TDDI

Next-gen architecture

208

INN

OV

AT

ION

Te

ch

nolo

gy

Cost


OLED


Steady Growth Forecast for OLED Displays

SOURCE: Smartphone Display Forecast 4Q16 - IHS, internal estimates; CY

CAGR:2016-2020

23%

New smartphone

design concepts

driving OLED

adoption

Infinity displays

Flexible displays

Mill

ion U

nits

0

500

1,000

2015 2016 2017 2018 2019 2020


OLED Display Market Expansion New Fab MP

Generation

Average LCM Yield

Source: IHS, internal estimates; (5.7" equivalent smartphone panels); CY

2019

OLED

display

capacity

forecast

up to 1Bu

in 2019

Synaptics

addressing with

portfolio of

OLED touch

and display

products


Synaptics OLED Innovation

Advanced image

processingIndustry leading

touch

Integration of touch

and display


Meizu PRO 6 / PRO 6 Plus

First ClearForce smartphone

Synaptics – Industry-leading Touch for OLED Smartphones

Google Pixel / Pixel XL

Daydream VR smartphones

OPPO R9

Top China brand


State-of-the-Art OLED Image Processing by Synaptics

Local-Area ACL (Auto Current Limit)

Current

Flexible Gamma Control

Image data

Vo

ltag

e

DAC


High-Accuracy Color Enhancement High Dynamic Range


Flexible Digital Gamma Control for OLED

• Industry-first implementation

• Features highest color-accuracy

• Enables smooth image-dimming

DAC

da

ta

da

ta

da

ta

Flexible Digital Gamma Control

R d

ata

G d

ata

B d

ata

R d

ata

G d

ata

B d

ata

R d

ata

G d

ata

B d

ata

Image data

Vo

lta

ge


80%

100%

Local Area ACL for OLED

• Optimal current

control based on

display local areas

• Enables lowest

power consumption

• Maintains high

contrast for text

100%

100%


High-Dynamic Range for OLED

Global Area ACL Local Area ACLOriginal

Display

Image

Image

Processing

Curve

No image

degradation


Expanding and Innovative OLED Portfolio

Gen 2 TDDI

SYNA Touch +

RSP Display

Flagship to Entry

WQHD to HD

55nm / 90nm

2017

2017

2017 2018~

Synaptics Gen 1 OLED FHD+ DDIC and Touch IC

Flexible OLEDWQHD+ DDIC and Touch IC

OLED TDDISynaptics Display and

Touch Integration

208

DIS

PL

AY

Fle

xib

leR

igid

Rigid OLEDFHD+ DDIC and Touch IC

Synaptics Gen 2 OLEDOptimized Solution for

DDIC and Touch


Synaptics ClearView™ R66452 OLED DDIC

Full HD+ resolution for infinity displays

Synaptics OLED Image Processing

- Flexible Gamma Control

- Local-Area ACL

- High-Accuracy Color Enhancement

- High-Dynamic Range

Support for flexible and rigid OLED displays

Current

Image data

Vo

ltag

e

DAC



Unmatched Technology for OLED Integration

Integrated touch, display

and fingerprint solutions


10:15 AM

DISPLAY

TOUCH

FINGERPRINT


Automotive


Automotive Market Opportunity

Source: IHS, internal estimates; CY

$0

$300

$600

2016 2017 2018 2019 2020 2021 2022

Mill

ion

s

FingerPrint

Touch

DDIC

Fingerprint Sensor

Displays Touch Cockpit Controls

Touchscreens


Addressing the Automotive HMI Evolution

DDIC

TDDI / OLED

Fingerprint

Multi-Modal

Touch


New Automotive Products Available Now

Touch Controllers for up

to 17” Displays

Touchpads

Broad DDIC

Portfolio

Customized

Fingerprint

Solutions


Synaptics Products in a Production Car

Two DDICs and

One Touch ControllerDDIC


Growing Automotive Business Opportunity

FY17 FY20 FY22

Touch, Display and Fingerprint

2X

3X


Key Takeaways

Automotive

image…

OLED

image…

TDDI

Extending our

market leadership

OLED

Innovating to win in

touch and display

Automotive

Growing into a new

market


Agenda






10:30 – 11:00 Q&A, Break, Demos




11:45 – 12:00 Wrap-up, Q&A All



Resumes at

11:00AM PDT

Notebooks & PC Peripherals

Huibert Verhoeven

Senior Vice President and General Manager

Human Interface Systems Division (HISD)


Growing in the Notebook PC Market

TouchPad

Fingerprint Sensor

SecurePad


OEM Customer Trends

Key technical specs

Speeds and deeds

Circa 2010

Industrial design

User experience

OEMs ODMs

Whole system design

Sub 5 Watt CPUs

User experience

Industrial design

Ecosystem

Co-designing with OEMs

OEMs

Current

Owning more of the

system engineering –

design, user experience,

mechanicals


Key OEM Investments: Industrial Design

<5 Watt CPUs 10mm Notebooks

TouchPadBest In Class performance

Critical Part of Design

FingerprintConvenience

Security

Payment


TouchPad Growth by Enabling Vertical Markets

Moisture

Resistance

OEM Vertical Markets

Synaptics TouchPad Features

Military

Glove Operation

Industrial

Medical

90© 2016 Synaptics Incorporated

Touch and Security with great ID

Now Shipping

1st to Market

Windows Hello certified

Payment

SecurePad Now in Mass Production


Competition’s LimitBasic

Sensor

Rudimentary

SW

Modules

Industrial

Design

Advanced

Algorithms

Security

ePayments

Ecosystem

VA

LU

E

Synaptics Fingerprint Sensor Value Add


Fingerprint Sensors Growing in Notebook PC

Windows 10

biometric authentication

ePayments ecosystem

0%

10%

20%

30%

40%

50%

60%

70%

80%

2014 2015 2016 2017 2018 2019

Attach Rate in PC

Android SmartPhones

PC Notebooks

Source: IDC, internal estimates; CY


Expanding into 100M Desktops

Fingerprint Sensor for mice

Fingerprint Sensor on USB

Source: IDC Worldwide Quarter PC Tracker, February 25, 2016


Key Takeaways

Creating Value

Adding fingerprint sensor

5x attach rate growth

Ecosystem leader

Increase the TAM

Growing beyond the notebook

100+ Mu/Y additional market

Leadership with PC OEMs

Design partner

New markets & verticals

Innovation

Patrick Worfolk

Senior Vice President,

Corporate Research & CTO


Significant Investments in Intellectual Property

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2011 2012 2013 2014 2015 2016 Q3

Patents Pending

Patents Granted

Core Intellectual Property

• Capacitive sensing

• Touch sensor design and operation

• Image processing

• Force sensing

• Display control

• Integrated touch and display

• Fingerprint sensor construction and

operation

• Integrated fingerprint and display

Calendar years


Major Areas of Technology Investments

Interactive Imaging

Smart Display


Interactive Imaging


Capacitive

Evolution of Smartphone Fingerprint Sensing

Button Under Glassfingerprint valley

and ridge

50

0 u

m

gla

ss le

ns

70 um

sensor pitch


Capacitive


Button Under Glass

Ideal for Capacitive


Capacitive

(thin glass)Capacitive

(thin glass)Capacitive


Under Glass In DisplayButton

OpticalOptical


In Display Optical Fingerprint Sensing

The evolution of display integration

• DDIC → TDDI → FTDI

Photodetectors integrated into TFT layer

• 2004 Synaptics explored optical touch

• 2014 AUO demonstrated optical FPS without a

glass lens

We are building concept prototypes to validate our

display-integrated FPS design with a glass lens

Source: AUO Corporation, Embedded Nano-Si Optical Sensor in TFT-LCDs

Fixed Position- Large Area

Display-Integrated- Everywhere

Fixed Position- Small Area


Smart Display


Smartphone Display Trends Driving New Technology

Zero border• Curved edges

• Rounded corners

Flexible OLED displays• Bendable

• FoldableVR optimized• High resolutions

• High refresh rate

• Low latency


Virtual Reality Technology

Headset adoption will be driven by small, high resolution displays

• Larger field of view

• Smaller optics

• Lighter

• Lower power


Field of View and Sharpness

Human Eye Smartphones Virtual Reality

iPhone 7+ Galaxy S7

Oculus Rift &

HTC Vive Fove StarVR

Field of View ~180° 27° (at 10”) 25° (at 10”) 110° 100° 210°

Sharpness

(PPD)>120 70 100 10 13 12

Field of View plus Sharpness gap: 10X-20X

Pixels per

Degree (PPD)

1°

Source: Manufacturer specifications


Virtual Reality Challenges

These challenges are driving innovation in display,

DDIC, video interface and GPU technology

#1: Creating Small, High

Resolution Displays

10X-20X

Higher Resolution

#2: Rendering and

Transporting the Pixels

Today

110° field of view, 10 ppd, 90 Hz

220 Mpixels/sec (2X FHD game)

Tomorrow

130° field of view, 35 ppd, 120 Hz

2.5 Gpixels/sec (21X FHD game)

10X Compute & Transport

#3: Achieving

Low Latency

Latency is a large factor in

causing VR sickness

a. Tracking delay

b. Application delay

c. Rendering delay

d. Display delay

- Pixel response time

- Persistence


Key Takeaways

Interactive Imaging

Announced today our first optical sensing

product and a technology demo

Optical sensing is foundational to many other

human interface applications

Smart Display

Actively developing technology to enable all

next generation smartphone and VR display

trends

Source: Victor Koen, The New York Times

Financial Update

Wajid Ali

Chief Financial Officer


Agenda

• OXi & Synaptics Partnership

• FY16 Financial Results

• FY17 Financial Update

• Target Operating Model


Minority investment: $19 million in OXi stock purchase (14.4%)

One board seat

Strong relationship with Chinese LCMs

Accelerates Synaptics time to market with advanced optical fingerprint

Strengthens Synaptics China presence and local customer support

+

OXi and Synaptics Partnership


FY16 Financial Results

Revenue

$1.67BOp Profit

$220M

EPS

$4.76


Non-GAAP Operating Results

5%

7%

9%

11%

13%

15%

17%

19%

$-

$100

$200

$300

$400

$500

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17*

Revenue

Op Exp

Op Profit %


$M


Cash Generation

0

50

100

150

200

250

300

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Cash From Operations Cumulative Share

Buy Back

-

200

400

600

800

1,000

FY05 FY07 FY09 FY11 FY13 FY15 FY17*

*$917M as of Q1 FY17

$M $M


FY17 Financial Update


FY17 Financial Progress

Revenue Strong 1H

Gross Margin Varies by product mix

Operating Expenses < $95M per quarter

Operating Margin Low teens

EPS On track

Cash Flow On track

Focus on Operating Margin and EPS Growth

2017 Financial Metrics Progress


Operating Margin

5%

9%

13%

17%

21%

25%

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17*



FY15 & FY17 R&D Investment

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

DiscreteTouch

PC DiscreteDisplay

OLED Fingerprint IntegratedDisplay

NewOpportunities

FY15

FY17


Product Revenue

0

200

400

600

800

1,000

1,200

FY15 FY16 FY17

0

10

20

30

40

FY15 FY16 FY170

100

200

300

400

FY15 FY16 FY17

0

100

200

300

400

FY15 FY16 FY17

PC Fingerprint Mobile Fingerprint

Discrete Display Integrated Display

25% +

15% +

800% +

-30% +

CAGR

FY15–FY17

16%

CAGR

FY15–FY17

15%

CAGR

FY15–FY17

-21%

CAGR

FY15–FY17

466%

FY15 includes full year RSP


Revenue Mix

0%

20%

40%

60%

80%

100%

FY12 FY13 FY14 FY15 FY16 FY17 FY18

Fingerprint

Integrated Display

Discrete Display

Discrete Touch

PC Touch


Portfolio Margin

Discrete

Touch

Discrete

Display

Auto OLED

PC

TouchCorporate Product Margin

High-end

Fingerprint

Integrated

Display

Low-end

Fingerprint

Next Gen Next Gen


Non-GAAP Target Operating Model

Near-Term Mid-Term Previous Model

Revenue 15%+ 15%+

Gross Margin % 31-35% 32-36% 37-40%

OPEX 19-21% 18-20% 22-26%

Operating Profit 11-15% 13-17% Mid to High Teens

Tax Rate 12-14% 12-14% 16-18%

Net Income Low Teens Low to Mid Teens Low to Mid Teens


Operating Leverage

Note: Non-GAAP


5%

7%

9%

11%

13%

15%

17%

19%

$-

$100

$200

$300

$400

$500

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17* MidTerm

Revenue

Op Exp

Op Profit %

$500M


Key Takeaways

#1 focus is to grow operating profit

Invest to drive revenue growth in key markets

Deliver strong cash flow


Revenue growth

Lead in technology

Win in China

Diversification

Bold moves

Our Strategic Priorities



Agenda






10:30 – 11:00 Q&A, Break, Demos




11:45 – 12:00 Wrap-up, Q&A All


ADVANCING THE HUMAN INTERFACE


Synaptics, the Synaptics logo, TouchPad, ClickPad, SecurePad, ClearPad, ClearView, Synaptics TouchView, Natural ID,

ClearForce, SentryPoint, Design Studio, Image Studio and SafeSense are trademarks or registered trademarks of Synaptics

Incorporated or its affiliates in the United States and/or other countries. All other brands and names may be trademarks of

their respective owners.

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