skyworks corporate overview

8/12/2019 Skyworks Corporate Overview

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Corporate OverviewJune 2014


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Safe Harbor Statement

Please note that our presentation today will include forward-

looking statements as defined in the Private Securities Litigation

Reform Act of 1995. These forward-looking statements include

projections and information relating to future events and

expectations of Skyworks. We caution you that actual results maydiffer materially and adversely from those projected in the forward-

looking statements as a result of certain risks and uncertainties,

including, but not limited to those noted in our most recent earnings

press release and those detailed from time to time in our most

recent Form 10-K and Form 10-Q filings.


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Business Overview

Market Drivers

Revenue Mix

Financial Model


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Higher Value SolutionsCustomized Systems Simplifying Analog Complexity

New Growth OpportunitiesDiversified Analog Above Market Growth

Laser Focus on Operational Execution

Superior Financial Returns

Our Strategic Vision


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How We Win

InnovationAnalog Systems Expertise

Intense Focus on the Customer

Leverage Our

Scale in

Manufacturing and R&D

Provide Highest

Quality and Reliability at Lowest

Cost


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2H Revenue 1H Revenue

$0

$400

$800

$1,200

$1,600

$2,000

FY10 FY11 FY12 FY13 FY14

Revenue

Track Record of Results

Gross Margin 230bp Op Margin 670bp

Notes: EPS, Gross Margin and Operating Margin Presented on a Non-GAAP Basis

EPS CAGR, Gross Margin, and Operating Margin Expansion Provided on a Comparable 1H Basis Over Time Period Shown

$0.74

$0.98

$1.03

$0.51$0.86

$0.93

$1.25

$1.89

$1.91

$1.03

$1.18

$2.20

$1.29


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Business Overview

Market Drivers

Revenue Mix

Financial Model


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0

600

1,200

1,800

2,400

3,000

2012 2013 2014E 2015E 2016E

Units(

M)

I. Demand for Higher Data Rates802.11ac Deployments in Early Stages

Total WiFi

Enabled

Products

11ac

Enabled

Products


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0

500

1,000

1,500

2,000

2,500

2012 2013 2014E 2015E 2016E

I. Demand for Higher Data RatesLTE Deployment in Early Stages

Units

(M)

2G

WCDMA

TD-SCDMA

TD-LTE

LTE


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NFCIdentification / Access

WiFiVideo/Data Streaming

ZigBeeHome Automation

BluetoothRF Remote Control

GPSLocation Validation

4G LTEBroadband Internet

II. Expanding Dollar ContentMedia Gateway Applications

Over $6 of Skyworks Content


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SkyOneTM

Filtering Switching

Amplification

SkyHi LTE

Amplifiers (x2)

WiLAN

Modules (x2)

GPS LNA

Camera Flash

Display LightingDiversity

Switch

Power

Management

II. Expanding Dollar ContentSmartphone Applications


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Cellular Wireless

Broadband

Internet

of Things

Digital Cellular

Mostly Voice

Always-On Access

Internet, Media and Data

Billions of Connected

Devices

Mobile

Computing

Sleek Devices

High Speed Networks

1995 2005 2010 2015

III. New MarketsThe Internet of Things Has Arrived

III N M k t d P d t
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=HevzX129dY7HhM&tbnid=L63PIhsy4Wsb1M:&ved=0CAUQjRw&url=http://www.windstream.com/Electronics/Tablets-Laptops-and-Desktops/&ei=hNFnU_KoH_ffsASN44L4Cw&bvm=bv.65788261,d.aWc&psig=AFQjCNFmVzUUbAVzqesjeaNV8sqng--Pbw&ust=1399399098668876


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70B Devices by 2020

III. New Markets and ProductCategories


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Business Overview

Market Drivers

Revenue Mix

Financial Model

d


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Increasing Product DiversityComponents to Solutions

MMMB

3G/4G

EDGE FEM

2G

Infrastructure

Connected Home

M2M

Medical / Auto

SkyOneConnectivity Solutions

WiFi, GPS/Location

Tuning and SwitchingDisplay and Lighting

Power Management

30%Integrated

Mobile Systems

40%Power

Amplifiers

30%Broad

Market

Percentages Based on Mix of FY13 Revenue

i f li


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$-

$400

$800

$1,200

$1,600

$2,000

FY11 FY12 FY13

Power

Amplifier

IntegratedMobile

Broad Market

Improving Systems PortfolioSupporting a Strong Business Model

60%45%

40%

20%30%

30%

20%25%

30%

Revenue

($M)

70% Mobile

30% Non-Mobile


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I. Power Amplifiers

Drivers

Growth in LTE Devices

Band Count Expansion

Linearity / PAE Requirements

Growth ~5%

Profitability 40-45% Gross Margin

FY13 Mix ~40%Sky-HiTMUltra-High

Efficiency

Amplifier

WEDGE FEM

Multi-Mode

Multi-Band


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II. Integrated Mobile Systems

Connectivity

(GPS and WiFi) 802.11ac FEMs

2/5G Switch/LNA

GPS FEM and LNA

Switching

and Tuning

Carrier Aggregation ASM

MIPI ASM & Discrete

Antenna Tuning

Diversity ModuleSystems

SkyOne

Multi-Band PADs

TDD-Transmit

Module

Power,

Lighting and

Display

Voltage Regulation

RF Power Mgmt

Battery Charging

Backlighting


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II. Integrated Mobile Systems

Drivers

Growing Analog Content

Exploding Complexity

Customer Need for Solutions

Growth ~15%

Profitability 45-50% Gross Margin

FY13 Mix ~30%


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Panasonic Joint Venture

Acquired Controlling Interest in Panasonic Filter DivisionJV

Market Leader in TC-SAW; Skyworks Largest Filter Supplier

Complements Existing Filter Partnerships

High Volume Advanced Filter Manufacturing Assets, Leading

Filter Design and Full IP Portfolio

Important Building Block in a Complete RF System BundlePA, Switch, Filter


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III. Broad Markets

Drivers

Internet of Things

Connectivity in Verticals

Network Infrastructure Build-outs

Growth >15%

Profitability >50% Gross Margin

FY13 Mix ~30%

C ti it i N P d t C t i


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Connectivity in New Product CategoriesConnected Home Applications

Smart Home

Controller

Wireless Door and

Window Sensors

Smart Thermostat and

Smoke/CO2Alarm

Smart Lighting

Smart Door

Locks

MonitoringSmartMeter

HDTV

Printer

Blu-Ray

Player

Gaming Console

HomeStereo

Notebook PC

SmartAppliance

HomeSecurity

Set-top Box

802.11ac

AccessPoint

Media

Gateway
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=MabnrKWG25ipFM&tbnid=j5xKTq6IBe1vtM:&ved=0CAUQjRw&url=http://www.fool.com/investing/businesswire/2013/06/10/comcast-launches-new-xfinity-home-control-and-ener.aspx&ei=4CRlUtqaC9Pl4AOJuoHIDg&bvm=bv.54934254,d.dmg&psig=AFQjCNHVQwUVSx7xe5MN_NcLF3ok7T24JA&ust=1382446629155567


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Medical Applications

Varactor Module for Medtronics

Implantable Heart Monitor Detector ICs for GE

MRI Machines

Lighting IC for Phillips

Blue Light Therapeutic Device

Optical Solutions for

Varian Medical

Oncology Equipment

Ne De ices and Applications
http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=QP7Lmq2gyxfs0M&tbnid=w0PlHxBnWutt0M:&ved=0CAUQjRw&url=http://www.thepad.pm/2013/12/Medtronic-New-Loop-Recorder.html&ei=i5BnU8q-Dqbt8QGhgIGIDQ&bvm=bv.65788261,d.aWc&psig=AFQjCNFMYV0aE82pj9r6c40aiRq7DfJ1eA&ust=1399382524792125


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New Devices and ApplicationsAutomotive


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Tuning ICs For Audi

Telematics System

Switching Module for

Harmon Infotainment System

Backlight Driver for

Renault in-Dash Display

Navigational Assist Content

for Volkswagen

Switch Matrix for

Ford, Lincoln and Kia Models

Power Management ICs for

Johnson Controls

Homelink System

Automotive Applications


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Recent Design Activity

Homelink Automotive

System

802.11ac MU-MIMO Routers

and Residential Gateways

Aerospace and Defense

Opportunities with Cobham,

EADS, Herley, Teledyne

Connected Home Solutions

for CentraLite and Landis+Gyr

Custom Infrastructure Portfolio

Content

Implantable Heart Monitors

Gaming Platforms with

Microsoft, Nintendo and Sony


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Business Overview

Market Drivers

Revenue Mix

Financial Model


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Skyworks Financial Model


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Q214 Financial Highlights

Revenue up 13% YoY

Operating Income up 31% YoY

27.1% Operating Margin

$214M in Cash Flow from Ops $798M Cash on Hand, No Debt

Return on Invested Capital >20%

Announced Quarterly Dividend of

$0.11 Per Share

$425

$481

$0.25

$0.35

$0.45

$0.55

$0.65

$0.75

$350

$390

$430

$470

$510

$550

Q2'13 Q2'14

Revenue($M)

EP

S


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Note: EPS Presented on a Non-GAAP Basis

Updated Q314 Outlook

31% Year-Over-Year Growth

48% Year-Over-Year Growth

Revenue $535M

EPS $0.73

Prior

Guidance

Updated

Guidance

$570M

$0.80

Generating Economic Value by


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Returns in Excess

of Cost of Capital

ROIC = Annual Non-GAAP Net Income / Avg. 4 Qtr. Investment (Total AssetsNon Interest Bearing Liabilities)

0%

5%

10%

15%

20%

25%

FY10 FY11 FY12 FY13

Generating Economic Value byFocusing on Fundamentals


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Target Broad Based, High Growth Segments Enabling Connectivity in All Forms

Providing Value Added Solutions Analog Complexity Drives Profitability

Consistently Delivering Superior Returns Diversification and Scale

Summary

skyworks corporate overview

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