September 2014 Investor Presentation

1. INVESTOR
PRESENTATION
September 2014

2. 2
Notes on Forward Looking Statements
and Non-GAAP Measures
• Comments in this presentation other than statements of historical fact may constitute forward looking statements and are
based on Fairchild’s management’s estimates and projections and are subject to various risks and uncertainties
• These risks and uncertainties are described in the Company’s periodic reports and other filings with the Securities and
Exchange Commission (see the Risk Factors section) and are available at http://sec.gov and investor.fairchildsemi.com
• Actual results may differ materially from those projected in the forward looking statements
• Some data in this presentation may include non-GAAP measures that we believe provide useful information about the
operating performance of our businesses that should be considered by investors in conjunction with GAAP measures that
we also provide. You can find a reconciliation of non-GAAP to comparable GAAP measures at the Investor Relations
section of our web site at http://investor.fairchildsemi.com
Recent additions to our website at http://investor.fairchildsemi.com
Updated Financials (through current quarter with segment revenue/gross margin breakouts)
• Quarterly Fact Sheet with current quarter highlights
• This investor presentation

3. 3
Fairchild Overview

4. 4
Fairchild Today…
Fairchild Semiconductor
2013 Revenue $1.4B
Mobile, Computing, Consumer &
Communications Group
(MCCC)
(38% of 2013 Revenue)
Mobile Power
Switches & Interface
Signal Conditioning
LV MOSFETs
Logic
Comprehensive offering of low voltage
solutions (<200V)
Power Conversion, Industrial & Automotive
Group
(PCIA)
(52% of 2013 Revenue)
Power Conversion
HV MOSFET & IGBT
SPM
Automotive
Opto
Comprehensive offering of high voltage
solutions (>200V)
Standard Products Group
(SPG)
(10% of 2013 Revenue)
Standard discrete & analog
Essential functions for key
customers

5. 5
• Energy efficiency, mobility and cloud
mega-trends
• Power silicon content grows faster than
end market sales – premium paid for
efficiency
• Fairchild has deep power system
knowledge to support greater integration
and higher efficiency
• Company focused on delighting all
customers from large OEMs to the ―long
tail‖
Markets That Drive Our Business

6. 6
Building a Great Leadership Team
• Promoting from within in areas of progress
Automotive, Supply Chain, Assembly & Test
• Recruiting & upgrading in areas of weakness
Sales & Marketing, Fab Operations, Engineering
• Opportunistically adding talent
Strategy, Finance

7. 7
Building a Great Company
SALES &
MARKETING
TECHNOLOGY
OPERATIONS
BUSINESS
UNITS
• Solid operations org is key foundation
• Sales & marketing as well as
technology also well in place
• Business units key focus now

8. 8
Our Culture
EXCEL
ENGAGED
EMPLOYEE
DELIGHTED
CUSTOMER
RESPECT
SPEED
EXPLORE SIMPLIFY
PLAY
DIRECT
WORLD-
CLASS
COMPANY
CHALLENGE

9. 9
Fairchild Strategy

10. 10
Strategy as a Daily Activity
Differentiated Products
Application-Centric
Customer Focus
Product-Centric
BEFORE
Commoditized Technology Approach
NOW
Driving Innovation & Disruption

11. 11
$0
$6
$12
$18
$24
$30
$36
$BUSD
MOBILITY
ENERGY
CLOUD
App-Centric vs. Product-Centric
Fairchild Addresses 45% of the TAM in 2018
New
strategic
focus
areas
enable
Fairchild to
address
45% of
TAM
$24.6B TAM
2013 2018
Source: TAM – WSTS 2014 Spring Forecast (excluding standard products, such as logic)
Addressable Percentage - Fairchild Internal Data
$32.2B TAM
% of TAM addressed based on product-centric
% of TAM with new strategic focus
13%

12. 12
All companies have
PRODUCTS
Good companies have
STRATEGY
LINKING the two
LEADS TO a
GREAT company
50,000 ft
1,000 ft

13. 13
13
50,000 ft
1,000 ft
CLOUDENERGY MOBILITY
25vFET 100vFET 600vFET GATE DRIVER MUX INTEGRATED SOLUTION WIRELESS IC DIODE FUEL GAUGE
CHARGER
Systems solutions
that serve the
needs
Technologies that
build the systems
50 product ideas
Power System in
Package,
Sensing Systems,
Intelligent Sensors
Today
Application Themes: Customer Empathy

14. 14
Controller IP
Isolation IP
LV/MV FET IP Packaging IP
Driver IP
Sensor IP
HV FET IP
COMPETITOR
14
Power Systems Landscape

15. 15
Controller IP
Isolation IP
LV/MV FET IP HV FET IP
Sensor IP
Driver IP
Packaging IP
Controller IP
Isolation IP Sensor IP
Driver IP
HV FET IPLV/MV FET IP
15
Power Systems Landscape

16. 16
Megatrend/Insight Datacenter operators care about
total cost of operations (i.e. end-end efficiency)
Application
Technology
Fairchild Differentiation
Market Potential $700M in 2018
Strategy to Revenue
Datacenter
High Voltage
IGBT
Med Voltage
MODULE
Low Voltage
MODULE
Competitor 1Competitor 2
Fairchild = End-to-End Solution Provider
Competitor 3

17. 17
Megatrend/Insight Consumers don’t want to think about charging
Application Mobile, Phone, & Tablet
Technology Adaptive, Smart-Charging ICs
Design In 2015 Large Chinese Mobile Customer — Fairchild Total System Solution
Fairchild communications protocol enables customers to provide a total
system solution, from wall AC adaptor to battery.
Market Potential $3.8B in 2018
Strategy to Revenue
Wall to Battery (W2B)

18. 18
Megatrend Reduce vehicle CO2 emissions through electrification
Insight 48V Technology allows OEMs to reduce losses and provides better
return ($ spent / CO2 reduction)
Application of Focus Mild hybrid
Technologies High-performance power modules SPM®
Design In 2015 3 Tier 1, 4 OEM in 3 continents
Market Potential $2.1B in 2018
Strategy to Revenue
Automotive

19. 19
Megatrend/Insight Autonomous machine control
Application Industrial internet of things and wearables, from drones, robotic
vacuums to technical clothing
Technology MTi family: 3D motion hardware and software modules
Target Customer Broad industrial applications and wearables
Market Potential $1.4B* in 2018
Strategy to Revenue
Motion Tracking
* Does not include Smart Phone applications

20. 20
Marketing & Sales Overview

21. 21
Sales Overview
• Foundation — New sales strategy
• People — New leaders, skills, mindset
• Deployment — New growth opportunities
• Execution — New customer engagement model

22. 22
Foundation
New Sales Strategy
• DEMAND CREATION
- Design In/Win — shift coverage to R&D
- System approach — understand the application
- Customer empathy — fill a latent need, solve a problem
• CLOSER TO CUSTOMERS
- Proximity — quick response
- Adaptive — fragmented customer base
- Agile — early engagement with emerging customers
• ACCOUNTABILITY
- Revenue accountability moved to design origin
- Pay on results — new sales bonus on design-in, revenue growth

23. 23
• NEW SKILLS – VALUE ADDED TO CUSTOMERS
- More technical sales – EE
- More Field Applications Engineers (FAE) – FAE as application experts
• NEW MINDSET – PROACTIVE, DRIVE DEMAND
- More field-based people, less operations
- Relationship-builders
People
New Leaders, Skills, Mindset
JOSEPH KARIM
Americas VP
22 years
Atmel, Intersil, ADI
ANDY LAI
China VP
22 years
ADI, NSC, TI
ANDREAS HAMMER
EMEA VP
16 years
SiLabs, TI
JOSEPH NOTARO
Motion Tracking VP
22 years
STM
WEI LI
Taiwan GM
20 years
Lucent, Maxim
• RAISING THE BAR – NEW LEADERSHIP TEAM

24. 24
Resources
Best Deployed
• Increase investment on most significant markets
- China
- Germany
- Silicon Valley
• Shift resources to most promising opportunities
- Generated revenue vs. transacted revenue locations
- Invest where the growth will be vs. where revenue is today
- Aligned company focus segments
• Expand customer base
- More in fragmented markets: (i.e. Industrial, Auto)
- Emerging segments and customers: (i.e. Wearables)
- Mass market

25. 25
Resources
Go-to-Market
ASSIGNED
ACCOUNTS
MASS MARKET
LONG TAIL
Growth
Potential
• Biggest growth opportunity
• Focus, depth — 80% of
resources
• Demand creation
• More customers
• Leveraging distribution
• More engineers
• Leverage the web & catalog
distributors
• Build brand awareness

26. 26
New Customer Engagement
• CUSTOMERS DRIVE PRODUCT DEFINITION
- System expertise provides unique insight
- FAE conduit of customer pain points
• INCREASE COMPLETE RECEIVED VALUE
- Product to solution, design expertise
- Supply chain excellence
- No EOL policy
• RELATIONSHIPS MAKE A DIFFERENCE
- Attention to every customer
- Focus on customer empathy

27. 27
• CLOUD & TELECOM
- Move to IC & System approach
- More strategic engagement
- Growth acceleration
• MOBILE POWER & W2B
- Full end-end solution
- Huge value to customer
- Major ASP increase YR13 Y14 $M Y15 $M Y16 $M
Others
Mobile Power & W2B
Cloud & Telecom
Source: Fairchild Internal Data
Execution Customer Showcase
Relationship, Focus, System Approach Drives Growth

28. 28
Marketing Overview
• New Brand
• New Go-to-Market
• Success
• Customer Count

29. 29
Why Reposition The Brand?
• Brand history: older company & commodity sales
Stagnation in customer growth & revenue
• A new Fairchild brand
Energize employees
Attract top-notch engineering & sales talent
Grow relationships with design engineers
• Long-Tail customers create innovative products

30. 30
Old brand identity
2013

31. 31
New Brand Identity
2014

32. 32
New Branding
―Xiantong‖ in China
• Historical significance
• Strong awareness
• Positive connotation

33. 33
New Go-to-Market
Website: Optimized for Long-Tail Lead Generation
• SHIFT commodity sales content to
value-added content
• MOVE design engineers through
the entire buying journey

34. 34
New Go-to-Market
Success Via Power Seminars in 2014
• 3x new customer leads
• Scalability
Live streaming to remote locations
Post-seminar engagement
• Wider awareness
New prospects
Social media & community
Boston, MA – May 1
Taichung, Taiwan – May 15
Beijing, China – May 20
Shenzhen, China – May 22
San Jose, CA – June 3

35. 35
New Go-to-Market
Success Via Accelerating Customer Acquisition
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
# of Customer
Locations
Source: Fairchild Internal Data

36. 36
Finance Overview

37. 37
Highlights of the Quarter – Q2 2014
 Sales were $372m, up 8% QoQ and 4% higher than a year ago
 Industrial & appliance demand remained seasonally strong…design wins in leading Asian appliance makers and solar inverters
 Automotive sector demand was up 9% QoQ and 14% YoY…great pipeline of business opportunities in the power train
 Mobile demand was up QoQ…design wins at leading Asian reference designs and major mobile platforms
 Distribution POS was up 8% QoQ and channel inventory was roughly flat in $ resulting in about a 1 week reduction to 9 weeks of
inventory. Fairchild maintains one of the leanest inventory positions in the industry
 Gross margin was up 3 points to 33.4% which was better than forecast due primarily to higher factory loadings in Q1, better
product mix and strong manufacturing execution
 OPEX was $98m or up $1.4m QoQ due to the annual merit increase and equity vesting offset by one-time benefit cost reductions
 Free cash flow was $70m in Q2. Net cash was higher QoQ at $120m despite repurchasing $69m in stock
 Repurchased 5m shares in Q2 or 4% of outstanding stock…plan to buyback another $100m in the next 2 – 4 quarters
 Utilization increased in Q2…plan to reduce factory loadings in Q3 to tightly control inventories
 Lead times remain short and supply chain is well positioned to support turns business

38. 38
Q3 Forward Guidance Provided at Q2 Earnings Call
• Sales expected to be $370 – 385m
• Gross margin expected to be 34 – 25% due primarily to higher sales &
factory utilization as well as better product mix
• R&D and SG&A forecast at $97 to 99m
• Adjusted tax rate forecast to be between 15% +/-3%

39. 39
Adjusted Revenue & GM%

40. 40
Adjusted EPS

41. 41
4 Qtr Rolling Adjusted EPS

42. 42
Balance Sheet Improvement
Disciplined Asset Management
• Q2 balance sheet summary:
• Cash and investments exceed debt by $120m
• Internal inventory increased to 87 DOI…still lean at <90 days but we plan to
reduce factory loadings in Q3 to tightly control inventories
• DSO decreased QoQ to 36 days
• Days of payables increased QoQ to 46 days
• FCF was $70m
• Primary focus remains investing in our business and enhanced buyback
• Repurchased $69m of stock or 5m shares to reduce share count by 4% in Q2
• Plan to buyback another $100m of stock in the next 2 – 4 quarters

43. 43
Free Cash Flow

44. 44
4 Qtr Rolling FCF % Revenue

45. 45
Debt Composition
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1997 1999 2001 2007 2008 2009 2010 2011 2012 2013
Drawn Revolver Term Loan Convert High Yield

46. 46
Net Debt & Interest Trend
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
-700
-600
-500
-400
-300
-200
-100
0
100
200
300
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q1 '14
Net Cash Interest % of Revenue

47. 47
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48. THANK YOU