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ANADIGICS presentation at ROTH investor conference

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Terry Gallagher, ANADIGICS CFO, presented the company's strategy and progress toward profitability at the ROTH investor conference on March 10, 2015.

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ANADIGICS presentation at ROTH investor conference

  1. 1. 27th Annual ROTH Conference Q Q March 10, 2015 % @ ” 6.3‘? its. E @: 3'39 Q? :é7:@‘r: Terry Gallagher Executive Vice President and CFO @
  2. 2. I‘ Q E E Forward Looking Statements During the course of this presentation, ANADIGICS may make projections or other forward- looking statements regarding future events or its future financial performance. The words "estimate, " “intend, ” "expect, " "plan, " or similar expressions are intended to identify forward- looking statements. ANADIGICS wishes to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially. Important factors relating to our business, including risk factors that could cause actual results to differ from our forward-looking statements, are described in our Fiscal 2014 Fonn 10-K, our 10-Qs, our prospectus and other filings with the SEC. All numbers will be presented on a non-GAAP basis. Non—GAAP financial measures exclude equity compensation charges, marketable auction rate securities’ movements, restructuring charges and other specifically—identified non- routine items referenced in our quarterty earnings releases. The non-GAAP measures are provided to enhance the understanding of our core operating perfonnance and a full reconciliation of these non-GAAP measures to our GAAP results are presented in our quarterly earnings releases. ANADIGICS assumes no obligation to update forward-looking statements to reflect actual results or changed assumptions or other factors.
  3. 3. L§mr>r>rcrcs About ANADIGICS Leading provider of state-of-the-art power amplifiers and front-end | Cs - Founded in 1985 Headquartered in New Jersey 300 employees in 8 locations NASDAQ Listing: ANAD since 1995 ISO 9001 Certified ’-‘-‘. rm-'1 NJ II N ‘J. 1 L», .. ulllnlht fr. ( crsco Ana-s P309 ¢@’ %J. s:3:: :~. SQ . UBl9U. '.T! @ LG NETGEAR' lenovo. technetlx HUAWEI Key supplier to Tier 1 customers worldwide
  4. 4. The Infrastructure Transition ANADIGICS Past H2 ‘14 Future 3" *1 fig '""“" Mobile structure Mobile '"f'a' _l structure lnfra- Mob] e structure ' V°'at"9 qUa'TeT't° quartet - Longer product life cycles ° C°mm°dlW PT°dUCt5 - Differentiated products - Sub-optimal gross margin . Solid gross margin ' Valuation diSCOUnted On o company Va| uat]on
  5. 5. 25% 20% 15% 10% Gross Margin 5% 0% W I I :3.» Financial Progress 5 100% _ g ‘D E 80% >2X Higher a -§ 5 60% V/ E Egg 40% I ties I E? 20% H “' 0% JD LI LI Iii No.45 $0.45 (50.3: $0-Cv No.3 W0-3» (50-3» bO. :Ob; ,, 520 44% Lower »§ 515 : s1o E :5 ‘1Q15(e) OP EX, 2200 bps Higher gross margin and EBITDA are consensus analysts estimates.
  6. 6. LEAHADIGICS 2015 Infrastructure Markets and SAM Cable TV (S200/I/1) Line Amps, SubscriberAmps 2015 SAM Small Cell . 5? 7IjI= :7I~7.'I1 3G/4G Infrastructure Amps Opncm VCSEL Foundry C ataloq I S 7 OOI“~. .«I. I Discrete RF components WIFI T I O T I 3 7 OOMII Routers, Access Points, O 3G/4G M2M and Automotive Gateways’ CPE Sewing large markets with solid growth prospects Source: Strategy Analytics and Management Analysis
  7. 7. S E E: L‘! $200M SAM Cable MSO Spend ($B) Cable TV (CATV) - 1200 MHz DOCSIS 3.1 driving ramp in worldwide MSO spend ($13B / year and increasing) - Design wins at major US OEMs and broad penetration in Europe - using GaN, MESFET, pHEMT in multiple package types DOWNLO AD r-IEW AN. »‘-. D PRODUCTS SPEEDS [_A_Ur-JCHED IN SUPPORTED BY 2H14 GIGASPHERE - Complex modulation format (OFDM) demands high-linearity at high-power Source: SNL Kagan Estimates per NCTA
  8. 8. Linnnoicics Small Cell - >3x ANAD annual revenue growth in 2014 and >2x in 2015 (expected) W $1.5 - Market leader in efficiency for best $10 I thermal design $05 $00 - | ndustry’s broadest Small Cell 3G/4G PA portfolio ( ) 2013 >65°/ o MARKET $100M SAM Small Cell Equipment (358) 2014 GROVVTHIN 2014 2018 26% MARKET CAGR EXPECTED 2013-2018 *Source: Infonefics Research, March 2014
  9. 9. S E E L? WiFi Infrastructure $250M SAM Global Access Point Shipments - Reference designs with 3 major ‘°°% ” " " ' chipset partners driving OEM base a°% I 60% I - I 40% I - Enabling 802.11ac Wave 2 with 20% unique power amps and FEMS 0% 2014 2016 2018 I80211a/ big 80211n n80211ac - Ultra-low current consumption solves thermal and electrical challenges 300,000 802.1 1ac access points sold in 1014 . .a- > - MIMO systems up to 8x8 multiply . ,, ,, Ubiquiti Networks TREND t I an’ II the PA content In each box NanoBeam rEw-s2s'E§Eu §3li. a.§§§13’a M5 AirMAX AC3200 Tri Band Source‘ Infonetics, May—June, 2014
  10. 10. Linnnoicics Optical $300M SAM VCSEL Market ($B)" - World’s first 6” VCSEL waferfoundry 5” 521 — enables | ow—cost manufacturing and scale * 52° for leading VCSELtechnology companies I’ 51.5 I no 50.5 I I 50.5 » — - VCSEL Applications: M A _ — proximity sensors 2013 2018 — biometric sensors — 3D imaging — gesture recognition — multi—gigabit-per-second Ethernet 33.1 %** CAGR for VCSEL from 2013 to 2018 ‘ Source: http: l/www. myvcse| .comIdesigning—wrth—vcsels/ " Source: BCC Research, June 2014
  11. 11. (/3 5.! Q 2 E L: Internet of Things (| oT) and Catalog $200M SAM Global M2M Module Market ($B)" - Applications include in—cabin automotive and industrial M2M - ANAD’s leading | oT customer ranks #1 in M2M cellular embedded modules“ - RF Catalog: Discrete components — voltage—contro| led oscillators — gain blocks 53.5 53.0 52.5 52.0 31.5 7 $1 0 I 51.9 51.4 50.5 » 50.0 2014 Sierra Wireless AR‘/552 Huawei ME906 ‘Source: lnfonetics, April 2014 52.9 OF TOTAL Alb‘-. C REV ENU E FROM #1 RANKED l. l2l. l MODULE l. l£n. KER" “Source: ABI, July 2014
  12. 12. Mobile WiFi and Cellular >$1B SAM - Solid portfolio of WiFi, 3G/4G PAs and FEMs to promote where strategic ‘ - Enabling tremendous power savings § ! and extended battery life in 2.4 and 5 Huawei L6 U3 El Q 2 5 Li GHz WiFi applications "5°°"a P7 G3 Baa‘ - Continue penetration in new flagship / sockets with CDMA, WCDMA, ‘ >30"/ o* TD—LTE _ l. ?*c. ‘i. l3‘. i25'é*. ?. ' GLOBAL Samsung SHlPlV‘ENTS Galaxy Note 4 12 ‘ Source‘ Digmmes Research, March 25, 2014
  13. 13. Innovation Drives Value - 6” VCSEL foundry l>il‘ll>tDlGlCS « Products enabling higher-datarate * / communication links _ x": ,,—, e - Ultra-high linearity for higher WiFi data rates A — Uniquely linear DOCSIS 3.1 power amps — Advanced Electro-Optical interconnects F? -4 ~ Leveraging new technologies to enable higher linear power levels - GaN — Advanced pHEMT Technology investments strengthen long-term competitive advantages and value 13
  14. 14. Efinnnoicics Financial Progress - Summary $40; ; - , ____ ; ;$00 $35 H I I la I I -51.5 1“ $30 I I -5930 3 $25 I» {-54.5 5: g $20 7 9% -$6.0 E 33' $15 — — ———~eI— —$7.5 “J $1oI I -3590 $5 I I I —I ~ -5105 $0 4 ‘ —$120 (1013 2013 3)13I4Q13 1014 2014 3114 4Q14I1O15(e)V - $10M credit facility with Silicon Valley Bank adds to net cash Infrastructure-focused product mix and lower expenses create tremendous operating leverage ‘ 1Q15(e) revenue, gross margin and EBITDA are consensus analysts estimates.
  15. 15. Financial Model I 1Q14 (a) ZQ14 (a) 3014 (a) 4014 (a) 1Q15 (e)‘ Transition" Long Term” Revenue (SM) $23.3 $23.3 $18.8 $20.9 $18.5 100% 100% IEDIHI-‘IDIGICS Infrastructure Revenue: 40% I 43% I 53% I 47% I 60% I 75% I 85% MobIileIRe7£3niueII 330%; 57% : fi4a7% 53% 40% i 25% 15% Gross MarginI 10.9% 12.3% 15.0% I 13.7% 22.7% 35% 45% Operating EXPG"-59l5MlII $121 I $10.7 3 $8.7 $8.5 I $8.5 3 35% 3 30% EBlTDA($M)I 5(e_3) I $(4.7) I s(3.2) I $(2.1) I >$(1.7) 7% 20% Operating Income $(9.6) $(‘/ .7) $(5.7) $(4.7) $(4.3) 0% 15% r Net Cash ($M) I $14.1 $9.7 $9.5 $14.4M Long-tenn financial model targets 1 5"/ . Operating Income 15 “ ANAD mfi"899m9"l 3511703195 / ‘M9915 ‘ 1Ql5(e) revenue, gross margin and EBITDA are consensus analysts estimates.
  16. 16. Thank You .8_u_%_E¢w. 16

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