NXP Company presentation 2011
NXP Semiconductors
NXP Semiconductors N.V. (NASDAQ: NXPI)
provides High Performance Mixed Signal and
Standard Product solutions that leverage its
leading RF, Analog, Power Management,
Interface, Security and Digital Processing
expertise.


                                     Our innovations are used in a wide range
                                     of automotive, identification, wireless
                                     infrastructure, lighting, industrial, mobile,
                                     consumer and computing applications.

                                     A global semiconductor company with
                                     operations in more than 25 countries, NXP
                                     posted revenue of $4.4 billion in 2010.



                                                                                     2
NXP Semiconductors Management Team
   Rick Clemmer        Karl-Henrik          Mike Noonen       Chris Belden
   President and CEO   Sundström            Global Sales &    Operations
                       CFO                  Marketing




   Peter Kelly         Alexander Everke     Kurt Sievers      Ruediger Stroh
   Operations          General Manager      General Manager   General Manager
                       HPMS (excl. Auto /   HPMS Automotive   HPMS Identification
                       ID)




   Frans Scheper       René Penning de      Guido Dierick     Peter Kleij
   General Manager     Vries                General Counsel   Human Resource
   Standard Products   CTO                                    Management




                                                                                    3
Financial track record
Revenue (millions of USD)

  High Performance Mixed Signal   Standard Products




                                                      4
Highlights for Q1 2011
 Total NXP revenue of $1,082 million, flat year-on-year
   – Above original guidance and better than normal seasonality
   – Product revenue of $979 million, up 9.5% year-on-year
        • Up greater than $40 million
   – HPMS revenue of $742 million, up 6.8% year-on-year
   – Std. Product revenue of $237 million, up 19.1% year-on-year
 Significant Year-on-Year Margin Expansion:
   – GAAP Gross margin increased to 46.8% from 37.4%
   – GAAP Operating margin increased to 10.0% from (1.4)%
   – Non-GAAP gross margin increased to 47.8% from 39.0%
   – Non-GAAP operating margin increased to 20.6% from 11.7%
 Improved Cash Flow:
   – Trailing 12-month adjusted EBITDA $1.11 billion, up 104% year-on-year
 Deleveraging Balance Sheet Continues:
  – Net debt reduced to $3.75 billion, a decline of $568 million year-on-year




                                                                                5
Key macro growth drivers in electronics
                      Efficient power conversion and low stand-by power
        Energy        Energy-saving lighting and back-lighting
        Efficiency    Energy conservation through demand side management
                      Electric/lighter vehicles, intelligent traffic management


                      Proliferation of mobile data usage, wireless infra build-out
        Connected     Smart mobile devices: always-on, multimedia, location-based
        Mobile
                      Connected car, many broadcast & connectivity standards
        Devices
                      New user interfaces (e.g., touch, joystick)

                      Secure mobile transactions and secure identity
                      Authentication, tagging and tracking
        Security
                      Car and home access, security & remote diagnostics
                      Radar and (body) scanning installations

                      Personal healthcare and portable emergency devices
                      Connected hearing aids and implantable devices
        Health
                      Car safety & comfort
                      Electronic diagnostics




                                                                                      6
High Performance Mixed Signal Solutions

                                                                                                                                         Application Optimized Mix of
                                               More Than Moore Required
                                                                                                                                              Analog and Digital

                                                                          More Than Moore: Enrichment
                                                                                          High      Analog
                                                                                         Voltage   (amp, IF,        Sensors       Bio-
     More Moore: Miniaturization




                                                                              Passives   Power       DC)       RF   Actuators    chips
                                   Baseline CMOS: MPU, Memory, Logic




                                                                                                                                                 Radio
                                                                                                      Sense, Interact, Empower
                                                                        c75                        High-Performance Components                                Processor /
                                                                                                                                                                Storage
                                                                        c35                        High-Performance
                                                                                                   Mixed-Signal Solutions                      Interface
                                                                        c18
                                                                                                   • Power Efficiency,
                                                                                                     Autonomy
                                                                        c13
                                                                                                   • Cost Efficiency                              Sensor
                                                                                                   • Functional
                                                                                                                                                                     Power
                                                                       90nm                                                                       Actuator
                                                                                                     Performance
                                                                                Information
                                                                       65nm
                                                                                Processing,        • Miniaturization
                                                                                 Storage &         • Quality, Ruggedness
                                                                       45nm       Security
                                                                                                     and Adaptability
                                                                                                                                          Mixed-Signal Sub-Systems
                                                                                                                                          Digital Advanced CMOS


                                                                                                                                                                             7
 7
Uniquely Positioned to Win in HPMS

      6,800 HPMS
                                                 Leading                                      >2,600 experienced
       products:
                                               Mixed-Signal                                    HPMS engineers
    HP RF, Analog,                              and Digital
   Power, Interface,              Broad
                                               Design Skills
  MCU, DSP, Logic,              Product
  Security, Sensors,        Portfolio Across
      ADC/DAC
                                System                                                                Leading Patent Portfolio
                              Functions
                                                                                                                              >37,000 (WW)
                                                                                                                           14,000 (WW)
                                                                    Deep IP
                                                                                                                         >3,100 (US)
                                                                    Portfolio
                                                                                                                         3,126 (US)

                                                                                                                        2,103 (US)
                                                                                                                       ~900 (US)


                               Deep
                            Applications
                             Expertise           Specialty                                  • World class RF, HV power
                                                Processes &                                   and Auto processes
• 8 priority applications                       Competitive                                 • Scale back-end producing
• Hired >100 Field Application                 Manufacturing                                  60 billion parts per year
  Engineers in 2009                               Assets
                                                                                            • Largely Asian manufacturing

                                                       Source: Patent data from annual filings and company web-sites


                                                                                                                                         8
Strong innovation track record dating 50+ years
   Focused investment of over $550 million per year in R&D



                                Eindhoven (NL)   Nijmegen (NL)


                                    Leuven (B)

                                                       Hamburg (GER)
                                      Caen (F)
                                                          Gratkorn (Austria)

 San Jose (US)
San Diego (US)                                                                                       Shanghai/Suzhou


                                                                                         Hong Kong
                 Tempe (US)

   R&D key figures                                                                      Singapore

                                                                    Bangalore (India)
    Approximately 3,000 employees in R&D
     of which over 2,600 support our High-
     Performance Mixed-Signal businesses
    Engineering design teams in 22 locations
    ~14,000 issued and pending patents


                                                                                                                9
World class manufacturing capabilities
Differentiated process technologies and competitive manufacturing



                       Manchester   Nijmegen (NL)




                                          Hamburg (GER)

                                                                             Jilin



                                                                             Shanghai/Suzhou
                                                                             Kaohsiung
                                                                             Hong Kong/Guangdong
                                                                             Bangkok
                                                                             Cabuyao
                                                                             Singapore
                                                                             Seremban




      Front End
      Back End
                                                          Site name in blue = Joint Venture


                                                                                        10
Partnering with the Leading Customers
           Automotive                                Identification                        Standard Products




    Wireless infra, lighting                      Mobile, consumer
                                                                                                Distributors
         & industrial                               & computing




No account over 10% of sales, address 1,000+ Customer Design Centers directly, and over 30,000 via distribution


                                                                                                                  11
Our innovations are used in a wide range
of applications
  Wireless infra     Lighting       Industrial    Mobile




   Automotive      Identification   Consumer     Computing




                                                             12
Key applications (1/2)

  Wireless infra        Lighting             Industrial           Mobile




 • Wireless base    • Lighting drivers   • Smart grid        • Mobile devices
   stations           (CFL, LED)         • White goods       • Portable power
 • Point-to-point   • Lighting           • Home / building     supplies
 • CATV               networks             automation        • Personal health
   infrastructure   • Backlighting       • Power supplies    • Chargers
 • Broadcasting




                                                                                 13
Key applications (2/2)
   Automotive              Identification        Consumer              Computing




• In-vehicle             • Secure identity   • TV                   • Tablet PCs
  networking             • Secure            • Satellite, Cable,    • Note- /Netbooks
• Car access &             transactions        Terrestrial and IP   • Desktops
  immobilizers           • Tagging &           set-top boxes
                                                                    • Power supplies.
• Car entertainment        authentication    • Satellite outdoor      Monitors and
• Solid State Lighting                         units                  peripherals
• Telematics
• Lighting




                                                                                        14
Automotive

   #1 CAN/LIN/FlexRay in-vehicle
    networking
   #1 passive keyless entry and
    immobilizers
   #1 car radio
   #3 magnetic sensors




                                    15
Identification

   #1e-Government
   #1 Transport & Access management
   #3/4 Banking
   #1 NFC
   #1 Radio frequency identification




                                        16
Wireless infrastructure, Lighting and Industrial

 #2 in High Performance RF
 Strong in lighting drivers
 Leader in multi-market 32-bit ARM
  microcontrollers




                                              17
Mobile, Consumer and Computing
 #1 in TV and STB tuners
 Top 3 in interface, leader in specific
  niches
 #2 in Digital Logic
 Leader in notebook AC-DC power
  Adaptors




                                           18
Standard Products
 A strong supplier of integrated discretes
  and modules, used for interface signal
  conditioning, filtering and ESD
  protection in mobile phones, consumer
  and computing
 #2 supplier of small-signal discretes
  with one of the broadest product
  portfolios in the industry




                                              19
Standard Products & Key product applications
        Specialized
                      Mobile handsets & Computing



                            Various Consumer Electronics


                                 Special emphasis on demands of
                                 Automotive & Communications market


                                        All electronics



Broad




                                                               20
We are here for you, with a true …




                                     21
NXP Company Presentation

NXP Company Presentation

  • 1.
  • 2.
    NXP Semiconductors NXP SemiconductorsN.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise. Our innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. A global semiconductor company with operations in more than 25 countries, NXP posted revenue of $4.4 billion in 2010. 2
  • 3.
    NXP Semiconductors ManagementTeam Rick Clemmer Karl-Henrik Mike Noonen Chris Belden President and CEO Sundström Global Sales & Operations CFO Marketing Peter Kelly Alexander Everke Kurt Sievers Ruediger Stroh Operations General Manager General Manager General Manager HPMS (excl. Auto / HPMS Automotive HPMS Identification ID) Frans Scheper René Penning de Guido Dierick Peter Kleij General Manager Vries General Counsel Human Resource Standard Products CTO Management 3
  • 4.
    Financial track record Revenue(millions of USD) High Performance Mixed Signal Standard Products 4
  • 5.
    Highlights for Q12011 Total NXP revenue of $1,082 million, flat year-on-year – Above original guidance and better than normal seasonality – Product revenue of $979 million, up 9.5% year-on-year • Up greater than $40 million – HPMS revenue of $742 million, up 6.8% year-on-year – Std. Product revenue of $237 million, up 19.1% year-on-year Significant Year-on-Year Margin Expansion: – GAAP Gross margin increased to 46.8% from 37.4% – GAAP Operating margin increased to 10.0% from (1.4)% – Non-GAAP gross margin increased to 47.8% from 39.0% – Non-GAAP operating margin increased to 20.6% from 11.7% Improved Cash Flow: – Trailing 12-month adjusted EBITDA $1.11 billion, up 104% year-on-year Deleveraging Balance Sheet Continues: – Net debt reduced to $3.75 billion, a decline of $568 million year-on-year 5
  • 6.
    Key macro growthdrivers in electronics  Efficient power conversion and low stand-by power Energy  Energy-saving lighting and back-lighting Efficiency  Energy conservation through demand side management  Electric/lighter vehicles, intelligent traffic management  Proliferation of mobile data usage, wireless infra build-out Connected  Smart mobile devices: always-on, multimedia, location-based Mobile  Connected car, many broadcast & connectivity standards Devices  New user interfaces (e.g., touch, joystick)  Secure mobile transactions and secure identity  Authentication, tagging and tracking Security  Car and home access, security & remote diagnostics  Radar and (body) scanning installations  Personal healthcare and portable emergency devices  Connected hearing aids and implantable devices Health  Car safety & comfort  Electronic diagnostics 6
  • 7.
    High Performance MixedSignal Solutions Application Optimized Mix of More Than Moore Required Analog and Digital More Than Moore: Enrichment High Analog Voltage (amp, IF, Sensors Bio- More Moore: Miniaturization Passives Power DC) RF Actuators chips Baseline CMOS: MPU, Memory, Logic Radio Sense, Interact, Empower c75 High-Performance Components Processor / Storage c35 High-Performance Mixed-Signal Solutions Interface c18 • Power Efficiency, Autonomy c13 • Cost Efficiency Sensor • Functional Power 90nm Actuator Performance Information 65nm Processing, • Miniaturization Storage & • Quality, Ruggedness 45nm Security and Adaptability Mixed-Signal Sub-Systems Digital Advanced CMOS 7 7
  • 8.
    Uniquely Positioned toWin in HPMS 6,800 HPMS Leading >2,600 experienced products: Mixed-Signal HPMS engineers HP RF, Analog, and Digital Power, Interface, Broad Design Skills MCU, DSP, Logic, Product Security, Sensors, Portfolio Across ADC/DAC System Leading Patent Portfolio Functions >37,000 (WW) 14,000 (WW) Deep IP >3,100 (US) Portfolio 3,126 (US) 2,103 (US) ~900 (US) Deep Applications Expertise Specialty • World class RF, HV power Processes & and Auto processes • 8 priority applications Competitive • Scale back-end producing • Hired >100 Field Application Manufacturing 60 billion parts per year Engineers in 2009 Assets • Largely Asian manufacturing Source: Patent data from annual filings and company web-sites 8
  • 9.
    Strong innovation trackrecord dating 50+ years Focused investment of over $550 million per year in R&D Eindhoven (NL) Nijmegen (NL) Leuven (B) Hamburg (GER) Caen (F) Gratkorn (Austria) San Jose (US) San Diego (US) Shanghai/Suzhou Hong Kong Tempe (US) R&D key figures Singapore Bangalore (India)  Approximately 3,000 employees in R&D of which over 2,600 support our High- Performance Mixed-Signal businesses  Engineering design teams in 22 locations  ~14,000 issued and pending patents 9
  • 10.
    World class manufacturingcapabilities Differentiated process technologies and competitive manufacturing Manchester Nijmegen (NL) Hamburg (GER) Jilin Shanghai/Suzhou Kaohsiung Hong Kong/Guangdong Bangkok Cabuyao Singapore Seremban Front End Back End Site name in blue = Joint Venture 10
  • 11.
    Partnering with theLeading Customers Automotive Identification Standard Products Wireless infra, lighting Mobile, consumer Distributors & industrial & computing No account over 10% of sales, address 1,000+ Customer Design Centers directly, and over 30,000 via distribution 11
  • 12.
    Our innovations areused in a wide range of applications Wireless infra Lighting Industrial Mobile Automotive Identification Consumer Computing 12
  • 13.
    Key applications (1/2) Wireless infra Lighting Industrial Mobile • Wireless base • Lighting drivers • Smart grid • Mobile devices stations (CFL, LED) • White goods • Portable power • Point-to-point • Lighting • Home / building supplies • CATV networks automation • Personal health infrastructure • Backlighting • Power supplies • Chargers • Broadcasting 13
  • 14.
    Key applications (2/2) Automotive Identification Consumer Computing • In-vehicle • Secure identity • TV • Tablet PCs networking • Secure • Satellite, Cable, • Note- /Netbooks • Car access & transactions Terrestrial and IP • Desktops immobilizers • Tagging & set-top boxes • Power supplies. • Car entertainment authentication • Satellite outdoor Monitors and • Solid State Lighting units peripherals • Telematics • Lighting 14
  • 15.
    Automotive  #1 CAN/LIN/FlexRay in-vehicle networking  #1 passive keyless entry and immobilizers  #1 car radio  #3 magnetic sensors 15
  • 16.
    Identification  #1e-Government  #1 Transport & Access management  #3/4 Banking  #1 NFC  #1 Radio frequency identification 16
  • 17.
    Wireless infrastructure, Lightingand Industrial  #2 in High Performance RF  Strong in lighting drivers  Leader in multi-market 32-bit ARM microcontrollers 17
  • 18.
    Mobile, Consumer andComputing  #1 in TV and STB tuners  Top 3 in interface, leader in specific niches  #2 in Digital Logic  Leader in notebook AC-DC power Adaptors 18
  • 19.
    Standard Products  Astrong supplier of integrated discretes and modules, used for interface signal conditioning, filtering and ESD protection in mobile phones, consumer and computing  #2 supplier of small-signal discretes with one of the broadest product portfolios in the industry 19
  • 20.
    Standard Products &Key product applications Specialized Mobile handsets & Computing Various Consumer Electronics Special emphasis on demands of Automotive & Communications market All electronics Broad 20
  • 21.
    We are herefor you, with a true … 21