UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
February 26, 2015
Date of report (Date of earliest event reported)
ON Semiconductor Corporation
(Exact name of registrant as specified in its charter)
| Delaware | 000-30419 | 36-3840979 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
| ON Semiconductor Corporation 5005 E. McDowell Road Phoenix, Arizona |
85008 | |
| (Address of principal executive offices) | (Zip Code) |
(602) 244-6600
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 7.01. | Regulation FD Disclosure. |
On February 26, 2015, ON Semiconductor Corporation (the “Company”) presented business and financial information to institutional investors, analysts, members of the press and the general public at a publicly available webcast meeting (the “Investor Meeting”). Attached hereto as Exhibit 99.1, and incorporated by reference herein, is the Investor Meeting presentation made by executives of the Company. The presentation includes forward-looking statements and accompanying Risk Factors and can be found at onsemi.com under the Investor Relations tab.
The information under this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is being furnished under Item 7.01 and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability of that section nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. |
| (a) | Financial Statements of Businesses Acquired |
Not applicable.
| (b) | Pro Forma Financial Information |
Not applicable.
| (c) | Shell Company Transactions |
Not applicable.
| (d) | Exhibits |
The following exhibit is furnished with this report:
| Exhibit No. |
Description | |
| 99.1 | ON Semiconductor – Investor Meeting Presentation dated February 26, 2015 | |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ON SEMICONDUCTOR CORPORATION (Registrant) | ||||
| Date: February 26, 2015 | By: | /s/ George H. Cave | ||
| George H. Cave | ||||
| Executive Vice President, General Counsel, Chief Compliance and Ethics Officer, Chief Risk Officer and Corporate Secretary | ||||
3
Exhibit 99.1
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ON Semiconductor
Financial Analyst Day
Scottsdale, AZ
February 26, 2015
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Safe Harbor Statement and
Non-GAAP and Forecast Information
During the course of this conference call, we will make projections or other forward-looking statements regarding future events or the future financial performance of the company. The words
“believe,” “estimate,” “anticipate,” “intend,” “expect,” “plan,” “should” or similar expressions are intended to identify forward-looking statements. We wish 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 factors that could cause actual results to differ from our forward-looking statements, are described in our Form 10-K, Form 10-Q’s and other filings with the Securities and Exchange Commission. Additional factors are described in our earnings release for the fourth quarter and year ended 2014. Our estimates may change and the company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors, except as required by law.
Some data in this presentation may include non-GAAP financial measures. You can find reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP within the following presentation on our website (http://www.onsemi.com) in the
“Investors” section under the category “Annual & Quarterly Results.”
Forecasts are based on current expectations and are subject to change without notice. This presentation will not be updated to reflect any such changes.
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Analyst Day 2015 |
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ON Semiconductor
Agenda
Introduction—Parag Agarwal 8:00-8:05
Strategic Overview—Keith Jackson 8:05-8:35
Q&A 8:35-8:50
Standard Products Group—Bill Hall 8:50-9:10
System Solutions Group—Mamoon Rashid 9:10-9:30
Break 9:30-9:45
Image Sensor Group—Taner Ozcelik 9:45-10:05
Application Products Group—Bob Klosterboer 10:05-10:25
Q&A 10:25-10:45
Finance—Bernard Gutmann 10:45-11:15
Q&A 11:15-11:50
Lunch/Golf Outing
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Analyst Day 2015 |
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ON Semiconductor
Keith Jackson President & CEO
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ON Semiconductor
Embarking on a new phase of growth and shareholder returns
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Analyst Day 2015 |
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ON Semiconductor
Key Takeaways
Growth
Above industry over the next 5 years
Levered to high growth markets,
strong product cycles
Building on a Strong Leverage
Significant expansion in margins
strong foundation Steep acceleration in EPS
Robust Cash Flow
Expect ~$400m in near to mid term
Potential of greater than $400m in
out years
Efficient Deployment of capital
Return sizable part of free cash to
shareholders
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Analyst Day 2015 |
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ON Semiconductor
2014 Highlights
Stabilized System Solutions Group
Robust growth in core business and target segments Built market leading imaging portfolio Expanded margins and posted strong EPS growth Announced capital return policy and $1B share repurchase
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Analyst Day 2015 |
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ON Semiconductor
Agenda
Leveraging past investments
Industry leading growth
Focus on cash generation and returns
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Analyst Day 2015 |
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ON Semiconductor
Where We Are Now
Industry Leading Cost Structure Above Industry Revenue Growth Increasing Shareholder Returns
Formidable Scale Automotive High Performance with ~$3.5B in Analog revenue1
Industrial
Image Sensors ~1 B Units/Week
Communications
Standard Products
Wide Sales Reach
Scale Favorable Broad Product End-markets & Technology Portfolio
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Based on 4Q14 revenue run rate |
9 Analyst Day 2015
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ON Semiconductor
Shift in Strategic Priorities
Past Priorities Current Priorities
Invest in establishing scale Leverage past investments
to be competitive to drive growth and margins
Acquisitions for scale and Tuck-in acquisitions for
market reach technology
Limited shareholder returns Robust shareholder returns
Aggressive R&D Streamlined and targeted
R&D investments
10 Analyst Day 2015
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ON Semiconductor
Thoughts on Acquisitions
Focus on technology Aim is to acquire technologies and leverage scale
to grow revenue
driven deals Preference toward small tuck-in deals
Large acquisitions Loss of revenue due to customer multi-source strategy
No attractive assets
appear challenging Steep valuations
No need to ON Semiconductor has established significant scale
consolidate to be competitive
Better return on capital in other opportunities
11 Analyst Day 2015
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ON Semiconductor
Sustainable Competitive Advantage
Cost Structure
Industry leading cost structure Large scale and efficient operations
Logistics and Sales Network
Global sales and distribution presence Strong relationships with market leaders
Integrated Manufacturing
Leadership in packaging technologies Control over cost, technology & supply
® Broad Product Portfolio
One stop shop for discretes and ICs 48,000 SKUs
12 Analyst Day 2015
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ON Semiconductor
Key Growth Drivers
Automotive
Smartphones Industrial
Expected 5 year revenue Expected 5 year revenue
Expected revenue CAGR of
CAGR of 5-9% CAGR of 7-9%
5-7%
Broad engagement with Rapidly expanding
Focus on growth areas such
global market leaders product portfolio
as motor control, lighting,
and energy efficiency
Leadership in high growth
areas e.g. LED lighting, Strong ecosystem
image sensors relationships
ON revenue growth to exceed Operating leverage and mix
that of the semiconductor improvement to drive margin
industry expansion and EPS growth
13 Analyst Day 2015
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ON Semiconductor
Change in End-market Mix
Consumer
22% 26% Automotive
2012 61%
16% Communications
$2,895 M
17% 19% Industrial
Computing
Consumer 31%
Automotive
6%
2014 71%
18% Communications
$3,162 M 13%
22% Industrial
Computing
14 Analyst Day 2015
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ON Semiconductor
Automotive – expected revenue CAGR of 5-9%
Body & Interior
Body computers & gateways Motor control Bus protection
HVAC • Smart-junction box Infotainment
Door Instrument clusters • Active antenna
Lighting
Revenue ($M) • LED exterior • Advanced front (AFS) 1,000 • LED interior • Motor control
HID front lighting
900
Automotive Content—BOM Opportunity of up to $250 per Vehicle
800
Power Supplies LIN/CAN
700 • In-vehicle Networking • FlexRay & Ethernet
600
Active Safety
500 • Electronic Power Steering • Suspension
2012 2013 2014 • Park Assist • Advanced Driver Assistance
Dynamic Braking
Fuel Economy and Emissions Reduction (Powertrain)
Engine control Sensor interface 48V/HEV/PHEV
Transmission Start – Stop EV
Ignition
15 Analyst Day 2015
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ON Semiconductor
Industrial – expected revenue CAGR of 5-7%
Industrial
Circuit Breakers Utility Metering Sensor Interfaces
Human-machine Wireless Security & Alarm Factory Automation
Interfaces Systems • Valve Control
Smart Motor Controllers Appliance Control
750 Revenue ($M)
650 Building Automation
HVAC Control Security & Access • Lighting Control
550 CCTV Control Building control Systems • Smoke Detection
Fire Detection & Alarm Integration
Ventilation Energy Management
450
350 Medical
2012 2013 2014
Blood Glucose Monitors • LED Lighting
Heart Rate Monitors • Ingestible Diagnostics
• Hearing Aid SOC
16 Analyst Day 2015
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ON Semiconductor
Rapidly Expanding BoM in Mobile
Power Management
Mobile Content Os Supervisory AC-DC for Adapters
Battery Charger Load Switch OVP/OCP Wireless charging
BoM Opportunity of $9 DC-DC Temp Sensor Fuel Gauge
(vs $3.50 in 2009) Battery
Battery FETs
Battery Protection IC
Revenue ($M) Protection
600 EMI filters + ESD Protection ESD TVS Arrays
ESD TVS diodes Active EMI filters
550 RF Signal Path
RF Antenna Tuners PA Power Control
500 Integrated Passives
Camera and Audio
450 Autofocus Audio Amps
Optical Image Stabilizer Noise Cancellation DSP
400 LCD/Lighting
2012 2013 2014 LED Backlighting Proximity Sensor LCD Bias Power
Ambient Light Sensor Haptics Feedback Flash Drivers
Discrete Building Blocks
FETs & Transistors Audio/Video Switches
Logic Diodes
17 Analyst Day 2015
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ON Semiconductor
Capital Return
Generating shareholder value is a key priority for the company
80% of FCF less debt payments to be returned to shareholders
Stock repurchase plan for $1 billion over a four-year period
18 Analyst Day 2015
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Questions & Answers
19 Analyst Day 2015
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Standard Products Group
Bill Hall
Executive Vice President
20 Analyst Day 2015
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Standard Products Group
Robust Industry-leading Performance
21 Analyst Day 2015
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Standard Products Group
Key Takeaways
Highly profitable and growing business with strong visibility
Industry leading financial performance
Solid share gains—outgrew the market by ~2x in 2014
Investing in high performance products to drive growth
22 Analyst Day 2015
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Standard Products Group
“The reports of my demise have been greatly exaggerated.”
Mark Twain
Units in Billions
GM %
50
36%1 35%1
40
42.0 30 37.0 35.1 35.0 31.7 29.0 29.1 26.5 27.2 26.7
20
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Units Sold GM % Linear (GM %)
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: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
23 Analyst Day 2015
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Standard Products Group
Long product life cycles
Quick Facts
11,000 Part #s
Ship 42BU/yr
$1.2B Revenue
4th in Market Share
2015 2010 2005 2000 1990 1980 1965
$1.2 B revenue
20%1 operating margin in 2014
42 B units shipped, 11,000 core parts
Driving growth in automotive, industrial and wireless
| (1) |
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: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
24 Analyst Day 2015
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Standard Products Group
2014 Highlights
Grew revenue by 8% Y/Y vs. Industrial 14% competitive group at 4.3%
Automotive 30%
Gross margin1 of 35.6%, up
Wireless 20% 80bps Y/Y
Telecom 4% Industry leading operating margin1 of 20%
Consumer 16% Computing 15%
Solid new product introduction across multiple end-markets
(1) : Non-GAAP measures. Refer to investor relations section of our website – www.onsemi.com for definitions and adjustments
25 Analyst Day 2015
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Standard Products Group
Market Landscape: Uniquely positioned across standard and high performance portfolios.
Standard High Performance Product Portfolio Product Portfolio
High performance analog and logic Capacity Expansion 5 Ultra high power k mkt share high efficiency Die Shrink 3 6 power discretes 4
Material cost 2 Advanced over reduction voltage, over 10 current & filtering
Cost Reductions and Capacity Expansion New product platforms and SAM expansion
Includes SPG + HDD
26 Analyst Day 2015
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Standard Products Group
Outgrowing the peers
2014 YOY revenue growth ONNN Standard Products
14%
Market Share
12% Standard Products DIOD Total Company RNECF
10% TOSBF VSH
8%
FCS
6%
Weighted Avg. Top Suppliers NXP Std. Products Only = 4.3% Growth 5.7%
4% Other 47.5% ONNN
2% 5.9%
0% STM
6.0%
-2% IFX
6.9%
TXN
-4% 7.7%
Source:, IHS Competitive Landscape Market Share, Databeans, Source: Company reports, ON Semiconductor estimates Web-Feet, Prismark & Paumanok, ON Semiconductor estimates
27 Analyst Day 2015
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Standard Products Group
Sustainable and expanding competitive advantage
Standard Products Comp Group
SPG NXPI FCS VSH AOSL DIOD
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Rev ($M) $1,210M $1,275M $1,146M $1,036M $327M $891M
GPM1% 36% 33% 33% 18.3% 19% 31%
EBIT1% 20% 17% 6% 1% 0% 10%
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Total ONNN Standard Products revenue = $1,314M |
Generating World Class EBIT1
90% in house manufacturing (mostly Asia) • Mix of high margin markets: automotive, protection, with world class cost structure. Volume > 42B IC, & Distribution significantly higher than corporate units average
Continue to aggressively add & utilize capital. • Focused R&D. Efficient platform execution. 22 major 29% incremental capacity added for current platforms last 2 yrs with 1.3x iteration rate. and future demand Automotive & Industrial portfolios share common
Source: Company reports, ON Semiconductor estimates platforms Data has been adjusted to account for factors such as stock based compensation
(1) : Non-GAAP measures. Refer to investor relations section of our website – www.onsemi.com for definitions and adjustments
28 Analyst Day 2015
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Standard Products Group
Growing in high margin markets
Automotive Industrial Power Wireless Conversion
30% of sales 14% of sales 20% of sales
$3B SPG SAM @ 9% CAGR1 $1B SPG SAM @ 23% CAGR2 $2B SPG SAM @ 10% CAGR3 Significantly above Corp GPM Significantly above Corp GPM Significantly above Corp GPM
>38% rev growth last 2 years Development relationships with >25% rev growth last 2 years at Huawei, Schneider, Emerson, current Top 4 Mfg Delta, Lenovo.
Investing across all divisions Investing in all power discrete Investing in protection, CSP, technologies (FETs, IGBTs, E2PROM, Low Power LDOs.
GaN, Gate Drivers, PIMs).
1. Strategy Analytics, ON Semiconductor estimates
2. iSupply (Power and AMFT reports), ON Semiconductor estimates 3. iSupply AMFT, ON Semiconductor estimates
29 Analyst Day 2015
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Standard Products Group
Automotive growth opportunities
Technology Trend SPG Solutions
80 Sensors per car today Precision Op Amps, Hi PSRR
Sensors going to 140 by 2020. LDOs, ESDLC
Up to 20 cameras per Hi PSRR LDO, Automotive
Imaging luxury car in 2020. ADAS. E2PROM, MV FET
Electric Motors Up to 120 per luxury car in 2020. FS IGBT, High Efficiency FETs, PIMs, PS, seats, mirrors, etc. Gate Drivers, Precision OA, eFuse
CAN, LIN, Flexray, USB,
Interface ESDLC, TVS, Short to Battery
HDMI, ENet
Lighting LED Lighting: Advanced Front LED Drivers, T6 MV FETs, Trench
Systems & Ambience. Schottky Rectifiers, LED Shunts
IEEE Sensor Journal 2013 Visions System Design Magazine Auto Research Jan 2009
30 Analyst Day 2015
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Standard Products Group
Industrial growth opportunities (High Performance Power Conversion)
Technology Trend SPG Solutions
HV/SJ FET, IGBTs, PIMs,
High End Power 5M servers today to over 10M by GaN, High Efficiency
2020. Google > 1M. MOSFETs, eFuse, HV LDO,
Supply/UPS (Cloud)
Hot Swap LDO
IGBTs, PIMs, Trench
Energy use by 2020
Alternative Energy Rectifiers, Gate Drivers,
WW: (21TKWH 30TKWH)
(clean, remote, cheap) High Efficiency MOSFET,
China: (4.6 TKWH 10 TKWH)
Precision Op Amps
Industrial Motors 300M Industrial Motors growing 10% IGBTs, PIMs, annually use 28% of the worlds electricity. High Efficiency MOSFETs, (automation & efficiency) Power efficient technologies could save the Precision Op Amps equivalent of 286 nuclear power plants
Data Center Knowledge 2014 CIA World Fact Book
Clean Technica 2011 Electric Motors Use 45% of Global Electricity, Europe Responding {+ Electric Motor Efficiency Infographic}
31 Analyst Day 2015
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Standard Products Group
Leading in high-voltage GaN
Partnership with Transphorm
Have released to production the only High Voltage (600V) GaN transistor in the market, sampling since 4Q14
Developing in house substrate capability Massive reduction in system size and cost Acceleration in customer interest in last 6 months
Actively working with server, auto, & industrial customers
32 Analyst Day 2015
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Standard Products Group
Wireless growth opportunities
Drivers Trend SPG Solutions
802.11ac ad (1Gbps 7Gbps) High PSRR LDO, ESDLC, Speed (accuracy) USB 3.0 3.1 (5Gbps 10Gbps) CMF, low cap analog switch
Gen 4 6: (2x battery current). UL & LP LDO, Trench Schottky
Power (efficiency) Screen size up 85% since ’11. Diodes, High Ipp TVS, µPkg FET’S
Charging time & method.
Precision & current sense Op Amps, Sensors (precision) 2007?2020: (11M?50B sensors). µPkg FETs 40% of US smartphone users Security (safe storage) are not protected. More personal E2PROM info to be stored. Wearables, travel weight. Battery GaN, CSP E2PROM, LDOs, FETs, Size increase driving space constraints for Mixed Element Arrays, 01005 other devices. Package
Wired Magazne April 2013 Smartphone Screen Sizes Keep On Growing
SBP Global 9/26/14 A trillion sensors is the equivalent of 150 sensors per human on earth Lifelock 10/22/2013 Lifelock 10/22/2013
33 Analyst Day 2015
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Standard Products Group
In Summary
A growing and highly profitable business
Industry leader in profitability
Solid design win pipeline in automotive, industrial and mobile end-markets
Strong visibility
34 Analyst Day 2015
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System Solutions Group
Mamoon Rashid Senior Vice President
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System Solutions Group
Positioned for growth and improved profitability
36 Analyst Day 2015
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System Solutions Group
Key Takeaways
Restructuring Complete
SSG is now at cost structure to be accretive at approximately $140m quarterly revenue Business transformed from Japan domestic market supplier to a competitive globally focused business
Focused on Growth
Focused on high growth end-markets— Automotive and Wireless Creating a Motor Control Solution powerhouse Expanding foot print outside Japan with 2/3 of revenue now from outside Japan
Profitability
OpEx down over 40% in vs. two years ago
Solutions focused portfolio delivers value to customers and margin to our investors Strong IP re-use allowing lean OpEx and faster time to market
37 Analyst Day 2015
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System Solutions Group
2014 Highlights – Profit growth and key market focus
Strong improvement in profits
SSG Non-GAAP EPS ($) Trend – 2014 gross margin1 20%, up 390 bps Y/Y
– 2014 operating margin1 up 990 bps Y/Y
Strong design win traction in smartphones
– Content per phone increased to $2.10 , compared to $1.00 in 2012
Accelerating penetration of motor drive solutions
– Industrial, automotive, appliances
(1) : Non-GAAP measures. Refer to investor relations section of our website – www.onsemi.com for definitions and adjustments
38 Analyst Day 2015
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System Solutions Group
Aggressive restructuring
2011-H1 2011-H2 2012-H1 2012- H2 2013-H1 2013-H2 2014-H1 2014-H2 2015-H1
Niigata Niigata Niigata Niigata Niigata Niigata Niigata Niigata Niigata
Wafer Fabs
Gifu Gifu Gifu
Gunma Gunma Gunma
Assembly/ SSL SSL SSL SSL SSL SSL SSL SSL SSL
Test
SSMP SSMP SSMP SSMP SSMP SSMP SSMP SSMP SSMP
KSS KSS KSS KSS KSS KSS KSS
SSV SSV SSV SSV SSV SSV
SSTH SSTH SSTH OSV OSV OSV OSV OSV OSV
SET SET
Operational $340M/qtr $230M/qtr $160M/qtr ~$140M/qtr
Breakeven
39 Analyst Day 2015
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System Solutions Group
Diversifying regional exposure
2012 Revenue Distribution 2014 Revenue Distribution
Americas 1% Americas 1%
Japan 41% Japan 34%
Europe 1%
Europe 1% Asia 57% Asia 64%
40 Analyst Day 2015
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System Solutions Group
Focused for profitable growth
End Market Growth Trends SSG Solutions
Growth in # of Motors
Automotive High efficiency ICs and IPMs
Weight reduction
Industrial / BLDC motors
Energy efficiency ICs and IPMs White Goods Developing economies
Longer battery life OIS/AF Mobile Picture Quality Larger screen sizes Battery control
41 Analyst Day 2015
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System Solutions Group
Strengthening presence in strategic end-markets
2014 Revenue by End Market
Networking 3%
Mobile
Automotive 21%
– Strong traction on OIS/AF—#1 position Consumer 37%
Industrial 14%
– LiB Battery protection—#1 Position
– Expanded into additional functions not Wireless 14% integrated into mobile chipsets Computer 11%
2012 Revenue by End Market
Motor Control
Networking 3%
– Center for motor control expertise
– Strong penetration in white goods Consumer 46% Automotive 21%
– Expanding into Automotive & Industrial
Industrial 8% Computer 14% Wireless 8%
42 Analyst Day 2015
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SSG : Comprehensive Motor Control Portfolio
Server Automotive White Goods Industrial
100 A Discrete EPS
50 A AC motor inverter Radiator Fan
30 A High Power IPM
20 A Blower Fan
2-in-1 IPM
Pump
15 A IPM
Fan
10 A
Compact Seat Fan IPM
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A |
Air Handling Servo / Stepper
| 3 |
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A |
Monolithic 12 V 40 V 600 V 1200 V
| 1 |
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A IC |
43 Analyst Day 2015
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System Solutions Group
Increased traction in automotive
SSG Automotive SAM ($B) SSG focus CAGR 15% vs. 5% for the overall 3.3 market
Significant fan and pump design wins 3.0 ramping in 2015
2.8 Programs with car makers to reduce size/weight of electronic motor controls
2.5
2014 2015 2016 #2 in the Igniter market with smallest size and best performanc
Source: ON Semiconductor estimates
44 Analyst Day 2015
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Automotive Design Wins
Broad based wins in autos
Radiator Fan Under Oil Pump
Hood Coolant Pump
Ignition Control
Wiper Motor Driver
BodyInfotainment DSP
Fuel Pump
Seat Fan
45 Analyst Day 2015
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Leveraging Motor Competencies in Autos
Our solution: 50% smaller size & weight
Windshield
Wiper
Electric Power
Steering Fuel Pump
Pump Unit HVAC Blower (Oil, Water
Van Sliding
Door Radiato
46 Analyst Day 2015
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System Solutions Group
Winning in white goods
SSG focus CAGR 19% vs 6% for the overall market
#2 in fan motor driver
#2 in White Goods IPM
Expand motor control solutions to cover 1-100A range
Horizontal expansion into industrial drives with IPMs
SSG White Goods SAM ($B)
3.0
2.8
2.6
2.4
2014 2015 2016
47 Analyst Day 2015
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White Goods Design Wins
Expanding presence with global OEMs
AC inverter IPM & IGBT
Air Conditioning Blower Fan
Control MCU
AC inverter IPM
Refrigerator Blower Fan
Damper motor
Ice dispenser
Washers Water Pump
Small Appliance Control MCU
48 Analyst Day 2015
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System Solutions Group
Continuing momentum in mobile
SSG focus CAGR 22% vs 5% for the overall market
SSG content per phone has increased to ~$2.10
#1 in LiB Battery Protection
#1 in OIS—engaged with all camera module makers
Expanded into additional functions not integrated into mobile chipsets
Strong penetration in China and OEMs focused on emerging markets
Source: ON Semiconductor estimates
SSG Mobile SAM ($M)
1,500
1,000
500
2014 2015 2016
49 Analyst Day 2015
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Mobile Design Wins
Touch Screen Interface
Display Backlight Power Supply
Bias Power Supply
Camera Auto Focus
Module Optical Image Stabilization
Battery Protection
Fuel Gauge
50 Analyst Day 2015
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Leveraging IP to drive revenue
Re-use of mixed signal & MCU capabilities providing competitive advantage
Portable & Automotive Audio
SSG IP Portfolio Breakout from ONNN Total
34%
Dual MCU Pen controller for 8 – 14” tablets
51 Analyst Day 2015
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System Solutions Group
In Summary
SSG is now a competitive globally focused business
Positioned for sustainable margin and earnings growth
Robust design pipeline in strategic markets
52 Analyst Day 2015
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Intermission
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Image Sensor Group
Taner Ozcelik Senior Vice President
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ON Semiconductor
Steep growth in Automotive and Industrial
55 Analyst Day 2015
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Image Sensor Group
Key Takeaways
On track to achieve non GAAP EPS accretion target for Aptina
– $0.08 in 2015, $0.10 in 2016
– Aptina integration process on track, set to complete by mid 2015
Investing in automotive and industrial to drive growth and expand margins
– #1 market share and expanding technology lead in automotive cameras
– Strong position in security and scanning
– Robust design win pipeline
Unmatched technology, customer relationships, and scale
– Uniquely positioned with leadership in broad range of imaging technologies
– Broadest range of customer relationships in automotive and industrial markets
– ON’s manufacturing scale & logistics networks provide significant competitive advantage in focus end-markets
56 Analyst Day 2015
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Image Sensor Group
A 40+ Year Legacy of Imaging Expertise
Image Group Sensor (ISG) 2015
2014/Aug 2000+ imaging patents Combined imaging Inventors of CMOS expertise 2014/Apr imaging Large sensor portfolio Technology innovators High-performance Strong focus on supply s Unit CCD/CIS portfolio Over 2 billion sensors chain 2011 shipped Four decades of ON Semi driven quality imaging expertise Broad applications served Strong CIS Global < VGA to 25 MP sensor excellence Shutter Portfolio Leaders in Industrial Imaging range Industrial Focus Sensors from VGA World-class development 2010 Leaders in tools
– 28 MP
Machine Vision inear, Light and 25+ years roximity Sensors experience in CIS
Custom solutions Sensors from and modules 1 MP – 16 MP Vertical market Larger optical expertise formats and pixels
57 Analyst Day 2015
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Image Sensor Group
Leadership in Key Technology and Systems
Image Processing & Systems
High Dynamic Range and High-Frame Rate leadership Industry Leading Development Tools
CFA, Optics & Packaging
Innovative pixel optics, Clarity+, OIS system integration High-performance package configurations
Pixels and Si Process
Leadership with small and large pixel CMOS, IT and Full Frame CCDs, Linear and TDI arrays, Global Shutter Advanced processes: BSI, stacked, 65/40nm, Rad-tolerant, wafer scale stitching Expertise in pixel performance at automotive temperature ranges (115°C+)
58 Analyst Day 2015
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Image Sensor Group
Key Growth Drivers
Automotive Industrial Consumer
2014-18 market IoT, security, automation Highly selective focus on
CAGR of 28% key drivers profitable opportunities
Safety, mandates, and Broadest portfolio in the Leverage differentiated
consumer acceptance key market technology to address
drivers niche applications
ONNN market leader with #1 in IP cameras and
~45% share, ~70% in scanning
ADAS
Significantly above Significantly above
corporate gross margin corporate gross margin
Source: TSR, IMS, ON Semiconductor estimates
59 Analyst Day 2015
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Image Sensor Group
Automotive Image Sensor Market
Automotive CMOS sensor market Auto CMOS sensor market share
1,200 Gentex Others Sony
Panasonic
1,000
Toshiba
800
Omnivision
millions 600 Melexis $ 400
200
0 ONNN
2014 2015 2016 2017 2018
2014-18 revenue CAGR of 28% #1 position with 46% market share
Source: TSR, IMS, ON Semiconductor estimates
60 Analyst Day 2015
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Image Sensor Group
Accelerating momentum in automotive image sensors
Auto image sensors Technology and market leadership
Revenue up 71%1 Y/Y in 2014
Strong technology leadership and software capabilities— pioneer in auto image sensors
200
Safety, Government mandates
160
Increasing use of image sensors in autos in addition to rear view camera millions 120 in 80 Autonomous/Intelligent vehicles $ Numbers of cameras in cars go up to 20 from 2—need for 40 automotive to be aware of their environment & context
0 Partnerships
2012 2013 2014 Deep partnerships with application processor providers in safety critical and viewing applications
| (1) |
|
Including Aptina and Truesense revenue for periods before close of acquisitions |
61 Analyst Day 2015
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Image Sensor Group
Potential for more than 20 image sensors in automotive
Rear Front
Front View Bac Forward Collision Su Warning Lane Departure Warning Auto High-beam Control Traffic Sign Recognition Pedestrian Detection Adaptive Cruise Control Night Vision
Side
Mirror Replacement In Car Surround View Passenger Monitoring Top View Drowsy Driver Blind Spot Detection Instrument Control DVR
Air Bag
62 Analyst Day 2015
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Image Sensor Group
Leading in automotive technologies
LFM (LED flicker mitigation) Technology LFM
– Leader in LFM technology LED flicker reduction
– Fast becoming the top priority issue for OEMs • Flicker problem for video driven by LED adoption viewing and Machine vision
Unique pixel level
Stacked Wafer Technology implementation
– Advanced algorithms – Improved pixel performance and integrations – Lower power Pixel
SOC and Algorithms • BSI for higher QE and lower cross talk
Metal
– Full image processing – LFM
Deep Photo diode for better
– Perspective correction – Interfaces & data transfer QE and NIR performance
Global Shutter SOC and Algorithms
– For In cabin ambient light reduction
– Best in class efficiency • ISP / SOC processing
Backup, Surround view, ADAS
Leading Fabrication Technology
– 200mm and 300mm – Advanced uLens
– Back Side Illumination and CFA
63 Analyst Day 2015
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Image Sensor Group
Strong position in industrial image sensors
Industrial Image
Sensors Security
Revenue up 17%(1) Y/Y in 2014 sition in • Broadest product • Proliferation of traffic monitoring portfolio security cameras #1 share in IP • Software • Increased need for 320 camera market capabilities surveillance
280
240 Internet of Things (IoT)
200
Adding vision and sensing to context aware millions 160 applications
in
$ 120
80 Industrial Automation
40
Industrial Automation Automated quality 0 assurance
Machine vision
2012 2013 2014
(1) Including Aptina and Truesense revenue for periods before close of acquisitions
64 Analyst Day 2015
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Image Sensor Group
Top to Bottom Portfolio in Industrial Imaging
High Performance CMOS/CCD
High Resolution
Global Shutter 1000
Machine High-End Medical and Other High • Large Pixels $ Vision Surveillance Scientific Performance • VITA/PYTHON/LUPA
Factory Aerial Digital Space families automation and Surveillance radiography Exploration TrueSense inspection Intelligent Traffic Dental Cinematography CCDs 100
Robotic vision Systems (ITS) Astronomy Custom Sensors #1 in High Speed Image
$
Biometrics Mapping Sensors
Mainstream CMOS 10
Aptina CMOS image $ sensors
Smaller pixels
Smaller optical size
Scanning Mainstream Internet of 1D Sensors Surveillance Things (IoT) • #1 in Barcode Scanners 1 $
Handheld Light & Proximity #2 in Mainstream Security Barcode Reading IP Camera Smart Home Sensors Modules IP
Fixed/POS #1 Security Camera
CCTV Lighting Currency
Barcode • DIY/Home • White Goods Verification Scanners
65 Analyst Day 2015
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Investing in IoT – a Vast Opportunity
A $400M Market by 2018
Surveillance
Fire Cloud
Lighting & Smoke
ON Semiconductor
Motion HVAC Sensors Controls
Top of the line product & technology offering Adding
Door
Lock sight and
Turnkey solutions Vacuum with wide portfolio cleaners sensing to and ecosystem intelligent strength devices…
Refrigerator Washing Machine
66 Analyst Day 2015
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Image Sensor Group
Imaging System & Software Solutions
Leading Imaging Development Software PDAF + OIS – “Hummingbird”
Control and UI Image
Misclib ? 13M CMOS Sensor Leadership
INI Position Feedback ? OIS Leadership
Color Pipe ON Semiconductor
Python Images Sensor Image Data
System Solution
Control (W/ PDAF) ? High sensitivity PDAF pixels
PDAF Data
Imaging Libraries
OIS Controller ? System optimized for:
OIS actuator / VCM
AF actuator / VCM • Fast AF lock
AP Algorithm
Video
DevWare Modular Kit Gyro
Still in presence of motion
IoT Reference Kit – “Matrix” Smart LED Lighting System
Actuator Module
Bending
Steering/ IVN light? 2M Sensor + WiFi module with HW package
Body ECU
Actuator
Module and SW Bending light
HL leveling HL leveling
Left Right? Best of breed BOM in perf/cost
linear linear step step motor motor
HL bending Driv. Driv. HL bending Left Right
step r o . Driv? Complete one-stop-shop
linear mot Driv . motor step linear
LIN? Ease of D-In – plug & play approach
ECU
micro
CAN
67 Analyst Day 2015
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Image Sensor Group
Profitability key driver in consumer market
Focus on driving profitability
Align resources and product portfolio to ensure margin expansion
Selectively participate in performance categories
Sports Camera, Highly differentiated high-end mobile devices
Differentiation through image quality and technology
PDAF, Clarity+, HDR, Pixel performance, Low noise, Low light sensitivity
68 Analyst Day 2015
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Image Sensor Group
Aptina Integration update
On track with non GAAP EPS accretion of 8c in 2015 & 10c in 2016
– Synergies and mix to drive profitability
Integration on track
– CFA production ramp in 2Q on target
– IT integration set to complete in 2Q
On track to meet back office and operational synergy plans
– Support functions and supply chain
69 Analyst Day 2015
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Image Sensor Group
In Summary
On track to achieve financial targets
Investing in automotive and industrial markets to drive growth and profitability
Market & technology leader in auto image sensors, the fastest growing image sensor market—2014-18 revenue CAGR of 28%
70 Analyst Day 2015
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Application Products Group
Bob Klosterboer Executive Vice President
|
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Application Products Group
Driving growth in Industrial, Automotive, and Smartphones
72 Analyst Day 2015
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Application Products Group
Key Takeaways
APG is targeting to grow at twice the market rate
– Strategic resources aligned to ensure success of critical projects in strategic growth markets
– Early engagement with strategic customers to drive steep product ramp
Strong margin expansion going forward
– Operating margin expansion driven by manufacturing efficiencies and highly differentiated products
– Development scale and IP re-use to improve new product efficiencies and margins
73 Analyst Day 2015
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Application Products Group
Overview and 2014 highlights
Applications Products Group
Mil/Aero & Industrial Power Solutions Power Conversion
Automotive Foundry & Timing Medical DC/DC AC/DC
ASICs Digital ASIC Audio /Audiology PC Power
Industrial ASIC DSP AC/DC Smart FETs RAD hard by Wireless design Industrial ASSP Surge protection Rapid Charging Voltage Reg. Trusted Foundry Networking Metering Charging Drivers Networking Integrated Zigbee Wireless Implantable DC/DC PFC
LED Lighting Passives ECL Memory Load Switches LED Lighting Drivers FPGA Conversions CMOS Clocks RF Tuning PMIC
APG Value Proposition: 2014 Highlights:
“We work with our customers to Revenue $ 1.1B develop world class products which —Y/Y growth of 7.4% vs. peers at 3.9% provide high quality, innovative 1
Gross Margin 44.4%, up 120bp Y/Y
solutions to power and signal
management challenges”. Operating Profit1 of $145m, up 11.3% Y/Y
| (1) |
|
: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
74 Analyst Day 2015
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Application Products Group
Growth opportunities in established markets
Automotive Industrial Wireless
37% of sales 28% of sales
10% of sales Significantly above corporate Significantly above corporate
Above corporate gross margin gross margin gross margin
~20% revenue growth 13% YoY revenue growth in last 2 years in 2014 > 60% revenue growth over the last 2 years Investing in LED Lighting, Investing in RF IOT
Smart FETs, Power Supplies Connectivity, Sensor Interface Investing in Wireless
& Communication & Digital Medicine Charging, PMICs, RF Tuning
& Rapid Charging
75 Analyst Day 2015
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Application Products Group
Automotive growth opportunities
Lighting—Advanced front, rear & interior lighting Automotive revenue ($M) with leading global tier-1s & OEMs
400
Body & Powertrain: SmartFETs, motor actuation, smart junction boxes
350
Vehicle electrification: Transition from LDOs to high efficiency SMPS
300 Networking: LIN/CAN IVN, and Ethernet to address 2012 2013 2014 high bandwidth ADAS need
76 Analyst Day 2015
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Automotive
Expanding content and capabilities
Active Safety Instrument Clusters
ASIC LED Backlight Current Sense LDO Power Supplies
Smart FETs
ADAS Basis Chips
Power Supplies
System Basis Chips
Motor Control Lighting
Smart FETs
Full LED AFS Ultrasonic Sensor I/F
LIN RGB
Image Sensor support
SMPS
SBC Motor Control Backlighting
Electrification Smart FETs HS
Inductive Senor I/F IP Pixel Lighting
Start-Stop – ASIC/ASSP
Power Supplies In-Vehicle Networking
System Basis Chips Powertrain
Current Sense LDOs System Basis Chips (SBC)
Pressure Sensor I/F IP
Battery Monitoring FlexRay
Multi-Spark IGBT
Ethernet
Transmission Control CAN Partial Network Nock Sensor Interface LIN relay
77 Analyst Day 2015
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OEM Cooperation
For Lighting
OEM
Tier-1 Tier-1
IC
Network approach (vs. sequential) Each party contributes with own core competency and system know-how Parallel processes ? short TTM
Early witnessing or co-defining emerging leading edge technologies Optimal system solution
78 Analyst Day 2015
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Application Products Group
Gaining momentum in industrial
Industrial Revenue ($M) Ultra low power ZigBee wireless solutions for home automation, smart energy and smart lighting
350
Intelligent, networked sensor and LED lighting 300 solutions for smart building controls
250 Patient diagnostics and drug delivery for connected mobile healthcare
200
Industria Io
79 Analyst Day 2015
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Market Macro Trend Industrial IoT
Trend: The internet of “things” will grow agressively during 2015 – 2020
Product Positioning
Develop low power, standards based, wired and Develop system in package solutions that enable wireless network solutions that can be marketed wearable and unobtrusive form factors directly as well as incorporated into system solutions • 2,5D and 3D Packaging solutions
Ultra Low Power 2.4Mhz ZigBee SOC (Orion) Thru silcon Vias
Narrow band Sub 1Ghz and BLE products under development
Develop energy harvesting, wireless charging, fast Develop IP portfolio that will cross multiple end use charging and ultra low power conversion devices markets to enable rapid changes in “hot” markets
A4WP Wireless charging platform
NCP4370 in development to support both the Qualcomm Quick Charge 2.0 and Rapid Charge Standards
80 Analyst Day 2015
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Application Products Group
Medical – Digital Medicine for Connected People
Medical Revenue ($M)
140
120
100 Ezairo 7100
Quad-core Hearing Aid SoC
80 Qualified Discretes
ASICs &
Medical Imaging Foundry
Medical ASSP
3D SiP
81 Analyst Day 2015
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Application Products Group
Communications growth opportunities
Wireless Revenue ($M) A4WP wireless charging Rx/Tx power solutions
120
80
DC-DC PMICs for the AP/graphics processors, baseband chipsets and camera modules
40
0
Scalable RF tuning solutions for multimode, multiband 4G LTE-A smartphones
82 Analyst Day 2015
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Wireless Charging
First mover in an accelerating market
SAM for loosely coupled wireless charging ($M)
800 600 400 200 0
Source: ON Semiconductor estimates
83 Analyst Day 2015
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Wireless Charging
Ecosystem in place to drive steep adoption
Compelling consumer advantage
- Ubiquitous charging :charging of multiple devices on a single universal charging station
- Convenience of built-in solution vs. aftermarket accessories
- Pricing: A4WP brings down pricing to drive adoption by Drivers mainstream consumers
in place for Market leaders introducing flagship product
rapid adoption—Qualcomm’s Flagship Snapdragon 810 chipset designed to enable
A4WP wireless charging
- Leading OEMs working on devices with A4WP enabled wireless charging capabilities
- ON broadly engaged with multiple chipset providers and OEMs
Critical mass of key stakeholders in place for A4
- Carriers, OEMs, Chipset vendors and component providers
84 Analyst Day 2015
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Wireless Charging Solutions
Dynamic RF Tuning
Control Control
4V-20V
Front-end RF Full Single Chip PA Divider & 4V-15V
Tuning Bridge
Monitor
Power Dual Input SCY1751 Management Switching
SCY6992 Battery Smart
4V-28V 100V Surge 4V-15V Battery
Charger
OVP with ICs
100 V
Reverse
Surge
A4WP Transmitter High-end platforms block diagram
NFC
PTIC
Controller Coil ONNN well positioned with market leaders to provide solutions for a 13.56/6.78MH broad range of major functions
z
Wireless Charging
Advanced RF capability
85 Analyst Day 2015
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Transforming Charging Solutions
Enabling Smaller Sized Adapters Smarter Chargers
Shrink 12 W Size to
Existing 5 W Size 20 V
12 V
Increase Power in
9 V
Existing 5 W to 12 W
| 5 |
|
V |
WLLC Digital PFC Sync Rec GaN Switches
86 Analyst Day 2015
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Computing Content Returns – ON is well positioned
(~ 392%)
(-17%)
Content (70%)
Desktop (-14%) (-15%) (-10%)
(~ -45%) (~ -10%)
Notebook
Sandybridge Ivybridge Haswell Broadwell Sky Lake Cannon Lake
87 Analyst Day 2015
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Application Products Group
In Summary
APG is positioned to outgrow the market
Key wins at market leaders are helping define next generation products
Targeting significant margin expansion
88 Analyst Day 2015
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Business Units Questions & Answers
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ON Semiconductor
Bernard Gutmann CFO and EVP
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ON Semiconductor
Driving operating leverage and shareholder returns
91 Analyst Day 2015
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ON Semiconductor
Key Takeaways
Margin expansion
– Mix & operating leverage to drive significant margin expansion
Acceleration Leverage past investments
– Investments in place to drive margin in EPS growth expansion, growth
Robust cash flow
– Expect $400m annual Free Cash Flow1 in near to mid term
Efficient deployment of capital
– Sizable part of free cash flow to be returned to shareholders
(1): Free Cash Flow (FCF) is defined as operating cash flow less capital expenditures
92 Analyst Day 2015
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ON Semiconductor
2014 Highlights
Operating margin1 up by 210 bps Y/Y to 12.2% Gross margin1 up by 180 bps Y/Y to 35.3%
EPS1 growth of 42% Y/Y to $0.75
Stabilized System Solutions Group
Announced capital return policy & $1B share repurchase
Acquired Truesense & Aptina to boost imaging portfolio
| (1) |
|
: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
93 Analyst Day 2015
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ON Semiconductor
Agenda
Target Financial Model
Path to achieving the target model Free Cash Flow model Capital allocation policy
94 Analyst Day 2015
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ON Semiconductor
2017 Target Model
Revenue—$4 Billion
Gross Margin1 40%
Operating expenses1 21-23% Operating Margin1 17-19% EPS1 $1.40-$1.60
Free cash flow – 13-16% of revenue
Cash return to shareholders – 80% of FCF2
| (1) |
|
: Non-GAAP measures |
| (2) |
|
: 80% of free cash flow after debt servicing will likely be returned to shareholders |
95 Analyst Day 2015
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ON Semiconductor
Path to 2017 target model—Revenue
Annual revenue
| 1 |
|
Automotive CAGR 7% |
growth of 5%
4.5
Communications CAGR 7.5%
B) 4.0
( $
3.5
Revenue Industrial CAGR 5%
3.0
2.5 Computing CAGR 3%
2.0
Consumer GAGR 2%
| (1) |
|
: Organic growth from 4Q14 annualized revenue base |
96 Analyst Day 2015
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ON Semiconductor
Steady gross margin improvement
Key Gross Margin Drivers Non-GAAP Gross Margin1 Trend
38% Improving mix of industrial, automotive and smartphones
36%
34%
Higher operating leverage
32%
30% Stabilization of SSG
| (1) |
|
: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
97 Analyst Day 2015
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ON Semiconductor
Bridge to target gross margin1
M 160 bp
smartphones
40%
Utilization 250 bp
35%
Manufacturing efficiencies 120 bp
Better capital efficiency
30%
Synergies 60 bp
(1) : Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments (2) ASP decline offset by operational improvements
98 Analyst Day 2015
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ON Semiconductor
Change in mix 2014 to 2017
2014 2017
Computing Computing 11%
13% Auto Auto 31% 33% Consumer Consumer 14% 16%
Comm Comm 19% Industrial
18% Industrial 22% 23%
99 Analyst Day 2015
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ON Semiconductor
Strong execution driving operating margin1 expansion
Key Operating Margin Drivers
Non-GAAP Operating Margin1
Trend Fall-through from gross margin
14%
12%
Leverage from operating expenses
10%
8%
6% Stabilization of SSG
4%
Targeted R&D spending
| (1) |
|
: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
100 Analyst Day 2015
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ON Semiconductor
Operating Margin – Opex.1 discipline, fall-through to drive expansion
Sizeable part of incremental gross profit to transition to operating income
740 25% 720 700 24% revenue million 680 $ of Revenue growth to outpace in % 660 operating expense growth as 23% Opex 640 Opex 620 600 22% 2012 2013 2014
Acquisition synergies to help mitigate Inflationary increases in opex.
| (1) |
|
: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
101 Analyst Day 2015
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ON Semiconductor
Historic EPS trend
Key EPS Drivers
Historic EPS1 Trend
$0.25
Improved operating results
$0.20
$0.15
$0.10 Flat cash taxes
$0.05
$-
Low interest and other expenses
| (1) |
|
: Non-GAAP measures. Refer to investor section of our website – www.onsemi.com for definitions and adjustments |
102 Analyst Day 2015
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ON Semiconductor
On track to generate $400m in annual free cash flow
Key Cash Flow Contributors
300 10%
Improved operating results
250
8%
200 million 6% $ 150
in Margin Disciplined capital spending
4% FCF FCF 100 2% 50
0 0% Stabilization of SSG
2012 2013 2014
103 Analyst Day 2015
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ON Semiconductor
Cash flow drivers for the target model
Operating Cash flow—20-22% of revenue Net cash interest—~$26-$30m Cash taxes—~8-10% of pretax income
Depreciation and amortization—6-7% of revenue Capex—6-7% of revenue FCF—13-16% of revenue
104 Analyst Day 2015
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ON Semiconductor
Capital expenditure and manufacturing strategy
No step function rise likely in capital expenditure
Capacity expansion will be inline with forecasted demand Will continue to invest in our integrated manufacturing model Expand capacity through innovative partnerships, e.g. Fujitsu Industry leading cost structure
105 Analyst Day 2015
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ON Semiconductor
Capital deployment
80% of FCF1 cash return to shareholders
Acquisition focus on expanding technology portfolio
Scale not a strategic priority – Industry leading cost structure
Sufficient access to domestic cash
(1) : 80% of free cash flow remaining after debt servicing will likely be returned to the shareholders subject to required approvals
106 Analyst Day 2015
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Group Questions & Answers
107 Analyst Day 2015
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ON Semiconductor
Financial Analyst Day 2015
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ON Semiconductor
Additional Information
For additional information visit the ON Semiconductor corporate website www.onsemi.com or for official filings visit The SEC website www.sec.gov
109 Analyst Day 2015