Post on 12-Aug-2020
TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the
Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore and Symphony are
trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. Airfast, BeeKit, BeeStack,
ColdFire+, CoreNet, Flexis, Kinetis, MagniV, MXC, Platform in a Package, Processor Expert, QorIQ
Qonverge, Qorivva, QUICC Engine, Ready Play, SMARTMOS, TurboLink, VortiQa and Xtrinsic are
trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of
their respective owners. © 2012 Freescale Semiconductor, Inc.
2TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
This Presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, revenues, earnings, cash flows, capital expenditures, working capital and other financial items. These statements also relate to our business strategy, goals and expectations concerning our market position, future operations, margins, profitability, liquidity and capital resources. We have used the words "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "predict", "project", "will" and similar terms and phrases to identify forward-looking statements in this Presentation.
Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Our operations involve risks and uncertainties, many of which are outside our control, and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct.
Actual results and trends in the future may differ materially from those suggested or implied by the forward-looking statements depending on a variety of factors which are described in greater detail in our most recent Annual Report on Form 10-K/A and other filings with the Securities Exchange Commission. All future written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this Presentation.
3TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
• A Worldwide Leader of Embedded Processing Solutions
• Legacy of Innovation
• Well-Positioned in High Growth Markets
• Long-term Customer Relationships
• Efficient Manufacturing Strategy
• Well positioned to drive earnings growth through margin expansion and deleveraging balance sheet
4TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
>50 Year Legacy
>5,500 Engineers
>6,100 Patent Families
A Global Leader in
Microcontrollers
Digital Networking
Automotive MCU
Analog
RF
Five Core Product Groups
Four Primary Markets
Automotive
Networking
Industrial
Consumer
5TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Grow revenue to gain share
Increase margin to improve profitability
RealigningBusinesses
ReallocatingR&D
RedistributingSales
SingleManufacturing
Operations Entity
6TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
David ReedManufacturing Operations
Gregg LowePresident & CEO
Alan CampbellFinance and
Information Technology
Jonathan Greenberg
Legal
Jeff ElsonHuman Resources
and Security
James BatesAnalog & Sensors
Bob ConradAutomotive MCU
Tom DeitrichDigital Networking
Geoff LeesMicrocontrollers
Ritu FavreRF
Staff Product Groups Operations
TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the
Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore and Symphony are
trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. Airfast, BeeKit, BeeStack,
ColdFire+, CoreNet, Flexis, Kinetis, MagniV, MXC, Platform in a Package, Processor Expert, QorIQ
Qonverge, Qorivva, QUICC Engine, Ready Play, SMARTMOS, TurboLink, VortiQa and Xtrinsic are
trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of
their respective owners. © 2012 Freescale Semiconductor, Inc.
8TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Revenue $ Millions
$840 $824$893
$951$1,020
$1,108 $1,148 $1,182 $1,194 $1,223$1,142
$1,013$950
$1,029 $1,009$957 $981
2009 2010 2011 2012 1Q13
9TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
*Adjusted for purchase accounting and other items applicable to quarters prior to 2012. See GAAP reconciliations at www.freescale.com/investor .
28%
31%
36%38% 39%
41% 42% 43%45% 46% 46%
44%42% 43% 42%
39%41%
As % of Revenue
2009 2010 2011 2012 1Q13
10TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Net Debt
($ in millions)
Maturity Profile*
$8,816
$6,575$5,649
$0
$2,000
$4,000
$6,000
$8,000
$10,000
4Q06 1Q11 1Q13
• Reduced net debt by $3.2 billion since LBO
• Extended maturity profile in connection with Q1 2013 refinancing transaction
• Committed to continued deleveraging
($ in millions)
$614
$3,603
2013 2014 2015 2016 2017 2018 2019 2020
$155
$2,043
* Term loan due 2016 requires quarterly principal payments in aggregate annual amounts of $3.5 million.Term loan due 2020 requires quarterly principal payments in aggregate annual amounts of $24 million.
TM
12TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
(in millions) Q1 2012 Q1 2013
Net sales 950 981
Cost of sales 548 583
Gross margin 402 398
Selling, general and administrative 102 111
Research and development 181 182
Amortization expense for acquired intangible assets 3 3
Reorganization of business and other (52) (2)
Operating earnings 168 104
Loss on extinguishment or modification of long-term debt, net (28) (22)
Other expense, net (135) (120)
Earnings (loss) before income taxes 5 (38)
Income tax expense 14 10
Net loss (9) (48)
Freescale Semiconductor, Ltd. Condensed Consolidated Statements of Operations (Unaudited)
13TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Freescale Semiconductor, Ltd. Reconciliation of Non-GAAP Measures (Unaudited) *
(in millions) Q1 2012 Q1 2013
Adjusted operating earnings* 128 117Amortization expense for acquired intangible assets 3 3Non-cash share-based compensation expense 9 12Reorganization of business and other (52) (2)
Operating earnings 168 104
Adjusted net loss* (9) (8)Amortization expense for acquired intangible assets 3 3Non-cash share-based compensation expense 9 12Fair value adjustment on interest rate and commodity derivatives 2 (1)Deferred and non-current tax impact 10 6Loss on extinguishment or modification of long-term debt, net 28 22Reorganization of business and other (52) (2)
Net loss (9) (48)
* Reconciliations to GAAP results are also available at www.freescale.com/investor .
14TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Freescale Semiconductor, Ltd. Reconciliation of Non-GAAP Measures (Unaudited) *
(in millions) Q1 2012 Q1 2013
EBITDA excluding the effects of other items* 192 178
Non-cash share-based compensation expense 9 12
Fair value adjustment on interest rate and commodity derivatives
2 (1)
Loss on extinguishment or modification of long-term debt, net
28 22
Reorganization of business and other (52) (2)
EBITDA 205 147
Depreciation 47 45
Amortization 20 19
Interest expense, net 133 121
Income tax expense 14 10
Net loss (9) (48)
* Reconciliations to GAAP results are also available at www.freescale.com/investor .
15TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
EBITDA*
($5)
$46
$126
$175 $200
$236 $261
$287 $294 $298 $277
$224 $192 $202 $198
$152 $178
Earnings Before Interest, Taxes, Depreciation & Amortization
$ Millions
*Adjusted for non-cash share-based compensation expense, purchase accounting and other items. See GAAP reconciliations at www.freescale.com/investor.
2009 2010 2011 2012 1Q13
16TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Adjusted Operating Earnings* $ Millions
($124)
($67)
$19
$66
$101
$143 $166
$184 $208
$222 $206
$152 $128
$146 $139
$91 $117
2009 2010 2011 2012
*Adjusted for non-cash share-based compensation expense, purchase accounting and other items. See GAAP reconciliations at www.freescale.com/investor.
1Q13
17TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Americas Japan
EMEA Asia
18TM
Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, the Energy Efficient Solutions logo, mobileGT, PowerQUICC, QorIQ, StarCore
and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a
Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMARTMOS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc.
All other product or service names are the property of their respective owners. © 2012 Freescale Semiconductor, Inc.
Enterprise Service Provider General Embedded
QorIQ
RF / Airfast
i.MX