Broadcom Corporation 2013 Analyst Day -...

2 © 2013 Broadcom Corporation. All rights reserved.

This presentation may contain forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include the potential growth of the markets in which we compete, and the development status and planned availability of new products, and guidance provided on future revenue, product gross margins and certain operating expenses. In fact, all statements that we make or incorporate by reference in the presentation, other than statements or characterizations of historical fact, are forward-looking statements. It should be clearly understood that these forward-looking statements, and our assumptions about the factors that influence them, are based on the limited information available to us at this date. Such information is subject to change, and we may not inform you when changes occur. We undertake no obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.

Forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those described in the statements you hear today as a result of various factors. We refer you to our Form 10-K for the year ended December 31, 2012, subsequent and forthcoming 10-Qs and other filings with the SEC, which discuss some of the important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition.

For additional financial and statistical information, including the information disclosed in accordance with SEC Regulation G, please see the Investors section of our website.

2

CAUTIONARY STATEMENT

Broadcom®, the pulse logo, Connecting everything®, the Connecting everything logo, the 5G WiFi logo, XLP®, NetXtreme II®, StrataXGS® and WICED™ are

among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Any other trademarks or trade names

mentioned are the property of their respective owners.

3 © 2013 Broadcom Corporation. All rights reserved. © 2013 Broadcom Corporation. All rights reserved.

AGENDA

8:30 am Introduction

8:35 am Scott A. McGregor

9:00 am Henry Samueli

9:25 am Robert A. Rango

10:00 am Q&A

10:25 am Daniel A. Marotta

10:50 am Rajiv Ramaswami

11:15 am Q&A

11:35 am Eric K. Brandt

12:00 pm Q&A and Closing Remarks

A STRONG CORE AND MULTIPLE PATHS TO SUCCESS

Scott A. McGregor

President and Chief Executive Officer

© 2013 Broadcom Corporation. All rights reserved.

AGENDA

World-class Broadband and Infrastructure Businesses

Applying Formula for Success to Mobile and Wireless

Managing Tightly Through Investment Cycle


WORLD-CLASS BROADBAND AND INFRASTRUCTURE BUSINESSES


Leading Market

Position

Multiple Growth Drivers

6

Complete Platforms with Best-in-Class Technology

Solid Economics


0 1 0 0 0 1 0 1 0 0 1 0 1 0 1 0 1 0 0 1 1 0 1 0011101010110111010

CLEAR LEADERSHIP IN BROADBAND

Strong End-to-End Solutions

Leading Across All Set-top Box and Last Mile Technologies

Consumer Premise

Central Office

CMTS

DSLAM

OLT

DOCSIS® 3.0 Gateway

ADSL2+

VDSL2

G/EPON

IP-STB

Media Server

OTT

MoCA® HD DVR

DTA

ODU

Small Cell


99.98% of All Data Traffic Crosses a Broadcom Chip

CLEAR LEADERSHIP IN INFRASTRUCTURE

Coax

Microwave Backhaul

Fiber Optic

Wireless Infrastructure

Service Provider Network

Macro Base Station

Data Center Corporate Enterprise

Enterprise Wi-Fi

Access

Campus Ethernet

Ethernet

Home

Source: Broadcom internal estimate

Fiber

Strong End-to-End Solutions

Leading in Switch, PHY, Knowledge-based Processors


LEADING CUSTOMERS IN BROADBAND AND INFRASTRUCTURE


DIFFERENTIATION THROUGH COMPLETE PLATFORMS

Residential Gateway

Security

USB

GPU GPU

HDMI

Power Management

Wi-Fi

Transcoding Switch

PHY

Security

Traffic Manager

Optical

Fabric Bluetooth®

FCoE

PLC Packet Processor 1010

0110

EP 1 2

3 4

DPI

Energy Efficient Ethernet

KBP

Tuner 01010

MoCA

Software

Software


DIFFERENTIATION THROUGH TECHNOLOGY LEADERSHIP

Trident II: World’s Best Data Center Switch

4B+ Transistors 1.8B+ Transistors

1.28 Tb/s

32 X 40G

Packet Processing

388 Mb Memory

Unmatched by Any Competitor

BCM7445: World’s Best Gateway

Ultra HD and HEVC

Dual VLIW DSP

Quad-core 1.5 GHz ARM Processor


$0

$500

$1,000

$1,500

$2,000

$2,500

2011 2012 2013E

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

2011 2012 2013E

DELIVERING GROWTH AND LEVERAGE

Broadband and Infrastructure Reportable Segment Revenue

(In Millions)

Broadband and Infrastructure Reportable Segment Operating Income

(In Millions)

Note: Broadband and Infrastructure Reportable Segment Revenue and Reportable Segment Operating Income represents the aggregate revenue and operating income of those two reportable segments. Certain licensing revenue that we do not allocate to our reportable segments is excluded from reportable segment revenue but is included in our “All Other” category. Additionally, certain operating expenses that we do not allocate to our reportable segments are excluded from these metrics but are included in our “All Other” category. For a more detailed discussion of our reportable segments and “All Other” category, please see our Quarterly and Annual Reports filed with the SEC, as well as the appendix herein. 2013 data includes updated Q4’13 guidance released on Dec. 10, 2013.


MULTIPLE FUTURE GROWTH DRIVERS FOR BROADBAND AND INFRASTRUCTURE

Ultra HD

HEVC

G.fast

DOCSIS 3.1

Small Cell

Regional Expansion

PON

Data Centers

Service Providers

Multi-core Processors


Automotive


APPLYING FORMULA FOR SUCCESS TO WIRELESS


Clear Milestones to LTE Success

Technology Leadership &

Complete Platforms

Continued Secular

Connectivity Growth


TECHNOLOGY LEADERSHIP ACROSS PLATFORM

Multimedia

Wi-Fi

Modem

GPS CPU CPU

PMU

RF

Complete LTE Platform Available Now

NFC Bluetooth

Mobile Device

Connectivity

Wi-Fi, BT, GPS, NFC

Multimedia and Application Processor

RF and Power Management

Cellular Modem

Cat-4/6 modem IP

Power and space efficient architecture

Carrier aggregation

Envelope tracking

eMBMS

VoLTE

Broadcom World-class IP


COMPLETE PLATFORM LEADERSHIP CREATES VALUE

Connectivity ASP

BT/Wi-Fi/ GPS/NFC

$3 – $6

Platform ASP

Cellular SoC/ PMU/RF BT/Wi-Fi/ GPS/NFC

$10 – $30

Source: Broadcom internal estimates


CLEAR MILESTONES TO LTE SUCCESS

2014 Milestones

Renesas Transaction Closed on October 1, 2013

CAT-4 LTE Modem Globally Certified

Multiple Customer Engagements Underway

2013 Milestones

Dual-core LTE SoC Revenue in Early 2014

Sample Quad-core LTE SoC in Mid 2014

Sample Leadership LTE-A Thin Modem in Q3 2014

Tapeout Next-generation SoCs

Strong Design Traction and Multiple Customer Launches

Meaningful LTE Revenue

Early Q1 2014

1H 2014

Mid 2014


Performance Power

Consumption Footprint

Innovation and Features

CONNECTIVITY TECHNOLOGY LEADERSHIP

Up to 2x Faster Throughput

vs. Competition

Up to 35% Lower Power Consumption

vs. Competition

Up to 35% Smaller Die Size

vs. Competition

First to Market with New Features

and Standards


Connectivity Pull Through

Complete Platform for Mid-tier and Low-cost Smartphones

CONNECTIVITY SMARTPHONE STRATEGY

Broadcom Leads in Connectivity for Wireless Devices

First to Market with New Features and Standards

Leading Performance

Low Power Consumption

Small Board Footprint

Technology Leadership for Hero and Mid-tier Smartphones


SIGNIFICANT OPPORTUNITY OUTSIDE OF MOBILE

~30 Billion 2

1: 5.6B global smartphone subscriptions expected by 2019, as reported in the Ericsson Mobility Report, “On the Pulse of the Networked Society,” June 2013 2: 29.8B wirelessly connected devices expected by 2019, as reported by ABI Research, June 2013

5.6 Billion 1

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CONNECTIVITY POWERS THE INTERNET OF THINGS

Microcontroller

Lower Power

Lower Cost

Smaller Footprint

Unique Capabilities

Our Core Strengths

Connectivity


MANAGING TIGHTLY THROUGH INVESTMENT CYCLE


Operating Expenses

Gross Margin

Return of Capital

Stock-based Compensation


MANAGING TIGHTLY THROUGH INVESTMENT CYCLE

Non-GAAP R&D and SG&A Expense Trend in 2014

Stable/down after Q1’14

Non-GAAP Product Gross Margin Expansion

>250 bps Q1’11 to Q3’13

Estimated Return of US Cash Flow

>100% since 2007 >100% in 2013

Stock-based Compensation per Employee

Down ~50% since 2007 Down ~10% in 2013


CONCLUSIONS

Broadband and Infrastructure Businesses Vibrant and Growing

Cellular Success Drives Economic Value

Managing Tightly Through Investment Cycle

TECHNOLOGY LEADERSHIP IN AN EVOLVING INDUSTRY

Henry Samueli

Co-Founder, Chairman of the Board and Chief Technical Officer Broadcom Corporation


AGENDA

Semiconductor Industry Dynamics

Broadcom Advantages

27 © 2013 Broadcom Corporation. All rights reserved. 27 © 2013 Broadcom Corporation. All rights reserved.

SEMICONDUCTOR INDUSTRY DYNAMICS

Rising Manufacturing

Costs

$

Increasing Design Costs

$

Slowing of Moore’s Law


450mm Wafers

EUV

Immersion Litho + Strained Si

High-K Metal Gate (HKMG)

Double Patterning

3D-FinFETs

7nm 5nm? 40nm 10nm 28nm 20nm 16/14nm

ACCELERATING COMPLEXITY OF NEW PROCESS NODES

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 202X

Planar Transistor

High-k Dielectric

Oxide

Source

Drain

Silicon Substrate

Gate

Lens

Water Wafer

Is the End of Moore’s Law on the Horizon?


0

1

2

3

4

5

6

7

90 65 40 28 20 16/14

28nm May Become the Optimal Cost Node

HISTORICAL FIRST: COST PER TRANSISTOR IS RISING

Source: Handel Jones - IBS, “Feature dimension reduction slowdown”, 3/20/2012

EE Times: http://www.eetimes.com/discussion/other/4238315/Feature-dimension-reduction-slowdown

Co

st

Per

Mil

lio

n G

ate

s (

Ce

nts

)

Technology Node (nm)


DESIGN COSTS INCREASING DRAMATICALLY

Software

Prototype

Validation

Physical

Verification

Architecture

IP Qualification

Source: IBS, Factors for Success in System IC Business and Impact to Business Model

$350

$300

$250

$200

$150

$100

$50

$0 65nm 40nm 28nm 20nm 16/14nm

Process Node

4X

Design Cost (In Millions)


IMPLICATIONS

Scale Enables the IP Breadth that is Essential for Complete Platform Solutions

Process Node Selection and Platform Integration Strategy Will Change as Moore’s Law Slows

Cost Reductions Will Result from Better Design Engineering Rather than Better Process Engineering


BROADCOM ADVANTAGES


Portfolio Breadth

Design Engineering Efficiency

Platform Solutions


BROADCOM’S UNMATCHED IP PORTFOLIO BREADTH

Broadband Communications Group Mobile & Wireless Group

3G Baseband Processors

LTE Baseband Processors

Cellular RF

Mobile Video Processors

Mobile Graphics Processors

Application Processors

Image Signal Processing

802.11 Wi-Fi

GPS/GNSS

Bluetooth NFC Power

Management

Touch Controllers

Wireless Power

IoT/Wearable SoCs

Wireless Video

Location Based Services

MIMO

Cable STB Satellite STB IP STB

Terrestrial STB

DOCSIS

Cable Modem Cable Head-end

Processors

ADSL/VDSL (CO/CPE)

EPON/GPON (OLT/ONU)

MoCA Home Networking

Powerline Networking

Ultra HD/HEVC Processors

STB Graphics Processors

Digital Transport Adaptors

Video Transcoders

STB Security Processors

Small Cell Gateways

Satellite Outdoor Unit

Media Terminal Adapters

Video Over Wi-Fi

VoIP Full-Band Capture

Front-ends

Security Protocols

Enterprise Wi-Fi

Antennas

Central Engineering Core Technologies (Custom Cell Libraries, Custom Memories, Analog and RF Building Blocks, I/O Cells)

Data Center/ Enterprise Switching

Service Provider

Switching

Software Defined

Networking

Network Virtualization

Ethernet Copper PHYs

Ethernet Optical PHYs

Automotive PHYs

Optical Transport

Ethernet Controllers

Fiber Channel Over Ethernet


Knowledge-based Processors

SMB Processors

Backplane SERDES

Power Over Ethernet

Energy Efficient Ethernet

Time Sensitive Networking

Microwave Backhaul

Baseband/RF

Encryption Coprocessors

Deep Packet Inspection

Security Processors

Infrastructure & Networking Group


COMPLETE PLATFORM IN NETWORKING

BCM56640 Ethernet Switch

NL56647 Knowledge-based

Processor

BCM88650 Traffic Manager

Packet Processor

BCM56640 Ethernet Switch

NL56647 Knowledge-based

Processor

XLP308 Multi-core Processor

Core Network Switch


World-class AP and Multimedia

LTE Reference Platform

ACCELERATING PLATFORM SOLUTIONS IN MOBILE

World-class Connectivity IP Cellular

SoC

Power Management

Cellular RF

Wi-Fi

BT

GPS

NFC

World-class RF and Power Management

World-class Cellular Modem IP

All Pieces Now in Place for Complete LTE Platform


PLATFORM SOLUTIONS IN BROADBAND

QAM Receiver SoC

(BCM3128) On-chip Tuners

GbE Switch

(BCM53125) 7-port Ethernet Switch

STB SoC

(BCM7445) Ultra HD, HEVC Support

Quad-core CPU

Conditional Access

3D Graphics

Transcoding

MoCA Home Networking

Dual-band Wi-Fi

(BCM4360) 2.4 GHz 3x3 for Data

5 GHz 3x3 for Video

Bluetooth

(BCM20702) Remote Control

Cable Modem SoC

(BCM3384) DOCSIS 3.0

On-chip Tuners

24 Downstream Channels

8 Upstream Channels

Ultra HD Set-top Box Gateway


WORLD-CLASS DESIGN EFFICIENCY

MWG

3D Graphics – Cambridge

BCG - Team D

Video Processing – San Jose and San Diego

Transport – Singapore

Video Encoder – San Jose

Video Decoder – Andover

DDR Controller – Andover

SATA3 – San Jose

Central Engineering

PLL/Oscillators – Irvine

SerDes – Irvine

Video/Audio DACs – Irvine

Memory – Tempe

USB – Singapore

ING

Gigabit Ethernet – Irvine

BCG - Team B

Memory Control – Bangalore

Audio DSP – Bangalore

Video Encoder – Bangalore

Audio I/O – Bangalore

BCG - Team C

RF Modulator – Irvine

BCG - Team A

MoCA – Israel

Quad-core CPU – San Jose

PCIe – Vancouver

HDMI – Irvine

28nm, 1.8 Billion Transistors

BCM7445 Ultra HD STB SoC


IP SHARING ENHANCES DESIGN EFFICIENCY

BCG

ING

MWG

EXTERNAL CE

98

81

133

109

4109

166 69

37

452

3989 35 131

252

1577 77

3099

645

639

6

15,000+ INSTANCES OF IP SHARING LAST YEAR

Collaboration is Core to

Broadcom’s Cultural Fabric


0.01

0.1

1

10

100

0.01

0.1

1

10

350nm 65nm 40nm 28nm

Power/Channel

Area/Channel

Cable TV Full-Band Capture

DESIGN INNOVATION KEY FOR COST REDUCTION

Po

wer

Co

nsu

mp

tio

n [

W]

Ch

ip A

rea [

mm

2]

Narrowband Heterodyne-based

RF Tuners

Full-Band Capture Digital Tuners

59% Average Power Reduction Per Process Node

65% Average Area Reduction Per Process Node


PLATFORM PARTITIONING BECOMES IMPORTANT

28nm Low-cost

Ethernet PHY

SMB Processor/Switch

Touch Controller

RF Transceiver

Cellular Modem?

BT

Wi-Fi

GPS

NFC

Cable Modem

DSL/PON Gateway

Home Networking

STB Video Subsystem?

BROADBAND MOBILE & WIRELESS INFRASTRUCTURE

40-130nm High-voltage/

Specialty RF

Power Over Ethernet

uWave/mmWave RF Power Management

Front-end Module

Power Management

Line Driver

LNA/PA

16/14/10nm High-performance

High-end Switch

Multi-core Processor

KBP

Cellular Modem?

Application Processor

GPU

STB Video Subsystem?

Application Processor

GPU


BROADCOM WELL POSITIONED

41 41

Increasing Complexity

Increasing Costs

Slowing of Moore’s Law

Semiconductor Industry Dynamics Evolving

Scale and Portfolio Breadth

Best-in-Class IP

Design Efficiency and IP Reuse

Broadcom Strengths

PLATFORM LEADERSHIP FOR SMART CONNECTED DEVICES

Robert A. Rango

Executive Vice President and General Manager Mobile & Wireless Group


AGENDA

Favorable Market Dynamics

Continued Connectivity Leadership

Executing on LTE


STRONG GROWTH IN SMART DEVICES

Source: Ericsson Mobility Report, “On the Pulse of the Networked Society,” Nov. 2013

10X Growth of Mobile Data Traffic Between 2013 and 2019

50% Of Mobile Traffic Will be Video in 2019

5.6B Smartphone Subscriptions by the End of 2019


CONNECTIVITY EVERYWHERE

$1.2T In New Opportunities from the Internet of Things (IoT)1

10X Increase in the Number of Wearable Devices over the Next 3-4 Years2

Source: 1 Machina Research 2012 ; 2 Credit Suisse 2013


Multiple Paths to Growth

CONNECTIVITY

Continued Technology Leadership



STRONG CONNECTIVITY ATTACH IN LTE

iPhone 5s iPhone 5c Droid DNA One Galaxy S IV Galaxy Note II Galaxy Note III Zeta G2 Nexus 5

“We Estimate that 75% of all LTE Phones Shipping in 2013 Contain a Broadcom Connectivity Combo.” Peter Cooney, Practice Director, ABI Research, Sept. 2013


EXEMPLARY ROLLOUT AND PRODUCT LEADERSHIP

Tablets and PCs Routers Smartphones


WHY WE CONTINUE TO WIN IN CONNECTIVITY

~35% Power Consumption

Extended Features

~35% Die Size

~25% Residual BoM

~2X Throughput Performance

Lower Power Consumption

Smaller Footprint

Advanced Features NFC

Ecosystem

Open Source




Transmit

~2X Higher Throughput Compared to the Competition

THROUGHPUT PERFORMANCE LEADERSHIP

Receive

Source: Broadcom internal testing

142 Mbps

97 Mbps

0

20

40

60

80

100

120

140

160

-79 -72 -68 -61 -55 -49 -43 -28 -19

Th

rou

gh

pu

t (M

bp

s)

Signal Strength (dBm)

Broadcom Tx

Competitor Tx

188 Mbps

75 Mbps

0

50

100

150

200

250

-79 -72 -68 -61 -55 -49 -43 -28 -19

Th

rou

gh

pu

t (M

bp

s)

Signal Strength (dBm)

Broadcom Rx

Competitor Rx


WI-FI 2X2 MIMO – FASTER AND BETTER COVERAGE

2x2 MIMO Moving into Smaller Screen Devices

Amazon Kindle Fire HD

8.9”/7.0”

BCM43239

Nexus 10

10.1”

BCM43241

iPad Mini With Retina Display

7.9”

iPad Air

9.7”

BCM4324


Connectivity

Body-borne Computing and Sensors

CONNECTIVITY POWERS INTERNET OF THINGS

Smart Devices Control and Analyze

Everything Connected to the Network


Key to IoT and Wearable Success

A BUSINESS MODEL THAT SCALES

Buy | Design | Sell

Complete WICED SDK

Support – Instant and Direct

Online Tools and Support Forum

Every Lead Matters

Scalable Distribution Model



CELLULAR

Executing on LTE

Leading IP Complete Portfolio



4G LTE SoCs

3G SoCs

PORTFOLIO OF 3G AND 4G SOC PLATFORMS

Optimized 3G and 4G Platforms for the Largest Volume Segments

21654 21553 21663/4 28145/55 23550 M320 EOS2

M340 EOS2B


BROADCOM POWERED COMPLETE 3G PLATFORMS

Galaxy Mega 5.8

5.8”

Galaxy Grand and Grand Duos

5.0”

Galaxy Fame and Fame Lite

3.5”

Galaxy Trend Plus and

Trend Duos

4.0”

Galaxy Pocket Neo

3.0”

Galaxy Ace 3

4.0” 4.3”

Galaxy Core Plus

Galaxy S II Plus

4.3”


3G PLATFORM TRACTION

Tier One OEMs

BCM23550 BCM21553 BCM21664

BCM21654G BCM21552

China, India and Emerging

Markets

BCM23550 BCM28145 BCM21663



Power and Performance Optimized

DUAL-CORE LTE CAT-4 SOCs

M320

Available Now

FDD/TDD LTE Cat-4 (150 Mbps)

DC-HSPA+, EDGE

VoLTE

Dual-core A9 @ 1.2 GHz

28nm

M320+

Available Now


DC-HSPA+, EDGE

VoLTE

Dual-core A9 @ 1.5 GHz

28nm



Third SoC in the LTE Family of Devices: Production in 2014

QUAD-CORE LTE CAT-4 SOC

On Track Customer Demand

M340

Sample: 1H 2014


DC-HSPA+, EDGE

VoLTE

Quad-core A7

28nm



Available Now

BROADCOM’S 5TH GENERATION TURNKEY

M320 M320+ M340

Pin to Pin

OEM-1 SW OEM-2 SW OEM-n SW

Software Framework

Wireless Connectivity,

Location

Co

mp

lete

Re

us

e

Android KitKat

Production-ready Schematics

Production-yielded Parts

Bill of Materials

Key Component Supplier Diversity for China/EM

Cost Optimized

Baseband RF, PMU Baseband RF, PMU


LTE SOC FEATURES OPTIMIZED TO CAPTURE MARKET GROWTH

25-30% Die Size 20-30%* Power Consumption

Today Carrier Qualified

Today FDD/TDD CAT-4 (150 Mbps) Today VoLTE

*As compared to key parameters of other commercially available LTE solutions

Complete Platform Today




Sample Mid 2014

LEADERSHIP LTE-A CAT-6 MODEM FEATURES

CAT-6 300 Mbps: FDD/TDD

Carrier Aggregation

VoLTE

TD-SCDMA for China

DC-HSPA+, GSM/EDGE

Flexible World Band RF

Advanced Transmit Technology

eMBMS



MULTIMEDIA PERFORMANCE LEAP IN 2014

Ultra HD (4K x 2K)

Frame Rates (to 120 fps)

More Efficient Codecs (H.265/HEVC)

Video

Higher Quality Images

Higher Speed Pixel Processing

Smart Imaging and Augmented Reality

Imaging

Mpix/s JPEG Encode

3X

3X

Video Capture Video Playback

2X

4X

Current 2014 (Next Generation)



Enhanced ARM Core Implementations

ARM 64 bit V8 (A53/A57) Lead Licensee

Application Processors

Latest Graphics Libraries (OpenGL ES, GPGPU)

Higher Processing (GFLOPS, Frames/Second)

Smallest Size and Lowest Power

Graphics

fps

AP AND GRAPHICS PERFORMANCE LEAP IN 2014 Current 2014 (Next Generation)

GFLOPS Polygons/s

5X

10X

Core Number Performance

3X

4 >4



LEADING IP FOR SMART DEVICES

AP Application Processor

GPU Image Signal

Processor Video

Modem

Multimode RF PMU

802.11ac

BT 4.0

NFC

GNSS

Touch

802.11ac

BT 4.0

NFC

GNSS

Touch

802.11ac

BT 4.0

NFC

LTE

Smartphone and Tablets IoT and Wearables Set-top Boxes



SUMMARY

First Broadcom LTE Smartphone

Leading IP and Complete Platform Solutions

Strong and Broadening Customer Relationships


Daniel A. Marotta

Executive Vice President and General Manager Broadband Communications Group

LEADING IN BROADBAND


AGENDA

Best-in-Class Broadband Business



BEST-IN-CLASS BROADBAND BUSINESS


Delivering Results

Market Leadership

Technology Leadership


2013 HIGHLIGHTS

Ultra HD and HEVC

Set-top Box SoC

HomePlug AV2

High-Density DSL Vectoring

Leadership

Launched Key 28nm

Products

Sampled Numerous ARM-based Products

Launched 3G/LTE Small Cell

Innovation

Record Segment

Revenue and Profit

Strong Gross Margins

Accretive to Company Profitability

Financial*

Expected to Outgrow Peer Group by ~1,500 bps in 2013

* Based on metrics of our Broadband Communications reportable segment. 2013 financial highlights includes updated Q4’13 guidance released on Dec 10, 2013.

1st

1st

1st


LEVERAGING IP ACROSS ALL END MARKETS

Leadership IP End Markets

Cable TV

Satellite TV

IP-TV

Fiber

Terrestrial

DSL

Cable Modem

Cellular

Retail

Powerline

Processors

Modem

Protocol Stacks

Middleware

Demod

Ethernet

Graphics

MPEG

RF Tuner

Security

Voice

Audio MoCA

Wi-Fi

Bluetooth

GPS

NFC


POWERING GLOBAL BROADBAND INFRASTRUCTURE

N. America

EU

UK

S. America

S. Africa

India

China

Korea Japan

S.E. Asia

Oceania

M.E. and N. Africa

Turkey

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http://en.wikipedia.org/wiki/File:Skybrasil.svg

http://en.wikipedia.org/wiki/File:VTR_Logo.svg

http://en.wikipedia.org/wiki/File:Vtclogo.png


IP + INTEGRATION = PLATFORM ADVANTAGE

Two Broadcom Chips

vs. Five Chips from Five Competitors

Broadcom-based HD Set-top Box with DOCSIS 3.0 and MoCA 2.0

BCM3383 Cable Modem

DDR Memory

1

BCM7435 MPEG Server

DDR Memory

2

Flash 1

Competitor Set-top Box

MPEG SoC

DDR Memory

3

Cable Modem

Cable Front-end

Transcode 4x

DDR Memory

2

DDR Memory

1 MoCA 2.0

Flash 1

Flash 2

Broadcom = Lower Cost, Lower Power, Smaller Footprint


MULTIPLE GROWTH DRIVERS

New Geographies

New Features

New Markets



DEVELOPING MARKETS: INDIA

0

4

8

12

16

SD HD & PVR

Mill

ion

s

2014 Satellite Set-top Box Forecast


India Cable Digitization Underway (100M unit TAM)

Broadcom Offering Optimized Solutions for Broad Customer Base in India


Broadcom Expecting to Ship ~2 million SoCs in 2013

Deployments to 10 African Countries

Momentum Building into 2014

DEVELOPING MARKETS: AFRICA


DEVELOPING MARKETS: LATIN AMERICA

World Cup and Rio Olympics Expected to Drive Premium Pay-TV Subscriptions

Net Serviços de Comunicação Investing in Advanced Broadband Infrastructure


Broadcom Innovation Improves Operational Performance

Self-install Gone Wrong, Detected Next Day Splitter installed backwards!

Creates Disruptive Capital and Operation Opportunities for Cable Operators

Scanning and Analyzing 1.4M End-point Daily

Old process would take an entire day

NEW FEATURES: FULL-BAND CAPTURE

Before

After

“Just the Beginning…Mind Boggling Opportunities…Cable will Never be the Same.” Comcast Management


System-level Vectoring Chips Reduce Cost by 10x, Power by 3x and Support 192-line Noise Cancellation

NEW FEATURES: VDSL VECTORING

40% Increase in Broadcom Content Per VDSL Line

Doubles Down-stream Data Rates

Broadcom End-to-End Solution Displaces up to 3 FPGAs

FPGA FPGA FPGA


NEW FEATURES: ULTRA HD

Broadcom Leading the Transition to Ultra HD and HEVC

2011 2012 2013

8,000

7,000

0

Ultra HD TV Shipment Forecast by Region

(In Thousands)

6,000

5,000

4,000

3,000

2,000

1,000

2014 2015 2016

Source: NPD Display Search Quarterly TV Design and Features Report

Middle East and Africa

Latin America

Asia Pacific

China

Eastern Europe

Western Europe

North America

Japan


ROGERS NETBOX 3.0 DELIVERS ADVANCED FEATURES

Utilizes Three Broadcom Products 8 x 4 DOCSIS 3.0 Cable Modem

8-channel FBC Cable Demodulator

BCM7425 Set-top Box Server

Incorporates Leading Features

MoCA 2.0

Dual Transcoding

Fast-channel Change


NEW FEATURES ENHANCE VALUE PROPOSITION

2010 2011 2012 2013

Average Semiconductor Pricing Trend (~-10-14%/yr)

Average Pricing in Broadband (~1-2% CAGR)

Source: Broadcom financials and internal estimates

Full-Band Capture

Multiple Transcoders

MoCA 2.0 and Wi-Fi

High-performance CPUs

HEVC

Ultra HD

New Features


0

200

400

600

800

1,000

1,200

2010 2011 2012 2013 2014 2015 2016 2017 2018

OTT COMPLEMENTARY TO PAY-TV SERVICES

Over-the-Top Services Drive Demand for Broadband Service

Netflix consumers represent ~33% of peak Internet traffic in North America

Competition among Carriers Drives Innovation

Broadcom Supports a Range of OTT Products

Pay-TV Subs OTT Subs

Source: ABI Research 2013

(In Millions)


BUILDING MOMENTUM IN SMALL CELLS

RESIDENTIAL ENTERPRISE

OUTDOOR

Macro Indoor Small Cells Outdoor Small Cells

http://www.google.co.il/imgres?imgurl=http://3.bp.blogspot.com/_uqBx13aymCE/S7sZKKCJClI/AAAAAAAABTc/Pxxyi9xP07s/s1600/OptusLogoMed512x288.jpg&imgrefurl=http://b4tea.com/internet/optus-mobile-broadband-prepaid-plan-rates/&usg=__cv2G5Dl9UyiKOJY255C0JQrVp_4=&h=288&w=512&sz=13&hl=en&start=2&zoom=1&tbnid=MdRfA-iPYgHlWM:&tbnh=74&tbnw=131&ei=pFZMUJQso82LAqS8gXA&prev=/search?q=optus&hl=en&gbv=2&tbm=isch&itbs=1

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CONCLUSIONS

Broadband Business Best-in-Class


DRIVING INFRASTRUCTURE AND NETWORKING

Rajiv Ramaswami

Executive Vice President and General Manager Infrastructure & Networking Group


AGENDA

Best-in-Class Infrastructure Business

Multiple Growth Opportunities


BEST-IN-CLASS INFRASTRUCTURE BUSINESS

Market Leadership

Delivering Results




XLP®

88650 FE1600

Scalable Data Center Solutions Support SDN, Virtualization and Service Delivery

WORLD-CLASS DATA CENTER PORTFOLIO

Trident II

Aggregation and Core

StrataXGS® XLP®

StrataXGS®

Microserver Connectivity

Rack-level BCM Management

XLP® Trident II

NetXtreme®

10GBASE-T

Highest Port Density 10 GbE

NetXtreme II®

40G SerDes

Top-of-Rack


Aggregation Network

Access Network

Core Network

Fiber

DSL

PON

2G GSM: T1/E1

µWave

BTS

Cell Site Gateway/

Router/Node

eNodeB

Microwave IDU/ODU

NID/Demarc

MTU/MDU

ONU

Microwave Aggregation

Hub Site Router

DSLAM

OLT

Pre-Aggregation Packet

(Optical) Transport

Carrier Ethernet

Aggregation

Services Edge Router

Cloud Data

Centers

BSC/RNC

Mobile Packet Core

Core Routing

3G/4G: Ethernet

WORLD-CLASS SERVICE PROVIDER PORTFOLIO

End-to-End Packet Solutions for Cost-effective Carrier Networks


Aggregation Network

Access Network

Core Network

Fiber

DSL

PON

2G GSM: T1/E1

µWave

BTS

Cell Site Gateway/

Router/Node

eNodeB

Microwave IDU/ODU

NID/Demarc

MTU/MDU

ONU

Microwave Aggregation

Hub Site Router

DSLAM

OLT

Pre-Aggregation Packet

(Optical) Transport

Carrier Ethernet

Aggregation

Services Edge Router

Cloud Data

Centers

BSC/RNC

Mobile Packet Core

Core Routing

3G/4G: Ethernet

Knowledge- based

Processor

XLP® II Multi-core Processor

Knowledge- based

Processor




Knowledge- based

Processor

88030 56640

56300

56240

56240

56150

84540

88650

88650 FE1600

84540

Trident II

56450

WORLD-CLASS SERVICE PROVIDER PORTFOLIO

End-to-End Packet Solutions for Cost-effective Carrier Networks

85620 85620


3+ GHz Server-class CPU

High-performance Networking

16nm

Custom ARMv8 64b

Coming Soon

MIPS 64b

Coming Soon

Coming Soon

ARMv8 64b

Rich Networking IP

Embedded Security

Optimized Solutions

BROAD PORTFOLIO OF MULTI-CORE PROCESSORS XLP II

MIPS 64b

80 nxCPUs

160 Gbps Networking

100 Gbps Security

Hardware Virtualization

5B+ Transistors

Optimized for NFV

StrataGX

ARM 32b

Dual-core

Rich Networking IP

Embedded Security


PROVIDER OF CHOICE FOR NETWORK INFRASTRUCTURE


POWERING GLOBAL CARRIERS AND DATA CENTERS

CARRIERS

DATA CENTERS


$0

$500

$1,000

$1,500

$2,000

$2,500

2009 2010 2011 2012 2013E*

Infrastructure and Networking Reportable Segment Revenue (In Millions)

DELIVERING STRONG GROWTH

*2013 ING revenue based on guidance released on Dec. 10, 2013


MATERIALLY OUTPERFORMING PEER GROUP IN 2013

*2013 ING revenue based on guidance released on Dec. 10, 2013. Peers include Marvell (networking), Mellanox (chips and boards), FSL (networking), ELX, QLGC, LSI (networking), CAVM, AMCC, PMCS (2/3 optical and mobile), VTSS, EZCH.

>10%

~-1%

Infrastructure and Networking Reportable Segment Revenue*

Peer Group

Revenue Growth Estimates


MULTIPLE GROWTH DRIVERS


Data Center

Automotive Ethernet

Service Provider




CLOUD SPENDING POWERS DATA CENTER GROWTH

Source: Goldman Sachs 2013

$25

$20

$15

$10

$5

$0

2010 2011 2012 2013E 2014E

Web 2.0 Capital Spending (In Billions)


RAPID TECHNOLOGY TRANSITIONS DRIVE GROWTH

24x10 GbE

64x10 GbE 16x40 GbE

104x10 GbE 32x40 GbE

Enabling Higher SDN Capabilities

More Network Virtualization Scale

More OpenFlow Scale

Highly Configurable

2008 2009 2010 2011 2012 2013

BCM56820

Trident+

Trident II

Next Gen

Driving 10/40/100G

Adoption


Source: Infonetics 2013; Broadcom internal estimates

Carrier Ethernet

IP Routers

3G and 4G Wireless

Packet Optical

SONET SDH

Wireline Voice

$271 $299

2009 2013E

(In Billions)

Service Provider Capital Spending

2009 2013E

Infrastructure and Networking

Service Provider Revenue

Fastest Growing Elements of Service Provider CAPEX

GAINING GROUND IN SERVICE PROVIDER MARKET


Wireless

POS Terminals

System Optimization

Best-in-Class Performance

~$3B SAM in 2016

Scalable CPUs


Retail Router SoC

Networking/ Control Plane

Security

MULTI-CORE PROCESSORS ADDRESS GROWING SAM

Storage/ NAS

Source: Infonetics, Q4 2012; IDC, Q4 2012; ABI Research, 2012; Dell’Oro Jan. 2013; Nilson Q4 2012; Broadcom internal estimates


~$1B SAM for Wireless

Infrastructure Leader in Backhaul

Custom Solutions for Base Stations and Radio Heads

Ramping Processors

in LTE Base Stations

EXPANDING FOOTPRINT IN WIRELESS INFRASTRUCTURE

Source: Mobile Experts, Nov. 2012; Dell’Oro, Jan. 2013


BUILDING MOMENTUM IN AUTOMOTIVE

BMW X5 Currently in Production

200+ OPEN Members High Performance 100 Mbps Ethernet Connectivity

On-board Diagnostics

Infotainment

360° Camera System


POSITIONED FOR CONTINUED SUCCESS

104 104

Data Centers

Service Providers

Embedded Processors


Automotive



Market Leadership

Strong Financials

Outperforming Peers

Best-in-Class Infrastructure Business

INVESTING FOR GROWTH WHILE MANAGING TIGHTLY

Eric K. Brandt

Executive Vice President and CFO Broadcom Corporation


AGENDA

Powerful Economics Funding Investment

Managing Tightly Through Investment Window


POWERFUL ECONOMICS FUNDING INVESTMENT


Corporate Financials

LTE Investment

Cellular

Powerful Economics

Core Businesses


$0

$2,000

$4,000

$6,000

$8,000

$10,000

2008 2013E

$0

$500

$1,000

$1,500

$2,000

$2,500

2008 2013E

SOLID ECONOMICS

25%

30%

35%

40%

45%

50%

55%

2008 YTD Q3 2013

Non-GAAP Product Gross Margin** vs. Mobile and Wireless Mix***

** For a presentation showing GAAP Product Gross Margin and a GAAP to Non-GAAP reconciliation, please see the appendix herein and the Investors section of our website.

*“Total Reportable Segment Revenue” represents the aggregate revenue of our three reportable segments. Certain licensing revenue that we do not allocate to our reportable segments is excluded from reportable segment revenue but is included in our “All Other” category. For a more detailed discussion of our reportable segments and “All Other” category, please see our Quarterly and Annual Reports filed with the SEC, as well as the appendix herein. 2013 data includes updated Q4’13 guidance released on Dec 10, 2013.

*** “Mobile and Wireless Revenue Mix” is the Mobile & Wireless Segment Revenue as a percent of Total Reportable Segment Revenue.

Total Reportable Segment Revenue* (In Millions)

Operating Cash Flow (In Millions)


Baseband Investment Accelerates

0%

5%

10%

15%

20%

25%

2008 2013E

ECONOMIC STRENGTH FUELS GROWTH INVESTMENT

Total Reportable Segment Operating Margin*

* “Total Reportable Segment Operating Margin” represents the aggregate operating margin of our three reportable segments. “Broadband and Infrastructure Operating Margin” represents the aggregate operating margin of these two reportable segments. “Mobile and Wireless Operating Margin” represents the operating margin of this reportable segment. Certain operating expenses that we do not allocate to our reportable segments are excluded from these metrics but are included in our “All Other” category. For a more detailed discussion of our reportable segments and our “All Other” category, please see our Quarterly and Annual Reports filed with the SEC, as well as the appendix herein. 2013 data includes updated Q4’13 guidance released on Dec. 10, 2013.

0%

5%

10%

15%

20%

25%

30%

2008 2013E

Broadband and Infrastructure Operating Margin*

0%

5%

10%

15%

20%

2008 2013E

Mobile and Wireless Operating Margin*

= +


2010 2011 2012 2013E

INVESTING FOR GROWTH IN LTE

Mobile and Wireless Operating Margin*

* “Mobile and Wireless Reportable Operating Margin” represents the operating margin of our Mobile & Wireless reportable segment. Certain operating expenses that we do not allocate to our reportable segments are excluded from our reportable segment operating margins but are included in our “All Other” category. For a more detailed discussion of our reportable segments and the “All Other” category, please see our Quarterly and Annual Reports filed with the SEC, as well as the appendix herein. 2013 data includes updated Q4’13 guidance released on Dec. 10, 2013.

Cellular Baseband Operating Margin Impact: ~8-17 Percentage Points on Mobile and Wireless Reportable Segment ~3-8 Percentage Points on Broadcom Total Reportable Segment

Cellular Baseband Investment

0%

5%

10%

15%

20%

2010 2011 2012 2013E


2005 2006 2007 2008 2009 2010 2011

…Improved Gross Margins …and Strengthened Profitability WLAN Supplier Consolidation…

Description 2006 2011

# of Suppliers* 8 4

Top 3 Share ~50% ~95%

WLAN: A MODEL FOR SUCCESS DRIVING LEVERAGE?


2005 2006 2007 2008 2009 2010 2011

Revenue Operating Margin**

** Excludes certain operating expenses that we do not allocate to our reportable segments but that are included in our “All Other” category. For a more detailed discussion of our reportable segments and the “All Other” category, please see our Quarterly and Annual Reports filed with the SEC, as well as the appendix herein.

* Leading-edge suppliers.


MANAGING TIGHTLY THROUGH INVESTMENT WINDOW


Portfolio Management

Operating Expenses

Stock-based Compensation

112

Return of Capital


OPTIMIZING INVESTMENT

2013 LOB Rev CAGR GP Rank RD Rank OI Turns Value Rank

1 3 9 2 1 4

2 12 1 1 5 1

3 5 3 4 8 3

4 11 2 3 7 2

5 6 8 5 2 6

6 9 5 6 4 5

7 4 7 10 10 8

7 7 10 7 6 9

9 10 6 9 9 7

10 2 4 13 13 13

10 13 11 8 3 10

12 1 13 11 12 12

13 8 12 12 11 11

Reduced

Investment

Portfolio Management Grid


INVESTMENT GROWTH EXPECTED TO SLOW IN 2014

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Q4'12 Q1'13 Q2'13 Q3'13 Q4'13E Q1'14E

*For a presentation showing historical quarterly GAAP R&D and SG&A expenses and a GAAP to Non-GAAP reconciliation, please see appendix herein and the Investors section of our website. The Non-GAAP guidance above is consistent with the presentation in our quarterly earnings releases.

**Does not contemplate acquisitions or other corporate actions.

Quarterly Non-GAAP R&D + SG&A* (In Millions)


REDUCING STOCK-BASED COMPENSATION

0%

2%

4%

6%

8%

10%

12%

14%

16%

2007 2008 2009 2010 2011 2012 2013E 2007 2008 2009 2010 2011 2012 2013E

SBC Percent of Revenue SBC Per Employee (In Thousands)


2007 2008 2009 2010 2011 2012 2013E

RETURN OF CAPITAL TO SHAREHOLDERS

Returned Cumulative >100% of US Cash Flow* Over Seven Years

Stock Repurchases and Dividends

US Cash Flow from Operations*

~$5.3 Billion Cumulative Stock Repurchase and Dividends

*”US Cash Flow from Operations” is an estimate of the annual change in US cash balances, after adjusting for acquisition costs, repatriations, proceeds from debt issuances, intra-company transfers, and other items.


CLOSING THOUGHTS

Powerful Economics in Core Businesses

LTE Success Drives Leverage

Managing Tightly Through Investment Window


Accelerate Connectivity

Innovation

Material LTE Revenues and New Product Rollouts

Continued Growth in

Emerging Markets

Ramp New Technologies – Ultra HD, HEVC, Small Cell, Vectoring

SIGN POSTS FOR 2014

Hand Home

Drive Innovation in the

Data Center

Accelerate New Market Opportunities

Infrastructure

APPENDIX


Reportable Segments Total

Broadband

Communications

Mobile &

Wireless

Infrastructure

& Networking

Reportable

Segments

All

Other Consolidated

Nine Months Ended September 30, 2013

Net Revenue $ 1,672 $ 2,979 $ 1,504 $ 6,155 $ 86 $ 6,241

Operating Income (loss) 409 333 454 1,196 (910) 286

Operating Margin 24.5% 11.2% 30.2% 19.4% 4.6%

Year Ended December 31, 2012

Net Revenue $ 2,156 $ 3,809 $ 1,855 $ 7,820 $ 186 $ 8,006

Operating Income (Loss) 504 561 484 1,549 (873) 676



Net Revenue $ 2,039 $ 3,484 $ 1,659 $ 7,182 $ 207 $ 7,389

Operating Income (loss) 391 572 545 1,508 (555) 953



Net Revenue $ 2,134 $ 2,890 $ 1,588 $ 6,612 $ 206 $ 6,818

Operating Income (loss) 446 526 579 1,551 (469) 1,082



Net Revenue $ 1,525 $ 1,720 $ 1,055 $ 4,300 $ 190 $ 4,490

Operating Income (loss) 181 116 289 586 (531) 55



Net Revenue $ 1,723 $ 1,528 $ 1,258 $ 4,509 $ 149 $ 4,658

Operating Income (loss) 384 35 390 809 (637) 172


BROADCOM CORPORATION UNAUDITED SEGMENT REPORTING

2008 2009 2010 2011 2012 YTD Q3

2013

Include in the “All Other” Category

Net Revenue $ 149 $ 190 $ 206 $ 207 $ 186 $ 86

Stock-based Compensation $ 509 $ 497 $ 484 $ 513 $ 543 $ 401

Amortization of Purchased Intangible Assets 19 31 59 84 311 172

Amortization of Acquired Inventory Valuation Step-up 2 9 10 24 72 1

Impairment of Goodwill and Long-lived Assets 172 19 19 92 90 511

Settlement Costs (Gains) 16 118 53 (18) 79 (75)

Restructuring Costs (reversals) (1) 8 - 16 7 12

In-process Research and Development 42 - - - - -

Charitable Contribution - 50 - 25 - 25

Change in Contingent Earn-out Liability - -

- (1)

-

-

Non-recurring Legal Fees - 12 - 25 - -

Payroll Tax on Certain Equity Awards 5 4 10 8 10 4

Miscellaneous Corporate Allocation Variances 22 (27) 40 (6) (53) (55)

Total Other Operating Costs and Expenses 786 721 675 762 1,059 996

Total Operating Loss for the "All Other" Category $ (637) $ (531) $ (469) $ (555) $ (873) $ (910)

(In Millions) (In Millions)


BROADCOM CORPORATION UNAUDITED SCHEDULE OF SELECTED GAAP TO NON-GAAP ADJUSTMENTS

2008 2009 2010 2011 2012 YTD 2013

GAAP Product Gross Margin 50.6% 48.3% 50.3% 49.5% 48.5% 50.3%

Stock-based Compensation and Payroll Taxes 0.6 0.6 0.3 0.3 0.3 0.3

Amortization of Purchased Intangible Assets

and Step-up of Acquired Inventory 0.4 0.5 0.7 1.1 3.5 2.1

Non-GAAP Product Gross Margin 51.6% 49.4% 51.3% 50.9% 52.3% 52.7%

Q4 ‘12 Q1 ‘13 Q2 ‘13 Q3 ‘13 YTD 2013

GAAP Research and Development and

Selling, General and Administrative Expense $ 762 $ 794 $ 793 $ 790 $ 2,377

Stock-based Compensation and Related Payroll Taxes (124) (135) (131) (120) (386)

Non-GAAP Research and Development and

Selling, General and Administrative Expense $ 638 $ 659 $ 662 $ 670 $ 1,991

(In Millions, Except Percentage)

Q1 ‘11 Q2 ‘11 Q3 ‘11 Q4 ‘11 Q1 ‘12 Q2 ’12 Q3 ‘12 Q4 ‘12 Q1 ‘13 Q2 ‘13 Q3 ’13

GAAP Product Gross Margin 49.3% 49.7% 49.6% 49.4% 48.3% 46.9% 49.0% 49.7% 49.6% 49.7% 51.4%

Stock-based Compensation and Payroll Taxes

0.4

0.4

0.2

0.3

0.5

0.3

0.3

0.3

0.4

0.3

0.3

Amortization of Purchased Intangible Assets

and Step-up of Acquired Inventory

1.2

1.0

1.2

1.0

3.3

5.2

3.0

2.4

2.2

2.1

1.9

Non-GAAP Product Gross Margin 50.9% 51.1% 51.0% 50.7% 52.1% 52.4% 52.3% 52.4% 52.2% 52.1% 53.6%

Thank You

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