fairchild powerpoint presentation template · control or command ip leadership ... pv inverter...
TRANSCRIPT
2
Notes on Forward Looking Statements
and Non-GAAP Measures • Comments in this presentation other than statements of historical fact may constitute forward looking statements and are
based on Fairchild’s management’s estimates and projections and are subject to various risks and uncertainties
• These risks and uncertainties are described in the Company’s periodic reports and other filings with the Securities and Exchange Commission (see the Risk Factors section) and are available at http://sec.gov and investor.fairchildsemi.com
• Actual results may differ materially from those projected in the forward looking statements
• Some data in this presentation may include non-GAAP measures that we believe provide useful information about the operating performance of our businesses that should be considered by investors in conjunction with GAAP measures that we also provide. You can find a reconciliation of non-GAAP to comparable GAAP measures at the Investor Relations section of our web site at http://investor.fairchildsemi.com
Recent additions to our website at http://investor.fairchildsemi.com
Updated Financials (through current quarter with segment revenue/gross margin breakouts)
• Quarterly Fact Sheet with current quarter highlights
• This investor presentation
4
Fairchild Today…
Fairchild Semiconductor
2015 Revenue $1.37B Analog Power & Signal Solutions Group
(APSS)
(28% of 2015 Revenue)
Mobile
Power Conversion
Motion Tracking
Innovative analog power, signal and sensor solutions
Switching Power Solutions
(SPS)
(58% of 2015 Revenue)
Automotive
HV MOSFET, IGBT & SPM
LV & MV MOSFET
Cloud
Highly efficient discrete and integrated power management solutions
Standard Products Group
(SPG)
(14% of 2015 Revenue)
Standard Discrete, Analog & Logic
Optoelectronics
Essential functions for key customers
5
• Energy efficiency, mobility and cloud
mega-trends
• Power silicon content grows faster than
end market sales – premium paid for
efficiency
• Fairchild has deep power system
knowledge to support greater integration
and higher efficiency
• Company focused on delighting all
customers from large OEMs to the ―long
tail‖
Markets That Drive Our Business
6
Building a Great Leadership Team
• Promoting from within in areas of progress
Automotive, Supply Chain, Assembly & Test
• Recruiting & upgrading in areas of weakness
Sales & Marketing, Fab Operations, Engineering
• Opportunistically adding talent
Strategy, Finance
7
Building a Great Company
SALES &
MARKETING
TECHNOLOGY
OPERATIONS
BUSINESS
UNITS
• Solid operations org is key foundation
• Sales & marketing as well as
technology also well in place
• Business units key focus now
8
Our Culture
EXCEL
ENGAGED EMPLOYEE
DELIGHTED CUSTOMER
RESPECT
SPEED
EXPLORE SIMPLIFY
PLAY
DIRECT
WORLD-
CLASS
COMPANY
CHALLENGE
10
Analog Power & Signal Solutions Group
Mobility, LED and Offline Power
USB/Power/ Analog Switches
Point of Load Battery
Management Systems
Travel Adapter LED Offline/Aux
Power
Fairchild is committed to the Power Conversion/Controller Market
• ~ 300 Product Line personnel
• ~ 30% of total Fairchild revenue
• All AC-DC and Low-Power DC-DC product lines consolidated to
provide system solutions
11
Mobile System Solutions
Travel Adapter
Fuel gauge
Application
processor
Audio Codec
PoL Power Battery
protection
Battery
charger
OVP/OCP
MUS
Type-C
Analog switch Load switch
Audio jack
detection
Power or Signal Control or Command
IP Leadership
IP Development
Headset
Accessory
Cable
Communication
protocol
Sensor
processor
Camera
processor
Handset
12
Auto, iFET, SPG
Discrete Power Solutions Group
Automotive BU iFET BU SPG BU Design PE/TE
Switching Power Solutions Group
Highly focused on core building block differentiation
• > 40% of total Fairchild revenue
• Combined eng. resources for discrete design & product/test engineering
• Tightly connecting with TD – strategic decisions for next LV/MV/HV technologies
Discrete Power Solutions – we want customers to think 1st of Fairchild
• Best-in-class discrete technologies – product definition efforts include strategic analysis
• Focus on system solutions – supported by top applications & system engineering specialists
13
iFET Market Solutions
DC to AC
Integrated
Energy Inversion
Power Tools, Pumps, Fork
lifts, small e-vehicles, Solar
and UPS
MV FETs
MV Gate Driver+FET
DC to DC
Integrated
Power Delivery
Telecom, Computing,
Industrial Automation,
Mass Market
LV & MV
SPS, PoL, Load Switch
World Class
LV and MV FETs
N-Channel
P-Channel
Singles
Duals
Extended Temp
Efficient Fast
Switching
Lowest RDS
14
Automotive Power Solutions
FCS Engine Management:
Ignition, Glow Plug
Injector control and supply
HID Lighting
Brake Systems (ABS, ESC) Electric Pumps (Water, Fuel, Oil)
Traction Inverters, DC/DC in HEV / EV
FCS Electric Power Steering
El. Parking Brake
Transmission and
Gearbox
Engine Cooling
Body load control
Already worldwide
leading solution
Market Trend: More stringent CO2 emissions regulations & favorable incentives
Fairchild Mission: Making the world a cleaner and smarter place by providing solutions
in support of energy efficient applications
15
High Voltage
Motor Control System
Major HA, HVAC, Indus. Inverter, Fan Motor, Pump and
Power Tool
Industrial Power System 1
Renewable Energy, UPS, ESS and Other Industrial Markets
Industrial Power System 2
IH/MWO, Welding Lighting, EV Charger, Small
HA and Consumer
Power Supply System
Telecom, Server, Other Computing and
Charger/Adapter
High Voltage
Business Unit
HV BU is competitive and streamlined organization
• 81 Product Line direct and dedicate personnel
• 27% of corporate revenue
• 42% of corporate NPI #
Key market segments of HV inverter, HV AC/DC and MV DC/DC are addressed by
our technology of SPMs, Solar HPMs, FS IGBTs, SJ MOSFETs and diodes.
16
Air-Conditioner System Solutions
Microprocessor Power Supply
IP Leadership
PFC
(PFC SPM)
Inverter for
Compressor
(Motion SPM)
Inverter for Fan
(Motion SPM)
Motor Drive
IC
PFC Control
IC
Current,
Voltage
Sensor
AC Input
BLDC Motor
(Fan)
BLDC Motor
(Compressor)
Power or Signal Control or Command
17
PV Inverter System Solutions
DC-DC DC-AC
Power or Signal Control or Command
IP Leadership
DC
Input
AC Output /
Grid
Gate Driver
Controller/ DSP
String
Combiner Box
Energy Storage
System
Gate Driver
Junction Box
Aux PS
18
Welding Power System Solutions
Inverter
LS driver
2nd Rectifier PFC Bridge
Rectifier
Power or Signal Control or Command
AC Input DC
Output
Aux PS
PFC Controller
PWM Controller
/ DSP
PWM
Controller
2nd
Inverter
AC
Output
PWM Controller
IP Leadership
19
AC-DC Power System Solutions
DC-DC
LS driver
SR PFC Bridge
Rectifier
Power or Signal Control or Command
AC Input DC
Output
Aux PS
PFC Controller /
DSP
LS driver
SR Controller
/ DSP
HVIC
PWM/PFM
Controller
/ DSP
PWM
Controller
IP Leadership
20
Key Product Verticals
• Automotive
• Cloud & Telecom
• Renewable Energy
• Lighting
• Mobile Power & Interface
• Motor Control
• Motion Tracking
• Wall-To-Battery
• Portable Consumer
21
• Technology
Leading products and processes development to
address worldwide power trends in energy, mobility
and the cloud
• System Integration
Packaging, multi-chip, feature-rich
devices/modules
• Design Tools
Full library of growing system reference designs and
robust online design simulation suite
• Expert Resources
Power systems technologists, Factory trained
Power FAEs, regional Power Solution Centers to
complete your design
Fairchild’s Design Pillars
Tech
no
log
y
Syste
m
Inte
gra
tio
n
Desig
n T
oo
ls
Exp
ert
Reso
urc
es
22
Focused on fast-growing trends in wireless, energy convergence,
cloud, and mobile for greater energy efficiency in key areas:
AUTOMOTIVE
Pioneering Efficient Energy Consumption
ALTERNATIVE
ENERGY CLOUD LIGHTING MOBILE
TRAVEL ADAPTERS MOTOR CONTROL
23
• Innovative ―source-to-system‖
power technologies
• Discretes, IC’s, SoC’s and PSiP’s
• Battery powered (Li ion) to 1700V
(wind turbine) applications
• 24/7 access to easy-to-use web
design tools
• Advanced packaging options
1 kW 1 mW
Unique Design Options For LV to HV
Products
24
• Shortest time from idea-to-silicon
• Customizable functions,
packaging, form factor options
• Power Solution Centers
• Regional design teams,
local FAEs
• Web-Based Design Tools
• Focused Application Seminars
Fairchild helps customers optimize, qualify and complete designs
for a time-to-market advantage.
Expert Technical Assistance &
Design Support
25
• Fabs
• South Portland, Maine, USA
• Mountaintop, Pennsylvania, USA
• Bucheon, South Korea
• Test & Assembly
• Cebu, Philippines
• Suzhou, China
Global manufacturing, test and assembly sites support your need for flexibility, quality, service and consistent supply.
Manufacturing Control = Reliable Delivery
26
Quality That Exceeds Expectations
• Major focus on reliability
development
• Certified I6949 factories
• Laser focus on customer
delight
• In-region customer
quality engineering & FA
support Philosophy
Implementation
Continuous
Improvement
EXCELLENCE
27
WW Manufacturing, Sales, R&D and Support
Corporate HQ San Jose, CA
Product Design, Support Irvine, CA
Power Solutions Center Dallas, TX
Fab S Portland, ME
Product Design Support Bedford, NH
Fab Mountain Top, PA
R&D Kista, Sweden
Assembly & Test Suzhou, China
Sales, R&D Seoul, Korea
Sales Tokyo, Japan
Sales, R&D Taiwan
Head of Greater China Sales Shanghai, China
Assembly & Test Cebu, Philippines
Asia Pacific Sales Hong Kong
Power Solutions Center, Sales Shenzhen, China
Xsens The Netherlands
Fab Bucheon, Korea
EMEA Sales & Apps Munich, Germany
Sales Osaka, Japan
28
• Worldwide distribution
• Design & supply chain excellence
• Order parts, samples, eval kits online
• Expedited shipping and service
• Technical seminars, training, events
Distribution—Critical Fairchild Partner Strong focus on emerging broad market customers
29
One plan – capacity, materials, inventory, resource planning linked to one integrated plan – customer success
Supply Chain Excellence
• Speed Responsiveness & Transparency
• Contingency plans, risk resiliency
• IT connected to external partners
• Cost-effective transportation management
• Inventory programs, scenario planning
30
Speed Responsiveness Industry Leading Lead Times
• Record-level and industry leading
on-time delivery due to speed,
transparency, flexibility and
collaboration
• Reduced 50% from 1 year ago
• 85% of Fairchild products ship
within 6 weeks
31
• Best-in-class ―no obsolescence‖ policy
• Secures supply in legacy designs
• If required to discontinue production
• Enhanced lifetime supply
• 12 months after EOL notice to place orders
• Plus 12 months to take delivery
Fairchild’s No EOL Policy
33
Sales Strategy Foundation
• DEMAND CREATION - Design In/Win — shift coverage to R&D
- System approach — understand the application
- Customer empathy — fill a latent need, solve a problem
• CLOSER TO CUSTOMERS - Proximity — quick response
- Adaptive — fragmented customer base
- Agile — early engagement with emerging customers
• ACCOUNTABILITY - Revenue accountability moved to design origin
- Pay on results — new sales bonus on design-in, revenue growth
34
Resources Best Deployed
• Increase investment on most significant markets
- China
- Germany
- Silicon Valley
• Shift resources to most promising opportunities
- Generated revenue vs. transacted revenue locations
- Invest where the growth will be vs. where revenue is today
- Aligned company focus segments
• Expand customer base
- More in fragmented markets: (i.e. Industrial, Auto)
- Emerging segments and customers: (i.e. Wearables)
- Mass market
35
Resources Go-to-Market
ASSIGNED
ACCOUNTS
MASS MARKET
LONG TAIL
Growth
Potential
• Biggest growth opportunity
• Focus, depth — 80% of resources
• Demand creation
• More customers
• Leveraging distribution
• More engineers
• Leverage the web & catalog distributors
• Build brand awareness
36
New Customer Engagement
• CUSTOMERS DRIVE PRODUCT DEFINITION - System expertise provides unique insight - FAE conduit of customer pain points
• INCREASE COMPLETE RECEIVED VALUE
- Product to solution, design expertise - Supply chain excellence - No EOL policy
• RELATIONSHIPS MAKE A DIFFERENCE
- Attention to every customer - Focus on customer empathy
37
• CLOUD & TELECOM - Move to IC & System approach - More strategic engagement - Growth acceleration
• MOBILE POWER & W2B - Full end-end solution - Huge value to customer - Major ASP increase YR13 Y14 $M Y15 $M Y16 $M
Others
Mobile Power & W2B
Cloud & Telecom
Source: Fairchild Internal Data
Execution Customer Showcase Relationship, Focus, System Approach Drives Growth
39
Highlights of the Quarter – Q2 2016
Sales were $350M, +7% QoQ and -1% YoY
Demand improved across broad range of end markets in Q2 and remain strong in the first weeks of Q3
Demand was higher in the mobile, appliance, enterprise computing and industrial end markets. We expect mobile
demand for our products to be particularly strong in Q3
Adjusted gross margin decreased to 30% as we recognized underutilization charges primarily from the prior quarter’s
significant inventory reduction. We increased factory loadings in Q2 in response to higher demand and expect gross
margin to improve significantly in Q3
OPEX was flat at $85M reflecting continued strong cost control
Free cash flow was a 58M and net cash was $132M
Lead times remain short and supply chain is well positioned to support turns business
40
Adjusted Revenue & GM%
0.0%
7.0%
14.0%
21.0%
28.0%
35.0%
42.0%
200.0
250.0
300.0
350.0
400.0
450.0
500.0
Reve
nue (
$M)
Revenue Adj GM%
41
Adjusted EPS
$0.19
$0.17
$0.27
$0.06
($0.32)
($0.03)
$0.12
$0.23 $0.25
$0.40
$0.42
$0.45
$0.39
$0.41
$0.34
$0.15
$0.06
$0.14
$0.25
$0.10
($0.02)
$0.01
$0.17
$0.11
$0.04
$0.20
$0.28
$0.10 $0.11
$0.12
$0.20
$0.11 $0.10
$0.13
($0.40)
($0.30)
($0.20)
($0.10)
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
Adj
EPS
$
Includes Equity Comp
42
4 Qtr Rolling Adjusted EPS
$0.23
$0.24 $0.24
$0.17
$0.05
$(0.01)
($0.04)
$0.00
$0.14
$0.25
$0.33
$0.38
$0.42 $0.42
$0.40
$0.32
$0.24
$0.17
$0.15 $0.14
$0.12
$0.09
$0.07 $0.07
$0.08
$0.13 $0.16
$0.16 $0.17
$0.15
$0.13 $0.13
$0.13
$0.13
($0.10)
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
Adj
EPS
$
43
Disciplined Asset Management
• Balance sheet summary:
• Cash and investments exceed debt by $132m
• Internal inventory reduced by $11m QoQ
• DSO in normal seasonal range at 39 days
• Days of payables flat QoQ at 37 days
• FCF was $58m
• Primary focus remains investing in our business
45
4 Qtr Rolling FCF % Revenue
(2.0%)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
($10)
$0
$10
$20
$30
$40
$50
$60
% of
Rev
enue
4 Qtr
Rolli
ng F
ree C
ash
Flow
($M
)
4Qtr Rolling Avg % to Revenue
46
Debt Composition
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1997 1999 2001 2007 2008 2009 2010 2011 2012 2013
Drawn Revolver Term Loan Convert High Yield
47
Net Debt and Interest Trend
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
-$700.0
-$600.0
-$500.0
-$400.0
-$300.0
-$200.0
-$100.0
$0.0
$100.0
$200.0
$300.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1'16 Q2'16
Net Cash Interest % of Revenue
48
Follow us on Twitter @ twitter.com/fairchildSemi
View product and company videos, listen to podcasts and comment on our
blog @ http://blog.fairchildsemi.com/
View the Knowledge is Power community @ http://community.fairchildsemi.com/
Visit us on Facebook @ www.facebook.com/FairchildSemiconductor