1530 T G1 Freescale Semi - Jefferies Group · ColdFire+, CoreNet, Flexis, Kinetis, MagniV, MXC,...

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





• 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





>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





Grow revenue to gain share

Increase margin to improve profitability

RealigningBusinesses

ReallocatingR&D

RedistributingSales

SingleManufacturing

Operations Entity

6TM





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





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





*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





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.

12TM





(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 Semiconductor, Ltd. Reconciliation of Non-GAAP Measures (Unaudited) *


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 Semiconductor, Ltd. Reconciliation of Non-GAAP Measures (Unaudited) *


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





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





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





Americas Japan

EMEA Asia

18TM





Enterprise Service Provider General Embedded

QorIQ

RF / Airfast

i.MX

1530 T G1 Freescale Semi - Jefferies Group · ColdFire+, CoreNet, Flexis, Kinetis, MagniV, MXC,...

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