MSCC Corporate Presentation

7/31/2019 MSCC Corporate Presentation

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Power Matters

May 2012

2012 Microsemi Corporation.


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Power Matters

Disclaimer

This presentation contains projections or other forward-looking

statements regarding future events or the future financial performance ofMicrosemi Corporation.

We wish to caution you that these statements are only predictions andthat actual events or results may differ materially. We refer you to all ofthe documents that the company filed with the Securities and Exchange

Commission. Please pay special attention to the Companys most recentForm 10-K and subsequent Form 10-Qs.

These documents contain and identify important factors that could causethe actual results to differ materially from those contained in ourprojections or forward-looking statements.

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About MicrosemiAbout Microsemi

Focused on Providing Solutions Where Power Matters,

Security is Non-negotiable, and Reliability is VitalCommunications

Defense & Security

Aerospace

Industrial & Medical

Industry's Most Extensive Technology Portfolio forTargeted Markets

Mixed-signal Integrated Circuits

SoCs and ASICs

Programmable Logic SolutionsPower Management Products

Timing and Voice Processing Devices

RF Solutions

Discrete Components

Power-over-Ethernet ICs and Midspans3


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Power Matters

EnterpriseLighting and DisplayStorage / Networking

Homeland SecurityEnterprise SecurityMilitary and Defense

Commercial AirAvionicsSatellite

Industrial ControlMedical

Alternative Energy

Markets, Customers, and Applications

4

19%Industrial &

Medical

29%Defense &Security

21%Aerospace

31%

Communications

19%Industrial &

Medical 31%Communications

21%Aerospace

29%Defense &Security
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A Model of Managed Growth

5201220062001

Small Signal Transistors

Medium Signal Transistors

Inverters

LDOs

2001 SAM: $500M

2006 SAM: $850M

GaAs Diodes RF Power Amplifiers

Power Switching

Small Signal Transistors

2012 SAM: $5.2B

Anti-Tamper

Board Level Systems

DC/DC

ICs

Converters

Subsystems

FPGAs/SoCs

GaAs Diodes

LED Backlighting

RadHard

MOSFETS

Hybrids

Transistors

Network Timing & Sync

Power over Ethernet

Voice Line Circuits

WLAN Power Amplifiers

Consistently Driving

SAM Expansion


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Industry's Most Comprehensive Portfolio

RF Front End

Processing,Sense &

Control

ProgrammableAnalog

Configurable

Logic

Analog DataAcquisition

(ADC)

Transceivers

DACs

Drivers &Bridges

Actuators,Transducers

and PHYs

Power Conversion, Management & Supply

The Complete Solution

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Q2 FY12

Communications

7

29%

19%

21%

31%

Industry Leading Product Capability

High Growth: Designed in at allTier 1s

Leading Technology Positions: PoE,

RF, Timing and Sync

Increasing Content per Application

Fabless Model


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Moving Beyond Early Adopters

20% market penetration in 2010

Leading High Power ProductSolutions

Laptops, IP telephones, webcams,POS and data terminals, trading floors

Cross Licensing Agreement with Cisco

Customer Base Moving to Mass Adoption

Power over Ethernet (PoE) Solutions

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Communications - Wireless

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BasebandProcessor

Chip

PA

LNA

ANT

Front End Module (FEM)

RF TransceiverChip

Personal Area Networks(PAN)

WLAN ( WiFi / WiMAX) Power Amplifiers, Low Noise Amplifiers

Home Area Networks(HAN)


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Leadership Communications Strategy

Power ConversionPower Delivery

Wireless WAN / LANRF Front End

Sense and ControlPower ManagementCustomizable System on Chip (cSoC)

Power over Ethernet (PoE)

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VoIP, FTTx, DSL

Network Timing & SynchronizationVoice Processing


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Leadership Communications Portfolio

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DSL

FTTx

Hybrid

Cable

FTTx

PoE

Power Management Power Delivery & Conditioning WAN / LAN Subscriber Line Circuits Timing & Sync High Quality VoIP


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Q2 FY12

Defense & Security

12

19%

21% 29%

Electronic Content Growth OutpacingDoD Budget

Foreign Military Sales Material,Backlog Growing

Strong Footprint in all Tier 1 Prime

Contractors

Components Subsystems ExpandedSAM

Merchant Solutions=Increased Content

at Lower Cost

31%


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Defense - UAV

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Leveraging HiRel Strength into Growth Applications

Communications:

mmWave modules RF Transceivers

Flight Control: SoCs/FPGA HV Diodes HV Transistors

Engine Control: SoCs/FPGA Power Switching

Video Recorder: Signal Diodes Zener Voltage Regulators Standard Rectifiers

Satellite Antenna: NPN Transistors Signal Diodes

SAR (missile electronics): Fast Rectifiers Zener Voltage Regulator

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TealGroup: U.S. Military UAV market forecast to grow at 13% CAGR from 2013-2018


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Q2 FY12

Aerospace

14

31%

29%19%

21%

Commercial Air:

Fuel Efficiency Driving Content Growth

Commercial Air Product Leadership:Avionics, Radar, Power Control, TVS

Satellite:

Continued Strong Market Growth

Satellite Product Leadership:FPGA, DC/DC, Power Conditioning

Organic Growth and Acquisitions:Increasing Application Content & SAM


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Aerospace - Satellite

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BUS

Howit FliesToday Mostly Microsemi SoC

Command and Data Handling Telemetry Tracking and Control Power Management Central Computer

Attitude and Orbit Control

PAYLOAD

Whyit FliesToday Mostly Custom ASIC

Communications Switches Cameras and Imagers Radar Scientific Instruments

Microsemi Content

Diodes Transistors

MosFETs cSoCs Power supply systems TOTAL: $1-3M per vehicle

Growth

ASIC Replacement Strategy mmWave / Comm Strategy

Hosted payloadSAM Increase: $150-$200M/yr


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Q2 FY12

21%Industrial & Medical

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21%

31%

29%

19%

Strong Medical Footprint:

Implantable, MRI, Radiation, Portables

Strong Design-in & Revenue Position:Solar, Wind and Battery Applications

Diversified Cap Equipment Applications:

Welding, Deposition, Plasma

New Products in Smart Grid Ramping

New Design-ins:Electric & Hybrid Vehicles


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Provision

Medical Products Leadership

Implantable Technology

Power Delivery, Management

MRI

Power SwitchingHigh-power RF

Defibrillator

Pacemaker

Portable Patient Monitoring

Processing:Sense and Control

Power Management

Processing:Sense and Control

Power Management

Oncology / RadiationTreatment

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http://www.amazon.com/gp/product/images/B001FAJP2I/ref=dp_image_0?ie=UTF8&n=3760901&s=hpc


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FINANCIALS


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Financial Strength / Target Model

FY11 FY12

Q2 Q3 Q4 Q1 Q2

Net Sales 207.5 216.7 227.3 240.9 249.3

Gross Profit 116.5 123.7 130.2 131.9 137.0

Gross Margin 56.2% 57.1% 57.3% 54.7% 55.0%

Operating Income 53.0 56.8 59.7 51.8 55.9

Operating Margin 25.6% 26.2% 26.3% 21.5% 22.0%

Net Income 38.4 42.0 45.6 33.6 40.3

Diluted EPS 0.45 0.49 0.53 0.39 0.46

Target Model

Revenue Growth 15%

Gross Margin 60%

Operating Margin 30%

Note: Non-GAAP

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Balance Sheet

FY11 FY12

Q2 Q3 Q4 Q1 Q2

Cash & Cash Equivalents $ 217.3 $ 246.2 $ 266.6 $ 133.5 $ 121.4

Accounts Receivable 97.8 98.1 110.9 139.3 144.4

Inventories 140.2 145.4 140.8 164.8 156.3

Total Assets $1,442.4 $1,485.0 $1,470.5 $1,944.7 $1,911.9

Current & Long Term Liabilities 644.1 643.8 578.4 1,088.1 1,025.4

Stockholders Equity 798.3 841.2 892.1 856.6 886.5

Total Liabilities & Stockholders Equity $1,442.4 $1,485.0 $1,470.5 $1,944.7 $1,911.9

Days Sales Outstanding 47 41 42 47 52

Days of Inventory 151 140 134 127 127

Operating Cash Flow $ 18.1 $ 59.3 $ 52.2 $ 19.2 $ 42.1

Free Cash Flow $ 11.6 $ 52.2 $ 45.8 $ 6.8 $ 27.8

Balance Sheet & Cash Flow

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Thank You

MSCC Corporate Presentation

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