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7/31/2019 ON SEMI Annual Shareholder Meeting Presentation - FINAL
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1 May 2012
Annual Shareholder Meeting
May 2012
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Meeting Program Summary
Order of Business:
A. Call to order and introduction
B. Items of business to be voted upon
C. Inspectors preliminary voting report
2 May 2012
D. Conclusion of the formal portion of the Annual Meeting
E. Managements discussion
F. Question and answer
G. Conclusion of the non-formal portion of the Annual Meeting
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During the course of this presentation, ON Semiconductor may make projections or otherforward-looking statements regarding future events or its future financial performance. Thewords estimate, intend, expect, plan, or similar expressions are intended to identifyforward-looking statements. ON Semiconductor wishes to caution that such statements aresubject to risks and uncertainties that could cause actual events or results to differ materially.Important factors relating to our business, including factors that could cause actual results todiffer from our forward-looking statements, are described in our Form 10-K and other filingswith the SEC. ON Semiconductor assumes no obligation to update forward-looking statements
Safe Harbor Statement, Non-GAAP Financial
Measure & Confidentiality
3 May 2012
to reflect actual results or changed assumptions or other factors.
Some data in this presentation may include non-GAAP financial measures. You can findreconciliations of certain of these non-GAAP financial measures to the most directlycomparable measures under generally accepted accounting principles within the followingpresentation at our website (http://www.onsemi.com) at the Investors section under the
category Annual Reports/Financial Releases.
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I. Com an Overview
4 May 2012
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Company Highlights
A Market Leader
A premier supplier of high performance, energy efficient, silicon solutions
Diverse end markets: Automotive, Communications, Computing, Consumer,Industrial, Medical, Military & Aerospace
World Class, High Volume, Cost Effective Products
Product portfolio consists of >40,000 products
Broad Customer Base
5 May 2012
Longstanding relationships with leading companies
Successful Acquisition Strategy Driving Revenue, Margin and Cash FlowGrowth
Manufacturing Excellence / Low Cost Production
Track record of manufacturing consolidation & profitability enhancementprograms
Experienced Management Team
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Headquarters: Phoenix, AZ
Employees: ~19,000 globally
2011 Revenue: ~$3.4Bn(1)
Market Capitalization: ~$3.8Bn(2)
Ticker: ONNN
Founded: Spun-off from Motorola 1999, IPO 2000
ON Semiconductor Today
6 May 2012
(1) Based on 2011 annual revenue.(2) Based on closing stock price on May 2, 2012(3) Sector % based on 2011 results
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Market and Applications Focus
The Energy Efficiency Leader
LED Lighting
Automotive
Consumer
7 May 2012
Computing
Smart Grid
Industrial /Medical /
Mil-AeroWired &Wireless
Communications
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Diverse and stable customer base
Long-standing relationships with leading companies
49 of our 50 largest customers have been customers for more than five years
440 direct customers worldwide and 300 indirect customers
SANYO Semiconductor Products Group added 67 new customers, most of
which are Japan based
Leading customer relationships
8 May 2012
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Successful Acquisitions Accelerate Revenue,
Margin and Cash Flow Growth
October 10, 2008December 31, 2007
CPU Voltage and PCThermal
Monitoring Business
January 27, 2010 January 1, 2011
9 May 2012
May 15, 2006
Oregon Fabrication Facility
June 9, 2010November 4, 2009March 17, 2008 February 27, 2011
CMOS Image SensorBusiness Unit
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A Global Leader Emerging
Total Semiconductor
Top 20
2011 2011
Rank Company Name Revenue % Share
1 Intel $48,721 15.7%
2 Samsung Electronics 28,563 9.2%
3 Texas Instruments 13,967 4.5%4 Toshiba 12,729 4.1%
5 Renesas Electronics 10,648 3.4%
6 Qualcomm 10,198 3.3%
7 STMicroelectronics 9,735 3.1%
8 Hynix Semiconductor 9,293 3.0%
9 Micron Technology 7,365 2.4%
10 May 2012
Notes: Source: IHS iSuppli Nov / Dec 11
, .
11 AMD 6,436 2.1%12 Infineon Technologies 5,312 1.7%
13 Sony 5,015 1.6%
14 Freescale Semiconductor 4,408 1.4%
15 Elpida Memory 3,887 1.2%
16 NXP 3,831 1.2%
17 nVidia 3,608 1.2%
18 ON (includes SANYO Semiconductor) 3,442 1.1%
19 Marvell Technology Group 3,393 1.1%20 Panasonic Corporation 3,390 1.1%
Others 109,913 35.3%
Total $311,014 100.0%
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Execution History
ON has grown revenue from $1.3bn in 2004
to $3.4bn in 2011, a 15% CAGR significantly
outpacing 5% revenue growth for the
broader semiconductor industry
Ability to drive revenue growth
Strong free cash flow for debt pay down & Strategic M&A
ON has si nificantl reduced net debt
15%
$1,267
$3,442
$0
$1,000
$2,000
$3,000
$4,000
2004 2011
11 May 2012
Share price outperformance
2007 2008 2009 2010 20112007 2008 2009 2010 2011
and leverage ratios
Track record of successful integrations
ONNN
SOX
(80%)
(30%)
20%
70%
120%
Jan-04 Mar-05 May-06 Jul-07 Oct-08 Dec-09 Feb-11 May-12
Indexedprice
performance(%)
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Global Operations and Support
12 May 2012
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World-Class Logistics
UnitsShipped
ON Semiconductor shipped~6 units per person in theworld during 2011
13 May 2012
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Diverse Segment and Regional Profile
14 May 2012
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II. Financial Summar
15 May 2012
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Financial Highlights
The Company continues to post strong revenue and strengthen its Balance Sheet:*
For 2011, highlights include:
Record total revenues of approximately $3.442 billion, up approximately 49% compared to 2010
Record adjusted EBITDA of $626.7 million
Completed the acquisitions of SANYO Semiconductor in January and the CMOS Image SensorBusiness Unit from Cypress Semiconductor in February
For the first quarter of 2012, highlights include:
Total revenues of approximately $744.4 million which includes:
16 May 2012
Historical ON Semiconductor revenue of approximately $538.5 million
SANYO Semiconductor revenue of approximately $205.9 million
GAAP and non-GAAP gross margin of 32.9%
GAAP net income per fully diluted share of $0.06
Non-GAAP net income per fully diluted share of $0.12
* Based on 4Q11 earnings release provided on February 8,2012 and 1Q12 earnings release provided on May 2, 2012. For non-GAAP measures and reconciliation please refer to our website.
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$1,566
$2,055$1,769
$2,313
$3,442
$0
$1,000
$2,000
$3,000
$4,000
2007 2008 2009 2010 2011
Revenue ($ million) Adjusted EBITDA ($ million)
($MM) ($MM)
Historical Financial Summary
$372$442
$334
$566$627
$0
$200
$400
$600
$800
2007 2008 2009 2010 2011EBITDAMargin (%): 23.8 21.5 18.9 24.5 18.2
Y-o-YGrowth (%): 2.2 31.2 (13.9) 30.8 48.8
17 May 2012
Cash, Equivalents, Short-term Investments ($ million)
($MM)
Net Debt Balance($ million)
($MM)
$275
$459$571
$765*$902
$0
$250
$500
$750
$1,000
2007 2008 2009 2010 2011
$885
$551
$362
$123
$306
$0
$250
$500
$750
$1,000
2007 2008 2009 2010 2011
* Includes Restricted Cash
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VisionVisionON Semiconductor isdedicated to becoming
the premier supplier ofhigh performance energyefficient silicon solutionsworldwide.
ON Semiconductor Mission and Vision
18 May 2012
Mission StatementMission Statement
To provide our customerswith high quality, cost
effective solutions to solvetheir demanding power andsignal management design
challenges.
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19 May 2012
III. Appendix
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