New York Analyst Day. November 12, 2009

Transcription

1 New York Analyst Day November 12,

2 Steve Altman President 2

3 Safe Harbor Before we proceed with our presentation, we would like to point out that the following discussion will contain forward-looking statements from industry consultants, Qualcomm and others regarding industry trends, anticipated future results and product availability, potential market size, market shares and other factors that inherently involve risks and uncertainties, including the rate of development, deployment and commercial acceptance of CDMA- and OFDMA-based networks and technology and fluctuations in the demand for CDMA- and OFDMA-based products, services or applications. These and other risks and uncertainties relating to Qualcomm s business are outlined in detail in our most recent 10-Q and 10-K forms filed with the Securities and Exchange Commission. Please consult those documents for a more complete understanding of these risks and uncertainties. This presentation includes a discussion of "non-gaap financial measures" as that term is defined in Regulation G. The most directly comparable GAAP financial measures and information reconciling these non-gaap financial measures to the Company's financial results prepared in accordance with GAAP have been included at the end of this presentation. DISCLAIMER Nothing presented here today, in any video, slide presentation, demonstration or otherwise, is an offer to sell any components or devices. Certain components for use in the U.S. are available only through licensed suppliers. Some components are not available for use in the U.S. 3

4 Strong Growth in 3G Networks and Subscribers 3G Increased Data Capacity Enabling Compelling Products and Services Million Million Operators Subs Operators Subs Source: Wireless Intelligence, GSMA and CDG, November 2009

5 3G CDMA Global Handset Shipments Expected to Reach Nearly a Billion by ,600 1,400 1,200 1,000 Total Handsets 3G ~6% CAGR ~20% CAGR Shipments* (Millions) Note: 3G includes CDMA2000, WCDMA and TD-SCDMA *Shipments refer to sell-through numbers from Informa and Yankee Sources: Average of Yankee Group : Global Mobile Device Monitor/Forecast (Oct09), Informa Telecoms and Media (Oct 09)

6 Lower Priced WCDMA Handsets a Key Driver of Future 3G Growth Data revenues growth CDMA2000 OEMs by country WCDMA OEMs OEMs Offering Handsets in Each Price Tier 6 Note: Calendar Q2 2009, data derived from licensee reports.

7 Expanding Opportunities Beyond the Handset Commercial Business Consumer Electronics Security/Public Safety Wireless Health Smart Grid Smartbooks Commercial Signage Femtocells Telematics/ Diagnostics 7 Expanding Wireless into Everyday Life Personal Tracking Devices

8 Data Devices Gaining Momentum NEW DEVICE CATEGORIES PROVIDE ADDITIONAL OPPORTUNITY 1,500 (millions) Wireless 3G Device Unit Forecasts Size of market to be determined 1, G Handsets Modem Cards Additional Opportunity 8 Source: 3G Handsets: Average of Informa (October 2009), Yankee Group (October 2009); for Modem Cards: Average of Ovum (Sep09) and ABI (Q3 09)

9 9 Qualcomm Business Model: Technology and Value Chain Enabler

10 Industry s Most Widely Licensed Portfolio Granted U.S. Patents and Pending Applications Granted Non-U.S. Patents and Pending Applications In thousands ~5.1 ~6.5 ~8.9 ~11.6 ~25.8 ~32.8 ~44.0 ~54.1 In thousands Nov'06 Nov'07 Nov'08 Nov'09 Nov'06 Nov'07 Nov'08 Nov'09 10

11 Components of Value Provided by Licensees Lump Sum License Fees Running Royalties Patent Rights Other Value 11

12 Qualcomm's 3G Licenses Cover Multi-Mode Licensed and Royalty-Bearing Under Qualcomm 3G License Agreements Not Covered by Qualcomm 3G License Agreements 3G Subscriber Unit (e.g. CDMA2000, WCDMA or TD-SCDMA) Multi-Mode Subscriber Unit (e.g. CDMA/LTE, CDMA/GSM) Non-3G Subscriber Unit (e.g. Single-mode LTE, Single-mode WiMax) 12

13 Qualcomm s Licensing Base Continues to Grow 27 NEW LICENSEES SINCE JANUARY China ~50 total licensees ~16 new licensees since January 09 4 China RoW Japan / Korea Eur / USA India 16 New Licensees Signed by Region 13

14 Samsung Long-Term Extension 15-year extension and expansion of our license agreement with Samsung for subscriber units and infrastructure equipment US $1.3 billion non-refundable lump sum payments to Qualcomm Samsung will pay ongoing royalties for sales of all CDMA (including TD-SCDMA) subscriber units as well as single mode OFDMA subscriber units (including LTE and WiMAX) 57 patent families assigned to Qualcomm (~300 patents and applications) QCT s customers get rights under Samsung s essential patents Other significant value to be provided by Samsung 14

15 Qualcomm s 4G Licensing Program 10+ years of OFDMA related research and development, including the acquisition of Flarion and its leading OFDMA portfolio A leading contributor to LTE standards 9 royalty-bearing licenses already in place for singlemode OFDMA Includes long-term agreements with top three handset manufacturers (Nokia, Samsung and LG) 15

16 Qualcomm Well-positioned for Today and Long Term in a Growing Industry CDMA2000 Every known current handset supplier is licensed 145+ licensees WCDMA Every known current handset supplier is licensed 105+ licensees TD-SCDMA 105+ licensees Receiving royalties for majority of units sold to date OFDM / 4G (single mode) Top 3 OEMs signed (Nokia, Samsung, LG) 16

17 17 Thank You