Welcome to CES Rick Bergman, President & CEO
Disclosure This presentation contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Act of 1934, as amended. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business, and can be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements may include words such as expect, anticipate, intend, believe, estimate, plan, target, strategy, continue, may, will, should, variations of such words, or other words and terms of similar meaning. All forward-looking statements reflect our best judgment and are based on several factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control. Such factors include, but are not limited to, the risks as identified in the Risk Factors, Management s Discussion and Analysis of Financial Condition and Results of Operations and Business sections of our Annual Report on Form 10-K for the fiscal year ended June 24, 2017, and other risks as identified from time to time in our Securities and Exchange Commission reports. Forwardlooking statements are based on information available to us on the date hereof, and we do not have, and expressly disclaim, any obligation to publicly release any updates or any changes in our expectations, or any change in events, conditions, or circumstances on which any forward-looking statement is based. Our actual results and the timing of certain events could differ materially from the forward-looking statements. These forward-looking statements do not reflect the potential impact of any mergers, acquisitions, or other business combinations that had not been completed as of the date of this filing. 2
Adding Intelligence to the Edge And Delivering Richer Human Interface 3
Boundless Opportunities in Consumer IoT Synaptics Annual Revenue per Market Segment ($M) 2,000 Consumer IoT Market Segment TAM End Units (Millions) 3,000 1,500 1,000 Smartphones 2,000 500 Revenue 1,000 Notebook PCs 0 Revenue FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E FY19E FY20E FY21E 0 Source: IHS, IDC & internal estimates IHS Markit, IoT Devices & Connectivity Intelligence Service, May 2017 Bars represent Synaptics annual revenue per market segment Lines represent market segment TAM 4
Latest Acquisitions Expand Addressable Market Auto 6% PC 11% CY2020 New Consumer IoT Products 24% PC 8% $7.9B 34% Growth Auto 5% $10.6B Mobile 83% Mobile 63% PRE-ACQUISITIONS POST-ACQUISITIONS Source: IHS, IDC & internal estimates; excludes Apple units for Touch and Fingerprint market 5
Diversify Customer Base SYNAPTICS CONEXANT MARVELL MULTIMEDIA 6
Synaptics Winning Strategy 1 SCALE & TECHNOLOGY 2 DIVERSIFICATION & GROWTH MOBILE PC AUTOMOTIVE AR / VR IoT 3 LEVERAGE TO ADJACENT MARKETS 7
Growth Priorities CHIP-ON-FILM (COF) OLED TDDI SMART HOME AUTO DISPLAY SOLUTIONS IN-DISPLAY FINGERPRINT CONSUMER IoT 8
OLED Inflection Touches All of Our Technologies FINGERPRINT TOUCH DISPLAY 9
OLED Display Capacity Build-up 2019 Growth Opportunity Mu 1,000 800 Others 38% 600 400 200 0 2017 2018 2019 2020 2021 Source: IHS, internal estimates Yielded 5.5 Phone Capacity per Year 10
Synaptics Now Sampling Two New ClearView OLED Display Driver ICs OLED DDICs Support Extra Long 20:9 Infinity Displays, Notches and Rounded Corners R66451 WQHD+ R66455 Up to 20:9 aspect ratio Supports flexible and rigid displays 10 design-ins with China/Japan LCMs Initial revenue expected 1H CY18 FHD+ 11
Evolution of Unlocking Phones PIN Draw Swipe Capacitive Facial In-Display 12
Synaptics Brings World s First In-Display Fingerprint Sensors for Smartphones to Mass Production with a Top Five OEM Clear ID Optical Sensors are Faster, More Convenient and More Secure than Alternative Biometrics 13
In-Display Fingerprint INFINITY DISPLAYS ARE HERE CLEAR ID ANOTHER WORLD FIRST TRUE INFINITY EXPERIENCE 14
LCD Growth Opportunities TDDI SUCCESS INFINITY DISPLAY FOR LCD NEW OPPORTUNITY CHIP-ON-FILM 15
COF Creates a New Growth Opportunity in LCD % 100% 75% Great opportunity for COF in both TDDI and DDIC 50% 25% 0% 2017 2018 2019 2020 2021 COF COG TDDI COG DDIC Source: Internal estimates 16
Millions of Units Growth Priority: Consumer IoT SAM CAGR 23% 1,500 AUTO 1,000 SMART HOME 500 0 CY17 CY18 CY19 CY20 CY21 Source: IHS Q1-2017 Devices and Connectivity Intelligence, Synaptics Internal Estimates 17
Enabling the Intelligent Edge with Smart Devices 18
Diverse Customer Base 300+ Customers 18% Customer A 62% 10% 10% Customer B Customer C Source: FY18 Revenues 19
Synaptics Consumer IoT Platform Highly differentiated solutions Deep ecosystem partnerships Leadership in technology convergence Source: IHS Q1-2017 Devices and Connectivity Intelligence, Synaptics Internal Estimates 20
Millions of Units Growth Priority: Automotive SAM CAGR 16% 400 200 0 CY17 CY18 CY19 CY20 CY21 Source: IDC & internal estimates 21
Accelerating Customer Base in 2020: Tier-1s and OEM Driven 22
Upwardly Revised Auto Revenue Target 4X 2X $40M Designed -In Designed -In FY17 FY20 FY22 23
Synaptics 3.0 Winning Formula 1 Transformation Strong Sustainable Business Model Differentiated Technology Portfolio 2 Diversification Customer Product 3 Growth Core Business Consumer IoT 24
CES Booth Preview Vivo production phone with in-display fingerprint Voice processing optimized for automotive cabin Hybrid active noise cancellation Whisper technology for headsets Digital assistant concept prototype using Synaptics technology Far-field voice solutions Consumer instant printing Voice controlled set-top-box 25
Advancing the Human Interface 2018 2017 Synaptics Incorporated 26