EX-99.12 12 dex9912.txt CORPORATE PRESENTATION Exhibit 99.12 Header of all slides [Logo] Microsemi more than solutions - enabling possibilities Analyst Day | 11/8/2001 | http://www.microsemi.com Slide 1 Analyst Day Overview Presentation Slide 2 Disclaimer . Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of Microsemi Corporation. . We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We refer you to the documents the company files from time to time with the Securities and Exchange Commission, specifically, the Company's most recent Form 8-K, 10-K and Form 10-Q. . These documents contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward -looking statements. Slide 3 Company Overview . Semiconductor manufacturer - Founded in 1960, core strengths developed in military/aerospace and medical markets . Executing on 3 Point Strategy - System engineered solutions, increasing gross margins, leveraging intellectual property . Operational improvements - New management team improving bottom line . Diverse market strategy provides stability - Broad customer base, none greater than 4% of revenues . Increasing R&D - Developing our Future - Focus on 5 key Circuit Solutions that are fueling company growth . Strong Financial Results - Stability in rough markets, long term earnings history, improving margins, strong balance sheet Product Mix FY02E Power Management 29% Transient Protection 16% Power Conditioning/Discretes 38% RF and Optoelectronics 17% Top 20 OEM Customers (FY01) Rank Customer Market/Application ---- -------- ------------------- 1 Boeing Satellites/Military 2 Guidant Medical Implantables 3 Seagate Disk Drives 4 Motorola Mobile Phones 5 Alcatel Fiber Optics/Satellites 6 BAE Systems Military/Aerospace 7 Rockwell Military/Aerospace 8 Lockheed Martin Satellites/Military 9 Robert Bosch GMBH Satellite Communications 10 Agilent Telecommunications 11 Dell PC/Peripherals 12 Mitsubishi Mobile Phones 13 Loral Space Satellites 14 Siemens AG PC/Peripherals 15 Honeywell Military/Aerospace 16 Tecnologica Satellites 17 Delco Automotive 18 St. Jude Medical Medical Implantables 19 Raytheon Military/Aerospace 20 Solectron Various Slide 4 Company Strategy . Develop and Market System Engineered Solutions - Work with customers to develop "must have" products - Develop alliances/reference design wins . CREE, Nitronex, APTI, Intel, Intersil, Atheros - Re-utilize packaging IP to enhance performance . Powermite as Power Diode or LED package . MMSM as WLAN switch or LED package - Combining application specific semiconductor processes . Low voltage silicon (0.7V chips), InGaP (HBT Amps), InP (OC192/768 detectors), InGaN (Blue, Green, and UV LEDs), SiC (Schottkys) . Mix and match depending on end application . Increase Gross Margins (Goal of 50% or better) - Consolidation of business units, focus on utilization - Introduce higher value added/higher gross margin products . Experts at reapplying Intellectual Property - Repositioning Core Competencies and Circuit "know how" into multiple market segments and applications [Graphics of four PDA's] [Picture of discrete component] [Picture of discrete component] [Picture of lab technician] [Sharp Logo] [intersil Logo] [Atheros Communications Logo] [Intel Logo] [Harison Logo] Slide 5 Operational Improvements . New Management Reshaping company - Chief Operating Officer appointed - VP of Human Resources appointed - VP of Quality/Business Process Development appointed . Improved Incentive programs - Now focused on operating income improvements - Broader employee stock option program . Utilization Improvements and Consolidations in progress - Florida and Hong Kong operations closed in FY01 - Operational consolidations planned . Easy to execute, have significant positive financial impact, under our control - not market or application dependent Slide 6 Diverse OEM Customer Base 14.8% Mobile connectivity [graphic of mobile telephone] Qualcomm, Samsung, Motorola, Compaq, Palm, Mitsubishi 12.0% telecom [graphic of pbx operator] Alcatel, Ericsson, Nokia, Nortel 13.6% industrial [graphic of welder] Coleman, PowerOne, Recoton, Magnatek 2.2% automotive [graphic of computer inside a vehicle] Visteon, Becker, VDO, Clarion 11.5% computers/peripherals [graphic of laptop computer] Dell, Seagate, Gigabyte, Compaq, IBM, Fujitsu 10.1% medical [graphic of Chest X-ray] GE Medical, Guidant, St. Jude, Biotronik, Medtronic, InSonus 35.8% mil/aerospace [graphic of Astronaut in space] Matra, Raytheon, General Electric, Bosch, Lockheed Martin, Boeing . Top 100 customers 70% Sales, none greater than 4% . North America 70% . Europe 20% . Asia 9% . ROW 1% . OEM 60% . Distributors 36% . CMs 4% Slide 7 Extensive product portfolio Product Group RF/Opto(17%)
Breakdown 0% 48% 50% 2% I R T P D C F r h e s a o t (P A D n t e o m i s o c w p o i t e s) d s o r e t r s o s Markets Applications r ------------- --------------------------- s Mobile Mobile Phones, 2-Way Radios 50% x x x x Connectivity PDAs, Web Tablets 50% x x Base station/POTs 28% x x Wireless LAN 2% x x Telecom Set-top box 30% x x Fiber Optics 40% x x AutoPC/Navigation 98% x x Automotive Audio 2% Commercial Aircraft 10% Military Communications 10% Military/ Military Aircraft 10% x x Aerospace Missiles 10% x x Communication Satellites 40% x x x Military Satellites 10% Other 10% Medical Heart Defibrillators/Pacers 80% x x MRI/Ultrasound/Diagnostic 13% x x x Hearing aids 5% Computer/ PCs/Laptops/Servers 50% x Peripheral Disc drives 30% Audio equip 5% Monitors 5% Industrial/ Semi-cap/RF Generators 15% x x Commercial Power Supplies 40% x Pet Electric Fence Sys. 5% x x
Power Management (29%)
Breakdown 20% 2% 40% 15% 15% 2% 5% 1% L P A P L D S M P M M T i r u r i C C e r i o E g o d o n : S d o l/ d C h d I d e D I i d A u t u o u a C c u e l I i c c r a c r e C n t t l t o s s g s s P s W M Markets Applications s -------------- -------------------------------------- Mobile Mobile Phones, 2-Way Radios 50% x x x x Connectivity PDAs, Web Tablets 50% x x x x Base station/POTs 28% x x x Wireless LAN 2% Telecom Set-top box 30% x x x x Fiber Optics 40% x x x AutoPC/Navigation 98% x x x Automotive Audio 2% x x x x Commercial Aircraft 10% x x Military Communications 10% x x Military/ Military Aircraft 10% Aerospace Missiles 10% x x Communication Satellites 40% x Military Satellites 10% Other 10% x Medical Heart Defibrillators/Pacers 80% x x MRI/Ultrasound/Diagnostic 13% x x x Hearing aids 5% x x Computer/ PCs/Laptops/Servers 50% x x x x Peripheral Disc drives 30% x x x Audio equip 5% x x Monitors 5% x Industrial/ Semi-cap/RF Generators 15% x x Commercial Power Supplies 40% Pet Electric Fence Sys. 5% x
TVS(16%) Breakdown 50% 20% 0% 30% E L E Z S i M e D g I n h e t r i s n Markets Applications g -------------- ----------------------------- Mobile Mobile Phones, 2-Way Radios 50% x x x Connectivity PDAs, Web Tablets 50% x x Base station/POTs 28% x x Wireless LAN 2% x Telecom Set-top box 30% x x x x Fiber Optics 40% x x AutoPC/Navigation 98% x x x Automotive Audio 2% x x Commercial Aircraft 10% x x Military Communications 10% x x Military/ Military Aircraft 10% x x Aerospace Missiles 10% x x x Communication Satellites 40% x x Military Satellites 10% Other 10% x x Medical Heart Defibrillators/Pacers 80% x x x MRI/Ultrasound/Diagnostic 13% x x Hearing aids 5% x Computer/ PCs/Laptops/Servers 50% x x x Peripheral Disc drives 30% x Audio equip 5% x Monitors 5% Industrial/ Semi-cap/RF Generators 15% x x Commercial Power Supplies 40% x Pet Electric Fence Sys. 5% x Discrete(38%) Breakdown 30% 2% 0% 25% 35% 8% P M S D S T o o i i c r w s c o h a e f d o n r e e t s m t s t i i k s t y t e s o Markets Applications r ------------- -------------------------- s Mobile Mobile Phones, 2-Way Radios 50% x x Connectivity PDAs, Web Tablets 50% x x Base station/POTs 28% x x x x x Wireless LAN 2% Telecom Set-top box 30% x Fiber Optics 40% x x AutoPC/Navigation 98% x x Automotive Audio 2% Commercial Aircraft 10% x x x x x Military Communications 10% x x x x Military/ Military Aircraft 10% x x Aerospace Missiles 10% x x x x x Communication Satellites 40% x x Military Satellites 10% Other 10% x x x x Medical Heart Defibrillators/Pacers 80% x x x x MRI/Ultrasound/Diagnostic 13% x x Hearing aids 5% x Computer/ PCs/Laptops/Servers 50% x Peripheral Disc drives 30% x Audio equip 5% Monitors 5% Industrial/ Semi-cap/RF Generators 15% x x x Commercial Power Supplies 40% x x x Pet Electric Fence Sys. 5% x x Slide 8 How Do we Manage this Diversity? . Teamwork (Marketing, Systems Engineering, Design) . Systems in place to support live collaborative cross divisional communication - Customer/Resource Management tool . On going training programs - what are our products, and who uses them . Dollars per Widget Awareness - Incentive programs to drive cross divisional selling . Teaching business units that working together we can leverage our breadth of product and application expertise - Teamwork delivers results . The value of an increased stock option program Slide 9 MicroNET(TM) - our InfoSys tool . Used for tracking activities in collaborative live environment - globally - Leads - Opportunities - Product Availability - Product Design Status - Quote/Turns Activity - Collaborative Forecasting - Order Status - POS info - Market Data - Competitor Info . Demo Slide 10 Developing Microsemi's Future . Focus on high growth, high margin product opportunities - 8X min Return on R&D over life of product . R&D increasing - 2.2% in FY99 - 6.4% in FY01 - Estimated 8% in FY02 . New part roll out increasing - 4 Parts introduced in FY01Q3 - 8 Parts introduced in FY01Q4 - Estimate 40-50 products in FY02 . Optimizing Margin Mix of Product Portfolio . 5 Key Circuit Solutions to Fuel MSCC Growth - Upside estimate of new products developed/introduced in FY00/FY01 Base Business + new Products MSCC Fiscal Year FY01E FY02E FY03E FY04E Protection 0 1 4 8 Temperature 0 1 3 8 Power 5 to 6 13 46 83 Sound 1 7 15 29 Light 14 to 15 22 48 93 Base Business 223 to 226 237 277 304 Total 243.2 to 248.2 281 393 525 NOTE: Amounts shown are estimates of projected revenue growth from new products. These estimates represent the average of the range of company estimates developed from external market research data, as well as internal company market and product forecasts. Amounts could change due to changes in market conditions, customer acceptance and other factors, whether known or unknown to the company at this time. Please refer to Microsemi Safe Harbor Statement. Slide 11 Products (Tactical/Strategic)
Field FAEs Strategic Product System Design Sales Marketing Development Engineering Engineering ----------- ------------- ----------------------------- ----------------------------- Products/Mgmt Jim Gentile Gentile/Lynch Manuel Lynch Kelly Jones Manageing Light CCFL TFSE R Holiday G Henry E Campos LED D TFSE S Litchfield P Pickle G Henry S Kelly/Campos Lasers i TFSE G Hartman P Okada P Okada Photodetector r TFSE G Hartman T Vu Dr Shin e Managing Sound c J Jiang F Lynch Low Power (AudioMITE) t J Weiland O Anderssen High Power (Audio Max) M Tanaka J Jiang G Batelman Managing Power M Lynch RF Ics + R Desai (UK) E Volk Dr Kim Dr Qian RF Discretes B Doherty (US) K Philpot K Philpot R Preston DCDC R PK Lee (Asia) P Pickle S Brooks (various) Military e ------ (various) (various) (various) p Managing Temp s A Popp Passive TFSE (various) S Kelly S Kelly Active TFSE G Hartman S Brooks (various) Protecting Circuits K Walters A Popp ESD M Clark M Clark C Poliakoff EMI A Popp V Barkadorian V Barkadorian Lightning M Clark C Poliakoff C Poliakoff