Qualcomm Incorporated · NASDAQ:QCOM
Qualcomm — Merger or Acquisition (January 2016)
11 slides from Qualcomm's merger presentation, January 2016
Slide 1: Qualcomm and TDK Joint Venture
Qualcomm and TDK Joint Venture
Slide 2: Note regarding forward-looking statements
Note regarding forward-looking statements This presentation contains forward-looking statements that are subject to risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, actual results could differ materially from those expressed or imp
Slide 3: Qualcomm and TDK agree to form joint venture
Qualcomm and TDK agree to form joint venture Providing leading-edge RF front-end solutions Enable delivery of RF front-end (RFFE) Draw upon Qualcomm’s expertise in advanced modules and RF filters in fully-integrated wireless technologies and TDK’s capabilities in systems for mobile devices and fast-
Slide 4: RFFE: A key catalyst for growth
RFFE A key catalyst for growth $18B Opportunity by 2020* 13% ’15–’20 CAGR * 2020 estimated RFFE market opportunity according to Mobile Experts (December 2015) 4
Slide 5: Solving RF Complexity
Solving RF Complexity Number of bands 49 3 5 9 16 2G Early 3G Early 4G 4G 4G+ Interband CA TDD 3G Today Multimode Today Combos Intra-band CA FDD Module solutions to address growing RFFE complexity ─ delivering at global scale, accelerated timeline, greater ease of design for OEMs Source: 3GPP 5
Slide 6: Filter content in mobile devices to grow dramatically
Filter content in mobile devices to grow dramatically Band proliferation biggest contributor to RFFE growth • New LTE spectrum ~50 More bands ~100 • Carrier aggregation 4x4 MIMO filters filters • Global smartphones • MIMO 15 Bands Filter content is the fastest growing segment in RF front-ends 2015 2
Slide 7: Transaction Provides Key Assets to Complete RFFE Portfolio
Transaction Provides Key Assets to Complete RFFE Portfolio “From digital to the antenna” Envelope tracker Antenna PAMiD Module FEMiD Module Modem Power Filter, Antenna Antenna + amp duplexer switch tuner Transceiver Current QTI products Strengthened / enabled by JV Current TDK products Ideally posit
Slide 8: Filters and Modules driving RFFE growth
Filters and Modules driving RFFE growth $18 B $0.6 Other $1.5 Switches $4 PA 13% CAGR $10 B $1.0 RFFE $1.0 Opportunity $4 $13 Filters ($bil) $5 2015 2020 73% 80% Modules (% of total) Source: “RF Front End for Mobile Devices”, December 2015 update, Mobile Experts Other = LNA and tuning 8
Slide 9: Strongly positioned to succeed in RFFE
Strongly positioned to succeed in RFFE • Expertise and production capacity in all 3 major filter types (SAW, TC-SAW, BAW) Adds an important piece to • Expertise in module design and testing Qualcomm’s RF360™ portfolio capabilities • A leading supplier of modem, transceivers, AP, and PMIC QTI brings
Slide 10: Deal elements
Deal elements • QGT* to own 51% of JV and have control of JV operations. EPCOS AG (a wholly-owned subsidiary of TDK) to own 49%. Certain other assets to be acquired by Qualcomm affiliates • QGT has option to acquire remaining interest, and EPCOS AG has an option to put its remaining interest, 30 mon
Slide 11: Thank you
Thank you Follow us on: For more information, visit us at: www.qualcomm.com & www.qualcomm.com/blog Nothing in these materials is an offer to sell any of the components or devices referenced herein. ©2013, 2015 Qualcomm Technologies, Inc. and/or its affiliated companies. All Rights Reserved. Qualcom