On Semiconductor Corporation · NASDAQ:ON
On Semiconductor — onsemi — Merger or Acquisition (August 2021)
8 slides from On Semiconductor's merger presentation, Aug 25, 2021
Slide 1: onsemi to Acquire GT Advanced Technologies (GTAT)
onsemi to Acquire GT Advanced Technologies (“GTAT”) August 25, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation, including, among others, the expected closing of the transactions and the potential effects thereof, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements ar
Slide 3: GTAT Overview
GTAT Overview Business model based on supplying Outstanding Silicon Carbide (SiC) SiC crystal to downstream partners crystal growth technology specializing in wafering, polishing and subsequent fabrication Key material for next-generation semiconductors that significantly improve SiC boule Since Mar
Slide 4: Strategic Rationale
Strategic Rationale A building block to fuel growth and accelerate innovation in disruptive 1 intelligent power technologies, consistent with the strategy and mission announced at the 2021 Analyst Day Secure and grow supply of SiC to meet rapidly growing customer 2 demand for SiC-based solutions in
Slide 5: onsemi's Platform Provides a Launchpad for Growth
onsemi’s Platform Provides a Launchpad for Growth GTAT Capabilities onsemi Platform Benefits Complementary R&D capabilities with Leading crystal development expertise in key markets will R&D capabilities accelerate GTAT’s development efforts Outstanding SiC technology that is Resources and capital t
Slide 6: EV Penetration Will Accelerate SiC Adoption
EV Penetration Will Accelerate SiC Adoption EV units as percentage of global auto sales 62% % of EV of global auto sales 57% 51% 45% 39% 34% 29% 24% 18% 13% 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 • Electric vehicles estimated to increase to 62% of vehicle sales by 2030 and 63 million vehi
Slide 7: Accelerated Investment Drives Value Creation
Accelerated Investment Drives Value Creation Shareholder Value R&D Investment Capex Investments Creation • Invest in R&D to • Substantial capital • Expect significant investment to further accelerate development expand GTAT’s shareholder value of 200mm substrates production capabilities at creation
Slide 8: Transaction Summary
Transaction Summary Purchase Price $415 million in cash ▪ No impact expected to onsemi’s target financial model for 2025 Financial Impact ▪ Accretive to non-GAAP EPS within a year after close, marginally dilutive in immediate term Financing Cash on hand and revolving line of credit ▪ Expected to clo