Fairchild Semiconductor International,...

www.fairchildsemi.com

1

Fairchild Semiconductor International, Inc.

UBS Global Technology Conference

November 14, 2012

Dan Janson Vice President of Investor Relations


Notes on Forward Looking Statements and Non-GAAP Measures

• Comments in this presentation other than statements of historical fact may constitute forward looking statements and are based on Fairchild’s management’s estimates and projections and are subject to various risks and uncertainties

• These risks and uncertainties are described in the Company’s periodic reports and other filings with the Securities and Exchange Commission (see the Risk Factors section) and are available at http://sec.gov and investor.fairchildsemi.com

• Actual results may differ materially from those projected in the forward looking statements

• Some data in this presentation may include non-GAAP measures that we believe provide useful information about the operating performance of our businesses that should be considered by investors in conjunction with GAAP measures that we also provide. You can find a reconciliation of non-GAAP to comparable GAAP measures at the Investor Relations section of our web site at http://investor.fairchildsemi.com

Recent additions to our website at http://investor.fairchildsemi.com Updated Financials (through current quarter with segment revenue/gross margin breakouts)

• Quarterly Fact Sheet with current quarter highlights

• This investor presentation

http://sec.gov/

http://investor.fairchildsemi.com/

http://investor.fairchildsemi.com/


• Wireless Convergence and Energy Efficiency mega-trends

• Power silicon content grows faster than end market sales – premium paid for efficiency

• Segment structure increases our apps knowledge and ability to sell solutions

• Large customers dominate these markets and align well with Fairchild’s strengths in SCM, global presence and wide product breadth

Markets That Drive Our Business

www.fairchildsemi.com 4

Source: Fairchild internal estimates – Effective 2011, data segmented using industry standard categories. All data in this chart is derived from this approach

• Industrial & Appliance, Mobile and Auto now drive 74% of total sales vs 45% in 2007

• Shift in end markets supports better margins and more “sticky” design wins

Fairchild Today… Shifting End Market Exposure for Improved Margins & Growth

28% 26% 26% 26% 24% 28% 28% 30% 26% 25% 26% 29% 31% 30% 30% 33% 36% 33% 32% 29% 33% 35% 35%

33% 35% 33% 34% 32% 29% 31% 30% 35% 35% 37% 35% 34% 35% 34% 29% 24% 25% 23% 20% 17% 18% 19%

13% 12% 14% 14% 15% 16% 18% 17% 20% 18% 16% 16% 13% 14% 16% 18% 18% 18% 22%

25% 25% 23% 29%

21% 22% 23% 22% 24% 21% 18% 18% 13% 17% 16% 15% 16% 15% 14% 12% 14% 15% 14% 15% 14% 13% 7%

5% 5% 5% 5% 5% 5% 4% 5% 5% 5% 5% 5% 6% 6% 6% 7% 8% 9% 9% 10% 11% 11% 10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Q1 12

Q2 12

Q3 12

Industrial & Appliance Consumer Mobile Computing Auto


Peer Benchmarking Q4 Sales Guidance

-14.0% -12.0% -10.0% -8.0% -6.0% -4.0% -2.0% 0.0%

MXIM

FCS

NXPI

AOSL

FSL

LLTC

ONNN

ISIL

IRF

TXN

Average

MXIM FCS NXPI AOSL FSL LLTC ONNN ISIL IRF TXN Average

Q4 Guide -2.1% -5.2% -6.0% -6.0% -6.6% -7.4% -7.5% -9.5% -12.0% -12.0% -7.4%

Guide -2 to -8%


Fairchild’s Mobile Group provides a broad array of Smartphone solutions, flexible manufacturing capabilities and a growing IP position

Mobile High-Speed Logic Product Areas USB Switches (HS, 3.0), USB PHY, Integrated USB Switches, MHL Switches, MIPI Switches

Mobile Logic Product Areas Dual SIM, Reset Timer, Tiny Logic, GPIO Expander, Translators

Mixed Analog Product Areas RF DC/DC, IntelliMAX™, Audio Amplifier, Audio Switch, Standards Switch, Chargers, LED Driver, Audio Jack Detection, Dual MIC Switch, Comparators

Discreet Product Areas Super-Junction MOSFETs, Medium Voltage MOSFETs, Diodes, Optocouplers

Fairchild Mobile Products


Switching Battery Charger ICs

FAN5400

2.5W

Energy efficient charging reduces charge times of Smart Phones by up to 50%

1.2W

USB POWER

2.5W 2.3W

USB POWER

Linear charging IC (conventional solution)

4 - 7 Hours

2 - 3.5 Hours

Switching DC/DC based charging IC

Li-ion battery

• 38% adoption today to 85% in 2014 • Over 40% CAGR


• Industry’s highest power density • Best switching performance • Reduce Component Costs • Lowest board space consumption • Low conduction loss enables highest efficiency • Advanced packages for minimal size, highest reliability and maximum thermal performance.

Chargers / Adaptors / Power Supplies • Tablet charger (5W~10W moving to >10W) • Notebook Adaptor (50W~100W) • All-in-one PC power supply (100W~500W) • High-end PC power supply (500~1kW)

• Flyback CCM, QR, PSR controllers and integrated MOSFET switchers • Synchronous Rectifier (SR) controllers and

integrated MOSFET combo • Resonant LLC controllers and MOSFET

integrated combo

Power Conversion Industry-Leading Efficiency and BOM Costs

Fairchild provides a comprehensive portfolio of high performance Power Conversion products. Our patented technology provides exceptional performance AND the lowest BOM costs…


USB Switches • 1:1, 1:2, 1:3, 1:4

• <4pF CON

• μA power consumption

Multimedia Switches • USB switches with optimized

paths for multiplexing Audio, UART, HD (MHL)

Detection Switches • Integrated ID/Accessory

Detection and automatic configuration switches

• Stand-alone BC1.2 Detection

Expand the capabilities of the USB interface

USB Switches


6mm

5mm

HS

LS

Standard Solution: 60mm2

50 % footprint area savings

PowerStage Solution: 30mm2

6mm

5mm

HS

LS

6mm

5mm

HS

LS


LS


6mm

5mm

HS

LS


S08 3mm

3mm

HS

LS

HS

LS




25A Buck Converter Solution



Solutions for range of output load currents Valuable board space savings in footprint area Multiple form factor solutions for optimized design

Power Stage MOSFETs - Space savings


3G/4G Smart Phone

BasebandChipset

3G PA

470nH

1

10

64

Li-Ion Battery

11

RF Transceiver

VOUT_SNS

SW

GND

PVIN

EN

VCONDAC

RF_IN

P_DET

3GPIO

FAN5902/4/5

+ 200 Minutes More Talk Time + 140 Minutes More Access Time 34% adoption today to 85% in 2013 Over 40% CAGR

Runs 50% Cooler

Multi-Band RF Power Management

Switching Regulator for RF Saves Power, Extends Battery Life


What is a Smart Power Module (SPM®)?

Expertise to integrate analog, discrete and high voltage technology together

Enhances Protection

Facilitates Manufacturing

LVIC HVICs IGBTs/FRFETs

Integration of discrete components

SPM integration, enhances productivity while simplifying manufacturing

SPM’s built-in HVIC and LVIC with protection circuit

SPM optimizes driving characteristics for built-in power devices

Optimizes Design

• Reduced total system cost • Reduced development time • Easy management • Optimized control flexibility • Higher reliability • Board space savings

Summary

LVIC HVIC

6pcs of IGBT 6pcs of FRD

NTC

3pcs of B/D

FRDIGBT

Ceramic (Isolation material)

IC

EMC(Epoxy Molding Compound)

Al WiringCu Wiring Lead Frame

Adhesive

B/D

Peripherals -Bootstrap diodes -NTC thermistor


Application: Automotive Power Modules for Electric Power Steering

• EPS/EHPS: • Saves fuel (up to 7%) • Improves performance • Simplifies mechanical design Increasingly adopted in new vehicles - conventional as well as EV/Hybrid

• APM Modules help to: • Optimize power output • Improve reliability • Ease design through integration of

components • Ease installation due to compact

design


14

Finance Overview


Highlights of the Quarter – Q3 2012

Sales were $359m, down 1% QoQ and 11% YoY. Solid sales growth in mobile and mid-voltage offset by weakness in other end markets and under-shipping to consumption. Revenue also included a $3m insurance recovery which was included in original guidance assumptions

Reduced distribution channel inventory by $8m QoQ or more than 2 points of headwind to sales…down to 10 WOI

PCIA sales were up 2% QoQ due to new programs ramping for power conversion, especially into the mobile market

MCCC sales were down 4% QoQ due to weakness in computing and tier 2 mobile plus commodity notebook mix out

Gross margin was a point to 33.5% due primarily to richer mix and lower variable compensation

Increased internal inventory $ by 1% to support higher mobile demand…DOI at a comfortable 92 days

Pricing was down <2% QoQ…expect similar trend in Q4

Utilization decreased to below 80%...expect further decline in Q4

Lead times are short with mobile analog and mid-voltage the longest


Q4 Forward Guidance Provided at Q3 Earnings Call

• Sales expected to be $330 – 350m…current scheduled backlog nearly sufficient to cover the low end of this range

• Gross margin expected to be 30 – 32% due primarily to lower factory loadings and 8” fab startup costs in Korea

• R&D and SG&A forecast at $88 - 90m

• Adjusted tax rate forecast to be between 15% +/-3%

• Additional points from the earnings call

• 8” start up cost profile

• Variable compensation trend in OPEX

www.fairchildsemi.com Company Confidential

Adjusted Revenue & GM%


Balance Sheet Improvement Disciplined Asset Management

• Q3 balance sheet remains very strong: • Cash and investments exceed debt by $114m • Debt remains at lowest level in company history at $300m • Internal inventory at a comfortable 92 DOI • DSO decreased to 41 days • Days of payables decreased to 45 days

• FCF was -$18m due to increases in DSO, payables and capex • Primary focus remains investing in our business

• Small MEMS acquisition in Q4 2010 • Small SiC acquisition in Q1 2011 • Capex for conversion to 8” mfging and new products…$160 –

165m capex in 2012 decreasing to about $100m in 2013 • Repurchased shares to offset equity compensation dilution


Debt Composition & Trend

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1997 1999 2001 2007 2008 2009 2010 2011

Drawn Revolver Term Loan Convert High Yield


20

Net Debt & Interest Trend

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

-$700.0

-$600.0

-$500.0

-$400.0

-$300.0

-$200.0

-$100.0

$0.0

$100.0

$200.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Q1 2012

Q2 2012

Q3 2012

Net Cash Interest % of Revenue


21

Fairchild Semiconductor International, Inc.

UBS Global Technology Conference

November 14, 2012

Dan Janson Vice President of Investor Relations

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