Spreadtrum Communications, Inc....Spreadtrum may file with the SEC from time to time, including on...

Innovation changes the futureInnovation changes the future

www.spreadtrum.com 1

b

— Technology for the Mobile World

Spreadtrum Communications, Inc.

Investor Presentation

2Q13

China · United States · Korea · India · Taiwan



Safe Harbor Statement

This presentation contains forward-looking statements that involve

risks and uncertainties. All statements other than statements of

historical facts are forward-looking statements. These statements

involve known and unknown risks, uncertainties and other factors that

may cause our actual results, performance or achievements to be

materially different from those expressed or implied by the forward-

looking statements. Please see the information contained in

Spreadtrum's filings with the U.S. Securities and Exchange

Commission (the "SEC"), including the registration statement on Form

20-F filed on April 26, 2013, especially the sections under "Risk

Factors" and "Management's Discussion and Analysis of Financial

Condition and Results of Operations," and such other documents that

Spreadtrum may file with the SEC from time to time, including on

Form 6-K. Spreadtrum assumes no obligation to update any forward-

looking statements, which apply only as of the date of this

presentation.



Company Overview

Market & Products

Financial Highlights



Largest Independent Wireless Platform

Company in Mainland China

2005, BeijingR&D Center 2010, Tianjin

R&D Center

2001, ShanghaiHeadquarters2010, India

2005, Shenzhen 2011, Taipei

2009, Korea 2001, San DiegoR&D Center2012, Chengdu

• Fabless semiconductor and wireless platform company

• Founded 2001, listed on NASDAQ in 2007 (SPRD)



In-House Core R&D, Turnkey Business Model

ProtocolStack

Multimedia

SoftwarePlatform

RF ChipBaseband Chip

Internet

Delivered as turnkey platformFast time to market, lower development costs



China Former President Hu Jintao visited Spreadtrum Shanghai office in 2010

• Most mature TD-SCDMA technology

• Turnkey solutions map to handset maker needs

• Close relationship with government and China operators

• Local to handset customers and supply chain –geographically and culturally

Local China Advantage



0

50

100

150

200

Revenue (US$ millions)

Robust Revenue Growth

(Million $)



2009-2012: Share Gains in High Growth Markets

12%

56%

0

20

40

60

80

100

2009 2012

Mil

lio

ns

of

un

its

TD-SCDMA BB Market

10%30%

0

200

400

600

800

2009 2012

Mil

lio

ns

of

un

its

GSM/GPRS/EDGE BB Market(Asia BB vendors)

Spreadtrum Others

#2 Supplier to Export Markets

Source: IHS iSuppli, Spreadtrum

#1 Supplier to China’s TD-SCDMA Market



Spreadtrum TD-SCDMA Baseband Modem

Shipping in Flagship Handsets

SAMSUNG GALAXY S II / S IIISAMSUNG GALAXY Note / Note II

HTC One XTHTC Desire VT

Huawei Ascend P1 TD-SCDMA

Best-in-class performance for premium smartphones



Expanding Tier One Business

GSM Platform

(SC6530 / SC6531)TD-SCDMA Modems

(SC8802 / SC8803)

Smartphone Platform

(SC8810 / SC6820)



Best-in-class performance for premium smartphones

� Samsung, HTC, Huawei, etc.

Broad Customer Footprint,

Solutions for Premium and Low-Cost Handsets

Best performance/cost

� 12 out of top 15 OEMs in domestic China

� 20 out of top 20 design houses

� Both China and global markets

Premium

(modem products)

Mid- to High-end

(dual-core, quad-core smartphone products)

Entry-level

(single-core smartphone, 2.5G products)

}

}



Advancing in Process Technology,

Smartphone Platforms

Before 2011 2013

Pro

cess

Ro

ad

map

2011/2012

2G0.152um

3G40nm

Multi-coreSmart Phone

Low-endSmart Phone

40nm

LTE28nm



Expanding Wireless Technologies

2011 2013

Te

ch

no

log

y

2012

FDD-LTETDD-LTE

TD-SCDMAWCDMA

GGEMultimode

TD-SCDMA

/GGEDualSIM

TDD-LTETD-SCDMA

GGE

GSM/GPRS

QuadSIM

WCDMATD-SCDMA

GGEDualSIM

EDGEGSM/GPRS

DualSIM

WCDMA/GGE21Mb

TD-SCDMA

/GGEDualTalk



Company Overview

Market & Products




Importance of China in Global Handset Ecosystem

� Single largest smartphone market in the

world

� Largest operator network in the world –

China Mobile > 700M subscribers

� Ongoing shift to China as center for IC

design, handset design and manufacturing



2013 in TD-SCDMA: Growing Smartphone

Shipments as Market Doubles

85

160

2012 2013

TD-SCDMA BB Market(est. millions of units)

� 700M+ China Mobile

subscribers

� China Mobile target for

TD-SCDMA handset

sell-through doubles to

120M units (80%+

smartphones)

� Fastest growth in low

end segment with first

time smartphone

buyers

Source: Spreadtrum estimates



Fundamental Need for Entry-Level

Smartphones

Low-end TD-SCDMA

(single-core, ~US$50)

is accelerating

smartphone adoption

0

3

6

9

12

Ap

r-1

2

Ma

y-1

2

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

De

c-1

2

Jan

-13

Feb

-13

Ma

r-1

3

(mil

lio

ns)

China 3G Net Adds

China Mobile

(TD-SCDMA)

China Unicom

(WCDMA)

China Telecom

(EVDO)

114

612

3G 2G

726

This a fundamental trend that is just getting

started… and will continue for some time

China Mobile Subscribers

(millions, as of 3/13)

Source: China Mobile, China Unicom, China Telecom operations data



2.5G Feature Phones

China

Designed

2013 in 2.5G: Growing 2.5G Units with 1st Tier

Handset Makers & Operators

Global 1st tier OEM &

operator 2.5G business

expands Spreadtrum’s

addressable market

Source: IDC, IHS iSuppli 2012

Global

OEM



2013 in WCDMA: Entering a New Market

16% 17% 18% 18%

41%47%

53%57%

-

200

400

600

800

1,000

2012 2013 2014 2015

WCDMA (millions of units)

China Emerging Developed

• New growth vector in 2013

• Customers already use Spreadtrum’s smartphone platform for TD-SCDMA & EDGE

Source: Gartner, 3Q12



Integrated Connectivity

Smartphones + More Silicon Content Improve

Blended ASP

Relative ASPs

2G FP EDGE SP 3G SP 4G SP

Mix shift to smartphones improves ASP blend

2G 3G 4G

GPS � �

WiFi � �

BT � � �

FM � � �

Integrated 4Q12 2013 2013

Integrated connectivity adds content value



2013: Rapid Mix Shift to Smartphones in China,

Export Markets Follow in 2014/15

50%

12%

74%

15%

78%

31%

79%

47%

Smartphones as % of Device Sales(Made-in-China handsets)

2012

0% 0% 0% 0%Domestic China Export Market

• Fast transition in domestic China, the largest smartphone market in the world

• Followed by growth in export markets 2014-2015

Source: Goldman Sachs

2013 2014 2015



2013 in LTE: Participating in CMCC LTE Trials

TD-SCDMA leadership an advantage in delivery of

single-chip multi-mode LTE solutions

2012 2H13

SC9610 SC9620

Single-chip multimode modem

TD-LTE/TD-SCDMA/GGE

Won portion of China Mobile’s 1st 4G

tender

Single-chip 5 mode modem

TD-LTE/FDD-LTE/TD-

SCDMA/WCDMA/GGE



Market

SegmentShipping Now

Premium

smartphones

(modem only)

Premium

smartphones

(modem+AP)

Mid-range

smartphones

Ultra-low cost

smartphones

3G feature

phones

Spreadtrum Leadership in TD-SCDMA

SC8810

SC8803 SC9610

Market leadership

� Mature TD-SCDMA protocol stack

� Best-in-class modems for flagship products

� Single, dual and quad-core smartphone platforms

� Lowest cost entry-level smartphone platform

� Breadth of product portfolio

1GHz Cortex A5

BB/APTD-SCDMA

SC8800G

TD-SCDMA TD-LTE/TD-SCDMA

TD-SCDMA

SC88xx1.4GHz Quad

Cortex A7 BB/AP

(sampling)TD-SCDMA

SC88251.2GHz Dual

Cortex A5 BB/AP

TD-SCDMA

SC8801G



USIM/SIM

MCP

DDRAM

NAND

SC8810/

SC6820

RF

1GHz Android Platform

• 1GHz Cortex A5 CPU

• TD-SCDMA (SC8810), EDGE / WiFi (SC6820)

• Android 2.3/4.0

• 40nm

• Integrated PMU

• Dedicated Mali GPU

• Dual-SIM, dual-standby

• Industry-leading power consumption

• Single-chip 2G/3G RF Transceiver

Spreadtrum’s SC8810/SC6820: Lowest Cost

Architecture for Single-Core Smartphones

Enabling ultra low-cost smartphone segment



Dual-Core

Comparison

Spreadtrum

SC8825 / SC6825Competitor A

Wireless standards TD-SCDMA / EDGE TD-SCDMA / WCDMA

CPU Dual-core Cortex A5 Dual-core Cortex A7

GPU Dual-core Mali 400 Single-core Mali 400

GLBenchmark 2.5 Egypt~9fps (HD)

~31fps (Classic)n/a

Camera support8 megapixel with

image signal processing5 megapixel

Screen resolution HD 1280x720p 960x540p

Process node 40nm 28nm

PCB 4 or 6 layer 4 or 6 layer

Cost structure Low Low

Commercial Yes - March 2013 No (as of May 2013)

Spreadtrum’s Dual-Core Platform – Higher

Performance Features on Low Cost Structure



Product Portfolio – Key Products

Product Segment Available

Smartphone

Chipsets

Modems

Feature Phones

SC6531

BB/RF/BT/FM

SC7702

SC8810 SC6820

SC6530

BB/RF

SC8803

SC8800G

SC8502

SC8501

Feature phone+ Modem+ Smartphone

TD-SCDMA 40nm GPRS/GSM (2.5G)

TD-SCDMA

SC9610

TD-LTE/TD-SCDMA/EDGE WCDMA/HSPA+

1GHz Cortex A5

TD-SCDMA EDGE

SC8825 SC6825

1.2GHz Dual Cortex A5

TD-SCDMA EDGE

SC88xx

1.4GHz Quad Cortex A7

TD-SCDMA

SC7710

WCDMA/HSPA+

SC6500

Sampling

Low-costBB/RF/BT/FM



Expanding our Smartphone TAM

Single-core

TD-SCDMA &

EDGE

Dual-core

TD-SCDMA &

EDGE

Single core

WCDMA

Quad-core

platforms

Product SC6820 SC8810 SC6825 SC8825 SC7710 SCXXXX

Availability 2Q12 2Q12 1Q13 1Q13 Sampling Sampling (TD-SCDMA)

Modem EDGE TD-SCDMA EDGE TD-SCDMA WCDMA/HSPA+TD-SCDMA / WCDMA/

TD + W

Modem Cortex A5Dual

Cortex A5Cortex A5

Quad

Cortex A7

Speed 1GHz 1.2GHz 1GHz 1.4GHz

Connectivity External Integrated

Growth in single-core & dual-core, expansion to WCDMA & quad-core

Available Sampling



2013 Roadmap – Key Products, LTE

Product

SegmentAvailable 2H13

LTE SCxxxxSC9610

TD-LTE/TD-SCDMA/GGE single-chip modem

TD-LTE/FDD-LTE/TD-SCDMA/WCDMA/GGEsingle-chip modem

SC9620

2013 Network upgrade

China Mobile upgrades infrastructure and conducts network trials

2013 Spreadtrum product

5 mode single-chip modem:

• TD-LTE / FDD-LTE• TD-SCDMA / WCDMA• GGE

2014 Revenue

Anticipated commercial network launch



Expansion in Revenue

24%50-

60%

70-

80%

2012 2013e 2014e

Smartphone products

Feature phone/other products

725M

Growth catalysts:

• TD-SCDMA market

growth

• Smartphone platforms

• Expansion to WCDMA &

LTE

• Global OEM and

operator business

Growth catalysts can drive double digit annual revenue growth in next two years

Updated 2013 smartphone shipment estimate: > 120 million units


www.spreadtrum.com 30www.spreadtrum.com 30


Company Overview

Market & Products




Innovation changes the futureInnovation changes the futureFinancial Highlights

� 1Q13 revenue - US$189 million, down 6.9% QoQ and up 17.3% YoY

� Gross margin - 37.3%, compared to 37.1% in 4Q12

� GAAP net income – US$20.3 million, compared to US$24.9 million in 4Q12 and US$24.3 million in 1Q12

� Non- GAAP net income per diluted ADS - US$0.50 compared to US$0.59 in 4Q12 and US$0.57 in 1Q12

� Management guidance for Q2 2013:

Revenue: US$220 million – US$228 millionGross Margin: Slight improvement from first quarter



Innovation changes the futureInnovation changes the futureSpreadtrum – Solid Growth

52.1 71.4 96.2 126.5 137.1 160.2 184.8 192.2 161.1 173.1 187.9 203.1 189.00050100150200250 Revenue

23.7 31.9 42.5 54.4 57.9 67.2 77.2 78.4 61.3 64.2 70.1 75.3 70.500

10

20

30

40

50

60

70

80

90

Gross Profit

6.6 11.1 19.5 30.0 27.5 32.5 39.3 35.2 24.3 21.0 23.2 24.9 20.300

05

10

15

20

25

30

35

40

45

Net Income

0.17

0.34

0.43

0.610.55

0.65

0.830.78

0.57 0.58 0.560.59

0.50

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Non-GAAP EPS (Diluted)



Innovation changes the futureInnovation changes the futureInvestment Summary

� Targeting Large Growth Markets: China and Emerging Markets

� Market Leading Innovation and Advanced Technology

� A Local China Advantage in Customer Proximity & Cost of R&D

� Expanding Portfolio in Smartphones, WCDMA, LTE and Connectivity




www.spreadtrum.com

Thanks

Technology for the Mobile World

China · United States · Korea · India · Taiwan

Date post:	11-Jul-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times

Spreadtrum Communications, Inc....Spreadtrum may file with the SEC from time to time, including on...

Documents