Menu TI at a glance Analog and Embedded Processing Innovation Manufacturing Markets Financials University and student engagement Our commitment and values
TI at a glance
Global semiconductor design and manufacturing We design, manufacture, test and sell semiconductor chips
Technologies that improve how we live our lives Industry s broadest and most diverse portfolio of Analog and Embedded Processing products used by more than 100,000 of the world s most innovative companies
Diverse and global workforce Almost 30,000 employees in more than 30 countries
Diverse and global workforce Almost 30,000 employees in more than 30 countries Increases flexibility Fosters problem-solving Fuels innovation
Focus on Analog and Embedded Processing 2015 Revenue $13 billion More than 85 percent of TI s revenue comes from Analog and Embedded Processing $8.3 billion Analog $2.8 billion Embedded Processing $1.9 billion DLP products, calculators, custom ASIC and royalties.
A history of great invention through the years 1930s 1940s 1950s Oil exploration Defense systems Integrated circuit 1970s- 80s 2000 to present Processors Analog and Embedded Processing Applied research in Kilby Labs
Products for a broad set of applications and markets Industrial Enterprise systems Communications equipment Personal electronics Automotive
Global manufacturing Innovative processes, flexible operations and high quality results to support customer demand
Core values TI s core values of integrity, innovation and commitment are woven throughout our DNA
Corporate citizenship Our commitment to do the right thing permeates all aspects of our culture
Innovation and R&D Nearly $ 8 billion invested in the past 5 years* TI has more than 42,000 patents *2011-2015
Innovation and R&D Nearly $ 8 billion invested in the past 5 years* In areas such as: Product development R&D labs Manufacturing technology *2011-2015
Analog & Embedded Processing semiconductor solutions
Solutions for all markets Enabling endless applications Industrial Personal electronics Automotive Enterprise systems Communications equipment
Analog and Embedded Processing make electronics work Gather information from the real world
Analog Industry s No. 1 analog supplier* with the broadest and most comprehensive portfolio of products *IHS 2015
Embedded Processing Full-system design expertise with differentiated embedded processing hardware and software
Global application expertise and support, anytime and anywhere TI Designs reference designs More than 2,400 TI Designs to jumpstart system plans TI Store 24/7 tool sales and silicon sales TI E2E TM Community More than 1.5 million questions and answers at your fingertips Sales support Training WEBENCH Technical documents Industry s largest sales and applications force Online and in-person customer training Online design tools deliver custom results in seconds Comprehensive technical documentation available online
Continued investment in Analog and Embedded Processing Expanding TI s product portfolio Helping customers solve design challenges
Innovation
Innovative technology that meets our customers needs Delivering differentiated products that are: Smarter Faster More efficient Lower power
Research and development Systems and applications labs Kilby Labs University partnerships
Celebrating our people We foster a culture of innovation
Manufacturing
Global manufacturing Innovative processes High-quality results Flexibility 15 manufacturing sites in 9 countries
Innovative manufacturing processes Producing analog technologies that are: High-speed High-precision High-voltage High-density
Innovative manufacturing processes Our approach to manufacturing and differentiated processing technologies is a competitive advantage. This includes our investment in 300mm Analog capacity.
Responsive manufacturing capacity Almost $6B of open 300mm Analog capacity RFAB is the only fab in the world that is dedicated to advanced analog technology on 300mm wafers.
Quality and reliability of our chips Ensuring our products operate at or beyond our customers performance requirements
Safe and sustainable operations One of the best U.S. safety records* in the semiconductor industry Meeting our customers needs through sustainable operations * SIA I&I survey 2013
Financials
Strategic focus on Analog and Embedded Processing 2015 Revenue $13 billion We grow, generate and return cash to our shareholders $8.3 billion Analog $2.8 billion Embedded Processing $1.9 billion DLP products, calculators, custom ASIC and royalties.
30 20 10 0 30 25 20 20 20 15 15 10 10 2014 2015 2016 Disciplined capital allocation drives long-term value, competitiveness $39B of capital allocated over the past 5 years Drives long-term value, competitiveness, continued free cash flow per share growth Impacts shareholders returns R&D, Sales/Mkgt, CapEx, Inv 15.1 Share Repurchases Aquisitions Dividends Capital over 5 years (2011-2015) 5.4 6.5 12.2 0 5 10 15 20 $ Billions *Free cash flow = Cash flow from operations less capital expenditures
Looking forward: R&D investments strengthen portfolio, drive future growth Disciplined R&D investments allocated to higher value and growth opportunities Focused investments on industrial and automotive produce results: today comprise about 46% of TI revenue
Generate cash Generate 20 to 30 percent of free cash flow* from TI s revenue Strategic decisions drive free cash flow growth including: Approach to technology and manufacturing Broadest product portfolio Reach of market channels Long-lived and diverse products *FCF = cash flow from operations minus capital expenditures
Return cash Committed to return 100 percent* of free cash flow to shareholders through dividends and share repurchases *FCF plus proceeds from exercises of equity compensation less net debt retirement
Return cash Committed to return 100 percent* of free cash flow to shareholders through dividends and share repurchases *FCF plus proceeds from exercises of equity compensation less net debt retirement
Building a stronger TI We are focused on strengthening our unique competitive advantages: Approach to technology and manufacturing Broadest product portfolio Reach of market channels Long-lived and diverse products and markets
Markets
Automotive solutions Key automotive sectors: Infotainment Passive safety Advanced driver assistance systems (ADAS) Body electronics and lighting Hybrid/electric vehicle and powertrain
Industrial products Industrial is broad and diverse. 14 sectors including: Factory automation and control Medical, healthcare and fitness Building automation Grid infrastructure Test and measurement Motor drivers with hundreds of end equipments
From personal electronics to enterprise systems Personal electronics Communications equipment Enterprise systems
University and student engagement
Developing future engineers University engagements include: Curricula based on TI products Teaching labs Innovation Design Contest Research projects
Supporting university professors More than 8,000 Teaching & Innovation Labs at more than 2,600 universities worldwide, reach more than 600,000 students annually.
Supporting university professors Faculty support: More than 300 ongoing university research projects worldwide Tools, software and labs Training workshops Textbooks and education materials
Employing the best and brightest Internships and rotation programs Early career and experienced professionals Technicians and operators
Our commitment and values
Our commitment Social Impact Environmental Impact Citizenship is our commitment to be accountable for our social, environmental and economic impact around the world Economic Impact
Investment in our people We believe diversity fuels innovation because our people are our greatest assets
Operating sustainably Responsible business practices are the foundation by which we operate
Environmental stewardship Investment to reduce: Air emissions Energy consumption Water use
Stronger communities make stronger companies Investment in our communities * 2010-2015
Stronger communities make stronger companies Involvement through volunteerism 400 Employees serving in nonprofit leadership roles 130k Volunteer hours valued at $3m in 2015 (estimated)
Connecting future engineers to STEM More than $150 million invested in education, including K-16 science, technology, engineering and math (STEM) programs
Connecting future engineers to STEM More than $150 million invested in education, including K-16 science, technology, engineering and math (STEM) programs Enabling: K-12 and university programs Curriculum, technology and tools Employee volunteering and mentoring Underrepresented groups to learn more about STEM and engineering careers
Awards Company CR Magazine 100 Best Corporate Citizens, 2015 (13 th year) Ethisphere Institute, World s Most Ethical Companies, 2015 (9 th consecutive year) Fortune, World s Most Admired Companies (2 nd in industry) 2015 (12 th consecutive year) Financials indices and ratings Dow Jones Sustainability Indices, North America Component, 2015 (9th year) FTSE Group, Constituent, FTSE4Good, a responsible investment index series, 2015 *3rd consecutive year) Employer Forbes, Americas Best Employers, 2015 Human Rights Campaign Foundation, Best Places to Work, Corporate Equality Index 2015 (12th year) CareerBliss, 50 happiest Companies in America, 2016 (5 th year) Environmental Ethisphere Institute, World s most Ethical Companies, 2015 (9 th consecutive year) Chengdu High-tech Industrial Development Zone, Excellent Environmental, Safety and Health Award, 2015 Taiwan Environmental Protection Administration, Enterprise Environmental Outstanding Award, 2015 (2nd consecutive year)
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