TI at a glance
Menu
TI at a glance
Markets
Analog and Embedded Processing
Innovation
Manufacturing
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 countries 30
Diverse and global workforce
Almost
30,000
employees in more than countries 30
• 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
Processors
2000 to present
Analog and Embedded Processing
Applied research in Kilby Labs
Products for a broad set of applications and markets
Enterprise systems Industrial
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*
*2011-2015
TI has more than
42,000 patents
Innovation and R&D
Nearly
$
8 billion
invested in the past
5
years*
*2011-2015
In areas such as: Product development R&D labs Manufacturing technology
Analog & Embedded Processing
semiconductor solutions
Solutions for all markets
Enabling
endless
Industrial
Personal electronics
Automotive
Enterprise systems
applications 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
TI Store
TI E2ETM Community
More than 2,400 TI Designs to jumpstart system plans
24/7 tool sales and silicon sales
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
* SIA I&I survey 2013
Meeting our customers’ needs through sustainable operations
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.
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 *Free cash flow = Cash flow from operations less capital expenditures
Capital over 5 years (2011-2015)
15.1
R&D, Sales/Mkgt, CapEx, Inv 12.2
Share Repurchases 6.5
Aquisitions
5.4
Dividends 0
5
10 $ Billions
30 20 10 0
10
15
2014
20
15
20
2015
30
25
20 10 2016
15
20
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
*FCF = cash flow from operations minus capital expenditures
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
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: • C urricula based on TI products • Teaching labs • Innovation Design Contest • R esearch 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 • Tools, software and labs ongoing university • Training workshops research projects • T extbooks and worldwide 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
Citizenship is our commitment to be accountable for our social, environmental and economic impact around the world
Social Impact
Environmental Impact
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 •C urriculum, technology and tools •E mployee volunteering and mentoring •U nderrepresented groups to learn more about STEM and engineering careers
Awards
Company CR Magazine “100 Best Corporate Citizens,” 2015 (13th year) Ethisphere Institute, “World’s Most Ethical Companies,” 2015 (9th consecutive year) Fortune, “World’s Most Admired Companies” (2nd in industry) 2015 (12th 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
Environmental
Forbes, “Americas Best Employers,” 2015
Ethisphere Institute, “World’s most Ethical Companies,” 2015 (9th consecutive year)
Human Rights Campaign Foundation, “Best Places to Work,” Corporate Equality Index 2015 (12th year) CareerBliss, “50 happiest Companies in America,” 2016 (5th 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)
Q&A
TI at a glance
Markets
Analog and Embedded Processing
Innovation
Manufacturing
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 countries 30
Diverse and global workforce
Almost
30,000
employees in more than countries 30
• 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
Processors
2000 to present
Analog and Embedded Processing
Applied research in Kilby Labs
Products for a broad set of applications and markets
Enterprise systems Industrial
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*
*2011-2015
TI has more than
42,000 patents
Innovation and R&D
Nearly
$
8 billion
invested in the past
5
years*
*2011-2015
In areas such as: Product development R&D labs Manufacturing technology
Analog & Embedded Processing
semiconductor solutions
Solutions for all markets
Enabling
endless
Industrial
Personal electronics
Automotive
Enterprise systems
applications 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
TI Store
TI E2ETM Community
More than 2,400 TI Designs to jumpstart system plans
24/7 tool sales and silicon sales
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
* SIA I&I survey 2013
Meeting our customers’ needs through sustainable operations
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.
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 *Free cash flow = Cash flow from operations less capital expenditures
Capital over 5 years (2011-2015)
15.1
R&D, Sales/Mkgt, CapEx, Inv 12.2
Share Repurchases 6.5
Aquisitions
5.4
Dividends 0
5
10 $ Billions
30 20 10 0
10
15
2014
20
15
20
2015
30
25
20 10 2016
15
20
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
*FCF = cash flow from operations minus capital expenditures
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
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: • C urricula based on TI products • Teaching labs • Innovation Design Contest • R esearch 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 • Tools, software and labs ongoing university • Training workshops research projects • T extbooks and worldwide 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
Citizenship is our commitment to be accountable for our social, environmental and economic impact around the world
Social Impact
Environmental Impact
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 •C urriculum, technology and tools •E mployee volunteering and mentoring •U nderrepresented groups to learn more about STEM and engineering careers
Awards
Company CR Magazine “100 Best Corporate Citizens,” 2015 (13th year) Ethisphere Institute, “World’s Most Ethical Companies,” 2015 (9th consecutive year) Fortune, “World’s Most Admired Companies” (2nd in industry) 2015 (12th 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
Environmental
Forbes, “Americas Best Employers,” 2015
Ethisphere Institute, “World’s most Ethical Companies,” 2015 (9th consecutive year)
Human Rights Campaign Foundation, “Best Places to Work,” Corporate Equality Index 2015 (12th year) CareerBliss, “50 happiest Companies in America,” 2016 (5th 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)
Q&A
