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 approximately
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
2016 Revenue $13.37 billion
More than 85 percent of TI’s revenue comes from Analog and
Embedded Processing
$8.54 billion Analog
$3.02 billion Embedded Processing $1.81 billion Other
A history of great invention through the years 1930s
1940s
1950s
Oil exploration
Defense systems
Integrated circuit
1970s-’80s
Processors
2000-2010
Analog and Embedded Processing
2010 to present
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
Environmental stewardship
Community involvement Ethics
Innovation and R&D
More than
$
7 billion
invested in the past
5
years*
*2012-2016
TI has more than
44,000 patents
Innovation and R&D
More than
$
7 billion
invested in the past
5
years*
*2012-2016
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 2016
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 2,000 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 • Low power
Innovative manufacturing processes
Our approach to manufacturing and differentiated processing technologies is a competitive advantage. This includes our investment in 300-mm analog capacity
Responsive manufacturing capacity
About $8B of total
300-mm analog capacity
RFAB is the industry’s first and largest fab in the world dedicated to analog technology on 300-mm 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
*OSHA 2015
Meeting our customers’ needs through sustainable operations
Financials
Strategic focus on Analog and Embedded Processing
2016 Revenue $13.37 billion
We grow, generate and return cash to our shareholders
$8.54 billion Analog
$3.02 billion Embedded Processing $1.81 billion Other
Disciplined capital allocation drives long-term value, competitiveness
• $73B of capital allocated over the past 10 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 10 years (2007-2016)
32
R&D, Sales/Mkgt, CapEx, Inv 25
Share repurchases 9
Dividends 7
Acquisitions 0
5
10
15 20 $ Billions
25
30
35
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 51% of TI revenue
Generate cash
In 2016,
free cash flow
(FCF)* increased to $4.1B or 30.5% of 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
Dividends per share
2.00
(in U.S. dollars)
Committed to
return all* of free cash flow to shareholders through dividends and share repurchases
1.64 1.40 1.24 1.07
0.72
0.41
0.45
0.49
0.56
0.30 0.089 0.105
0.13
2004
2006
*FCF plus proceeds from exercises of equity compensation less net debt retirement
2005
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016 4Q16x4
Return cash
42% reduction in shares outstanding
Committed to
return all* of free cash flow to shareholders through dividends and share repurchases
(in billions)
2.0
1.5
1.0
0.5 2004
*FCF plus proceeds from exercises of equity compensation less net debt retirement
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
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 systems
Key automotive sectors:
• Infotainment • Passive safety • Advanced driver assistance systems (ADAS) • Body electronics and lighting • Hybrid/electric vehicle and powertrain
Industrial systems
Industrial is broad and diverse with 14 sectors including: • Factory automation and control • Medical, healthcare and fitness • Building automation • Grid infrastructure • Test and measurement • Motor drivers
From personal electronics to enterprise systems
Personal electronics
Communications equipment
Enterprise systems
University faculty and student engagement
Bridging the gap between industry and academia
University engagements include: • C oursework materials • Teaching labs • S tudent design inspiration • R esearch projects
Since 1982, TI has been bridging the gap between academia and industry with more than 8,000 teaching labs in engineering departments at 2,600 universities worldwide, 450 TI-based textbooks in 10 languages, reaching tens of thousands of students annually
Bringing real-world engineering concepts to life for students
Resources students need for their maker mindset to thrive
• Online tutorials • Design inspiration • Engineer-to-engineer discussions • P roducts and tools to enhance the learning experience
Supporting university professors
Teaching materials and resources to integrate into coursework: • TI-based teaching kits and labs
• Analog • Embedded Processors • Products and tools
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
* 2011-2016
Stronger communities make stronger companies
Involvement through volunteerism
*As of 11/15/2016
400+
Employees serving in nonprofit leadership roles
130K
Volunteer hours valued at $3.2M in 2016* (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
2016 Awards
Company CR Magazine, “100 Best Corporate Citizens”(14th year)
Financials indices and ratings
Ethisphere Institute, “World’s Most Ethical Companies” (11th consecutive year)
Dow Jones Sustainability Indices, “North America Component” (10th year)
Fortune, “World’s Most Admired Companies” (3rd in industry)
FTSE Group, “Constituent,” FTSE4Good, a responsible investment index series (4th year)
Employer
Safety and health
Forbes, “America’s Best Employers”
British Safety Council, “International Safety Award” for best in class in the manufacturing sector
Human Rights Campaign, inclusion in the Corporate Equality Index rating LGBT workplace equality (13th year) CareerBliss, “50 Happiest Companies in America” (5th year)
Malaysian Society of Occupational Safety and Health Awards, “Gold Class,” recognizing TI Malaysia and TI Electronics Malaysia National Safety Council, “Perfect Record Award,” recognizing RFAB
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 approximately
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
2016 Revenue $13.37 billion
More than 85 percent of TI’s revenue comes from Analog and
Embedded Processing
$8.54 billion Analog
$3.02 billion Embedded Processing $1.81 billion Other
A history of great invention through the years 1930s
1940s
1950s
Oil exploration
Defense systems
Integrated circuit
1970s-’80s
Processors
2000-2010
Analog and Embedded Processing
2010 to present
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
Environmental stewardship
Community involvement Ethics
Innovation and R&D
More than
$
7 billion
invested in the past
5
years*
*2012-2016
TI has more than
44,000 patents
Innovation and R&D
More than
$
7 billion
invested in the past
5
years*
*2012-2016
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 2016
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 2,000 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 • Low power
Innovative manufacturing processes
Our approach to manufacturing and differentiated processing technologies is a competitive advantage. This includes our investment in 300-mm analog capacity
Responsive manufacturing capacity
About $8B of total
300-mm analog capacity
RFAB is the industry’s first and largest fab in the world dedicated to analog technology on 300-mm 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
*OSHA 2015
Meeting our customers’ needs through sustainable operations
Financials
Strategic focus on Analog and Embedded Processing
2016 Revenue $13.37 billion
We grow, generate and return cash to our shareholders
$8.54 billion Analog
$3.02 billion Embedded Processing $1.81 billion Other
Disciplined capital allocation drives long-term value, competitiveness
• $73B of capital allocated over the past 10 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 10 years (2007-2016)
32
R&D, Sales/Mkgt, CapEx, Inv 25
Share repurchases 9
Dividends 7
Acquisitions 0
5
10
15 20 $ Billions
25
30
35
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 51% of TI revenue
Generate cash
In 2016,
free cash flow
(FCF)* increased to $4.1B or 30.5% of 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
Dividends per share
2.00
(in U.S. dollars)
Committed to
return all* of free cash flow to shareholders through dividends and share repurchases
1.64 1.40 1.24 1.07
0.72
0.41
0.45
0.49
0.56
0.30 0.089 0.105
0.13
2004
2006
*FCF plus proceeds from exercises of equity compensation less net debt retirement
2005
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016 4Q16x4
Return cash
42% reduction in shares outstanding
Committed to
return all* of free cash flow to shareholders through dividends and share repurchases
(in billions)
2.0
1.5
1.0
0.5 2004
*FCF plus proceeds from exercises of equity compensation less net debt retirement
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
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 systems
Key automotive sectors:
• Infotainment • Passive safety • Advanced driver assistance systems (ADAS) • Body electronics and lighting • Hybrid/electric vehicle and powertrain
Industrial systems
Industrial is broad and diverse with 14 sectors including: • Factory automation and control • Medical, healthcare and fitness • Building automation • Grid infrastructure • Test and measurement • Motor drivers
From personal electronics to enterprise systems
Personal electronics
Communications equipment
Enterprise systems
University faculty and student engagement
Bridging the gap between industry and academia
University engagements include: • C oursework materials • Teaching labs • S tudent design inspiration • R esearch projects
Since 1982, TI has been bridging the gap between academia and industry with more than 8,000 teaching labs in engineering departments at 2,600 universities worldwide, 450 TI-based textbooks in 10 languages, reaching tens of thousands of students annually
Bringing real-world engineering concepts to life for students
Resources students need for their maker mindset to thrive
• Online tutorials • Design inspiration • Engineer-to-engineer discussions • P roducts and tools to enhance the learning experience
Supporting university professors
Teaching materials and resources to integrate into coursework: • TI-based teaching kits and labs
• Analog • Embedded Processors • Products and tools
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
* 2011-2016
Stronger communities make stronger companies
Involvement through volunteerism
*As of 11/15/2016
400+
Employees serving in nonprofit leadership roles
130K
Volunteer hours valued at $3.2M in 2016* (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
2016 Awards
Company CR Magazine, “100 Best Corporate Citizens”(14th year)
Financials indices and ratings
Ethisphere Institute, “World’s Most Ethical Companies” (11th consecutive year)
Dow Jones Sustainability Indices, “North America Component” (10th year)
Fortune, “World’s Most Admired Companies” (3rd in industry)
FTSE Group, “Constituent,” FTSE4Good, a responsible investment index series (4th year)
Employer
Safety and health
Forbes, “America’s Best Employers”
British Safety Council, “International Safety Award” for best in class in the manufacturing sector
Human Rights Campaign, inclusion in the Corporate Equality Index rating LGBT workplace equality (13th year) CareerBliss, “50 Happiest Companies in America” (5th year)
Malaysian Society of Occupational Safety and Health Awards, “Gold Class,” recognizing TI Malaysia and TI Electronics Malaysia National Safety Council, “Perfect Record Award,” recognizing RFAB
Q&A
