Exhibit 99.12
Header of all slides
[Logo] Microsemi more than solutions - enabling possibilities
Analyst Day | 11/8/2001 |
http://www.microsemi.com
Slide 1
Analyst Day
Overview Presentation
Slide 2
Disclaimer
. Some of the information in this presentation may contain projections or other
forward-looking statements regarding future events or the future financial
performance of Microsemi Corporation.
. We wish to caution you that these statements are only predictions and that
actual events or results may differ materially. We refer you to the documents
the company files from time to time with the Securities and Exchange
Commission, specifically, the Company's most recent Form 8-K, 10-K and Form
10-Q.
. These documents contain and identify important factors that could cause the
actual results to differ materially from those contained in our projections
or forward -looking statements.
Slide 3
Company Overview
. Semiconductor manufacturer
- Founded in 1960, core strengths developed in military/aerospace and
medical markets
. Executing on 3 Point Strategy
- System engineered solutions, increasing gross margins, leveraging
intellectual property
. Operational improvements
- New management team improving bottom line
. Diverse market strategy provides stability
- Broad customer base, none greater than 4% of revenues
. Increasing R&D - Developing our Future
- Focus on 5 key Circuit Solutions that are fueling company growth
. Strong Financial Results
- Stability in rough markets, long term earnings history, improving margins,
strong balance sheet
Product Mix FY02E
Power Management 29%
Transient Protection 16%
Power Conditioning/Discretes 38%
RF and Optoelectronics 17%
Top 20 OEM Customers (FY01)
Rank Customer Market/Application
- ---- -------- -------------------
1 Boeing Satellites/Military
2 Guidant Medical Implantables
3 Seagate Disk Drives
4 Motorola Mobile Phones
5 Alcatel Fiber Optics/Satellites
6 BAE Systems Military/Aerospace
7 Rockwell Military/Aerospace
8 Lockheed Martin Satellites/Military
9 Robert Bosch GMBH Satellite Communications
10 Agilent Telecommunications
11 Dell PC/Peripherals
12 Mitsubishi Mobile Phones
13 Loral Space Satellites
14 Siemens AG PC/Peripherals
15 Honeywell Military/Aerospace
16 Tecnologica Satellites
17 Delco Automotive
18 St. Jude Medical Medical Implantables
19 Raytheon Military/Aerospace
20 Solectron Various
Slide 4
Company Strategy
. Develop and Market System Engineered Solutions
- Work with customers to develop "must have" products
- Develop alliances/reference design wins
. CREE, Nitronex, APTI, Intel, Intersil, Atheros
- Re-utilize packaging IP to enhance performance
. Powermite as Power Diode or LED package
. MMSM as WLAN switch or LED package
- Combining application specific semiconductor processes
. Low voltage silicon (0.7V chips), InGaP (HBT Amps), InP (OC192/768
detectors), InGaN (Blue, Green, and UV LEDs), SiC (Schottkys)
. Mix and match depending on end application
. Increase Gross Margins (Goal of 50% or better)
- Consolidation of business units, focus on utilization
- Introduce higher value added/higher gross margin products
. Experts at reapplying Intellectual Property
- Repositioning Core Competencies and Circuit "know how" into multiple
market segments and applications
[Graphics of four PDA's]
[Picture of discrete component]
[Picture of discrete component]
[Picture of lab technician]
[Sharp Logo]
[intersil Logo]
[Atheros Communications Logo]
[Intel Logo]
[Harison Logo]
Slide 5
Operational Improvements
. New Management Reshaping company
- Chief Operating Officer appointed
- VP of Human Resources appointed
- VP of Quality/Business Process Development appointed
. Improved Incentive programs
- Now focused on operating income improvements
- Broader employee stock option program
. Utilization Improvements and Consolidations in progress
- Florida and Hong Kong operations closed in FY01
- Operational consolidations planned
. Easy to execute, have significant positive financial impact, under our
control - not market or application dependent
Slide 6
Diverse OEM Customer Base
14.8% Mobile connectivity [graphic of mobile telephone] Qualcomm, Samsung,
Motorola, Compaq,
Palm, Mitsubishi
12.0% telecom [graphic of pbx operator] Alcatel, Ericsson, Nokia, Nortel
13.6% industrial [graphic of welder] Coleman, PowerOne, Recoton, Magnatek
2.2% automotive [graphic of computer inside a vehicle] Visteon, Becker,
VDO, Clarion
11.5% computers/peripherals [graphic of laptop computer] Dell, Seagate,
Gigabyte, Compaq,
IBM, Fujitsu
10.1% medical [graphic of Chest X-ray] GE Medical, Guidant, St. Jude,
Biotronik, Medtronic, InSonus
35.8% mil/aerospace [graphic of Astronaut in space] Matra, Raytheon,
General Electric,
Bosch, Lockheed Martin,
Boeing
. Top 100 customers 70% Sales, none greater than 4%
. North America 70%
. Europe 20%
. Asia 9%
. ROW 1%
. OEM 60%
. Distributors 36%
. CMs 4%
Slide 7
Extensive product portfolio
Product Group RF/Opto(17%)
Breakdown 0% 48% 50% 2%
I R T P D
C F r h e
s a o t
(P A D n t e
o m i s o c
w p o i t
e s) d s o
r e t r
s o s
Markets Applications r
------------- --------------------------- s
Mobile Mobile Phones, 2-Way Radios 50% x x x x
Connectivity PDAs, Web Tablets 50% x x
Base station/POTs 28% x x
Wireless LAN 2% x x
Telecom Set-top box 30% x x
Fiber Optics 40% x x
AutoPC/Navigation 98% x x
Automotive Audio 2%
Commercial Aircraft 10%
Military Communications 10%
Military/ Military Aircraft 10% x x
Aerospace Missiles 10% x x
Communication Satellites 40% x x x
Military Satellites 10%
Other 10%
Medical Heart Defibrillators/Pacers 80% x x
MRI/Ultrasound/Diagnostic 13% x x x
Hearing aids 5%
Computer/ PCs/Laptops/Servers 50% x
Peripheral Disc drives 30%
Audio equip 5%
Monitors 5%
Industrial/ Semi-cap/RF Generators 15% x x
Commercial Power Supplies 40% x
Pet Electric Fence Sys. 5% x x
Power Management (29%)
Breakdown 20% 2% 40% 15% 15% 2% 5% 1%
L P A P L D S M P M M T
i r u r i C C e r i o E
g o d o n : S d o l/ d C
h d I d e D I i d A u
t u o u a C c u e l I
i c c r a c r e C
n t t l t o s s
g s s P s
W
M
Markets Applications s
- -------------- --------------------------------------
Mobile Mobile Phones, 2-Way Radios 50% x x x x
Connectivity PDAs, Web Tablets 50% x x x x
Base station/POTs 28% x x x
Wireless LAN 2%
Telecom Set-top box 30% x x x x
Fiber Optics 40% x x x
AutoPC/Navigation 98% x x x
Automotive Audio 2% x x x x
Commercial Aircraft 10% x x
Military Communications 10% x x
Military/ Military Aircraft 10%
Aerospace Missiles 10% x x
Communication Satellites 40% x
Military Satellites 10%
Other 10% x
Medical Heart Defibrillators/Pacers 80% x x
MRI/Ultrasound/Diagnostic 13% x x x
Hearing aids 5% x x
Computer/ PCs/Laptops/Servers 50% x x x x
Peripheral Disc drives 30% x x x
Audio equip 5% x x
Monitors 5% x
Industrial/ Semi-cap/RF Generators 15% x x
Commercial Power Supplies 40%
Pet Electric Fence Sys. 5% x
TVS(16%)
Breakdown 50% 20% 0% 30%
E L E Z
S i M e
D g I n
h e
t r
i s
n
Markets Applications g
- -------------- -----------------------------
Mobile Mobile Phones, 2-Way Radios 50% x x x
Connectivity PDAs, Web Tablets 50% x x
Base station/POTs 28% x x
Wireless LAN 2% x
Telecom Set-top box 30% x x x x
Fiber Optics 40% x x
AutoPC/Navigation 98% x x x
Automotive Audio 2% x x
Commercial Aircraft 10% x x
Military Communications 10% x x
Military/ Military Aircraft 10% x x
Aerospace Missiles 10% x x x
Communication Satellites 40% x x
Military Satellites 10%
Other 10% x x
Medical Heart Defibrillators/Pacers 80% x x x
MRI/Ultrasound/Diagnostic 13% x x
Hearing aids 5% x
Computer/ PCs/Laptops/Servers 50% x x x
Peripheral Disc drives 30% x
Audio equip 5% x
Monitors 5%
Industrial/ Semi-cap/RF Generators 15% x x
Commercial Power Supplies 40% x
Pet Electric Fence Sys. 5% x
Discrete(38%)
Breakdown 30% 2% 0% 25% 35% 8%
P M S D S T
o o i i c r
w s c o h a
e f d o n
r e e t s
m t s t i
i k s
t y t
e s o
Markets Applications r
- ------------- -------------------------- s
Mobile Mobile Phones, 2-Way Radios 50% x x
Connectivity PDAs, Web Tablets 50% x x
Base station/POTs 28% x x x x x
Wireless LAN 2%
Telecom Set-top box 30% x
Fiber Optics 40% x x
AutoPC/Navigation 98% x x
Automotive Audio 2%
Commercial Aircraft 10% x x x x x
Military Communications 10% x x x x
Military/ Military Aircraft 10% x x
Aerospace Missiles 10% x x x x x
Communication Satellites 40% x x
Military Satellites 10%
Other 10% x x x x
Medical Heart Defibrillators/Pacers 80% x x x x
MRI/Ultrasound/Diagnostic 13% x x
Hearing aids 5% x
Computer/ PCs/Laptops/Servers 50% x
Peripheral Disc drives 30% x
Audio equip 5%
Monitors 5%
Industrial/ Semi-cap/RF Generators 15% x x x
Commercial Power Supplies 40% x x x
Pet Electric Fence Sys. 5% x x
Slide 8
How Do we Manage this Diversity?
. Teamwork (Marketing, Systems Engineering, Design)
. Systems in place to support live collaborative cross divisional communication
- Customer/Resource Management tool
. On going training programs - what are our products, and who uses them
. Dollars per Widget Awareness
- - Incentive programs to drive cross divisional selling
. Teaching business units that working together we can leverage our breadth of
product and application expertise
- Teamwork delivers results
. The value of an increased stock option program
Slide 9
MicroNET(TM) - our InfoSys tool
. Used for tracking activities in collaborative live environment - globally
- Leads
- Opportunities
- Product Availability
- Product Design Status
- Quote/Turns Activity
- Collaborative Forecasting
- Order Status
- POS info
- Market Data
- Competitor Info
. Demo
Slide 10
Developing Microsemi's Future
. Focus on high growth, high margin product opportunities
- 8X min Return on R&D over life of product
. R&D increasing
- 2.2% in FY99
- 6.4% in FY01
- Estimated 8% in FY02
. New part roll out increasing
- 4 Parts introduced in FY01Q3
- 8 Parts introduced in FY01Q4
- Estimate 40-50 products in FY02
. Optimizing Margin Mix of Product Portfolio
. 5 Key Circuit Solutions to Fuel MSCC Growth
- Upside estimate of new products developed/introduced in FY00/FY01
Base Business + new Products
MSCC Fiscal Year
FY01E FY02E FY03E FY04E
Protection 0 1 4 8
Temperature 0 1 3 8
Power 5 to 6 13 46 83
Sound 1 7 15 29
Light 14 to 15 22 48 93
Base Business 223 to 226 237 277 304
Total 243.2 to 248.2 281 393 525
NOTE: Amounts shown are estimates of projected revenue growth from new products.
These estimates represent the average of the range of company estimates
developed from external market research data, as well as internal company market
and product forecasts. Amounts could change due to changes in market conditions,
customer acceptance and other factors, whether known or unknown to the company
at this time. Please refer to Microsemi Safe Harbor Statement.
Slide 11
Products (Tactical/Strategic)
Field FAEs Strategic Product System Design
Sales Marketing Development Engineering Engineering
----------- ------------- ----------------------------- -----------------------------
Products/Mgmt Jim Gentile Gentile/Lynch Manuel Lynch Kelly Jones
Manageing Light
CCFL TFSE R Holiday G Henry E Campos
LED D TFSE S Litchfield P Pickle G Henry S Kelly/Campos
Lasers i TFSE G Hartman P Okada P Okada
Photodetector r TFSE G Hartman T Vu Dr Shin
e
Managing Sound c J Jiang F Lynch
Low Power (AudioMITE) t J Weiland O Anderssen
High Power (Audio Max) M Tanaka J Jiang G Batelman
Managing Power M Lynch
RF Ics + R Desai (UK) E Volk Dr Kim Dr Qian
RF Discretes B Doherty (US) K Philpot K Philpot R Preston
DCDC R PK Lee (Asia) P Pickle S Brooks (various)
Military e ------ (various) (various) (various)
p
Managing Temp s A Popp
Passive TFSE (various) S Kelly S Kelly
Active TFSE G Hartman S Brooks (various)
Protecting Circuits K Walters A Popp
ESD M Clark M Clark C Poliakoff
EMI A Popp V Barkadorian V Barkadorian
Lightning M Clark C Poliakoff C Poliakoff