CASE STUDY

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BUSINESS PROFILE

SKYWORKS SOLUTIONS
INC

All data in this presentation was extracted as at 05 August 2020

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CONTENT
Right Business
• Core Business
• Economic Moat
• Growth Drivers
• Risks

Right Management
• Management Profile
• Management Numbers

Right Valuation
•Numbers
•Valuation

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RIGHT BUSINESS
RIGHT BUSINESS
CORE BUSINESS: SHARIAH-COMPLIANT

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RIGHT BUSINESS
CORE BUSINESS: ABOUT COMPANY

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RIGHT BUSINESS
CORE BUSINESS: ABOUT COMPANY
• Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high performance analog
semiconductors and wireless networking products are connecting people, places and things spanning
a number of new and previously unimagined applications within the automotive, broadband, cellular
infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable
markets.

• We are empowering the wireless networking revolution, connecting people, places and things around
the world. As the demand for ubiquitous, “always-on” connectivity increasingly expands, our
innovative, high performance analog semiconductors are enabling breakthrough communication
platforms from global industry leaders – changing the way we live, work, play and learn. Through
our broad technology expertise and one of the most extensive product portfolios in the industry, we
are Connecting Everyone and Everything, All the Time.

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RIGHT BUSINESS
CORE BUSINESS: INTERNET OF THINGS (IOT)

Across the Internet of Things (IoT), it is estimated that 75 billion devices will be intelligently
connected globally by 2025. This rapid acceleration will have a transformative effect on the
economy, giving rise to new business models and significantly impacting everyday life. Our
solutions are empowering these new and emerging applications and connecting the IoT ecosystem.

Skyworks is at the heart of this connected economy – facilitating data creation, delivery and
storage. Our highly integrated solutions are elevating performance while efficiently transporting
immense volumes of content across new and emerging platforms. From industrial robotics to
wearables, home security networks and virtual assistants, Skyworks is powering these applications
with customized architectures supporting wireless protocols

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RIGHT BUSINESS
CORE BUSINESS: PRODUCTS & SERVICES

PRODUCTS BY APPLICATION
• Connected Homes • Instrumentation
• Industrial IoT • Smart Cities
• Factory Automation • Smart Energy
• Lighting • Wearables
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RIGHT BUSINESS
CORE BUSINESS: PRODUCTS & SERVICES

PRODUCTS BY APPLICATION
• 5G New Radio
• Smartphones
• 4G LTE
• Tablets
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RIGHT BUSINESS
CORE BUSINESS: PRODUCTS & SERVICES

PRODUCTS BY APPLICATION
• Audio and Video Displays • Gaming
• HDTV Home Gateways • Set-Top Boxes
• Cameras • Smart Audio
• Routers and Gateways • Wireless Audio/Video
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RIGHT BUSINESS
CORE BUSINESS: PRODUCTS & SERVICES

PRODUCTS BY APPLICATION
• Cellular Telematics
• Infotainment
• DSRC And V2X
• Remote Keyless Entry
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RIGHT BUSINESS
CORE BUSINESS: PRODUCTS & SERVICES

PRODUCTS BY APPLICATION
• Biomedical Materials • Hearing Aids
• Heart Monitors • Clinical Equipment
• Blood Sugar Monitors • Smart Scales
• Patient Telemetry • Specialty Medical Applications
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RIGHT BUSINESS
CORE BUSINESS: PRODUCTS & SERVICES

PRODUCTS BY APPLICATION
• Avionics • Instrumentation
• Military Communications • Space
• Electronic Warfare • Surveillance Systems
• Radar
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RIGHT BUSINESS
CORE BUSINESS: PRODUCTS & SERVICES

PRODUCTS BY APPLICATION
• Macro/Massive MIMO
• Small Cells
• CATV

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RIGHT BUSINESS
CORE BUSINESS: GEOGRAPHICAL REVENUE

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RIGHT BUSINESS
CORE BUSINESS: GEOGRAPHICAL REVENUE

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RIGHT BUSINESS
CORE BUSINESS: CUSTOMERS

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RIGHT BUSINESS
CORE BUSINESS: CUSTOMERS
• Skyworks' biggest customer is Apple. According to the company's most recent 10-K filing,
Apple accounted for 51% of Skyworks’ net revenue in 2019 and 47% in 2018.

• And in addition to 5G, their capabilities in broad markets have grown, as they now serve
an expanded set of global customers like automotive manufacturers, component suppliers,
and industrial conglomerates, including companies like Audi, BMW, Ford,
Continental, LG, along with factory automation leaders such as Bosch, Honeywell,
Siemens and GE for enabling 5G connectivity.

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RIGHT BUSINESS
ECONOMIC MOAT: INTANGIBLE ASSET
Patent & Expert Technical Knowledge

Skyworks has a narrow economic moat based on intangible assets around the
design, manufacturing, and packaging of a variety of nonsilicon radio frequency, or
RF, products, and integrated front end modules used in many 4G-enabled smartphones.
Their leadership position is underpinned by a library of intellectual property containing over
3,000 patents worldwide.

Ultimately, RF leaders like Skyworks have years, if not decades, of RF expertise, both in
design and, perhaps more important, in chip manufacturing, packaging, and testing.
Skyworks' ability to integrate a variety of RF parts into a single package, like its SkyOne
suite of products, has been difficult for many others to replicate, and Skyworks has
reaped the rewards with healthy profitability and earnings growth.

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RIGHT BUSINESS
ECONOMIC MOAT: INTANGIBLE ASSET
Customised Products for Customers

Skyworks craft their technology and build it in-house. They don’t and very rarely outsource.
They do it in-house. So the CAPEX that they have is actually strategic technology investments.
These are not filters that people could buy in the open market. They are filters that they craft
and customize and work customer by customer to implement. So it's a very different business
model than some of their peers.

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RIGHT BUSINESS
ECONOMIC MOAT: EFFICIENT SCALE
Growing Complexity in RF Design from 4G to 5G

As wireless networks upgrade to 5G technologies, RF designs should only grow in

complexity, making RF leaders even more valuable suppliers into smartphones and other
device makers than they are today. We believe this complexity in 4G today and 5G
tomorrow enables firms like Skyworks to benefit from its integration capabilities, packing
more and more content into its devices. In turn, the value added by this integration should
help the company fend off pricing pressure.
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RIGHT BUSINESS
ECONOMIC MOAT: EFFICIENT SCALE
High Cost of Building A Semiconductor Fabrication Plant

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

•5G is the next big thing because 5G is expected to unleash a massive IoT (Internet of
Things) ecosystem where networks can serve communication needs for billions of
connected devices, with the right trade-offs between speed, latency, and cost. 5G speed
can be up to 10Gbps data with only 1-millisecond latency!

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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GROWTH DRIVERS: 5G TECHNOLOGY

• Research firm IDC estimates that worldwide spending on IoT will reach about $1.4 trillion by 2021, up
from an approximate $800 billion in 2017.

• Skyworks CEO, Liam Griffin said he believes there could be 75 billion connected devices by 2025
and that mobile data usage could increase fivefold by 2021.

• IHS Markit, a global information provider, estimates that the total number of IoT devices will surge from
27 billion in 2017 to 125 billion by 2030.

• Cisco estimates that it will be much higher by then, believing that 500 billion devices will be connected
to the internet in 2030.

• Global consulting firm Bain believes spending on the IoT will grow to $520 billion in 2021, more than
double the $235 billion that was spent in 2017.

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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RIGHT BUSINESS
GROWTH DRIVERS: 5G TECHNOLOGY

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RIGHT BUSINESS
BUSINESS RISKS: SCIENCE & TECH RISK

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RIGHT MANAGEMENT
RIGHT MANAGEMENT
MANAGEMENT PROFILE

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MANAGEMENT PROFILE

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MANAGEMENT PROFILE

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MANAGEMENT PROFILE

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MANAGEMENT PROFILE

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RIGHT VALUATION
RIGHT VALUATION

NUMBERS: LET’S LOOK AT VI APP

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RIGHT VALUATION

VALUATION?

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 KALAU NAK TAHU, DATANG ESOK!

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THANK YOU