Slides
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1 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | © onsemi 2025 | Public Information Quarterly Investor Presentation Second Quarter 2025 Content to the right of this line Content to the Left of this line Content to the right of this line Content to the Left of this line
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2 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Safe Harbor Statement and Non - GAAP and Forecast Information This presentation includes “forward - looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, a s amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of histori cal facts, included or incorporated in this presentation could be deemed forward - looking statements, particularly statements about t he future financial performance of onsemi, including financial guidance for the third quarter of 2025. Forward - looking statements a re often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “an ticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward - looking statements in this docum ent are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other facto rs that could cause results or events to differ materially from those expressed in the forward - looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2024 Annual Report on Form 10 - K fi led with the Securities and Exchange Commission (“SEC”) on February 10, 2025 (the “2024 Form 10 - K”) and from time to time in our other SEC reports. You are cautioned not to place undue reliance on forward - looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a hig h degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this docum ent , our 2024 Form 10 - K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or op erating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or pa rt of your investment. All forward - looking statements attributable to us or persons acting on our behalf are expressly qualified in their e ntirety by this cautionary statement. Our earnings release and this presentation include certain non - GAAP financial measures. Reconciliations of these non - GAAP financ ial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non - GAAP Reconciliation.
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3 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | 3 © onsemi 2025 | Public Information Second Quarter 2025 Financial & Business Update
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4 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Q2’25 Highlights Signs of stabilization across end - markets Treo funnel expanded 2X Q/Q driven by multiple products across the platform Revenue and gross margin exceed mid - point of guidance China Silicon Carbide revenue doubled Q/Q driven by ramp of new vehicles Returned 107% of Free Cash Flow YTD to shareholders through share repurchases Shipped over 5 million units of Treo - manufactured products from our EFK fab
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5 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Non - GAAP Financial Performance Revenue Gross Margin Operating Margin LTM Free Cash Flow $1.47B +2% Q/Q 37.6% - 240 bps Q/Q 17.3% - 90 bps Q/Q $0.53 - $0.02 Q/Q 20.1% - 90 bps Q/Q Diluted EPS Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation. $329m Revenue Other 16% Q/Q $406m Revenue Industrial 2 % Q/Q $733m Revenue Automotive 4% Q/Q
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6 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Q3’25 Guidance Highlights Revenue GAAP: $1,465 to $1,565m Non - GAAP: $1,465 to $1,565m EPS GAAP: $0.51 to $0.61 Non - GAAP: $0.54 to $0.64 GM GAAP: 36.4% to 38.4% Non - GAAP: 36.5% to 38.5% OPEX GAAP: $294 to $309m Non - GAAP: $280 to $295m Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation.
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7 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | 7 © onsemi 2025 | Public Information About onsemi
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8 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | onsemi at a glance We push innovation to create intelligent power and sensing technologies that solve the most challenging customer problems Our employees are inspired to go above and beyond to increase stakeholder value through high quality and high value products and services Our Mission $7.1B 2024 Revenue 500 S&P 500® index 100 Nasdaq 100® company ~26K 1 Employees Worldwide 37K+ Portfolio SKUs 1. As of year-end 2024
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9 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Accelerating Shareholder Value Shareholder Value Revenue Growth Free Cash Flow Gross Margin Shareholder Capital Return Shareholder Capital Returns • Shareholder-friendly capital allocation policy • Return 100% of Free Cash Flow through share repurchases through the remainder of 2025 • $3.0B share repurchase authorization Free Cash Flow • Significant growth in Free Cash Flow margin to 25-30% • Capital efficiency through high ROIC investments and working capital management Revenue Growth • Sustainable Ecosystem to drive revenue 3X the industry growth1 • Aligned to fast-growing secular megatrends of Automotive and Industrial • SiC growth to 35-40% market share2 Gross Margin • Significant gross margin expansion to 53% • Fab Right: optimize manufacturing network for cost efficiencies. Maximize utilization with flex to external capacity • Ramp new and differentiated products • Accretive SiC margins at scale Notes: 1. onsemi estimates based on current market projections, excludes Memory 2. Yole SiC market forecast: 2022-27 CAGR of 33%
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10 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Power of the onsemi Portfolio Sensor Interfaces Gate Drivers Image Sensors Controllers SiC & Si Power Depth Sensors SignalingIsolators eePROM Logic Comms Interfaces Amplifier / Comparators “Our broad portfolio of products has enabled us to become a one-stop shop for our customers and the source for the most optimized solutions.” - Hassane El-Khoury
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11 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | $44B TAM growing at ~18% CAGR Power of the Portfolio Driving onsemi Growth Electric Vehicles $15.5B 25% CAGR AI Data Center $4.4B 18.9% CAGR Advanced Safety $5.6B 15% CAGR Notes: Based on current market projections, 2022-2027 AI Data Center from 2024-2028 See Slide 29 for notes Factory Automation $9.1B 8% CAGR Charging $1.1B 26% CAGR Energy Infrastructure $7.8B 16% CAGR
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12 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Enabling a Sustainable Ecosystem Premium Business in Intelligent Power and Sensing Wide Bandgap ▪ SiC MOSFET, JFET Capability ▪ Vertically integrated manufacturing at scale ▪ Industry-leading innovative device, advanced packaging, system solutions Silicon Power – IGBT, FET ▪ Leading FET and IGBT supplier with growing market share ▪ Expanding BOM coverage with new products ▪ Attaching AI data center power in tray, rack and UPS Power Management ICs ▪ Double down on $14B TAM with >70% gross margin ▪ Deliver system-level value with gate drivers and controllers ▪ Expand leadership to full Power Tree solutions INTELLIGENT POWER SOLUTIONS enabling customers to exceed range targets with lower weight and reduce system cost through unparalleled efficiency ▪ #1 position in Image Sensors for Automotive and Industrial ▪ Growing in Machine Vision ▪ 68% market share in ADAS ▪ 27% market share in Industrial INTELLIGENT SENSING SOLUTIONS offering the proprietary features customers require to meet their most demanding use cases ▪ 8MP ramping with ~2.5x ASP uplift ▪ Deliver high margins and the most profitable sensor business in the industry ▪ Also, #1 in Ultrasonic and Inductive Sensing for Automotive and Industrial See Slide 29 for notes
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13 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | The onsemi Advantage: Intelligent Power SUPPLY ▪ History of vertical integration ▪ Volume SiC boule growth, wafering, substrate, epitaxy, device fabrication ▪ Best - in - class integrated modules, discrete package solutions and known good die SCALE ▪ A multi - decade history in Automotive and Industrial markets ▪ High - quality, high - volume manufacturing ▪ Able to ramp in line with customer expectations SCOPE ▪ Suite of sustainable solutions from energy generation to energy consumption ▪ Depth and breadth of power technologies ▪ Supporting portfolio for optimized solutions SUPERIOR TECHNOLOGY ▪ Lead with die performance ▪ Differentiate with package innovation ▪ Die + Package = THE most optimal solution on the planet Supply Scale Superior Technology Scope
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14 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | SiC portfolio includes FETs and JFETs across voltages Most comprehensive SiC product portfolio Secured wins with multiple OEMs for 4th Generation Trench MOSFET Extending Technology Lead with Trench FET From boules to modules End - to - End Supply Chain Share gains to 35 - 40% of market Expect to Outgrow the Market … onsemi’s SiC Leadership
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15 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Superior Technology Automotive & Industrial Focus Decades of Innovation Solution Enablement • Installed base of >450M automotive sensors • Enabling Factory Automation • 45+ years of sustained innovation • High Dynamic Range • Industry - leading 8 megapixel • Devware • Ref Designs • Ecosystem onsemi’s Image Sensor onsemi’s Image Sensor The onsemi Advantage: Intelligent Sensing
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16 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | onsemi. Everywhere in Automotive Today. Dots represent onsemi devices designed in BMW’s electric i7 vehicles Silicon Carbide Silicon Power Power ICs Sensor Interfaces Image Sensors Other Other ~500 onsemi products in production vehicles today
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17 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Power Delivery from Grid to Processor in AI Data Center Power Supply 3Ø 480VAC Battery Back - up Peak Load Shaving Uninterruptable Power Supply Power Rack Compute Rack PDU PDU Shelf PLSS Shelf PSU Shelf BBU Shelf Water Pump Lighting Utility Grid Power Transformer Diesel Generator ATS 3Ø 20kVAC 3Ø 400/480VAC Air Conditioner UPS AC→DC→AC HV PLSS DC → DC HV BBU DC → DC HV PSU AC → DC Intermediated Bus Converters VCore 12V DC 0.8V DC Hot Swap 400V DC AI Compute Tray 50V DC GPU HV IBC DC → DC DC → DC IBC 400V DC Bus Bar Multiple Compute Racks per Data Center Multiple Blade Trays per Compute Rack Multiple Power Racks per Data Center SiC JFET $135 per 30kW SiC JFET $160 per 30kW SiC JFET $135 per 30kW Smart Power Stage Multiphase Controllers Point of Load FETs Drivers Controllers GaN Drivers Controllers DC Hot Swap VCore DC → DC FETs eFuse Expanding onsemi Opportunity 40kW, ~$2,500/rack 120kW, ~$9,500/rack 600kW - 1MW, ~$50,000/rack 2025 2024 2027+ 400VDC Bus System Architecture (1MW) Source: onsemi estimates based on current market projections
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18 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Treo Drives Gross Margin Expansion Shipped over 5 million units from our East Fishkill facility Result of two years investment in high value, differentiated products Treo delivers disruptive, high value platform with up to 70% gross margin Expanding margins with Treo platform replacing existing sunsetting products over multiple years Leveraging previous brownfield investments in 300mm fab and back - end facilities leading to best - in - class ROIC
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19 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | onsemi. Driving Innovation in Industrial. onsemi delivers solutions that create the infrastructure needed to generate, store and deploy sustainable industrial energy across a network • Propelling the sustainable energy evolution in the industrial market with our intelligent power technologies for the highest efficiency solar strings, industrial power and storage systems • Enabling Industry 4.0 with our intelligent sensing technologies for smarter factories and buildings Medical Energy Infrastructure Industrial Automation
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20 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Top 20 customers represent ~40% of revenue and each buy ~600 products on average Customer Needs: ▪ Best-in-Class Performance ▪ Reliable suppliers at scale ▪ Tighter supplier base ▪ Competitive system cost onsemi Delivers: ▪ Industry-leading products ▪ Vertically integrated supply chain ▪ Broad portfolio of products ▪ Solution optimization across BOM ~600 silicon carbide customers Highly Diversified Customer Base
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21 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | onsemi’s Decarbonization Commitments Near - Term Science Based Targets Validated View the most recent onsemi Sustainability Report at: https://www.onsemi.com/site/pdf/sustainability - report.pdf See Slide 29 for notes Near - Term Targets Validated by SBTi in December 2024 • By 2029, 71.3% of suppliers will have science - based targets • By 2034, Scope 1 & 2 emissions to reduce by 58.8% and Fuel and Energy Related (FERA) portion of Scope 3 to reduce by 35.0% Net Zero 2040 Consistent commitment to achieve net zero emissions by 2040 Progress towards Greenhouse Gas Targets • In 2024, 15% reduction of Scope 1 & 2 emissions vs. 2022 baseline • As of 2024, ~ 35% of suppliers indicate they will commit to science - based target Water 48% water recycled in 2024 6% Y/Y increase in water recycling rate in 2024
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22 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | 2024 Actual Revenue $7.08B Gross Margin 45.4% Operating Expenses 17.6% Operating Margin 27.9% CapEx 9.8% Free Cash Flow 17.1% Accelerating the Financial Model 25 - 30% • Return 100% of Free Cash Flow through share repurchases through remainder of 2025 53% • Mix shift, new products & SiC ramp at accretive margins • Optimize cost through Fab Right 13% • Invest in R&D for long - term growth • Digital First - embrace new technologies & data analytics 40% • Grow Operating Income faster than Revenue Mid - single digit range • Market success drives investments • High ROIC brownfield investments 2027 Target 10 - 12% CAGR • Grow at ~3x the semiconductor industry Notes: 2027 Target based on onsemi internal estimates. Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation.
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23 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | 23 © onsemi 2025 | Public Information Appendix
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24 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | 2024 Actual Q1’25 Actual Q2’25 Actual Q3’25 Guide 2027 Target Revenue ($ millions) 7,082.3 1,445.7 1,468.7 1,465 to 1,565 10 - 12% CAGR • Q2’25 revenue above the midpoint of guidance Gross Margin 45.5% 40.0% 37.6% 36.5% to 38.5% 53% • Q2’25 gross margin slightly above the midpoint of guidance Operating Expenses ($ millions) 1,248.5 314.5 297.7 280 to 295 13% • Active cost control • Investing through the downturn in strategic areas Operating Margin 27.9% 18.3% 17.3% --- 40% • Structural changes to deliver operational efficiencies CapEx ($ millions) 694.0 147.6 78.2 35 to 50 Mid - single digit range • Remain on track to reduce capital intensity in 2025 to mid - single digit percentage range LTM Free Cash Flow 17.1% 21.0% 20.1% --- 25 - 30% • Continue commitment to capital returns • Share repurchase target of 100% of FCF for the remainder of 2025 Earnings per Share $3.98 $0.55 $0.53 $0.54 to $0.64 --- • Q2’25 EPS at midpoint of guidance Our earnings release and this presentation include certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP are included in our earnings release, which is posted separately on our website in the "Investor Relations" section. See Appendix for GAAP to Non-GAAP Reconciliation. Non - GAAP Financial Performance
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25 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | GAAP Special Items** Non - GAAP*** Revenue $1,465 to $1,565 million - $1,465 to $1,565 million Gross Margin 36.4% to 38.4% 0.1% 36.5% to 38.5% Operating Expenses $294 to $309 million $14 million $280 to $295 million Other Income and Expense (including interest), net ($8 million) - ($8 million) Diluted Earnings Per Share $0.51 to $0.61 $0.03 $0.54 to $0.64 Diluted Shares Outstanding * 410 million - 410 million Q3’25 Guidance
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26 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Notes to Q3’25 Guidance * Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, t he incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the q uar terly average stock price per share exceeds $52.97 for the 0% Notes, and $103.87 for the 0.50% Notes, the non - GAAP diluted share count and non - GAAP net income per s hare include the anti - dilutive impact of the hedge transactions entered concurrently with the 0% Notes, and the 0.50% Notes, respectively. At an average sto ck price per share between $52.97 and $74.34 for the 0% Notes, and $103.87 and $156.78 for the 0.50% Notes, the hedging activity offsets the potentially dilutive e ffe ct of the 0% Notes, and the 0.50% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, and $156.78 for the 0.50% No tes , the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non - GAAP diluted share counts are ba sed on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher. ** Special items may include: amortization of acquisition - related intangibles; expensing of appraised inventory fair market value step - up; restructuring - related cost of revenue charges; non - recurring facility costs; in - process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certa in other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliatio n o f the non - GAAP measures. The reconciliation that is unavailable would include a forward - looking income statement, balance sheet and statement of cash flows in accordance wi th GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non - GAAP operating expense outlook. *** We believe these non - GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period - to - period comparisons. However, we do not, and you should not, re ly on non - GAAP financial measures alone as measures of our performance. We believe that non - GAAP financial measures reflect an additional way of viewing aspects o f our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our relea ses , provide a more complete understanding of factors and trends affecting our business. Because non - GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non - GAAP financial measures, even if they have similar names.
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27 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | GAAP to Non - GAAP Reconciliation ( $ in Millions) FY2023 FY2024 Q1’25 Q2’25 Reconciliation of GAAP to Non - GAAP Gross Margin: GAAP Gross Margin 47.1% 45.4% 20.3% 37.6% a) Amortization of acquisition - related intangible assets 0.1% 0.1% 0.1% 0.1% b) Restructuring - related inventory and other charges - - 19.6% - 0.1% Non - GAAP Gross Margin 47.1% 45.5% 40.0% 37.6% Reconciliation of GAAP to Non - GAAP Operating Expenses: GAAP Operating Expenses $ 1,344.8 $ 1,448.4 $ 867.5 $ 358.5 a) Amortization of acquisition - related intangible assets (51.1) (52.0) (11.4) (11.0) b) Restructuring, asset impairments and other, net (74.9) (133.9) (539.3) (49.2) c) Third party acquisition and divestiture - related costs 1.3 (14.0) (2.3) (0.6) Non - GAAP Operating Expenses $ 1,220.1 $ 1,248.5 $ 314.5 $ 297.7 Reconciliation of GAAP to Non - GAAP Operating Income: GAAP Operating Income $ 2,538.7 $ 1,767.7 $ (573.7) $ 193.4 a) Amortization of acquisition - related intangible assets 56.8 58.3 12.7 12.3 b) Restructuring, asset impairments and other, net 74.9 133.9 539.3 49.2 c) Third party acquisition and divestiture - related costs (1.3) 14.0 2.3 0.6 d) Impact of business wind down (3.9) - - - e) Restructuring - related inventory and other charges - - 283.4 (1.9) f) Amortization of fair market value step - up of inventory - - - 1.2 Non - GAAP Operating Income $ 2,665.2 $ 1,973.9 $ 264.0 $ 254.8 Reconciliation of GAAP to Non - GAAP Operating Margin: GAAP Operating Margin 30.8% 25.0% - 39.7% 13.2% a) Amortization of acquisition - related intangible assets 0.7% 0.8% 0.9% 0.8% b) Restructuring, asset impairments and other, net 0.9% 1.9% 37.3% 3.3% c) Third party acquisition and divestiture - related costs - 0.2% 0.2% - d) Restructuring - related inventory and other charges 19.6% - 0.1% e) Amortization of fair market value step - up of inventory - - - 0.1% Non - GAAP Operating Margin 32.3% 27.9% 18.3% 17.3% Free Cash Flow: LTM Free Cash Flow $ 438.4 $ 1,212.4 $ 1,407.0 $ 1,287.3 LTM Revenue 8,253.0 7,082.3 6,665.3 6,398.8 LTM Cash Flow Margin 5.3% 17.1% 21.0% 20.1%
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28 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | GAAP to Non - GAAP Reconciliation ( $ in Millions, except share count and EPS) FY2023 FY2024 Q1’25 Q2’25 Reconciliation of GAAP to Non - GAAP Net Income Attributable to ON Semiconductor Corporation: GAAP Net Income Attributable to ON Semiconductor Corporation $ 2,183.7 $ 1,572.8 $ (486.1) $170.3 a) Amortization of acquisition - related intangible assets 56.8 58.3 12.7 12.3 b) Restructuring, asset impairments and other, net 74.9 133.9 539.3 49.2 c) Third party acquisition and divestiture - related costs (1.3) 14.0 2.3 0.6 d) Loss on debt refinancing and prepayment 13.3 - - - e) Actuarial gains (losses) on pension plans and other pension benefits 4.0 (12.2) - - f) (Gain) loss on divestiture of a business 0.7 - - - g) Adjustment of income taxes (72.0) (62.2) (120.0) (10.4) h) Impact of business wind down (3.9) - - - i) Restructuring - related inventory and other charges - - 283.4 (1.9) j) Amortization of fair market value step - up of inventory - - - 1.2 Non - GAAP Net Income Attributable to ON Semiconductor Corporation $ 2,256.2 $ 1,704.6 $ 231.6 $ 221.3 Reconciliation of GAAP to Non - GAAP Diluted Shares Outstanding: GAAP Diluted Shares Outstanding 446.8 432.7 421.3 414.9 Less: dilutive shares attributable to convertible notes (9.1) (4.0) - - Add: dilutive shares attributable to convertible notes - - 0.4 - Non - GAAP Diluted Shares Outstanding 437.7 428.7 421.7 414.9 Non - GAAP Diluted Earnings Per Share: Non - GAAP net income for diluted earnings per share $ 2,257.5 $ 1,704.6 $ 231.6 $ 221.3 Non - GAAP diluted shares outstanding 437.7 428.7 421.7 414.9 Non - GAAP Diluted Earnings Per Share $ 5.16 $ 3.98 $ 0.55 $ 0.53
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29 Content to the Right of this line Content to the Left of this line Content to the Right of this line Content to the Left of this line Content Below this line Content Above this line Content Below this line Content Above this line Color Swatches © onsemi 2025 | Public Information | Notes & Sources Power of the Portfolio Driving onsemi Growth (Slide 12) • onsemi estimates based on current market projections • LMC Automotive: Global Hybrid & Electric Vehicle Forecast -Quarter 4, 2022 • Omdia: Power IC Market Tracker, Sep’22 • $43B TAM for sustainable ecosystem for onsemi estimates based on current market projections and expected to grow at 16%. (202 2-2027) • Semiconductor TAM, excludes memory and expected to grow at ~4% Enabling a Sustainable Ecosystem: Premium Business in Intelligent Power and Sensing (Slide 13) • onsemi estimates • Omdia: 1Q23 -Semiconductor Device Data By Application Markets • Omdia: Industrial Semiconductor Market Tracker –3Q22 Database, Jan'23 • Yole: Imaging for Automotive 2022 • Omdia: Power Semiconductors in Automotive Report –2022 Database, 5/26/22 • LMC Automotive: Global Hybrid & Electric Vehicle Forecast-Quarter 4, 2022 • Omdia: Power IC Market Tracker, Sep'22 • Yole: Silicon Carbide Forecast 2023 • Bank of America Research • Yole: 2022-27 SiC market forecast of 33% CAGR • TSR: Automotive Camera Market Analysis 2021-2022 • Yole: Status of CMOS Image Sensor Industry 2021 Report onsemi’s Path to Net Zero by 2040 (Slide 22) • 2024 GHG emissions have received third party Limited Assurance • 2029 Near Term Science Based Target refers to 71.3% of suppliers by emissions to have their own science-based target. 2024 progress (35%) reflects supplier-reported future commitments.
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