SEMICONDUCTOR SECTOR REPORT Q1 2018 DEAL DASHBOARD Semiconductor $15.6 Billion Q1 2018 M&A Volume (1) Quarterly M&A Volume ($MM) (1) Quarterly M&A Deal Count (1) Top M&A Transactions - Since 2017 $70,000 20 Acquirer Target Transaction Value ($MM) 18 $59,211 (2) $60,000 K.K. Pangea $17,867 $51,522 Flash Memory 15 $50,000 13 12 $15,004 $40,000 10 10 9 9 $10,312 8 8 $30,000 7 $19,825 $20,000 $17,021 $6,843 $15,646 5 $8,634 $10,000 $6,494 $7,430 $3,200 $3,047 $0 0 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3'17 Q4'17 Q1' 18 Q1' 16 Q2' 16 Q3' 16 Q4' 16 Q1' 17 Q2' 17 Q3' 17 Q4' 17 Q1' 18 $1,833 LTM Semiconductor Performance vs. SPX (3) Median M&A EV / NTM Revenue Over Time (4) 6.0x 50% ^SOX ^SPX 40% 4.4x 4.0x 31% 30% 3.1x 2.8x 20% 2.3x 2.2x 1.9x 2.0x 12% 1.3x 10% 0% 0.0x (10%) 2012 2013 2014 2015 2016 2017 YTD 2018 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Notes: Source: Capital IQ and 451 Group. Q1 financial information as of 03/31/2018. (1) Criteria based on global semiconductor transactions announced with transaction values greater than or equal to $20MM. (2) A special purpose acquisition company formed and controlled by Bain Capital-led consortium. Members of the consortium include: Bain Capital, SK Hynix, Toshiba, Hoya Corp, Apple, Kingston Technology, Seagate Technology and Dell Technologies. (3) PHLX Semiconductor Sector Index (^SOX), used as a proxy for the semiconductor landscape. Top holdings in the ETF include NVDA, AVGO and TXN. 2 (4) Criteria based on global public semiconductor transactions announced with transaction values greater than or equal to $20MM. PERSPECTIVES ON CONSOLIDATION Semiconductor Industry Increasing Rate of Consolidation 10+ 7 5 Today Years Ago Years Ago Years Ago Public Companies(1): Public Companies(1): Public Companies(1): Public Companies(1): 130 121 103 71 (7%) (15%) (31%) Notable Acquisitions Notable Acquisitions Notable Acquisitions $8BN $4.9BN $48BN $37BN Sponsors $18BN $31.5BN $18.2BN $3.6BN $3.6BN K.K. Pangea $17.9BN $17.3BN $4.2BN $3.5BN $15.7BN $15.4BN Notes: 10+, 6 and 4 years ago time periods represent data as of 1/1/2006, 1/1/2011 and 1/1/2013, respectively. “Today” represents data as of 03/31/2018. Deal values represent total transaction value, calculated as implied enterprise value plus cash per Capital IQ. 3 (1) Represents U.S.-based public semiconductor companies with a market capitalization greater than $100MM. MARKET SUMMARY Industry Stock Market Performance Last Twelve Months Last Three Years 50% 120% 40% 100% 30% 80% 20% 60% 10% 40% 0% 20% (10%) 0% (20%) (20%) (30%) (40%) Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Indexed Performance Over Time Sector 3 Months 1 Year 3 Years Automotive (7.0%) 15.5% 75.7% (1) (2) Consumer 4.9% 37.4% 59.2% Automotive Consumer Datacenter (11.7%) (9.4%) 10.8% Diversified (2.3%) 19.0% 65.8% Datacenter(3) Diversified(4) Notes: (1) Automotive: Elmos, Infineon, Melexis NV, Renesas, u-blox Holding. (2) Consumer: Advanced Micro Devices, Ambarella, ams AG, Cirrus Logic, Dialog, Diodes, Intel, Knowles, Marvell, MaxLinear, Nordic, NVIDIA, Qorvo, Qualcomm, ROHM, Skyworks Solutions, Synaptics. (3) Datacenter: Cavium, Inphi, Macom, Mellanox. (4) Diversified: Analog Devices, Broadcom, Integrated Device Technology, Lattice, Maxim Integrated Products, Microchip Technology, Microsemi, Monolithic Power Systems, NXP, 4 ON Semiconductor, Power Integrations, Semtech, Silicon Laboratories, STMicroelectronics, Texas Instruments, Xilinx. MARKET SUMMARY Multiples and Margins by Sub-Sector CY 2018E EV / Revenue (1) CY 2018E EV / EBITDA (1) 5.0x 4.6x 18.0x 15.6x 13.8x 4.0x 3.5x 3.1x 11.4x 12.0x 3.0x 2.5x 9.4x 2.0x 6.0x 1.0x 0.0x 0.0x Diversified Datacenter Consumer Automotive Datacenter Diversified Automotive Consumer CY 2018E Revenue Growth LTM Gross Margin (%) 20.0% 70.0% 59.5% 57.5% 60.0% 47.2% 12.6% 50.0% 45.2% 40.0% 10.0% 7.1% 7.0% 30.0% 20.0% 1.0% 10.0% 0.0% 0.0% Diversified Datacenter Consumer Automotive Automotive DiversifiedNotes: Consumer Datacenter Source: Capital IQ. Sub-Sector details: • Automotive: Elmos, Infineon, Melexis NV, Renesas, u-blox Holding. • Consumer: Advanced Micro Devices, Ambarella, ams AG, Cirrus Logic, Dialog, Diodes, Intel, Knowles, Marvell, MaxLinear, Nordic, NVIDIA, Qorvo, Qualcomm, ROHM, Skyworks Solutions, Synaptics. • Datacenter: Cavium, Inphi, Macom, Mellanox. • Diversified: Analog Devices, Broadcom, Integrated Device Technology, Lattice, Maxim Integrated Products, Microchip Technology, Microsemi, Monolithic Power Systems, NXP, ON Semiconductor, Power Integrations, Semtech, Silicon Laboratories, STMicroelectronics, Texas Instruments, Xilinx. (1) Calculations for revenue and EBITDA multiples exclude the following companies due to pending transactions: Qualcomm, Cavium, NXP 5 Values presented are the medians for their respective sub-sector. MARKET SUMMARY Semiconductor Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth Gross Margin 3/31/2018 Value Debt Value CY 17A CY 18E CY 17A CY 18E CY 17A CY 18E 17A/16A 18E/17A LTM CY18E Automotive Infineon Technologies AG $26.78 $30,270 ($604) $29,667 3.4x 3.2x 13.3x 11.5x 30.6x 22.9x 24.7% 8.2% 37.2% NA Renesas Electronics Corporation $10.07 16,797 794 17,591 2.5 2.3 11.5 9.0 24.5 24.1 28.8% 10.7% 45.2% 45.3% Melexis NV $99.79 3,997 (72) 3,925 6.4 5.5 20.7 17.2 30.3 26.6 27.6% 16.5% 46.0% 46.1% u-blox Holding AG $180.38 1,256 (55) 1,201 2.9 2.5 14.8 11.4 24.0 22.8 16.8% 17.6% 45.6% 44.4% Elmos Semiconductor AG $30.68 604 7 611 2.0 1.8 8.7 7.1 20.4 16.9 24.6% 12.6% 43.9% 44.4% Mean 3.5x 3.0x 13.8x 11.2x 25.9x 22.7x 24.5% 13.1% 43.6% 45.0% Median 2.9 2.5 13.3 11.4 24.5 22.9 24.7% 12.6% 45.2% 44.8% Consumer Intel Corporation $52.08 $243,734 $12,811 $256,545 4.1x 3.9x 9.7x 9.5x 26.2x 14.5x 5.7% 3.5% 62.3% 61.6% NVIDIA Corporation $231.59 140,112 (5,103) 135,009 13.9 10.9 39.6 29.3 48.0 34.2 40.6% 27.3% 59.9% 62.3% Skyworks Solutions, Inc. $100.26 18,264 (1,682) 16,582 4.4 4.1 10.5 9.3 22.7 13.4 15.6% 7.0% 50.5% NA Advanced Micro Devices, Inc. $10.05 9,740 210 9,950 1.9 1.6 28.6 15.8 NM 27.2 24.7% 18.0% 34.2% 36.6% ROHM Co., Ltd. $95.38 10,089 (2,745) 7,344 2.1 1.9 8.7 6.9 31.7 20.9 18.4% 12.6% 35.7% NA Qorvo, Inc. $70.45 8,911 247 9,159 3.1 3.0 11.0 8.4 NM 12.3 (1.6%) 4.8% 38.2% NA Marvell Technology Group Ltd. $21.00 10,414 (1,841) 8,573 3.6 3.4 14.1 11.0 24.7 15.6 4.7% 3.7% 60.7% 62.6% QUALCOMM Incorporated $55.41 82,027 (12,557) 69,470 3.1 3.2 11.3 9.9 NM 16.6 (6.0%) (1.8%) 57.3% NA ams AG $104.73 8,841 1,040 9,881 7.7 4.8 36.6 15.1 86.4 21.1 120.0% 60.8% 38.5% 43.5% Cirrus Logic, Inc. $40.63 2,575 (239) 2,335 1.5 1.5 6.4 6.0 14.7 10.8 7.9% (3.2%) 49.6% NA Dialog Semiconductor Plc $23.77 1,746 (470) 1,276 0.9 0.8 4.9 3.7 10.8 9.6 13.0% 15.4% 45.9% 46.5% Ambarella, Inc. $48.99 1,632 (435) 1,197 4.1 4.0 45.7 21.8 89.1 34.9 (4.8%) 0.3% 63.6% 61.5% MaxLinear, Inc. $22.75 1,534 276 1,809 4.3 3.8 19.6 11.8 NM 13.7 8.4% 13.3% 55.6% 63.2% Diodes Incorporated $30.46 1,497 60 1,557 1.5 1.4 8.1 6.4 NM 16.1 11.9% 7.5% 34.1% 36.3% Knowles Corporation $12.59 1,132 96 1,227 1.6 1.5 9.3 7.4 NM 14.1 (1.5%) 7.0% 40.1% 39.6% Synaptics Incorporated $45.73 1,578 190 1,768 1.0 1.0 11.9 7.0 NM 9.6 9.2% 0.0% 30.5% NA Nordic Semiconductor ASA $5.95 962 (17) 946 4.0 3.3 55.0 23.3 NM 61.1 19.4% 21.9% 47.2% 48.4% Mean 3.7x 3.2x 20.0x 12.0x 39.4x 20.6x 16.8% 11.6% 47.3% 51.1% Median 3.3 3.1 11.5 9.4 26.2 15.1 9.2% 7.0% 47.2% 48.4% Notes: Source: Capital IQ and Capital IQ estimates.