Texas Instruments Investor Presentation — February 2019

Document content

Capital management strategy

Senior vice president, chief financial officer

Vice president, head of investor relations

February 5, 2019 2 Agenda for this call

* Free cash flow (FCF) = Cash flow from operations minus Capital expenditures •Capital management strategy and scorecard

•Historical view of our capital allocation

•R&D allocation priorities and results

•300mm Analog update

•Free cash flow* growth and outlook

3 Key takeaways from our discussion today

•We remain focused on consistent execution of our capital management strategy.

•Our business model is designed around four sustainable competitive advantages. We

invest with a long -term view to strengthen and leverage these competitive advantages.

•Our disciplined allocation of resources to R&D and our initiatives are delivering growth

in the best products (analog and embedded) and the best markets (industrial and

•Our 300mm Analog manufacturing strategy is a unique advantage and will provide

benefits for a long time.

•We remain committed to returning free cash flow to owners. 4

Maximize long -term growth of

free cash flow per share

1.Great business model: built around

four sustainable competitive advantages

2.Discipline: allocate capital to the

3.Efficiency: constantly strive for more

output per $ of input Capital management: objective and strategy Grow, generate and return

•TI is in a unique class of companies able to grow, generate and return cash to

shareholders for a long time to come.

•Focused on the best products and best markets within the semiconductor industry:

–Best products: analog and embedded – large, fragmented, used in everything electronic

‒Best markets: industrial and automotive – fastest growing due to increasing content

Preview truncated — download the full document for the complete content.