Qualcomm : 2023 Annual Meeting Transcript

Qualcomm Incorporated

2023 Annual Meeting of Stockholders

March 8, 2023 9:30 AM PST

Corporate Participants:

Akash Palkhiwala - Qualcomm Incorporated, Chief Financial Officer

Cristiano R. Amon - Qualcomm Incorporated, President and Chief Executive Officer Heather Ace - Qualcomm Incorporated, Chief Human Resources Officer

Mark D. McLaughlin - Qualcomm Incorporated, Independent Chairman of the Board

Presentation:

Announcer

Ladies and gentlemen, please welcome Qualcomm Chairman of the Board, Mark McLaughlin.

Mark D. McLaughlin - Qualcomm Incorporated, Independent Chairman of the Board

Thank you. Good morning, ladies and gentlemen, and welcome to Qualcomm's 2023 Annual Meeting of Stockholders. We're happy to be holding this meeting in person and we'd like to acknowledge all those watching online as well.

Before I call the meeting to order, I'd like to introduce the other members of the board who are with us this morning or joining via webcast. Sylvia Acevedo, Mark Fields, Jeff Henderson, Greg Johnson, Ann Livermore, Jamie Miller, Irene Rosenfeld, Neil Smith, Jean-Pascal Tricoire and Tony Vinciquerra.

And I would also like to introduce our executives who are with us this morning. Cristiano Amon, President, and Chief Executive Officer. And Cristiano is also a director on the board. Akash Palkhiwala, our Chief Financial Officer; Ann Chaplin, our General Counsel, and Corporate Secretary; Alex Rogers, President QTL and Global Affairs; Heather Ace, Chief Human Resources Officer; Dr. Jim Thompson, Chief Technology Officer; and Jim Cathey, our Chief Commercial Officer. Finally, I'd also like to also acknowledge Dr. Irwin Jacobs who is in attendance today. Thank you, sir, for being with us.

In addition, with us is Bob Barrett with the accounting firm PricewaterhouseCoopers, LLP, the company's independent public accountants. Mr. Barrett will be available to answer any questions concerning PricewaterhouseCoopers and its services to the company.

Please note that we will post both a replay and a transcript of this meeting on our website following the meeting.

Qualcomm's 2023 Annual Meeting of Stockholders will now come to order. I will act as the chair of this meeting and Ann Chaplin will act as our secretary. After the business

Qualcomm Incorporated

2023 Annual Meeting of Stockholders

portion of this meeting, Cristiano will give a business update and the executive team will be available to take questions.

The polls are open. Stockholders who have already voted, either by mail, the internet or telephone, need not vote today unless you wish to change your vote. Ballots are available to anyone who did not pick one up at the registration table and would like one. Please raise your hand at this time if you would like a ballot. Okay, great.

At this meeting is a complete list of stockholders of record of the company's common stock on January 9, 2023 which is the record date for this meeting. And I also have an affidavit certifying that on January 19, 2023, a notice of the 2023 Annual Meeting of Stockholders was distributed to stockholders of record as of the close of business on the record date. I've appointed Mr. Peter Descovich to act as the inspector of election for this meeting. Mr. Descovich has taken as subscribed to the customary oath of office to execute his duties with strict impartiality. The inspector's function is to decide upon the qualification of voters, to accept their votes and when balloting is complete, to tally the final votes.

Mr. Descovich is also on the line with us today. And I've been informed by the Inspector of Election, that at least a majority of the company's outstanding shares of common stock are present in person or by proxy. This constitutes a quorum for the transaction of business. Since the requirements for calling this meeting have been duly observed and there are represented here more than the necessary number of shares of the outstanding common stock of the company to conduct - constitute a quorum, I hereby declare this meeting to be duly constituted for the transaction of all business.

The formal business of this meeting is listed in the Notice of Annual Meeting and proxy statement that was provided to stockholders. There are four proposals to be considered by stockholders at this meeting and I will now place each of these proposals before the meeting.

The first item of business is proposal number One which is the election of 12 directors to serve until next year's Annual Meeting of Stockholders. The board has nominated the following persons for election as directors of the company and recommends that the stockholders vote for each nominee. Those are Sylvia Acevedo, Cristiano Amon, Mark Fields, Jeff Henderson, Greg Johnson, Ann Livermore, Mark McLaughlin, Jamie Miller, Irene Rosenfeld, Neil Smith, Jean-Pascal Tricoire and Tony Vinciquerra. These nominations need no second. Since no other director nominations were received prior to the deadline specified in our bylaws and stated in last year's proxy materials, the nominations are now closed.

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Qualcomm Incorporated

2023 Annual Meeting of Stockholders

The next item of business is proposal Two; the ratification of this election of PricewaterhouseCoopers, LLP as the company's independent public accounts for our fiscal year ending September 24, 2023. And the board recommends its stockholders vote for this proposal.

And the next item of business is proposal number Three which askes stockholders to approve the Qualcomm Incorporated 2023 Long Term Incentive Plan described in the proxy. And the board recommends that the stockholders vote for this proposal.

And finally, proposal number four, which asks stockholders to adopt the resolution described in the proxy statement, to approve the compensation of the company's named executive officers on a nonbinding advisory basis. And the board recommends that the stockholders vote for this proposal. That concludes the proposals for today's meeting. Are there any questions on any of these proposals?

If you wish to vote by ballot on these matters, please hold up your ballot at this time so that an usher may collect it. Anybody going to collect them? Hang on a second, here we go.

Okay, looks like we have all the ballots. Thank you. I now declare the polls closed. The Inspector of Election has informed me that based on preliminary count of the proxies received, that all nominees for directors have been elected. The selection of PricewaterhouseCoopers as the company's independent public accountants for our fiscal year ending September 24, 2023, was ratified. The company's 2023 Long Term Incentive Plan has been approved and the stockholder advisory vote of the compensation of the company's named executive officers has been approved. The final voting results will be published in our website and reported within four business days on a Form 8K which will be filed with the Security and Exchange Commission. This ends the formal business of our meeting.

On behalf of Qualcomm's Board of Directors and Executive Team, wish to thank you for your continued support of Qualcomm. Cristiano will now provide a brief business overview after which we will have a question-and-answer session and this meeting will conclude. Any stockholder with questions should form a line at the microphones in the aisles after Cristiano's presentation. And in fairness to all the stockholders, you'll be permitted up to two minutes for your questions or comments. If you have a question that we are not able to address, please contact our investor relations group.

Please note that we may make forward looking statements during the presentation or the question-and-answer session regarding future events or results of the company. Actual events or results may differ materially from those in the forward-looking statements. Please refer to the risk factor section of the company's most recent

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Qualcomm Incorporated

2023 Annual Meeting of Stockholders

quarterly report on Form 10-Q for a description of important factors that could cause actual items or results to differ materially from those in the forward-looking statements. And now, I'd like to turn the meeting over to Cristiano. Thank you for being here.

Cristiano R. Amon - Qualcomm Incorporated, President and Chief Executive Officer

Good morning, everyone. Welcome to the Annual Meeting of Stockholders. Also, those that are watching us online. We're very excited about the future of Qualcomm. And we continue to believe that the best of Qualcomm is yet to come.

We are executing on our strategy. We're beyond connecting everyone. We have an opportunity to connect everything and make everything intelligently connected. The company's also changing from a communications company to a connected processor and intelligence company for the intelligent edge. That is a great opportunity to expand our addressable market and it's an opportunity to continue to change Qualcomm by innovation and becoming this great innovation engine. Not only for the wireless industry but for advanced artificial intelligence and processor industry.

Our role is to bring data processing and intelligence to the edge enabling cloud edge convergency. We're quickly moving to a world where everything is connected to the cloud 100% of the time. There are digital twins of everything. And Qualcomm will play a role connecting and make those devices intelligent outside the data center. And that's the opportunity for us.

We are in a unique position with our one technology roadmap. The roadmap that we developed for mobile enabled the company to be not only a leader in wireless communication - one of the things that is probably not well known from Qualcomm, besides being the first with every cellular technology, we're also the number one in the world with Wi-Fi technologies. But we also have developed a number of computing capabilities as our most beloved device, the smartphone, became one of the most important computers in the world as well as development platform. And we're taking that capability to every other industry.

We're in a unique position that the three pillars of our technology, which is everything wireless communication, high performance, low power compute and artificial intelligence can be taken to every industry. We can scale for a phone, all the way to an autonomous car and to a number of different industrial applications. And as our roadmap enables those capabilities, Qualcomm business is expanding to all of those different markets. From handsets to automotive to the broader Internet of Things across consumer networking and the participating in the next industrial revolution that is happening as digital transformation is now part of every enterprise.

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Qualcomm Incorporated

2023 Annual Meeting of Stockholders

We will always remain the company that sets the pace of innovation in wireless. And we continue to define a new standard for smartphones. You know, the latest chipset from Qualcomm, the Snapdragon 8 Gen 2, has been the first in the world with a number of different technologies, including the ability to integrate artificial intelligence in every single capability of the chipset. Our modem is intelligent. It learns about yourself, about how to use it. It gets better over time. Our camera is intelligent. And we have one of the largest neuro processor unit for AI into a smartphone.

An example of that was recently demonstrated at the Mobile World Congress. Our stable diffusion demo was the most popular demo at MWC. And what really, what it's doing is showing that we can run what is called a large language model of artificial intelligence with over 1 billion parameters into the smartphone in the palm of your hand. That creates an incredible opportunity. I'm sure many of you have heard about the applications of those large language models of AI such as ChatGPT. And we have the ability to run this locally into your smartphone as well into other devices as well.

I also wanted to highlight that Snapdragon is really becoming synonymous with flagship smartphone. I cannot pick a better example to describe that to you which is when Samsung, in their Galaxy product line, heavily advertised Snapdragon as one of the key capabilities of the device. The Snapdragon continues to expand within the ecosystem. We have 65 designs today across every single flagship in the Android operating system. And we'll continue to create opportunities for Qualcomm, especially as we look at the next innovation cycle beyond 5G, as we had said in the early days of 5G. 5G will democratize artificial intelligence and will bring that to a scale. And I think we're starting to demonstrate that the next big upgrade cycle of smartphone is the ability to run, you know, complex artificial intelligence models into your device.

I also want to highlight what Qualcomm is doing in the automotive business. The automotive business has been one of the brightest spots of our company's expansion and diversification. And Qualcomm really became one of the leading providers of technology to the automotive industry. Car companies are asked two things of their investors. First question is, are you electrical. The second question is, are you digital. And that's where we found ourselves really getting support for the industry because we developed something very unique.

The Snapdragon Digital Chassis is really a digital platform for the car that enables the car to be connected to the cloud 100% of the time. It enables a digital cockpit experience including new services for the automakers. It enables an ADAS, assisted driving and autonomy platform. We have over 30 billion design pipeline. And I think we're just at the beginning of a very significant opportunity.

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