Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q4 2023 Earnings Presentation
22 slides from Diodes's earnings presentation, Feb 6, 2024
Slide 1: Fourth Quarter and Fiscal 2023 Financial Results
Fourth Quarter and Fiscal 2023 Financial Results Diodes Incorporated (DIOD) Plano, TX, USA February 6, 2024 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in
Slide 3: About Diodes Incorporated
About Diodes Incorporated Vision: Profitability Growth to Maximize Shareholder Value Our Core Values: Integrity, Commitment, Innovation Diodes delivers high-quality (analog, discrete, logic and mixed signal) semiconductor products to the world’s leading companies in the automotive, industrial, compu
Slide 4: Longer Term Corporate Objectives
Longer Term $B Corporate Objectives Goal 1: $1B Market Cap Goal 2: $1B Annual Revenue Goal 3: $1B Gross Profit Goal 4: $1B Profit Before Tax $1B Market Cap $1B Revenue $1B Gross Profit $1B PBT - 2010 - 2017 2025 Target: $1B Gross profit Gross Margin: 40% Revenue: $2.5B by 2025
Slide 5: Targeted Market Segment Goal
Targeted Market Segment Goal Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems and precision controls, and AIoT Consumer IoT: wearables, home automation, smart infrastructure Communications Smart phones, 5G networks, advanced protocols, and ch
Slide 6: Profitability Growth Track Record of Continued Outperformance
Profitability Growth Track record of Continued Outperformance Annual Revenue Gross Profit ($ in millions) ($ in millions) CAGR: 12% (2005 – 2023) CAGR: 13% (2005 - 2023)
Slide 7: Gross Margins and EPS
Gross Margins and EPS Gross Margins (%) Non-GAAP EPS ($) CAGR: 22% (2012 - 2023)
Slide 8: Fiscal Year 2023 Financials
Fiscal Year 2023 Financials Revenue - $1.7 billion; compared to $2.0 billion in 2022 GAAP gross profit - $658.2 million; compared to $827.2 million in the prior year GAAP gross profit margin - 39.6%; percent from 41.3 percent in 2022 GAAP net income – $227.2 million, compared to the $331.3 million l
Slide 9: FY2023 Highlights
FY2023 Highlights Total debt ~$62 million Automotive and Industrial totaled 46% of product revenue, exceeding 2025 target of 40% Automotive revenue 19% of product revenue $329 million in cash and cash equivalents* Seven consecutive quarters of automotive and industrial product revenue above our targ
Slide 10: Revenue Profile for 2023
Revenue Profile for 2023 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region Asia Pacific Europe Americas
Slide 11: 4QFY23 Performance
4QFY23 Performance $322.7M -20% Q-Q Revenue $112.5M GAAP Gross Profit -28% Q-Q 34.9% - 360 bps Q-Q GAAP Gross Margin $0.51 -55% Q-Q Non-GAAP EPS $23.4M -55% Q-Q Non-GAAP Net Income $58.4M EBITDA 18.1% of Revenue $38.4M Cash Flow from Ops $329M/$62M Strong Balance Sheet Cash*/Debt 11.9% of Revenue *
Slide 12: Revenue Profile for Fourth Quarter 2023
Revenue Profile for Fourth Quarter 2023 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region 65% 35% By Region Asia Pacific Europe Americas 78% 14% 8% 19% 15% 25% 23% 18%
Slide 13: Quarterly Performance
Quarterly Performance Quarterly Gross Profit ($ Millions) Quarterly Revenue ($ Millions)
Slide 14: Income Statement – Fourth Quarter 2023
Income Statement – Fourth Quarter 2023 ($ in millions, except EPS) 4Q22 3Q23 4Q23 Net sales 496.2 404.6 322.7 Gross profit (GAAP) 206.2 155.9 112.5 Gross profit margin % (GAAP) 41.6% 38.5% 34.9% Net income (GAAP) 92.1 48.7 25.3 Net income (non-GAAP) 79.6 52.5 23.4 Diluted EPS (non-GAAP) 1.73 1.13 0.
Slide 15: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Cash* 373 348 329 Inventory 349 360 390 Current Assets 1,188 1,162 1,187 Total Assets 2,194 2,288 2,368 Total Debt 301 185 62 Total Liabilities 892 705 558 Total Equity 1,303 1,583 1,810 * Cash and cash equivalents, restricted cash
Slide 16: First Quarter 2024 Business Outlook
Revenue to be ~$305 million, +/- 3.0% GAAP gross margin of 34.0%, +/- 1% Non-GAAP operating expenses 28.7% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest income of ~$2.0 million Income tax rate to be 18%, +/- 3% S
Slide 17: Investment Summary
Investment Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20%+ operating profit Next Strategic Goal: $1B gross profit Tactics: Total system solutions sales approach and content expansion driving growth Focus on key accounts Increased focus on high-margin automotive,
Slide 18: Thank you
1un CORPORATE D Thank you www.diodes.com
Slide 19: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income For the three months ended December 31, 2023 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP net income was approximately $5.9 million, net of tax, non-cash share-based compensation expense. Excluding share-bas
Slide 20: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the three months ended December 31, 2022 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP adjusted net income was approximately $7.6 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensa
Slide 21: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income For the twelve months ended December 31, 2023 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP adjusted net income was approximately $24.4 million, net of tax, non-cash share-based compensation expense. Excludin
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the twelve months ended December 31, 2022 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP adjusted net income was approximately $28.7 million, net of tax, non-cash share-based compensation expense. Excluding share-based compen