Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Investor Presentation (June 2018)
43 slides from Diodes's investor presentation, Jun 11, 2018
Slide 1: Investor Relations Presentation June, 2018
Page Investor Relations Presentation June, 2018 Exhibit 99.1
Slide 2: Safe Harbor Statement
Page Safe Harbor Statement Any statements set forth herein 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 the forward-looking statements. Such forward-looking statements include, but
Slide 3: Management Representative
Page Management Representative Dr. Keh-Shew Lu President and CEO Diodes IncorporatedSince 2005 Texas Instruments 27 years Experience: Senior Vice President of TI Worldwide Analog and Logic President of Texas Instruments – Asia Education: Master's Degree and Doctorate in Electrical Engineering Texas
Slide 4: Company Representative
Page Company Representative Laura Mehrl （冯蓉媞） Company spokesperson, Director of Investor Relations Since May 2010 Experience: Director of Investor Relations, Diodes Incorporated, Plano, Texas Senior Business Development Manager, STMicroelectronics, Carrollton, Texas Sales Director for Analog Devices
Slide 5: About Diodes Incorporated
Page A leading global manufacturer and supplier of high-quality application specific, standard products within the broad discrete, logic and analog markets, serving the automotive, Industrial, consumer, communications, and computing segments. About Diodes Incorporated
Slide 6: Company Overview
Company Overview NASDAQ: DIOD Founded in 1959 Headquartered in Plano, TX; 21 locations globally Manufacturing in UK, Germany, China and Taiwan ISO9001:2008 Certified / TS16949:2009 Certified ISO14001 Certified Key acquisitions: Anachip Corporation, Taiwan Jan. 2006 Advanced Power Devices Nov. 2006 Z
Slide 7: Global Organization - TS16949 Manufacturing
Global Organization - TS16949 Manufacturing Page
Slide 8: 2017: Record Annual Revenue & Gross Profit
Page 2017: Record Annual Revenue & Gross Profit Track Record of Consistent Growth ( In millions ) +41% +3.6% -0.2% -4.7% +10.8% Achieved milestone of $1 Billion in Annual Revenue in Fiscal 2017 +11.9% +30.5% +7.7%
Slide 9: Vision: Create Shareholder Value
Vision: Create Shareholder Value Page 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
Slide 10: Shifting Gears to Profitability Growth
Shifting Gears to Profitability Growth Page Mission: Profitability growth to expand shareholder value Strategy: Grow revenue to $2.5B at 40% GPM Goal: $1B Gross Profit by 2025
Slide 11: Business Model
Business Model Page 2017 2025 NR$1Bà 2.5B GP%35%à40% GPM $350Mà $1B R&D%5%à 7% SG&A%15%à13% PFO15%à20%
Slide 12: Market Focus: Balanced Portfolio
Market Focus: Balanced Portfolio Automotive Connected driving, Comfort/style/safety, Electrification/Powertrain Industrial Embedded systems and precision controls Consumer IoT: Wearables, home automation, and smart infrastructure Communication Smart phones: advanced protocols and charging Computing
Slide 13: Extensive Portfolio of Automotive Products
Extensive Portfolio of Automotive Products Page Infotainment & Telematics Body Control Electronics Power Train Seat Control Modules Interior and Exterior Lighting Advanced Driver Assistance Systems
Slide 14: Applications Driving Growth
Applications Driving Growth Connected driving ADAS (Advanced Driver Assistance Systems) Telematics Infotainment Systems Comfort, style and safety Lighting Migration to LED and intelligent illumination Brushless Motor Control (BLDC) Migrating from Brushed to Brushless DC Motors Electrification/Powert
Slide 15: Automotive Brushless DC (BLDC) Motors
Automotive Brushless DC (BLDC) Motors Migrating from Brushed to BLDC Motors (~ 30 per vehicle) Automotive market moving to BLDC motors for reliability and efficiency Forecast to grow to 3.8 Billion units by 2021 Diodes Key Products $/Car MOSFETs $18.75 Diodes Rectifiers $2.60 Hall Sensors $0.50 Gate
Slide 16: Connected Driving
Connected Driving Higher speed data rates and increased number of channels Robust and reliable data transfer ADAS, Telematics and Infotainment systems are merging into Connected Driving Forecast to grow to 280 Million units by 2021 1-PCIe n-PCIe n-PCIe IPCAM IPCAM IPCAM IPCAM Q-PCIe Packet SW Q-Xtal
Slide 17: Automotive Summary
Automotive Summary * SemiCast Automotive Report 2016 forecast Diodes Key Products $/Car Analog $2.02 Power Management $5.99 MOS/BJT $35.02 Diodes and Rectifiers $12.69 Timing and Connectivity $15.03 Total $70.75 Diodes can address $70 of semiconductor content per vehicle. With 95M vehicles built in
Slide 18: Successful Growth in Automotive
Successful Growth in Automotive Automotive revenue 27% CAGR 2013 to 2017 Automotive represented 9% of Diodes’ total revenue in 1Q 2018 Automotive will continue to be an increasingly significant market segment for Diodes Diodes’ Automotive Revenue Page
Slide 19: Industrial: Automation and Precision Controls
Industrial: Automation and Precision Controls Page Increasing IC content in embedded systems Switching and signal path for networked systems and automation Signal conditioning and timing for precision controls Motor controls, sensors and power management for smart meters
Slide 20: IoT – Machine to Machine (M2M) Growth Opportunities
IoT – Machine to Machine (M2M) Growth Opportunities Power Xtal and clock Packet switch M2M – Dominated by short range technology 73% of them are short range, mostly Wi-Fi 2017: connection @ 750 million 2023: connection @ 2600 million M2M – By product IoT and M2M Modems Routers POS Wireless beacons O
Slide 21: Consumer - IoT Driving Power & Connectivity Requirements
Consumer - IoT Driving Power & Connectivity Requirements Diodes Key Products $/Box Analog >$0.20 Power Management >$1.30 MOS/BJT >$10.00 Diodes and Rectifiers >$5.00 Timing and Connectivity $3.50 Total $20.00 Enterprise Smart Infrastructure Wearables Consumer & Home Asset Tracking Security & Surveil
Slide 22: Sensor IoT Segment – Smart Home
Sensor IoT Segment – Smart Home Smart Home – up to 477Mu Safety and Security Climate Control Consumer Electronics Lighting control 400 100 200 300 Host Controller X1 PCIe2 100MHz HCSL Clk SSD X1 PCIe2 (or SATA controller) 25MHz Xtal PCIe CG PI6C557-05 PCIe Packet SW PI7C9X2G304SL Wireless Controller
Slide 23: Efficiency, Functionality and Control for Smartphones
Efficiency, Functionality and Control for Smartphones Focus on signal integrity and higher data rates Proliferation of USB Type-CTM connectivity and power delivery Power regulation and protection for new features Advanced power solutions for quick charge protocols Page
Slide 24: Smartphone
Smartphone Smartphone – Flat year in 2017 What’s next? Understand the impact Smart speaker/IoT rising AR / VR Foldable screens 5G Smartwatches Growth Opportunities Type-C MUX MOSFET LDO, OVP LDSW, Audio, DCDC, LED/OLED Driver, ACDC Diodes Key Products $/Phone Analog $0.55 Power Management $1.50 MOS/
Slide 25: Networking Segment
Networking Segment WW enterprise and service provider router market grew 4% in 2017 to $12.5B Continues to exhibit healthy growth, driven by network refreshes and investments in the fast-growing campus and datacenter segments Diodes Key Products $/Router Analog $0.20 Power Management $0.30 MOS/BJT $
Slide 26: Cloud Computing Accelerating Enterprise Market
Cloud Computing Accelerating Enterprise Market Page ReDriver support for USB connectivity Wide range of signal protocols: PCIe, SAS, SATA, GbE, USB MUX products for high capacity solid state storage Crystal oscillators for increasing clocking speeds
Slide 27: Server Segment
Server Segment Total unit shipment Growth (CAGR) = 3.82% Almost all of vendors are our existing customers ODM direct has the highest volume – mainly in TW Pericom products are well positioned in this segment 2017 Q4 shipment (ku) HPE /H3C 479.7 Dell 582.5 Lenovo 181.6 Huawei 166.4 Supermicro 158.5 I
Slide 28: A Leader in Providing Total Solutions for USB Type-C
A Leader in Providing Total Solutions for USB Type-CTM USB-C controller with USB3.1 Gen1/Gen2 offer the best solution in the market for high level of integration, best signal integrity, lowest power dissipation Linear redrivers handle longer channels, transparency to end nodes’ link training, and po
Slide 29: USB Type-C Solution for Smartphone
USB Type-C Solution for Smartphone USB Type C Solutions for Smartphone – USB or PD Alt mode Data speed, flexibility and simplicity of use are key drivers Allows smartphone to connect through USB-type C for data only or to display ports Smartphone is one of the key adopters USB-C adoption (all applic
Slide 30: USB Type-C Solution for Notebook, Tablet, PC and AIO
USB Type-C Solution for Notebook, Tablet, PC and AIO USB Type C for Notebook, Tablet, PC and AIO (with DP/USB Alternate Mode) Data speed and flexibility are key drivers Diodes Key Products $/Box Connectivity, Signal Integrity and Timing $3.25 Analog (DCDC, LDO, Sleep Mode Charger etc) $0.89 Power Ma
Slide 31: System Focus Industrial Controls
System Focus Industrial Controls Page
Slide 32: Complete Platform Solutions: Notebooks
Complete Platform Solutions: Notebooks Page DCDC Converter CPU PCH MOSFET LED Driver USB 2.0 Switch A/V Codec DDR Regulator LDO Analog Switch TVS USB 3.0 ReDriver Crossbar Switch Vcore DCDC Controller Sleep / Charge Detect Video Switch MCU USB3 / DP Switch LSP Con LCD Panel TVS DP-to-VGA Converter V
Slide 33: Technology Focus
Technology Focus Page Products 20Gbps ReDrivers and Switches Automotive Packet Switch for Telematics / ADAS Complete USB Type-CTM Signal Switching High speed clocking for cloud computing Ultra low power and low noise LDOs for IoT Low Cj TVS for signal integrity Lowest rDS(on) LDMOS for battery effic
Slide 34: Package portfolio roadmap
Current PowerDI5060-8L PDI3333-8L DFN0808-4 DFN0806-3 DFN3030N-8 (Pre-mold) SOP-8/14/16L-EP MSOP-8/EP TO252-2/3/4/5L SOD123(F)/923 SOD523/323 TO220-5L TO262AA/AB QFN5050-32 DFN0604-3 2018 + ITO220AC-S DFN0806-6 DFN0603-2 TO220-2/3L PowerDI-5 PowerDI-5SP TSOT23-5/6 SOT25/26 SOT223/143 SOIC-14/16L SOP
Slide 35: Advanced Packaging
Page Advanced Packaging Multi-Chip Packaging Miniaturization DDFN0402 the smallest discrete semiconductor package Dual-Flat No-Lead (DFN) DDFN (Encapsulated CSP) Chip-Scale Package (CSP) HS IntelliFET: ZXMS3001 Miniaturization and Multi-Chip Packaging
Slide 36: Efficient Manufacturing + Superior Processes
Page Shanghai-based packaging with capacity over 34 billion units Chengdu facility has potential capacity 3X of Shanghai Additional facilities in Neuhaus, Germany and Chengdu, China Two fabs in Shanghai (6” and 8”), one discrete fab in Oldham, UK (6”) Bipolar, BiCMOS, CMOS and BCD process Strong eng
Slide 37: Financial Overview
Page Page Financial Overview
Slide 38: First Quarter 2018 Financial Performance
First Quarter 2018 Financial Performance Page In millions, except per share 1Q17 4Q17 1Q18 YoY Revenue $236.3 $268.4 $274.5 16.2% Gross Profit (GAAP) $73.9 $96.4 $98.6 33.4% Gross Profit Margin % (GAAP) 31.3% 35.9% 35.9% +460bp Net Income (GAAP) $1.2 ($30.7) $18.5 Net Income (non-GAAP) $7.0 $21.6 $2
Slide 39: Balance Sheet
Balance Sheet Page Dec 31, 2017 Cash $248 $204 $182 Short-term Investments $30 $5 $4 Inventory $193 $217 $236 Current Assets $733 $662 $634 Total Assets $1529 $1489 $1471 Long-term Debt $413 $247 $200 Total Liabilities $708 $615 $562 Total Equity $820 $874 $910 March 31, 2018 In millions Dec 31, 201
Slide 40: Revenue Profile as of 1Q 2018
Revenue Profile as of 1Q 2018 By End Market Page 17% 23% 24% 27% 9% Industrial Consumer Communications Automotive Computing By Channel By Region 9% 78% 13% Asia Pacific North America 72% 28% Distribution OEM / EMS Europe
Slide 41: Second Quarter 2018 Business Outlook
Page Revenue to range between $292 million and $308 million, or up 6.4% to 12.2% q/q GAAP gross margin to be 35.5%, plus or minus 1% Non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 22.
Slide 42: Summary
Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20% PFO Next Strategic Goal: $1B gross profit Strategy: $2.5B revenue at 40% GPM Tactics: Increased focus on Automotive and Industrial markets Investment for technology leadership in target products, fab processes, and a
Slide 43: Thank you