Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Investor Meetings with Sidoti & Company, March 2018
38 slides from Diodes's conference presentation, Mar 20, 2018
Slide 1: Investor Meetings with Sidoti & Company March 2018
Page Investor Meetings with Sidoti & Company March 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
Management Representative Page Rick White CFO and Secretary CFOSince 2009 SR VP, Finance3 years Texas Instruments25 years Experience: Partner, Tatum Partners CFO, Optisoft Vice President, TI Worldwide, Memory Education: MBA, Finance, University of Michigan Bachelor's Degree, Electrical Engineering,
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 consumer, computing, communications, Industrial and automotive 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% +7.7% +30.5% -4.7% +11.0% Achieved milestone of $1 Billion in Annual Revenue in Fiscal 2017 +11.9%
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 Adaptive lighting, body controls and connected driving Industrial Embedded systems and precision controls Consumer IoT: Wearables, home automation, and smart infrastructure Communication Smart phones: advanced protocols and charging Computing Cloud computi
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 & Rectifiers $12.69 Timing & Connectivity $15.03 Total $70.75 Diodes can address $70 of semiconductor content per vehicle. With 95M vehicles built in 2017
Slide 18: Successful Growth in Automotive
Successful Growth in Automotive Automotive revenue 27% CAGR 2013 to 2017 Automotive now represents 8% of Diodes’ total revenue 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: Driving Power and Connectivity Requirements
Enterprise Smart Infrastructure Wearables Consumer & Home Asset Tracking Security & Surveillance Retail IoT Driving Power and Connectivity Requirements Page Ultra low power for battery operated, IoT applications Serial protocols and switching for networked systems Noise immunity for integrated camer
Slide 21: Efficiency, Functionality and Control for Smart Phones
Efficiency, Functionality and Control for Smart Phones 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 22: 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 23: USB Type-C USB3.1 Gen2 10Gbps – Diodes Solution
USB Type-C USB3.1 Gen2 10Gbps – Diodes Solution Type-C controller with Mux: PI5USB31213A ReDriver/Active Mux: PI3EQX1002B(USB3.1 Gen2), PI3EQX1012C (USB3.1 Gen2 Active mux) USB2/Audio Switch: PI3USB102J, PI3DBS3224, PI3USB223 Power Switch, FET, Charge Controller: DPS1133 (Source) DPS1035 (Sink), DMT
Slide 24: 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 25: System Focus Industrial Controls
System Focus Industrial Controls Page
Slide 26: 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 27: 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 28: Package Portfolio
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 29: Advanced Packaging: Miniaturization and Multi-Chip 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 30: 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 31: Financial Overview
FINANCIAL OVERVIEW Page
Slide 32: Fourth Quarter 2017 Financial Performance
Fourth Quarter 2017 Financial Performance Page In millions, except per share 4Q16 3Q17 4Q17 YoY Revenue $232.1 $285.2 $268.4 15.7% Gross Profit (GAAP) $67.3 $96.3 $96.4 43.2% Gross Profit Margin % (GAAP) 29.0% 33.8% 35.9% +690bp Net Income (GAAP) $1.3 $14.5 ($30.7) Net Income (non-GAAP) $7.7 $22.6 $
Slide 33: 2017 Full Year Highlights
Page 2017 Full Year Highlights Revenue grew 11.9% to a record $1.05 billion due to continued market share gains in all regions; GAAP gross profit was a record $356.8 million, and non-GAAP gross profit for 2017 was $359.5 million; GAAP gross margin improved 330 basis points to 33.8%, and non-GAAP gro
Slide 34: Revenue Profile as of 4Q 2017
Revenue Profile as of 4Q 2017 By End Market Page 18% 22% 26% 26% 8% Industrial Consumer Communications Automotive Computing By Channel By Region 9% 80% 11% Asia Pacific North America 69% 31% Distribution OEM / EMS Europe
Slide 35: Balance Sheet
Balance Sheet Page Dec 31, 2016 Cash $218 $248 $204 Short-term Investments $65 $30 $5 Inventory $203 $193 $217 Current Assets $751 $733 $662 Total Assets $1599 $1531 $1489 Long-term Debt $454 $413 $247 Total Liabilities $756 $708 $615 Total Equity $843 $820 $874 Dec 31, 2017 In millions Dec 31, 2015
Slide 36: First Quarter 2018 Business Outlook
Page Revenue to range between $261 million and $277 million, or down 2.8% to up 3.2%. At the mid point, this is flat to fourth quarter and represents a 13.8 percent increase year-over-year GAAP gross margin to be 36.0%, plus or minus 1% Non-GAAP operating expenses, which are GAAP operating expenses
Slide 37: 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 38: Thank you
Diodes Inc /Del/ — Investor Meetings with Sidoti & Company, March 2018 on 6ix