Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Investor Presentation (November 2021)
40 slides from Diodes's investor presentation, Nov 4, 2021
Slide 1: Investor Relations Presentation
Investor Relations Presentation Plano, TX November 2021 Exhibit 99.1
Slide 2: Safe Harbor Statement
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 are
Slide 3: Management Representative
Management Representative Dr. Keh-Shew Lu Chairman, President and CEO Experience: Texas Instruments 27 years Senior Vice President of TI Worldwide Analog and Logic President of Texas Instruments – Asia Education: Doctorate and Master's Degree in Electrical Engineering Texas Tech University Bachelor'
Slide 4: Company Representative
Company Representative Experience: Head of Corporate Marketing, Diodes Incorporated, Milpitas, CA Head of Corporate Marketing, Pericom, Milpitas, CA Vice President, Marketing, CA Technologies (Broadcom), Redwood City, CA Director, Global Marketing Strategy, EMC, Pleasanton, CA Director, Marketing, Z
Slide 5: About Diodes Incorporated
About Diodes Incorporated Vision: Profitability Growth to Maximize Shareholder Value Our Core Values: Integrity, Commitment, Innovation Diodes delivers high-quality semiconductor products to the world’s leading companies in the consumer electronics, computing, communications, industrial, and automot
Slide 6: Company Overview
Company Overview NASDAQ: DIOD; Founded in 1959 Headquartered in Plano, TX; 31 locations globally Manufacturing in UK, Germany, China, and Taiwan ISO 9001:2015 Certified / IATF 16949:2016 Certified ISO 14001:2015 Certified Key acquisitions: Lite-On Semiconductor – Nov. 2020 TI Greenock fab - April 20
Slide 7: Global Organization
Global Organization Wuxi, China Jinan, China Shanghai, China Jhongli, Taiwan Hsinchu, Taiwan Keelung, Taiwan Taiwan City, Taiwan Munich, Germany Neuhaus, Germany Plano, Texas Milpitas, California Greenock, UK Chengdu, China Logistics Hub and Warehouses Oldham, UK Key: Headquarters Wafer Fab Assembly
Slide 8: Our Sustainability Commitment
Our Sustainability Commitment We view sustainability as a competitive advantage and have adopted a sustainability-oriented approach to assess and address related risks that may influence our operational activities, business results, and financial performance. Please refer to Governance and Oversight
Slide 9: Risk Management & Corporate Governance Guidelines
Risk Management & Corporate Governance Guidelines Board’s Oversight of Risk Management Robust standing committee structure and board self-evaluation process Active engagement with the management team to identify and assess risks Broad industry experience of the directors helps anticipate emerging an
Slide 10: Board of Director Diversity
Board of Director Diversity Diverse Board Representation Seven (7) out of our eight (8) directors are independent directors Gender, racial, and ethnic diversity reflected on board representation Two (2) female directors Broad set of director skills, expertise, and industry backgrounds Zero percent o
Slide 11: Performance-Based Executive Compensation
Performance-Based Executive Compensation Performance goals based on both Company performance goals and individual objectives: Bonus based on Revenue, Non-GAAP Earnings Per Share, and ESG PSU’s based on cumulative 3 year Operating Income Alignment between executive compensation and stockholder intere
Slide 12: Track Record of Consistent Growth
Track Record of Consistent Growth Continued Outperformance of Served Markets ($ in millions) Revenue Revenue for 2021 is based on Q1-Q3 result and Q4 guidance CAGR: 12.32% (2005 - 2020) Q4 Q1 + Q2 + Q3
Slide 13: Vision: Create Shareholder Value
Vision: Create Shareholder Value 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 14: Shifting Gears to Profitability Growth
Shifting Gears to Profitability Growth Mission: Profitability growth to expand shareholder value Strategy: Grow Revenue to $2.5B at 40% Gross Margin Goal: $1B Gross Profit by 2025
Slide 15: Targeted Market Segment Distribution
Targeted Market Segment Distribution Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems and precision controls Consumer IoT: wearables, home automation, smart infrastructure Communications Smartphones: advanced protocols and charging Computing
Slide 16: Automotive Applications Driving Growth
Automotive Applications Driving Growth Connected Driving ADAS (Advanced Driver Assistance Systems) Telematics Infotainment Systems Comfort, Style, and Safety Lighting Migration to LED and intelligent illumination BLDC motor control Migration from Brushed to Brushless DC Motors Electrification/Powert
Slide 17: Automotive Opportunity
Automotive Opportunity 2021 Automotive Potential Revenue $ / Car Automotive Motor Control $39.57 Connected Driving (Infotainment, Telematics & ADAS) $30.97 Powertrain, Electrification & Body Control Electronics $14.77 Lighting – Moving to LED $11.23 Total $96.54 Body Control Electronics Motor Contro
Slide 18: Industrial Growth
Industrial Growth 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 For 2020, 23% of total revenue is from Industrial market 201
Slide 19: IoT – Machine to Machine (M2M)
IoT – Machine to Machine (M2M) Growth Opportunities: Power, Sensor, DC-DC Gate Driver, BJT, MOSFET XTAL and clock Packet switch, IO Expander M2M – Dominated by short range technology 73% are short range, mostly Wi-Fi 2017: connections @ 750 million 2023: connections @ 2600 million M2M – By Product I
Slide 20: 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 & Survei
Slide 21: Sensor IoT Segment: Smart Home
Sensor IoT Segment: Smart Home Smart Home – expected to grow to 1.4Bu by 2023 Safety and Security Climate Control Consumer Electronics Lighting control Host Controller X1 PCIe2 100MHz HCSL Clk SSD X1 PCIe2 (or SATA controller) 25MHz Xtal PCIe CG PI6C557-05 PCIe Packet SW PI7C9X2G304SL Wireless Contr
Slide 22: Smartphone: Efficiency, Functionality, and Control
Smartphone: Efficiency, Functionality, and Control Driving Smartphone Growth Smart speaker/IoT rising AR / VR Foldable screens 5G Smartwatches Growth Opportunities USB Type-C MUX MOSFET LDO, OVP LDSW, Audio, DCDC, LED/OLED Driver, ACDC Diodes Key Products $ / Phone Analog $0.55 Power Management $1.5
Slide 23: Cloud Computing Accelerating Enterprise Market
Cloud Computing Accelerating Enterprise Market 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 LDOs, SBR, and TVS for power management and protection
Slide 24: Server Platform Solution
Server Platform Solution CAGR is 5% (2020-2024) Almost all of Server vendors are Diodes existing customers Diodes products are well positioned in this segment Connectivity, Signal Integrity, Timing, Standard Linear, Power Management, Power Switches, Protection or HV MOSFET / SBR devices AC-DC MOSFET
Slide 25: USB Type-C Applications Driving Growth
USB Type-C Applications Driving Growth Focus Applications: Smartphone, Tablet NB/DT/WS/AIO, PC, Server CE Appliance PC Peripheral/Monitor Inflight Entertainment Automotive - Infotainment Robotics Chargers Data speed, flexibility, and simplicity of use are key drivers Supports data, video, and power
Slide 26: USB Type-C Potential
USB Type-C Potential Normalized to 2016 USB-C adoption to grow from 300M (2016) to 5B units (2021) - IHS Dec 2017 2021 Automotive Potential Revenue $ / Car Connectivity, Signal Integrity and Timing $3.25 Analog (DCDC, LDO, Sleep Mode Charger etc) $0.89 Power Management Switch $0.40 MOSFET/BJT $0.25
Slide 27: 5G Applications Driving Growth
5G Applications Driving Growth Focus Applications: Cloud Computing Data Center Server Gateway Internet Gateway Fiber network Core Network, Cell Stations Small Cells Base Station Edge Computing Server Smart antenna Fiber network End Products Portables: Smartphone, Tablet Smart Car Consumer: VR/AR, Dr
Slide 28: 5G System Opportunities
Mobile Phone Power Clock Sensor BATMAN MIPI SW ReDriver T-Box Power Packet Switch Clock FCP OTN: CWDM DWDM Remote Radio Unit Power Mgmt Clock Level Shifter Logic Baseband Unit Power Mgmt Clock Level Shifter IO Expander Server/Storage Power Mgmt Clock Gen IO Expander I2C Mux Clock Buffer ReDriver Log
Slide 29: Industrial Controls
Industrial Controls Solutions Provider for Industrial or Embedded Applications
Slide 30: Complete Platform Solutions: Notebooks
Complete Platform Solutions: Notebooks 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 Video
Slide 31: Technology Focus Products
Technology Focus Products 20Gbps ReDrivers and Switches Automotive Packet Switch for Telematics / ADAS Complete USB Type-C 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 efficiency C
Slide 32: Key Differentiator – Packaging Design
Key Differentiator – Packaging Design Focus: Miniaturization and Power Efficiency ~ 2019 PDI3333-8L DFN0808-4 DFN0806-3 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 2020 ~ 2021 ITO220AC-S DFN0806-6 DFN0603-2 TO220-2/3L PowerDI-5 PowerDI-5
Slide 33: Advanced Packaging Miniaturization
Advanced Packaging Miniaturization DDFN0402 the smallest discrete semiconductor package Miniaturization and Multi-Chip Packaging Multi-Chip Packaging Dual-Flat No-Lead (DFN) DDFN (Encapsulated CSP) Chip-Scale Package (CSP) HS IntelliFET: ZXMS3001
Slide 34: Packaging Efficient Manufacturing + Superior Processes
Packaging Efficient Manufacturing + Superior Processes Shanghai-based packaging with capacity over 34 billion units Chengdu facility has potential capacity 3X of Shanghai Additional facilities in Neuhaus, Germany and Wuxi, China China fabs in Shanghai and Wuxi, Taiwan fabs in Hsinchu and Keelung, an
Slide 35: Third Quarter 2021 Financial Performance
Third Quarter 2021 Financial Performance ($ in millions, except per share amounts) 3Q20 2Q21 3Q21 Net sales 309.5 440.4 471.4 Gross profit (GAAP) 111.1 159.8 181.2 Gross profit margin % (GAAP) 35.9% 36.3% 38.4% Net income (GAAP) 27.2 55.4 68.4 Net income (non-GAAP) 32.8 54.6 67.3 EPS (non-GAAP) 0.62
Slide 36: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2019 Dec 31, 2020 Sept 30, 2021 Cash/Cash equivalents/restricted cash plus short-term investments 264 327 292 Inventory 236 307 322 Current Assets 810 1,024 1,064 Total Assets 1,639 1,980 2.042 Total Debt (L/T, S/T, Line of Credit) 111 451 252 Total Liabilities
Slide 37: Revenue Profile for Third Quarter 2021
Revenue Profile for Third Quarter 2021 By End Market 16% 24% 18% 30% 12% Industrial Computing Consumer Automotive Communications By Channel By Region 8% 80% 12% Asia Pacific Americas 66% 34% Distribution Direct Europe
Slide 38: Fourth Quarter 2021 Business Outlook
Revenue to increase to ~$476 million, +/- 3.0% A record on both an organic and consolidated basis for a combined increase of about 6% sequentially at the mid-point GAAP gross margin of 38.7%, +/- 1% on a consolidated basis Non-GAAP operating expenses 21.0% of revenue, +/- 1%, which are GAAP operatin
Slide 39: Summary
Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20% operating profit Next Strategic Goal: $1B gross profit Tactics: Increased focus on high-margin Automotive, Industrial, and Pericom products Investment for technology leadership in target products, fab processes, and
Slide 40: Thank you
Thank you
Diodes Inc /Del/ — Investor Presentation (November 2021) on 6ix