Monolithic Power Systems, Inc. · NASDAQ:MPWR
Monolithic Power Systems — Investor Presentation (June 2022)
42 slides from Monolithic Power Systems's investor presentation, Jun 2, 2022
Slide 1: MPS Management
MPS Management June 2, 2022 mrS
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements that involve risks and uncertainties, including our belief in continued expansion of our product lines, advances in our technology, anticipated market opportunities, gross margin targets, net & operating margin targets,
Slide 3: MPS Growing, Even in Tough Markets
MPS Growing, Even in Tough Markets ($M) * Industry Downturn MPS Above Market 2019 +16% Above Market 2012 +16% Above Market 2009 +13% Above Market * Wall Street analysts' average revenue 2011 MPS 27.5% Transformation MPS 3 Yr CAGR 2
Slide 4: Great Revenue Diversification by GEO & End Customer
Great Revenue Diversification by GEO & End Customer 4.5% Revenue Mix by End Customer 4.0% 3.5% 3.0% 36% 11% 36% 8% 2.5% 9% 2.0% 1.5% 1.0% 50% of revenue comes from 0.5% ‘long tail’ end customers 0.0% 3
Slide 5: Growth Drivers by End Market
Growth Drivers by End Market Computing Automotive Industrial Infrastructure Consumer Cloud Based Body Control Instrumentation 5G and Wireless IOT Data Center Factory & Bldg Wireless GPU’s Lighting Base Stations Automation Charging Power Portable ADAS Robotics Networking Management Augmented Storage
Slide 6: Leveraging 4000+ Products
Leveraging 4000+ Products AC/DC Power Conversion DC/DC Power Conversion Isolated Solutions Battery Management • High-Voltage Buck Regulators • Step-Up (Boost) • Isolated Gate Drivers • Li-Ion Single and Multi-Cell • High-Voltage LDOs • Step-Down (Buck) • Isolated Power Module • USB-Complaint Charger
Slide 7: Diverse End Markets
Diverse End Markets 2018-2021 % of Revenue 2010 2020 2021 22Q1 CAGR Automotive 1.9% 12.9% 16.9% 14.4% 36.6% Storage and 10.4% 21.4% 21.2% 25.6% 29.9% Computing Industrial / Other 4.8% 14.2% 15.3% 12.8% 27.8% Consumer 65.1% 26.1% 23.4% 21.2% 15.3% Communications 17.8% 16.9% 13.6% 14.7% 32.5% Enterpri
Slide 8: SAM Expansion
SAM Expansion Market 2015 SAM 2018 SAM 2021 SAM Automotive $4B $6B $7B Motion Control $2B $3B $4B ACDC $1B $2B $3B Modules $1B $2B $2B Cloud Computing (Server / Storage) $800M $1B $4B Networking / Telecom $600M $1B $2B Battery Management $600M $1B $1.5B Total Market SAM $10B $16B $23.5B 7
Slide 9: EPS Growing Faster Than Revenue
EPS Growing Faster Than Revenue * Wall Street Forecast 8
Slide 10: Execution Against Our Commitments
Execution Against Our Commitments Goal: Non-GAAP gross margin of 53% to 58% 59% Goal: Grow revenue 20% to 25% 58% 50% Annual Revenue Growth% SIA Growth% 57% 40% 56% 30% 55% 20% 54% 10% 53% 0% 52% 2017 2018 2019 2020 2021 2022* 2014 2015 2016 2017 2018 2019 2020 2021 22Q1 -10% Street Est’ Non-GAAP GM
Slide 11: Computing
Computing mrS
Slide 12: >$5B SAM and Rapidly Growing
From Board Level Power to Rack and Beyond >$5B SAM and Rapidly Growing CPU Server Board GPU AI Server Rack Data Center POL eFuse <2018 2020 2022 2024 POL CPU power 48V IBC Rack AC-DC PSU Greener, eFuse + DDR power + GPU Power + 48V BBU Smarter, 48V PDU SSD Storage Denser Cooling Fan Power Cooling Pu
Slide 13: Server Board Level Power Solutions: $1B SAM
Server Board Level Power Solutions: $1B SAM Server Solution $80 / Server CPU Power $600M SAM DDR5 Memory Power $280M SAM Point of Load $60M SAM EFuse $60M SAM 12
Slide 14: MPS Exclusively Enables AI Processors Advancement: $1B SAM
MPS Exclusively Enables AI Processors Advancement: $1B SAM Power 12.5kW Density Vertical Power Delivery Watt / in2 200 MPS enables exponential Power Density Growth 1.6kW 54V IBC + Intelli-module 100 700W 54V IBC + Intelli-phase 60 300W Discrete Design 40 15 13 2018 2019 2020 2021 2022 2023 2024 Year
Slide 15: Direct to Data Center Builders & Owners, Additional $2B SAM
Direct to Data Center Builders & Owners, Additional $2B SAM Datacenter Rack Front View Rack Side View Network Switch MPS 48V 12V to 5V/12V CPU Servers ASIC GPU Servers Cooling VPD Module Motherboard Substrate VPD Module Substrate VPD Module Substrate VPD Module 5V Pump Fan Network Storage MPS AC to
Slide 16: Automotive
Automotive mrS
Slide 17: Automotive Business is Accelerating – $7B SAM
Automotive Business is Accelerating – $7B SAM MPS Automotive Revenue $200 ($ Millions) 1.5 Billion 17% Automotive ICs shipped Total company business $150 +87% 20% EMEA 20% Korea $100 17% 30% 13% Americas Rest of Asia China $50 $- 2017 2018 2019 2020 2021 16
Slide 18: MPS Reputation as Technology Enablers Drives Ecosystem Collaboration
MPS Reputation as Technology Enablers Drives Ecosystem Collaboration Tier 1 New EV Established Key A/C/E SoC Suppliers Automakers OEMs Players Makers 17
Slide 19: Automotive Applications Covered
Automotive Applications Covered 18
Slide 20: MPS Enables Smaller & Safer ADAS
MPS Enables Smaller & Safer ADAS ADAS Driver Assistance Adoption in Passenger Vehicles MPS Exclusive Solutions - NEW 100% ONLY Single Vendor 40% Smaller Footprint 15% Less Power Loss 80% L0 • L1 $40 /car $8 60% /car MPSafe™ High Power Controller + DrMOS MPSafe™ Camera PMIC For ADAS Compute SoC For L
Slide 21: MPS 1st to Mkt – Exclusive Auto Drive Power
MPS 1st to Mkt – Exclusive Auto Drive Power • Analog Subsystem $100/car MPQ86960 MPQ86960 MPQ86960 MPQ86960 MPQ86960 MPQ86960 MPQ86960 MPQ86960 MPQ79500FS MPQ79700FS A/D MPQ79500FS MPQ2167A SoC MPQ79500FS MPQ2167A MPQ2167A MPQ2167A MPQ43XX MPQ2967FS MPQ5850 MPQ86960 MPQ2167A MPQ2166 MPQ2967FS MPQ216
Slide 22: “Must Have” Solutions in Digital Cockpit, Lighting, Body
“Must Have” Solutions in Digital Cockpit, Lighting, Body Run cooler esign faster Push higher Achieve EM Enable platform Shrink the board mprove uality Extend battery performance resilience scalability runtime Industry’s Smallest Solution 30% Cooler Running 2X Better Precision Ultra Fast, Low Power ™
Slide 23: MPS Enables Smaller, Higher Power Electrification
MPS Enables Smaller, Higher Power Electrification Powertrain Technology Adoption in Passenger Vehicles 100% MPS Exclusive Solutions – Coming Soon 4X Faster Switching Enhanced Safety ICE 80% 40% Smaller Footprint 2X Smaller Footprint 2X Higher Power 60% $40 $40 $60 /EV /car /EV 40% BEV Isolated SiC a
Slide 24: Relentless Expansion of Product Categories
New Portfolio Launches Relentless Expansion of Product Categories Electrification 2022 2023 2024 System Safety Sequencer GaN Driver New products Hall-Effect Current Sensor allow MPS to ADAS Intelligent Dynamic LED Driver address up to Precision Voltage Monitor $400/car additional Isolated Power / Ga
Slide 25: MPS Automotive: $1B Design Win Pipeline
MPS Automotive: $1B Design Win Pipeline 1 in 3 1 in 4 GM cars, trucks and SUVs Daimler vehicles Audi e-Tron, Q3, Q5, Q7 Porsche Taycan EV Ford SYNC4 VW Infotainment GM Infotainment and Telematics Daimler Infotainment Infotainment Curved Cluster Android Module and Telematics Ford F-150 ADAS Domain Te
Slide 26: MPS Automotive: Right Time. Right Place.
MPS Automotive: Right Time. Right Place. 3x per-vehicle dollar content MPS Automotive Average Content Per Vehicle Growth 4x SAM $300 $30B SAM ✓ Proliferation of new, compelling solutions and portfolio expansion $250 ✓ Growing share amongst leading Tier 1 suppliers (now in very early stages) $200 ✓ C
Slide 27: Electrification Adds $360/Car Content
Electrification Adds $360/Car Content Powertrain Technology Adoption in Passenger Vehicles 100% DC/DC Converter $20/car BEV On-Board Charger 80% Battery Management System $90/car $50/car Plug-In Hybrid 60% Full Hybrid Mild Hybrid 40% Charging Station 20% $1000 per station ICE Traction Inverter $200/
Slide 28: MPS Exclusively Enables These Differentiated Solutions
MPS Exclusively Enables These Differentiated Solutions NEW Sampling NEW Sampling Up to $100/L4 car $20-40/EV $10-15/car $15/car Single vendor High Power 4x Faster Switching ndustry’s Smallest 2x Higher Accuracy Controller + DrMOS solution for All-in-One USB-C Power Delivery Isolated SiC/IGBT Power S
Slide 29: These are only half of MPS Revenue
These are only half of MPS Revenue relates to 40% of MPS products
Slide 30: MPS, What’s in the Kitchen?
MPS, What’s in the Kitchen? Future Enablers
Slide 31: Expanding Future Battery Backup Solutions
Expanding Future Battery Backup Solutions MPS Solution 3KW Parallable Power In Power Out 120/240 AC 120 - 240V AC Solar Power Input 12 - 48V DC 48V Vehicle USB-C $1500 Box BATTERY 30
Slide 32: Fiber Optic Link & Repeater Power
5G Opportunities $2B SAM Fiber Optic Link & Repeater Power Baseband Unit SMPS Power Modules Power Management Unit 5G Network Acceleration Card MPS Battery Backup Solution $1600 Box PSAM: $200M / yr MPS powering high speed networking & security switch PSAM: $1.6B 31
Slide 33: Robot Actuators: from Thousands to Millions
Robot Actuators: from Thousands to Millions Anybotics $1000 Tesla bot MPS Solution 40 Electromechanical Actuators • Motor Control & Driver • Position Sensor • Gearhead 32 • Motor
Slide 34: Plug & Play Power Modules
Plug & Play Power Modules $m Plug & Play Modules Revenue ($m) $300 $250 $200 $150 $100 $50 $0 2017 2018 2019 2020 2021 2022 2023 2024 33
Slide 35: Engineer to Engineer (E2e) - eCommerce
Engineer to Engineer (E2e) - eCommerce MPS AI Algorithm eCommerce Website Interactive Web Based Design User input Performance Verification BCD 5 Technology • Digital • Memory • Power • Analog Delivered in Days Custom Parts Auto Programming Order 34
Slide 36: Industrial Automation: Dog Fooding MPS Solutions
Industrial Automation: Dog Fooding MPS Solutions 35
Slide 37: Industrial Automation: Dog Fooding MPS Solutions
Industrial Automation: Dog Fooding MPS Solutions 36
Slide 38: Well Positioned with Excellent Financial Strength
Well Positioned with Excellent Financial Strength
Slide 39: Consistent Revenue Growth & Shareholders’ Return
Consistent Revenue Growth & Shareholders’ Return Stock Price Revenue in millions $600 2021: MPS 43.0% vs. Analog 30.9% $1,750 $550 $500 $1,550 $450 $1,350 $400 Revenue $1,150 $350 MPWR Stock Price $300 $950 SOX Index $250 $750 $200 $150 $550 $100 $350 $50 $0 $150 | 2011 | 2012 | 2013 | 2014 | 2015 |
Slide 40: Capital Allocation – 47% of Cash Returned to Shareholders
Capital Allocation – 47% of Cash Returned to Shareholders 47% Cash returned to shareholders through stock buybacks and dividends 39
Slide 41: MPS grows regardless of the market environment.
MPS grows regardless of the market environment. 40
Slide 42: Q&A
Q&A 41
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