Monolithic Power Systems, Inc. · NASDAQ:MPWR
Monolithic Power Systems — Investor Day (June 2018)
89 slides from Monolithic Power Systems's investor day presentation, June 2018
Slide 1: Investor/Analyst Day 2018
Investor/Analyst Day 2018 MES
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: Agenda
Agenda • Computing Power Evolution • Battery Management • Automotive Break • e.Motion: A Market in Motion • $1B to $2B • E to E through eCommerce • Financial Summary • Q&A • Event Summary
Slide 4: Computing Power Evolution
Computing Power Evolution Jinghai Zhou
Slide 5: It All Started with Two Innovations
It All Started with Two Innovations • MPS Invented Intelli-phase in 2010 World first monolithic power stage with integrated Accu- sense. • MPS Invented QSMOD in 2012 Quantum State Modulation- Modulation based on finest digital steps to determine the real-time output voltage. • MPS First Server Core
Slide 6: Existing Solutions – Discrete + Analog + Digital
Existing Solutions – Discrete + Analog + Digital Dr MOS Reservoir: (packaged discrete) Large capacitors Voltage Level 2 Voltage Level 1 Digital Signal Pro + MCU
Slide 7: Existing Solutions – Discrete + Analog + Digital
Existing Solutions – Discrete + Analog + Digital Dr MOS Reservoir: (packaged discrete) Large capacitors Voltage Level 2 Voltage Level 1 Digital Signal Pro + MCU
Slide 8: QS MOD Solution: Fully Integrated + GUI
QS MOD Solution: Fully Integrated + GUI Fully Integrated Power Device Reservoir: Smaller Capacitor Voltage Level 2 Voltage Level 1
Slide 9: MPS’ Quantum State Modulation – QS Mod
MPS’ Quantum State Modulation__ QS Mod Fully Integrated Power Device Reservoir: Small Capacitor Voltage Level 2 Voltage Level 1
Slide 10: MPS’ Quantum State Modulation – QS Mod
MPS’ Quantum State Modulation__ QS Mod Fully Integrated Power Device Reservoir: Small Capacitor Voltage Level 2 Voltage Level 1
Slide 11: MPS’ Quantum State Modulation – QS Mod
MPS’ Quantum State Modulation__ QS Mod Fully Integrated Power Device Reservoir: Small Capacitor Voltage Level 2 Voltage Level 1
Slide 12: The Concept is Simple
The Concept is Simple Competitors MPS Fast + Accurate
Slide 13: Great Technology Wins Its Own Way
Great Technology Wins Its Own Way
Slide 14: Common Footprint, Uncommon Performance
Common Footprint, Uncommon Performance • Discrete Die DrMOS • Monolithic Intelli-Phase • Common Footprint Allows Access to Today’s Markets • Monolithic Die Provides Superb Switching Performance and Intelligence
Slide 15: CPU Demands Huge Current, with Much Less Available Space
CPU Demands Huge Current, with Much Less Available Space ICCMAX ICCMAX ITDC (117A) Grantley Purley Coming Up Bigger CPU Socket, More Memory DIMMs, The needs to Pull VR Closer to CPU- All Require Much Dense VRs
Slide 16: Why MPS is Winning?
Why MPS is Winning? Size & Frequency Solution 1400 3.5 Frequency Size (MHz) 1200 3 CMP 1000 2.5 MPS 800 2 600 1.5 CMP 400 1 200 0.5 0 0 2017 2018 2019 2020 While Others Hitting Size and Frequency Boundaries, MPS Monolithic Solution Takes Off
Slide 17: GPU as an AI Engine Gets Power Hungry
GPU as an AI Engine Gets Power Hungry * Source: Nvidia GPU Conference, 2017 AI Engine Powered by MPS QSMOD- Integration Brings Unprecedented Feature Sets to the System
Slide 18: Ready for the 48V Power Architecture for Data Centers
Ready for the 48V Power Architecture for Data Centers 43-60V Digital 4.3-6V 1-1.8V Multi-Mega Controlled Hertz Multi- Resonant Phase VR (DCX) 2-Stage Structure • Simplicity – well-understood architecture • Scalability – can address different power levels • Transient performance – independent second-
Slide 19: Autonomous Driving
Autonomous Driving MPS Powered AI Datacenters Allow Autonomous Vehicles to Learn… Learning Perception Prediction Policy Inferencing Next step- the inference engine that resides on the AV itself is what MPS will power!
Slide 20: The Evolving of the Computing Eco-System
The Evolving of the Computing Eco-System Datacenter, Cloud 5G Network, Coming Soon 5G Enabled Cloud 2.0 Happening Now Hyper Converged -Storage -Computing -Networking MPS High Speed, High Density Power Solutions- Well Suited for Computing Infrastructure Now and Beyond
Slide 21: We Are the Champion: Proudly Powering Olympics
We Are the Champion Proudly Powering Olympics
Slide 22: Battery Management
Battery Management Chris Sporck
Slide 23: MPS Battery Management Applications
MPS Battery Management Applications Battery 2-6 Cell non- Portable Wearable Connected Mobile Management USB Power Devices Devices Computing Systems Applications (BMS) + - 48V Battery Pack Battery Management System (BMS) IC Increasing Value
Slide 24: MPS Battery Management SAM Growth
MPS Battery Management SAM Growth $16.1M Baseline Revenue
Slide 25: MPS Battery Management Advantages
MPS Battery Management Advantages Competitor Solution Main PCB Battery Pack MPS Solution Main PCB Battery Pack Charger IC Battery Pack Protection IC Battery Over-voltage Interface Charger Management Protection (OVP) Fuel Gauge IC IC System (BMS) IC IC USB Detection IC Cell Balancing IC • MPS solutio
Slide 26: Battery Management System (BMS) Growth Markets
Battery Management System (BMS) Growth Markets Power Tools MPS BMS Solutions E-Bike 4G/5G Towers Factory Robots EV Home Backup + - 48V Battery Pack Battery Management 15KW System (BMS) IC Pack
Slide 27: Capitalizing on USB Type-C and PD Expansion
Capitalizing on USB Type-C and PD Expansion • CAGR of 105% over the next 5 years and $3B TAM in semiconductor IC revenue in 2021 • MPS currently has key design wins in the Wireless and Consumer electronics segments
Slide 28: USB Type-C and PD Charging Growth Markets
USB Type-C and PD Charging Growth Markets MPS USB-C Charging Solutions Wearable Notebook & 2-in-1 SW1 SW2 BST2 USB Type-C 5-20V up to 100W in/out Charger 1-4 series cell battery packs Smartphone & Connected Tablet Devices Portable Power
Slide 29: Why MPS Battery Management Will Win
Why MPS Battery Management Will Win • Increasing product offering diversity driving SAM expansion • Growth strategy focused on high level of integration of charger, BMS, USB, and protection functions • Fully monolithic chargers for high-power USB Power Delivery applications • R & D investment on pre
Slide 30: Automotive
Automotive Allen Chen MES
Slide 31: MPS Automotive Growth is Accelerating
MPS Automotive Growth is Accelerating MPS Automotive Revenue, 2013-2017 $53M
Slide 32: MPS Automotive Growing Over 4x Market
MPS Automotive Growing Over 4x Market 4Q17 Auto Revenue Growth, YoY Auto Power Management Market Share T* A* Ot her Aut o Semis M* R* MPS O* Total Auto Semiconductor Market ~13% Power TAM: $7B Source: Deutsche Bank automotive semiconductor market tracker Source: MPS internal analysis, competitor ann
Slide 33: Great Revenue Diversification
Great Revenue Diversification Revenue Mix by Customer Key Regions 50% of automotive Automotive revenue shared revenue comes from amongst Europe, China, ‘long tail’ customers Japan, South Korea
Slide 34: MPS Ramping At Half of Top Tier 1s
MPS Ramping At Half of Top 50 Tier 1s …and engaged with most of the rest Tier 1 Automotive Suppliers OEMs
Slide 35: Three Major Automotive Trends
Three Major Automotive Trends Autonomous Connected Electrification Driving Cars MPSSemi Per-Car Automotive Power Content for TAM Car Subsystem 18x $13B $9B $7B 8x 1x Level 2 Low Automation Level 3 More Automation Level 4/5 Full Automation Internal Combustion Engine 2018Hybrid Mild 2020Engine 2023 EV
Slide 36: Our Target Automotive Applications
Our Target Automotive Applications Our Target Automotive Applications Digital Cockpit Lighting Body Electronics Battery ADAS Infotainment, Matrix Headlamp, HVAC, Seat, Lift Management Radar, Camera, Cluster, HUD, USB Dynamic Lighting, Gate, Auto Door 48V, HEV, EV Lidar, Self-Driving Charging Interio
Slide 37: Technology is Our Core Advantage
Technology is Our Core Advantage Packaging Integration Full Power Tree o 1ST AUTO QUALIFIED o WORLD’S MOST o ONE-STOP FLIP-CHIP POWER COMPACT integrated SHOPPING for every PART approved by a LED driver module power rail major Tier 1 (top 5) (with inductor) o ADVANCED o 2X POWER DENSITY o 4X SMALLER
Slide 38: Higher Integration: USB Charging, Power Modules
Higher Integration: USB Charging, Power Modules Competitor: 1x Buck Ctrl 2x Type-C Ctrl 1x DCP Ctrl 2x FETs = 6 Parts MPS Solution: 1x Fully-Integrated IC Traditional Solution: 1x Sync Buck 1x Inductor 2x Caps MPS Solution: = 4 Parts 1x Module
Slide 39: Automotive Long Term Goal
Automotive Long Term Goal MPS Automotive Business, 2013 - 2021 40-50% CAGR 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 40: Michael Hsing, CEO
Michael Hsing CEO MES
Slide 41: e.Motion: A Market in Motion
e.MotionTM A Market in Motion Jens Muttersbach
Slide 42: How does e.Motion work?
e How does .MotionTM work? Sensima 3D magnetic field MPS Algorithm measurement a Eliminates electronic design! Only needs software code adjustment! Width of a hair! MPS Integrated Motor Driver e.MotionTM Or Platform Competitor’s solution Simple, Easy Solutions
Slide 43: e.Motion: Our Solution for Integrated Motion Control
e.Motion TM Our Solution for Integrated Motion Control One-stop Solution for Advanced Drive Tasks POSITION SENSING MOTOR DRIVERS Angle Feedback Energizing the Windings Magnetic Efficiency Small & Robust Size
Slide 44: Huge and Diverse Market
Huge and Diverse Market Consumer Industrial Automotive Pure Sensing Controlled Motion
Slide 45: MPS Spinaxis Technology – Our Unique Advantage
MPS Spinaxis Technology– Our Unique Advantage • MPS proprietary • Integrated angle sensor • Based on a simple time measurement B Phase t α Detect α Customer Benefits Replace bulky optical encoders Lower power consumption Fast sensing Small components Robust setup Attractive price
Slide 46: MagAlpha Angle Sensor Family has Promising Growth
MagAlpha Angle Sensor Family has Promising Growth 20+ products already have design wins: Consumer Industrial Automotive Medical
Slide 47: Leveraging MPS’ Strength in Power Semiconductors
Controlled Motion Leveraging MPS’ strength in power semiconductors Technology Packaging Testing Support Customer benefits Size Efficiency Thermal Cost Stepper Brushed DC Brushless DC
Slide 48: A Lot of Drive in Motor Drivers
A lot of Drive in Motor Drivers Portfolio addressing stepper, brushed and brushless DC motors Providing high integration and efficiency in small footprints Design wins: Consumer Industrial Automotive
Slide 49: e.Motion: A Market in Motion
A Market in Motion e.Motion TM Addresses the challenges & benefits of a growing market Motion control market trends • Overall number of electric motors growing • Strong trend towards brushless DC motors • Efficiency • Space • Noise • Torque ripple • Challenge: cost for controlling BLDC motors
Slide 50: Typical Motion Control
Typical Motion Control Standard solution Optical encoder: $2 … $100 Encoder Hall elements: $0.5 … $2 Hall BLDC motor Processing & drive circuit: $8 ... $50 Signal Processing & Drive Circuit Overall System Size: 2x … 5x Volume of the Motor
Slide 51: Integrated Motion Control – e.Motion
Integrated Motion Control – e.Motion Standard Solution e.Motion TM solution e.Motion BLDC motor Encoder Hall BLDC motor Signal Processing & Position sensing Combined into Drive Circuit Signal processing single e.Motion chip Motor driver 4x4mm2 Providing field-oriented control (FOC) algorithm to achi
Slide 52: Motion Control Long Term Goal
Motion Control Long Term Goal 60-80% CAGR Motor Drivers Position Sensors e.MotionTM 2016 2017 2018E 2019E 2020E 2021E motor drivers position sensors e.Motion
Slide 53: Key Take-aways
Key Take-aways • Well positioned by unique technologies in both • Magnetic position sensing • Motor drivers and pre-drivers • High growth rates in these markets • Convergence into e.Motion • Unique bundle for integrated motion control • High value for customers • Technical & cost advantage for custo
Slide 54: Michael Hsing, CEO
Michael Hsing CEO MES
Slide 55: Product Families
Product Families AC/DC Power Conversion DC/DC Power Conversion Battery Management Class-D Audio • High-Voltage Buck Regulator • Step-Up (Boost) • Li-Ion Single and Multi-Cell • Analog Input Class-D Amplifiers • High-Voltage LDO • Step-Down (Buck) • USB Complaint Chargers • PWM Input Power Stages • S
Slide 56: $1B to $2B
$1B to $2B MES
Slide 57: Slide 57
Slide 58: 44
44
Slide 59: Parcel Sorters
Parcel Sorters Motor Motor Control & DCDC Optical Encoder
Slide 60: Warehouse
Warehouse Motor Battery Motor Control DCDC BMS
Slide 61: Textile Machinery Modernization
Textile Machinery Modernization Motor control / DC-DC
Slide 62: Textile Machine Teardown
Textile Machine Teardown Encoders Motors Motor Controllers & DC-DCs
Slide 63: Building Automation
Building Automation Air Fluid Valves Damper/Valve DC-DC, AC-DC Motor Controller
Slide 64: Industrial Hand Tool Electrification
Industrial Hand Tool Electrification BMS Motor Controller Battery
Slide 65: Others
Others Motor Control, DC-DC AC-DC
Slide 66: Other Large Market Segment
Other Large Market Segment ACDC, DCDC Replaced by on mEZ module Relays Replaced by MPS electronic Relays
Slide 67: Leveraging 2000+ Products
Leveraging 2000+ Products AC/DC Power Conversion DC/DC Power Conversion Battery Management Class-D Audio • High-Voltage Buck Regulator • Step-Up (Boost) • Li-Ion Single and Multi-Cell • Analog Input Class-D Amplifiers • High-Voltage LDO • Step-Down (Buck) • USB Complaint Chargers • PWM Input Power S
Slide 68: MPS Reconfigurable Standard Products
MPS Reconfigurable Standard Products DC-DC AC-DC Motion Control LED Lighting Audio Amp Sensors
Slide 69: E to E through eCommerce
E to E through eCommerce
Slide 70: E to E through eCommerce
E to E through 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
Slide 71: How MPS Wins with Field Programmable Modules and e-Commerce
How MPS Wins with Field Programmable Modules and e-Commerce Dean Gannon
Slide 72: Reaching Customers at Scale
Reaching Customers at Scale Website Customer Acquisition Paid Search Direct Referral Social Search Engines (SEO) Email Search Content Browse Products
Slide 73: Tens of thousands of customers
Website User Growth Users from Tens of thousands of customers All Channels Digital Marketing Basics Initiated 100% increase Users from Channel A No actions Flat Results Users from Channel B 2015 2016 2017 2018
Slide 74: Create Your Design: Web-Based Design Tool
€ > CO a Secure | https://www.monolithicpower.com/en/mezd71201a-a.html tr | Bre STEP1 STEP2 STEP3 Create Your Design Evaluate Your Design Get Production Ready Name of Customer's Design v1.0 My Design: 2 Orderable 0 Modified +NEW | Save | vo tog t @ Load @ Power Suppty —+ - LT LT to*t0y8_ ns Vin Max
Slide 75: E to E Service/Solution through eCommerce
E to E Service/Solution through eCommerce Every Design Customized MPS Algorithm Custom Parts Delivered in Days
Slide 76: Product Roadmap
Product Roadmap LED Lighting Position g Sensors Audio Amps
Slide 77: Turnkey Power Solutions: $9B Addressable Market
Turnkey Power Solutions $9B Addressable Market
Slide 78: Financial Summary
Financial Summary Bernie Blegen
Slide 79: Q2 ‘18 Guidance
Q2 ‘18 Guidance Initial Guide Updated April 26, ‘18 June 7, ‘18 Revenue $135 – $141M $138 – 141$M Non-GAAP Gross Margin% 55.4% - 56.4% 55.6% – 56.4% Non-GAAP R&D + SG&A $33.7 – $36.7M $34.7 – $36.7M Stock Comp $15.2 – $17.2M $15.2 – $17.2M Fully diluted shares 43.9 – 44.9M 43.9 – 44.9M
Slide 80: Consistent Revenue Growth & Shareholders’ Return
Consistent Revenue Growth & Shareholders’ Return Stock Price $160 * $570m $140 2017: MPS 21.2% vs. Analog 10.9% $120 $471m $100 Revenue ($m) MPWR Stock Price $389m $80 SOX Index $333m $60 $283m $40 $238m $197m $214m $20 $0 2011 2012 2013 2014 2015 2017 2018 | | | | | | 2016 | | * Wall Street analyst
Slide 81: Diverse End Markets
Diverse End Markets 2014-2017 % of Revenue 2010 2014 2017 18Q1 CAGR Automotive 1.9% 4.2% 11.4% 15.5% 65.4% Storage / Computing 10.4% 16.3% 21.4% 23.5% 29.7% Industrial / Other 4.8% 13.2% 13.4% 12.6% 19.2% Consumer 65.1% 43.4% 40.3% 36.7% 15.6% Communications 17.8% 22.9% 13.5% 11.7% -0.5% Total 100%
Slide 82: Operating Leverage and Margin Expansion
Operating Leverage and Margin Expansion Revenue Op Income % Non-GAAP EPS 120% Increase 70% Improvement 214% Increase $500 $471M 35% $3.50 $450 30% 28.6% $3.00 $2.93 $400 $350 25% $2.50 $300 20% $2.00 $250 16.8% $214M 15% $1.50 $200 $150 10% $1.00 $0.93 $100 5% $0.50 $50 $0 0% $0.00 FY12 FY17 FY12 FY
Slide 83: Capital Allocation
Capital Allocation $650 $600 $550 52% Cash returned to $500 shareholders through stock $450 buybacks and $400 dividends $350 $300 $250 $200 $150 $100 $50 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Actual Cash Cash adjusted for Stock Buybacks and Dividends
Slide 84: Growth Drivers by End Market
Growth Drivers by End Market Computing Automotive Industrial Infrastructure Consumer Cloud Based Data Center Body Controls Instrumentation 5G and Wireless IOT GPU’s Factory & Bldg Wireless LED Lighting Base Stations Automation Charging Portable Power ADAS Robotics Networking Management Storage Batte
Slide 85: SAM Expansion
SAM Expansion Market 2015 SAM 2018 SAM Automotive $6B $7B Motion Control $2B $3B ACDC $1B $2B Modules $1B $2B Cloud Computing (Server / Storage) $800M $1B Networking / Telecom $600M $1B Battery Management $600M $1B Total Market SAM $12B $17B
Slide 86: Strategic Goals
Strategic Goals Full digital solutions – Synthetic Analog Integrated, software based, control with 3D sensor motor drive Advanced power analog processes Continued Compute and Automotive gains Future Network Infrastructure and Industrial wins
Slide 87: Financial Model (Non-GAAP) June 2018
Financial Model (Non-GAAP) June 2018 Financial Model 2017 2021 2015 2018 Actual Target Chg v ‘17 Revenue, YoY 20+% growth 20+% growth $470.9m $1BN 114% Gross Margin Mid to High 50’s Mid to High 50’s 55.6% 57.5% 1.9 pts 50% – 60% of 50% – 60% of R&D & SG&A annual revenue annual revenue 27.0% 21.5% (5
Slide 88: Q&A
Q&A Michael Hsing CEO Bernie Blegen CFO Maurice Sciammas VP of Sales and Marketing Jinghai Zhou Cloud Computing Chris Sporck Battery Management Allen Chen Automotive Dean Gannon e-Commerce Jens Muttersbach e.Motion
Slide 89: Closing Summary
Closing Summary • Disruptive new products allowing unprecedented levels of integration, efficiency and ease of use. • Pressing ahead with process technology lead • Expanding in high growth, end markets of Automotive, Industrial, Cloud Computing and Networking • Significant operating leverage while c