Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Needham 21st Annual Growth Conference 2019
40 slides from Diodes's conference presentation, Jan 14, 2019
Slide 1: Needham 21st Annual Growth Conference
Page Needham 21st Annual Growth Conference New York, New York January 15th, 2019 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, analog and mixed-signal 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
Slide 7: Global Organization - TS16949 Manufacturing
Global Organization - TS16949 Manufacturing Page
Slide 8: 2018: Record Annual Revenue & Gross Profit
Page 2018: Record Annual Revenue & Gross Profit Track Record of Consistent Growth ( In millions ) +41.2% +3.6% -0.2% -4.7% +10.8% +11.9% +30.5% +7.7% +15.2% *2018 estimate based on midpoint of 4Q’18 guidance as provided on November 6, 2018
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 Implied 20172025 CAGR NR$1Bà 2.5B11.4% GP%35%à40% GP$ $360Mà $1B13.6% R&D%5%à 7% SG&A%15%à13% Op. Profit15%à20% Based on the midpoint of 4Q18 guidance, NR would grow 15.2% YoY, GP$ would grow 20% YoY in 2018
Slide 12: 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 Smart phones: advanced protocols and charging Computing
Slide 13: 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 Brushless Motor Control (BLDC) Migrating from Brushed to Brushless DC Motors Electrific
Slide 14: 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 Ga
Slide 15: 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 16: 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 17: Successful Growth in Automotive
Successful Growth in Automotive Automotive revenue 27% CAGR 2013 to 2017 Automotive represented 9% of Diodes’ total revenue in 2018 Automotive will continue to be an increasingly significant market segment for Diodes Diodes’ Automotive Revenue Page
Slide 18: 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 19: IoT – Machine to Machine (M2M) Growth
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: connections @ 750 million 2023: connections @ 2600 million M2M – By product IoT and M2M Modems Routers POS Wireless beacon
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 – 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 22: 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 23: 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 MO
Slide 24: 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 25: 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 26: Computing Platform: Server/Storage Solution
Computing Platform: Server/Storage Solution PCIe 40-128 lanes Pcie SSD Power Management Processor I2C L/S Server Platform ReDriver MEZZ Card PCIe ReDriver PCIE CLK Buffer HCSL Clock Occulink XO To Back-plane 4 x 10GE 1 x 1GE Middle-plane HDD Plane Reset IC System Clock Diodes Opportunity BMC LAN Car
Slide 27: USB Type-C Total Solution: Smartphones
USB Type-C Total Solution: Smartphones Supports data, video, and power USB-C adoption to grow from 300M (2016) to 4B units (2021) - IHS Dec 2017 Vbus Tx/Rx Tx/Rx Tx/Rx Tx/Rx D+/D- SBU1, SBU2 D+, D- CC1, CC2 PMIC with PD Controller AUX+/AUX- Tx/Rx Tx/Rx Tx/Rx Tx/Rx TVS 10G Type-C USB /DP ALT ReDriver
Slide 28: USB Type-C Total Solution: Notebook, Tablet, PC and AIO
USB Type-C Total Solution: Notebook, Tablet, PC and AIO Diodes Key Products $ / System 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 Diodes, Rectifiers and TVS $0.50 Total (per USB-C port) $5.29 Enables
Slide 29: System Focus Industrial Controls
System Focus Industrial Controls Page
Slide 30: 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 31: 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 32: Key Differentiator – Packaging Design
Key Differentiator – Packaging Design Page Focus: Miniaturization and Power Efficiency ~ 2018 PowerDI5060-8L PD3333-8L 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 2019 ~ ITO220AC-S DFN0806-6 DFN0603-2 TO220-2/3L Power
Slide 33: 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 34: 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 35: Third Quarter 2018 Financial Performance
Third Quarter 2018 Financial Performance Page In millions, except per share 3Q17 2Q18 3Q18 YoY Revenue $285.2 $304.1 $320.9 12.5% Gross Profit (GAAP) $96.3 $107.3 $115.2 19.6% Gross Profit Margin % (GAAP) 33.8% 35.3% 35.9% +210bp Net Income (GAAP) $14.5 $25.1 $30.9 Net Income (non-GAAP) $22.6 $29.3
Slide 36: Balance Sheet
Balance Sheet Page Dec 31, 2017 Cash $248 $204 $150 Short-term Investments $30 $5 $7 Inventory $193 $217 $219 Current Assets $733 $662 $647 Total Assets $1529 $1489 $1467 Long-term Debt ( including the current portion) $413 $247 $166 Total Liabilities $708 $615 $515 Total Equity $820 $874 $952 Sept
Slide 37: Revenue Profile as of 3Q 2018
Revenue Profile as of 3Q 2018 By End Market Page 16% 27% 25% 23% 9% Industrial Communications Consumer Automotive Computing By Channel By Region 13% 76% 11% Asia Pacific North America 71% 29% Distribution OEM / EMS Europe
Slide 38: Fourth Quarter 2018 Business Outlook
Page Revenue to be approximately $315 million, plus or minus 3 percent, or down 1.9% q/q GAAP gross margin to be 36.0%, 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
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 a
Slide 40: Thank you
Diodes Inc /Del/ — Needham 21st Annual Growth Conference 2019 on 6ix