Monolithic Power Systems, Inc. · NASDAQ:MPWR
Monolithic Power Systems — Investor Presentation (May 2024)
34 slides from Monolithic Power Systems's investor presentation, May 24, 2024
Slide 1: MPS Management
MPS Management May 24, 2024 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) YoY MPS SIA 2023 +10% * Growth Above Market 2018 21.2% 10.8% 2019 7.8% -8.2% Industry Downturn 2020 34.5% 2.6% MPS Above Market 2021 43.0% 33.1% 2022 48.6% 20.8% 2023 1.5% -8.9% 2019 +16% Above Market 2012 +16% 2009 +13% Above Market Above Market * Wall Street
Slide 4: Great Revenue Diversification by GEO
Great Revenue Diversification by GEO 37% 11% 35% 6% 11% 3
Slide 5: Diverse End Markets
Diverse End Markets 2019-2023 % of Revenue 2010 2020 2023 24Q1 CAGR Enterprise Data - 8.6% 17.7% 32.7% 61.1% Storage and 10.4% 21.4% 27.0% 23.2% 36.5% Computing Automotive 1.9% 12.9% 21.7% 19.0% 44.6% Communications 17.8% 16.9% 11.3% 10.2% 24.7% Consumer 65.1% 26.1% 12.9% 8.3% 9.3% Industrial / Othe
Slide 6: Growth Drivers by End Market
Growth Drivers by End Market Computing Automotive Industrial Infrastructure Consumer Smart 5G and AI at the Accelerators ADAS Meters Wireless Edge BMS / Factory & Artificial Base Home Traction Building Intelligence Stations Appliances Inverters Automation Cloud Based Digital Robotics Networking Gami
Slide 7: Leveraging 4000+ Products
Leveraging 4000+ Products AC/DC Power Conversion E-Fuse, USB & Load Switches Class-D Audio • High-Voltage Buck Regulators • Configurable Current Limit, Up to 50A per Device • Digital Controllers and Processors • High-Voltage LDOs • Adjustable Slew Rate • Analog Input Class-D Amplifiers • Flyback Con
Slide 8: MPS Technology Evolution
MPS Technology Evolution Proprietary Technologies Drive SAM Proliferation $21B(1) $16B(1) $10B(1) SiC • Multi KWatts Green Power • Full Integration • Ultimate Integration (SoC) • Power • Power • Highest Density • Analog • Analog Si • Integrated Power • Digital/ • uController Analog Memory • Memory •
Slide 9: SAM Expansion
SAM Expansion Market 2015 SAM 2018 SAM 2023 SAM Automotive $4B $6B $7B Motion Control $2B $3B $4B ACDC $1B $2B $2B Modules $1B $2B $2B Cloud Computing (Server / Storage) $800M $1B $4B Networking / Telecom $600M $1B $1B Battery Management $600M $1B $1B Total Market SAM $10B $16B $21B 8
Slide 10: MPS Global Footprint
MPS Global Footprint HQ – Kirkland, WA USA San Jose, CA USA Livonia, MI USA Enschede, Netherlands Ettenheim, Germany Chengdu, China 9
Slide 11: Computing
Computing mrS
Slide 12: >$4B SAM and Rapidly Growing
From Board Level Power to Rack and Beyond >$4B SAM and Rapidly Growing CPU Server Board GPU AI Server Rack Data Center POL eFuse <2018 2020 2022 2024 POL eFuse + CPU power DDR power + 48V IBC GPU Power + Rack AC-DC PSU 48V BBU Greener, Smarter, 48V PDU SSD Storage Denser Cooling Fan Power Cooling Pu
Slide 13: MPS Powers AI
MPS Powers AI AI Server Power Architecture AI driving growth to > $3B in data center $3,500 Server $3,000 AI $2,500 $2,000 $1,500 $1,000 $500 $- 2023 2024 2025 2026 2027 2028 Source : Intel, Omdia, Semianalysis Defining the Ecosystem Designing solutions for the toughest challenges Delivering to the
Slide 14: Server Board Level Power Solutions
Server Board Level Power Solutions CPU Server: $1B SAM $80 MPS Content / Server CPU Power $600M SAM DDR5 Memory Power $280M SAM Point of Load $60M SAM EFuse $60M SAM GPU Server: $500M SAM 13
Slide 15: Why is MPS Winning?
Why is MPS 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 2019 2018 2020 2019 2021 2020 2022 While Others Hitting Size and Frequency Boundaries, MPS Monolithic Solution Takes Off 14
Slide 16: 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 12V MPS 48V CPU Servers to 5V/12V GPU Servers Cooling Pump Fan Network Storage MPS AC to 48V DC Battery Power Rack Management Battery Pack AC Power Supply System AC 15
Slide 17: Automotive
Automotive mrS
Slide 18: MPS Automotive – Global and Growing
MPS Automotive – Global and Growing MPS Automotive Revenue $395M 20% EMEA 20% Korea $300M 4x 17% 30% 13% Americas Rest of Asia China $204M $109M $90M 2.5 Billion 22% 13 Years Auto-grade ICs shipped Total company business Auto industry experience 2019 2020 2021 2022 2023 17
Slide 19: Automotive Applications Covered
Automotive Applications Covered 18
Slide 20: MPS Exclusive Solutions for ADAS / Electrification
MPS Exclusive Solutions for ADAS / Electrification ONLY Single Vendor 40% Smaller Footprint 4X Higher Power Density Smaller, Safer ADAS $40 $8 $8 /car /car /car MPSafe™ High Power Controller + DrMOS MPSafe™ Camera PMIC 30W Buck-Boost Converter For ADAS Compute SoC For L2/L3/L4 Surround View Cameras
Slide 21: Relentless Expansion of Product Categories
Relentless Expansion of Product Categories New Portfolio Launches Electrification 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 / Gate Drivers sock
Slide 22: MPS Automotive: $1B Wins in Pipeline
MPS Automotive: $1B Wins in Pipeline Infotainment and Telematics Luxury OEM Infotainment Infotainment Digital Cluster Android Module Telematics Collision Avoidance Domain Advanced Backup ADAS Domain Controller Triple Forward Camera Master Backup Camera Surround View Monitor Near-Range Camera Camera
Slide 23: Data Com
Data Com mrS
Slide 24: Data Com / Security – $4B SAM
Data Com / Security – $4B SAM Satellite & Ground Receiver: Dish + Wifi Router DSL/VDSL & Security Systems Enterprise WiFi & Security Systems 23
Slide 25: Clean Energy & Storage
Clean Energy & Storage mrS
Slide 26: $2B SAM Opportunities in Carbon Reduction: Clean Energy and Storage
$2B SAM Opportunities in Carbon Reduction: Clean Energy and Storage Over $150M design wins 25+ products in development Wind Farm Solar Inverter In development Geothermal In development Megawatt Battery Home Battery Smart meter Storage Storage 25
Slide 27: Other Revenue
Other Revenue mrS
Slide 28: Over $3B SAM
Over $3B SAM Super Computer / 5G Base Station Semi-equipment Inspection Robot Co-Robot UltraSound Big Data Home appliances Point of sale USB PD RV&Boat X-Ray 27
Slide 29: Well Positioned with Excellent Financial Strength
Well Positioned with Excellent Financial Strength
Slide 30: Consistent Revenue Growth & Shareholders' Return
Consistent Revenue Growth & Shareholders’ Return Stock Price Revenue in millions $750 2023: MPS 1.5% vs. Analog (8.9%) $2,400 $700 $2,250 $650 $2,100 $600 $1,950 $550 $1,800 $500 Revenue $1,650 $450 $1,500 MPWR Stock Price $400 $1,350 SOX Index $350 $1,200 $300 $1,050 $250 $900 $200 $750 $150 $600 $
Slide 31: Cash and Cash Returned to Shareholders
Cash and Cash Returned to Shareholders • Dividend payout: $49.6M or $1.00/sh in Q1’24 (50.6M or $1.00/sh in Q4’23) • Dividend increase to $1.25/share beginning in April 2024 • 42% free cash flow was returned to shareholders from Q1’21 to Q1’24. 30
Slide 32: MPS grows regardless of the market environment
MPS grows regardless of the market environment
Slide 33: Q&A
Q&A 32
Slide 34: EPS Growing Faster Than Revenue
EPS Growing Faster Than Revenue * Wall Street Forecast 33
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