Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q2 2023 Earnings Presentation
18 slides from Diodes's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results Diodes Incorporated (DIOD) August 8, 2023 Exhibit 99.2
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above 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
Slide 3: About Diodes Incorporated
About Diodes Incorporated Vision: Profitability Growth to Maximize Shareholder Value Our Core Values: Integrity, Commitment, Innovation Diodes delivers high-quality (analog, discrete, and mixed signal) semiconductor products to the world’s leading companies in the automotive, industrial, computing,
Slide 4: On-Track to Achieve Longer Term Corporate Objectives
On-Track to Achieve Longer Term Corporate Objectives 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 2025 Target: $1B Gross profit Gross Margin: 40% Revenue: $2.5B by 2025
Slide 5: Targeted Market Segment Distribution Goal
Targeted Market Segment Distribution Goal Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems and precision controls, and IIoT Consumer IoT: wearables, home automation, smart infrastructure Communications Smart phones, 5G networks, advanced prot
Slide 6: Key Growth Areas
Key Growth Areas Automotive and Industrial are Driving Growth Automotive – 31% CAGR (2013 – 2022) Focused on connected driving, comfort, style, safety, and electrification Released 110 new automotive-compliant products (including SiC MOSFETs) in 2Q’23 Increased dollar content per car to $140 Industr
Slide 7: 2QFY23 Performance
2QFY23 Performance $467.2M Flat Q-Q Revenue $195.4M GAAP Gross Profit + 0.5 % Q-Q 41.8% + 20 bps Q-Q GAAP Gross Margin $1.59 Flat Q-Q Non-GAAP EPS $73.3M Flat Q-Q Non-GAAP Net Income $133.5M EBITDA 28.6% of Revenue $92.6M Cash Flow from Ops $334M/$89M Strong Balance Sheet Cash/Debt 19.8% of Revenue
Slide 8: 2QFY23 Highlights
2QFY23 Highlights 2Q’23 represented sixth consecutive quarter of above 40% (our target model) gross margin Achieved 29% of product revenue in the Industrial market Automotive and Industrial totaled 48% of product revenue, exceeding 2025 target of 40% Automotive revenue reached record 19% of product
Slide 9: Profitability Growth Track record of Continued Outperformance
Profitability Growth Track record of Continued Outperformance Annual Revenue Gross Profit ($ in millions) ($ in millions) CAGR: 14% (2005 - 2022) CAGR: 15% (2005 - 2022) * Revenue/Gross Profit for 2023 are based on first half results and Q3 guidance provided on August 8, 2023
Slide 10: Consistent Quarterly Performance
Consistent Quarterly Performance Quarterly Gross Profit ($ Millions) Quarterly Revenue ($ Millions)
Slide 11: Revenue Profile for Second Quarter 2023
Revenue Profile for Second Quarter 2023 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region Asia Europe Americas 18% 12% 22% 29% 19% 69% 31% 67% 20% 13%
Slide 12: Income Statement – Second Quarter 2023
Income Statement – Second Quarter 2023 ($ in millions, except per share amounts) 2Q22 1Q23 2Q23 Net sales 501.0 467.2 467.2 Gross profit (GAAP) 206.5 194.5 195.4 Gross profit margin % (GAAP) 41.2% 41.6% 41.8% Net income (GAAP) 80.2 71.2 82 Net income (non-GAAP) 86.9 73.4 73.3 Diluted EPS (non-GAAP)
Slide 13: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2021 Dec 31, 2022 June 30, 2023 Cash* 373 348 334 Inventory 349 360 326 Current Assets 1,188 1,162 1,160 Total Assets 2,194 2,288 2,341 Total Debt 301 185 89 Total Liabilities 892 705 610 Total Equity 1,303 1,583 1,731 * Cash, Restricted Cash and Short-term inve
Slide 14: Third Quarter 2023 Business Outlook
Revenue to be ~$425 million, +/- 3.0% GAAP gross margin of 40%, +/- 1% Non-GAAP operating expenses 23.0% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest expense of ~$1.0 million Income tax rate to be 20%, +/- 3% Sh
Slide 15: Investment Summary
Investment Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20%+ operating profit Next Strategic Goal: $1B gross profit Tactics: Total system solutions sales approach and content expansion driving growth Increased focus on high-margin Automotive, Industrial, analog, an
Slide 16: Thank you
1un CORPORATE D Thank you www.diodes.com
Slide 17: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income For the three months ended June 30, 2023: (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP net income was approximately $6.0 million, net of tax, non-cash share-based compensation expense. Excluding share-based
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the three months ended June 30, 2022: (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP adjusted net income was approximately $6.6 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensatio