Alpha And Omega Semiconductor Limited · NASDAQ:AOSL
Alpha And Omega Semiconductor — Q1 2020 Earnings Presentation
25 slides from Alpha And Omega Semiconductor's earnings presentation, November 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION November 2019 (Nasdaq: AOSL) AOS Confidential
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward looking statement
Slide 3: Alpha and Omega Semiconductor (NASDAQ: AOSL)
ALPHA AND OMEGA SEMICONDUCTOR (NASDAQ: AOSL) Emerging total solution provider in >$40B market Solid foundation enabling accelerated growth Strong pipeline with major growth drivers Consistent execution approaching target model AOS Confidential 3
Slide 4: Immense Market for Power
IMMENSE MARKET FOR POWER $50B 13~ $40B 15%* $30B Automotive Industrial 7% $20B 4% Communications $10B Consumer 2013-2018 2013-2018 2018-2024 Computing Market CAGR AOS CAGR AOS CAGR $B 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: IHS 2018 * Calendar year base, Company estimates AOS Confidenti
Slide 5: Rapid Growth with Total Power Solution
RAPID GROWTH WITH TOTAL POWER SOLUTION Power Discretes MOSFETs, IGBT, GaN Advanced Packaging System Applications Know-How Total Power Solutions IC Design Silicon Technology AOS Confidential 5
Slide 6: Technology Investments Driving Diversification
TECHNOLOGY INVESTMENTS DRIVING DIVERSIFICATION AOS BROAD PORTFOLIO OF SOLUTIONS GaN / SiC ▪ MOSFET: Superjunction, IGBT Digital Controller ▪ Power IC, Modules, Digital Power ▪ GaN, SiC Power Modules IGBT Super Junction Shielded Gate Transistor Power IC Trench FET 2001 2006 2009 2010 2011 2012 2013 2
Slide 7: Built for Scale
BUILT FOR SCALE Shanghai A&T Oregon 8” Fab CQ JV: 12” Fab + A&T 7 AOS Confidential
Slide 8: Accelerating Growth
ACCELERATING GROWTH $1B CAGR ECONOMY OF SCALE 13~15%* $600M Server and Industrial market leader with $443M REACH Digital Power and IGBT CRITICAL MASS BUILT INFRASTRUCTURE Mobile Power Computing Power market leader market leader 2018-2024 AOS Revenue CY2018 CY2021 CY2024 *Calendar year base, Company
Slide 9: Major Growth Drivers for Multiple Years
MAJOR GROWTH DRIVERS FOR MULTIPLE YEARS COMPUTING MOBILE POWER AC/DC FOR PD HOME APPLIANCE SERVER / TELECOM PC leader Global PD Total Expand IGBT New market OEM customers Chipset Solution and Modules entrance with Digital Controller SAM: $400M SAM: $320M SAM: $270M SAM: $430M SAM: $1B *Calendar year
Slide 10: PC: Share Gains, High Value Migration
PC: SHARE GAINS, HIGH VALUE MIGRATION COMPUTING EXPANDING BOM ▪ Market leader ▪ High performance MOSFET and PIC CPU Vcore ▪ Expanding BOM Graphic Cards DDR Memory PD Adapter SAM: $400M System Power Type C Battery Protection AOS Confidential 10
Slide 11: Strategic Alignment with Global OEMs
STRATEGIC ALIGNMENT WITH GLOBAL OEMS MOBILE POWER BATTERY PROTECTION QUICK CHARGER Supply all major smartphone vendors SAM: $320M • Safe operation • AOS 1st to support QC • Longer battery life • 10W → 18W+ • Robust performance • High performance MV FET AOS Confidential 11
Slide 12: Intelligent Modules for Home Appliance
INTELLIGENT MODULES FOR HOME APPLIANCE HOME APPLIANCE SIZE COMPARISON AOS IPM Solution with IGBT offers: 17 chips inside! • Smaller Footprint mm2 • Better Efficiency • Higher ESD and Reliability 1000 179% 900 800 151% 700 123% 600 Refrigerators, Washers / Dryers, 100% Air-con Fans 500 SAM: $430M 400
Slide 13: >$1 Billion New SAM with Digital Power
>$1 BILLION NEW SAM WITH DIGITAL POWER SERVER / TELECOM 5G BASE STATION SERVER DIGITAL POWER TOTAL SOLUTION Digital PWM Controller 2-7 per system Power Stage DrMOS MOSFET 11-21 per system SAM: $1B Processors FPGA Graphics DDR Memory System Voltage Rails AOS Confidential 13
Slide 14: Everyone Needs Power
EVERYONE NEEDS POWER WORLD CLASS OEMS / ODMS KEY DISTRIBUTORS (a member of) AOS Confidential 14
Slide 15: Financials
FINANCIALS AOS Confidential
Slide 16: Q1FY2020 Highlights
Q1FY2020 HIGHLIGHTS Record revenue quarter and 15th consecutive quarter of Year-over-year revenue growth Driven by strong momentum of mobile business Supported by additional supply contribution from Chongqing JV Chongqing JV 12-inch Phase 1 target run rate by Q1FY2021 AOS Confidential 16
Slide 17: Solid Growth in Revenue and GM
SOLID GROWTH IN REVENUE AND GM $500M 35.0% Revenue $451M $450M $422M NonGAAP GM% $400M $383M 29.0% 28.4% $350M $328M $336M 26.9% $300M 24.2% 23.0% $250M 19.8% $200M 18.6% 17.0% $150M $100M 11.0% $50M $0M 5.0% FY 15 FY 16 FY 17 FY 18 FY 19 * NonGAAP gross margin excludes share-based compensation expe
Slide 18: Disciplined Operating Expenses
DISCIPLINED OPERATING EXPENSES (in $ millions) Digital Controller Expenses NonGAAP Core business OPEX *excluding Digital Controller* $25M % of Core business OPEX excluding Digital Controller* 22.0% $2.8M $2.7M $3.1M $0.4M $2.3M $1.0M $1.4M $2.3M 21.0% $20M 20.0% $15M 19.0% $22M $22M $23M $21M $21M $
Slide 19: Healthy EBITDAS
HEALTHY EBITDAS ($millions) $56 $55 NonGAAP Net Income $51 EBITDAS $30 $33 $28 $31 $28 $20 $14 $6 $2 $0 ($3) FY14 FY15 FY16 FY17 FY18 FY19 FY20 SepQ * Excludes share-based compensation expenses, production ramp up costs and pre-production costs related to joint venture. AOS Confidential 19
Slide 20: JV on Track to Alleviate Capacity Constraints
JV ON TRACK TO ALLEVIATE CAPACITY CONSTRAINTS ▪ 12” fab Phase 1 mass production initiated in Q1 FY2020 CHONGQING JV $379M Total Capitalization ▪ Reach Phased 1 target run rate by Q1FY2021 ▪ Phase 1 supports about $150M additional AOS revenue AOS (51%) CHONGQING (49%) $35M cash $186M cash + Existing
Slide 21: Key Balance Sheet Metrics
KEY BALANCE SHEET METRICS (in $ millions) JUN 2018 JUN 2019 SEP 2019 AOS CQJV Consolidated AOS CQJV Consolidated AOS CQJV Consolidated CASH 88.3 43.2 131.5 100.7 21.2 121.9 88.1 15.0 103.1 DEBT 30.9 60.4* 91.3 41.0 99.9* 140.9 41.0 95.4* 136.4 INVENTORY 88.2 2.0 90.2 93.8 17.8 111.6 92.5 26.1 118.6
Slide 22: Approaching Target Model
APPROACHING TARGET MODEL NON-GAAP MODEL CY2021 CY2024 REVENUE $600 MILLION $1 BILLION GROSS MARGIN* >30% >30% OPERATING EXPENSE** ~20% ~20% * NonGAAP gross margin excludes share-based compensation expenses and production ramp up costs related to joint venture. ** NonGAAP Operating Expense excludes s
Slide 23: Appendix
ALPHA & OMEGA SEMICONDUCTOR APPENDIX AOS Confidentia
Slide 24: AOS Confidential
Three Months Ended September 30, June 30, September 30, 2019 2019 2018 GAAP gross profit $ 26,932 $ 27,636 $ 32,611 Share-based compensation 436 431 497 Production ramp up costs related to joint venture 5,991 2,587 1,117 Non-GAAP gross profit $ 33,359 $ 30,654 $ 34,225 Non-GAAP gross margin as a % o
Slide 25: Focused Markets (as of Q1 FY2020)
FOCUSED MARKETS (AS OF Q1 FY2020) Communications Power Supply / Industrial ▪ Smartphone ▪ Quick Chargers / PD ▪ Telecom 23% ▪ Power Tools, Welding 18% Consumer Computing 18% ▪ Notebook / PC ▪ High-end TV 39% ▪ Server / AI ▪ Home Appliance Chart excludes ‘Service and Others’ of 2% AOS Confidential 25
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