Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q4 2023 Earnings Presentation
36 slides from Diodes's earnings presentation, Feb 6, 2024
Slide 1: Investor Relations Diodes Incorporated
Investor Relations Diodes Incorporated (DIOD) Plano, TX, USA February 6, 2024 Exhibit 99.3
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: Management Representative: Dr. Keh-Shew Lu
Management Representative Dr. Keh-Shew Lu Chairman and CEO Experience: President & CEO, Diodes Incorporated Since 2005 Texas Instruments 27 years Senior Vice President of TI Worldwide Analog and Logic President of Texas Instruments – Asia Education: Honorary Doctorate in Engineering National Cheng K
Slide 4: Management Representative: Gary Yu
Management Representative Gary Yu President Experience: Diodes Incorporated, since 2008 Chief Operating Officer Senior Vice President, Business Groups President, Asia Pacific Region General Manager, Shanghai Wafer Fabrication and BCD Business Unit Vice President of Asia Pacific Sales Manager, Sensor
Slide 5: Company Representative
Company Representative Experience: Head of Corporate Marketing, Diodes Incorporated Head of Corporate Marketing, Pericom Semiconductor Vice President, Marketing, CA Technologies (Broadcom) Director, Global Marketing Strategy, EMC Director, Marketing, Zarlink Semiconductor (Microchip) Marketing Manag
Slide 6: 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, logic and mixed signal) semiconductor products to the world’s leading companies in the automotive, industrial, compu
Slide 7: Investing for the Future
Investing for the Future 2006 2006 2012 2015 2008 2013 2019 2020 2022 Anachip Corporation Taiwan Advanced Power Devices Zetex Semiconductors Power Analog Microelectronics BCD Semiconductor Pericom Semiconductor TI’s Greenock fab (GFAB) Lite-On Semiconductor Onsemi‘s fab (SPFAB) Global Operations and
Slide 8: Global Organization
Global Organization Wuxi, China Shanghai, China Jhongli, Taiwan Hsinchu, Taiwan Taipei, Taiwan Munich, Germany Neuhaus, Germany Plano, Texas Milpitas, California Greenock, UK Chengdu, China Logistics Hub and Warehouses Oldham, UK Key: Headquarters Wafer Fab Assembly/Test Design/Sales/Marketing South
Slide 9: Our Sustainability Commitment
Our Sustainability Commitment Our commitment to a sustainable and profitable business is built around ESG Please refer to Governance and Oversight for additional details Social (S) Governance (G) Environment (E) Climate Change Natural Resources Pollution & Waste Biodiversity Strategy & Oversight Ris
Slide 10: Longer Term Corporate Objectives
Longer Term $B 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: $2.5B by 2025
Slide 11: Profitability Growth Track Record of Continued Outperformance
Profitability Growth Track record of Continued Outperformance Annual Revenue Gross Profit ($ in millions) ($ in millions) CAGR: 12% (2005 – 2023) CAGR: 13% (2005 - 2023)
Slide 12: Gross Margins and EPS
Gross Margins and EPS Gross Margins (%) Non-GAAP EPS ($) CAGR: 22% (2012 - 2023)
Slide 13: Targeted Market Segment Goal
Targeted Market Segment Goal Automotive Connected driving, comfort/style/safety, electrification/powertrain Industrial Embedded systems and precision controls, and AIoT Consumer IoT: wearables, home automation, smart infrastructure Communications Smart phones, 5G networks, advanced protocols, and ch
Slide 14: Key Growth Areas
Key Growth Areas Automotive and Industrial are Driving Growth Automotive – 28% CAGR (2013 – 2023) Focused on connected driving, comfort, style, safety, and electrification Released 362 new automotive-compliant products in 2023 Increased dollar content per car to $161 Industrial – 11% CAGR (2013 – 20
Slide 15: Total Solutions Provider
Total Solutions Provider Example: Embedded System Applications
Slide 16: 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 BLDC motor / fan control Migration from Brushed to Brushless DC Motors Electrification/
Slide 17: Automotive Opportunity
Automotive Opportunity Automotive Potential Revenue $ / Car Automotive Motor Control $50.70 Connected Driving (Infotainment, Telematics & ADAS) $71.30 Powertrain, Electrification & Body Control Electronics $22.60 Lighting – Moving to LED $16.50 Total $161.20 Normalized to 2013 $ Content/Car Year
Slide 18: Automotive Surround-View SuperCAM Platform
Automotive Surround-View SuperCAM Platform Advanced Clock Gen, Clock Buffer, Crystal Oscillator, USB Power Switch, and Protection solutions for mission-critical need Automotive Compliant* Products Diodes’ Key Products $ / Box Analog >$1.20 Power Management >$0.70 MOS/BJT >$3.50 Diodes and Rectifiers
Slide 19: Automotive Compliant USB Charging
Automotive Compliant USB Charging USB charging is a high growth application with approximately 2 to 8 ports per vehicle USB PD is an important expansion capability up to 100W/port USB-C supports DP over USB and opens up the opportunity to share portable equipment’s screen on interior display Diode
Slide 20: Industrial Content Expansion
Industrial Content Expansion Increasing IC content in embedded systems Switching and signal path for networked systems and automation Signal conditioning and timing for precision controls Industrial / motor controls, sensors, and power management for smart meters Green power, Energy storage 2013 - 2
Slide 21: IoT – Machine to Machine (M2M)
IoT – Machine to Machine (M2M) Growth Opportunities: Power, Sensor, DC-DC Gate Driver, BJT, MOSFET XTAL and clock Packet switch, ReDriver, IO Expander, MIPI, and USB charging M2M – Dominated by short range technology 73% are short range, mostly Wi-Fi 2030: connections @ 29,400 million M2M – By Appli
Slide 22: Cloud Computing Accelerating Enterprise Market
Cloud Computing Accelerating Enterprise Market ReDriver support for PCIe or USB connectivity Wide range of signal protocols: PCIe, CXL, SAS, SATA, USB MUX switch products for high capacity solid state storage Packet switches for accelerating AI computing Crystal oscillators for increasing clocking s
Slide 23: Server Platform Solution
Server Platform Solution Almost all of Server vendors are Diodes’ existing customers Diodes’ products are well positioned in this segment PCIe, USB, & SATA ReDrivers, Clock Buffer, Oscillator, I3C MUX, Level shifter, IO Expander, Bus Switch, QSPI MUX, Logic IC, MOSFET, LDO, TVS, DC-DC Diodes’ Key Pr
Slide 24: 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 & Surve
Slide 25: Sensor IoT Segment: Smart Home
Sensor IoT Segment: Smart Home Smart Home Safety and Security Climate Control Consumer Electronics Lighting control 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 Wireless Controller Smart Home
Slide 26: Communications - 5G Applications
Communications - 5G Applications Focus Applications: Cloud Computing AI / Data Center Server Gateway Internet Gateway Fiber network Core Network, Cell Stations Small Cells Base Station Edge Computing Server Smart antenna Fiber network End Products Portables: Smartphone, Tablet Smart Car Consumer: VR
Slide 27: Communication – 5G Distributed Unit
Communication – 5G Distributed Unit Advanced Solution in Signal Integrity, Signal/Bus/Power Switches and IO Expanders for diversified networking applications Global Logistics provide cost-competitive solution with industry standard pin-outs and flexible package options Diodes' Key Products $ / Box A
Slide 28: Complete Platform Solution
Complete Platform Solution 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 Video Switch TVS H
Slide 29: Technology Focus
Technology Focus Products eUSB/USB repeater and Ultra Low Cj TVS for signal integrity Automotive Packet Switch for Telematics / ADAS, high voltage LDO and DCDC products Complete USB-C / Power Delivery Solutions Low jitter timing solution for cloud computing High precision high bandwidth standard ana
Slide 30: Assembly and Test
Assembly and Test Efficient Manufacturing + Superior Processes China: Shanghai, Chengdu, and Wuxi Taiwan: Jhongli Germany: Neuhaus US: South Portland, Maine China: Shanghai and Wuxi Taiwan: Hsinchu and Keelung UK: Greenock and Oldham Bipolar, BiCMOS, CMOS and BCD process Global footprint with strong
Slide 31: Revenue Profile for FY2023
Revenue Profile for FY2023 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region Asia Pacific Europe Americas
Slide 32: Income Statement – Fourth Quarter 2023
Income Statement – Fourth Quarter 2023 ($ in millions, except EPS) 4Q22 3Q23 4Q23 Net sales 496.2 404.6 322.7 Gross profit (GAAP) 206.2 155.9 112.5 Gross profit margin % (GAAP) 41.6% 38.5% 34.9% Net income (GAAP) 92.1 48.7 25.3 Net income (non-GAAP) 79.6 52.5 23.4 Diluted EPS (non-GAAP) 1.73 1.13 0.
Slide 33: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Cash* 373 348 329 Inventory 349 360 390 Current Assets 1,188 1,162 1,187 Total Assets 2,194 2,288 2,368 Total Debt 301 185 62 Total Liabilities 892 705 558 Total Equity 1,303 1,583 1,810 * Cash and cash equivalents, restricted cash
Slide 34: First Quarter 2024 Business Outlook
Revenue to be ~$305 million, +/- 3.0% GAAP gross margin of 34.0%, +/- 1% Non-GAAP operating expenses 28.7% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest income of ~$2.0 million Income tax rate to be 18%, +/- 3% S
Slide 35: 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 Focus on key accounts Increased focus on high-margin automotive,
Slide 36: Thank you
1uncoRPORATED Thank you