Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q1 2023 Earnings Presentation
19 slides from Diodes's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results Diodes Incorporated (DIOD) May 9, 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 (discrete, analog, 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 68 new automotive-compliant products in 1Q’23 Increased dollar content per car to $140 Industrial – 15% CAGR (2013 – 20
Slide 7: 1QFY23 Performance
1QFY23 Performance Revenue GAAP Gross Profit $467.2M $194.5M gy 3.1% year-year gy 1.1% year-year GAAP Gross Margin 41.6% t 80 bps year-year Page 6 GAAP EPS $1.54 ye» year-year Non-GAAP EBITDA Net Income $73.4M $121.8M gy 8.6% year-year 26.1% of Revenue DISCRETE ANALOG oGic MIXED-SIGNAL Cash Flow fro
Slide 8: 1QFY23 Highlights
1QFY23 Highlights Gross margin has remained over 41% for the past four quarters and above our target model of 40% Achieved record 29% of product revenue in the Industrial market Automotive and Industrial totaled 47% of product revenue, exceeding 2025 target of 40% Automotive revenue reached record 1
Slide 9: Expanding Profitability Growth
Expanding Profitability Growth Track record of Continued Outperformance Annual Revenue CAGR: 14% (2005 - 2022) Gross Profit CAGR: 15% (2005 - 2022) ($ in millions) ($ in millions)
Slide 10: Consistent Quarterly Performance
Consistent Quarterly Performance Quarterly Gross Profit ($ Millions) Quarterly Revenue ($ Millions)
Slide 11: Driving Significant Operating Leverage
Driving Significant Operating Leverage +10.8% Non-GAAP EPS Revenue ($ Millions) +42%
Slide 12: Revenue Profile for First Quarter 2023
Revenue Profile for First Quarter 2023 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region Asia Europe Americas 18% 13% 22% 29% 18% 71% 29% 69% 17% 14%
Slide 13: Income Statement – First Quarter 2023
Income Statement – First Quarter 2023 ($ in millions, except per share amounts) 1Q22 4Q22 1Q23 Net sales 482.1 496.2 467.2 Gross profit (GAAP) 196.7 206.2 194.5 Gross profit margin % (GAAP) 40.8% 41.6% 41.6% Net income (GAAP) 72.7 92.1 71.2 Net income (non-GAAP) 80.3 79.6 73.4 Diluted EPS (non-GAAP)
Slide 14: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2021 Dec 31, 2022 Mar 31, 2023 Cash* 373 348 335 Inventory 349 360 342 Current Assets 1,188 1,162 1,122 Total Assets 2,194 2,288 2,286 Total Debt 301 185 125 Total Liabilities 892 705 620 Total Equity 1,303 1,583 1,666 * Cash, Restricted Cash and Short-term inve
Slide 15: Second Quarter 2023 Business Outlook
Revenue to be ~$467 million, +/- 3.0% GAAP gross margin of 41.8%, +/- 1% Non-GAAP operating expenses 22.0% 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%
Slide 16: 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 and Pericom
Slide 17: Thank you
1un CORPORATE D Thank you www.diodes.com
Slide 18: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income For the three months ended March 31, 2023: (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP net income was approximately $7.7 million, net of tax, non-cash share-based compensation expense. Excluding share-based
Slide 19: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the three months ended March 31, 2022: (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP adjusted net income was approximately $6.4 million, net of tax, non-cash share-based compensation expense. Excluding share-based compensati