Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q1 2023 Earnings Presentation
34 slides from Diodes's earnings presentation, May 9, 2023
Slide 1: Investor Relations Diodes Incorporated
Investor Relations Diodes Incorporated (DIOD) Plano, TX, USA May 9, 2023 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
Management Representative Dr. Keh-Shew Lu Chairman, President 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 Natio
Slide 4: Company Representative
Company Representative Experience: Head of Corporate Marketing, Diodes Incorporated, Milpitas, CA Head of Corporate Marketing, Pericom, Milpitas, CA Vice President, Marketing, CA Technologies (Broadcom), Redwood City, CA Director, Global Marketing Strategy, EMC, Pleasanton, CA Director, Marketing, Z
Slide 5: 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 6: Company Overview
Company Overview NASDAQ: DIOD; Founded in 1959 Headquartered in Plano, TX; 32 locations globally Manufacturing in US, UK, Germany, China, and Taiwan ISO 9001:2015 Certified / IATF 16949:2016 Certified ISO 14001:2015 Certified Key acquisitions: onsemi SPFAB – June 2022 Lite-On Semiconductor – Nov. 20
Slide 7: Global Organization
Global Organization Wuxi, China Jinan, China Shanghai, China Jhongli, Taiwan Hsinchu, Taiwan Keelung, 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
Slide 8: Our Sustainability Commitment
Our Sustainability Commitment We view sustainability as a competitive advantage and have adopted a sustainability-oriented approach to assess and address related risks that may influence our operational activities, business results, and financial performance. Please refer to Governance and Oversight
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: 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 11: 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 12: 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 13: Example: Industrial, Embedded Applications
Example: Industrial, Embedded Applications Total Solutions Provider Vcore DCDC Controller MOSFET LVDS Switch DDR Port Supply and Power Management I/O I2C Local Bus Clock Inputs Video Port USB 3.0 Port JTAG Ethernet Ports PCIe 2.0/3.0 Ports SATA/SAS Port FPGA ASIC SoC MCU CPU DDR Regulator DC DC Cont
Slide 14: Automotive Applications Driving Growth
Automotive Applications Driving Growth Connected Driving ADAS (Advanced Driver Assistance Systems) Telematics Infotainment Systems Smart cockpit, Wireless charger Comfort, Style, and Safety Lighting Migration to LED and intelligent illumination BLDC motor / fan control Migration from Brushed to Brus
Slide 15: Automotive Opportunity
Automotive Opportunity Automotive Potential Revenue $ / Car Automotive Motor Control $45.50 Connected Driving (Infotainment, Telematics & ADAS) $60.50 Powertrain, Electrification & Body Control Electronics $19.70 Lighting – Moving to LED $14.30 Total $140.00 Normalized to 2013
Slide 16: Automotive Compliant USB Charging
Automotive Compliant USB Charging USB charging is a high growth application with approximately 2 to 8 ports per vehicle Diodes provides a system solution for USB charging including Port Controller, USB Muxes, Signal Switches, ReDrivers, Xtals, Power Management, and Protection. Automotive Compliant*
Slide 17: 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 18: 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 19: 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 20: 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 products for high capacity solid state storage Crystal oscillators for increasing clocking speeds LDOs, DCDC, SBR, and TVS for power management a
Slide 21: Server Platform Solution
Server Platform Solution Almost all of Server vendors are Diodes’ existing customers Diodes’ products are well positioned in this segment Connectivity, Signal Integrity, Timing, Standard Linear, Power Management, Power Switch, Level shifter, Protection or HV MOSFET / SBR devices AC-DC MOSFET / SBR P
Slide 22: 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 23: 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 24: Communications - 5G Applications Expanding
Communications - 5G Applications Expanding Growth Opportunities 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
Slide 25: 5G Macro Cell Platform
5G Macro Cell Platform 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 Analog >$0.60
Slide 26: Complete Platform Solutions: Notebooks
Complete Platform Solutions: Notebooks DCDC Converter CPU PCH MOSFET LED Driver USB 2.0 Switch A/V Codec DDR Regulator LDO Analog Switch TVS USB 3.0 ReDriver Crossbar Switch Vcore DCDC Controller Sleep / Charge Detect Video Switch MCU USB3 / DP Switch LSP Con LCD Panel TVS DP-to-VGA Converter Video
Slide 27: Technology Focus Products
Technology Focus Products 32 Gbps ReDrivers and Switches Automotive Packet Switch for Telematics / ADAS Complete USB Type-C Solution Low jitter timing solution for cloud computing Ultra low power and low noise LDOs for IoT Low Cj TVS for signal integrity Lowest RDS(ON) LDMOS for battery efficiency S
Slide 28: Assembly and Test
Assembly and Test Efficient Manufacturing + Superior Processes China: Shanghai, Chengdu, and Wuxi Taiwan: Jhongli Germany: Neuhaus US: South Portland, Maine China: Shanghai and Wuxi Taiwan: Hsinchu and Keelung UK: Greenock and Oldham Bipolar, BiCMOS, CMOS and BCD process Global footprint with strong
Slide 29: Revenue Profile for First Quarter 2023
Revenue Profile for First Quarter 2023 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region Asia Europe Americas 18% 13% 22% 29% 18% 71% 29% 69% 17% 14%
Slide 30: Income Statement – First Quarter 2023
Income Statement – First Quarter 2023 ($ 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 31: 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 32: 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 33: Summary
Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20%+ operating profit Next Strategic Goal: $1B gross profit Tactics: Increased focus on high-margin automotive, industrial, and Pericom products Investment for technology leadership in target products, fab processes, and
Slide 34: Thank you
1uncoRPORATED Thank you