Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q4 2022 Earnings Presentation
34 slides from Diodes's earnings presentation, Feb 6, 2023
Slide 1: Investor Relations Diodes Incorporated
Investor Relations Diodes Incorporated (DIOD) Plano, TX, USA February 6, 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: 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: Doctorate and Master's Degree in Electr
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: Vision: Create Shareholder Value
Vision: Create Shareholder Value 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
Slide 11: Shifting Gears to Profitability Growth
Shifting Gears to Profitability Growth Mission: Profitability growth to expand shareholder value Strategy: Grow Revenue to $2.5B at 40% Gross Margin Goal: $1B Gross Profit by 2025
Slide 12: Targeted Market Segment Distribution
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 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 Comfort, Style, and Safety Lighting Migration to LED and intelligent illumination BLDC motor control Migration from Brushed to Brushless DC Motors Electrification/Powert
Slide 15: Automotive Opportunity
Automotive Opportunity Automotive Potential Revenue $ / Car Automotive Motor Control $45.50 Connected Driving (Infotainment, Telematics & ADAS) $60.26 Powertrain, Electrification & Body Control Electronics $19.70 Lighting – Moving to LED $14.29 Total $139.75 Car & LV Volumes – IHS Markit 2020 Diodes
Slide 16: Automotive Compliant USB Charging
Automotive Compliant USB Charging – 4 ports per Vehicle 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 & Redrivers, Xtals, Power Management, and Protection. Automotive Compl
Slide 17: Industrial Content Expanding
Industrial Content Expanding Increasing IC content in embedded systems Switching and signal path for networked systems and automation Signal conditioning and timing for precision controls Motor controls, sensors, and power management for smart meters 2013 - 2022 CAGR: 15% Industrial Revenue Growth N
Slide 18: 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 M2M – Dominated by short range technology 73% are short range, mostly Wi-Fi 2017: connections @ 750 million 2023: connections @ 2600 million M2M – By
Slide 19: Cloud Computing Accelerating Enterprise Market
Cloud Computing Accelerating Enterprise Market ReDriver support for PCIe or USB connectivity Wide range of signal protocols: PCIe, SAS, SATA, GbE, USB MUX products for high capacity solid state storage Crystal oscillators for increasing clocking speeds LDOs, SBR, and TVS for power management and pro
Slide 20: 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 Switches, Protection or HV MOSFET / SBR devices AC-DC MOSFET / SBR Power Adapter
Slide 21: 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 22: Sensor IoT Segment: Smart Home
Sensor IoT Segment: Smart Home Smart Home – expected to grow to 1.4Bu by 2023 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 Contr
Slide 23: Communications - 5G Applications Expanding
Communications - 5G Applications Expanding Growth Opportunities Focus Applications: Cloud Computing 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, Tab
Slide 24: Smartphone: Efficiency, Functionality, and Control
Smartphone: Efficiency, Functionality, and Control Driving Smartphone Growth Smart speaker/IoT rising AR / VR Foldable screens 5G Smartwatches Growth Opportunities USB Type-C MUX MOSFET LDO, OVP LDSW, Audio, DCDC, LED/OLED Driver, ACDC Diodes’ Key Products $ / Phone Analog $0.55 Power Management $1.
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 >$0.60
Slide 26: Complete Platform Solutions: Notebooks
Complete Platform Solutions: Notebooks DCDC Converter CPU PCH MOSFET LED Driver USB 2.0 Switch A/V Codec DDR Regulator LDO Analog Switch TVS USB 3.0 ReDriver Crossbar Switch Vcore DCDC Controller Sleep / Charge Detect Video Switch MCU USB3 / DP Switch LSP Con LCD Panel TVS DP-to-VGA Converter Video
Slide 27: Technology Focus Products
Technology Focus Products 32 Gbps ReDrivers and Switches Automotive Packet Switch for Telematics / ADAS Complete USB Type-C Solution Low jitter timing solution for cloud computing Ultra low power and low noise LDOs for IoT Low Cj TVS for signal integrity Lowest RDS(ON) LDMOS for battery efficiency S
Slide 28: Packaging: Efficient Manufacturing + Superior Processes
Packaging Efficient Manufacturing + Superior Processes Shanghai-based packaging with capacity over 34 billion units Chengdu facility has potential capacity 3X of Shanghai Additional facilities in Neuhaus, Germany and Wuxi, China US: South Portland, Maine China: Shanghai and Wuxi Taiwan: Hsinchu and
Slide 29: Revenue Profile for Fourth Quarter 2022
Revenue Profile for Fourth Quarter 2022 By End Market Computing Consumer Industrial Communications Automotive By Channel Distribution Direct By Region Asia Europe Americas 18% 14% 23% 28% 17% 72% 28% 73% 15% 12%
Slide 30: Income Statement – Fourth Quarter 2022
Income Statement – Fourth Quarter 2022 ($ in millions, except per share amounts) 4Q21 3Q22 4Q22 Net sales 480.2 521.3 496.2 Gross profit (GAAP) 190.7 217.8 206.2 Gross profit margin % (GAAP) 39.7% 41.8% 41.6% Net income (GAAP) 65.5 86.4 92.1 Net income (non-GAAP) 73.3 92.2 79.6 Diluted EPS (non-GAAP
Slide 31: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2020 Dec 31, 2021 Dec 31, 2022 Cash 327 373 348 Inventory 307 349 360 Current Assets 1,024 1,188 1,162 Total Assets 1,980 2,194 2,288 Total Debt 451 301 185 Total Liabilities 963 892 705 Total Equity 1,016 1,303 1,583
Slide 32: First Quarter 2023 Business Outlook
Revenue to be ~$467 million, +/- 3.0% GAAP gross margin of 41.0%, +/- 1% on a consolidated basis Non-GAAP operating expenses 22.2% of revenue, +/- 1%, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets Net Interest expense of ~$2.5 million Income tax
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