Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Q3 2023 Earnings Presentation
17 slides from Diodes's earnings presentation, Nov 13, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results Diodes Incorporated (DIOD) November 8, 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 (analog, discrete, logic, and mixed signal) semiconductor products to the world’s leading companies in the automotive, industrial, comp
Slide 4: Corporate Objectives
$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 5: Targeted Market Segment
Targeted Market Segment 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 protocols, and ch
Slide 6: 3QFY23 Performance
3QFY23 Performance $404.6M -13.4% Q-Q Revenue $155.9M GAAP Gross Profit -20.2% % Q-Q 38.5% - 330 bps Q-Q GAAP Gross Margin $1.13 - 28.9% Q-Q Non-GAAP EPS $52.5M -28.4% Q-Q Non-GAAP Net Income $90.6M EBITDA 22.4% of Revenue $50.1M Cash Flow from Ops $308M/$53M Strong Balance Sheet Cash/Debt 12.4% of
Slide 7: 3QFY23 Highlights
3QFY23 Highlights Total debt ~$53 million Achieved 26% of product revenue in the Industrial market Automotive and Industrial totaled 45% of product revenue, exceeding 2025 target of 40% Automotive revenue remained at record 19% of product revenue $308 million in cash and cash equivalents
Slide 8: Profitability Growth Track Record of Continued Outperformance
Profitability Growth Track record of Continued Outperformance Annual Revenue Gross Profit ($ in millions) ($ in millions) CAGR: 14% (2005 - 2022) CAGR: 15% (2005 - 2022) * Revenue/Gross Profit for 2023 are based on Q1-Q3 results and Q4 guidance provided on November 8, 2023 Q1 + Q2 + Q3 Q4 Q1 + Q2 +
Slide 9: Quarterly Performance
Quarterly Performance Quarterly Gross Profit ($ Millions) Quarterly Revenue ($ Millions)
Slide 10: Revenue Profile for Third Quarter 2023
Revenue Profile for Third Quarter 2023
Slide 11: Income Statement – Third Quarter 2023
Income Statement – Third Quarter 2023 ($ in millions, except per share amounts) 3Q22 2Q23 3Q23 Net sales 521.3 467.2 404.6 Gross profit (GAAP) 217.8 195.4 155.9 Gross profit margin % (GAAP) 41.8% 41.8% 38.5% Net income (GAAP) 86.4 82.0 48.7 Net income (non-GAAP) 92.2 73.3 52.5 Diluted EPS (non-GAAP)
Slide 12: Balance Sheet
Balance Sheet ($ in millions) Dec 31, 2021 Dec 31, 2022 Sep 30, 2023 Cash* 373 348 308 Inventory 349 360 344 Current Assets 1,188 1,162 1,183 Total Assets 2,194 2,288 2,340 Total Debt 301 185 53 Total Liabilities 892 705 581 Total Equity 1,303 1,583 1,759 * Cash, Restricted Cash and Short-term inves
Slide 13: Fourth Quarter 2023 Business Outlook
Revenue to be ~$325 million, +/- 3.0% GAAP gross margin of 35.0%, +/- 1% Non-GAAP operating expenses 26.5% 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 14: 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, analog, an
Slide 15: Thank you
1un CORPORATE D Thank you www.diodes.com
Slide 16: Reconciliation of Net Income to Adjusted Net Income
Reconciliation of Net Income to Adjusted Net Income For the three months ended September 30, 2023 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP net income was approximately $4.7 million, net of tax, non-cash share-based compensation expense. Excluding share-ba
Slide 17: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the three months ended September 30, 2022 (in thousands, except per share data) (unaudited) Note: Included in GAAP and non-GAAP adjusted net income was approximately $8.1 million, net of tax, non-cash share-based compensation expense. Excluding share-based compens