Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — BMO Marketing - Montreal/Toronto, October 2009
30 slides from Diodes's conference presentation, Oct 8, 2009
Slide 1: BMO Marketing - Montreal/Toronto October 2009
BMO Marketing - Montreal/Toronto OCTOBER 2009
Slide 2: Safe Harbor Statement
Safe Harbor Statement Any statements set forth herein 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 the forward- looking statements. Such forward-looking statements include, but not
Slide 3: Management Representative: Dr. Keh-Shew Lu
Management Representative Page 3 Dr. Keh-Shew Lu President and CEO President and CEO Since 2005 Director - Diodes, Inc. 8 years Texas Instruments 27 years Experience: Senior Vice President of TI Worldwide Analog and Logic Products Senior Vice President of TI Worldwide Memory Business President of Te
Slide 4: Management Representative: Carl Wertz
Management Representative Page 4 Carl Wertz Vice President, Finance and Investor Relations 16 years with Diodes: CFO (1998 to May 2009) Experience: 24 years of manufacturing and distribution experience Accounting career with Deloitte & Touche LLP Licensed certified public accountant
Slide 5: About Diodes
About Diodes Page 5 A leading global manufacturer and supplier of high-quality application specific, standard products within the broad discrete and analog Semiconductor markets, serving the computing, consumer electronics, communications, industrial and automotive markets.
Slide 6: Business Objective
Business Objective To consistently achieve Profitable growth, utilizing our innovative and cost-effective Semiconductor packaging technology, suited for high growth electronics markets by leveraging deep design and manufacturing expertise to deliver market-leading semiconductor products Page 6
Slide 7: Revenue by Year ($m)
Revenue by Year ($m) Revenue Growth Page 7 $182 $432.8 $401.2 $343.3 $214.8 $185.7 $136.9 $0 $100 $200 $300 $400 $500 2003 2004 2005 2006 2007 2008 1H09 2003 - 2008 (CAGR: 25.9%)
Slide 8: Annual Revenue Growth Rates Outperforming the Industry
Annual Revenue Growth Rates Outperforming the Industry Page 8 59.9% 2003 to 2008 Growth Diodes: 25.9% Industry: 5.2% 2004 2005 2006 2007 2008 2003 8.0% 35.6% 15.6% 16.9% 18.2% 18.1% (3.3%) 13.5% 8.1% (0.5%) (1.3%) (10%) 0% 10% 20% 30% 40% 50% 60% Industry (SAM) SAM = Serviceable Area Market - weight
Slide 9: Diodes - Fast Facts
Diodes - Fast Facts 3,122 employees worldwide; and U.S. headquarters and 23 locations globally. 6-year Revenue Growth 25.9% CAGR (2003 - 2008) 6-year EPS (adj) Growth 27.3% CAGR 6-year Equity Growth 39.1% CAGR Page 9
Slide 10: Experienced Management Team
Experienced Management Team Page 10 Richard White CFO 25 yrs with Texas Instruments VP, Finance for TI's global MOS Memory and Controller, TI's Asia Pacific Division Mark King Sr. VP, Sales and Marketing 18 yrs with Diodes and 7 yrs at Lite-On Sales, marketing and finance background Joseph Liu Sr. V
Slide 11: 2008 Total Semiconductor Market: Significant Market Opportunity
2008 Total Semiconductor Market ($249 bn) Significant Market Opportunity Page 11
Slide 12: Diodes Strategy: Profitable Growth
Diodes Strategy: Profitable Growth Page 12
Slide 13: Market Dynamics Drive Opportunity
Market Dynamics Drive Opportunity Page 13
Slide 14: Broad and Diverse Product Offerings
Broad and Diverse Product Offerings Page 14
Slide 15: Portable Computing & Consumer
Portable Computing & Consumer Winning Markets: Diodes' largest market Revitalized by netbooks & smartphones Geography, functionality, growth Winning Strategies: Increased functionality and protection in minimum space Solutions to monitor, control and extend battery life Wide range of MOS, BJT, SBR,
Slide 16: Consumer Entertainment
Consumer Entertainment Winning Markets: Strong relationships with market-leaders Economic and demographic shifts fueling growth New technologies driving expanded content Winning Strategies: Efficiency and power density Application-specific solutions Low-loss, cool-running reliability Cost-effective
Slide 17: Communications and Control
Communications and Control Winning Markets: Focus on VOIP, data communications, power supply, and motion control Diverse market with system longevity Wide-ranging applications and regional breadth Winning Strategies: Power-efficient solutions to meet EnergyStarTM Reduced losses, increased power dens
Slide 18: LED Lighting
LED Lighting Winning Markets: Efficient, economic, environmentally friendly Enhanced ruggedness and reliability Increasingly pervasive use Growth with excellent momentum Winning Strategies: Switches, controllers, and drivers Best-in-class power density Small and elegant MR16 solutions Cost-effective
Slide 19: Collaborative Customer Relationships
Page 19 Quanta Hon Hai Collaborative Customer Relationships
Slide 20: Efficient Manufacturing + Superior Processes
Efficient Manufacturing + Superior Processes Page 20 Shanghai-based packaging with a capacity greater than 17 billion units Flexible and optimized manufacturing process = low packaging cost Additional packaging facilities in Neuhaus, Germany and JV in Chengdu, China Bipolar process technology for di
Slide 21: Geographic Mix
Geographic Mix Page 21 Asia Pacific North America Europe 77 14 9 77% 14% 9%
Slide 22: End Market Diversification - 2Q09
End Market Diversification - 2Q09 Page 22 Digital audio players, set-top boxes, digital cameras, mobile handsets, smartphones, LCD TVs, game consoles, portable GPS Comfort controls, lighting, audio/video players, GPS navigation, satellite radios body electronics Notebooks, netbooks, LCD monitors, PD
Slide 23: Strong Financial Performance Full Year 2008
Strong Financial Performance Full Year 2008 Revenue increased 8% to a record $432.8 million Gross profit increased to a record $132.5 million GAAP net income was $39 million, or $0.91 per share Non-GAAP adjusted net income was $44.8 million, or $1.04 per share Generated $90.4 million of EBITDA Gener
Slide 24: Second Quarter 2009 Financial Performance
Second Quarter 2009 Financial Performance Revenue was $103.9 million, an increase of 33.1% over 1Q revenue of $78.1 million Gross profit was $27.4 million, an increase of 89% over the 1Q of $14.5 million Gross margin was 26.3%, a 770bp increase over the 1Q gross margin of 18.6% Income before taxes a
Slide 25: Third Quarter 2009 Outlook
Third Quarter 2009 Outlook Revenue to increase 13 to 17% sequentially Gross margin to improve to a range between 28 to 32% Operating expenses comparable to 2Q09, as a percentage of revenue Income tax expense to be a relatively nominal amount of 0% to 4% Achieve positive cash flow from operations Cap
Slide 26: Balance Sheet
Balance Sheet Page 26 Dec 31, 2008 (adjusted for APB 14-1) Cash $103.5 $109.5 S-T Investment $ - $319.8 Inventory $ 99.1 $ 79.8 L-T Investment $320.6 $ - Total Assets $893.4 $893.6 Current Liabilities $ 86.9 $290.7 L-T Debt $372.6 $142.3 Total Liabilities $495.1 $501.5 Stockholders' Equity $398.4 $3
Slide 27: UBS/ARS Settlement and Convertible Notes Repurchase
UBS/ARS Settlement October 2008 Replaced margin loan with a "no net cost" loan Borrowing rate equals the interest rate earned on our ARS portfolio Allows the Company to borrow up to 75% of the market value of the Company's ARS portfolio, or $213 million, whichever is greater, and we have fully utili
Slide 28: Industry and Media Recognition
Industry and Media Recognition NASDAQ Global Select / S&P SmallCap 600 Index / Russell 3000 Index 2008 Deloitte List of 50 Fastest Growing Tech Companies in Texas - Ranking 49th Forbes' 2008 List of 200 Best Small Companies - Ranking 30th in sales, 49th in EPS growth Standard and Poor's Global Chall
Slide 29: Investment Highlights
Investment Highlights Page 29
Slide 30: Thank you
Thank you This presentation includes forward-looking statements, which are subject to risks and uncertainties. Actual events and results could differ materially as a result of various factors, including the risk factors described in our reports filed with the Securities and Exchange Commission. This
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