Diodes Incorporated · NASDAQ:DIOD
Diodes — Diodes Inc /Del/ — Investor Presentation (September 2017)
39 slides from Diodes's investor presentation, Sep 8, 2017
Slide 1: Diodes Incorporated Corporate Direction
Diodes Incorporated Corporate Direction EXHIBIT 99.1
Slide 2: 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* * 3Q guidance midpoint: $280M 4Q analyst estimate: $265M
Slide 3: 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% GPM Goal: $1B Gross Profit by 2025
Slide 4: Business Model 2017 to 2025
Business Model 2017 2025 NR$1Bà 2.5B GP%35%à 40% GPM $350Mà $1B R&D% 5%à 7% SG&A%15%à13% PFO15%à20%
Slide 5: Market Focus: Balanced Portfolio
Market Focus: Balanced Portfolio Automotive Adaptive lighting, body controls and connected driving Industrial Embedded systems and precision controls Consumer IoT: Wearables, home automation, and smart infrastructure Communication Smart phones: advanced protocols and charging Computing Cloud computi
Slide 6: Extensive Portfolio of Automotive Products
Extensive Portfolio of Automotive Products Infotainment & Telematics Body Control Electronics Power Train Seat Control Modules Interior and Exterior Lighting Advanced Driver Assistance Systems
Slide 7: Industrial: Automation and Precision Controls
Industrial: Automation and Precision Controls 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
Slide 8: Consumer IoT: Smart Infrastructure, Wearables
Enterprise Smart Infrastructure Wearables Consumer & Home Asset Tracking Security & Surveillance Retail IoT Driving Power and Connectivity Requirements Ultra low power for battery operated, IoT applications Serial protocols and switching for networked systems Noise immunity for integrated cameras an
Slide 9: Efficiency, Functionality and Control for Smart Phones
Efficiency, Functionality and Control for Smart Phones Focus on signal integrity and higher data rates Proliferation of USB Type-CTM connectivity and power delivery Power regulation and protection for new features Advanced power solutions for quick charge protocols
Slide 10: Cloud Computing Accelerating Enterprise Market
Cloud Computing Accelerating Enterprise Market ReDriver support for 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
Slide 11: Technology Focus
Technology Focus Products 20Gbps ReDrivers and Switches Automotive Packet Switch for Telematics / ADAS Complete USB Type-CTM Signal Switching High speed clocking 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
Slide 12: System Focus Industrial Controls
System Focus Industrial Controls
Slide 13: 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 14: Market Success Focus
Market Success Focus Market Expansion through Duplication of Success
Slide 15: Summary
Summary Vision: Expand shareholder value Mission: Profitability growth to drive 20% PFO Next Strategic Goal: $1B gross profit Strategy: $2.5B revenue at 40% GPM Tactics: Increased focus on Automotive and Industrial markets Investment for technology leadership in target products, fab processes, and a
Slide 16: Thank you
Thank you
Slide 17: Investor Relations Presentation September 2017
Investor Relations Presentation September 2017
Slide 18: 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 are
Slide 19: Management Representative Page
Management Representative Page Dr. Keh-Shew Lu President and CEO Diodes Incorporated Since 2005 Texas Instruments 27 years Experience: Senior Vice President of TI Worldwide Analog and Logic President of Texas Instruments – Asia Education: Master's Degree and Doctorate in Electrical Engineering Texas
Slide 20: About Diodes Incorporated
Page A leading global manufacturer and supplier of high-quality application specific, standard products within the broad discrete, logic and analog markets, serving the consumer, computing, communications, Industrial and automotive segments. About Diodes Incorporated
Slide 21: Company Overview
Company Overview NASDAQ: DIOD Founded in 1959 Headquartered in Plano, TX; 21 locations globally Manufacturing in UK, Germany, China and Taiwan ISO9001:2008 Certified / TS16949:2009 Certified ISO14001 Certified Key acquisitions: Anachip Corporation, Taiwan Jan. 2006 Advanced Power Devices Nov. 2006 Z
Slide 22: 2016: Record Annual Revenue & Gross Profit
Page 2016: Record Annual Revenue & Gross Profit 2016 Financial Highlights: Revenue increased 11% to $942.2 million; Gross margin improved 120 basis points to 30.5% GAAP net income was $15.9 million, or $0.32 per share; Non-GAAP net income was a $38.4 million, or $0.77 per share Generated significant
Slide 23: Where We Are Today
Where We Are Today Page Surpassed the $500 million revenue mark in 1H17 Positioned to achieve $1 billion annual revenue goal in 2017 Successfully integrated Pericom; capitalizing on cross-selling synergies 8” front-end manufacturing capabilities for discrete products Favorable growth trends in targe
Slide 24: Business Objective Then and Now
Business Objective Then To consistently achieve above-market profitable growth, utilizing our innovative and cost-effective packaging and silicon technology, suited for high-volume, high-growth markets by leveraging process expertise and design excellence to deliver high quality semiconductor produc
Slide 25: Focusing on High-Volume, High-Growth Applications
Focusing on High-Volume, High-Growth Applications Page LED Backlighting LED Drivers Boost Converters Schottky Diodes LCD / OLED Display Bias LCD Bias ICs OLED Bias ICs Schottky Diodes LED Flash Module Camera Flash Drivers ZXMN series MOSFETs Keypad Backlighting LED Drivers Boost Converters Schottky
Slide 26: Diversified End Markets
Page Diversified End Markets 7% Consumer IoT USB Type-C Power Devices Computing Cloud & Data Center USB Type-C Communications Smartphones Quick/Wireless Charging Industrial Motor Drivers Power Devices LED Lighting Automotive Body Control Powertrain Lighting 18% 24% 25% 26% Computing Consumer Industr
Slide 27: Successful Growth in Automotive
Successful Growth in Automotive Auto revenue has doubled over last 3 years Leveraging expertise in European auto market Key growth drivers: Infotainment Body Control Innovation focused on: Motor Drive LED Lighting Connected Driving Developing solutions with top-tier chipset vendors and global OEMs P
Slide 28: Portfolio of 1500+ Automotive-Qualified Products
Portfolio of 1500+ Automotive-Qualified Products Page
Slide 29: 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 30: USB Type-C Connector Opportunity
USB Type-C Connector Opportunity I 2 C I 2 C I 2 C Tx1, Rx1 Tx2, Rx2 USB3.1 GEN - 2 DP1.4 D+,D - D+,D - D+,D - UART D+,D - CC1, CC2 SBU1,SBU2 Vbus Tx - Rx USB T ype - C TM Connector Notebook PC, Tablet, PC, AIO wer S I / O HUB TM DP ReDriver USB2 . S witch USB Type - C Crossbar Switch, Redriver USB3
Slide 31: Package Portfolio: Current and 2018+
Current PowerDI5060-8L PDI3333-8L DFN0808-4 DFN0806-3 DFN3030N-8 (Pre-mold) SOP-8/14/16L-EP MSOP-8/EP TO252-2/3/4/5L SOD123(F)/923 SOD523/323 TO220-5L TO262AA/AB QFN5050-32 DFN0604-3 2018 + ITO220AC-S DFN0806-6 DFN0603-2 TO220-2/3L PowerDI-5 PowerDI-5SP TSOT23-5/6 SOT25/26 SOT223/143 SOIC-14/16L SOP
Slide 32: Advanced Packaging
Page Advanced Packaging Multi-Chip Packaging Miniaturization DDFN0402 the smallest discrete semiconductor package Dual-Flat No-Lead (DFN) DDFN (Encapsulated CSP) Chip-Scale Package (CSP) ZXMS3001 HS IntelliFET: ZXMS3001 Miniaturization and Multi-Chip Packaging
Slide 33: Packaging and Wafer Fab Capacity
Page Shanghai-based packaging with capacity over 34 billion units Chengdu facility has potential capacity 3X of Shanghai Additional facilities in Neuhaus, Germany and Chengdu, China Two fabs in Shanghai (6” and 8”), one discrete fab in Oldham, UK (6”) Bipolar, BiCMOS, CMOS & BCD process Strong engin
Slide 34: Revenue Profile as of 2Q 2017
Revenue Profile as of 2Q 2017 By Channel By Region By End Market Page 9% 79% 12% Asia Pacific Europe North America 68% 32% Distribution OEM / EMS 18% 25% 24% 26% 7% Industrial Consumer Communications Automotive Computing
Slide 35: Second Quarter 2017 Financial Performance
Second Quarter 2017 Financial Performance Page In millions, except per share 2Q16 1Q17 2Q17 YoY Revenue $236.6 $236.3 $264.2 11.7% Gross Profit (GAAP) $74.8 $73.9 $90.1 20.5% Gross Profit Margin % (GAAP) 31.6% 31.3% 34.1% +250bp Net Income (GAAP) $5.8 $1.2 $13.2 Net Income (non-GAAP) $9.8 $7.0 $17.8
Slide 36: Balance Sheet
Balance Sheet Page Dec 31, 2016 Cash $218 $248 $267 Short-term Investments $65 $30 $16 Inventory $203 $193 $208 Current Assets $751 $733 $758 Total Assets $1599 $1531 $1579 Long-term Debt $454 $413 $383 Total Liabilities $756 $708 $712 Total Equity $843 $820 $867 June 30, 2017 In millions Dec 31, 20
Slide 37: Third Quarter 2017 Business Outlook
Page Revenue between $270 million and $290 million, or up 2.2% to 9.8% sequentially GAAP gross margin to be 34.5% +/- 1% Non-GAAP operating expenses to be 22.5% of revenue, +/- 1% Interest expense to be approx $3.0 million, and tax rate to be 30%, +/- 3% Shares used to calculate diluted EPS approx 5
Slide 38: Global Organization - TS16949 Manufacturing
Global Organization - TS16949 Manufacturing Page
Slide 39: Diodes' Strategy: Capitalizing on Operating Leverage
Capitalizing on Operating Leverage to Deliver Profitability Growth Page Diodes’ Strategy
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