EX-99.2 3 diod-ex99_2.htm EX-99.2

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Third Quarter 2023 Financial Results Diodes Incorporated (DIOD) November 8, 2023 Exhibit 99.2


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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 the forward-looking statements. Such statements include statements containing forward-looking words such as “expect,” “anticipate,” “aim,” “estimate,” and variations thereof, including without limitation statements, whether direct or implied, regarding expectations of that for the fourth quarter of 2023, we expect revenue to be approximately $325 million plus or minus 3 percent; we expect GAAP gross margin to be 35.0 percent, plus or minus 1 percent; non-GAAP operating expenses, which are GAAP operating expenses adjusted for amortization of acquisition-related intangible assets, are expected to be approximately 26.5 percent of revenue, plus or minus 1 percent; we expect net interest income to be approximately $2.0 million; we expect our income tax rate to be 18 percent, plus or minus 3 percent; shares used to calculate diluted EPS for the fourth quarter are anticipated to be approximately 46.6 million. Potential risks and uncertainties include, but are not limited to, such factors as: the risk that the COVID-19 pandemic may continue and have a material adverse effect on customer demand and staffing of our production, sales and administration facilities; the risk that such expectations may not be met; the risk that the expected benefits of acquisitions may not be realized or that integration of acquired businesses may not continue as rapidly as we anticipate; the risk that the cost, expense, and diversion of management attention associated with the LSC acquisition may be greater than we currently expect; the risk that we may not be able to maintain our current growth strategy or continue to maintain our current performance, costs, and loadings in our manufacturing facilities; the risk that we may not be able to increase our automotive, industrial, or other revenue and market share; risks of domestic and foreign operations, including excessive operating costs, labor shortages, higher tax rates, and our joint venture prospects; the risks of cyclical downturns in the semiconductor industry and of changes in end-market demand or product mix that may affect gross margin or render inventory obsolete; the risk of unfavorable currency exchange rates; the risk that our future outlook or guidance may be incorrect; the risks of global economic weakness or instability in global financial markets; the risks of trade restrictions, tariffs, or embargoes; the risk that the coronavirus outbreak or other similar epidemics may harm our domestic or international business operations to a greater extent than we currently anticipate; the risk of breaches of our information technology systems; and other information, including the “Risk Factors” detailed from time to time in Diodes’ filings with the United States Securities and Exchange Commission. This presentation also contains non-GAAP measures. See the Company’s press release on November 8, 2023 titled, “Diodes Incorporated Reports Third Quarter Fiscal 2023 Financial Results” for detailed information related to the Company’s non-GAAP measures and a reconciliation of GAAP net income to non-GAAP net income.


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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, computing, consumer electronics, and communications markets DIOD Stock Symbol 64 Years in business 31 Consecutive years of profitability 32 Number of locations worldwide ~9000 Number of employees 2.0Bn Annual Revenue 2022 50Bn Number of units shipped in 2022 >28K Number of products (SKU) shipped in 2022 >50 Number of distributors >50K Number of customers 42% of 2022 product revenue from Automotive/Industrial


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$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


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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 charging solutions Computing Cloud computing: server, AI server, storage, data centers ~60% of revenue ~40% of revenue (55% for Q3 2023) (45% for Q3 2023)


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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 Revenue


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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


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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 + Q3 Q4


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Quarterly Performance Quarterly Gross Profit ($ Millions) Quarterly Revenue ($ Millions)


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Revenue Profile for Third Quarter 2023


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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) 2.00 1.59 1.13 Cash flow from operations 132.2 92.6 50.1 EBITDA (non-GAAP) 141.9 133.5 90.6


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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 investments


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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% Shares used to calculate diluted EPS approximately 46.6 million Amortization of acquisitions-related intangible assets of $3.1 million, after tax, for previous acquisitions is not included in these non-GAAP estimates *Guidance as provided on August 8 2023 Fourth Quarter 2023 Business Outlook


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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, and power discrete products Investment for technology leadership in target products, fab processes, and advanced packaging


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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-based compensation expense, both GAAP and non-GAAP diluted earnings per share would have increased by $0.10 per share.


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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 compensation expense, both GAAP and non-GAAP adjusted diluted earnings per share would have increased by $0.18 per share