Collins Stewart Growth Conference July 8, 2008 New York City. Application Specific Standard Solutions for Advancing Technologies

Transcription

1 Collins Stewart Growth Conference July 8, 2008 New York City Application Specific Standard Solutions for Advancing Technologies

2 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. Potential risks and uncertainties include, but are not limited to, such factors as the Company s business strategy, the introduction and market reception to new product announcements, fluctuations in product demand and supply, prospects for the global economy; continue introduction of new products, Company s ability to maintain customer and vendor relationships, technological advancements, impact of competitive products and pricing, growth in targeted markets, successful integration of acquired companies and/or assets, the Company s ability to successfully make additional acquisitions, risks of domestic and foreign operations, uncertainties in the Auction Rate Securities market; currency exchange rates; availability of tax credits, and other information detailed from time to time in the Company s filings with the United States Securities and Exchange Commission. 1

3 Management Representative Carl Wertz CFO 15 years with Diodes CPA 22 years of relevant industry experience 2

4 About Diodes A leading manufacturer and supplier of high-quality application specific standard products within the broad discrete and analog semiconductor markets, serving the computer, consumer electronics, communications, industrial and automotive industries. Business Objective To consistently achieve profitable growth utilizing our innovative and costeffective semiconductor packaging technology suited for high growth electronics markets by leveraging deep design and manufacturing expertise to deliver market-leading semiconductor products. Fast Facts Nasdaq listed in year ,270 employees worldwide U.S. headquarters; 21 locations globally 5-year Revenue Growth 28.2% CAGR ( ) 5-year EPS (adj) Growth 50.6% CAGR 5-year Equity Growth 45.0% CAGR 3

5 Full Year 2007 Financial Results Revenues up 16.9% YOY to a record $401.2 million Gross profit up 14.5% YOY to $130.4 million Net income up 23.9% YOY to a record $59.7 million Adjusted* net income up 21.5% YOY to a record $64.9 million EPS $1.41 (split adjusted) up 21.6% Adjusted* EPS $1.50 (split adjusted) * Excluding FAS123R stock option expense and restructuring cost 4

6 Management Representative Dr. Keh-Shew Lu President and CEO President and CEO 2005 Director-Diodes Inc. 7 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 Texas Instruments Asia Education: Master's degree and doctorate in electrical engineering Texas Tech University Bachelor's degree in engineering National Cheng Kung University - Taiwan 5

7 Experienced Management Team Dr. Keh-Shew Lu President, CEO and Director 7 yrs Board of Directors 27 yrs at Texas Instruments PhD Carl Wertz CFO 15 yrs with Diodes 22 yrs of relevant industry experience CPA Joseph Liu Sr. VP, Operations 18 yrs with Diodes 19 yrs with Texas Instruments MBA Mark King Sr. VP, Sales & Marketing 17 yrs with Diodes & 7 yrs at Lite-On Sales, marketing & finance background Richard White Sr. VP, Finance 25 yrs with Texas Instruments Controller for TI s global MOS memory operation Controller for TI s Asia Pacific Division CPA, MBA Steven Ho Asia President, VP Asia Sales & Marketing 16 yrs with Diodes & 7 yrs at Lite-On 5 yrs with Texas Instruments Production & Planning background Francis Tang VP, Product Development Promoted from Global Product Mgr 25 yrs experience in analog, mixed signal and SOC product design and development Ed Tang VP, Corporate Administration 25 yrs at Texas Instruments VP for TI s global MOS memory operation VP and GM for TI s Asia memory operations Julie Holland VP, Worldwide Analog Products Promoted from Director of Worldwide Analog Products 23 yrs at Texas Instruments Director & GM of TI s Connectivity Solutions business unit T.J. Lee VP, Packaging Operations 32 yrs at Texas Instruments Site Manager for TI s Assembly and Test Operations Colin Green European President, VP European Sales & Marketing Appointed upon Zetex acquisition 11 yrs at Zetex plc 10 yrs at National Semiconductor 6

8 Strong Financial Performance First Quarter 2008 Revenues up 3.9% YOY to $95.6 million Gross profit up 8.1% YOY to $31.9 million Net income up 9.2% YOY to $14.2 million EPS $ 0.33 Adjusted* EPS $ 0.35 Second Quarter Guidance Original (1) Updated (2) Revenue Gross profit $ M 4-9% increase $ M 18-21% increase * Excluding FAS123R stock option expense (1) Excludes Zetex (2) Includes $11-13M of Zetex revenue & associated gross profit 7

9 Revenues by Year ($m) Revenue Growth $450 $400 $350 $300 $250 $200 $150 $100 $50 $ (CAGR: 28.2%) $136.9 $185.7 $214.8 $343.3 $401.2 $ $ H08 2Q08 Guidance 1Q08 8

10 60% Outperforming the Industry Annual Revenue Growth Rates 59.9% 50% 40% 35.6% 2003 to 2007 Growth Diodes: 28.2% Industry: 6.5% 30% 20% 18.2% 18.1% 15.6% 13.5% 16.9% Industry (SAM) 10% 8.1% 4.3% 0% (10%) (3.3%) Source: World Semiconductor Trade Statistics SAM = Serviceable Area Market - weighted 9

11 Significant Market Opportunity 2007 Total Semiconductor Market ($256 bn) Opto/Sensors Logic Discrete Diodes SAM: $5 bn - $6 bn $17 bn $21 bn $124 bn Diodes SAM $10 bn - $11 bn $36 bn $58 bn Analog Memory Source: WSTS, December 2007 Semiconductor Market Growth 2005 to 2010E CAGR: 7.1% 10

12 Market Dynamics Project Next Step RS v18_dr. Lu.ppt 11 Miniaturization Mobility Opportunity for IP Protection Power Efficiency Low Cost Ease of Use

13 Diodes Growth Strategy Expand portfolio of standard function, application specific products Differentiate business with innovative and cost effective process and packaging technologies Expand market share in high-growth end-markets with short design cycles Leverage existing customer base to drive product sales Introduce new products to drive future business Maintain cost leadership through highly efficient packaging and manufacturing Pursue selective strategic acquisitions 12

14 Increase in Depth and Breadth of Products Discrete Diodes Rectifiers Bipolar Transistors Schottky Diodes Zener Diodes Switching Diodes Varactor Diodes Schottky Rectifiers Super Barrier Rectifiers Standard Rectifiers Fast Recovery Rectifiers Bridge Rectifiers Small Signal Pre-biased Transistors Medium Power High Power Darlington Transistors Gate Driver Transistor Low Saturation H-Bridge MOSFETs Protection Devices Function Specific Arrays Small Signal MOSFET Power MOSFET Protected MOSFET High Voltage MOSFET Diodes Product Portfolio Overlapping Products Zetex Product Portfolio Zener TVSs Thyristor Surge Protection Devices Data Line Protection Relay Drivers Discrete - Load Switches Discrete - Voltage Regulators MOSFET Gate-Drivers Analog ICs Power Management ICs Amplifiers/Comparators DC-DC Switching Regulators Buck Boost Buck/Boost/Inverter LED Drivers Charge Pump Boost Buck Linear Voltage Regulator Quasi-LDOs General Purpose LDOs Voltage Reference/ Current Monitors Shunt References Micropower References Current Monitors Op Amps Comparators Special Functions USB Power Switch Load Switch Voltage Supervisory Single Cell 555 timer Siren Driver Current Mirror ASSP Communication DBS Industrial Motor Control Lighting Consumer Audio Video Sensors Hall -Unipolar Switches -Bipolar Latches -Omnipolar Switches -Smart Fan Driver Temperature Magnetic 13

15 End Market Diversification + Communications 15% Automotive Industrial 2% 10% Computing 37% Automotive 10% Computing 8% Consumer 12% Industrial 19% Automotive 4% Computing 30% Consumer 36% Industrial Communications 17% 47% Communications 23% Consumer 30% 2007 Revenue $401mm 2007 Revenue $127mm Combined 2007 Revenue $528mm (1) Zetex financials converted using an exchange rate of 1.962USD:1.000GBP, exchange rate reported in Zetex press release on 2/21/

16 Improved Geographic Mix + Europe 4% Europe North America 38% 20% APAC 49% North America 19% Europe 12% APAC 76% North America 13% APAC 69% 2007 Revenue $401mm 2007 Revenue $127mm Combined 2007 Revenue $528mm (1) Zetex financials converted using an exchange rate of 1.962USD:1.000GBP, exchange rate reported in Zetex press release on 2/21/

17 Broad and Deep Customer Relationships Quanta Hon Hai 16

18 Efficient Manufacturing + Superior Processes Diodes Manufacturing High volume 5 wafer foundry in Kansas City, MO for discretes Shanghai-based packaging with a capacity in excess of 15 billion units Flexible and optimized manufacturing process resulting in low packaging cost Zetex Manufacturing 4 and 6 wafer foundry in Oldham, UK Bipolar process technology for discrete and IC Packaging facilities in Neuhaus, Germany and JV in China Strong engineering capabilities Economies of Scale: Production Units in Shanghai (bn) bn 11.8 bn 8.2 bn 5.4 bn 3.4 bn

19 A Winning Combination Over 45 Years of Semiconductor Expertise 2007 Revenue $401M 2007 Gross Margin 32.5% EBITDA (2) $84.9M Operating Margin 15.1% Employees 2, Gross Margin 32.4% = EBITDA (2) $ 30M (1) 2007 Revenue $127M Operating Margin 11.1% Employees 658 SYNERGIES 2007 Revenue $528M 2007 Gross Margin 32.5% EBITDA (2) $114.9M Operating Margin 14.1% Employees 3,270 High volume discrete and standard analog products Cost efficient packaging capabilities Strong presence in APAC and US Broad product and customer base Consumer, computing and communications focus Discrete, power management, and ASSP products Proprietary technologies Solid application and design team Strong presence in Europe Industrial, communications and automotive focus Revenue synergies through expanded product offering and cross selling Manufacturing synergies Operating synergies Market segment diversification Expanded customer base and distribution channels Increase in geographical footprint (1) Zetex financials converted using an exchange rate of 1.962USD:1.000GBP, exchange rate reported in Zetex press release dated 2/21/2008 (2) EBITDA as reported in Diodes press release dated 2/13/2008 and Zetex 2007 annual report 18

20 First Quarter 2008 Results ($mm) Q Q % Change Net Sales $ 92.0 $ Gross Profit $ 29.5 $ Operating Profit $ 13.9 $ Net Income $ 13.0 $ EPS $ 0.31 $ (1) Adjusted EPS $ 0.33 $ Cash and S-T Investm ent (2) Dec 31, 2007 Mar 31, 2008 $ $ 61.2 Inventory $ 53.0 $ 62.6 L-T Investment(3) -- $ Total Assets $ $ Debt $ $ Total Liabilities $ $ (1) Excluding FAS123R stock option expense. (2) On October 5, 2006, Diodes issued $230M, 2.25% convertible senior notes due (3) Reclassed investments in available-for-sale securities to long term investment. Stockholders Equity $ $

21 Industry and Media Recognition 2008 Forbes List of 25 Fastest Growing Tech Companies Ranking 22 nd 2007 Forbes 2007 List of 200 Best Small Companies Ranking 16 th, up from 37 th 2 nd in EPS growth BusinessWeek s List of 100 Hot Growth Companies Ranking 49 th Business 2.0 Magazine s List of 100 Fastest Growing Technology Companies - Ranking 39 th 2006 Forbes 2006 List of 200 Best Small Companies Ranking 37 th Standard and Poor s Top 300 Growth Companies - Ranking 51 st Fortune s 100 Fastest-Growing Companies Ranking 82 nd Business 2.0 Magazine s Fastest-Growing Technology Companies Ranking 26 th, up from 45 th BusinessWeek s List of 100 Best Small Companies Ranking 52 nd Electronics Business Magazine s List of 30 Best Small Electronics Companies Ranking 29 th S&P SmallCap 600 Index / NASDAQ Global Select / Russell 3000 Index 20

22 Investment Highlights Focus on Application Specific Standard Discrete and Analog Products Deep Manufacturing and Technical Expertise Diverse, High-Growth End Markets Broad Customer Base Management Continuity Strong Track Record of Growth & Profitability 21

23 Thank You Worldwide Headquarters Dallas Parkway, Suite 850 Dallas, Texas Telephone: 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.