Application Specific Standard Solutions for Advancing Technologies
Annual Shareholders’ Meeting
May 31 st, 2007
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.
Potential risks and uncertainties include, but are not limited to, such factors as
fluctuations in product demand, the introduction of new products, the
Company's ability to maintain customer and vendor relationships, technological
advancements, impact of competitive products and pricing, growth in targeted
markets, risks of foreign operations, and other information detailed from time to
time in the Company's filings with the United States Securities and Exchange
Commission.
Safe Harbor Statement
1
Expanded Management Team
Name & Title Background
Mark King
Sr. VP, Sales & Marketing
16 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
Promoted from Global Product Manager, May 2006
25 yrs experience in analog, mixed signal and SOC product design and development
Francis Tang
VP, Product 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
16 yrs with Diodes & 7 yrs at Lite-On
5 yrs with Texas Instruments
Production, planning & purchasing background
Steven Ho
VP, Asia Sales
Carl Wertz
CFO
14 yrs with Diodes
21 yrs of relevant industry experience
CPA
Dr. Keh-Shew Lu
President, CEO and Director
6 yrs Diodes Director
27 yrs at Texas Instruments
PhD
Joseph Liu
Sr. VP, Operations
17 yrs with Diodes
19 yrs with Texas Instruments
MBA
2
3
18
www.diodes.com
/ Nasdaq: DIOD
Project Next Step RS v18_Dr. Lu.ppt
Outperforming the Industry
Annual Revenue Growth Rates
Industry
21.6%
59.9%
15.6%
35.6%
18.2%
13.5%
1.3%
(3.3%)
18.1%
8.1%
(10%)
0%
10%
20%
30%
40%
50%
60%
2002 to 2006 Growth
Diodes:
31.2%
Industry:
7.5%
2003
2002
2004
2005
Source: World Semiconductor Trade Statistics
Gartner
2006
Proven Strategy for Growth
Grow our portfolio of standard function, application specific product using
innovative and cost effective packaging technology.
Participate in high-growth end markets with short design cycles
Leverage existing customer base to drive sales of new products
Maintain cost leadership through highly efficient packaging and
manufacturing
Pursue selective strategic acquisitions
4
Focused Platform
DFN family
SOD family
Miniaturized Products
High Power Density Products
Multi-chip Packaging Products (Application-Specific Multi-chip Circuit “ASMCC ”)
PowerDI™123
PowerDI™5
Standard Arrays
Function Specific Arrays
End Equipment Specific Arrays
SMC
PowerDI™5
SOT-23
DFN1006-3
1/5 the size of SOT-23
Load Switch
Consolidates 5 parts into 1
5
Our Product Portfolio
DIODES
Schottky Diodes
SBR® Diodes
Zener Diodes
Switching Diodes
RECTIFIERS
Schottky Rectifiers
SBR® Super Barrier Rectifiers: 40V-150V
SBR® Super Barrier Rectifiers: 200V-300V
Standard Rectifiers
Fast / Super-Fast / Ultra-Fast Recovery
Rectifiers
TRANSISTORS
Small Signal Bipolar Transistors
Medium Power Bipolar Transistors
Darlington Transistors
Pre-biased Transistors
MOSFETs
Small Signal MOSFETs
Medium Power MOSFETs
Low Threshold Voltage,
Vgs(th) MOSFETs
PROTECTION
DEVICES
Zener TVSs
Thyristor Surge Protection
Devices (TSPDs)
Data Line Protection
FUNCTION
SPECIFIC
ARRAYS
Relay Drivers
Discrete - Load Switches
Discrete - Voltage Regulators
POWER
MANAGEMENT ICs
DC-DC Switching Regulators
Converters (Integrated Switch)
Buck
Boost
Buck/Boost/Inverter
Controllers (External Switch)
Buck
Boost
Buck/Boost/Inverter
Linear Voltage Regulators
General Purpose
Quasi-LDOs
High-Efficiency Quasi-LDOs
LDOs
LDO Controllers
Voltage Reference/Shunt Regulators
Voltage Supervisory
USB Power Switch
AMPLIFIERS &
COMPARATORS
Op Amps
Comparators
HALL EFFECT
SENSORS
Unipolar - Switches
Bipolar - Latches
Bipolar - Latches
(Complementary Output)
Omnipolar - Switches
Smart Fan Driver
Motor Driver ICs
6
Broad Customer Base
52% of Diodes’ 2006 Revenues - Direct
48% of Diodes’ 2006 Revenues – through Distributors
Quanta
OEMs
Hon Hai
EMS
Indirect OEMs
Distributors
7
Global Reach
Asia
North America
Europe
Record Market Share in Each Region
8
Deep Manufacturing Expertise
Significant capacity expansion to
approximately 12 billion units in
2006
Flexible and optimized
manufacturing process resulting in
low packaging cost
Innovative in-house packaging
design and development
5” wafer fab
50,000 per month capacity
In-house design and
development
Economies of Scale: Production Units in China (bn)
2 Shanghai-based Manufacturing Facilities
Kansas City Fab
0
2
4
6
8
10
12
1998
1999
2000
2001
2002
2003
2004
2005
2006
5.4 bn
8.2 bn
11.8 bn
9
$115.8
$136.9
$185.7
$214.8
0
25
50
75
100
125
150
175
200
2002
2003
2004
2005
Revenue Growth
Revenues by Year ($mm)
2002 – 2006 (CAGR: 31.2%)
225
$343.3
2006
250
300
325
275
350
$73.6
1Q06
1Q07
$92.0
+25%
10
Superior Earnings and Returns
Net Income ($mm)
EPS
Annualized ROE (%)
$5.8
$10.1
$25.6
$33.3
0
10
15
20
25
30
35
2002
2003
2004
2005
$0.29
$0.47
$1.10
$1.29
0.0
0.4
0.8
1.2
1.6
2.0
2002
2003
2004
2005
10.1%
14.1%
22.8%
14.8%
0%
5%
10%
15%
20%
25%
2002
2003
2004
2005
2006
8.4%
12.4%
20.0%
13.9%
0%
5%
10%
15%
20%
25%
2002
2003
2004
2005
2006
16.4%
17.2%
*ROIC = EBIT / (stockholders’ equity + debt)
*ROE = net income / stockholders’ equity
Annualized ROIC (%)
$48.1
$ 53.4
2006
$1.74
2006
Adjusted NI
Adjusted EPS
$1.89
11
First Quarter 2007 Results
Q1 2006
Q1 2007
%
Change
Q4 2006
Q1 2007
(2) On October 5, 2006, Diodes issued $230M, 2.25% convertible senior notes due 2026.
(1)
(1) Excluding FAS123R stock option expense
12
($mm)
Net Sales
$ 73.6
$ 92.0
25.0
Gross Profit
$ 24.2
$ 29.5
21.9
Operating Profit
$ 10.8
$ 13.9
28.7
Net Income
$ 9.3
$ 13.0
39.7
EPS
$ 0.34
$ 0.47
38.2
Adjusted EPS
$ 0.38
$ 0.50
31.6
Investment Highlights
Focus on Application Specific Standard Products
Deep Manufacturing and
Technical Expertise
Broad Customer Base
Diverse End-Markets
Strong Track Record of
Growth & Profitability
Management Continuity
13
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.
Worldwide Headquarters
15660 Dallas Parkway,
Dallas, Texas 75248
Telephone: 972-385-2810
www.diodes.com
