Add AOSL Investor Presenta0on. B. Riley FBR Conference May 23, 2018

Transcription

1 Add AOSL Investor Presenta0on B. Riley FBR Conference May 23,

2 Safe Harbor Statement This presenta/on contains forward-looking statements that are based on current expecta/ons, es/mates, forecasts and projec/ons of future performance based on management's judgment, beliefs, current trends, and an/cipated product performance. These forward looking statements include, without limita/on, statements rela/ng to projected amount of revenues, gross margin, opera/ng income, statements regarding market segments, diversifica/on of products and new customers; the expected trend on revenue and sales for each segment of our serviceable market; the progress of construc/on of manufacturing facility in our joint venture with Chongqing funds; our ability and strategy to develop new products, expand our sales, revenue and profitability; expecta/on with respect to our license agreement with STMicroelectronics; our ability to manage supply constraints and the expecta/on with respect to capacity limita/on; the execu/on of our business plan; and other informa/on regarding the future development of our business. Forward-looking statements involve risks and uncertain/es that may cause actual results to differ materially from those contained in this presenta/on. Addi/onal informa/on concerning these and other risk factors is contained in the Risk Factors sec/ons of our most recently filed Forms 10-K and 10-Q. AOS undertakes no obliga/on and does not intend to update these forward-looking statements to reflect events or circumstances occurring aper this presenta/on. Non-GAAP Results Non-GAAP results referenced in this presenta/on contain non-gaap financial measures because the financial community uses non-gaap results in its analysis and comparison of historical results and projec/ons of the Company's future opera/ng results. These non- GAAP results exclude share-based compensa/on expense, Chongqing pre-produc/on expenses and certain other expenses and benefits. Management uses these non- GAAP measures to manage and assess the profitability of the business. These non-gaap results are also consistent with another way management internally analyzes the company s results and may be useful. AOS Confiden/al 2

3 AOSL Story: Next Phase of Growth q Core business: healthy growth Driven by record high design ac/vi/es Supported by internal capacity expansion q New growth driver: digital power controller Ini/al 400M SAM expansion into server market To become total power solu/on provider q Long-term supply: Chongqing JV 12 fab expected to ramp star/ng in CY19 Phase I to support addi/onal 150M annual revenue Dollars in millions. Source: Gartner. AOS Confiden/al 3

4 Reigni0ng Growth Revenues in Million * FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 Q1~Q3 Unaudited * Mid-point of revenue guidance range for the June 2018 quarter AOS Confiden/al 4

5 Quarterly Revenue & GAAP Gross Margin 120M 100M Revenue Gross Margin % 27.0% 26.3% 25.6% 22.5% 23.3% 24.3% 21.3% 26.4% 80M 16.6% 17.6% 18.5% 18.8% 19.7% 60M 40M 77M 81M 81M 80M 83M 91M 97M 95M 93M 98M 105M 104M 103M 20% 20M 0M Mar 15 Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16 Dec 16 Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 10% AOS Confiden/al 5

6 Healthy Growth Momentum Revenue (m) Non-GAAP Gross Margin (%) * Non-GAAP EPS ()** +10% +9.5% bps Mar Q 2017 Mar Q 2018 Mar Q 2017 Mar Q 2018 Mar Q 2017 Mar Q 2018 * Non-GAAP gross margin excludes share-based compensa/on expenses. ** Non-GAAP EPS excludes share-based compensa/on expenses and Chongqing JV pre-produc/on expenses. AOS Confiden/al 6

7 Near-Term Growth Drivers Smartphone Baaery Pack growth Compu0ng share gain in high ASP sockets Home Appliances Revenue growth High-Single Digit Growth Addi0onal 40 mil capacity expansion in FY18 Support >50 mil incremental annual revenue AOS Confiden/al 7

8 Growth Strategy by Segment q Quick charger produc0on ramp q Broaden customer base Power Supply/ Industrial 21% Communica0ons 14% q Alpha DFN produc0on ramp q Further penetra0on into telecom networking q IGBT solu0on for home appliance market q Geographic expansion of TV customers Consumer 21% March Q 2018 Compu0ng 41% q Market share gain q New entry into Advanced Compu0ng applica0ons Chart excludes Others of 3% AOS Confiden/al 8

9 New Growth Drivers: Advanced Compu0ng Advanced Compu0ng >11MU Server Mobile 1.4BU PC 300MU TV 200MU Digital Power Controller Total Power Solu0on AOS Confiden/al 9

10 Acquired IP Enables Advanced Compu0ng License Agreement with STMicroelectronics enables Digital Power Controller Products and 400M New Markets AOSL Highly efficient discrete and PIC Differen/ated packaging capability Strong customer rela/onship STMicro IP Digital power mul/phase controller Op/mal performance and programmability Ease-of-use Advanced PIC Total power solu/on to customers Diversify into new markets and customer base ShiP to higher value products AOS Confiden/al 10

11 JV Helps Address Capacity Constraints Chongqing JV (355mil) AOS (54%) 35 mil cash Exis0ng equipment Certain manufacturing IPs Chongqing (46%) Improvement in capacity and CapEx q Beoer access to diverse customers in China Phase 1 JV supports ~ 150 mil of addi/onal revenue q q 162 mil cash contribu0on Chongqing JV Buildings and Cleanrooms

12 Chongqing JV Key Milestones q Construc/on of JV buildings and cleanrooms completed q Assembly/Test trial produc/on to start in the 2H CY18 q 12 fab trial produc/on toward the end of CY18 JV Agreement Signed Construc/on Commenced Assembly/Test Produc/on 12 Wafer Fab ı AOS Confiden/al

13 Target Model Near/Mid Term Longer Term Revenue High-single digit growth ~600 mil Gross Margin >Mid 20% >30% Opera0ng Expense * ~22% ~20% * Non-GAAP measures exclude share-based compensa/on expenses and CQJV pre-produc/on costs. AOS Confiden/al 13

14 Healthy EBITDAS ( Millions) Net Income EBITDAS M (1) (5) (3) (8) (3) FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Q1~Q3 AOS Confiden/al 14

15 Strategic Capital Alloca0on Plan q AOS-Only: Support organic growth FY18 internal capacity expansion supported by cash flow and modest leverage AOS Capex to taper down from 2H CY2018 Invest in digital power controller product line q AOS cash balance to rebound at the end of CY2018 Support Chongqing JV ramp 30 mil share repurchase program authorized in Sep q Chongqing JV: Progress as planned 63 mil lease financing One-/me 25M cash contribu/on to Chongqing JV Dollars in millions. Source: Gartner. 15

16 Key Balance Sheet Metrics (Millions, except for ra/os) June 2017 Dec 2017 March 2018 Ratios Cash AOS Only Debt / Share Net Cash AOS Only / Share Cash - Chongqing JV Trade Receivable days DSO Inventory days in INV Total Equity BV / Share Dollars in millions. Source: Gartner. 16

17 AOSL Story: Next Phase of Growth q Core business: healthy growth Driven by record high design ac/vi/es Supported by internal capacity expansion q New growth driver: digital power controller Ini/al 400M SAM expansion into server market To become total power solu/on provider q Long-term supply: Chongqing JV 12 fab expected to ramp star/ng in CY19 Phase I to support addi/onal 150M annual revenue Dollars in millions. Source: Gartner. AOS Confiden/al 17

18 Add NASDAQ: AOSL Q&A 18

19 APPENDIX Three months ended March 31, 2018 GAAP gross profit Share-based compensation 27,133 March 31, Non-GAAP gross profit Non-GAAP gross margin as a % of revenue 27, % GAAP net income attributable to AOS Share-based compensation Income tax benefit from tax reform Pre-production costs related to joint venture Non-GAAP net income attributable to AOS Non-GAAP net income attributable to AOS as a % of revenue GAAP diluted net income per share attributable to AOS Income tax benefit from tax reform Pre-production costs related to joint venture 22, ,556 2,460 1,715 1,615 5, % Share-based compensation Non-GAAP diluted net income per share attributable to AOS 1,651 22, , Shares used to compute basic per share 23,795 23,675 Shares used to compute dilute per share 24,755 24,951 19

20 Strategic Customer Rela0onships World Class OEMs / ODMs China South Korea Japan Europe Taiwan United States Key Distributors (a member of) 5/23/18 20 AOS Confiden/al