Monolithic Power Systems, Inc. · NASDAQ:MPWR
Monolithic Power Systems — Investor Presentation (August 2020)
44 slides from Monolithic Power Systems's investor presentation, Aug 4, 2020
Slide 1: Michael Hsing – CEO, Bernie Blegen – CFO
Michael Hsing – CEO Bernie Blegen – CFO August 4, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements that involve risks and uncertainties, including our belief in continued expansion of our product lines, advances in our technology, anticipated market opportunities, gross margin targets, net & operating margin targets,
Slide 3: Outstanding Organic Revenue Growth
Outstanding Organic Revenue Growth ($M) MPWR 4.0 Balanced Growth • eCommerce 2019: MPS 7.8% vs. Analog (8.3%) • eMotion • Computing Power $755 Evolution • Battery Mgmt. MPWR 3.0 $628 Street Est' Long Sustainable Growth $582 • Automobiles • Industrial • Server $471 MPWR 2.0 • Communication Multi-Mega
Slide 4: Growth Drivers by End Market
Growth Drivers by End Market Computing Automotive Industrial Infrastructure Consumer Cloud Based Data Center Body Controls Instrumentation 5G and Wireless IOT GPU’s Factory & Bldg Wireless LED Lighting Base Stations Automation Charging Portable Power ADAS Robotics Networking Management Storage Batte
Slide 5: Diverse End Markets
Diverse End Markets 2016-2019 % of Revenue 2010 2016 2019 20Q2 CAGR Automotive 1.9% 8.7% 14.4% 9.5% 38.5% Storage / Computing 10.4% 20.7% 30.1% 34.4% 32.9% Industrial / Other 4.8% 14.3% 15.8% 14.3% 21.3% Consumer 65.1% 39.6% 26.2% 25.6% 2.2% Communications 17.8% 16.7% 13.5% 16.2% 9.4% Total 100% 100
Slide 6: Total Market SAM Expansion
SAM Expansion Market 2015 SAM 2018 SAM Automotive $6B $7B Motion Control $2B $3B ACDC $1B $2B Modules $1B $2B Cloud Computing (Server / Storage) $800M $1B Networking / Telecom $600M $1B Battery Management $600M $1B Total Market SAM $12B $17B 6
Slide 7: Operating Leverage and Margin Expansion
Operating Leverage and Margin Expansion Revenue Op Income% Non-GAAP EPS 122% Increase 38% Improvement 171% Increase $700 35.0% 4.50 $628M $3.88 29.5% 4.00 $600 30.0% 3.50 $500 25.0% 21.5% 3.00 $400 20.0% 2.50 $283M $300 15.0% 2.00 $1.43 1.50 $200 10.0% 1.00 $100 5.0% 0.50 $0 0.0% 0.00 FY14 FY19 FY14
Slide 8: Why is MPS Winning?
Why is MPS Winning? MES
Slide 9: Monolithic Single Chip Solution up to 1000V
Monolithic Single Chip Solution up to 1000V • Fabless proprietary process technology • Using most advanced fab equipment for analog power 80A 6th Generation BCD6 • Highest level of analog/ 60A power integration with digital and memory • 55nm, 12” wafer Output Current 40A 20A BCD5H 10A BCD5SOI Server
Slide 10: Automotive
Automotive MES
Slide 11: Great Revenue Diversification
Great Revenue Diversification 16% Automotive revenue shared amongst North America, Revenue Mix by Customer Europe, China, Japan, South Korea 14% 12% 10% 8% CH KO 6% EU JP 4% SG US 2% 50% of automotive revenue comes from ‘long tail’ customers 110%
Slide 12: MPS Ramping At Half of Top Tier 1s
MPS Ramping At Half of Top 50 Tier 1s …and engaged with most of the rest Tier 1 Automotive Suppliers OEMs 12
Slide 13: Our Target Automotive Applications
Our Target Automotive Applications Our Target Automotive Applications Digital Cockpit Lighting Body Electronics Battery ADAS Infotainment, Matrix Headlamp, HVAC, Seat, Lift Management Radar, Camera, Cluster, HUD, USB Dynamic Lighting, Gate, Auto Door 48V, HEV, EV Lidar, Self-Driving Charging Interio
Slide 14: How MPS Wins in AC/DC
How MPS Wins in AC/DC MES
Slide 15: Wide Applications that Adopt MPS AC/DC Product Solutions
Wide Applications that Adopt MPS AC/DC Product Solutions ACDC $2B market opportunity Gaming Consoles Quick Chargers and USB3 Smart TVs Industrial Server Power Appliances LED Street Lighting PC Power 15
Slide 16: High Efficiency, Compact and Ease of Use Solution
High Efficiency, Compact and Ease of Use Solution Software Reconfigurable High Integration + Output AC~ + High Density MPS offers graphic user VSS VG VD SLEW AC~ + + interface for easy digital power Vo HVC MP6908 design with high performance + VDD VSS VSS Drv CS SRD Drv VDD HV 5kVrms Insulation FB S
Slide 17: Battery Management
Battery Management MES
Slide 18: MPS Battery Management Applications
MPS Battery Management Applications Battery 2-6 Cell non- Portable Wearable Connected Mobile Management USB Power Devices Devices Computing Systems Applications (BMS) + - 48V Battery Pack Battery Management System (BMS) IC Increasing Value 18
Slide 19: MPS Battery Management Advantages
MPS Battery Management Advantages Competitor Solution Main PCB Battery Pack MPS Solution Main PCB Battery Pack Charger IC Battery Pack Protection IC Battery Over-voltage Interface Charger Management Protection (OVP) Fuel Gauge IC IC System (BMS) IC IC USB Detection IC Cell Balancing IC • MPS solutio
Slide 20: Why MPS Battery Management Will Win
Why MPS Battery Management Will Win • Increasing product offering diversity driving SAM expansion • Growth strategy focused on high level of integration of charger, BMS, USB, and protection functions • Fully monolithic chargers for high-power USB Power Delivery applications • R & D investment on pre
Slide 21: e.Motion: A Market in Motion
e.MotionTM A Market in Motion
Slide 22: e.Motion: Our Solution for Integrated Motion Control
e.Motion TM Our Solution for Integrated Motion Control One-stop Solution for Advanced Drive Tasks POSITION SENSING MOTOR DRIVERS Angle Feedback Energizing the Windings Magnetic Efficiency Small & Robust Size 22
Slide 23: Integrated Motion Control – e.Motion
Integrated Motion Control – e.MotionTM Standard Solution e.Motion TM solution e.Motion BLDC motor Encoder Hall BLDC motor Signal Processing & Position sensing Combined into Drive Circuit Signal processing Motor driver single e.Motion chipTM Customer Benefits Replace bulky optical encoders Lower powe
Slide 24: Leveraging MPS' strength in power semiconductors
Controlled Motion Leveraging MPS’ strength in power semiconductors Technology Packaging Testing Support Customer benefits Size Efficiency Thermal Cost Stepper Brushed DC Brushless DC 24
Slide 25: Huge and Diverse Market
Huge and Diverse Market Consumer Industrial Automotive Pure Sensing Controlled Motion 25
Slide 26: How MPS Wins with Field Programmable Modules and e-Commerce
How MPS Wins with Field Programmable Modules and e-Commerce
Slide 27: Leveraging 2000+ Products
Leveraging 2000+ Products AC/DC Power Conversion DC/DC Power Conversion Battery Management Class-D Audio • High-Voltage Buck Regulator • Step-Up (Boost) • Li-Ion Single and Multi-Cell • Analog Input Class-D Amplifiers • High-Voltage LDO • Step-Down (Buck) • USB Complaint Chargers • PWM Input Power S
Slide 28: MPS Reconfigurable Standard Products
MPS Reconfigurable Standard Products DC-DC AC-DC Motion Control LED Lighting Audio Amp Sensors 28
Slide 29: Engineer to Engineer (E2e) - eCommerce
Engineer to Engineer (E2e) - eCommerce MPS AI Algorithm eCommerce Website Interactive Web Based Design User input Performance Verification BCD 5 Technology • Digital • Memory • Power • Analog Delivered in Days Custom Parts Auto Programming Order 29
Slide 30: Product Roadmap
Product Roadmap LED Lighting Position g Sensors Audio Amps
Slide 31: Reaching Customers at Scale
Reaching Customers at Scale Website Customer Acquisition Paid Search Direct Referral Social Search Engines (SEO) Email Search Content Browse Products 31
Slide 32: Computing Power Evolution
Computing Power Evolution MES
Slide 33: It All Started with Two Innovations
It All Started with Two Innovations • MPS Invented Intelli-phase in 2010 World’s first monolithic power stage with integrated Accu-sense. • MPS Invented QSMOD in 2012 Quantum State Modulation- Modulation based on finest digital steps to determine the real-time output voltage. • MPS First Server Core
Slide 34: Great Technology Wins Its Own Way
Great Technology Wins Its Own Way 34
Slide 35: Common Footprint, Uncommon Performance
Common Footprint, Uncommon Performance • Discrete Die DrMOS • Monolithic Intelli-Phase • Common Footprint Allows Access to Today’s Markets • Monolithic Die Provides Superb Switching Performance and Intelligence 35
Slide 36: Why MPS is Winning?
Why MPS is Winning? Size & Frequency Solution 1400 3.5 Frequency Size (MHz) 1200 3 CMP 1000 2.5 MPS 800 2 600 1.5 CMP 400 1 200 0.5 0 0 2017 2018 2019 2020 While Others Hitting Size and Frequency Boundaries, MPS Monolithic Solution Takes Off 36
Slide 37: Ready for the 48V Power Architecture for Data Centers
Ready for the 48V Power Architecture for Data Centers 43-60V Digital 4.3-6V 1-1.8V Multi-Mega Controlled Hertz Multi- Resonant Phase VR (DCX) 2-Stage Structure • Simplicity – well-understood architecture • Scalability – can address different power levels • Transient performance – independent second-
Slide 38: The Evolving of the Computing Eco-System
The Evolving of the Computing Eco-System Datacenter, Cloud 5G Network, Coming Soon 5G Enabled Cloud 2.0 Happening Now Hyper Converged -Storage -Computing -Networking MPS High Speed, High Density Power Solutions- Well Suited for Computing Infrastructure Now and Beyond 38
Slide 39: Well Positioned with Excellent Financial Strength
Well Positioned with Excellent Financial Strength
Slide 40: Consistent Revenue Growth & Shareholders' Return
Consistent Revenue Growth & Shareholders’ Return Stock Price $280 * $755m 2019: MPS 7.8% vs. Analog (8.3%) $260 $240 $220 $200 $180 $628m $582m Revenue ($m) $160 MPWR Stock Price $140 SOX Index $471m $120 $100 $389m $80 $333m $60 $283m $238m $40 $214m $197m $20 $0 | 2011 | 2012 | 2013 | 2014 | 2015
Slide 41: Strategic Goals
Strategic Goals Full digital solutions – Synthetic Analog Integrated, software based, control across all product lines Advanced power analog processes Continued Compute and Automotive gains Future Network Infrastructure and Industrial wins
Slide 42: Capital Allocation – 49% of Cash Returned to Shareholders
Capital Allocation – 49% of Cash Returned to Shareholders $1,100 $1,000 49% Cash $900 returned to $800 shareholders through stock $700 buybacks and dividends $600 $500 $400 $300 $200 $100 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Actual Cash Cash adjusted for
Slide 43: Closing Summary
Closing Summary • Disruptive new products allowing unprecedented levels of integration, efficiency and ease of use. • Pressing ahead with process technology lead • Expanding in high growth, end markets of Automotive, Industrial, Cloud Computing and Networking • Significant operating leverage while c
Slide 44: Q&A
Q&A 44
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