TECH DRIVEN PRODUCTS: power conversion efficiency. clean energy generation. automation improvement

Transcription

1 TECH DRIVEN PRODUCTS: power conversion efficiency clean energy generation automation improvement 1

2 As with most presentations, the following discussion contains forward-looking statements, and our actual results may differ materially from those discussed here. Additional information concerning factors that could cause such a difference can be found in the Company s Annual Report on Form 10-K, as amended, for the year ended March 31,

3 COMPANY HIGHLIGHTS INNOVATIVE AND GROWING POWER SEMICONDUCTORS - Pioneer in high power MOSFET, IGBT and Bipolar Power Technologies ANALOG, MIXED SIGNAL SPECIALIZED ICs, HVICs, MCUs RF POWER & SYSTEMS REAL CASH profitability, lower operating costs and shareholder equity growth Multi-disciplined technology: MOS, Bipolar, SOI, DCB, IGBTs, ICs; over 350 patents Founded in Silicon Valley (1983), with 10 divisions worldwide and over 1000 employees More than 2500 customers across sectors ranging from telecom, transportation, industrial, medical, consumer, aerospace and renewable energy companies 3

4 CORPORATE ROADMAP 1983 IXYS Founded 1998 IXYS Goes Public 2002 Acquisition of Westcode Semiconductor Ltd. & Clare, Inc IXYS CH GmbH Acquisition of Leadis business lines (LED/LCD) 1989 IXYS Acquired ABB s German Semiconductor Division (IXYS Germany) 2000 Acquisition of DEI (IXYS Colorado) 2003 Acquisition of Microwave Technology, Inc Acquisition of Zilog 4

5 OUR TECHNOLOGY PRODUCT LINE Power Semiconductors (73.2% of total FY11 revenues) Integrated Circuits/ Mixed Signals ICs/MCUs (19.1% of total FY11 revenues) END MARKETS Industrial Medical Telecom Consumer Transportation Renewable Energy Industrial Telecom Consumer Military/Aerospace Transportation IXYS DIVISIONS RF Power & Systems (7.7% of total FY11 revenues) Medical Military/Aerospace Telecom 5

6 ELEMENTS OF POWER CONVERSION High Voltage Raw Electricity Low Voltage Refined Electricity INPUT CONTROL SWITCHING OUTPUT IXYS FULL SPECTRUM OF POWER CONVERSION PRODUCTS Diodes Control ICs IGBTs Schottky & Rectifiers Opto Feedback Power MOSFETs Fast Diodes Thyristors MCU BiMOSFETs Modules Modules Digital Control Thyristors Opto MCU Modules MCU PFC Sync Rectifier 6

7 BUSINESS MODEL Asset Rich: Cash invested internally Product Base Spans Entire Power Spectrum Long Life Cycle of Products (10-20 Years) Maximizes Revenues per R&D Builds lasting customer relationships Use of Non-Leading Edge Wafer Foundries Favorable Cost & Availability Low Cap-Ex Requirements Balanced Sales Strategy 52% of revenue from direct sales; 48% of revenue from distributors Strong Customer Relationships Worldwide Over 2,500 customers, extensive design wins, sole source relationships 7

8 GLOBAL FOOTPRINT IXYS R&D, Manufacturing, Sales & Distribution External Foundries SERVING CUSTOMERS WORLDWIDE Products cover entire power spectrum Focused direct sales force Broad sales representative and distributor relationships 8

9 CUSTOMER BASE 9

10 MARKET DYNAMICS FOR GROWTH Electrical Energy Costs Increase Electricity Demand Grows Faster Than Supply High Demand For Clean, Uninterruptible Power Voltage Gap Between Supply & Demand Demand For Higher Power Density & Efficiency Demand For Mass Transit, HEV & EVs Demand For LED Lighting 10

11 PORTFOLIO: INDUSTRIAL Approximately 50% of IXYS revenues stem from the industrial market Industrial semiconductor market revenues at $22.1 billion in 2008, an 11% increase from 2007* Test/measure semi market sales at $7.2 billion; Process control with $6.3 billion in sales (2008)* Growth in semiconductor market for motor drives: $1 billion to $1.3 billion by 2010* Power Semiconductors Control to energy generators, power line, motor drives, automation & robotics, factory conveyor belts, process control, RF heating, machine tools and welding Integrated Circuits Motor controls, power switch, power supplies, electric utility meters, power management, elevator/escalator controls, factory automation, industrial & lighting controls *Sources: 2009 Semiconductors In Process Control, Databeans, Inc. 2/09; Power Semis Motor Ahead, IMS Research 8/08; 2008 Industrial Semiconductor Revenues Overtake Automotive, Semicast Research 5/09) 11

12 PORTFOLIO: IT & TELECOM IXYS products aimed at the critical last inch of the last mile of the global telecom network; technologies for the communications evolution: VoIP, WiMAX, WiFi Analog ICs market for communication equipment at $10 billion in 2009; $18.4 billion by 2014* WiMAX semi market revenue to reach $480 million in 2008; growing to $1.2 billion in 2012* Power Semiconductors Wireless base stations, Internet host facilities & storage area networks Ruggedized high power MOSFETs for telecom power stations ANALOG ICs Comm. Equipment* Integrated Circuits Mixed signal/advanced high voltage ICs for VoIP gateway and FIOS Optically isolated solid state relays for high voltage switching/ power isolation. In integrated telecom & linear opto-couplers. RF Power & Systems BILLIONS High Linearity Power Amplifiers for WiFi and WiMAX base station apps. *Sources: 2009 Analog ICs, Databeans, Inc. 4/09; Worldwide WiMAX Semiconductor Forecast & Analysis, IDC Research 4/08) 12

13 PORTFOLIO: MEDICAL IXYS: Recognized worldwide with FDA approval for MOS power and Bipolar power in defibrillators Power Semiconductors Control of high voltage power for defibrillators (portable/hospitals) MRI, X-Ray, CATs, Lasers Medical Electronics Market* Integrated Circuits Ultrasound Imaging Diagnostics RF Power & Systems MRI systems Increasing electronic content Better image resolution BILLIONS *Source: 2009 Medical Semiconductors, Databeans, Inc. 5/09 13

14 PORTFOLIO: MILITARY/AEROSPACE August 2009: BAE Systems contract for MW amplifiers with military elec. specifications/ reliability 20 years in Mil-Aero industry Upgrade of military aircraft to "energy efficient/smarter" systems utilizing electronic controls Demand for commercial off-the-shelf power semiconductors and ICs IXYS products: naval power, radar systems, avionic fly-by-wire and military vehicle electronics Integrated Circuits Avionics Controls Electronic Countermeasures Surveillance RF Power & Systems Satellite Radar Ship-to-Shore Communications Munitions Surveillance Space Applications Military & Aerospace Semiconductor Market for 2009* $2.8 billion *Source: 2009 Semiconductors In Military & Aerospace Electronics, Databeans, Inc. 1/09 14

15 PORTFOLIO: TRANSPORTATION IXYS has 20-year history in electrified transit key chip supplier to GM s first electric roadster, EV1 Global market for auto semis to grow from $20 billion in 2007 to just over $30 billion in 2015.* Average semi content per light vehicle to grow steadily from $295 in 2007 to $375 in 2015.* Fastest growing segments of automotive semis: optoelectronics, sensors, logic and processors. Power Semiconductors IXYS chips in hybrid transportation market (electrified locomotives) in Asia, Africa, Europe, Middle East and Americas IXYS products for hybrid car market include: ISOPlus Direct Copper Bond (DCB) IGBT power modules for applications in inverters for traction drive systems and converters for high power voltage conversion Integrated Circuits Automotive applications among the largest markets for power ICs Application-specific devices to account for 75% of worldwide revenue for analog ICs in automotive applications *Sources: Automotive Market For Semiconductors, Semicast Research 4/08 15

16 PORTFOLIO: CONSUMER SEPTEMBER 2009: IXYS purchased LED and display drivers technology, adding state-of-the-art LED and display ICs to the existing organic IXYS product portfolio. Global electronic display technology expected to be worth $98.6 billion in Increase to over $174.2 billion in 2014, for a compound annual growth rate (CAGR) of 12.1%.* LED & Display Driver ICs INCREASED TECH: longer battery life, reg. power quality/reliability THE ANSWER: LED Drivers from IXYS SMALL/PORTABLE DISPLAY Handheld backlight & flash Flexible displays E-ink For digital cameras, PDAs, cell phones MEDIUM DISPLAYS LED drivers for backlighting Flexible displays For GPS, Net PCs & laptops, E-books LARGE DISPLAYS Flat panel displays (LCD): LED backlighting Flexible displays - HV drivers Screens (computer & television) *Source: Displays: Global Markets & Evolving Technologies, BCC Research

17 PORTFOLIO: LIGHTING & DISPLAY LEDs in niche lighting: billboards, architectural, traffic signals and vehicle lighting. Lighting is the second largest end-use of energy in buildings (22% of total U.S. electrical energy). LED provides energy efficient alternative. LED Driver ICs Objective: Best In-Class Efficiency & BOM Cost Value Proposition: Direct LED Temp Control LED Products DC to DC Lighting AC to DC Lighting BILLIONS IXYS LED/LED IC BENEFITS: Cost savings, higher luminance performance, reduced energy consumption, long operating life/durable, reduced heat production, smaller package size, safety improvements *Source: isupply Research 17

18 PORTFOLIO: MICROCONTROLLERS (MCUs) Digital power management is a fast growing application. With the expected rebound in MCU sales in 2010, IXYS anticipates growth in opportunities for refined power control in many applications. By introducing MCUs that enable digital power management and embedded control, IXYS will be able to create comprehensive solutions for its diversified customer base. Market Attributes Increased use of MCUs by automotive applications (e.g. green vehicles) Projected Worldwide Microcontroller Market ( ) (in USD Billions) $14.2B Flash MCUs account for the largest share of MCU revenues (58% in 2006) 16-bit segment expected to experience strong growth surpassing 8 bit unit sales in 2011 $8.1B 32-bit segment expected to experience strong growth due to improvements and cost reductions Source: Databeans : 2008 Microcontroller Market Share (released June 2009), 2009 Microcontrollers (release March 2009), Semico Research: 3/28/2007 Press Release MCU Memory Trends: How Much and What Kind 18

19 PORTFOLIO: MICROCONTROLLERS (MCUs) Complementary business lines and new markets Industrial: Motor control/power control, security systems, robotics & sensors, power metering Consumer: Portable electronics, white goods, LCD/LED backlights Medical: Low power digital controls IT/Telecom: Modems, routers, VoIP, FIOS, data on power line, server farms Power Management: Power management, PFC, power grid management, reduction of standby power ( vampire power ) Transportation/Automotive: Automotive controls, LED lamps, battery power management, HEVs and EVs, electric trains and substations Renewable Energy: Solar inverters, chargers/energy-harvesting, optimization of PV power Lighting/Display: Digital controllers for LED lighting, motion light activation, large LED displays 19

20 PORTFOLIO: SOLAR ENERGY ELECTRIC GRID: Global PV inverter market at $2 billion in 2009; projected $4 billion by 2015.* Electricity supply/demand imbalance lessened with PV. BATTERY POWER: Battery-powered systems that recharge via AC outlets strain U.S. electricity grid. Need for high-efficiency chargers. Power Semis For Solar Inverters Ensuring DC-AC voltage conversion (to elec. grid) is controlled without power surges/outages. High voltages require extensive power semiconductors. IXYS Proprietary Solar Cells & Bits Portable/Consumer Electronics Solar Battery Chargers Battery-Operated Equip. Wireless Sensors/Detection Off-Grid Installation Flame Detection Sunlight/ Light Detection Remote Sensor Installation IXYS Solar Bulbs: Solar panel on a chip -Generates 4V-8V-12V of electricity the only in the industry Solar Battery Chargers *Source: Photovoltaic (Solar) Inverters Worldwide 2008, IMS Research 6/09 20

21 PORTFOLIO: WIND ENERGY U.S. market for wind turbine components & systems worth $60.9 billion in 2013.* Compound Annual Growth Rate between 2008 and 2013 is expected to be 40%.* IXYS: One of the first suppliers of power semis to wind market, dating to early Variable Voltage/Frequency Fixed Voltage/Frequency INVERTER Power Semiconductors IXYS WESPACK SCRs: Phase control devices used in thyristor AC regulators to connect the output of the wind generator to the grid; frequency synchronization between wind and fixed grid frequency IXYS Press Pack IGBTs: Mast head converter/inverter or ground-based synchronization element; unrivalled reliability when compared to IGBT plastic module propositions from other suppliers *Source: Wind Turbines: The U.S. Market, BCC Research 8/08 21

22 ADDITIONAL GROWTH OPPORTUNITIES VoIP & Internet Communications Renewable Energy Clean Tech Products (water/food/gas/waste treatment) Power Management ICs HVICs, MCUs Flat Displays: Flexible, PDP, LCD & Signs RF Power & MMICs: WiMAX Automotive Electric Power, HEV, EVs LED-Based Lighting: Driver ICs 22

23 FINANCIAL UPDATE 23

24 ANNUAL REVENUES In millions $400.0 Fiscal year ended March 31, $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 24

25 REVENUES BY QUARTER In millions $120.0 $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 25

26 REVENUE BY PRODUCT/GEOGRAPHY: Q1 FY12 RF Power & Systems 7.1% ICs 17.8% ICs 26.4% North America 27.8% Europe & ME 37.0% Power Products 75.1% Asia & ROW 35.2% ROW 3.0% 26

27 REVENUE BY BY MARKET: Q4 Q1 FY10 FY12 TRANSPORTATION 4.1% TRANSPORTATION 4% CONSUMER 5% OTHER 11% OTHER 10.0% OTHER 10.0% MEDICAL 10% INDUSTRIAL (incl. renewable energy) 53% COMM INFRASTRUCTURE 17% 27

28 IXYS is a differentiated semiconductor company, focused on power and specialty ICs Cash Generating Operations Asset Rich: Cash, Real Estate & Patents Upside In Traditional & Developing Markets Diverse Applications, Customers & Products Undervalued Stock Price Think High Energy, Think IXYS 28