INVESTOR PRESENTATION November 2019 (Nasdaq: AOSL) AOS - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION November 2019 (Nasdaq: AOSL) AOS - - PowerPoint PPT Presentation

INVESTOR PRESENTATION November 2019 (Nasdaq: AOSL) AOS Confidential SAFE HARBOR STATEMENT This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance


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INVESTOR PRESENTATION

November 2019 (Nasdaq: AOSL)

AOS Confidential

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SAFE HARBOR STATEMENT

This presentation contains forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product

  • performance. These forward looking statements include, without limitation, statements relating to projected amount of revenues,

gross margin, operating income, statements regarding market segments, diversification of products and new customers; the expected trend on revenue and sales for each segment of our serviceable market; the progress of construction of manufacturing facility in our joint venture with Chongqing funds; our ability and strategy to develop new products in DMOS. PIC and Digital Power Controller, expand our sales, revenue and profitability; expectation with respect to our license agreement with STMicroelectronics;

  • ur ability to manage supply constraints and the expectation with respect to capacity limitation; the execution of our business

plan; and other information regarding the future development of our business. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in this presentation. Additional information concerning these and other risk factors is contained in the Risk Factors sections of our most recently filed Forms 10-K and 10-Q. AOS undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances

  • ccurring after this presentation.

Non-GAAP Results Non-GAAP results referenced in this presentation contain non-GAAP financial measures because the financial community uses non-GAAP results in its analysis and comparison of historical results and projections of the Company's future operating results. These non- GAAP results exclude share-based compensation expense, Chongqing pre-production 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 Confidential 2

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Consistent execution approaching target model Strong pipeline with major growth drivers Solid foundation enabling accelerated growth Emerging total solution provider in >$40B market ALPHA AND OMEGA SEMICONDUCTOR (NASDAQ: AOSL)

3 AOS Confidential

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SLIDE 4

IMMENSE MARKET FOR POWER

4

Source: IHS 2018 * Calendar year base, Company estimates

$B $10B $20B $30B $40B $50B 2013 2014 2015 2016 2017 2018 2019 2020 2021 2013-2018 Market CAGR 2013-2018 AOS CAGR 2018-2024 AOS CAGR

13~ 15%* 7% 4%

Computing Consumer Communications Industrial Automotive

AOS Confidential

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SLIDE 5

IC Design Power Discretes MOSFETs, IGBT, GaN System Applications Know-How

Total Power Solutions

Advanced Packaging Silicon Technology

RAPID GROWTH WITH TOTAL POWER SOLUTION

5 AOS Confidential

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SLIDE 6

AOS BROAD PORTFOLIO OF SOLUTIONS

TECHNOLOGY INVESTMENTS DRIVING DIVERSIFICATION

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2019 2010 2001 2006 2009 2011 2012 2013 2014 2017 2018

Trench FET Power IC

Shielded Gate Transistor

Super Junction IGBT Power Modules Digital Controller GaN / SiC

AOS Confidential

  • MOSFET: Superjunction, IGBT
  • Power IC, Modules, Digital Power
  • GaN, SiC
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BUILT FOR SCALE

Shanghai A&T Oregon 8” Fab CQ JV: 12” Fab + A&T

AOS Confidential

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ACCELERATING GROWTH

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13~15%*

CAGR

$443M $600M $1B

CY2018 CY2021 CY2024

BUILT INFRASTRUCTURE Computing Power market leader

REACH CRITICAL MASS Mobile Power market leader ECONOMY OF SCALE Server and Industrial market leader with Digital Power and IGBT 2018-2024 AOS Revenue

*Calendar year base, Company estimates

AOS Confidential

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MOBILE POWER AC/DC FOR PD HOME APPLIANCE SERVER / TELECOM COMPUTING

MAJOR GROWTH DRIVERS FOR MULTIPLE YEARS

9 *Calendar year base, Company estimates

PD Total Chipset Solution SAM: $270M New market entrance with Digital Controller SAM: $1B Expand IGBT and Modules SAM: $430M Global OEM customers SAM: $320M PC leader SAM: $400M

AOS Confidential

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EXPANDING BOM

  • Market leader
  • High performance

MOSFET and PIC

  • Expanding BOM

PC: SHARE GAINS, HIGH VALUE MIGRATION

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COMPUTING

SAM: $400M

Graphic Cards PD Adapter Type C CPU Vcore DDR Memory System Power Battery Protection

AOS Confidential

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SLIDE 11

QUICK CHARGER

STRATEGIC ALIGNMENT WITH GLOBAL OEMS

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MOBILE POWER

SAM: $320M

Supply all major smartphone vendors BATTERY PROTECTION

  • AOS 1st to support QC
  • 10W  18W+
  • High performance MV FET
  • Safe operation
  • Longer battery life
  • Robust performance

AOS Confidential

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Refrigerators, Washers / Dryers, Air-con Fans

SIZE COMPARISON

INTELLIGENT MODULES FOR HOME APPLIANCE

12 100 200 300 400 500 600 700 800 900 1000 179% 151% 123% 100%

AOS Comp 1 Comp 2 Comp 3 mm2 HIGHER POWER DENSITY 17 chips inside!

HOME APPLIANCE

SAM: $430M

AOS IPM Solution with IGBT offers:

  • Smaller Footprint
  • Better Efficiency
  • Higher ESD and Reliability

AOS Confidential

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DIGITAL POWER TOTAL SOLUTION SERVER / TELECOM 5G BASE STATION SERVER

>$1 BILLION NEW SAM WITH DIGITAL POWER

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SAM: $1B Processors FPGA Graphics DDR Memory System Voltage Rails Power Stage DrMOS MOSFET

11-21 per system

Digital PWM Controller

2-7 per system

AOS Confidential

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WORLD CLASS OEMS / ODMS KEY DISTRIBUTORS

EVERYONE NEEDS POWER

(a member of)

AOS Confidential 14

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FINANCIALS

AOS Confidential

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Chongqing JV 12-inch Phase 1 target run rate by Q1FY2021 Supported by additional supply contribution from Chongqing JV Driven by strong momentum of mobile business Record revenue quarter and 15th consecutive quarter of Year-over-year revenue growth

Q1FY2020 HIGHLIGHTS

16 AOS Confidential

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$328M $336M $383M $422M $451M 18,6% 19,8% 24,2% 26,9% 28.4%

5,0% 11,0% 17,0% 23,0% 29,0% 35,0%

$0M $50M $100M $150M $200M $250M $300M $350M $400M $450M $500M

FY 15 FY 16 FY 17 FY 18 FY 19

Revenue NonGAAP GM%

SOLID GROWTH IN REVENUE AND GM

17 * NonGAAP gross margin excludes share-based compensation expenses and production ramp-up costs related to joint venture. AOS Confidential

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DISCIPLINED OPERATING EXPENSES

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NonGAAP Core business OPEX *excluding Digital Controller* Digital Controller Expenses % of Core business OPEX excluding Digital Controller*

(in $ millions)

* NonGAAP Operating Expense excludes share-based compensation expenses and pre-production costs related to joint venture. AOS Confidential $18M $20M $21M $21M $21M $20M $22M $22M $21M $20M $23M $0.4M $1.0M $1.4M $2.7M $3.1M $2.3M $2,3M $2,8M 15,0% 16,0% 17,0% 18,0% 19,0% 20,0% 21,0% 22,0%

$0M $5M $10M $15M $20M $25M

Mar 17 Jun 17 Sep 17 Dec 17 Mar 18 Jun 18 Sep 18 Dec 18 Mar 19 Jun 19 Sep 19

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HEALTHY EBITDAS

AOS Confidential 19

($millions)

$0 ($3) $2 $20 $28 $30 $6 $31 $28 $33 $51 $56 $55 [VALUE]

FY14 FY15 FY16 FY17 FY18 FY19 FY20 SepQ

NonGAAP Net Income EBITDAS

* Excludes share-based compensation expenses, production ramp up costs and pre-production costs related to joint venture.

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JV ON TRACK TO ALLEVIATE CAPACITY CONSTRAINTS

  • 12” fab Phase 1 mass production

initiated in Q1 FY2020

  • Reach Phased 1 target run rate by

Q1FY2021

  • Phase 1 supports about $150M

additional AOS revenue

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AOS (51%) $35M cash + Existing equipment + Certain Mfg IP CHONGQING (49%) $186M cash contribution

CHONGQING JV $379M Total Capitalization

AOS Confidential

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* AOS is not a guarantor of CQJV’s debt. ** CQJV EBITDAS includes amounts attributable to noncontrolling interest.

KEY BALANCE SHEET METRICS

AOS Confidential 21

(in $ millions) JUN 2018 JUN 2019 SEP 2019 AOS CQJV Consolidated AOS CQJV Consolidated AOS CQJV Consolidated CASH 88.3 43.2 131.5 100.7 21.2 121.9 88.1 15.0 103.1 DEBT 30.9 60.4* 91.3 41.0 99.9* 140.9 41.0 95.4* 136.4 INVENTORY 88.2 2.0 90.2 93.8 17.8 111.6 92.5 26.1 118.6 FIXED ASSETS 141.6 190.1 331.7 148.5 261.2 409.7 149.9 250.4 400.3 TOTAL ASSETS 384.4 282.7 667.1 375.0 364.4 739.4 374.9 372.9 747.8 TOTAL EQUITY 293.6 132.6 426.2 325.2 118.1 443.3 331.2 106.4 437.6 OPERATING CASH FLOW 8.7

  • 19.5
  • 10.8

15.2

  • 6.9

8.3

  • 4.2

3.0

  • 1.2

CAPEX PAID 13.8 41.3 55.1 4.6 17.5 22.1 8.3 7.5 15.8 EBITDAS 15.3

  • 6.5**

12.8 15.1

  • 5.6**

14.2 13.8

  • 2.4**

14.3

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NON-GAAP MODEL

APPROACHING TARGET MODEL

* NonGAAP gross margin excludes share-based compensation expenses and production ramp up costs related to joint venture. ** NonGAAP Operating Expense excludes share-based compensation expenses..

REVENUE $600 MILLION $1 BILLION GROSS MARGIN* >30% >30% OPERATING EXPENSE** ~20% ~20% CY2021 CY2024

AOS Confidential 22

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APPENDIX

AOS Confidential

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AOS Confidential 24

Three Months Ended September 30, June 30, September 30, 2019 2019 2018 GAAP gross profit $ 26,932 $ 27,636 $ 32,611 Share-based compensation 436 431 497 Production ramp up costs related to joint venture 5,991 2,587 1,117 Non-GAAP gross profit $ 33,359 $ 30,654 $ 34,225 Non-GAAP gross margin as a % of revenue 28.3 % 27.4 % 29.7 % GAAP net income attributable to AOS $ 1,009 $ 2,545 $ 2,416 Share-based compensation 2,369 2,518 3,129 Pre-production expenses related to joint venture 49 2,413 2,662 Production ramp up costs related to joint venture 3,049 1,317 582 Non-GAAP net income attributable to AOS $ 6,476 $ 8,793 $ 8,789 Non-GAAP net margin attributable to AOS as a % of revenue 5.5 % 7.9 % 7.6 % GAAP diluted net income per share attributable to AOS $ 0.04 $ 0.10 $ 0.10 Share-based compensation 0.10 0.10 0.13 Pre-production expenses related to joint venture — 0.10 0.11 Production ramp up costs related to joint venture 0.12 0.05 0.02 Non-GAAP diluted net income per share attributable to AOS $ 0.26 $ 0.35 $ 0.36 Shares used to compute GAAP diluted net income per share 25,130 24,996 24,594 Shares used to compute Non-GAAP diluted net income per share 25,130 24,996 24,594

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FOCUSED MARKETS (AS OF Q1 FY2020)

AOS Confidential 25 Chart excludes ‘Service and Others’ of 2%

Computing

  • Notebook / PC
  • Server / AI

Power Supply / Industrial

  • Quick Chargers / PD
  • Power Tools, Welding

Communications

  • Smartphone
  • Telecom

Consumer

  • High-end TV
  • Home Appliance

39% 18% 18% 23%