We are a fabless semiconductor company primarily focused on the development of highly-integrated mixed-signal products for consumer electronics.

Our passion for innovation and entrepreneurial spirit ensures we remain at the core of mobile computing and the Internet of Things (“IoT”).

Our technologies contribute to extending battery life in portable devices, charging batteries faster and safely, and providing efficient connectivity in IoT applications.

Our products enhance consumer experience and enable our customers to differentiate and move fast to market.

Our partnership approach, operational flexibility and the quality of our products are key sources of value to our customers.

We invest in R&D up to 18 months ahead of product launch and we recover our investments through the sale of our semiconductors. Our customers’ product cycles range from one to five years. This, together with the strength of our customer relationships, means the Company has long-term visibility of business opportunities and revenue streams, a unique feature for semiconductor companies operating in consumer markets.

A fabless business model based on high Tier 1 customer penetration results in high volumes, longer-term revenue streams and ultimately in strong cash generation.

Corporate responsibility and a commitment to sustainable business practices are important to us. Our commitment to sustainability is outlined in greater detail on our annual sustainability report.

Creating value
Creating value

Aligned interests

Dialog is committed to the continuing development of market-leading innovative products which we believe will generate profitable revenue streams and create long- term value for our shareholders. We achieve this by setting stretching performance targets, which align with shareholders’ interests, and then motivating our executives and employees to achieve those targets with appropriate incentive arrangements.

Sustainability informs everything we do

Design cycle

Our people and IP are vital for our business and two of our key sustainability priorities. Our ability to recruit, retain and develop new talent is vital to generating innovation. Our focus is to maintain a sustainable skills pipeline. We seek to ensure that our intellectual property (“IP”) is adequately safeguarded.

Manufacturing cycle

We promote responsible business practices internally and across our supply chain. Over the years, we have built strong and responsible relationships with our foundry, test, and packaging partners, as well as the communities within which we operate.

Product cycle

Our power efficient technologies extend battery life and reduce materials consumption. We are proud of the energy efficiency of our semiconductors and its positive impact in helping reduce power consumption in consumer applications.

Further information

Annual sustainability report 2018

Engaging with our stakeholders

Our ongoing engagement with internal and external stakeholders helps us understand the impact of our activities and relationships on others – and how we can best manage these impacts in a responsible manner, as well as the potential risks and opportunities, to create value for all our stakeholders.

Our people

Our people drive the success of our business. We know the value a diverse workforce can bring in terms of creativity, dynamism and the sharing of new perspectives. Our culture supports an inclusive and collaborative workplace where everyone can achieve their full potential. Talent retention and development are vital to generating innovation. Our annual employee survey helps us understand what is important to our colleagues and where we need to focus.

Customers

Customers are at the core of our DNA. Our passion for innovation and the quality of our products attract the leading consumer electronic brands. We engage with our customers to better understand their requirements and their perception of the quality of the products we design for them. This helps us increase the value we bring into our products and our performance.

Investors

Dialog Semiconductor is listed in the Frankfurt stock exchange and a constituent of the TecDAX index. We encourage a two-way communication with potential investors and shareholders. Feedback from shareholders informs our Board discussions. We engage with investors and other agents in the financial markets in order to provide open and transparent business information so they can make informed decisions.

Partners and suppliers

As a fabless business model, we have developed a strong and responsible relationship with our foundry, test and packaging partners. Dialog employees are based in many of the premises of our partners. We undertake annual audits of our existing fabrication partners covering operational and sustainability aspects.

Society/ Communities

Our business is grounded in the communities it operates and serves. We work together with universities and professional bodies, as well as local and national organisations. We aim to make a positive contribution to the communities in which we operate through technological advance and the enhancement of the local skills pool.

A strong balance sheet provides a platform to invest in future revenue growth

In 2018, we delivered another year of revenue growth, increased underlying operating margin and free cash flow, while investing over US$325 million in the development of new products.We successfully integrated Silego and launched a new share buyback tranche for up to €150 million.

Revenue

US$1.4 billion

+10% CAGR 2016-2018

Free cash flow

US$229.9 million

Operating profit

US$199.7 million IFRS
US$281.6 million Underlying1

Diluted EPS

$1.80 IFRS
$2.90 Underlying1

Our colleagues

2,100 employees
76% working in engineering functions
29 locations in 16 countries

1 Underlying measures and free cash flow quoted are non-IFRS measures (see page 6 of the Press Release).

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Dialog’s 2017 revenue derived from Apple Inc., was US$1,043 million.

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¹A reconciliation of non-IFRS measures can be found on pages 156-161 of the Annual report and accounts 2017.

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Free cash flow is defined as cash flow from operating activities minus capital expenditure

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A path for future revenue growth

We made good progress in 2018, moving forward with initiatives in each of our strategic priorities.

Our goal is to generate sustainable long-term value for our customers, our shareholders, our employees and other stakeholders.

Extend our product portfolio

We aim to continuously extend our product portfolio of highly-integrated mixed-signal, lower power products. This helps us to diversify, open up new addressable markets and stay ahead of the competition.
48 new products introduced and sold in 2018 with revenues greater than US$200,000.

Achieve a broader and deeper customer base

The quality of our products has attracted the leading brands in each of our markets. We want to maintain and grow those strong relationships while further diversifying our customer base by launching new products and opening up new addressable markets.
26 new customers welcomed to Dialog with revenues greater than US$200,000. Additionally, we deepened our existing customer base with new ASIC and ASSP products.

Deliver continuous innovation

Innovation is at the core of our business. Our top talent and technology, paired with an innovative product development philosophy and sustained R&D investment, enables Dialog to deliver high value to our customers.
US$326m expensed in R&D programmes during 2018, an increase of 8% compared with 2017.

Strategic initiatives and M&A

We support the expansion of our business through a combination of organic initiatives, such as investments in new technologies and establishing regional partnerships, and M&A.
In Q4 2018 we entered the Indian smartphone market with the first PMIC volume production for the latest Micromax smartphone. Our ongoing collaborations with Renesas and Xilinx will strengthen our presence in the automotive segment.

The efficiency of our products is matched by our efficiency as a business. Driving this is a strong culture and values – the “Spirit of Dialog”. Embracing the power of our values sets us apart from other semiconductor companies.

Agility

We believe in being entrepreneurial, always moving and decisive: delivering excellence, and keeping things simple.

Difference

We care about our impact and know that we make a difference: to our customers and their end consumers, to employees and to society.

Many

We are at our best when we work together, across geographic and cultural boundaries. This is about sharing ideas, challenging each other and building strong relationships with our customers, employees and suppliers.

Ideas

We have a passion for innovation and thrive on new ideas. This is about pushing boundaries and taking pride in new approaches.

The Spririt of Dialog

The power of our
values sets us apart

Why invest in Dialog? - A growing business built on innovation

We are building a vibrant and ambitious mixed-signal business. Our expertise, proven track record and talent, gives confidence in the future success of our business.

Solid competitive positioning

  • The quality of our products is rooted in deep and focused R&D investment and intellectual property.
  • Our engineers deliver technical excellence and high level of integration through short design cycles.

Structural growth

  • Our technical competencies are aligned with secular trends in efficient power management and power-efficient technologies in mobility and connected (“Internet of Things”) devices.

High returns, strong cash generation

  • We outsource the production of our semiconductors to leading foundries. Our high touch fabless model enables a low capital intensity business.
  • The combination of low capital intensity and rigorous working capital management results in strong cash flow generation.

Support organic and inorganic expansion

  • We reinvest cash in organic and inorganic initiatives which aim to enhance our competitive advantage, expand our technology portfolio and our customer base.
For further information please contact:
44 (0) 1793 756961