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 integrated into our Annual report and accounts.
Highly skilled engineers and talented employees supported by entrepreneurial values.
We invest in new product development and seek to ensure that our intellectual property (“IP”) is adequately safeguarded.
We promote responsible practices internally and across our value chain, which is composed of the leading foundries, assembly and test companies in the industry.
A close R&D collaboration with the leading electronics companies is at the heart of what we do.
A strong balance sheet and cash flow generation gives us the flexibility to pursue our growth strategy.
Employee turnover in 2019
Inventions for which we are pursuing or have patent protection
On Time Delivery
Free cash flow generation in 2019
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 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 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.
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.
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.
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.
The 17 UN Sustainable Development Goals (“SDGs”) promote sustained and inclusive economic growth, social development and environmental protection in the interest of creating a world that is just, equitable and inclusive. Dialog supports the following SDGs with our existing programmes:
Dialog is increasingly engaged in the connected health segment with our short range connectivity technology. We are working with leading pharmaceutical and medical equipment companies to develop next generation connected medical devices that improve people’s lives.
Dialog inspires the innovators of the future through our support for science, technology, engineering and maths (“STEM”) subjects, particularly amongst female students. This includes our community engagement activities; student sponsorships; collaboration with universities; our support for the Women in Engineering Society and the UK Electronics Skills Foundation; as well as employee volunteering.
Dialog takes equality and equal opportunity for all employees very seriously. In line with our corporate values we conduct business ethically, honestly, and in full compliance with applicable laws and regulations. This applies to every business decision in every area of Dialog worldwide. The principles enshrined in our Code of Business Conduct promote openness, integrity and high ethical standards in all business dealings.
Dialog is committed to fair wages, healthy and safe working conditions, respect for human and labour rights, and honest relationships. We have adopted the Responsible Business Alliance (“RBA”) standard as part of our own Supplier Code of Conduct to ensure that working conditions for both external suppliers and employees are safe and that all workers are treated with respect and dignity.
Innovation is at the core of our business and we seek to sustain a healthy level of investment in the development of new products. Our focused R&D approach and close collaboration with leading OEMs ensure we remain at the forefront of mixed-signal semiconductor technology.
Our power-efficient technology helps to extend the battery life of over a billion consumer applications. Highly integrated designs reduce the number of components and materials consumption. Although fabless, we seek to minimise our carbon footprint and offset all travel CO2 emissions.
In 2019, we took the first steps on the successful execution of our plan towards building a more diverse mixed signal business. Dialog is focused on growing its market share in high-growth segments of Internet of Things (“IoT”), mobile, automotive, computing and industrial.
1 Underlying measures and free cash flow quoted are non-IFRS measures. See pages 183 to 189 of the Annual report and accounts 2019
¹A reconciliation of non-IFRS measures can be found on pages 156-161 of the Annual report and accounts 2017.
Free cash flow is defined as cash flow from operating activities minus capital expenditure
We made good progress in 2019, moving forward with initiatives in each of our strategic priorities.
The strategic framework aims to give a comprehensive view of our business and the links between our strategy, risks and the progress made during the year.
We believe in being entrepreneurial, always moving and decisive: delivering excellence, and keeping things simple.
We care about our impact and know that we make a difference to our customers and their end-consumers, to employees and society.
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.
We have a passion for innovation and thrive on new ideas. This is about pushing boundaries and taking pride in new approaches.