We are a fabless semiconductor company primarily focused on the development of highly-integrated and power-efficient mixed-signal Integrated Circuits (“ICs”) for consumer electronics and high-growth segments of automotive and industrial end-markets.

Our passion for innovation and entrepreneurial spirit ensures we remain at the forefront of power efficient semiconductor technology for the Internet of Things (“IoT”), mobile computing and automotive.

Our custom, configurable and standard products enhance consumer experience and enable our customers to differentiate and shorten their time-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 integrated into our Annual report and accounts.

Our people and culture

Highly skilled engineers and talented employees supported by entrepreneurial values.

Products, IP and know‐how

We invest in new product development and seek to ensure that our intellectual property (“IP”) is adequately safeguarded.

Robust and responsible value chain

We promote responsible practices internally and across our value chain, which is composed of the leading foundries, assembly and test companies in the industry.

Customer relationships

A close R&D collaboration with the leading electronics companies is at the heart of what we do.

Strong balance sheet

A strong balance sheet and cash flow generation gives us the flexibility to pursue our growth strategy.

Creating value

Highly engaged, motivated and diverse workforce

10.0%

Employee turnover in 2019

New IP and power‐efficient differentiated mixed‐signal ICs

1,080

Inventions for which we are pursuing or have patent protection

Sustainable partner relationships

99.9%

On Time Delivery

Close and longstanding customer relationships

72%

Customer concentration

High returns and strong cash flow generation

US$449m

Free cash flow generation in 2019

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.

Sustainability Strategy

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:


Good health and well-being

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.

Quality education

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.

Gender equality

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.

Decent work and economic growth

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.

Industry, innovation and infrastructure

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.

Climate action

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.

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

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.

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Underlying1 revenue

US$1.4 billion

Free cash flow

US$449.4 million

Operating profit

IFRS US$379.9 million
Underlying1 US$324.3 million

Diluted EPS

IFRS $3.96
Underlying1 $3.47

Our colleagues

2,036 employees
77% working in engineering functions
30 locations in 15 countries

1 Underlying measures and free cash flow quoted are non-IFRS measures. See pages 183 to 189 of the Annual report and accounts 2019

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1See explanations and reconciliations to the nearest equivalent IFRS measures on pages 183 to 189 of the 2019 Annual Report
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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 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.

Extend our product portfolio

We aim to continuously extend our product portfolio of highly-integrated mixed-signal, power-efficient products. This helps us to diversify, open up new addressable markets, and stay ahead of the competition.
56 new products introduced and sold in 2019 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.
43 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 focused R&D investment, enables Dialog to deliver high value to our customers.
US$314m expensed in R&D programmes during 2019, a decrease of 4% compared with 2018.

Strategic initiatives and M&A

We support the expansion of our business through a combination of organic initiatives, such as investments in new technologies, establishing partnerships, and M&A.
In 2019, we extended our product portfolio in Connectivity IoT with the acquisition of FCI bringing low power Wi-Fi expertise in house. Additionally we entered the industrial market with the acquisition of Creative Chips.

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 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.

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, give us 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.
Revenue excluding licensed main PMIC products

+38% year-on-year

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.
Expenses in R&D in 2019

US$314m

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.
Number of employees in engineering functions

1,573

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.
Free Cash Flow in 2019

US$449.4m

For further information please contact:
44 (0) 1793 756961