Cirtek Holdings Philippines Corporation · PSE:TECH
Cirtek Holdings Philippines — Investor Presentation (December 2020)
46 slides from Cirtek Holdings Philippines's investor presentation, Dec 10, 2020
Slide 1: Cirtek Holdings Philippines Corporation (CHPC) Management Presentation
Cirtek Holdings Philippines Corporation (CHPC) Management Presentation December 10, 2020
Slide 2: CHPC: 5G wireless technology group
Cirtek Holding Philippines Corporation (CHPC) is a group of companies that is engaged in high advanced technology product development and innovation focused on 5G wireless communication industry . CHPC successfully transformed from rich manufacturing expertise into an intellectual properties (IP) ba
Slide 3: Disclaimer
Disclaimer This presentation does not constitute a prospectus or other offering memorandum in whole or in part or an offer to sell or the solicitation of an offer to buy any securities or financial instruments of the Company and/or any of its subsidiaries and/or affiliates, nor shall this presentati
Slide 4: Table of Contents
Table of Contents Company Overview Business Updates - CEC Business Updates – CATSI Business Updates - Quintel Financial Highlights Q&A ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 5: Table of Contents
Table of Contents Company Overview Business Updates - CEC Business Updates – CATSI Business Updates - Quintel Financial Highlights Q&A ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 6: A Fully-Integrated, Global Technology Company
A Fully – Integrated, Global Technology Company Summary Ownership Structure • Cirtek Holdings Philippines Corporation (“Cirtek”) is a Philippine- incorporated entity listed in the PSE with a market cap of US$250M; one of Charmview Carmatheous the fastest growing companies in the Philippines, growing
Slide 7: Office Map
Office Map Corporate office R&D/S&M/ R&D HQ & Manufacturing R&D /Product CM & R&D IP Management Sales coverage US office: North and South American regions UK office: EMEA region PH office: APAC region Third party Collaboration distribution and sales channel not listed here ©2020 Cirtek Holdings Phil
Slide 8: Cirtek Moving up the Technology Value Chain
Cirtek Moving up the Technology Value Chain • CHPC was incorporated. • Raised USD 50 • Raised USD 67 • Corporate restructuring which million from million from FOO led to CHPC becoming parent follow-on offering and listing of of CEC. and listing of USD preferred • Listing on PSE with initial new comm
Slide 9: Business Pillars
Business Pillars Description Q320 Rev. Contrib & Product List Key Customers • Founded in 2007, Quintel designs and develops high efficiency and USD 16.5 Mn (28%) high performance Base Station antenna solutions for wireless • MultiServ – Single Quintel USA + cellular networks Quintel • Antenna – Mult
Slide 10: CHPC Revenue Breakdown
CHPC Revenue Breakdown 9M20 Revenue by Subsidiary 9M20 Revenue by Region 9M20 Revenue by Industry Automotive Asia Medical 2% Military 14% 4% 2% QUINTEL 27.9% Industrial 7% CEC Europe 43.2% 16% Consumer Electronics North 10% America 70% Computing 9% Communication CATSI 66% 28.9% ©2020 Cirtek Holdings
Slide 11: Cirtek Management Team
Cirtek Management Team Jerry Liu Chairman Jorge Aguilar Brian Liu Michael Liu Gina Gillen Vice Chairman Chief Finance Officer Director / President - Quintel Deputy Chief Finance Officer David Barker Mark Wong Schubert Montiel Raul Santiano CTO - Quintel Vice President Operation – CATSI WBB Vice Pres
Slide 12: Cirtek Milestones and Business Track Record
Cirtek Milestones and Business Track Record CIRTEK is 35 YEARS on going business with a proven track record of impressive growth, strong management team, annual dividend declaration to shareholders. With our rich business experience, CIRTEK can weather an economic slow down, recession and financial
Slide 13: Table of Contents
Table of Contents Company Overview Business Updates - CEC Business Updattes – CATSI Business Updates - Quintel Financial Highlights Q&A ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 14: CEC: A One-Stop Shop for World-Class Turnkey Solutions
CEC: A One-Stop Shop for World-Class Turnkey Solutions CIRTEK The leader in semiconductors Electronics Largest independent subcontractor for Corp. semiconductor assembly, test, and packaging services in the Philippines. Applications / end users Provides turnkey solutions that encompasses the whole p
Slide 15: Products and Applications
Products and Applications Consumer Industrial Industrial Automotive Smart phones,tablets Lightning immunitydevice LeakDetection AC, headlightcontrol, parking sensors Discrete digital interface IC Sensor auto Hall sensor Bullet trainautomatic switching application door system Communication device Pro
Slide 16: Our Partners in the Industry
Our Partners in the Industry USA EUROPE ASIA Analog Devices/Linear Tech / Aptasic Maxim Bourns Berex Cobham AES Cobham Tech SJM Prewell Calogic EM Micro RFHIC Central Semi Fagor Silicon Link DEI HMT Taitien ES Components Infineon SSO Honeywell Microcrystal Vishay SCX SG GaN System Micromm GMBH Renes
Slide 17: Revenue Breakdown
Revenue Breakdown 9M20 Revenue by Region 9M20 Revenue by Industry Application Communication, 35% Computing, 20% Europe, North 30% America, 45% Consumer Electroncis, 20% Asia Pacific, 25% Automotive, Industria Medical, 5% l, 10% 10% ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Prop
Slide 18: CEC Business Update
CEC Business Update ▪ Revenue growth driven by new products and new customers ▪ CEC is expanding its salesforce in the US, Europe and Asia in light of customer expansion in Telecommunications, Automotive, Medical, Industrial, Sensor, and Consumer electronics / Internet CIRTEK Electronics Corp. of Th
Slide 19: Outsourced Semiconductor and Test (OSAT)
Outsourced Semiconductor and Test (OSAT) Growth Drivers Increased demand for consumer electronics Outsourced Semiconductor and Test (OSAT) • OSAT Market is expected to register a CAGR OF 6% over the forecast period (2020-2025). • The current OSAT market is about USD44Billion in the next six years or
Slide 20: Table of Contents
Table of Contents Company Overview Business Updates - CEC Business Updattes – CATSI Business Updates - Quintel Financial Highlights Q&A ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 21: CEIC Knows Radio Frequency
CEIC Knows Radio Frequency Overview Customer List Production Facilities • Over 20 years in design, manufacturing, packaging, and testing. • One of only a handful of independent RF/MW/MM companies in the world • Primary sells integrated circuits principally to the Biñan Production Facility U.S. • Bui
Slide 22: Manufacturing and Service Expense
Manufacturing and Service Expense Products Uses Business Applications • Split-type Microwave Radios • Microwave Backhaul Radio Links • Wireless Telecommunication • All Outdoor Internet Protocol Radios • High-capacity Millimeter Wave Radio • Satellite Communication Systems • Gigabit Millimeterwave Ra
Slide 23: Shift Toward Millimeter Wave Technology
Shift Toward Milimeter Wave Technology Millimeter Wave Advantages Emerging Sectors: Products and Applications • Upper end of the radio frequency spectrum from • Radio spectrum still in early stages of development 20 Ghz to 300 Ghz • Larger bandwidth Telecommunications Imaging • One to fifteen millim
Slide 24: 2020 Revenue by Industry Application
2020 Revenue by Industry Application 2020 YTD Revenue by Industry Application 2020 YTD Revenue by Region 9% 11% 6% 10% 11% 4% 70% Industrial Military/defense 79% Sat comm Consumer Telecomm Asia Eurpoe North America ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 25: CATSI Business Update
CATSI Business Update ▪ Revenue growth driven by strong demand for Radio Frequency (RF) / Microwave / Millimeterwave products in the telecoms, consumer, defense, security, satcom, and imaging end markets ➢ Managed to secure Blanket Purchase Orders (BPOs) from 2 major US customers (RBWN and MNI) to s
Slide 26: Radio Frequency and Wireless Broadband
Radio Frequency and Wireless Broadband • 5G is forecasted to account for 45 percent of global mobile data traffic by 2025 Growth Drivers • By the end of 2019, global mobile data traffic reached around 33EB per month. This Internet of Things is forecasted to grow by almost a factor of 5 to reach 164E
Slide 27: Radio Frequency and Wireless Broadband
Radio Frequency and Wireless Broadband Mobile Data Traffic to Reach 20 EB/month by 2020 Source: www.marketsandmarkets.com/Market-Reports/5g-fixed-wireless-access-market-41266711.html ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 28: The Internet of Things
The Internet of Things The Next Evolution of Technology The Internet of Things (“IoT”) is the network of physical objects that contain embedded technology (electronics, software, sensors, connectivity) which allow these objects to communicate, sense, or interact with their internal states as well as
Slide 29: Broadband Data Growth Market
Broadband Data Growth Market Global Wireless Broadband Market • The global wireless broadband market was valued at $10.6bn in 2016 and is forecast to grow at a strong CAGR of 10.6% between 2017 and 2024, USD culminating to global revenue of 23.5 $23.5bn by 2024 USD Billion 11.7 Billion Source: https
Slide 30: Table of Contents
Table of Contents Company Overview Business Updates - CEC Business Updates – CATSI Business Updates - Quintel Financial Highlights Q&A ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 31: Quintel Background
Quintel Background + ODM/OEM Partnerships Joint Solutions / Licensing / IP Integration Organic Antenna Developments US TAM ~$800m (Quintel % of Total 1% 5% Addressable Market “TAM”): “Business as First Office Usual” status US in NY at AT&T Office National Cirtek Relationships Founded; Spun- in CA Ap
Slide 32: Business Description and Product End Application
Business Description and Product End Application • Quintel manufactures and supplies AT&T and Verizon with Base Station Antennas • MNO’s deploy antennas to add additional spectrum and new services such as 5G at sites. ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 33: 4G and 5G - Another perspective of where we play
4G and 5G – Another perspective of where we play Source: IEEE ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 34: Major Products - Our Current Macro Antenna Portfolio
Major Products – Our Current Macro Antenna Portfolio Key differentiator has been our independent tilting from dual-band low-band radios ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 35: Base Station Antenna Market Growth
Base Station Antenna Market Growth Growth Drivers Internet of Things Increasing Mobile data traffic Base Station Antenna Market Source: Global Base Station Antennas Market Outlook 2019-2024, GEN Consulting, https://www.asdreports.com/market-research-report-451903/global-base-station-antennas-market-
Slide 36: Current 5G Penetration - Beware of Adverts
Current 5G Penetration – Beware of Adverts • 5G is advertised as available now. This is using existing Low-Band Spectrum of between 5-20MHz Downlink, giving up to say 100Mbps Experiences. • The “real” 5G experience needs to come from 3.7GHz (auction) and 2.5GHz (TMO) where up to 100MHz of spectrum c
Slide 37: 5G network spend encouraged by iPhone 12
5G network spend encouraged by iPhone 12 • iPhone 12 will support 5G in both sub-6GHz and mm Wave bands • Sub-1GHz has been rolled out by all Operators in the US through spectrum refarming, for 5G base coverage. • Sub-1GHz won’t deliver the headline data rates often touted for 5G • C-Band (3.7GHz) a
Slide 38: Master Purchase Agreements (MPA)
Master Purchase Agreements (“MPA”) • QUSA has 3x executed MPA’s • They give us “license to sell” products. • Volumes will depend on actual orders. • Verizon may renew the current MPA following a “Request for Quotation”, which may provide more growth potential. • This prospect being a result of Veriz
Slide 39: Quintel Telecomm Market Revenue by Customers
Quintel Telecomm Market Revenue by Customers Quintel Telecomm Market Revenue by Customers Others, 5% AT&T, 35% Verizon, 60% ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 40: Table of Contents
Table of Contents Company Overview Business Updates - CEC Business Updates – CATSI Business Updates - Quintel Financial Highlights Q&A ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 41: Financial highlights
Financial highlights ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 42: Financial highlights
Financial highlights ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 43: Cirtek: 3Q2020 (9MOS) in review
Cirtek: 3Q2020 (9MOS) in review Financial summary Except for per share As of and for the nine months ended 19-20 amounts (US$000s) Consolidated September 30 Inc. (Dec) Income statement data Reviewed 2020 Unaudited 2019 % Net sales 59,522 69,560 (14) Cost of sales (44,375) (54,367) (18) Gross profit
Slide 44: Table of Contents
Table of Contents Company Overview Business Updates - CEC Business Updates – CATSI Business Updates - Quintel Financial Highlights Q&A ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 45: Thank you!
Thank you! ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
Slide 46: Q&A
QA ©2020 Cirtek Holdings Philippines Corporation. - Confidential & Proprietary
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