Chief Telecom Inc. · TPEX:6561
Chief Telecom — Q3 2022 Earnings Presentation
42 slides from Chief Telecom's earnings presentation, Nov 2, 2022
Slide 1: Chief Company Introduction
Chief Company Introduction Stock Code：6561 Nov. 02, 2022 https://www.chief.com.tw
Slide 2: Chapter 1: Company Profile
CHAPTER 1 Company Profile
Slide 3: 1. Chief Profile
1. Chief Profile Founded Jan. 19, 1991 Capital NT$ 706,823,810 Major Products IDC Services Cloud Services Data Network Services Voice Services Exchange Services Type II Telecom Operational License General Type II：ISP、Internet Special Type II：VPN 、 ISR 、 070 VoIP International Bandwidth B&S World-cla
Slide 4: 2. Company History
2.Company History 1990 2022 2020 1991 2016 Jan. - Newly added 20G network backbone Founded Apr. - Chief Subsidiary awarded ISP/VPN to each of Japan and Singapore telecom license in Shanghai Jul. - Provide Oracle cloud direct connect 2000 to Tokyo Set up first IDC to 2017 Aug. -Promote Health Cloud s
Slide 5: 3. Company Positioning
3. Company Positioning Specialization/ Sharing/ Collaboration/ Multi-winners Platform + Connectivity + Value + Carrier Neutral 5
Slide 6: 4. Platform+ (Service Convergence)
4. Platform+ (Service Convergence) VM+CCIS 6
Slide 7: 5. Connectivity+ (Tele Market)
5. Connectivity+ (Tele Market) Global Internet & Network Type I : Int’l Carriers HGC PCCW NTT GCX Type II : Singtel Telstra Submarine Operators Type III: Int’l ICP & Cloud Google AWS CHT FB Service Providers TFN FET Azure Type Ⅳ: Domestic Domestic Network Carriers & ISP Enterprise Customers Consumer
Slide 8: 6. Value+ (Customer Clustering Magnetic Attraction Effect)
6. Value+ (Customer Clustering Magnetic Attraction Effect) Customers ICP Local Operator Global Carrier Telecom Resources Network Data ISP Resources Resources SSP Cloud Resources ASP ISR IDC Partners Chief Telecom is based on carrier neutral position to attract domestic and international carriers, su
Slide 9: 7. Major Customers
7. Major Customers Domestic Carriers International Carriers Chief Solution Enterprise Customers Global Cloud Providers TPIX Members 9
Slide 10: Recent Years Finance Performance
CHAPTER 2 Recent Years Finance Performance • Revenue & Gross Margin • Net Margin & EPS • Percentage of Cash Dividends • Product Service Revenue Percentage
Slide 11: 1. Revenue & Gross Margin
1. Revenue & Gross Margin Unit: NT$K 3,000,000 48.0% 46.0% 2,500,000 44.0% 2,000,000 42.0% 1,500,000 40.0% 1,000,000 38.0% 500,000 36.0% 0 34.0% 2018 2019 2020 2021 2022-Q3 Revenue 2,272,362 2,400,002 2,564,649 2,801,046 2,281,697 Gross Margin 39.3% 42.0% 43.7% 44.8% 47.00% Revenue Gross Margin 11
Slide 12: 2. Net Margin & EPS
2. Net Margin & EPS Unit: NT$ 12 30.0% 10 25.0% 8 20.0% 6 15.0% 4 10.0% 2 5.0% 0 0.0% 2018 2019 2020 2021 2022-Q3 EPS 7.41 7.83 8.67 9.75 8.56 Net Margin 21.4% 22.75% 23.80% 24.52% 26.50% 12
Slide 13: 3. Percentage of Cash Dividends
3. Percentage of Cash Dividends NT$ 10 9.3 8.8 9 8 8 7.5 7 6 4.97 5 4 3 2 1 0 2017 2018 2019 2020 2021 Year Note：Year 2021 with NT$9.3 cash dividend including NT$0.6 additional paid in capital 13
Slide 14: 4. Product Revenue Percentage
4. Product Revenue Percentage 100.0% 11.0% 9.8% 8.6% 7.7% 11.9% 8.4% 11.2% 13.5% 15.3% 16.1% 80.0% 60.0% 52.3% 49.6% 47.6% 46.7% 44.8% 40.0% 20.0% 27.4% 28.2% 29.1% 29.4% 31.4% 0.0% 2018 2019 2020 2021 2022-Q3 Voice Services Cloud Services Data Services IDC Services 14
Slide 15: Product Line Introduction
CHAPTER 3 Product Line Introduction
Slide 16: Product Line Introduction
Product Line Introduction Chief Company Introduction https://youtu.be/GwYa4Bw9lnM IDC Service Data Service Cloud Service Exchange Center Voice Service ISO Information Security Quadruple Certification & DCOS-4 Certification 16
Slide 17: 1. IDC Colocation Services – Carrier Neutral
1. IDC Colocation Services – Carrier Neutral World-class carrier neutral IDC to provide high quality IDC services World-class IDC SLA Customized design and deployment 99.999% power system design Dual-loop UPS system and cooling system Fire detection and suppression system 7X24hrs NMC
Slide 18: 2.1 Data Service – Global Internet Services
2.1 Data Service – Global Internet Services • Important Internet service hub in Taiwan with complete Internet resource, including diverse domestic ISP connections and international bandwidth. International Carriers Domestic ISP and TWGate & Submarine Cable Type II Operators APBT CT Global Operators
Slide 19: 2.2 Data Service_ IPLC
2.2 Data Service_ IPLC IPLC can be used as an end-to-end physical transmission path for important branches of multinational enterprises. With stable and high-performance dedicated fixed bandwidth services to provide customers with various commercial applications of the actual transmission requir
Slide 20: 2.3 Global VPN Service
2.3 Global VPN (virtual private network) Service With forward-looking network deployment and complete enterprise solutions to expand global VPN services. Northern China Global VPN Network Beijing/Tianjin /Qingdao Vancouver Central China Seoul Tokyo Chongquing/Wuhan Chengdu/Hefei Eastern China Shangh
Slide 21: 3.1 Comprehensive Cloud Solutions
3.1 Comprehensive Cloud Solutions Cloud Security Solution Customer Service Cloud Direct Portal Connect Service & Hybrid Cloud Solutions Enterprise Comprehensive Cloud Srorage Cloud Platform SaaS Application Enterprise Cloud Backup Cloud IaaS Solution 21
Slide 22: 3.2 Cloud IaaS Solution
3.2 Cloud IaaS Solution Industrial Applications PaaS Level SaaS Level • • Enterprise Business Applications Big Data、EC Integrate Oracle 、 • IoT Applications Azure etc. external • VR/AR Computing Applications public cloud resources • Digital Content Hosting, Cloud Multimedia Convergence IaaS Level Cl
Slide 23: 3.3 Cloud Direct Connect – Multi Cloud, Hybrid Cloud Solutions
3.3 Cloud Direct Connect – Multi Cloud、Hybrid Cloud Solutions Public Cloud • High Speed • Safety • Compliance Public Internet Congestion & Security Risks Data Localization Enterprise Data Center 23
Slide 24: 3.4 Cloud SaaS
3.4 Cloud SaaS Business Intelligence Smart Manufacturing Smart Health Chief i Health SaaS AR/VR IoT Sales Marketing 24
Slide 25: 4.1 Taipei Cable Exchange Center (TPCX)
4 .1 Taipei Cable Exchange Center (TPCX) • Private cables (NCC licensed Pacnet/Telstra, TIGC, Reach, GCX) and consortium cables are connected in Chief IDC site, most of fixed network operators in Taiwan all set up PoPs in Chief IDC site for submarine cable interconnection. • Chief TPCX is only one p
Slide 26: 4.2 Taipei Internet Exchange Center (TPIX)
4.2 Taipei Internet Exchange Center (TPIX) TPIX provides internet traffic exchange service for both Social Search G CDN F AKI international and domestic Network Engine Operator customers. TPIX is an Internet Cloud E-commerce A Multimedia N M exchange hub. Operator www.tpix.net.tw International & dom
Slide 27: 4.3 Chief Cloud Exchange (CCX)
4.3 Chief Cloud Exchange (CCX) CCX provides direct connect to global cloud service platform with high security, high speed, and low latency of the private connection quality. • Transnational、multi-cloud、 hybrid-cloud high speed direct connect. • Service POPs include Taipei 、 Hong Kong 、Japan 、and Si
Slide 28: 5. 070 Cloud PBX UC Services
5. 070 Cloud PBX UC Services 070 VoIP: 1st choice for Cloud PBX Service Cross-Operator/Network/Platform/Device NCC E.164 Numbers for worldwide use. Support PC 、NB、Pad、Mobil phone Support mobile、ADSL、 VPN 、 Wi-Fi Cloud IP-Centrex Management Center Provide IP-Centrex Customer web portal to manage serv
Slide 29: 6. Four Product Lines to Drive Growth Curve
6. Four Product Lines to Drive Growth Curve TPIX APP Cloud SaaS High speed applications internet Vertically Enrich Product Complete Lines, Horizontally Multi- Carrier ICT solutions Platform, and Cross- Neutral border Strategic Layout - Multi-cloud/ Hybrid cloud Local data storage Cloud solutions Dir
Slide 30: Industry Trend & Future Business Focus
CHAPTER 4 Industry Trend & Future Business Focus • Industry Trend • Future Business Focus
Slide 31: 1.1 Global Cloud Service and IDC Service Market Trend
1.1 Global Cloud Service and IDC Service Market Trend Note 1: Amazon(32%)/Microsoft(18)/Google(6)/IBM(5)/Alibaba top 5 CSPs account for 2/3 public cloud market. 2020~2025 CAGR 20% for global cloud market in 2020~2025. Note 2: CAGR 11% for global IDC market in 2020~2028. 31
Slide 32: 1.2 Cloud, AI, VR/AR Industry Trend
1.2 Cloud、AI 、VR/AR Industry Trend Edge Computing Multi_Cloud Big Data Machine learning, IT Infrastructure Modeling, Tagging Digital Transformation (IDC) AI Hybrid Cloud Smart Device Internet of Things VR/AR Popularization of 5G (speed is more than 10 times faster than 4G) Optical fiber high-speed a
Slide 33: 2.1 Future Business Focus
2.1 Future Business Focus Investing in building the fourth IDC Building island-wide high-speed broadband network Expanding Submarine Cable Backbone Cultivating the partnership with network service providers in East Asia Partnering over 10 countries in East Asia Extending CCX functions Promoting smar
Slide 34: 2.2 L.Y.2 IDC - Digital Convergence Center Connectivity Hub
2.2 L.Y.2 IDC- Digital Convergence Center Connectivity Hub 2024 Q1 Commercial Service 16,500 sqm Floor Area 20 MW Power Capacity LRB Seismic Isolation Design (A series magnitude 7.0 earthquakes) Floor Loading 2,000 kg/m2 Green/Smart Building Design 34
Slide 35: 2.3 Attract Global Service Providers to Set up Regional Data Service Center
2.3 Attract Global Service Providers to Set up Regional Data Service Center Google & Microsoft already Set up Regional Data Centers in Taiwan 第四棟大樓 L.Y.2 Attract Global Service Providers to Set up Regional Data Service Centers at L.Y.2 35
Slide 36: 2.4 Three Rings Three Lines
2.4 Three Rings Three Lines China North-east Asia Sufficient Domestic and Foreign Danshui Station South-east Asia Bali Stration USA Fiber Optic Cable Resources Japan Europe • Optical fiber connecting 4 IDC buildings to support Taipei ultra speed bandwidth. Hsinchu Taipei Toucheng Station• Optical fi
Slide 37: 2.5 Expand International Backbone and Cooperate with East Asia Countries Operators
2.5 Expand International Backbone and Cooperate with East Asia Countries Operators 1 The 1st carrier The 1st IXP st neutral IDC in (TPIX) in Taiwan Taiwan Korea Japan China The 1st cloud The major exchange submarine Hong Kong Thailand cable India gateway in Philippines Taiwan gateway in Cambodia Vie
Slide 38: 2.6 CIX_Next Generation SDN Network Architecture
2.6 CIX_Next Generation SDN Network Architecture (3) Connect Chief Services or Partners’services - Internet, TPIX, CCX, VPN, IaaS Internet (2) SDN Controller TPCX IDC Infrastructure Network Taipei Ring GW/Hub Taiwan Ring International SDWAN CPE Ring VPN SDWAN customer connections IaaS (1) SDN / Data
Slide 39: 2.7 Smart Health Service - Chief i Health App
2.7 Smart Health Service - Chief i Health App 39
Slide 40: 2.8 Chief Telecom Flywheel
2.8 Chief Telecom Flywheel 2024 Q1 New IDC in Service • Neutrality and Connectivity • IDC Alliance One-stop shopping for Platform and connectivity products and services, to support more Combined with professional Complete and rich ecosystem, application scenarios, and constancy service to More appli
Slide 41: East Asia Digital Convergence and AI, Cloud Business Application Center
V、 East Asia Digital Convergence and AI、 Cloud Business Application Center Taiwan is located in the center of Eastern Asia region, through customer clustering magnetic attraction effect. The company vision of Chief Telecom is to become East Asia Digital Convergence & AI、Cloud Business Application Ce
Slide 42: 2F, #68, Ruiguang Rd., Nei-hu T: 886-70-1018-6688 Dist. Taipei 11491, Taiwan,
11491 台北市 2F, #68, Ruiguang Rd., Nei-hu T: 886-70-1018-6688 chief.com.tw 內湖區瑞光路 Dist. Taipei 11491, Taiwan, F: 886-2-2657-6728 68 號 2 樓 R.O.C.