Gcs Holdings, Inc. · TPEX:4991
Gcs — Q3 2018 Earnings Presentation
24 slides from Gcs's earnings presentation, Nov 2, 2018
Slide 1: Q3 2018 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q3 2018 Quarterly Online Investor Conference (線上法說會) Nov 2, 2018
Slide 2: Disclaimer Statement
Disclaimer Statement This presentation includes forward-looking statements. All statements, other than statements of historical facts, that address activities, events or developments that GCS Holdings, Inc. expects or anticipates will or may occur in the future (including but not limited to projecti
Slide 3: Agenda
Agenda Opening: Brian Ann, CEO & President Financial Section: Grace Li, Director & Special Assistant to CEO Market Overview: Brian Ann, CEO & President Q&A: All 2
Slide 4: Financial Section
FINANCIAL SECTION 3
Slide 5: Statements of Comprehensive Income - QoQ
Statements of Comprehensive Income - QoQ (in NT$ thousands except EPS) 3Q18 3Q18 3Q18 2Q18 3Q17 Over Over 2Q18 3Q17 Net Operating Revenue 514,359 522,665 529,100 -1.6% -2.8% Gross Profit 247,314 256,217 223,559 -3.5% 10.6% Gross Margin 48.1% 49.0% 42.3% Operating Expenses (129,046) (135,480) (122,87
Slide 6: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 3Q18 3Q18 3Q18 2Q18 3Q17 Over Over 2Q18 3Q17 Other Income 1,173 2,060 771 -43.1% 52.1% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value - - 2,400 #DIV/0! -100.0% through profit or loss Net currency exchange g
Slide 7: Statements of Comprehensive Income - YoY
Statements of Comprehensive Income - YoY (in NT$ thousands except EPS) 2018 2017 % % Change (%) January to September January to September Net Operating Revenue 1,516,044 100.0% 1,399,020 100.0% 8.4% Operating Cost (798,209) -52.7% (740,074) -52.9% 7.9% Gross Profit 717,835 47.3% 658,946 47.1% 8.9% O
Slide 8: Non-operating Income and Expenses - YoY
Non-operating Income and Expenses- YoY (in NT$ thousands) 2018 2017 Change (%) January to September January to September Other Income 4,929 2,945 67.4% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value 2,322 10,211 -77.3% through profit or loss Net currency exchange
Slide 9: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 3Q18 2Q18 3Q17 Amount % Amount % Amount % Cash and Cash Equivalent 1,392,649 42% 1,365,587 42% 1,102,027 36% Accounts Receivable and Notes Receivable 282,434 9% 256,702 8% 317,107 10% Inventory 327,667 10% 350
Slide 10: Cash Flows
Cash Flows (in NT$ thousands) 3Q18 2Q18 3Q17 Beginning Balance 1,365,587 1,215,937 1,288,575 Cash from Operating Activities 131,052 141,563 233,361 Acquisition of property, plant and equipment (48,089) (43,185) (60,898) Decrease (Increase) in non-current assets - - 260 Acquisition of Subsidiaries (2
Slide 11: Revenue Mix % vs Gross Margin - QoQ
Revenue Mix % vs Gross Margin - QoQ 10
Slide 12: KGD Revenue Mix - QoQ
KGD Revenue Mix - QoQ KGD Revenue Analysis-By Application 70% 64% 60% 48% 50% [ 47% 40% 36% 29% 24% 30% 23% 13% 17% 20% 10% Q2 a3 46% F 38% 16% 0% Q3 a4 Ql Q4 2016 2016 2017 2017 2017 2017 2018 2018 2018 ™DC/AOC mPON @LTE/Ethernet and Other 11
Slide 13: Market Overview
MARKET OVERVIEW 12
Slide 14: Future Growth Engine
Future Growth Engine Source: Nokia Source: KNect365 • Smaller base stations, multiple in multiple out (MIMO) architectures • More and higher frequency bands, MIMO for cell phones More RF components (PA and Filter) M2M: Machine to Machine 13
Slide 15: More RF Components in 5G
Evolution of the RF Front End gle Carrier, 36 4G, DLCA ‘One Antenna ‘Two Antennas re > Main Path Diversity Path Band a Band Band J gorvo, “GG Power Amplifiers Switching/Tuning Filters Other RF Content Total RF Front-End Content D: 355789 RF Front-End BOM Estimates by Phone Type, 2018 ooOU Entry-Leve
Slide 16: Front End Module Market
Front End Module Market yiiOle 2017-2023 RF front-end modules market outlook (Source: 5G’s Impact on RF Front-End Module and Connectivity for Cell Phones 2018, Yole Développement, June 2018) -- Total RF components & FEM/PAMiD module manufacturers 2023 $35B % e Filters @ Antenna tuners 2 @ Switches +
Slide 17: Evolution of the GaAs Market
Evolution of the GaAs Market 16
Slide 18: GCS Advanced Processes for 5G
GCS Advanced Processes for 5G HBT HEMT on GaAs and On GaAs and InP 4”/6” GaN processes processes Wafer Fab BAW Filters on SMART 17
Slide 19: Overall CS Market (2017)
Overall CS Market (2017) Total OEM Market Revenue: $8827.9M Pure play foundry revenue included Total Foundry Revenue: $743.3M 8.4% of Total OEM Revenue 18
Slide 20: Business Model Evolution
Business Model Evolution Business model comparison: Integrated Device Manufacturer vs. foundry (Source: RF GaN Market: Applications, Players, Technology, and Substrates 2018-2023, Yole Développement, January 2018) Foundry 2017 Control of process + Manufacturing yield Technology mature + Production c
Slide 21: Going Forward
Going Forward Majority of the capacities are within Imminent need for a viable Break the capacity constraints IDM’s second source to WIN to allow - Walk on Two Legs - Lack of efficiency like Silicon IDM’s to let go of their own - Optimize the capacity in US for - WIN is the only company that product
Slide 22: Customer Activities
Customer Activities Data Center momentum continuing – 100G in volume and 400G qualified Major customers evaluating GCS 25G VCSEL (for 100G/200G/400G) In discussion with major customers on GaN 6” production for base stations SMART BAW process in final development with strategic customers 3D sens
Slide 23: Q&A
Qk&A 22
Slide 24: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com 23