GCS Holdings, Inc. · TPEX:4991
GCS — Q4 2017 Earnings Presentation
27 slides from GCS's earnings presentation, Feb 27, 2018
Slide 1: Q4 2017 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q4 2017 Quarterly Online Investor Conference (線上法說會) Feb 27, 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: Simon Yu, Senior VP and General Manager, Worldwide Sales & Marketing and Component Business 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) 4Q17 4Q17 4Q17 3Q17 4Q16 Over Over 3Q17 4Q16 Net Operating Revenue 526,812 529,100 418,921 -0.4% 25.8% Gross Profit 236,957 223,559 150,061 6.0% 57.9% Gross Margin 45.0% 42.3% 35.8% Operating Expenses (104,199) (122,873) (119,749
Slide 6: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 4Q17 4Q17 4Q17 3Q17 4Q16 Over Over 3Q17 4Q16 Other Income 1,257 771 1,190 63.0% 5.6% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value (19,196) 2,400 29,283 -899.8% -165.6% through profit or loss Net currency
Slide 7: Statements of Comprehensive Income - YoY
Statements of Comprehensive Income – YoY (in NT$ thousands except EPS) 2017 2016 % % Change (%) Net Operating Revenue 1,925,832 100.0% 1,819,706 100.0% 5.8% Operating Cost (1,029,929) -53.5% (1,002,470) -55.1% 2.7% Gross Profit 895,903 46.5% 817,236 44.9% 9.6% Operating Expenses (446,320) -23.2% (51
Slide 8: Non-operating Income and Expenses - YoY
Non-operating Income and Expenses- YoY (in NT$ thousands) 2017 2016 Change (%) Other Income 4,202 3,466 21.2% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value (8,985) 5,348 -268.0% through profit or loss Net currency exchange gain or (loss) (28,043) (6,553) 327.9% G
Slide 9: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices (in NT$ thousands) 4Q17 3Q17 4Q16 Amount % Amount % Amount % Cash and Cash Equivalent 1,119,712 38% 1,102,027 36% 1,381,894 47% Accounts Receivable and Notes Receivable 297,515 10% 317,107 10% 197,245 7% Inventory 329,834 11% 371,005 12% 348,402 12% Available-fo
Slide 10: Cash Flows
Cash Flows (in NT$ thousands) 4Q17 3Q17 4Q16 Beginning Balance 1,102,027 1,288,575 1,355,827 Cash from Operating Activities 139,933 233,361 159,222 Acquisition of property, plant and equipment (36,105) (60,898) (62,433) Decrease (Increase) in non-current assets - 260 - Proceeds from the sale of avai
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% 59% 60% 51% 50% 40% 3% 24% 3095 26% 15% 3: 20% 16% 10% 0% a4 Ql Q2 Q3 a4 note oie oie 2016 2017 2017 2017 2017 ™DC/AOC =m PON MLTE/Ethernet and Other 11
Slide 13: Market Overview
MARKET OVERVIEW 12
Slide 14: GCS Products
GCS Products Brand Name Opto Wafer Foundry Chip Products RF PD/MPD Power APD Electronics KGD Opto VCSEL electronics LD 13
Slide 15: GCS Brand Name Products: Applications & Markets
GCS Brand Name Products: Applications & Markets PD, MPD, APD, VCSEL, LD Consumer LTE Data & BASE PON Centers IoT STATION 40G AOC LTE FTTx 100G HDMI 4G 2.5G 200G Mobile 4.5G 10G 400G Wearable 5G 25G 14
Slide 16: RF Foundry Products: Applications & Markets
RF Foundry Products: Applications & Markets RF Wafer Foundry GaAs (HBT, PHEMT), InP HBT, GaN/Si、GaN/SiC HEMT Wireless (Mobile & Infrastructure Base Station Wifi Mobile Phones 802.11AC 4/4.5/5G 802.11AX
Slide 17: Power Electronics Foundry Products: Applications & Markets
Power Electronics Foundry Products: Applications & Markets Power Electronics Wafer Foundry GaN/Si、GaN/SiC, SiC
Slide 18: Optoelectronics Foundry: Applications & Markets
Optoelectronics Foundry: Applications & Markets Optoelectronics Wafer Foundry APD, VCSEL, FP/DFB LD, EML, 2D Image Sensors Photonic Integrated Circuits…… Optical Fiber Industrial Medical Consumer Networks VCSEL/DFB VCSEL/APD VCSEL VCSEL EML/PIC LD Imager (3D Sensing) LD 17
Slide 19: GCS Processes for 5G
GCS Processes for 5G Sub-6 GHz 0.25um – 0.4um GaN HEMT for BTS PA P3 InGaP HBT for handset PA If phased array is needed, HBT-PIN switch for single-chip PA-Phase Shifter BAW for >2GHz RF filters mmW (28 – 40 GHz) 0.15um GaN HEMT for BTS wide band PA InP HBT for handset PA InP HBT-PI
Slide 20: 400G optical transceiver market
400G 400G optical transceiver $22.6B (2023) (Wintergreen Research, Inc) 400G CFP8 FR8 and LR8 with pulse amplitude modulation (PAM4) technology GCS Confidential
Slide 21: GCS Is Ready for 5G and 400G
GCS IS READY FOR 5G AND 400G 5G: • Super High Linearity HBT Processes • High Frequency PHEMT and 6” InP HBT Processes FAB • High Frequency Filters Process 400G: 100G/200G in production • Super Fast Photodiodes • VCSEL coming soon 20
Slide 22: Other Technologies For High Volume Products
Other Technologies For High Volume Products • High PCE VCSEL for 3D Sensing (on 6” wafer) • Advanced APD array for LiDAR • Advanced Micro-LED process • VCSEL with integrated micro-lens for ADAS and LiDAR • GaAs high power laser for commercial cooking 21
Slide 23: 5G in Winter Olympics
5G in Winter Olympics 黑科技: 5G技术、AR导航、VR直播、机器人火炬手齐上阵 28GHz 5G无线网络 (20Gbps, 40x of 4G) 韩国电信运营商KT、三星以及英特尔等 在平昌、江陵一带铺设了逾1.1万公里的通信及电视转播线路， 搭建了完整的5G网络环境，实现各种视频和移动设备的成功接入 5G的网络速度将比4G快20倍，观赛体验必然有极大的提高。此外 还首推UHD（超高清）电视服务，韩国三家电视台从2017年5月 开始提供地面电视塔发送的地面波UHD电视节目，采用数字压缩 技术，拥有4K/8K画质。这次冬奥会开幕式、重要比赛都将在UHD 频道提供转播，在现
Slide 24: Market Outlook
Market Outlook • LTE Infrastructure - 5G is coming FAST! - Drive RF PA and Optical Modules • PON - 2.5G GPON recovers - 10G PON fast grows • Data Center - 100G major in 2018 - 200G/400G start production in 2018 23
Slide 25: Growth Cycle
Growth Cycle 10G/40G » 100G » 200G/400G 100G » 200G » 400G Data Center Long Metro Haul 10G/40G » 100G » 200G Access 5G 2.5G » 10G » 25G 3G » 4G » 5G 24
Slide 26: Q&A
Qk&A 25
Slide 27: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com 26