Gcs Holdings, Inc. · TPEX:4991
Gcs — Q1 2020 Earnings Presentation
23 slides from Gcs's earnings presentation, May 8, 2020
Slide 1: Q1 2020 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q1 2020 Quarterly Online Investor Conference (線上法說會) May 08, 2020
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, Senior 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) 1Q20 1Q20 1Q20 4Q19 1Q19 Over Over 4Q19 1Q19 Net Operating Revenue 367,352 476,513 377,909 -22.9% -2.8% Gross Profit 159,898 237,496 136,060 -32.7% 17.5% Gross Margin 43.5% 49.8% 36.0% Operating Expenses (109,694) (130,559) (122,
Slide 6: Revenue Mix % vs Gross Margin - QoQ
Revenue Mix % vs Gross Margin - QoQ 5
Slide 7: KGD Revenue Mix - QoQ
KGD Revenue Mix - QoQ KGD Revenue Analysis-By Application 80% 74% 64% 70% 58% 60% 53% 50% 40% 30% 20% 10% 0% 2Q 3Q 4Q 1Q Q2 Q3 Q4 Qi 2018 2018 2018 2019 2019 2019 2019 2020 mDC/AOC mPON MLTE/Ethernet & Other
Slide 8: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 1Q20 1Q20 1Q20 4Q19 1Q19 Over Over 4Q19 1Q19 Other Income 6,248 7,011 5,204 -10.9% 20.1% Other Gains and Losses Net currency exchange gain or (loss) 461 (1,576) (109) -129.3% -522.9% Gain (loss) on disposal of property,plant and equipment 213
Slide 9: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 1Q20 4Q19 1Q19 Amount % Amount % Amount % Cash and Cash Equivalent 1,448,840 37% 1,838,994 47% 1,709,872 45% Accounts Receivable and Notes Receivable 201,303 5% 317,126 8% 272,740 7% Inventory 369,392 10% 352,
Slide 10: Cash Flows
Cash Flows (in NT$ thousands) 1Q20 4Q19 1Q19 Beginning Balance 1,838,994 1,941,017 1,512,863 Cash from Operating Activities 182,004 77,636 (7,724) Acquisition of financial assets at fair value through other comprehensive income - - (164,000) Acquisition of investments accounted for under the equity
Slide 11: Market Overview
MARKET OVERVIEW 10
Slide 12: 2019 Optical Fiber Communication
2019 Optical Fiber Communication Ethernet Optical Transceiver – lackluster 2019 - Decline 16% ($2.9B vs $3.45B 2018) Wireless Fronthaul Optical Transceivers (30M+ units, close to 25M in China) - 5G 25G Wireless Fronthaul boost the growth in 2H 2019 More players get into optical transceiver mar
Slide 13: Q1 2020 OFC Overview
Q1 2020 OFC Overview The whole world was gripped by the COVID-19 pandemic. • Telecommunications and data centers; designated essential businesses that are allowed to remain open • China is getting back to business, more or less • Bandwidth demand is getting a boost from social distancing measures •
Slide 14: Sales of Ethernet Optical Transceivers
Sales of Ethernet Optical Transceivers 1. Slow down in infrastructure spending in China and elsewhere 2. US-China trade war Before COVID-19 GOOD NEWS! 13
Slide 15: 2019 RF Market
2019 RF Market • 5G is here! after a few years of hype and irrational exuberance • 19 millions 5G smartphones sold (H/7m, S/6.7m, V/2m, X/1.2m, LG/0.9m) • 130K+ 5G base stations built in China (7 years to build 6 millions 5G base stations) • 5G users by 2025 China – 460m, Europe – 205m, USA – 187m •
Slide 16: 2019 RF Market (continued)
2019 RF Market (continued) • GaN RF semiconductor device market 2018 - US$ 460.93 million, 2024 – US$1597.36 million (2019-2024, CAGR – 23.2%) • GaN/Si to replace LDMOS, and can potential for smartphones as well • 5G network drives volume adoptions of GaN (both sub-6G and mmWave) • GaN/SiC and GaN/D
Slide 17: Q1 2020 RF Market
Q1 2020 RF Market • 2020 – Year of GaN? • Smartphones declines estimated 21% in 2020, recovers well in 2021 • Absence of MWC Barcelona, but a good range of affordable models (<$500) targeted at the Chinese and international markets • Push to deliver sub-$200 5G smartphones by the end of 2020 • China
Slide 18: 2019 & Q1 2020 Power Electronics Market
2019 & Q1 2020 Power Electronics Market • GaN/Si got into consumer market (Nov 2019 Oppo GaN charger) • EV/HEV will drive power electronics innovations - Worldwide power electronics market: US$23.4 billion CAGR 19% 2018-2026 (AR&C) - 4 millions EV needs 100,000 6” SiC wafers • Solid-state cooking is
Slide 19: EV Sales
EV Sales Electric car: - Has been growing rapidly over the past 10 years - Global stock of electric passenger cars to 5 million in 2018 (YOY 63%) - 2.3 million (45%) in China (39% 2017) - Europe – 24%, US – 22% - 2030 – Sales 43 million, Stock 250 million (EV30@30 campaign by 2030) (IEA) - Assuming
Slide 20: 5G Market
5G Market 5G Market: USD 12,300 billion (by 2035) Data Source: IHS 19
Slide 21: 5G Market
5G Market • 5G Has made a positive contribution to the COVID-19 response effort - embraced online tools for collaboration, communication, education, and entertainment. CloudMind’s 5G Cloud Robots Neolix’s unmanned vehicles 5G-enabled cloud collaboration tools for CT scan and x-ray screening via HD v
Slide 22: Q&A
Qk&A 21
Slide 23: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com 22