Gcs Holdings, Inc. · TPEX:4991
Gcs — Q3 2020 Earnings Presentation
20 slides from Gcs's earnings presentation, Nov 9, 2020
Slide 1: Q3 2020 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q3 2020 Quarterly Online Investor Conference (線上法說會) Nov 09, 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 Spokesperson 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) 3Q20 3Q20 3Q20 2Q20 3Q19 Over Over 2Q20 3Q19 Net Operating Revenue 358,437 412,013 466,566 -13.0% -23.2% Gross Profit 146,995 187,826 197,302 -21.7% -25.5% Gross Margin 41.0% 45.6% 42.3% Operating Expenses (107,418) (101,990) (12
Slide 6: Revenue Mix % vs Gross Margin - QoQ
Revenue Mix % vs Gross Margin - QoQ 5
Slide 7: KGD Revenue Mix - QoQ
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4Q 2018 40% 47% 1Q 2019 KGD Revenue Mix - QoQ KGD Revenue Analysis-By Application 53% Q2 2019 mDC/AOC 74% 64% 58% 26% 16% 23% 17% 13% 9% Q3 Q4 Qi 2019 2019 2020 HPON’ MLTE/Ethernet & Other 64% 5% 321% Q2 2020 81% 14% '% Q3 2020
Slide 8: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 3Q20 3Q20 3Q20 2Q20 3Q19 Over Over 2Q20 3Q19 Other Income 2,142 3,123 7,184 -31.4% -70.2% Other Gains and Losses Net currency exchange gain or (loss) (2,519) (650) 483 287.5% -621.5% Gain (loss) on disposal of property,plant and equipment (2)
Slide 9: Statements of Comprehensive Income - YoY
Statements of Comprehensive Income - YoY (in NT$ thousands except EPS) 2020 2019 % % Change (%) Jan to Sep. Jan to Sep. Net Operating Revenue 1,137,802 100.0% 1,309,821 100.0% -13.1% Operating Cost (643,083) -56.5% (737,386) -56.3% -12.8% Gross Profit 494,719 43.5% 572,435 43.7% -13.6% Operating Exp
Slide 10: Non-operating Income and Expenses - YoY
Non-operating Income and Expenses- YoY (in NT$ thousands) 2020 2019 Change (%) Jan to Sep. Jan to Sep. Other Income 11,513 19,491 -40.9% Other Gains and Losses Net currency exchange gain or (loss) (2,708) 1,131 -339.4% Gain (loss) on disposal of property, plant and 211 (639) -133.0% equipment Liquid
Slide 11: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 3Q20 2Q20 3Q19 Amount % Amount % Amount % Cash and Cash Equivalent 1,146,721 28% 1,113,221 27% 1,941,017 48% Accounts Receivable and Notes Receivable 190,908 5% 218,338 5% 265,767 7% Inventory 365,119 9% 368,2
Slide 12: Cash Flows
Cash Flows (in NT$ thousands) 3Q20 2Q20 3Q19 Beginning Balance 1,113,221 1,448,840 1,771,104 Cash from Operating Activities 56,678 92,138 181,651 Acquisition of investments accounted for under the equity method - (464,693) - Acquisition of property, plant and equipment (2,724) (35,267) (10,216) Decr
Slide 13: Market Overview
MARKET OVERVIEW 12
Slide 14: 2020 Optical Communication Market
2020 Optical Communication Market 5G deployment, COVID-19 boosted network bandwidth demand BUT Businesses and Consumers: no extra money to buy more bandwidth Service providers revenue deteriorate starting mid 2020 curb spending Ciena, Cisco, Intel sharply lower outlook When solid economi
Slide 15: Optical Communication Market: 2016 vs 2025
Optical Communication Market: 2016 vs 2025 CWDM/ Ethernet DWDM 14
Slide 16: RF GaAs Market
RF GaAs Market STRATEGYAN ICS How Did We Get Here (in the GaAs Market)? G = Wireless (cellular) 8,000 + Oy i 7,000 + They didn’t come 6,000 + — ; _ COM Eia | cd 5,000 + i $ MAFET S 4,000 + > i > 2 3,000 | __ MIMIC 2,000 + 1,000 + a Source: erry rt ) -a-8-5-8-5 7o8 a = =e 1990 1992 1994 1996 1998 200
Slide 17: RF GaN Market
RF GaN Market (c's) STRATEGYANALYTICS How Did We Get Here (in the GaN Market)? Ci F] 900 800 +} Defense and base stations 700 + | Defense and a sprinkling of commercial applications ‘* >| 200 Source: Strategy Analytics i ‘| o ——_—_/ im) tJ 7 71 2008 §=92009 «#92010 2011 2012 2013 2014 2015 2016 2017
Slide 18: RF Market Outlook
RF Market Outlook • Global RF front end module market: CAGR 12% 2014-2019. • Cellular will continue dominate GaAs market Base station and defense applications dominate GaN (GaN/Si or GaN/SiC) • 5G and post-COVID life drive data traffic growth (both optical and wireless) IP data CAGR: 30% total, 80
Slide 19: Q&A
Qk&A 18
Slide 20: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com 19