GCS Holdings, Inc. · TPEX:4991
GCS — Q2 2019 Earnings Presentation
21 slides from GCS's earnings presentation, Aug 14, 2019
Slide 1: Q2 2019 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q2 2019 Quarterly Online Investor Conference (線上法說會) Aug 14, 2019
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) 2Q19 2Q19 2Q19 1Q19 2Q18 Over Over 1Q19 2Q18 Net Operating Revenue 465,346 377,909 522,665 23.1% -11.0% Gross Profit 239,073 136,060 256,217 75.7% -6.7% Gross Margin 51.4% 36.0% 49.0% Operating Expenses (129,466) (122,480) (135,4
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 60% 53% 53% 47% 46% 47% 48% 47% 50% 40% 36% 21% 40% 30% 32% 18% 29% 30% 9 17% 20% 10% 0% Q3 Q4 Qi 2Q 3Q 4Q 1Q Q2 2017 2017 2018 2018 2018 2018 2019 2019 mDC/AOC mPON” mLTE/Ethernet & Other
Slide 8: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 2Q19 2Q19 2Q19 1Q19 2Q18 Over Over 1Q19 2Q18 Other Income 7,103 5,204 2,060 36.5% 244.8% Other Gains and Losses Gain (loss) on disposal of property, plant & equipment (637) - - - - Net currency exchange gain or (loss) 757 (109) 1,833 -794.5%
Slide 9: Statements of Comprehensive Income - YoY
Statements of Comprehensive Income - YoY (in NT$ thousands except EPS) 2019 2018 % % Change (%) Jan to June Jan to June Net Operating Revenue 843,255 100.0% 1,001,685 100.0% -15.8% Operating Cost (468,122) -55.5% (531,164) -53.0% -11.9% Gross Profit 375,133 44.5% 470,521 47.0% -20.3% Operating Expen
Slide 10: Non-operating Income and Expenses - YoY
Non-operating Income and Expenses- YoY (in NT$ thousands) 2019 2018 Change (%) Jan to June Jan to June Other Income 12,307 3,756 227.7% Other Gains and Losses Gain (loss) on disposal of property, plant & equipment (637) - - Net Gain or (losses) on financial liabilities at fair value - 2,322 -100.0%
Slide 11: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 2Q19 1Q19 2Q18 Amount % Amount % Amount % Cash and Cash Equivalent 1,771,104 45% 1,709,872 45% 1,365,587 42% Accounts Receivable and Notes Receivable 291,301 8% 272,740 7% 256,702 8% Inventory 368,755 9% 340,8
Slide 12: Cash Flows
Cash Flows (in NT$ thousands) 2Q19 1Q19 2Q18 Beginning Balance 1,709,872 1,512,863 1,215,937 Cash from Operating Activities 89,146 (7,724) 141,563 Acquisition of financial assets at fair value through other comprehensive income - (164,000) - Acquisition of property, plant and equipment (28,682) (22,
Slide 13: Market Overview
MARKET OVERVIEW 12
Slide 14: Global Optical Market
Global Optical Market 2019 wired broadband users - 1.1B 2019 LTE Mobile broadband users – 4.7B March 2019, 85 countries 204 operators will invest 5G network March 2019, 36 operators have installed 3GPP 5G technologies 100GbE continues to grow with 400GbE initial volume deployment OFC2019
Slide 15: Optical Components Market
Optical Components Market 14
Slide 16: 5G Mobile
5G Mobile 5G mobile subs will surpass a billion in 2023, but still remain a small percent of all mobile broadband subs In thousands % of all mobile broadband 1,400,000 18% 9 41,200,000 16% 14% 1,000,000 12% 800,000 10% 600,000 8% 6% 400,000 4% 200,000 2% 0 0% 2019 2020 2021 2022 2023 mm Total 5G mob
Slide 17: Simon's Favorite
Simon’s Favorite (cs) FEA BRAG 3 FP ° Ki MOoredooS ahs 2018FREE FIRE LH — (SGA » PAIS RAA CPE + {#FA3.5GHZ3A ER » ihh$2018.9R MRA 2 Pat 42S ( (2 FA700MHz) . ocairacvnann pep BALA MPAA RAE RMS ' FEN SEECARIABRAA BEARERS - SSMAE The first 5G network in the world a Copyright 2019 = All Rights Reserved
Slide 18: Data Center
Data Center (Gc) * Combined spending of the top 15 Cloud vendors set a new record of close to $100 billion in 2018, but a sharp decline in spending reported in Q1 2019. ¢ Drop in Q4 2011 and Q4 2015 was due to Google spending cut. * Drop in Q12019- much broad based, Out of the top 15 Cloud companies
Slide 19: 400G
400G (cs) "First Silicon” 64x10G, 32x40G, 32x100G, 64x100G 32x400G, add 2+ years for production & A JA & a TRIDENT TRIDENT? TOMAHAWK TOMAHAWK? I Tomahawk3 heretes LIGHTCOUNTING 400GbE is very unlikely to retrace the 40GbE curve? ci Shipements (Units) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Slide 20: Q&A
Qk&A 19
Slide 21: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com 20