Gcs Holdings, Inc. · TPEX:4991

Gcs — Q1 2021 Earnings Presentation

25 slides from Gcs's earnings presentation, Apr 27, 2021

  1. Slide 1: Q1 2021 Quarterly Online Investor Conference

    環宇 芯系天下 March 3, 2016 Q1 2021 Quarterly Online Investor Conference (線上法說會) Apr 27, 2021

  2. 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

  3. 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

  4. Slide 4: GCS Holdings, Inc.

    GCS Holdings, Inc. - A Global Network of Advanced Semiconductor Foundry Services for Customers Worldwide April 2021 GCS Confidential 1

  5. Slide 5: 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

  6. Slide 6: Global Network of Advanced Semi Foundries

    Global Network of Advanced Semi Foundries GCS Holdings, Inc. Listed on Taipei Exchange 4991.TWO Gala Semi Chemsemi GCS, LLC Unikorn GDT Shanghai, PRC Jiangsu, PRC California, USA Hsinchu, Taiwan New Taipei City, Taiwan Optical Components CS Foundry services CS Foundry services CS Foundry services Re

  7. Slide 7: About GCS LLC.

    About GCS LLC. ➢ Founded in 1997, Headquarters in Torrance, California ➢ Listed on Taipei Exchange (TAIEX), ITAR Registered, ISO9001:2008/AS9100C:2009 Certified ➢ A leader in advanced compound semiconductor (CS) process technologies that are essential to: ➢ 5G/4G Networks ➢ Smart Devices ➢ Automotiv

  8. Slide 8: Broad Applications of Technologies

    Broad Applications of Technologies Wireless Opto Power Mobile Infrastructure Aerospace Electronics Electronics Devices GaAs HBT GaAs pHEMT PiN PD GaN SB Diode GaAs/InP HBT GaN HEMT GaAs HBT APD GaN SB HEMT GaAs pHEMT EE Laser GaN MISHEMT BAW filter RF PiN Diode Mixer Diode RF PiN Diode VCSEL SiC SB

  9. Slide 9: About Unikorn

    About Unikorn Fab: 3F ✓ Founded : October 2018 ✓ Employees : ~200 (As of November 2020) 2F 6” ✓ Capital : 26M USD ✓ Shareholders: EPISTAR(64%) 1F GCS(36%) 4”/6” Target Market : ✓ VCSEL ✓ PIN/ APD ✓ Advanced LED (aLED) → μLED ✓ GaN on Si (RF/ Power…) ✓ BAW filter April 2021 GCS Confidential 6

  10. Slide 10: Unikorn Value Proposition

    Unikorn Value Proposition April 2021 GCS Confidential 7

  11. Slide 11: About Chemsemi

    About Chemsemi ✓ Founded : March 2020 ✓ Employees : ~100 (As of 12/2020) ✓ Capital : ~ 45M USD ✓ Shareholders : Summitview Capital GCS Holdings Epistar Target Market : Mobile/Consumer Electronics ✓ VCSEL for 3D sensing ✓ GaAs HBT, pHEMT ✓ Advance SAW filters ✓ BAW filters ✓ Power Electronics April 2

  12. Slide 12: GCS Holding, Inc. A Global Network of Advanced Semiconductor Foundry Services

    GCS Holding, Inc. A Global Network of Advanced Semiconductor Foundry Services for Customers Worldwide April 2021 GCS Confidential 9

  13. Slide 13: Financial Section

    FINANCIAL SECTION 3

  14. Slide 14: Statements of Comprehensive Income - QoQ

    Statements of Comprehensive Income - QoQ (in NT$ thousands except EPS) 1Q21 1Q21 1Q21 4Q20 1Q20 Over Over 4Q20 1Q20 Net Operating Revenue 301,307 344,057 367,352 -12.4% -18.0% Gross Profit 100,005 119,015 159,898 -16.0% -37.5% Gross Margin 33.2% 34.6% 43.5% Operating Expenses (99,221) (107,102) (109

  15. Slide 15: Revenue Mix % vs Gross Margin - QoQ

    Revenue Mix % vs Gross Margin - QoQ 5

  16. Slide 16: KGD Revenue Mix - QoQ

    KGD Revenue Mix - QoQ KGD Revenue Analysis-By Application 90% 81% 74% 16% 80% 64% 70% 58% 64% 64% 60% 53% 50% 31% 40% 7% 31% 14% 30% 17% 20% 5% 10% % 0% a2 Q3 a4 ai a2 a3 a4 ai 2019 2019 2019 2020 2020 2020 2020 2021 mDC/AOC mPON” mLTE/Ethernet & Other

  17. Slide 17: Non-operating Income and Expenses- QoQ

    Non-operating Income and Expenses- QoQ (in NT$ thousands) 1Q21 1Q21 1Q21 4Q20 1Q20 Over Over 4Q20 1Q20 Other Income - other 1,935 2,911 6,248 -33.5% -69.0% Other Income - Income from forgiveness of PPP loan 6,838 - - - - Other Gains and Losses Net currency exchange gain or (loss) (113) (3,652) 461 -

  18. Slide 18: Balance Sheet Highlight & Key Indices

    Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 1Q21 4Q20 1Q20 Amount % Amount % Amount % Cash and Cash Equivalent 1,159,644 31% 1,106,476 28% 1,448,840 37% Accounts Receivable and Notes Receivable 197,894 5% 197,537 5% 201,303 5% Inventory 346,235 9% 362,0

  19. Slide 19: Cash Flows

    Cash Flows (in NT$ thousands) 1Q21 4Q20 1Q20 Beginning Balance 1,106,476 1,146,721 1,838,994 Cash from Operating Activities 28,131 43,538 182,004 Acquisition of investments accounted for under the equity method - - (400,000) Acquisition of property, plant and equipment (32,444) (8,840) (23,443) Decr

  20. Slide 20: Market Overview

    MARKET OVERVIEW 0

  21. Slide 21: Optical Communication Market

    Optical Communication Market 5G RFQ continues delay in China 100G modules maintain a steady path (above $2 billion a year) 200G solution – adopted by Facebook, start ramp in 2021 2x400G solution – adopted by Google; volume deployment in 2022 9 of top 15 CSPs provide capex guidance up11% in 2021

  22. Slide 22: RF Market

    RF Market Covid-19 and US-China conflict will continue change the RF landscape – China will be forced to re-think its strategies and pump more investment into RF and develop its own domestic suppliers or use European suppliers. Long term not positive for US suppliers in China market? RF front-end

  23. Slide 23: RF GaN Market

    RF GaN Market 2019-2025 packaged GaN RF device market SOCECARS = apie by ap plicatecn (Source: GaN RF Market: At ayers, Technology, and Substrates report, Yole Développement, 2020) ® Telecom infrastructure © Military ® Wired broadband Pr eae ae 2025 RF energy Commercial radar and avionics © SATCOM O

  24. Slide 24: Q&A

    Qk&A 10

  25. Slide 25: For further inquiry

    環宇芯系天下 For further inquiry investors@gcsincorp.com 11

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