GCS Holdings, Inc. · TPEX:4991

GCS — Q3 2017 Earnings Presentation

29 slides from GCS's earnings presentation, Nov 3, 2017

  1. Slide 1: Q3 2017 Quarterly Online Investor Conference

    環宇 芯系天下 March 3, 2016 Q3 2017 Quarterly Online Investor Conference (線上法說會) Nov 03, 2017

  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, Director & Special Assistant to CEO Market Overview: Simon Yu, Senior VP and General Manager, Worldwide Sales & Marketing and Component Business Q&A: All 2

  4. Slide 4: Financial Section

    FINANCIAL SECTION 3

  5. Slide 5: Statements of Comprehensive Income - QoQ

    Statements of Comprehensive Income - QoQ (in NT$ thousands except EPS) 3Q17 3Q17 3Q17 2Q17 3Q16 Over Over 2Q17 3Q16 Net Operating Revenue 529,100 458,228 455,727 15.5% 16.1% Gross Profit 223,559 248,075 238,896 -9.9% -6.4% Gross Margin 42.3% 54.1% 52.4% Operating Expenses (122,873) (107,349) (128,96

  6. Slide 6: Non-operating Income and Expenses - QoQ

    Non-operating Income and Expenses- QoQ (in NT$ thousands) 3Q17 3Q17 3Q17 2Q17 3Q16 Over Over 2Q17 3Q16 Other Income 771 1,208 689 -36.2% 11.9% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value 2,400 (51,639) 21,933 -104.6% -89.1% through profit or loss Net currency e

  7. Slide 7: Statements of Comprehensive Income – YoY

    Statements of Comprehensive Income – YoY (in NT$ thousands except EPS) 2017 2016 % % Change (%) Jan to September Jan to September Net Operating Revenue 1,399,020 100.0% 1,400,785 100.0% -0.1% Operating Cost (740,074) -52.9% (733,610) -52.4% 0.9% Gross Profit 658,946 47.1% 667,175 47.6% -1.2% Operati

  8. Slide 8: Non-operating Income and Expenses - YoY

    Non-operating Income and Expenses- YoY (in NT$ thousands) 2017 2016 Change (%) Jan to September Jan to September Other Income 2,945 2,276 29.4% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value 10,211 (23,935) -142.7% through profit or loss Net currency exchange gain

  9. Slide 9: Balance Sheet Highlight & Key Indices

    Balance Sheet Highlight & Key Indices (in NT$ thousands) 3Q17 2Q17 3Q16 Amount % Amount % Amount % Cash and Cash Equivalent 1,102,027 36% 1,288,575 45% 1,355,827 48% Available-for-Sale Financial Assets-Current Asset - 0% 42,711 2% - 0 Accounts Receivable and Notes Receivable 317,107 10% 242,033 8% 2

  10. Slide 10: Cash Flows

    Cash Flows (in NT$ thousands) 3Q17 2Q17 3Q16 Beginning Balance 1,288,575 1,259,062 1,290,702 Cash from Operating Activities 233,361 80,188 72,797 Acquisition of property, plant and equipment (60,898) (32,301) (21,164) Decrease (Increase) in non-current assets 260 30,830 - Decrease (Increase) in othe

  11. Slide 11: Revenue Mix % vs Gross Margin - QoQ

    Revenue Mix % vs Gross Margin - QoQ 10

  12. Slide 12: Revenue Mix without D-Tech - QoQ

    Revenue Mix without D-Tech - QoQ 11

  13. Slide 13: KGD Revenue Mix - QoQ

    70% 60% 50% 40% 30% 20% 10% 0% KGD Revenue Mix - QoQ KGD Revenue Analysis-By Application 64% 59% si% a 48% 48% f 47% 42% 33% a 3% % 24% 24% 28% 29% 26% 23% 13% 1% 17% 16% 15% \ \ ai a2 a3 aa (ore a2 a3 2016 2016 2016 2016 2017 2017 2017 mDC/AOC PON wm LTE/Ethernet and Other 12

  14. Slide 14: KGD Revenue Mix without D-Tech - QoQ

    KGD Revenue Mix without D-Tech - QoQ 13

  15. Slide 15: Market Overview

    MARKET OVERVIEW 14

  16. Slide 16: GCS Products

    GCS Products Brand Name Opto Wafer Foundry Chip Products RF PD/MPD Power APD Electronics KGD Opto VCSEL electronics LD 15

  17. Slide 17: GCS Brand Name Products: Applications & Markets

    GCS Brand Name Products: Applications & Markets PD, MPD, APD, VCSEL, LD Consumer Optical Data & Fiber Centers IoT Networks 40G AOC LTE 100G HDMI (4/4.5/5G) 200G Mobile FTTx 400G Wearable

  18. Slide 18: 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

  19. Slide 19: Power Electronics Foundry Products: Applications & Markets

    Power Electronics Foundry Products: Applications & Markets Power Electronics Wafer Foundry GaN/Si、GaN/SiC, SiC

  20. Slide 20: Optoelectronics Foundry Products: Applications & Markets

    Optoelectronics Foundry Products: Applications & Markets Optoelectronics Wafer Foundry APD, VCSEL, FP/DFB LD, EML, 2D Image Sensors Photonic Integrated Circuits…… Optical Fiber Industrial Medical Networks

  21. Slide 21: Typical RF Transceiver Block Diagrams

    Typical RF Transceiver Block Diagrams GCS has all the Preferred Device Technologies RF Front-end Module • HEMT • HEMT • HEMT • HBT • Si • BAW • GaAs/InP • High fco SBD • SAW • Si • IPD HBT Mixer • MMIC • HEMT LNA Filter IF Filter IF Amp ADC • GaAs Antenna • InP PIN • Si PIN • SOI Receiver LO Chain (

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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 23

  25. Slide 25: 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 24

  26. Slide 26: Market Outlook

    Market Outlook • LTE Infrastructure - 5G is coming FAST! - Drive RF and Optical Modules • PON - 2.5G GPON recovers - 10G PON fast grows • Data Center - 100G major in 2018 - 200G/400G start production in 2018 25

  27. Slide 27: Q&A

    Qka&A 26

  28. Slide 28: Thank You!

    THANK YOU! 環宇 芯 系 天下 5G 400G 27

  29. Slide 29: For further inquiry

    環宇芯系天下 For further inquiry investors@gcsincorp.com 28

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