GCS Holdings, Inc. · TPEX:4991
GCS — Q3 2016 Earnings Presentation
27 slides from GCS's earnings presentation, Nov 11, 2016
Slide 1: Q3 2016 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q3 2016 Quarterly Online Investor Conference (線上法說會) Nov 11, 2016
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) 3Q16 3Q16 3Q16 2Q16 3Q15 Over Over 2Q16 3Q15 Net Operating Revenue 455,727 481,273 424,594 -5.3% 7.3% Gross Profit 238,896 194,426 180,754 22.9% 32.2% Gross Margin 52.4% 40.4% 42.6% Operating Expenses (128,961) (120,896) (98,139)
Slide 6: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 3Q16 3Q16 3Q16 2Q16 3Q15 Over Over 2Q16 3Q15 Other Income 689 1,064 642 -35.2% 7.3% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value 21,933 10,202 20,129 115.0% 9.0% through profit or loss Net currency exchan
Slide 7: Statements of Comprehensive Income – YoY
Statements of Comprehensive Income – YoY (in NT$ thousands except EPS) 2016 2015 % % Change (%) Jan to Sep Jan to Sep Net Operating Revenue 1,400,785 100.0% 1,187,925 100.0% 17.9% Operating Cost (733,610) -52.4% (714,528) -60.1% 2.7% Gross Profit 667,175 47.6% 473,397 39.9% 40.9% Operating Expenses
Slide 8: Non-operating Income and Expenses - YTD
Non-operating Income and Expenses- YTD (in NT$ thousands) Jan to Sep 3Q16 2Q16 1Q16 2016 Other Income 2,276 689 1,064 523 Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value (23,935) 21,933 10,202 (56,070) through profit or loss Net currency exchange gain or (loss) (17
Slide 9: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 3Q16 2Q16 3Q15 Amount % Amount % Amount % Cash and Cash Equivalent 1,355,827 46% 1,290,712 46% 1,263,579 55% Available-for-Sale Financial Assets-Current - 2% 41,668 - - - Accounts Receivable 266,988 9% 267,013
Slide 10: Cash Flows
Cash Flows (in NT$ thousands) 3Q16 2Q16 3Q15 Beginning Balance 1,290,712 1,258,482 1,190,862 Cash from Operating Activities 72,797 43,166 136,518 Acquisition of property, plant and equipment (21,164) (45,266) (268,050) Acquisition of available-for-sale financial assets - - (66) Proceeds from the sal
Slide 11: Revenue Product Mix % - QoQ
100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Revenue Product Mix % - QoQ 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2015 2015 2015 2015 RF mOpto 2016 2016 2016 10
Slide 12: Revenue Mix (K USD) vs Gross Margin
Revenue Mix (K USD) vs Gross Margin 11
Slide 13: Market Overview
MARKET OVERVIEW 12
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Slide 15: 2016 RHUL Ges)
2016 RHUL Ges) a CEEC ew RAD 14
Slide 16: Optical Communication Market
OPTICAL COMMUNICATION MARKET So far 2016 Market (Lightcounting): - Total market for optical components and modules is expected to grow by 17% in 2016 - Main Drivers: 100G DWDM Networks in China 40GbE/100G GbE in mega-DC from cloud-based companies - Strong growth in sales of 100G DWDM and 100GbE prod
Slide 17: Optical Communication Market: Lightcounting 2017 and beyond
OPTICAL COMMUNICATION MARKET Lightcounting: 2017 and beyond - Total market for optical components and modules used in optical communications will grow at a CAGR of 10% in 2017-2021 - Sales of optics to the cloud datacenter market will continue to grow rapidly in 2017-2021, averaging 20% annually - T
Slide 18: Optical Communication Market - DC
OPTICAL COMMUNICATION MARKET - DC Active optical cables (AOCs) used in data centers: 2015 - $481M 2022 - $3.4-4.2 Billion (based on several research firms) NA, Eorupe and Japan: 60% share of worldwide AOC revenue in 2020 Source: Fujikura Nov 11, 2016 GCS Confidential 17
Slide 19: Optical Communication Market - DC
OPTICAL COMMUNICATION MARKET - DC Lightcounting: - Google is starting deployment of 100GbE today and considers 200GbE to be the next step - Facebook and Microsoft confirmed their commitment to deploying 400GbE as soon as possible and skipping 200GbE. Both companies count on SiP to accelerate advance
Slide 20: Optical Communication Market - FTTH
OPTICAL COMMUNICATION MARKET - FTTH - With 120 million households enjoying fiber broadband connections, China is home to half of the world’s FTTH subscribers - More than 50 million of these FTTH connections were added in 2015 and another 40 million customers will be connected this year - Despite the
Slide 21: 4G LTE Base Stations in China
4G LTE Base Stations in China 中国移动通信基站产量: 2014 -- 35,396万信道 2015 –- 30,660万信道 (YoY -13.4%) 下滑主要原因是 2014 年中国移动 4G 建设力度大、 同时为储备电信、联通的 4G 项目，厂商增加基站产量过快，2015 年也在 消耗存货所致。上半年信道产量同比下滑 30%， 全年下滑趋势较上半年有所缓解， 主要是下半年中国移动 LTE三期建设的开始以及中国电信、中国联通对 4G 扩容。 2016 Q1 - 9665.2 万信道，同比上涨 46%，基站建设回暖明显 2017 1H – 800MHz LTE F
Slide 22: 4G LTE Base Stations in China
4G LTE Base Stations in China New-added 4G base stations: 2014 – 84.8万个 2015 - 102万个 (YoY 20.28%) - 中国移动: 38万, 中国电信: 33万, 中国联通: 31万 2016 - 三家将分别增加约 30 万座 4G 基站建设 2014 、2015 年三大运营商新增 4G 基站数量 Nov 11, 2016 GCS Confidential 21
Slide 23: 4.5G (LTE-A Pro)
4.5G (LTE-A Pro) 2016 年为 4.5G 的商用元年，全球已经有 9 个运营商部署 了 LTE-A pro，包括 Telstra（澳大利亚），DNA（芬兰），SK 电讯（韩国），Vodafone（西班牙） AIS（泰国），True、Turkcell、Turk Telecom、Vodafone（土耳其）。 华为预计 2016 年将有超过 60 张 4.5G 网络投入商 用，4.5G 将在 2016 年迎来商用爆发。 中国联通董事长王晓初表示，4.5G 性价比较高，计划明年在重点城市部署。 预计中国三大运营商将于 2017 年开启 4.5G 规模建设。 智研咨询发布的《2016-
Slide 24: 5G
5G 2016 – 3GPP initiated 5G standard research 2017 – Complete 5G research 2018 – develop 5G Rev. 1.0 standard (1st phase before September) 2019 – develop 5G Rev. 1.0 standard (2nd phase before December) 2020 – 5G commercial launch 5G Bands: 6GHz, 15GHz, 18GHz, 28GHz, 38GHz, 45GHz, 60GHz, 72GHz US FC
Slide 25: Applications & Markets
Applications & Markets RF & Power Electronics Optoelectronics RFIC、HEMT、pHEMT、HBT, PD, APD, VCSEL, FP/DFB LD, 40G InP HBT, GaN/Si、GaN/SiC、 Photonic Integrated Circuits, 100G SiC… 2D Image Sensors …… 200G 400G Wireless Consumer Power Data Fiber Optical （mobile + / Electronics Centers Network Infrastr
Slide 26: Q&A
Qk&A 25
Slide 27: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com Nov 11, 2016 26