Chief Telecom Inc. · TPEX:6561
Chief Telecom — Q3 2023 Earnings Presentation
41 slides from Chief Telecom's earnings presentation, Nov 8, 2023
Slide 1: Chief Company Introduction
Chief Company Introduction Stock Code：6561 Nov. 8, 2023 https://www.chief.com.tw
Slide 2: Company Profile
CHAPTER 1 Company Profile
Slide 3: Chief Profile
1. Chief Profile Founded Jan. 19, 1991 Capital NT$ 778,193,700 Major Products IDC Services Cloud Services Data Network Services Voice Services Exchange Services Telecom Operational License ISP、Internet 、LLC VPN 、 ISR 、070 VoIP International Bandwidth B&S World-class IDC Buildings Chief ESG Report
Slide 4: Company History
2. Company History 1991 2023 2016 2021 1991 Apr. - Chief Subsidiary awarded ISP/VPN Mar.- Sign partnership agreement with Founded telecom license in Shanghai PLDT Global, cooperation with operators 2000 in 10 ASEAN countries 2017 Oct. -Update company CIS, LY2 new IDC Set up first IDC to Jul. - Award
Slide 5: Company Positioning
3. Company Positioning Specialization/ Resource Sharing/ Collaboration/ Multi-winners Platform + Connectivity + Value + Carrier Neutral 5
Slide 6: Platform+ (Service Aggregation)
4. Platform+ (Service Aggregation) VM+CCIS 6
Slide 7: Connectivity+ (Telecom, Network, Cloud Cluster)
5. Connectivity+ ( Telecom、Network、Cloud Cluster) Global Internet & Network Type I : Int’l Carriers HGC PCCW NTT GCX Type II : Singtel Telstra Submarine Operators Type III: Int’l ICP & Cloud Service Providers Google AWS CHT FB TFN FET Azure Type Ⅳ: Domestic Carriers Multiplier effect & ISP Solve Exp
Slide 8: Value+ (Clustering Magnetic Attraction Effect)
6. Value+ ( Clustering Magnetic Attraction Effect) Customers Ecosystem (Market Place) ICP Local Operator Global Carrier Telecom Resources Network Communication ISP Resources Resources SSP Cloud Resources ISR ASP IDC Partners Chief Telecom is based on carrier neutral position to attract domestic and
Slide 9: Major Customers
7. Major Customers Domestic Carriers International Carriers Chief Solution Enterprise Customers Global Cloud Providers TPIX Members 9
Slide 10: Chief and Client Services Start Every Day of Your Life!
8. Chief and Client Services Start Every Day of Your Life! Digital Life DIGI LIFE 2.0 CLOUD COMPUTING Digital Content Network IOT e-Commerce Big Data • Music/Video • Global Network • B2B/B2B2C • Smart • Digital Marketing • Games/News • High Speed Internet • O2O/Shopping Health • Data Analysis • T
Slide 11: Imagine Future Global Trends of Digitalization
9. . Imagine Future Global Trends of Digitalization Global IDCs are connected with high speed bandwidth. AI Robots The data in the IDCs will grow explosively. 5G AI application and HPC will IoT HPC become the locomotive of Big Data the industry. Smart City Digital Life Cloud Service VR/AR 11
Slide 12: Product Introduction
CHAPTER 2 Product Introduction 12
Slide 13: Product Introduction
Product Introduction Chief Company Introduction https://youtu.be/GwYa4Bw9lnM IDC Service Data Service Cloud Service Exchange Center Voice Service ISO Information Security Quadruple Certification & DCOS-4 Certification 13
Slide 14: IDC Colocation Services – Carrier Neutral
1.1 IDC Colocation Services – Carrier Neutral World-class carrier neutral IDC to provide high quality IDC services World-class IDC SLA Customized design and deployment 7X24hrs NOC ISO & DCOS certified Complete connection for L.Y. H.D. domestic/international optical network Fiber ring a
Slide 15: Located in the Center of East Asia to Attract Global Service Providers
1.2 Located in The Center of East Asia to Attract Global Service Providers Both Google & Microsoft Already Set up Regional Data Centers in Taiwan Chief 4th IDC L.Y.2 Attract Other Global Service Providers to Set up Regional Data Service Centers at L.Y.2 15
Slide 16: Data Service – Global Internet Services
2.1 Data Service _ Global Internet Services • Complete resources of domestic bandwidth and international bandwidth • An important internet service hub in Taiwan Domestic Telecom International Carriers & Operators CT/ Submarine Cable Operators TWGate APBT CU/ CMI Global ICP/CDN HiNet HE FET Cogent TF
Slide 17: Data Service Global IPLC & VPN
2.2 Data Service Global IPLC & VPN (virtual private network) With forward-looking network deployment and complete enterprise solutions to expand global VPN services. Northern China Global VPN Network Beijing/Tianjin /Qingdao Vancouver Central China Seoul Tokyo Chongquing/Wuhan Chengdu/Hefei Eastern
Slide 18: Chief SD-WAN Solutions
2.3 Chief SD-WAN Solutions Simple and fast deployment to solve the long deployment time and the expensive cost of the leased line circuits. High security network access and control to solve the concerns of the public internet delay, packet loss and the information security issues. Subscription
Slide 19: Cloud Service – Comprehensive Solution
3.1 Cloud Service _Comprehensive Solution PaaS Application Service Customer Service Portal Enterprise Cross-cloud & Hybrid Cloud Solutions SaaS Application Cloud Exchange Service Cloud Security Platform Industrial Applications Solution Enterprise Cloud Storage • Enterprise Business • Big Data、EC • I
Slide 20: Chief Global Bare Metal Cloud Services
3.2 Chief Global Bare Metal Cloud Services Global Service Coverage Bare Metal Server 40+ Countries/60+ Cities Dedicated Hardware、High Performance、Security Guaranteed Bare Metal Flexible Pricing Options Cloud Subscription-based or Pay as You Go Cloud Services Self-Service Portal Flexible Resources、Fa
Slide 21: SaaS Application – Chief i Health
3.3 SaaS Application – Chief i Health Easy to control health status Chief i Health App Convenient collection of health data "Personal Health Information" Health Kit & Google Fit data collection management platform Wearable and measuring device data Green/Red traffic lights indication upload
Slide 22: Taipei Cable Exchange Center (TPCX)
4 .1 Taipei Cable Exchange Center (TPCX) • Private cables (NCC licensed Pacnet/Telstra, TIGC, Reach, GCX) and consortium cables are connected in Chief IDC site, most of fixed network operators all set up PoPs in Chief IDC site for submarine cable interconnection. • Chief TPCX is only one place to le
Slide 23: Taipei Internet Exchange Center (TPIX)
4.2 Taipei Internet Exchange Center (TPIX) TPIX provides internet traffic exchange service for both international and domestic customers. TPIX is a world class Internet exchange hub. Social Search CDN F G AKI Network Engine Operator Cloud E-commerce A Multimedia N M Operator International TPIX ranke
Slide 24: Chief Cloud eXchange (CCX)
4.3 Chief Cloud eXchange (CCX) Public Cloud CCX Direct Connect Private & Secure Channel Public Internet Congestion & Security Risks Enterprise Data Center 24
Slide 25: Cloud PBX & ISR Services
5. 070 Cloud PBX & ISR Services Cross-Operator/Network/Platform/Device NCC E.164 Numbers for worldwide use. Support PC 、NB、Pad、Mobil phone Support mobile、ADSL、 VPN 、 Wi-Fi Cloud IP-Centrex Management Center Provide IP-Centrex Customer web portal to manage services Chief 070 voice services and check
Slide 26: Provide total solution to satisfy Cloud + Network + Security demands
6. Provide total solution to Satisfy_ Cloud + Network+ Security Demands Chief Campus Service : from Point to Line and to Area CSPs Upstream data service providers Cloud/Security Service Providers CHIEF Campus + Internet + IEPL Industry Application Chief Digital Service Providers’ Solutions Ecosystem
Slide 27: Multi-Product to Drive Growth Curve
7. Multi-Product to Drive Growth Curve TPIX APP Cloud SaaS High speed applications internet Complete Multi-Platform, and Cross- Carrier ICT solutions border Strategic Layout Neutral - Multi-cloud/ Hybrid cloud Local data solutions storage Cloud Direct connect to Global VPN - Complete Center CCX top
Slide 28: Recent Years Finance Performance
CHAPTER 3 Recent Years Finance Performance • Revenue & Gross Margin • Net Margin & EPS • Percentage of Dividends • Product Service Revenue Percentage 12
Slide 29: Revenue & Gross Margin
1. Revenue & Gross Margin Unit: NT$K 3,500,000 50.0% 3,000,000 48.0% 2,500,000 46.0% 2,000,000 44.0% 1,500,000 42.0% 1,000,000 40.0% 500,000 0 38.0% 2019 2020 2021 2022 2023 to Q3 Revenue 2,400,002 2,564,649 2,801,046 3,080,306 2,417,880 Net Profit after Tax 545,987 610,353 686,952 837,253 670,375 G
Slide 30: Net Margin & EPS
2. Net Margin & EPS Unit: NT$ 14 30.00% 12 25.00% 10 20.00% 8 15.00% 6 10.00% 4 2 5.00% 0 0.00% 2019 2020 2021 2022 2023 to Q3 EPS 7.83 8.67 9.75 11.85 8.61 Net Margin 22.75% 23.80% 24.52% 27.18% 27.73% 69,462,131 70,245,881 70,470,131 70,744,881 77,819,370 30
Slide 31: Percentage of Dividends
3. Percentage of Dividends NT$ 12 10 10 9.3 8.8 8 8 7.5 6 4 2 0 2018 2019 2020 2021 2022 Year Note：2022dividends include 9 dollars cash dividends plus one dollar stock dividend (total 10 dollars) 31
Slide 32: Product Revenue Percentage
4. Product Revenue Percentage 100.0% 11.0% 9.8% 8.6% 7.7% 8.4% 11.2% 13.5% 15.3% 16.1% 16.1% 80.0% 60.0% 49.6% 47.6% 46.7% 45.0% 44.0% 40.0% 20.0% 28.2% 29.1% 29.4% 31.2% 31.5% 0.0% 2019 2020 2021 2022 2023 to Q3 Voice Services Cloud Services Data Services IDC Services 32
Slide 33: Chief Telecom Flywheel
5. Chief Telecom Flywheel 2024 Q1 New IDC in Service One-stop shopping for Complete and rich ecosystem, Platform and connectivity products and services, to More application scenarios, to support more provide more valuable and Successful case promotion application scenarios, competitive service Conti
Slide 34: Industrial Trends and Operational Focus
CHAPTER 4 Industrial Trends and Operational Focus 34
Slide 35: Global Cloud and IDC Market Trends
1. Global Cloud and IDC Market Trends Note1: Global cloud service market in 2022~2030 CAGR 17.43% ( Precedence Research); Amazon(34%)/Microsoft(21%)/Google(11%)/Alibaba(5%)/ IBM(3%) Top 5 CSPs account for 2/3 public cloud market ( Synergy Research Group) 。 Note 2: Global IDC service market in 2021~2
Slide 36: Business Development Focus
2.1 Business Development Focus Taiwan island-wide Chief Campus optical ring Smart Health Service Expand CCX and Cloud Partners 4thIDC(LY2) Enrich Network and Telecom Resources Domestic and Expand TPIX and International International Network Symbolic Leading Backbone Ring Customers East Asia SD-WAN &
Slide 37: L.Y.2 IDC - Digital Convergence Center
2.2 L.Y.2 IDC- Digital Convergence Center 2024 Q1 Commercial Service 16,500 sqm Floor Area 20 MW Power Capacity 10KW/Rack design Airflow spec > 150CFM/KW Floor Loading 2,000 kg/m2 LRB Seismic Isolation Design (A series magnitude 7.0 earthquakes) Green/Smart Building Design 37
Slide 38: Three Rings – Link Domestic and International Network
2.3 Three Rings _ Link Domestic and International Network China Complete Domestic and International Danshui Station Optical Networks North-east Asia Bali Stration USA Japan Europe • Taipei Ring: optical fiber network to Taipei connect 4 IDC buildings Ring Taipei Toucheng Station • Taiwan Ring: optic
Slide 39: Expand International Backbone and Cooperate with Partners in East Asia
2.4 Expand International Backbone and Cooperate with Partners in East Asia 1 The 1st carrier The 1st IXP st neutral IDC in (TPIX) in Taiwan Taiwan Korea Japan China The 1st cloud The major exchange submarine Hong Kong Thailand cable India gateway in Philippines Taiwan gateway in Cambodia Vietnam Tai
Slide 40: East Asia Digital Convergence and AI Cloud Application Center
3. East Asia Digital Convergence and AI Cloud Application Center Taiwan is located in the center of Eastern Asia region, through customer clustering magnetic attraction effect. The company vision of Chief Telecom is to become East Asia Digital Convergence & AI、Cloud Application Center . 40
Slide 41: 2F, #68, Ruiguang Rd., Nei-hu T: 886-70-1018-6688 Dist. Taipei 11491, Taiwan,
11491 台北市 2F, #68, Ruiguang Rd., Nei-hu T: 886-70-1018-6688 chief.com.tw 內湖區瑞光路 Dist. Taipei 11491, Taiwan, F: 886-2-2657-6728 68 號 2 樓 R.O.C.