Gcs Holdings, Inc. · TPEX:4991
Gcs — Q3 2019 Earnings Presentation
20 slides from Gcs's earnings presentation, Nov 7, 2019
Slide 1: Q3 2019 Quarterly Online Investor Conference
環宇 芯系天下 March 3, 2016 Q3 2019 Quarterly Online Investor Conference (線上法說會) Nov 7, 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) 3Q19 3Q19 3Q19 2Q19 3Q18 Over Over 2Q19 3Q18 Net Operating Revenue 466,566 465,346 514,359 0.3% -9.3% Gross Profit 197,302 239,073 247,314 -17.5% -20.2% Gross Margin 42.3% 51.4% 48.1% Operating Expenses (125,676) (129,466) (129,0
Slide 6: Revenue Mix % vs Gross Margin - QoQ
Revenue Mix % vs Gross Margin - QoQ 5
Slide 7: KGD Revenue Mix - QoQ
60% 50% 40% 30% 20% 10% 0% Q4 2017 KGD Revenue Mix - QoQ 47% Qi 2018 KGD Revenue Analysis-By Application 48% 2Q 2018 m DC/AOC 53% 3Q 4Q 1Q 2018 2018 2019 PON MLTE/Ethernet & Other Q2 2019 58% Q3 2019
Slide 8: Statements of Comprehensive Income - YoY
Statements of Comprehensive Income - YoY (in NT$ thousands except EPS) 2019 2018 % % Change (%) Jan to Sep. Jan to Sep. Net Operating Revenue 1,309,821 100.0% 1,516,044 100.0% -13.6% Operating Cost (737,386) -56.3% (798,209) -52.7% -7.6% Gross Profit 572,435 43.7% 717,835 47.3% -20.3% Operating Expe
Slide 9: Balance Sheet Highlight & Key Indices
Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 3Q19 2Q19 3Q18 Amount % Amount % Amount % Cash and Cash Equivalent 1,941,017 48% 1,771,104 45% 1,392,649 42% Accounts Receivable and Notes Receivable 265,767 7% 291,301 7% 282,434 9% Inventory 347,914 9% 368,7
Slide 10: Cash Flows
Cash Flows (in NT$ thousands) 3Q19 2Q19 3Q18 Beginning Balance 1,771,104 1,709,872 1,365,587 Cash from Operating Activities 181,651 89,146 131,052 Acquisition of property, plant and equipment (10,216) (28,682) (48,089) Acquisition of Subsidiaries - - (2,442) Acquisition of intangible assets (13) (3,
Slide 11: Non-operating Income and Expenses - QoQ
Non-operating Income and Expenses- QoQ (in NT$ thousands) 3Q19 3Q19 3Q19 2Q19 3Q18 Over Over 2Q19 3Q18 Other Income 7,184 7,103 1,173 1.1% 512.4% Other Gains and Losses Gain (loss) on disposal of property, plant & equipment (2) (637) - -99.7% - Net currency exchange gain or (loss) 483 757 290 -36.2%
Slide 12: Non-operating Income and Expenses - YoY
Non-operating Income and Expenses- YoY (in NT$ thousands) 2019 2018 Change (%) Jan to Sep. Jan to Sep. Other Income 19,491 4,929 295.4% Other Gains and Losses Gain (loss) on disposal of property, plant & equipment (639) - - Net Gain or (losses) on financial liabilities at fair value - 2,322 -100.0%
Slide 13: Market Overview
MARKET OVERVIEW 12
Slide 14: 5G Networks Update
5G Networks Update Nov 1 – China’s 5G Networks go Live! 三大運營商正式上線5G商用套餐 Users of China Mobile can enjoy 5G services in 50 cities in China, including four first-tier cities and many second and third-tier cities including Nanjing in East China's Jiangsu Province and Chengdu in Southwest China's Sich
Slide 15: Global Optical Transceiver Market Forecast
Global Optical Transceiver Market Forecast Source: Lightcounting 14
Slide 16: Key Drivers
Key Drivers - Deployment of 5G networks - 2x200GbE and 400GbE - Price reduction back to 15-20%/year (35% price reduction in 2018) 15
Slide 17: Global Optical Transceiver Market - 1
Global Optical Transceiver Market - 1 ★ Gross margin continues eroding ★ Technical breakthrough becomes core trend - 400G starts production at GCS - 800G coming (GCS part) ★ Turing point coming for further growth ★ Consolidation of Global optical transceiver suppliers - Lumentum/Oclaro (2018), (II-V
Slide 18: Global Optical Transceiver Market - 2
Global Optical Transceiver Market - 2 CAGR = 9% Global Optical Transceiver Market: USD$15B by 2024 (Lightcounting) 17
Slide 19: Q&A
Qk&A 18
Slide 20: For further inquiry
環宇芯系天下 For further inquiry investors@gcsincorp.com 19