GCS Holdings, Inc. · TPEX:4991

GCS — Q2 2018 Earnings Presentation

32 slides from GCS's earnings presentation, Aug 3, 2018

  1. Slide 1: Q2 2018 Quarterly Online Investor Conference

    環宇 芯系天下 March 3, 2016 Q2 2018 Quarterly Online Investor Conference (線上法說會) Aug 3, 2018

  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) 2Q18 2Q18 2Q18 1Q18 2Q17 Over Over 1Q18 2Q17 Net Operating Revenue 522,665 479,020 458,228 9.1% 14.1% Gross Profit 256,217 214,304 248,075 19.6% 3.3% Gross Margin 49.0% 44.7% 54.1% Operating Expenses (135,480) (124,401) (107,349)

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

    Non-operating Income and Expenses- QoQ (in NT$ thousands) 2Q18 2Q18 2Q18 1Q18 2Q17 Over Over 1Q18 2Q17 Other Income 2,060 1,696 1,208 21.5% 70.5% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value - 2,322 (51,639) -100.0% -100.0% through profit or loss Net currency ex

  7. Slide 7: Statements of Comprehensive Income - YoY

    Statements of Comprehensive Income - YoY (in NT$ thousands except EPS) 2018 2017 % % Change (%) Jan to June Jan to June Net Operating Revenue 1,001,685 100.0% 869,920 100.0% 15.1% Operating Cost (531,164) -53.0% (434,533) -50.0% 22.2% Gross Profit 470,521 47.0% 435,387 50.0% 8.1% Operating Expenses

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

    Non-operating Income and Expenses- YoY (in NT$ thousands) 2018 2017 Change (%) Jan to June Jan to June Other Income 3,756 2,174 72.8% Other Gains and Losses Net Gain or (losses) on financial liabilities at fair value 2,322 7,811 -70.3% through profit or loss Net currency exchange gain or (loss) (748

  9. Slide 9: Balance Sheet Highlight & Key Indices

    Balance Sheet Highlight & Key Indices Selected Items from Balance Sheet (in NT$ thousands) 2Q18 1Q18 2Q17 Amount % Amount % Amount % Cash and Cash Equivalent 1,365,587 42% 1,215,937 40% 1,288,575 45% Accounts Receivable and Notes Receivable 256,702 8% 267,580 9% 242,033 8% Inventory 350,986 11% 331,

  10. Slide 10: Cash Flows

    Cash Flows (in NT$ thousands) 2Q18 1Q18 2Q17 Beginning Balance 1,215,937 1,119,712 1,259,062 Cash from Operating Activities 141,563 149,134 80,188 Acquisition of property, plant and equipment (43,185) (25,452) (32,301) Acquisition of investments accounted for under the equity method - - (14,906) Pro

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

    Revenue Mix % vs Gross Margin - QoQ 10

  12. Slide 12: KGD Revenue Mix - QoQ

    KGD Revenue Mix - QoQ KGD Revenue Analysis-By Application 70% 64% 59% 60% 48% 50% 47% 46% 38% 40% 36% 24% 29% 30% 13% 23% 17% 16% 20% 10% 0% Q2 Q3 a4 Qi Q2 Q3 a4 Qi Q2 2016 2016 2016 2017 2017 2017 2017 2018 2018 ™ DC/AOC = PON MLTE/Ethernet and Other 11

  13. Slide 13: Market Overview

    MARKET OVERVIEW 12

  14. Slide 14: GCS Products

    GCS Products Brand Name Opto Wafer Foundry Chip Products RF PD/MPD Power KGD APD Electronics (Known Opto Good electronics VCSEL Die) LD 13

  15. Slide 15: GCS Brand Name Products (KGD): Applications & Markets

    GCS Brand Name Products (KGD): Applications & Markets PD, MPD, APD, VCSEL, LD Consumer LTE Data & BASE PON Centers IoT STATION 40G AOC LTE FTTx 100G HDMI 4G 2.5G 200G Mobile 4.5G 10G 400G Wearable 5G 25G 14

  16. Slide 16: Wafer Foundry Business

    Wafer Foundry Business Value-added Customer Delight Wafer Foundry Services Power Opto- Consumer Electronics RF Electronics Electronics 4”/6” 4”/6” 2”/3”/4” 6” FAB FAB FAB FAB We provide Best Outfit for customers’ product! 15

  17. Slide 17: RF Foundry Products: Applications & Markets

    RF Foundry Products: Applications & Markets RF Wafer Foundry GaAs (HBT, PHEMT), InP HBT, GaN/Si、GaN/SiC HEMT BAW Filter Wireless (Mobile & Infrastructure Base Station Wifi Mobile Phones 802.11AC 4/4.5/5G 802.11AX

  18. Slide 18: Power Electronics Foundry Products: Applications & Markets

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

  19. Slide 19: Optoelectronics Foundry: Applications & Markets

    Optoelectronics Foundry: Applications & Markets Optoelectronics Wafer Foundry APD, VCSEL, FP/DFB LD, EML, 2D Image Sensors Photonic Integrated Circuits…… Optical Fiber Industrial Medical Consumer Networks VCSEL/DFB VCSEL/APD VCSEL VCSEL EML/PIC LD Imager (3D Sensing) LD 18

  20. Slide 20: Consumer Electronics Foundry: Applications & Markets

    Consumer Electronics Foundry: Applications & Markets Consumer Electronics Wafer Foundry VCSEL Consumer VCSEL (3D Sensing) LD 19

  21. Slide 21: 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

  22. Slide 22: GCS Is Ready for 5G

    GCS IS READY FOR 5G Super High High Frequency Linearity PHEMT and HBT InP HBT 6” Process Processes Wafer Fab High Frequency BAW Filters Process 21

  23. Slide 23: GCS Is Ready for 400G

    GCS IS READY FOR 400G 100G/200G in production 400G: PAM4 8x50Gbps, 4x100Gbps 25G/100G VCSEL coming soon 22

  24. Slide 24: 光網絡市場 (Optical Network Market)

    光網絡市場 光網絡市場: 電信運營商，互聯網公司以及獨立第三方運營商。 2012年以後電信運營商市場的投資已經趨於飽和， 大型互聯網 公司，尤其是谷歌，亞馬遜，蘋果，微軟等的投資持續增長。 2017年 的水平已經是幾年前的幾倍以上。從2009到2017，年均增長22.3%。 未來幾年，互聯網公司的投資總額有望達到1000億美元， 占到同期電信投資的三分之一以上。 互聯網公司自身 - 進入了一個大投資的雄心勃勃的新階段 - 傳統的數據中心內部開始到城域，長途甚至海纜系統。比如穀歌就已經在建設 自己的海纜。而且有意思的是谷歌的跨大西洋海纜著陸 點選擇了丹麥和愛爾蘭 兩個數據中心集中的地方，而不是人

  25. Slide 25: Overall Market

    Overall Market Lightcounting Forecast: - DWDM、FTTx和无线前传的Q2 2018光收发器市场销 售收入将下滑20%-30%。 - 整体光收发器市场将下滑8%，但100GbE光器件会维持增长。 - Q2 2018市场销售收入将下降至12亿美元，创下是 2015年以来的市场新低。

  26. Slide 26: Global Sales of Optical Transceivers

    Global Sales of Optical Transceivers 25

  27. Slide 27: PON Market

    PON Market 2017年全球GPON设备市场萎缩5%至98亿美元 - Asia Pacific: -9% (especially China OLT and ONU down) - EMEA and NA: 10-15%

  28. Slide 28: 數據中心 (Data Center)

    數據中心 第四次工業革命 - 數據中心:中心和驅動所在 － 數據中心的大規模建設成了推動當前通信市場的中心 － 而數據中心對光通信提出的要求是： 高帶寬， 更低功耗， 更低成本。 － 光子集成是滿足這些挑戰的最好頒發。包括 矽光集成在內，光子集成的市場已經逐步 成形，但是，市場規模， 封裝，光源的問題等等依然限制著光子集成產業的發展 27

  29. Slide 29: MDC Capex

    MDC Capex 尽管贸易战逐步升级，但前15大云服务公司在Q1 2018基础设施投资增长了102%，大部分投资用在服务器、网络设备和光学连接。 数据通信硬件销售收入在Q1 2018总体增长14%，有些提供商像Arista、Cisco(思科)、Extreme、Lenovo(联想)、 Mellanox(迈络思)和NetApp先后公布其营收新记录。 Innolight获益于100GbE光器件持续的需求，LC预计2018前三个月100GbE QSFP28光收发器出货量超过100万只。 Finisar和Lumentum报告了其WSS模块在中国印度ROADMs系统部署的强劲需求， Oclaro的100

  30. Slide 30: 400G 2018 – 5.0+M pcs

    400G 2017 - 2.9M pcs 2018 – 5.0+M pcs LightCounting认为，应用于数据中心的400GbE出货走势将重复100GbE的走势 （100GbE在博通首款32*100G Tomahawk交换芯片出样后的两年即2016年开始攀升） 2017年12月，32*400G Tomahawk ASIC开始出样，因此LightCounting预计400GbE的 批量出货将始于2019年12月，并在2020年需求大增。 GCS Confidential

  31. Slide 31: Q&A

    Qk&A 30

  32. Slide 32: For further inquiry

    環宇芯系天下 For further inquiry [email protected] 31

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