Oe Solutions Co., Ltd. · KRX:138080
Oe Solutions — Q3 2019 Earnings Presentation
29 slides from Oe Solutions's earnings presentation, November 2019
Slide 1: IR Presentation Q3 2019
IR Presentation Q3 2019 Q3 2019 Results & Q4 2019 Guidance November 2019 OE Solutions IR © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 2: Disclaimer
Disclaimer This material has been prepared by OE Solutions, Co., Ltd for the purpose of providing information to investors and is prohibited from taking, copying or redistributing to others. Please note that the access or receipt of this material will be regarded as consent for compliance with these
Slide 3: Table of Contents
Table of Contents 1. Q3 2019 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Strategic Product 4. Q4 of 2019 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: Q3 2019 Result Review
Q3 2019 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial results
Financial results YoY 3Q Revenue achieved 189.6%, and QoQ Revenue achieved 60.6B KRW raised by 8.2% compared to 2Q. Operating profit also achieved 19.9B KRW (32.9%). Increase in revenue and profitability due to increased sales of 5G(NR) products in Korea (Unit : million KRW) 구분 Q3 18 Q3 19 % YoY Q2
Slide 6: Financial Results_Graph
Financial Results_Graph Accumulative Revenue by 3Q 160.0B KRW Operating income 46.2B KRW(28.9%) Net income 36.5B KRW(22.8%) Revenue Operating income Net income 200,000 25,000 35.0% 20,000 30.0% 30.0% 20,000 25.0% 160,000 15,000 25.0% 15,000 20.0% 20.0% 120,000 10,000 15.0% 10,000 15.0% 80,000 10.0%
Slide 7: Quarterly Revenue trends
Quarterly Revenue trends Growth by expanding investment in Korea 5G infrastructure in 2019 In 2020, Korea (domestic) and overseas 5G sales are expected to drive overall top-line growth. (Unit: 100 million KRW) 700 606 600 560 500 434 400 493 288 485 300 244 69 232 362 204 198 199 194 186 197 209 187
Slide 8: Sales details
Sales details Wireless product revenue from Korea (domestic) 5G-related investments accounted for 87.7% of total sales, of which 81.3% accounted for domestic sales. Overseas sales also began to turn around to 113.4B KRW, up 52.2% QoQ. FTTH/MSO Telecom 8.0% /Datacom 4.3% (Unit: 100 million KRW) Q2 20
Slide 9: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 10: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business Revenue Growth due to Korean buildout of 5G infrastructure in 2019 Expected to be followed by growth in overseas market (North America, Japan,China) 5G Network Supply chain Market Environment and Business Outlook Telecommunication Carriers Globall (Unit: 100 million do
Slide 11: 5G(NR) Coverage map in Korea
5G(NR) Coverage map in Korea (Source: KT, SKT, LG U+ Website) ü LTE ü LTE-A ü 3Band LTE-A ‘19.05.10 ‘19.08.08 ‘19.11.08 © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 2 December 2019 11
Slide 12: Optical Transceivers for 5G(NR) Network deployment
5G(NR) Mobile Network Business Optical Transceivers for 5G(NR) Network deployment 5G Network architecture Operator A,B 5G Optical Distributed Network Operator C 5G Optical Distributed Network © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 2 December 2019 12
Slide 13: 5G Network Fronthaul/Midhaul/Backhaul Transceiver Line-up
5G(NR) Mobile Network Business 5G Network Fronthaul/Midhaul/Backhaul Transceiver All Line up Midhaul Target New product 50Gbps PAM4 Transceiver 5G Network architecture Fronthaul Midhaul Backhaul (DU RU) (CU DU) (CU Core) Mass Product New Product Development 100G/200G/400G 10G/25G Transceiver 50G PAM
Slide 14: OE Solutions Strategic Product
OE Solutions Strategic Product © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 15: Unique Products-Smart Transceivers
Unique Products-Smart Transceivers World’s First Leading Technology Smart Transceiver Smart Transceiver Product Features Smart Transceivers The Network system features in the transceiver enable network migration at low cost and high efficiency. OE Solutions/AimValley Hardware Software World's First
Slide 16: LD Chip & Strategic Transceivers
LD Chip & Strategic Transceivers 5G deployments expected to increase demand for 25G laser chips and transceivers Chip production is mid- to long-term strategy for supplier differentiation Wireless Fronthaul Optics Forecast LD Chip (Unit Shipments) 25G Laser Diode Chip 30,0 00,000 25Gbps Transceiver
Slide 17: Q4 of 2019 Guidance
Q4 of 19 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 18: Q4 of 19 Guidance
Q4 of 19 Guidance 4Q YoY Revenue is expected to rise 117.4%, to 50B KRW. A temporary decrease in domestic 5G infrastructure investment In 2020, domestic and overseas 5G market is expected to be activated. Quarterly Guidance Quarterly Trends (Unit: million KRW) (Unit: million KRW) 60,000 58,000 60,64
Slide 19: Appendix
Appendix - Company Introduction - Financials © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 20: About OE Solutions
About OE Solutions Overview Name OE Solutions, Co., Ltd Date of Established Aug.7, 2003 Number of 451 (Korea: 430 / USA: 18 / Japan: 3) Date of Listing Feb.27, 2014(KOSDAQ code : 138080) Employees Product Optical Transceiver Homepage www.oesolutions.com Locations Head Quarter : Gwangju, South Korea
Slide 21: OE Solutions – A Global Supplier of Transceivers
OE Solutions – A Global Supplier of Transceivers Leading Supplier of High-Reliability Optical Components for Challenging Deployment Environments In-house Design In-house Global Delivery Manufacturing q Leading supplier of optical components since 2003 q Founded by a team of Bell Labs and Samsung vet
Slide 22: Vertical Integration
Vertical Integration Manufacturing Process Manufacturing Technology Laser Diode Chip Epitaxy / Fabrication / Wafer Characterization Photo Diode TO/ XMD Die Bonding, Wire Bonding, Seam Sealing, Assembly (Cooled/ Uncooled) Burn-in, DC/AC Test OSA Package Laser welding, Epoxy bonding, DC/AC Test (TOSA/
Slide 23: Transceiver Products Applications
Transceiver Products Applications The use of Transceiver in the Network Transceiver required for network connections Transceiver’s Access Network Role Optical cable 25G/ 10G/ 6G/ 2.5G Metro / Long Haul* Network *WAN(wide area network)등 40km이상 network Optic signal Wireless 10G/ 2.5G/ 1.25G Datacenter
Slide 24: Key Application Areas
Key Application Areas © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 2 December 2019 24
Slide 25: Supplier to The World's Leading Network Equipment Manufacturers
Supplier to The World’s Leading Network Equipment Manufacturers Sales growth requires long-term product reliability, quality, customer response, etc. © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 2 December 2019 25
Slide 26: Condensed income statement
Condensed income statement Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2019 2019 2016 2017 2018 2016 2017 2018 Q1 Q2 Q3 Q1 Q2 Q3 Revenue 81,504 43,409 56,036 Revenue 81,406 43,409 79,720 76,594 60,645 79,590 76,535 56,006 60,620 (Sales) (Sales) Cost of sales 53,089 53,9
Slide 27: Condensed statement of financial position
Condensed statement of financial position Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2019 2019 2016 2017 2018 2016 2017 2018 Q1 Q2 Q3 Q1 Q2 Q3 Current assets 52,923 57,247 57,027 68,216 84,831 99,909 Current assets 52,218 55,648 55,790 67,047 83,900 99,027 Cash and cas
Slide 28: Thank you.
Thank you. © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 29: Contact Us
Contact Us OE Solutions OE Solutions Korea Headquarters Seoul (Anyang) Office 53, Cheomdanyeonsin-ro 30beon-gil, Unit B-#1619, Geumgang Penterium IT Tower, 282, Hagui-ro, Buk-Gu, Gwangju, 61080, Korea Dongan-gu, Anyang-si, Gyeonggi-do, 14056, Korea Tel: +82 (62) 960-5252 Tel: +82 (31) 450-2800 Fax: