Slide 1: IR Presentation Q2 2019
IR Presentation Q2 2019 Q2 2019 Results & Q3 2019 Guidance August 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. Q2 2019 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Strategic Product 4. Q3 of 2019 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: Q2 2019 Result Review
Q2 2019 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial results
Financial results Q2 19 Revenue 56.0B KRW, 200.4% (YoY), 29.1%(QoQ) Operating income 15.6B KRW (29.5%) Increase in revenue and profitability due to increased sales of 5G(NR) products in Korea (Unit : million KRW) Q2 18 Q2 19 % YoY Q1 19 QoQ Revenue 18,653 56,036 200.4% 43,409 29.1% (Sales) Gross pro
Slide 6: Financial results_Graph
Financial results_Graph 1H19 Revenue 99.4B KRW Operating income 26.3B KRW(26.4%), Net income 20.9B KRW(21.0%) Revenue Operateing income Net income 100,000 20,000 35.0% 12,000 25.0% 30.0% 10,000 80,000 20.0% 15,000 25.0% 8,000 15.0% 60,000 20.0% 6,000 10,000 15.0% 4,000 10.0% 40,000 5,000 10.0% 2,000
Slide 7: Quarterly Revenue trends
Quarterly Revenue trends Korean sales expected to drive revenue growth in 2019. (Unit: 100 million KRW) 600 560 500 434 400 288 485 300 244 69 232 362 204 209 198 199 194 197 187 186 189 187 200 180 173 164 62 167 168 172 102 157 152 155 47 61 148 148 134 126 135 122 123 90 62 121 20 50 50 30 83 33
Slide 8: Sales details
Sales details Wireless accounts for 90% of sales and Korean sales for 86.7% of total sales Revenue from new 25Gbps products targeted at 5G applications is 35.4% of total sales FTTH/MSO Telecom 6.3% /Datacom (Unit: 100 million KRW) 3.7% Q1 2019 Q2 2019 QoQ (%) Network Network • Wireless 377.1 504.1 3
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) 5G(NR) Mobile Network Market Environment and Business Outlook ㆍKorean - 5G products Q2 2019 sales of 43.5B KRW(78%), 1H 2019 s
Slide 11: 5G(NR) Coverage map in Korea
5G(NR) Coverage map in Korea (Source: KT, SKT, LG U+ Website) LTE LTE-A 3Band LTE-A As of May 10, 2019 As of Aug.8, 2019 KT SKT LGU+ © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 14 August 2019 11
Slide 12: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business Optical Transceivers for 5G(NR) Network deployment 5G(NR) Network architecture in Korea Operator A,B 5G Optical Distributed Network Operator C 5G Optical Distributed Network © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 14 August 2019 12
Slide 13: OE Solutions Strategic Product
OE Solutions Strategic Product © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 14: 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 15: 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 30,000,000 • Mass production sc
Slide 16: Q3 of 2019 Guidance
Q2 of 19 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 17: Q3 2019 Guidance
Q2 of 19 Guidance Expected sales of 58B KRW – Growth of 177% (YoY), 3.6% (QoQ) Revenue Growth due to continued Korean 5G infrastructure deployments Quarterly Guidance Quarterly Trends (Unit: million KRW) (Unit: million KRW) 58,000 60,000 56,036 Q3 Q4 Q1 Q2 Q3 Korean 54,000 2018 2018 2019 2019 2019 E
Slide 18: Appendix
Appendix - Company Introduction - Financials © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 19: About OE Solutions
About OE Solutions Overview Name OE Solutions, Co., Ltd Date of Established Aug.7, 2003 Number of 495 (Korea: 474 / 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 20: 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 In-house Global Delivery Design Manufacturing Leading supplier of optical components since 2003 Founded by a team of Bell Labs and Samsung vet
Slide 21: 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 22: Transceiver Products Applications
Transceiver Products Applications The use of Transceiver in the Network Transceiver required for network connections Transceiver’s Access Network Role 25G/ 10G/ 6G/ 2.5G Optical cable Metro / Long Haul* Network *WAN(wide area network)등 40km이상 network Optic signal Wireless 10G/ 2.5G/ 1.25G Datacenter
Slide 23: Key Application Areas
Key Application Areas © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 14 August 2019 23
Slide 24: 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 14 August 2019 24
Slide 25: Condensed income statement
Condensed income statement Consolidated financial statement Separate financial statement (Unit : million KRW) (Unit : million KRW) 2019 2019 2016 2017 2018 2016 2017 2018 1Q 2Q 1Q 2Q Revenue 79,720 76,594 81,504 43,409 56,036 Revenue 79,590 76,535 81,406 43,409 56,006 (Sales) (Sales) Cost of sales 5
Slide 26: Condensed statement of financial position
Condensed statement of financial position Consolidated financial statement Separate financial statement (Unit : million KRW) (Unit : million KRW) 2019 2019 2016 2017 2018 2016 2017 2018 1Q 2Q 1Q 2Q Current assets 52,923 57,247 57,027 68,216 84,831 Current assets 52,218 55,648 55,790 67,047 83,900 Ca
Slide 27: Thank you.
Thank you. © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 28: 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, Buk-Gu, Gwangju, Korea, 500-190 282, Hagui-ro, Dongan-gu, Anyang-si, Gyeonggi- Tel: +82-62-960-5252 do, 14056, Korea Fax: +82-62-960-5258 Tel: +