Slide 1: IR Presentation Q1 2019 Results & Q2 2019 Guidance
IR Presentation 2018 Q1 2019 Results & Q2 2019 Guidance May 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. Q1 2019 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Strategic Product 4. Q2 of 2019 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: Q1 2019 Result Review
Q1 2019 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results
Financial Results Q19 Revenue 43.4B KRW, 151.5% (YoY) Operating income 9.7B KRW (22.4%), 76% (QoQ) Increase in revenue and profitability due to increased sales of 5G(NR) products in Korea (Unit : million KRW) 구분 Q1 18 Q1 19 % YoY Q4 18 QoQ Revenue 17,255 43,409 151.5% 24,657 76.0% (Sales) Gross prof
Slide 6: Quarterly Revenue trends
Quarterly Revenue trends Korean sales expected to drive revenue growth in 2019. (Unit: 100 million KRW) 450 434 400 350 300 288 244 250 69 232 362 204 209 198 199 194 197 187 186 189 187 200 180 173 62 164 167 168 172 102 157 152 155 47 61 148 148 150 122 134 126 123 90 62 135 50 83 33 35 56 68 115
Slide 7: Sales details
Sales details Wireless accounts for 86.9% of sales and Korean sales for 83.4% of total sales Revenue from new 25Gbps products targeted at 5G applications is 56.9% of total sales FTTH/MSO Telecom 9.9% /Datacom (Unit: 100 million KRW) 3.2% Q4 2018 Q1 2019 QoQ (%) Network Network Wireless • Wireless 11
Slide 8: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 9: 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 ㆍDomestic - 5G(NR) service started in April 2019. - 5G products
Slide 10: 5G(NR) Coverage map in Domestic (As of 2019.05.10)
5G(NR) Coverage map in Domestic (As of 2019.05.10) KT SKT LG U+ ü LTE ü LTE ü LTE ü LTE-A ü LTE-A ü LTE-A ü 3Band LTE-A ü 3Band LTE-A ü 3Band LTE-A ü 5G Coverage ü 5G Coverage ü 5G Coverage (Source: KT, SKT, LG U+ Website) © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 21 M
Slide 11: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business Optical Transceivers for 5G(NR) Network deployment Domestic 5G(NR) Network architecture Operator A,B 5G Optical Distributed Network Operator C 5G Optical Distributed Network © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 21 May 2019 11
Slide 12: OE Solutions Strategic Product
OE Solutions Strategic Product © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 13: 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. Software OE Solutions/AimValley Hardware World's First
Slide 14: 10G Internet (FTTH/MSO)
10G Internet (FTTH/MSO) Domestic 10G Internet Service Turn-On 10Giga Internet Market Environment Demand of 10G Internet is expected to increase according to expansion of UHD(4K/8K) TV hardware and content as well as advanced networks. Internet service providers Domestic Market Mainly KT launched 10G
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 25G Laser Diode Chip (Unit Shipments) 25,000,000 • Mass production sc
Slide 16: Q2 of 19 Guidance
Q2 of 19 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 17: Q2 of 19 Guidance
Q2 of 19 Guidance Expected sales of 54B KRW – Growth of 189.5% (YoY), 24.4% (QoQ) Revenue Growth due to continued Korean 5G infrastructure deployments Quarterly Guidance Quarterly Trends (Unit: million KRW) (Unit: million KRW) 60,000 54,000 Domestic Q2 Q3 Q4 Q1 Q2 55,000 Export 2018 2018 2018 2019 2
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 2003. 8. 7 Number of 342 (Korea: 320 / USA: 18 / Japan: 4) Date of Listing 2014. 2. 27 (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 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 21: Vertical Integration
Vertical Integration Manufacturing Process Manufacturing Technology Chip DML (2.5G/10G) Epitaxy / Fabrication / Wafer Characterization 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/ ROSA/ BO
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 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 23: Key Application Areas
Key Application Areas © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 21 May 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 21 May 2019 24
Slide 25: Condensed income statement
Condensed income statement Consolidated financial statement Separate financial statement (Unit : million KRW) (Unit : million KRW) 2016 2017 2018 Q1 2019 2016 2017 2018 Q1 2019 Revenue 79,720 76,594 81,504 43,409 Revenue 79,590 76,535 81,406 43,409 (Sales) (Sales) Cost of sales 53,089 53,974 54,106
Slide 26: Condensed statement of financial position
Condensed statement of financial position Consolidated financial statement Separate financial statement (Unit : million KRW) (Unit : million KRW) 2016 2017 2018 Q1 2019 2016 2017 2018 Q1 2019 Current assets 52,923 57,247 57,027 68,216 Current assets 52,218 55,648 55,790 67,047 Cash and cash Cash and
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, 282, Buk-Gu, Gwangju, Korea, 500-190 Hagui-ro, Dongan-gu, Anyang-si, Gyeonggi-do, Tel: +82-62-960-5252 14056, Korea Fax: +82-62-960-5258 Tel: +8