Slide 1: IR Presentation 2019 Results & Q1 2020 Guidance
IR Presentation 2019 2019 Results & Q1 2020 Guidance February 2020 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. 2019 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Vision & Strategy 4. Q1 of 2020 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: 2019 Result Review
2019 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results
Financial Results Accumulative Revenue by 2019 210.3B KRW Operating income 58.3B KRW (27.7%) Net income 45.9B KRW(21.8%) Revenue Operating income Net income 240,000 70,000 30.0% 50,000 25.0% 60,000 25.0% 200,000 40,000 20.0% 50,000 20.0% 160,000 30,000 15.0% 40,000 15.0% 120,000 30,000 20,000 10.0%
Slide 6: Financial Results
Financial Results 2019 Revenue 210.3B KRW, 158% (YoY), Operating income 58.3B KRW(27.7%) Q4 50.2B KRW, -17.2% QoQ, Operating income 12.1B KRW(24.1%) Increase in revenue and profitability due to increase of 5G(NR) products in Korea (Unit : million KRW) 2018 2019 % YoY Q3 19 Q4 19 QoQ Revenue 81,504 2
Slide 7: Quarterly Revenue trends
Quarterly Revenue trends Growth by expanding investment in Korea 5G(NR) infrastructure in 2019 In 2020, Korea(domestic) and overseas 5G(NR) sales are expected to drive overall top-line growth (Unit: 100 million KRW) 606 600 560 502 500 434 400 493 288 485 300 411 244 69 232 362 204 198 199 194 186 1
Slide 8: Sales details
Sales details Wireless 87.5% and Korean sales 83.3% Increased sales of 5G network providers in the US and Japan are positive signs FTTH/MSO Telecom 7.9% (Unit: 100 million KRW) /Datacom 4.6% 2018 2019 YoY (%) Network Network • Wireless 389.5 1,840 372.6% • Telecom/Datacom 177.6 96.2 -45.8% Wireless
Slide 9: Financial results
Financial results Q3 19 Revenue 60.6B KRW, 189.6% (YoY), 8.2%(QoQ) Operating income 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 19 QoQ Revenue 20,939 60,645 189.6% 56,036 8.2% (Sales) Gross pr
Slide 10: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 11: 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 5G Network Supply chain 5G Total Revenue Telecommunication Carriers US JAPAN 4% 7% KOREA 89% Network Equipment (Unit : million KRW) Region Carrier Pr
Slide 12: Market Environment and Business Outlook
5G(NR) Mobile Network Business Market Environment and Business Outlook § T-Mobile ↔ Sprint merger approved → Expect to accelerate US 5G investment § Apple 5G mobile phone is expected to be release in 2H § Qualcomm 5G modem chip launch (X60) § Expect to expand the use of 25Gbs Transceiver in Korea an
Slide 13: 5G(NR) Coverage map in Korea
5G(NR) Coverage map in Korea (Source: KT, SKT, LG U+ Website) ‘19.05.10 ‘19.08.08 ‘19.11.08 ‘20.02.19 © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 6 March 2020 13
Slide 14: 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 15: OE Solutions Vision & Strategy
OE Solutions Vision & Strategy © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 16: Unique Products-Smart Transceivers
Unique Products-Smart Transceivers World’s First Leading Technology Smart Transceiver Smart Transceiver Product Features Smart Transceiver The Network system features in the transceiver enable network migration at low cost and high efficiency. OE Solutions/AimValley World's First Leading Technology
Slide 17: Vision & Strategy
Vision & Strategy Business expand As-is To be Optical Component Transceiver § Mass production scheduled for the 2020 § Global 5G Transceiver All line-up § 10G/25G/100G will start using in-house laser chip § Transceiver profitability and competitive § Component sales for China 5G and data center adva
Slide 18: Vision & Strategy: Edge Emitting Lasers
Vision & Strategy Target the Optical Communication market through Edge Emitting Lasers technology EEL technology has potential to expand into many businesses *EEL Market *EEL : Edge Emitting Lasers OES Target CAGR +13% Source : Yole Developpement, April 2019 © OE Solutions Co., Ltd. All rights reser
Slide 19: Q1 of 2020 Guidance
Q1 of 20 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 20: Q1 of 2020 Guidance
Q1 of 20 Guidance Q1 YoY Revnue is expected to decrease -53.9%, to 20B KRW A temporary decrease in Korea 5G infrastructure investment QoQ growth is expected after Q1 Quarterly Guidance Quarterly Trends (Unit : million KRW) (Unit : million KRW) 58,000 60,645 60,000 56,036 54,000 Q1 Q2 Q3 Q4 Q1 50,000
Slide 21: Appendix
Appendix - Company Introduction - Financials © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 22: About OE Solutions
About OE Solutions Overview Name OE Solutions, Co., Ltd Date of Established Aug.7, 2003 Number of 405명 (Korea: 385 / USA: 18 / Japan: 2) Date of Listing Feb.27, 2014(KOSDAQ code : 138080) Employees Product Optical Transceiver Homepage www.oesolutions.com Locations Head Quarter : Gwangju, South Korea
Slide 23: 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 24: 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 25: 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) 40km이상 network Optic signal Wireless 10G/ 2.5G/ 1.25G Datacenter
Slide 26: Key Application Areas
Key Application Areas © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 6 March 2020 26
Slide 27: 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 6 March 2020 27
Slide 28: Condensed income statement
Condensed income statement Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2016 2017 2018 2019 2016 2017 2018 2019 Revenue 81,504 210,283 Revenue 81,406 210,242 79,720 76,594 79,590 76,535 (Sales) (Sales) Cost of sales 53,089 53,974 54,106 122,835 Cost of sales 52,965 53,91
Slide 29: Condensed statement of financial position
Condensed statement of financial position Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2016 2017 2018 2019 2016 2017 2018 2019 Current assets 52,923 57,247 57,027 137,422 Current assets 52,218 55,648 55,790 136,299 Cash and cash Cash and cash 9,270 21,923 11,073 44,259 8
Slide 30: Thank you.
Thank you. © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 31: 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: