Oe Solutions Co., Ltd. · KRX:138080
Oe Solutions — Q1 2020 Earnings Presentation
29 slides from Oe Solutions's earnings presentation, May 18, 2020
Slide 1: IR Presentation Q1 2020
IR Presentation Q1 2020 Q1 2020 Results & Q2 2020 Guidance May 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. Q1 2020 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Vision & Strategy 4. Q2 of 2020 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: Q1 2020 Result Review
Q1 2020 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results
Financial Results Accumulative Revenue by 2019 18.9B KRW Operating income -1.4B KRW (-7.4%) Net income 0.17B KRW(0.9%) COVID-19 Pandemic / 5G infra structure to delay Revenue Operating income Net income 220,000 60,000 30.0% 50,000 25.0% 200,000 25.0% 50,000 40,000 20.0% 180,000 20.0% 160,000 40,000
Slide 6: Financial Results
Financial Results Q1 2020 Revenue 18.9B KRW, -56.4%(YoY) -62.3%(QoQ) Operating income -1.4B KRW(-7.4%) (Unit : million KRW) Q1 19 Q1 20 % YoY Q4 19 QoQ Revenue 43,409 18,938 -56.4% 50,193 -62.3% (Sales) Gross profit 16,725 6,503 34.3% -61.1% 19,982 -67.5% Selling general Administrative 6,989 7,903 4
Slide 7: Quarterly Revenue trends
Quarterly Revenue trends 5G Investment stagnation and delay due to issues such as COVID-19 QoQ growth is expected after Q1 (Unit: 100 million KRW) 700 606 600 560 502 500 434 400 493 288 485 300 411 244 69 232 209 362 204 198 199 194 186 197 187 180 189 187 189 200 173 164 62 167 168 172 148 134 135
Slide 8: Sales details
Sales details Wireless 77% and Korean sales 55.2%, Overseas sales 44.8% FTTH/MSO Telecom 13.4% (Unit: 100 million KRW) /Datacom Q4 2019 Q1 2020 QoQ (%) 9.6% Network Network • Wireless 427.0 145.8 -65.9% • Telecom/Datacom 35.8 18.1 -49.4% Wireless • FTTH/MSO 39.2 25.5 -34.9% 77.0% Region Oversaeas •
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 5G Network Supply chain 5G Total Revenue Telecommunication Carriers US JAPAN 4% 7% KOREA 89% Network Equipment (Unit : million KRW) Region Carrier Pr
Slide 11: 5G(NR) Mobile Network Business: COVID-19 Pandemic
5G(NR) Mobile Network Business COVID-19 Pandemic Expected to increase data traffic due to spread of non face-to-face culture(Education, Work, Consumption, etc.) Data traffic in Korea (Unit: TB) Data traffic 700,000 9.4%↑ 600,000 500,000 400,000 300,000 200,000 100,000 0 4 5 6 7 8 9 0 1 2 1 2 3 .0 .0
Slide 12: 5G(NR) Coverage map in Korea
5G(NR) Coverage map in Korea (Source: KT, SKT, LG U+ Website) ‘19.08.08 ‘19.11.08 ‘20.02.19 ‘20.05.18 © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 18 May 2020 12
Slide 13: OE Solutions Vision & Strategy
OE Solutions Vision & Strategy © 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 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 15: 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 16: Vision & Strategy
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 17: Q2 of 2020 Guidance
Q2 of 20 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 18: Q2 of 2020 Guidance
Q2 of 20 Guidance Q2 QoQ Revnue is expected to Increase 34.6%, to 25.5B KRW QoQ growth is expected after Q1 Quarterly Guidance Quarterly Trends (Unit : million KRW) (Unit : million KRW) 70,000 Export Korean Q2 Q3 Q4 Q1 Q2 60,645 60,000 58,000 2019 2019 2019 2020 2020 56,036 54,000 Actual Actual Actu
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 395 (Korea: 375 / 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 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 25G/ 10G/ 6G/ 2.5G Optical cable Metro / Long Haul* Network *WAN(wide area network) 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 18 May 2020 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 18 May 2020 25
Slide 26: Condensed income statement
Condensed income statement Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2017 2018 2019 Q1 2020 2017 2018 2019 Q1 2020 Revenue 76,594 81,504 210,283 18,938 Revenue 76,535 81,406 210,242 18,938 (Sales) (Sales) Cost of sales 53,973 54,106 122,835 12,435 Cost of sales 53,914
Slide 27: Condensed statement of financial position
Condensed statement of financial position Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2017 2018 2019 Q1 2020 2017 2018 2019 Q1 2020 Current assets 57,247 57,027 137,422 128,091 Current assets 55,648 55,790 136,299 127,306 Cash and cash Cash and cash 21,923 11,073 44,259
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: