Slide 1: IR Presentation 2018 Results & Q1 of 2019 Guidance
IR Presentation 2018 2018 Results & Q1 of 2019 Guidance February 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. 2018 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Strategic Product 4. Q1 of 2019 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: 2018 Result Review
2018 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results
Financial Results 2018 Revenue 81.5 billion won YoY 6.4% ↑, QoQ 17.8% ↑ Increase in sales and profitability due to increased Smart Transceiver and sales of 5G(NR) products in domestic(Q4) (Unit : million KRW) 구분 2017 2018 YoY Q3 2018 Q4 2018 QoQ Revenue 76,594 81,504 6.4% 20,939 24,657 17.8% (Sales)
Slide 6: Quarterly Revenue trends
Quarterly Revenue trends Overseas exports have driven sales growth over the past decade Expected increase in domestic sales ratio from Q4 of 2018 to 2022 due to investment in 5G Mobile network infrastructure (Unit: 100 million KRW) 300 288 244 250 69 232 204 209 198 199 194 197 200 187 186 189 62 18
Slide 7: Sales details
Sales details Smart Transceiver YoY 129.7% ↑ Domestic 5G(NR) Target 10Gbps YoY 19.8% ↑ FTTH/MSO (Unit: 100 million KRW) 30.3% Wireless 2017 2018 YoY (%) Network 47.8% Network • Wireless 391.7 389.5 -0.6% Telecom /Datacom • Telecom/Datacom 145.6 177.6 22.0% 21.8% • FTTH/MSO 228 247 8.3% Region Domest
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 building domestic 5G infrastructure in 2019 Expected to expand market in 2H with overseas (Japan, North America) 5G infra 5G Mobile Network Market Environment and Business Outlook ㆍDomestic - 5G Infrastructure is under construction with commercial
Slide 10: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business 2018 2019 2020 2021 3.5GHz 28GHz Near 28GHz Over 28GHz KT KT KT KT KOREA SKT SKT SKT SKT LG U+ LG U+ LG U+ LG U+ DoCoMo DoCoMo DoCoMo KDDI KDDI KDDI JAPAN Softbank Softbank Softbank Verizon Verizon Verizon AT&T AT&T AT&T USA Sprint Sprint Sprint © OE Solutions Co., Ltd
Slide 11: 5G(NR) Mobile Network Business
5G(NR) Mobile Network Business Optical Transceiver required 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 26 February 20
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 Introduce Smart Transceiver ? The Network system features the transceiver to enable network migration at low cost and high efficiency. OE Solutions/AimValley Hardware Software World's Firs
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 and contents and advanced network. Domestic Market Internet service providers Mainly KT launched 10G Internet servic
Slide 15: LD Chip & Strategic Transceivers
LD Chip & Strategic Transceivers Expect 5G Infra investment to increase demand for 25Gbps optics and 25G LD Chip Wireless Fronthaul Optics Forecast LD Chip 25G Laser Diode Chip (Unit Shipments) 25,000,000 • Mass production scheduled for the second half of the year ≥25Gbps CAGR 111% Reliability Test
Slide 16: Q1 of 19 Guidance
Q1 of 19 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 17: Q1 of 19 Guidance
Q1 of 19 Guidance YoY 143.4% ↑, QoQ 70.3% ↑ Expected sales of 42 billion won Revenue Growth due to building domestic 5G infrastructure in 2019 Quarterly Guidance Quarterly Trends (Unit: million KRW) (Unit: million KRW) 45,000 Domestic 42,000 Q1 Q2 Q3 Q4 Q1 40,000 Export 2018 2018 2018 2018 2019 Actu
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 q Leading supplier of optical components since 2003 q Founded by a team of Bell Labs and Samsung veterans q Traded on KOSDAQ since 2014 q Key supplier to t
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: Products Application
Products Application The use of Transceiver in the Network Transceiver required for Network connection Transceiver’s Access Network Role Optical cable 25G/ 10G/ 6G/ 3G Metro / Long Haul* Network *WAN(wide area network)등 40km이상 network Optic signal Wireless 10G/ 2.5G/ 1.25G Datacenter 100G/ 40G/ 25G/
Slide 23: Global Marketing channel
Global Marketing channel Sales growth requires long-term product reliability, quality, customer response, etc. © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 26 February 2019 23
Slide 24: Condensed income statement
Condensed income statement Consolidated financial statement Separate financial statement (Unit : million KRW) (Unit : million KRW) 2015 2016 2017 2018 2015 2016 2017 2018 Revenue 59,416 79,720 76,594 81,504 Revenue 59,341 79,590 76,535 81,406 (Sales) (Sales) Cost of sales 39,686 53,089 53,974 54,106
Slide 25: Condensed statement of financial position
Condensed statement of financial position Consolidated financial statement Separate financial statement (Unit : million KRW) (Unit : million KRW) 2015 2016 2017 2018 2015 2016 2017 2018 Current assets 41,530 52,923 57,247 57,027 Current assets 40,860 52,218 55,648 55,790 Cash and cash Cash and cash
Slide 26: Thank you.
Thank you. © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 27: 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