Oe Solutions Co., Ltd. · KRX:138080
Oe Solutions — Q3 2021 Earnings Presentation
29 slides from Oe Solutions's earnings presentation, November 2021
Slide 1: IR Presentation Q3 2021
IR Presentation Q3 2021 Q3 2021 Results & Q4 2021 Guidance November 2021 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. Q3 2021 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Vision & Strategy 4. Q4 of 2021 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: Q3 2021 Result Review
Q3 2021 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results: Q3 2021 Revenue 22.2B KRW, Operating income 1.5B KRW
Financial Results Q3 2021 Revenue 22.2B KRW , Operating income 1.5B KRW(6.7%), Net income 2.5B KRW(11.2%) Revenue Operating income Net income 70,000 30.0% 50,000 25.0% 200,000 60,000 25.0% 45,000 40,000 20.0% 50,000 20.0% 150,000 35,000 40,000 15.0% 30,000 15.0% 30,000 10.0% 25,000 100,000 20,000 5.
Slide 6: Financial Results Q3 2021 Revenue 22.2B KRW
Financial Results Q3 2021 Revenue 22.2B KRW QoQ -33.6%, YoY -26.4% (Unit : million KRW) Q2 21 Q3 21 % QoQ Q3 20 YoY Revenue 33,397 22,193 -33.6% 30,157 -26.4% (Sales) Gross profit 14,018 8,850 39.9% -36.9% 13,351 -33.7% Selling general Administrative 9,648 7,332 33.0% -24.0% 8,314 -11.8% expenses Op
Slide 7: Quarterly Revenue trends
Quarterly Revenue trends Global 5G investment Expected in 2022 (Unit: 100 million KRW) 700 606 600 560 502 500 434 400 493 334 288 485 294 301 300 411 244 247 69 232 209 362 230 222 204 198 199 194 186 197 187 180 189 187 189 162 184 251 200 62 173 164 102 167 168 172 148 134 157 152 148 155 61 47 1
Slide 8: Sales details
Sales details Etc. FTTH/MSO 1.5% 8.1% (Unit: 100 million KRW) Telecom 2Q 2020 3Q 2021 QoQ (%) /Datacom 4.5% Network Network • Wireless 277.8 190.7 -45.7% Wireless • Telecom/Datacom 8.3 9.9 16.2% 85.9% • FTTH/MSO 44.2 17.9 -146.9% • etc. 3.9 3.4 -14.7% Region Overseas • Korean 251.2 159.7 -36.4% 28%
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 5G Network Supply chain Global 5G Revenue Forecast Global(US, Japan, etc.) 5G sales growth is expected to decrease in the second half of the year Telecommunication Carriers (Unit: 100 million KRW) Global 5G Revenue outlook 20,000 15,000 10,000 5,000 0 Q1 2020 Q2 2020 Q
Slide 11: 5G(NR) Mobile Network Business: 5G Market Forecast
5G(NR) Mobile Network Business 5G Market Forecast 5G Infra equipment investment outlook Global 5G subscribers outlook - 5-year average (10,000 People) 158,173 160,000 140,000 Etc. 119,834 120,000 47 41 100,000 86,265 (Trillion KRW) 7 6 4 80,000 5 50 54,982 41 40 60,000 19 30 40,000 27,373 20 20,000
Slide 12: 5G(NR) Mobile Network Business: Data traffic
5G(NR) Mobile Network Business Data traffic (Unit: TB) Korea Mobile Data traffic Global Mobile data traffic outlook 800,000 600,000 400,000 200,000 0 4G LTE 5G Total (Source: Ministry of Science and ICT) (Source: Ericsson) © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 24 N
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: Transceiver Market Forecast
Vision & Strategy Demand for Transceivers continues to increase due to infrastructure investments that require data connectivity Transceiver Market Forecast $12,000 Sales ($M) FTTx $10,000 CAGR: 10% Wireless 2019~2025 Backhaul $8,000 Wireless Fronthaul $6,000 CWDM / DWDM Optical $4,000 Interconnec t
Slide 17: Vision & Strategy for OES's Semiconductor Laser Diode Chip
Vision & Strategy for OES’s Semiconductor Laser Diode Chip 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
Slide 18: Q4 of 21 Guidance
Q4 of 21 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 19: Q4 of 21 Guidance
Q4 of 21 Guidance Q4 Revenue is expected to 21.4B KRW YoY -13.4%, QoQ -3.6% Quarterly Guidance Quarterly Trends (Unit : million KRW) (Unit : million KRW) 40,000 Q4 Q1 Q2 Q3 Q4 33,397 2020 2021 2021 2021 2021 31,500 Actual Actual Actual Actual Guidance 29,255 30,000 24,706 25,000 23,068 22,193 22,000
Slide 20: Appendix
Appendix - Company Introduction - Financials © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 21: About OE Solutions
About OE Solutions Overview Name OE Solutions, Co., Ltd Date of Established Aug.7, 2003 Number of Employees 433 (Korea: 411 / USA: 18 / Japan: 4) Date of Listing Feb.27, 2014(KOSDAQ code : 138080) Product Optical Transceiver Homepage www.oesolutions.com Locations Head Quarter : Gwangju, South Korea
Slide 22: 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 Design Manufacturing Delivery Leading supplier of optical components since 2003 Founded by a team of Bell Labs and Samsung vet
Slide 23: 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 24: 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 25: Key Application Areas
Key Application Areas © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 24 November 2021 25
Slide 26: Condensed income statement
Condensed income statement Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2021 2021 2018 2019 2020 2018 2019 2020 1Q 2Q Q3 1Q 2Q Q3 Revenue Revenue 81,406 210,242 103,172 23,039 33,423 22,193 81,504 210,283 103,178 23,068 33,397 22,193 (Sales) (Sales) Cost of sales 54,117
Slide 27: Condensed statement of financial position
Condensed statement of financial position Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2021 2021 2018 2019 2020 2018 2019 2020 Q1 Q2 Q3 Q1 Q2 Q3 Current assets 57,027 137,422 129,808 129,878 118,317 113,275 Current assets 55,790 136,299 127,504 127,904 116,319 111,222 Ca
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: