Slide 1: IR Presentation: 2020 Results & Q1 2021 Guidance
IR Presentation 2020 2020 Results & Q1 2021 Guidance February 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. 2020 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Vision & Strategy 4. Q1 of 2021 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: 2020 Result Review
2020 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results
Financial Results 2020 Revenue 1,03.2B KRW , Operating income 7.4B KRW(7%), Net income 8.2B KRW(8%) Revenue Operating income Net income 50 ,0 00 25 .0 % 60 ,0 00 30 .0 % 20 0,000 50 ,0 00 25 .0 % 40 ,0 00 20 .0 % 15 0,000 40 ,0 00 20 .0 % 30 ,0 00 15 .0 % 30 ,0 00 15 .0 % 20 ,0 00 10 .0 % 10 0,000 2
Slide 6: Financial Results
Financial Results 2020 Revenue 1,03.2억B KRW Operating income 7.4B KRW 5G investment stagnation and delay due to issues such as COVID-19 (Unit : million KRW) 2019 2020 % YoY Q3 20 Q4 20 QoQ Revenue 210,283 103,178 -50.9% 30,157 24,706 -18.1% (Sales) Gross profit 87,448 40,492 39.2% -53.7% 13,351 8,00
Slide 7: Quarterly Revenue trends
Quarterly Revenue trends Overseas 5G investment Expected in 2021 700 (Unit: 100 million KRW) 606 600 560 502 500 434 400 493 288 485 294 301 300 411 244 247 69 232 362 204 198 199 194 209 187 186 189 197 187 189 162 184 200 180 173 164 62 157 167 168 172 102 148 152 148 155 47 61 122 134 126 123 62
Slide 8: Sales details
Sales details Overseas FTTH/MSO sales have a positive effect on 2020 Revune Wireless 66.2%, Korean 60.4% Etc. 0.9 % FTTH/MSO (Unit: 100 million KRW) 25.5% 구분 2019 2020 YoY (%) Network Wireless Network 69.2% Telecom • Wireless 1,840 713.7 -61.2% /Datacom 4.4% • Telecom/Datacom 96.2 45.6 -52.6% • FTTH
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 increase further in the second half of the year Telecommunication Carriers (Unit: 100 million KRW) Global 5G revenue outlook 5,000 0 Q1 2020 Q2 2020 Q3 2020 Q4 202
Slide 11: 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 47 100,000 41 86,265 (Trillion KRW) 7 6 4 5 50 80,000 60,000 54,982 40 41 19 30 40,000 27,373 20 20,000
Slide 12: 국내외 5G 무선통신 Business 전망
국내외 5G 무선통신 Business 전망 COVID-19 Pandemic Expected to increase data traffic due to spread of non face-to-face culture (Education, Business, Consumption etc.) Data traffic in Korea (TB) Data traffic 80 0,000 70 0,000 60 0,000 50 0,000 40 0,000 30 0,000 20 0,000 10 0,000 0 '19 4 '19 5 '19 6 '19 7 '19
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) FT Tx $10,000 CAGR: 10% Wireless 2019~2025 Backhaul $8,000 Wireless Fronthaul $6,000 CWDM / DWDM Optical $4,000 Interconnec
Slide 17: 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 18: Q1 of 21 Guidance
Q1 of 21 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 19: Q1 of 21 Guidance
Q1 of 21 Guidance Q1 Revenue is expected to 25B KRW YoY 32% ↑, QoQ 1.2% ↑ Quarterly Guidance Quarterly Trends (Unit : million KRW) (Unit : million KRW) Expo rt Kore an Q1 Q2 Q3 Q4 Q1 30,157 2020 2020 2020 2020 2021 30 ,0 00 29,378 29,000 29,255 Actual Actual Actual Actual Guidance 25,500 25,000 24,7
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 447 (Korea: 425 / USA: 19 / Japan: 3) 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 q Leading supplier of optical components since 2003 q 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 26 February 2021 25
Slide 26: Condensed income statement
Condensed income statement Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2017 2018 2019 2020 2017 2018 2019 2020 Revenue 76,594 81,504 210,283 103,178 Revenue 76,535 81,406 210,242 103,172 (Sales) (Sales) Cost of sales 53,973 54,106 122,835 62,686 Cost of sales 53,914 54,
Slide 27: Condensed statement of financial position
Condensed statement of financial position Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2017 2018 2019 2020 2017 2018 2019 2020 Current assets 57,247 57,027 137,422 126,477 Current assets 55,648 55,790 136,299 124,173 Cash and cash Cash and cash 21,923 11,073 44,259 40,06
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: