Slide 1: IR Presentation Q2 2020
IR Presentation Q2 2020 Q2 2020 Results & Q3 2020 Guidance August 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. Q2 2020 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Vision & Strategy 4. Q3 of 2020 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: Q2 2020 Result Review
Q2 2020 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results
Financial Results Q2 Revenue 29.4B KRW Operating income 4.2B KRW (14.2%) Net income 3.8B KRW(12.9%) Revenue Operating income Net income 220,000 70,000 30.0% 50,000 25.0% 200,000 60,000 25.0% 180,000 40,000 20.0% 160,000 50,000 20.0% 140,000 30,000 15.0% 40,000 15.0% 120,000 100,000 30,000 10.0% 20,0
Slide 6: Financial Results
Financial Results Q2 2020 Revenue 29.4B KRW, Operating income 4.2B KRW(14.2%) Overseas FTTH/MSO sales increase (Unit : million KRW) Q1 20 Q2 20 % QoQ Q2 19 YoY Revenue 18,938 29,378 55.1% 56,036 -47.6% (Sales) Gross profit 6,503 12,638 43.0% 94.3% 23,666 -46.6% Selling general Administrative 7,903 8
Slide 7: Quarterly Revenue trends
Quarterly Revenue trends 5G Investment stagnation and delay due to issues such as COVID-19 Expected to grow in 2021 and improve Q4 results (Unit: 100 million KRW) 700 606 600 560 502 500 434 400 493 288 485 294 300 411 244 69 232 209 362 204 198 199 194 186 197 187 180 189 187 189 162 200 173 164 62
Slide 8: Sales details
Sales details FTTH/MSO QoQ 268% ↑ Wireless 64.2%, Korean 55.1%, Overseas 44.9% FTTH/MSO 32.0% (Unit: 100 million KRW) Q1 2020 Q2 2020 QoQ (%) Network Wireless 64.2% Network Telecom • Wireless 145.8 188.6 29.4% /Datacom 3.3% • Telecom/Datacom 18.1 9.6 -47.0% Etc. 0.6% • FTTH/MSO 25.5 93.9 268.2% • et
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 5G 1H 2020 Revenue Telecommunication Carriers JAPAN US 11% 10% KOREA 79% Network Equipment (Unit : million KRW) Region Operator Product Revenue % KT 10Gbps, 25Gbps KOREA LG U+ 10Gbps 18,056 79% SKT 10Gbps KDDI 10Gbps JAPAN 2,386 10% NTT docomo 2
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, Business, Consumption etc.) Data traffic in Korea (Unit: TB) Data traffic 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 4 5 6 7 8 9 0 1 2 1 2 3 4 5 6 .
Slide 12: OE Solutions Vision & Strategy
OE Solutions Vision & Strategy © 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 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 14: 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 15: 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 16: Q3 of 2020 Guidance
Q3 of 20 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 17: Q3 of 2020 Guidance
Q3 of 20 Guidance Q3 Revenue is expected to 29B KRW 5G investment reduction and delay due to COVID-19 global issued Quarterly Guidance Quarterly Trends (Unit : million KRW) (Unit : million KRW) 70,000 Q3 Q4 Q1 Q2 Q3 60,645 Korean Export 60,000 58,000 2019 2019 2020 2020 2020 Actual Actual Actual Act
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 Aug.7, 2003 Number of 410 (Korea: 390 / 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 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 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 21: 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 22: 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 23: Key Application Areas
Key Application Areas © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary 10 August 2020 23
Slide 24: Condensed income statement
Condensed income statement Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2020 2020 2017 2018 2019 2017 2018 2019 1Q 2Q 1Q 2Q Revenue Revenue 76,594 81,504 210,283 18,938 29,378 76,535 81,406 210,242 18,938 29,377 (Sales) (Sales) Cost of sales 53,973 54,106 122,835 12,435
Slide 25: Condensed statement of financial position
Condensed statement of financial position Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2020 2020 2017 2018 2019 2017 2018 2019 1Q 2Q 1Q 2Q Current assets 57,247 57,027 137,422 128,091 129,369 Current assets 55,648 55,790 136,299 127,306 127,649 Cash and cash Cash and cas
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, 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: