Slide 1: IR Presentation 2021 Results & Q1 2022 Guidance
IR Presentation 2021 2021 Results & Q1 2022 Guidance May 2022 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. 2021 Result Review 2. 5G(NR) Mobile Network Business 3. OE Solutions Vision & Strategy 4. Q1 of 2022 Guidance 5. Appendix © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 4: 2021 Result Review
2021 Result Review © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 5: Financial Results 2021
Financial Results 2021 Revenue 98.7B KRW , Operating income 1.7B KRW(1.7%), Net income 14.4B KRW(14.6%) Revenue Operating income Net income 70,000 30.0% 50,000 25.0% 200,000 60,000 45,000 25.0% 40,000 20.0% 150,000 50,000 20.0% 35,000 40,000 30,000 15.0% 15.0% 30,000 25,000 100,000 10.0% 20,000 10.0
Slide 6: Financial Results 2021 Revenue 98.7B KRW / YoY -4.4%
Financial Results 2021 Revenue 98.7B KRW / YoY -4.4% (Unit : million KRW) 구분 2020 2021 % YoY Q3 21 Q4 21 QoQ Revenue 103,178 98,681 -4.4% 22,193 20,023 -9.8% (Sales) Gross profit 40,492 36,265 36.7% -10.4% 8,850 5,052 -42.9% Selling general Administrative 33,139 34,610 35.1% 4.4% 7,332 8,083 10.2% e
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 69 232 222 209 362 230 204 198 199 194 186 197 200 187 180 189 187 251 189 162 184 200 173 164 62 167 168 172 102 148 134 157 152 148 155 61
Slide 8: Sales details
Sales details Etc. FTTH/MSO 1.2 14.4% % (Unit: 100 million KRW) Telecom 2020 2021 YoY (%) /Datacom 4.1% Network Network • Wireless 713.7 792.5 11.0% Wireless • Telecom/Datacom 45.6 40.2 -11.8% 80.3% • FTTH/MSO 262.6 141.8 -46.0% • etc. 9.8 12.3 -25.5% Region Overseas • Korean 622.6 666.8 7.1% 32.4%
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 in the 2022 Telecommunication Carriers (Unit: 100 million KRW) Global 5G Revenue 25,000 20,000 15,000 10,000 5,000 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 20
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 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: 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 27 M
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: Q1 of 2022 Guidance
Q1 of 22 Guidance © OE Solutions Co., Ltd. All rights reserved. Confidential & Proprietary
Slide 19: 1Q Guidance
1Q Guidance Q1 Revenue is expected to 17.0B KRW YoY -26.3%, QoQ -15.1% 하락 Quarterly Guidance Quarterly Trends (Unit : million KRW) (Unit : million KRW) 40,000 Export Korean Q1 Q2 Q3 Q4 Q1 33,397 2021 2021 2021 2021 2022 31,500 Actual Actual Actual Actual Guidance 30,000 25,000 23,068 22,193 22,000 2
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 412 (Korea: 389 / USA: 19 / 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 27 May 2022 25
Slide 26: Condensed income statement
Condensed income statement Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2018 2019 2020 2021 2018 2019 2020 2021 Revenue 81,504 210,283 103,178 98,681 Revenue 81,406 210,242 103,172 98,681 (Sales) (Sales) Cost of sales 54,106 122,835 62,686 62,416 Cost of sales 54,117 122
Slide 27: Condensed statement of financial position
Condensed statement of financial position Consolidated Separate standards (Unit : million KRW) (Unit : million KRW) 2018 2019 2020 2021 2018 2019 2020 2021 Current assets 57,027 137,422 129,808 106,938 Current assets 55,790 136,299 127,504 105,532 Cash and cash Cash and cash 11,073 44,259 40,068 31,
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: