Optical Cable Corporation · NASDAQ:OCC
Optical Cable — Shareholder Meeting (March 2024)
27 slides from Optical Cable's shareholder meeting presentation, Mar 27, 2024
Slide 1: Optical Cable Corporation Annual Meeting of Shareholders
W 0G ee Optical Cable Corporation (Nasdaq GM: OCC) Annual Meeting of Shareholders March 26, 2024 Neil Wilkin, CEO OCC. CONNECTIONS YOU CAN COUNT ON.®
Slide 2: Founded in 1983, OCC is a leading technology innovator and manufacturer
0 Founded in 1983, OCC® is a leading technology innovator and manufacturer of diverse suites of fiber optic and copper data communication cabling and connectivity products and solutions for the enterprise market and a variety of specialty and harsh environment markets. by designing and manufacturing
Slide 3: Forward Looking Information
OCC FORWARD LOOKING INFORMATION This presentation may contain “forwardooking statements” that involve risks and uncertainties. These statements reflect management’ curent expectations about possible laure events and performance. Such forward-looking information ie subject to known and unknown variab
Slide 4: Agenda
CC AGENDA |. Strong Positioning and Execution Given Industry Conditions—Fiscal Year 2023 Il. Our Core Strengths Create Opportunities Ill. Looking Forward to Fiscal Year 2024 IV. Q&A
Slide 5: Strong Positioning and Execution Given Industry Conditions—Fiscal Year 2023
OCC Strong Positioning and Execution Given Industry Conditions— Fiscal Year 2023
Slide 6: Strong Positioning and Execution
CC Strong Positioning and Execution ONet sales increased 4.5% to $72.2 million in FY 2023, following net sales growth of 16.8% in FY 2022. QNet sales increased 19.8% during the first half of FY 2023, and decreased 8.5% during the second half of FY 2023. QOCC benefits from market diversification and
Slide 7: Strong Positioning and Execution
CC Strong Positioning and Execution O Second half of FY 2023 - increasing weakness in our industry generally and in certain targeted markets. Q Sales order backlog/forward load returned to more typical levels by end of FY 2023.
Slide 8: Consolidated Net Sales by Quarter
CC Consolidated Net Sales by Quarter FY 2020 through Q1 2024 (in thousands $) 20900 19000 wmFY 2000 mFY 2001 mFY2022 FY 2003. mFY 206
Slide 9: Gross Profit and Strong Operating Leverage
CC Gross Profit and Strong Operating Leverage OGross Profit Grew 8.7% to $22.3 million in FY 2023. QGross Profit Margin increased to 30.9% during fiscal year 2023. = Gross Profit Margin was 35.1% during the first half of 2023, compared to the same period in prior year. QOCC Benefits from Strong Oper
Slide 10: Controlling SG&A Expenses
CC Controlling SG&A Expenses OCSG8A Expenses as percentage of Net Sales were 29.4% in Fiscal Year 2023 compared to 28.9% during fiscal year 2022. OFixed SG&A Expenses substantial - including public company costs. QOCC Benefits from Strong Operating Leverage with SG&A Expenses (percentage of net sale
Slide 11: OCC SG&A Expenses
CC OCC SG&A Expenses FY 2020 - FY 2023 Dollars (in 000s) and % of Net Sales 28,000 26000 24000 300 szz000 2 szo00 = 260 s1e000 16000 Fr2020 Fre02 Fram rae —SctA Toals. —% ot net Sales ”
Slide 12: Income from Operations
Kq Income from Operations ONet income from operations increased 110% to $993,000 during FY 2023, compared to $473,000 during FY 2022.
Slide 13: Our Core Strengths Create Opportunities
OCC OUR CORE STRENGTHS CREATE OPPORTUNITIES
Slide 14: OCC Core Strengths - Market Position
CC OCC CORE STRENGTHS - Market Position QEnviable market positions. OBrand recognition. QStrong relationships with customers, decision makers and end-users across a broad range of targeted markets.
Slide 15: OCC Core Strengths - Product Offerings
CC OCC CORE STRENGTHS - Product Offerings QExtensive range of fiber optic and copper cabling and connectivity products and solutions. QEnables OCC to deliver products and solutions that meet our customers’ unique needs and that are well suited for the applications in our targeted markets.
Slide 16: Extensive Fiber Optic and Copper Cabling and Connectivity Offerings
my A0CC EXTENSIVE FIBER OPTIC AND COPPER CABLING AND CONNECTIVITY OFFERINGS FIBER CONNECTIVITY ENCLOSURES ASSEMBLIES 6
Slide 17: Top-Tier Fiber Optic Cabling Offerings
my AOCC TOP-TIER FIBER OPTIC CABLING OFFERINGS + Products to suit a broad range of applications. + Hybrid Fiber Optic and Copper Cables for various Specialty applictions~including wireless carrer and security applications.
Slide 18: OCC Core Strengths - Global Presence
mW S0Cc Eos OCC CORE STRENGTHS - Global Presence Q Broad and diverse geographic footprint. Q OCC sells into approximately 50 countries every year.
Slide 19: OCC Core Strengths - Expertise
CC OCC CORE STRENGTHS - Expertise Extensive industry experience and expertise. QOCC's engineering, sales and business development teams are well-respected for their product and application experience and expertise that enables OCC to create its portfolio of innovative, high-performance products and
Slide 20: Our Core Strengths
OUR CORE STRENGTHS OCC
Slide 21: Looking Forward to Fiscal Year 2024
OCC Looking Forward to Fiscal Year 2024
Slide 22: Looking Forward to Fiscal Year 2024
CC Looking Forward to Fiscal Year 2024 Q Net sales in Q1 2024 negatively impacted by various macroeconomic pressures, tisks and uncertainties in our industry. Q The net sales decrease in Q1 2024 was primarily in our enterprise and wireless carrier markets. Q We believe this is consistent with weakne
Slide 23: Looking Forward to Fiscal Year 2024
CC Looking Forward to Fiscal Year 2024 Q While certain of our markets continue to show signs of softness (including our enterprise and wireless carrier markets), we believe there are positive indicators in certain of our markets. Q Overall, we expect our net sales to begin to improve in FY 2024, but
Slide 24: Looking Forward to Fiscal Year 2024
CC Looking Forward to Fiscal Year 2024 Q While production volume decreased in Q1 2024, OCC did not implement reductions in production personnel like others in our industry. Q Our planned restraint is consistent with our view for the remainder of fiscal year 2024. 24
Slide 25: Looking Forward
CC LOOKING FORWARD Q Continued focus on executing our strategy to meet demand and capture additional growth opportunities. Q Monitor changing macroeconomic, industry and targeted market trends and be prepared to make appropriate business adjustments as necessary. Q Position OCC to capture growth opp
Slide 26: Questions & Answers
OCC QUESTIONS & ANSWERS
Slide 27: Thank You!
CC -OCC THANK YOU! Connections You Can Count On.™