DASAN Networks

IR Presentation
FY 2014 1H

Contents
1. Business
Highlight

P.3

History of corporate name, business area, corporate governance, affiliated company

2. Shareholders

P.4

Shareholders composition during the past five years, major stockholder of 5% and
above, increase and decrease of treasury shares, profits attribution to shareholders

3. Organization

P.5

Corporate governance, affiliated company and organization structure map

4. Product and
Solution

P.6

Business area and product solution of DASAN Networks and affiliated company

5. Business
Composition

P.7

Sales status by product and market

6. Subsidiaries

P.8

Business area and product solution of subsidiaries

7. Overall
Performance

P.9

The progress of business performance and financial affairs during the past three
years

8. Consolidated
Performance

P.10

Consolidated business performance during the past three years

9. VISION

P.11

Mid- to long-term vision

1. Business Highlight
Maintenance of the NO.1 provider position in the domestic network equipment market since its foundation
Entrance of the global market in Japan, USA, China etc. and diversification drive since 2009

Foundation / Localization of Networks

equipment (1993 ~ 2003)

No1 Provider in the domestic market

(2004 ~ 2008)

Globalization & Diversification

(since 2009)

(1995) DASAN R&D Center established

(2004) Investment from Siemens AG

Biggest shareholder changed (Mr.
Nam Min Woo SIEMENS)

(2009) Provided G-PON to BSNL, India

Provided Mobile Backhaul solution to
SBB, Japan

(1998) Developed Frame Relay Router &

AICPS

(2005) Released ADSL2 IP-DSLAM to global

market

(2010) Acquired 86% share of DASAN RND

Acquired 51% share of EPWORKS
USA branch founded

(1999) Corporate name changed (DASAN

Engineering DASAN Internet)

(2006) Headquarter relocated

(2000) Launched new series of Ethernet

switch & xDSL solution
World first commercial based Linux
Router
Listed to KOSDAQ

(2007) No. 1 E-PON provider to KT

No. 1 IP-STB provider to KT
Biggest shareholder changed
(SIEMENS Nokia Siemens Networks)

(1993) DASAN Engineering Co. Ltd. Founded

(2001) Launched Metro Ethernet solution

Released L2 Switch
(2002) Corporate name changed (DASAN
Internet DASAN Networks)
Released L3 Metro Ethernet Switch
(2003) Released VDSL IP-DSLAM

(2008) Biggest shareholder changed (Nokia

Siemens Networks DASAN Invest)
Acquired by DASAN TPS
Provided G-PON to SKB
No.1 IP phone provider of Samsung
Networks

(2006) Provided 4G LTE Access solution to LGU+

Acquired 100% share of Handysoft
Handysoft was merged into DASAN SMC
Cancellation of shares : 1,000,000 shares
Headquarter relocated (DASAN Tower)
(2012) Provided OTT BOX to NTT West
Acquired 75.08% share of DMC
(2013) Selected as the Supplier of Chunghwa
Telecom & Taipo in Taiwan(G-PON)
Released SKB Smart Set Top Box(B-Box)
Acquired 43.5% share of DYTS
(2014) Strategic Alliance with UTStarcom
Provided FTTH solution to Viettel in Vietnam

Copyright 2014 DASAN Networks, Inc.

2. Shareholders
Portion of institutional investor (the end of 2009 20.7% the end of 2010 23.8% the end of 2011 36.8% the
end of 2012 25.8% the end of 2013 32.0%)
Major shareholder
Shareholder composition during the past five years

Shareholder
DASAN Invest, Inc.
(controlled by Mr. Nam)

16.8%
32.7%

32.7%
20.7

37.5%

43.6%

Individual

4.8%
36.8

23.8

15.9%
10.3%

32.0
25.8

19.5%

Foreigner

(2014.06.30)
No. of Stock

Ratio

4,104,173

22.2%

Mr. Nam Min Woo

(CEO of DASAN Networks
& DASAN Invest)

672,395

3.6%

Treasury shares

815,662

4.4%

3,432,402

18.6%

National Pension

737,141

4.0%

Shinyoung Asset
Management

925,034

5.0%

Etc.

7,789,199

42.2%

Total

18,476,006

100.0%

Standard Chartered PE

22.0%
30.9%

13.5%

23.1%

17.3%

10.0%
2.7%

18.5%
4.4%

4.4%

4.4%

31.6%

25.0%

26.2%

26.2%

26.1%

Domestic
institutional
investor

Treasury
shares

Largest
shareholder

Acquisition and cancelled treasury shares

- Merger with DASAN TPS and the consequential treasury shares

acquisition (Y2008, 2,782,000 share)
- Sold 2,782,000 to Standard Chartered PE
Profits attribution to shareholders

Y 2009

Y 2010

Y 2011

Y 2012

Y 2013

- Cancellation of 1,000,000 shares (Jun, 2011)

- Earned surplus : 31.4billion (as of the end of 2011)
(In benefit, expectation of dividend policy in consideration)

Copyright 2014 DASAN Networks, Inc.

3. Organization
Diversification of overseas customer through USA branch founded in 2010, China branch founded in 2012

(State of subsidiary and affiliated companies)

(DASAN Networks )

Biggest shareholder
(Mr. Nam Min Woo)

CEO (Mr. Nam Min Woo)

3.6%

100.0%
DASAN Invest

22.2%
DASAN
Networks

DMC
(45.5%)

DASAN RND (85.7%)

DASAN Develop
(52.6%)

DASAN RND
(5.1%)

COO,
Auditor,
Advisor

Management
Dpt. Finance
planning Dpt.

CMO Dpt.

Strategic
business Dpt.

DMC (45.5%)
Domestic
business Dpt.

PANDA Media (90.0%)

DASAN Networks USA
(100.0%)
DASAN Networks JAPAN
(100.0%)

Handysoft (25.6%)

DYTS (43.5%)

Overseas
business Dpt.

Smart
Business Dpt.

R&D Center

Quality/
Production Dpt.

39.0%

50.0%

( Global Network )
J-Mobile (45.0%)

Tomato Soft Ltd.

(100.0%)

DASAN Networks USA

DASAN Networks Japan

DASAN Networks China

(Xian, Shenzhen)
Taiwan
Headquarter(Pangyo)
liaison office
India[ODC] Vietnam[ODC] Distribution Center
(Janghowon)

Xian
Chashan Networks
(100.0%)
(60.0%)

Subsidiaries

Affiliated Companies

Copyright 2014 DASAN Networks, Inc.

4. Product and Solution

Provide communication equipment solution based on a variety of products

Core-Edge Network

Access Network

CPE

Flagship Platform
PTN Core
10G EPON OLT
Backbone Switch
Packet Transport Network

GPON OLT, ONU&ONT

L2/L3 Switch(PoE)
Security Switch

Triple Play Service over IP

OTT / STB
VOIP Phone
WLAN solution

Copyright 2014 DASAN Networks, Inc.

5. Business Composition
Diversification of overseas customers and improvement of profitability through product mix of Ethernet
switch and OLT/ONUs for FTTx applications

Sales status by product

Sales status by Market

NETWORK

TPS & Wi-Fi

Domestic

Overseas

Ethernet Switch

OTT BOX

KT

JAPAN

FTTX

Android Series Tablet

SKB

NSN etc.

Mobile

IP Phone / Wi-Fi Phone

LGU

USA

Mobile Backhaul Solution

Wi-Fi AP, AC

Enterprise

CHINA

IP - DSLAM

Others

Sales segment (2013)

Others
(28%)

Ethernet Switch
(30%)

Others

Sales segment (2013)

Others
(14%)
LGU (14%)

Overseas (33%)

SKB (10%)
FTTX
(42%)

KT (29%)

Copyright 2014 DASAN Networks, Inc.

4. Product and Solution

Upstream business strategy and supply of network equipment in close cooperation with the affiliated company
Internal Diversification including, but not limited to, automotive parts, and automated solutions

Car & Engineering

Software & Service

DMC
Handysoft

Automobile rubber parts production

Cooperative work
S/W Solution

Lease Business: DASAN Tower

Network Solution

DASAN
RND
Automobile
production&research
automation solutions

Car exhaust gas

inspection system

PANDA
Media
OTT Services

DYTS

Smart Monitor

J-Mobile
ACC (Air Cooled
Vacuum Condenser)
Combined Cycle
Power Plant

AFC
RADIATOR
(Air Fin Cooler)
Petrochemical plant

IP PTT(Car)

IP PTT(Portable)

Copyright 2014 DASAN Networks, Inc.

7. Overall Performance
2013 Turn into surplus in net profit

Healthy cash flow and stable financial structure

Sales

Assets / Cash
(unit : 100M Won)

2,000

2,478

1,939

1,700
(E)
1,306

1,000

Export

1,227

43%

43%
30%

2010

(unit : 100M Won)

2011

2012

2,170

2,067

2,000

1,997

1,308

1,699
683

33%

2013

1,000

760

715

32%

2010

2011

347

323

285

2014(1H)

Separate Financial Statements

Total assets

2013

2012

Cash

2014(1H)

Separate Financial Statements

Operating Profit

Liabilities (debt ration) / Borrowing

(unit : 100M Won)

(unit : 100M Won)

276
200

1,000

1,106

795
691

100

71
49

500

81%

60

627

634

44%

46%

349

2011

Separate Financial Statements

2012

2013

2014(1H)

58%

499

360

Borrowing

28% 142

12

2010

372

Total debt

2010

2011

2012

2013

2014(1H)

Separate Financial Statements

Copyright 2014 DASAN Networks, Inc.

8. Consolidated Performance
Visualization of investment performance to subsidiaries or partnership : DMC, DASAN RND, etc.

Consolidated sales

Overseas business
(unit : 100M Won)

JAPAN
SBB : Provide MBH solution
IP-PTT : Service Providing Business via J-Mobile
United States
Setting up local channels
1,900
1,441

1,427

Brand awareness and potential customer increases

Strategic Alliance and Partnership with UTStarcom targeting

1,339

North America and Global market

DASAN
Networks

Asia

1,306

1,227

1,308

OP : 11

OP : 60

OP : 57

1,700

Taiwan : CHT, Taipei City GPON business

Thailand, Hong Kong, etc : FTTH supply

Vietnam, India and others
Eastern Europe/Nordic/South America

2011

2012

2013

2014(E)

Russia, Poland, Brazil, etc. FTTH market extension

Indirect Sales enhancement

10

Copyright 2014 DASAN Networks, Inc.

9. Mid- to Long-term Vision

DASAN Networks aims to become one of the worlds top 5 network equipment providers by 2016

Global TOP 5 Network Equipment Provider

DYTS

DASAN
RND

DMC

HANDYSOFT

J-Mobile

PANDA
Media

Product line
reinforcement

Overseas new
customer securement
Domestic enterprise
market extension

Innovative Technology
Early adaptation and market-driven R&D
capability with customer
Stronger relationship with leading
partners in this business

Product Competitiveness
Various product line-up
Wide-spread deployment in
the world

Customized Solution
Interoperability test for
network stability
Wide-spread deployment in
the world

Customer Experience
Worldwide customer support
License for supplying to major
ISPs in Korea and worldwide

11

Copyright 2014 DASAN Networks, Inc.