DASAN Networks
IR PresentationFY 2015 3Q
Contents
1. Business
Highlight
2. Shareholders
3. Organization
4. Product and
Solution
5. Business
Composition
6. Subsidiaries
7. Overall
Performance
History of corporate name, business area, corporate governance, affiliated companyP.3
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
P.5
P.6
P.8
P.9
P.10 The progress of business performance and financial affairs during the past five years
Corporate governance, affiliated company and organization structure map
Business area and product solution of DASAN Networks and affiliated company
Mid- to long-term vision9. VISION P.14
Business area and product solution of subsidiaries
Sales status by product and market
Global location & Customer & Partners8. Overseas
BusinessP.13
Copyright© 2014 DASAN Networks, Inc. 3
1. Business Highlight
Copyright© 2014 DASAN Networks, Inc.
▶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)
(1993) · DASAN Engineering Co. Ltd. Founded
(1995) · DASAN R&D Center established
(1998) · Developed Frame Relay Router &
AICPS
(1999) · Corporate name changed (DASAN
Engineering → DASAN Internet)
(2000) · Launched new series of Ethernet
switch & xDSL solution
· World first commercial based Linux
Router
· Listed to KOSDAQ
(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
(2004) · Investment from Siemens AG
· Biggest shareholder changed (Mr.
Nam Min Woo → SIEMENS)
(2005) ·Released ADSL2 IP-DSLAM to global
market
(2006) ·Headquarter relocated
(2007) · No. 1 E-PON provider to KT
· No. 1 IP-STB provider to KT
· Biggest shareholder changed
(SIEMENS → Nokia Siemens Networks)
(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
(2009) · Provided G-PON to BSNL, India
· Provided Mobile Backhaul solution to
SBB, Japan
(2010) ·Acquired 86% share of DASAN RND
· Acquired 51% share of EPWORKS
· USA branch founded
(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) · Provided FTTH solution to Viettel in Vietnam
(2015) · DASAN Network Solutions, Inc. established
(captive spin-off)
· Acquired 27.21% share of Solueta
Copyright© 2014 DASAN Networks, Inc. 4
2. Shareholders
Copyright© 2014 DASAN Networks, Inc.
▶ 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% → the end of 2014 24.1% )
■ Shareholder composition during the past five years ■ Major shareholder
Shareholder No. of Stock Ratio
DASAN Invest, Inc.
(controlled by Mr. Nam)4,104,173 20.6%
Mr. Nam Min Woo
(CEO of DASAN Networks &
DASAN Invest)
885,185 4.4%
Treasury shares 2,301,988 11.5%
Shinyoung Asset
Management2,372,898 11.9%
Natioanl Pension Service 758,190 3.8%
Etc. 9,539,898 47.8%
Total 19,962,332 100.0%
■ Profits attribution to shareholders
- 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)
(2015. 3Q)
■ Acquisition and cancelled treasury shares
- Merger with DASAN TPS and the consequential treasury shares
acquisition (Y2008, 2,782,000 share)Largest
shareholder
Treasury
shares
Domestic
institutional
investor
Foreigner
Y 2010 Y 2011 Y 2012
Individual
Y 2013 Y 2014
18.5%
13.5%
10.3%
32.7%
25.0%
17.3%
19.5%
32.7%
26.2%
2.7%
23.1%
43.6%
26.2%
23.8 36.8
25.8
4.4%
10.0%
22.0%
37.5%
26.1%
32.0
4.4% 4.4% 4.4%
21.5%
2.6%
45.4%
26.1%
24.1
Copyright© 2014 DASAN Networks, Inc. 5
3. Organization
Copyright© 2014 DASAN Networks, Inc.
▶ Diversification of overseas customer through USA branch founded in 2010, China branch founded in 2012
D-Mobile(100%)
DASAN Invest
Subsidiaries
Biggest shareholder
(Mr. Nam Min Woo)
DASAN
Networks
100.0%
(State of subsidiary and affiliated companies)
DASAN Network
Solutions,USA (100.0%)
DTS
(81.6%)
Handysoft (25.6%)
Affiliated Companies
Solueta (27.2%)
39.0%
4.4%
20.6%
(DASAN Networks & DASAN Network Solutions )
Headquarter(Pangyo)
DASAN Networks China
(Xian, Shenzhen)
Distribution Center
(Janghowon)
DASAN Networks Japan
DASAN Networks USA
( Global Network )
PANDA Media (90.0%)
DMC
(35.5%)
J-Mobile (45.0%)
Vietnam[ODC]India[ODC]
Taiwanliaison office
(2015. 3Q)
DMC
(45.5%)
DASAN Network
Solutions (100%)
DASAN Networks(Mr. Nam Min Woo)
DASAN Network Solutions , Korea (Mr. Yoo Chun Yeol)
DASAN Network Solutions, USA (Mr. Nam Min Woo)
100.0%
100.0%
SPA CondorDASAN(30.0%)
Copyright© 2014 DASAN Networks, Inc. 6
4. Product and Solution
Customer Access Edge Core
Carrier
Enterprise
Wireless
LAN
IP-PTT
ONT
RRH
office
school
GPON
1:64
EPON
10G OLT (MSAN)
Ethernet
1:32
Mobile Core
Backbone
Police Station
ONT
ONT
GPON OLT
Wireless AP
Access Switch
Metro Mobile BackhaulWireless
AC
EPON OLT
Access Switch
Edge Switch
Access Mobile Backhaul
Wireless AP
Copyright© 2014 DASAN Networks, Inc. 7
4. Product and Solution
Carrier Solutions
GPON EPON XG-PON
Ethernet SwitchesFTTH Mobile Backhaul
MSAN
Aggregation Router
Access Router
L2 Switch
L3 Switch
Enterprise Solutions
Push-to-talkSecurity Switches Wi-Fi
Access Point (AP)
Access Point Controller (AC)
L2 Switch
L3 SwitchIP-PTT (Push-to-talk)
Copyright© 2014 DASAN Networks, Inc. 8
5. Business Composition
Copyright© 2014 DASAN Networks, Inc.
▶ Diversification of overseas customers and improvement of profitability through product mix of Ethernet
switch and OLT/ONUs for FTTx applications
Sales status by product
TPS & Wi-FiNETWORK
Ethernet Switch
FTTX
Mobile
Mobile Backhaul Solution
IP - DSLAM
OTT BOX
Android Series Tablet
IP Phone / Wi-Fi Phone
Wi-Fi AP, AC
Others
Sales segment (2015.3Q)
Sales status by Market
OverseasDomestic
KT
SKB
LGU
Enterprise
JAPAN
NSN etc.
USA
CHINA
Sales segment (2015.3Q)
Others
Ethernet Switch
(50%)
FTTX
(27%)
Others
(23%)
SKB (9%)
export (23%)
LGU (22%)
KT (30%)
Others
(7%)Enterprise
(9%)
Copyright© 2014 DASAN Networks, Inc. 9
6. Subsidiaries
▶ 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
subsidiary affiliated companies
Handysoft
[25.6%]
Cooperative work
S/W Solution Network Solution
DMC
[45.5%]
DTS
[81.6%]
RADIATORACC (Air Cooled
Vacuum Condenser)
Combined Cycle
Power Plant
AFC
(Air Fin Cooler)
Petrochemical plant
Solueta
[27.2%]
IoT Platform
Automobile rubber parts productionElectromagnetic wave shielding (EMI/EMC) material solution
Copyright© 2014 DASAN Networks, Inc. 10
7. Overall Performance [non-consolidated]
Copyright© 2014 DASAN Networks, Inc.
▶ 2013 Turn into surplus in net profit
■ Assets / Cash
■ Liabilities (debt ration) / Borrowing
▶ Healthy cash flow and stable financial structure
■ Sales
■ Operating Profit
1,308
2011
2,478
2010
1,000억
2,000억
2012
2,067
715760
2011
1,939
2010
1,000
2013
1,227
2,000
2012
1,306
30%
43% 43%
1,699
285
2013
33%
1,997
323
2014
1,549
2,283
147
2014
40%
372
634
2011
1,106
2010
500
1,000
2012
627
349447 44%
81%
2011
276
2010
100
2013
60
200
2012
49
142
2013
28%
71
36046%
2014
24
913
534
2014
67%
(unit : 100M Won) (unit : 100M Won)
(unit : 100M Won) (unit : 100M Won)
Export
Cash
Total assets
Total debt
Borrowing
Copyright© 2014 DASAN Networks, Inc. 11 Copyright© 2014 DASAN Networks, Inc.
1,427
1,000
2013
1,339
2,000
2012 2014
100
2013
57
200
2012
60
2014
24
1,640
1,000
2,000
2012
2,136
327
2013
2,410
346
2,590
170
2014
797
1,026
500
1,000
2012
440
2013
60%
58874%
1,253
778
2014
94%
■ Sales ■ Assets / Cash
■ Operating Profit ■ Liabilities (debt ration) / Borrowing
(unit : 100M Won)
(unit : 100M Won)
(unit : 100M Won)
(unit : 100M Won)
Total debt
Borrowing
Total assets
Cash
7. Overall Performance [consolidated]
Copyright© 2014 DASAN Networks, Inc. 12
■ Sales / Operating Profit
100
300
500 1102
OP : -31
700
1,035
OP : -6
■Assets / Cash
1,000
2,000
■ Liabilities (debt ration) / Borrowing
500
1,000
2,277
223
2,584
243
OP : -9
2014.3Q
1,708
510
consolidated
2015.3Q
OP : -14
OP : -67
2014.3Q
2,527
45
3,408
204
2015.3Q
1,144
2,056
1,097
152%
559
83%
923
1,261
706
95%524
68%
2015.3Q
2014.3Q
1,000
Total debt
Borrowing
7. Overall Performance [2015.3Q]
(unit : 100M Won)
(unit : 100M Won)
(unit : 100M Won)
consolidated
consolidated
consolidated
consolidated
consolidated
Total assets
Cash
debt ration
Copyright© 2014 DASAN Networks, Inc. 13
미국
인도
베트남
대만
일본
중국
대한민국
Sales R&D Sales R&D
Sales R&D
Sales
Sales
SalesSales
프랑스
Sales R&D
Customer & Partners■ Asia
- Japan: Provide MBH solution, Securing of new clients
- Taiwan : CHT, Taipei City GPON business
- Vietnam: Viettel Group, VNPT etc.
- Thailand, India and others
■United States
- Setting up local channels, Direct Sales enhancement
■ Eastern Europe/Nordic/South America
- Russia, Poland, Brazil, etc. FTTH market extension
Global Location
8. Overseas business
Copyright© 2014 DASAN Networks, Inc. 14
9. Mid- to Long-term Vision
Copyright© 2014 DASAN Networks, Inc.
Global TOP 5 Network Equipment Provider
▶ DASAN Networks aims to become one of the world’s top 5 network equipment providers by 2018
Product line
reinforcement
Overseas new
customer securement
Domestic enterprise
market extension
Customer Experience
Worldwide customer support
License for supplying to major
ISPs in Korea and worldwide
Customized Solution
Interoperability test for
network stability
Wide-spread deployment in
the world
Product Competitiveness
Various product line-up
Wide-spread deployment in
the world
Innovative Technology
Early adaptation and market-driven R&D
capability with customer
Stronger relationship with leading
partners in this business
HANDYSOFT SoluetaDMCPANDA
MediaJ-MobileDTS