IR_2014 1H_eng

DASAN Networks

IR Presentation FY 2014 1H

Contents

1. Business

Highlight

2. Shareholders

3. Organization

4. Product and

Solution

5. Business

Composition

6. Subsidiaries

7. Overall

Performance

8. Consolidated

Performance

History of corporate name, business area, corporate governance, affiliated company P.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.7

P.8

P.9

P.10

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

years

Corporate governance, affiliated company and organization structure map

Business area and product solution of DASAN Networks and affiliated company

Consolidated business performance during the past three years

Mid- to long-term vision 9. VISION P.11

Business area and product solution of subsidiaries

Sales status by product and market

Copyright 2014 DASAN Networks, Inc.

3

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)

(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) Strategic Alliance with UTStarcom

Provided FTTH solution to Viettel in Vietnam


4

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%)

Shareholder composition during the past five years

Major shareholder

Shareholder No. of Stock Ratio

DASAN Invest, Inc.

(controlled by Mr. Nam) 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%

Standard Chartered PE 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%

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)

(2014.06.30)

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

Largest

shareholder

Treasury

shares

Domestic

institutional

investor

Foreigner

Y 2009

30.9%

15.9%

4.8%

16.8%

31.6%

Y 2010

18.5%

13.5%

10.3%

32.7%

25.0%

Y 2011

17.3%

19.5%

32.7%

26.2%

Individual

Y 2012

2.7%

23.1%

43.6%

26.2%

20.7

23.8 36.8

25.8

Y 2013

4.4%

10.0%

22.0%

37.5%

26.1%

32.0

4.4% 4.4%


5

3. Organization


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

DASAN RND (85.7%)

DASAN Invest

Subsidiaries

Biggest shareholder

(Mr. Nam Min Woo)

DASAN

Networks

100.0%

(State of subsidiary and affiliated companies)

DASAN Networks USA (100.0%)

DASAN Networks JAPAN

(100.0%)

Tomato Soft Ltd. (100.0%)

Xian

(100.0%)

Chashan Networks

(60.0%)

Handysoft (25.6%)

Affiliated Companies

DMC (45.5%)

DASAN Develop

(52.6%)

39.0%

3.6%

22.2%

CEO (Mr. Nam Min Woo)

(DASAN Networks )

Management

Dpt. Finance

planning Dpt.

Domestic

business Dpt. Overseas

business Dpt.

Quality/

Production Dpt.

COO,

Auditor,

Advisor

Headquarter(Pangyo)

DASAN Networks China

(Xian, Shenzhen)

Distribution Center

(Janghowon)

DASAN Networks Japan

DASAN Networks USA

( Global Network )

PANDA Media (90.0%)

DYTS (43.5%)

DMC

(45.5%)

DASAN RND

(5.1%)

Smart

Business Dpt.

50.0%

J-Mobile (45.0%)

Vietnam[ODC]

Strategic

business Dpt. CMO Dpt.

R&D Center

India[ODC]

Taiwan liaison office


6

4. Product and Solution


Provide communication equipment solution based on a variety of products

Flagship Platform PTN Core

10G EPON OLT Backbone Switch

Packet Transport Network

Core-Edge Network

Triple Play Service over IP OTT / STB

VOIP Phone WLAN solution

CPE

GPON OLT, ONU&ONT L2/L3 Switch(PoE) Security Switch

Access Network


7

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

TPS & Wi-Fi NETWORK

Ethernet Switch

FTTX

Mobile

Mobile Backhaul Solution

IP - DSLAM

OTT BOX

Android Series Tablet

IP Phone / Wi-Fi Phone

Wi-Fi AP, AC

Others

Ethernet Switch

(30%)

Sales segment (2013)

FTTX

(42%)

Others

(28%)

Sales status by Market

Overseas Domestic

KT

SKB

LGU

Enterprise

JAPAN

NSN etc.

USA

CHINA

SKB (10%)

Sales segment (2013)

Overseas (33%) LGU (14%)

KT (29%)

Others

(14%)

Others


8

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

Handysoft

PANDA

Media

Cooperative work

S/W Solution Network Solution

Smart Monitor OTT Services

J-Mobile

IP PTT(Portable) IP PTT(Car)

DASAN

RND

DMC

DYTS

Automobile

production&research

automation solutions

Car exhaust gas

inspection system

RADIATOR ACC (Air Cooled

Vacuum Condenser)

Combined Cycle

Power Plant

Automobile rubber parts production

Lease Business: DASAN Tower

AFC

(Air Fin Cooler)

Petrochemical plant


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7. Overall Performance


2013 Turn into surplus in net profit

Assets / Cash

Liabilities (debt ration) / Borrowing

Healthy cash flow and stable financial structure

Sales

Operating Profit

Separate Financial Statements




1,308

2011

2,478

2010

1,000

2,000

2012

2,067

715 760

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

1,700(E)

2014(1H)

683

2,170

347

2014(1H)

32%

372

634

2011

1,106

2010

500

1,000

2012

627

349

691

44%

81%

2011

276

2010

100

2013

60

200

2012

49

142

2013

28%

71

360 46%

2014(1H)

12

795

499

2014(1H)

58%

(unit : 100M Won) (unit : 100M Won)

(unit : 100M Won) (unit : 100M Won)

Export

Cash

Total assets

Total debt

Borrowing


10

8. Consolidated Performance


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

Consolidated sales Overseas business

JAPAN

SBB : Provide MBH solution

IP-PTT : Service Providing Business via J-Mobile

United States

Setting up local channels

Brand awareness and potential customer increases

Strategic Alliance and Partnership with UTStarcom targeting

North America and Global market

Asia

Taiwan : CHT, Taipei City GPON business

Thailand, Hong Kong, etc : FTTH supply

Vietnam, India and others

Eastern Europe/Nordic/South America

Russia, Poland, Brazil, etc. FTTH market extension

Indirect Sales enhancement

(unit : 100M Won)

1,441

1,306 1,227

2011 2012 2013

1,339

OP : 57 OP : 60 OP : 11

1,427

1,308 1,700

1,900

2014(E)

DASAN

Networks

OP : 57


11

9. Mid- to Long-term Vision


Global TOP 5 Network Equipment Provider

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

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 J-Mobile DMC DASAN

RND

PANDA

Media DYTS

IR_2014 1H_eng

Documents

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