DASAN Networks IR Presentation0).pdf(2006) · Provided 4G LTE Access solution to LGU+ · Acquired 100% share of Handysoft · Handysoft was merged into DASAN SMC · Cancellation of

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


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% → 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


3. Organization


▶ 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%)


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


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)


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-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%)


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


7. Overall Performance [non-consolidated]


▶ 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]


■ 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


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


9. Mid- to Long-term Vision


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

Documents

DASAN Networks IR Presentation0).pdf(2006) · Provided 4G LTE Access solution to LGU+ · Acquired 100% share of Handysoft · Handysoft was merged into DASAN SMC · Cancellation of