DASAN Networks IR Presentation - 02Q 2017
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
DASAN Networks IR Presentation 02Q 2017
Disclaimer
The financial information and business results in this document are presented here for investor’s convenience, which
have not yet been reviewed by external auditors and some figures may be able to be changed according to the audit
outcomes.
Forecasts and projections contained in this material are based on current business environments and management
strategies. They may differ from the actual results depending on changes and unaccounted variables, therefore DASAN
Networks. Inc. does not undertake any obligation to the investment results from those in the forward-looking
statements.
The responsibility for investment is ascribed only to investors. These materials can not be used as evidence in any legal
dispute. The financial information and business results in this document are based on K-IFRS.
2 Copyright© 2017 DASAN Networks, Inc.
Contents
1. History P.4 History of corporate name, business area, corporate governance, affiliated companies
Shareholders composition during past five years, major stockholders of 5% and
2. Shareholders P.5 above, increase and decrease of treasury shares, profits attribution to shareholders
3. Organization P.6 Corporate governance, affiliated companies and organization structure map
4. Product and Business area and product solution of DASAN Networks and affiliated companies
P.7
Solution
5. Business
P.8 Sales status by product and market
Composition
6. Subsidiaries P.10 Business area and product solution of subsidiaries
7. Overseas
Business P.13 Global location & Customers & Partners
8. Overall
P.19 The progress of business performance and financial results during past five years
Performance
9. VISION P.21 Mid- to long-term vision
1. History
▶ Maintaining NO.1 provider position in the Korean domestic network equipment market since its foundation
▶ Entrance of the global market and diversification drive since 2009
Foundation / Localization of Networks No1 Provider in the Korean domestic(Korea) Globalization & Diversification
equipment (1993 ~ 2003) market (2004 ~ 2008) (since 2009)
(1993) ·DASAN Engineering Co. Ltd. Founded (2004) ·Investment from Siemens AG (2009) ·Provided G-PON to BSNL, India
·Biggest shareholder changed ·Provided Mobile Backhaul solution to Softbank
(1995) ·DASAN R&D Center established (Mr. Nam Min Woo → SIEMENS)
(2011) ·Provided 4G LTE Access solution to LGU+
(1998) ·Developed Frame Relay Router & AICPS (2005) ·Released ADSL2 IP-DSLAM to global market ·Acquired 100% share of Handysoft
·Handysoft was merged into DASAN SMC
(1999) ·Corporate name changed (2006) ·Headquarter relocated ·Cancellation of shares : 1,000,000 shares
(DASAN Engineering → DASAN Internet) ·Headquarter relocated (DASAN Tower)
(2007) ·No. 1 E-PON provider to KT
(2000) ·Launched new series of Ethernet switch ·No. 1 IP-STB provider to KT (2012) · Acquired 75.08% share of DMC
& xDSL solution ·Biggest shareholder changed
·World first commercial based Linux Router (SIEMENS → Nokia Siemens Networks) (2013) ·Selected as the Supplier of Chunghwa Telecom
·Listed to KOSDAQ & Taipo in Taiwan(G-PON)
(2008) ·Biggest shareholder changed ·Released SKB Smart Set Top Box(B-Box)
(Nokia Siemens Networks → DASAN Invest) ·Acquired 43.5% share of DTS
(2001) ·Launched Metro Ethernet solution
·Released L2 Switch ·Acquired DASAN TPS
·Provided G-PON to SKB (2014) ·Provided FTTH solution to Viettel in Vietnam
·No.1 IP phone provider of Samsung networks ·DTS acquisition
(2002) ·Corporate name changed
(DASAN Internet → DASAN Networks) (2015) ·DASAN Network Solutions, Inc. is established
·Released L3 Metro Ethernet Switch (captive spin-off)
·Solueta acquisition (the largest stockholders)
(2003) ·Released VDSL IP-DSLAM ·Algeria SPA Condor DASAN is established
·D-Mobile, Corporation in Taiwan is established
(2016) ·Sell DMC Inc.’s share to Solueta Co.,Ltd.
·Completed acquisition of Nasdaq listed
company, Zhone Technologies
·Provided network equipment to Government
in France and India
4 Copyright© 2017 DASAN Networks, Inc.
2. Shareholders
▶ Portion of institutional investor (the end of 2012, 25.8% → 2013, 32.0% → 2014, 24.1% → 2015, 14.0% → 2016, 14.1% )
■ Shareholder composition during the past five years
■ Major shareholder (June 30, 2017)
Shareholder No. of Stock Ratio
DASAN Invest, Inc. (Largest shareholders) 5,461,080 25.2%
Individual Individual Individual Individual Individual
Mr. Nam Min Woo (CEO) 885,185 4.1%
Affiliated person 221,317 1.0%
37.5%
43.6% 45.4%
51.3% 50.1% Treasury shares 2,301,988 10.6%
Shinyoung Asset Management 2,360,357 10.9%
32.0
Etc. 10,400,331 48.1%
25.8 24.1
Foreigner
14.0 14.1 Total 21,630,258 100.0%
2.6% Foreigner Foreigner
22.0% 1.9% 3.1%
23.1% Foreigner
21.5% 12.1% ■ Current State of Convertible Bond
Foreigner 11.0%
10.0% Institutional
Institutional
Institutional
Institutional
Institutional Division The 4th CB The 5th CB
2.7% Treasury
Treasury Treasury
4.4% 4.4% 4.4% 11.5% 10.6% Balance KRW 22.86 Bil. Balance KRW 17Bil.
Treasury Treasury Amount of Bond
(KRW 33Bil.) (KRW 28Bil.)
Issued / Maturity date 04.09.15 / 04.09.19 08.10.16 / 08.10.21
26.2% 26.1% 26.1% 25.2% 25.2% Conversion period 04.09.16 ~ 04.08.19 08.10.17 ~ 07.10.21
Largest Largest Largest Largest Largest Conversion price KRW 5,680 KRW 5,788
Convertible stocks 4,024,471 2,902,557
2012 2013 2014 2015 2016
Coupon 1% Coupon 0%
Interest rate
YTM 4% YTM 1%
5 Copyright© 2017 DASAN Networks, Inc.3. Organization
▶ Strengthen the role of operating holding company / anticipated sales growth due to expended connected-subsidiary company
– IOT, Automotive application component sector
(State of subsidiary and affiliated companies) ■ DASAN Networks group management
Biggest shareholder EMC material
IOT
4.1%
(Mr. Nam Min Woo) Network Solueta
100.0% DASAN Zhone Automotive
DASAN Invest
Solutions application Automobile
Component DMC
25.2%
Software
Handysoft Connected Car Heat exchanger
DTS
DASAN Networks
■ Listed company of DASAN group in capital market
DASAN Zhone Solutions Solueta (27.2%)
(58.0%)
DASAN Network
Solutions (100%)
DMC (100%: Solueta) DASAN Networks. Inc. (Kosdaq : 039560)
DTS (81.6%) Handysoft (17.6%)
Solueta Co.,Ltd. (Kosdaq : 154040)
26.8%
Handy Soft Inc. (Kosdaq : 220180)
Etc Etc.
DASAN Zhone Solutions Inc. (Nasdaq code : DZSI)
Subsidiaries Affiliated Companies
6 Copyright© 2017 DASAN Networks, Inc.4. Product and Solution
Customer Access Edge Core
ONT
1:64
GPON OLT
GPON
Carrier
10G OLT (MSAN)
ONT 1:32
ONT
EPON EPON OLT
Back
Wireless AP
office
bone
Enter Access Switch
prise
Wireless AP Edge Switch
school
Access Switch
Police Station
Mobile Core
AC
RRH
Wireless Ethernet
LAN Wireless Metro Mobile Backhaul
Access Mobile Backhaul
IP-PTT
※ This page is for better understanding of the equipment, Difference may occur.
7 Copyright© 2017 DASAN Networks, Inc.5.1 Sales Percentage of Products
▶ Network Sales Grew 37%. (2015A – 2016A)
Sales Percentage of Products
Etc. Etc.
PON
23% 23% PON
30% Growth 37%
2015A 37% 2016A
153.5 Bil won 209.8 Bil won
Network Business Network Business
47% 40%
Ethernet Switch
Ethernet Switch
8 Copyright© 2017 DASAN Networks, Inc.5.2 Sales Percentage of Geography
▶ Overseas Sales Grew 22%. (2015A – 2016A)
Sales Percentage of Geography
Etc. America(N/S)
Etc.
EUR America(N/S)
0.4% 5% Middle East
6% 10%
0.3% 15%
Asia Pacific
EUR
14% 8%
Overseas
2015A 22% 2016A 3% Middle East
153.5 Bil won 209.8 Bil won
Network Business Network Business
12%
75% 52% Asia Pacific
Korea
Korea
9 Copyright© 2017 DASAN Networks, Inc.6.1 Major subsidiaries – Network business
■ Network business organization chart ■ DASAN Zhone Solutions
DASAN Networks KOR
58.0%
DASAN Zhone
US
Solutions
100.0%
DASAN Network Solutions US
100.0%
• Established date: 1999. 06
DASAN Network Solutions KOR
• Listed on Nasdaq date : 2003. 11
• NASDAQ Code : DZSI (Market cap. $98Mil. June 30, 2017)
• CEO : Jim Norrod & Yung Kim (Co-representative)
※ The acquisition of Zhone technologies • Number of employee : Around 250 employees
was completed on September 9, 2016
• Business : Network equipment R&D and production
• Location : Oakland, California
Zhone Technologies changed it’s name after M&A
10 Copyright© 2017 DASAN Networks, Inc.6.2 Network business global rank fluctuation after acquisition
■ Global FTTx Revenue By Vendor
DASAN Networks, Zhone DASAN Networks + Zhone (Source : Infonetics Research, 2Q2015)
1. Huawei 1. Huawei
2. Alcatel-Lucent 2. Alcatel-Lucent
3. ZTE 3. ZTE
4. Calix 4. Calix
5. Adtran 5. Adtran
6. Fiberhome 6. Fiberhome
7. Mitsubishi 7. Dasan Zhone Solutions
8. Zhone
9. ECI
10. Zyxel
11. Fujitsu
MTS UPDATA.NET
12. DASAN Networks MASKATEL LNTENO
MULTIMEDIA
PRIMUS OMNILEC T MOBILE
GRM TELUS
YADTEL TELEKOM SRBIJA
SRT KDDI
NORTH STATE VENTELO ELMAT KT
GOLDEN WEST CHTSK broadband SoftBank
CONSOLIDATED CURATEL
SAUDI TELECOM TOT
INTERBEL NTT
BIRCH PCCW
OGERO TELECOM BSNL VIETTEL
MOBILY LG U+
AXTEL CAT
TELECOM EGYPT
PRT
GTD ETISALAT
DASAN Area GVT FURUKAWA
COPACO
Zhone Area OPTICOMM
TELEFONICA
11 Copyright© 2017 DASAN Networks, Inc.6.3 Main Subsidiaries
▶ Business structure upstream by subsidiaries cooperation.
▶ Thermal solutions and Automotive application component, seeking synergy for IoT.
2016FY 2016FY
Sales 49.6Bil. ㅣOP -2.7Bilㅣ NI -4.7Bil. (KRW) Sales 36.9Bil. ㅣ OP 2.0Bil. ㅣ NI 1.2Bil. (KRW)
Handy
Solueta IoT Platform
Soft
[27.2%]
[17.6%]
Sales and producing conductivity material Software cooperation (Group ware, etc.) and IoT
for electromagnetic shield platform
2016FY 2016FY
[100.0%] Sales 120.2 Bil. ㅣ OP 3.9Bil. ㅣ NI 3.0Bil. (KRW) Sales 33.9Bil. ㅣ OP 0.07Bil. ㅣ NI -1.4Bil. (KRW)
DTS
DMC
[81.6%]
Automotive rubber component, Network and ACC (Air Cooled Vacuum Condenser),
camera system for vehicle Heat exchangers for industrial
12 Copyright© 2017 DASAN Networks, Inc.7.1 Overseas business status
Main Proceeding Korean domestic and overseas main customer
Worldwide active construction of High-speed Internet and mobile network.
Participation in government project, including India, France, etc.
Participation in global telecommunication carriers business in USA and Japan.
Merger with Zhone technologies, Nasdaq listed, communication networks equipment company.
Expecting doubled customers in 2017.
Dasan Networks Global Center
Sales R&D Sales R&D
India China Sales R&D
Korea Sales
Sales
Japan
France
USA Sales Sales
Sales R&D
Taiwan
베트남
13 Copyright© 2017 DASAN Networks, Inc.7.2 Business in United States
Status
■ Ongoing process to enter into telecommunication carrier market
• SPRINT decided to build their own mobile telecommunication networks after their acquisition by Softbank.
• Proposed mobile networks structure and had been preparing mobile backhaul solutions since 2015.
• Acquired international certification for the requirements of customers like MEF and completed vendor registration.
Expected effectiveness
• Having tier 1 level customer in US, from where internet has originated
• Having not only customer in US but also favorable business reference for global business
• Anticipating intensive capital expenditure by SPRINT for a couple of years from 2017
• Expecting favorable business relationship for the future business, as the case with Softbank
14 Copyright© 2017 DASAN Networks, Inc.7.3 Business in Japan
Status of existing customers
■ Expanding business in telecommunication carrier market
• Softbank enhanced mobile service quality with mobile backhaul equipment from 2009
: World's first GPON-based mobile backhaul solutions causing the reduction of Capex and Opex
: Maintaining strategic partnership for a long time
• Preparing for the second capital expenditure due to the cycle of investment
New business
■ Development of new customer
• Having one of major telecommunication carriers in Japan as a new customer
• Expecting new revenue by the new customer from 4Q of 2016
• Expecting the expansion of business with electricity companies and cable operators, etc. on top of the telecommunication carriers in 2017.
• Expecting active capital expenditure on 5G technologies for the period of 2017 to 2019, ahead of the 2020 Olympic.
15 Copyright© 2017 DASAN Networks, Inc.7.4 Business in Vietnam
Main progress
■ Continuous increase of market share
• Having Viettel Group, VNPT and other major service providers as customers through the development of businesses from 2014.
• Expecting doubled sales revenue every year between 2015 and 2017.
• Expanding business in Southeast Asian countries, including Thailand and Indonesia, on the basis of Vietnam.
Localization strategy
■ Cooperation with local educational institutions
• Agreement with Hanoi Science and Technology University on Electronic Communication Engineering Research, Education and Propagation Service.
• In the process of establishment of DASAN Lab.
• Multifaceted support for the training of communication technology experts.
• Appointing excellent scholarship student and providing the program of internship and full-time work at DASAN Vietnam.
■ Localization
• Established R&D center in Hanoi for telecommunication equipment development since 2011.
• Employment of local people to improve business performance and to support Southeast Asia business.
16 Copyright© 2017 DASAN Networks, Inc.7.5 Business in France
Main progress
■ Participation in the construction of high-speed internet network in France
• French local government’s optical network business
• Consortium and cooperation with local big corporations like NGE and FAYAT
• Signed MOU with NGE, including DASAN Networks’ supply of optical network communications equipment for optical network business.
• Signed MOU with FAYAT, including cooperation with the affiliated companies for the design and development of high-speed internet network,
maintenance and education.
• Consortium proposal to Alsace and Aude, and taking first purchase order from them.
Background of French government policy
■ The policy of improvement of digital industry in France
• Improving the relatively lagging digital industry
• Announcement of a plan to integrate cities and provinces in France in last February
• The plan to establish a broadband communications network throughout the France area with about 48 trillion won investments by 2025.
• Starting the construction of infrastructure of high-speed internet network for 34 million subscribers last year.
• Currently, it provides the services to 1 million households and the completion of the construction works will be expected to be done by next five
years.
17 Copyright© 2017 DASAN Networks, Inc.7.6 Business in India
Main progress
■ Participation in the construction of telecommunication infrastructure in India
• Signed MOU with APSFL, Andhra Pradesh state government carrier, and received the first purchase order.
• Plan to supply network equipment to 29 States in India starting from AP State.
• AP State, with 60 million population, having plan to increase internet service supply rate from current 2% to 30%, and to improve
internet speed from 2Mbps to 10Mbps.
Background of India government policy
■ The policy of Digital India
• Investment of 18 billion US dollars (approx. 20 trillion Won) by 2019.
• Government projects to provide broadband internet service to the whole India area.
• The AP State is the best place for investment among 29 provinces in India, having four-year consecutive double-digit growth rate.
• Agreement with DASAN Networks, being a strategic partner for the recent project of telecommunication infrastructure construction.
• Expecting new job creation and production technology transfer through the establishment of manufacturing company.
18 Copyright© 2017 DASAN Networks, Inc.8.1 Overall Performance [Networks business]
■ Sales (export ratio) in Network business ■ Total asset / Cash
(Bil won) (Bil won)
200.0
209.8 252.1 255.1
228.3
200.0
199.7
154.9 153.5 Total asset
130.8
100.0
100.0
Export 48%
40% Cash
Ratio 33%
23% 32.3
14.7 11.5 10.0
2013 2014 2015 2016
2013 2014 2015 2016
※ Network Business Only.
■ Operating Profit ■ Liability / Borrowing
(Bil won) (Bil won)
126.5
10.0
114.6
100.0
91.3 Liability
5.0 6.0
63.4
50.0 53.4
2.4 Borrowing
0.2 36.0 34.6 30.4
(0.4)
-1.0
2013 2014 2015 2016
2013 2014 2015 2016
※ Physical Spinoff in April 1, 2015
19 Copyright© 2017 DASAN Networks, Inc.8.2 Overall Performance [Groups accounts]
■ Sales ■ Asset / Cash
(Bil won) (Bil won)
3,747
CAGR 3,555
CAGR 222.8
3,000억 12.6%
200.0억 12.8%
Total asset
180.6 2,410 2,590
164.0 2,000억
142.7
100.0억 Cash
1,000억
528
346 170 340
2013 2014 2015 2016
2013 2014 2015 2016
■ Operating profit ■ Liability / Borrowing
(Bil won) (Bil won)
10.0
223.6
200.0 218.6
5.7
Liability
2.4
125.3
(4.1) 100.0 102.6
Borrowing
(13.3) 88.2
-10.0 66.4 68.6
45.6
2013 2014 2015 2016 2013 2014 2015 2016
20 Copyright© 2017 DASAN Networks, Inc.9. Vision
▶ Creating a synergy effect between primary business (Networks, Software, Car, Engineering, etc.)
▶ Continuous growth from new business (IoT, electronic vehicles , etc.)
Software l IOT
Network solutions
Network
Software
Solutions
Connected Car
Network solutions
Auto Parts Engineering
EMC
Automotive parts and Heat Exchanger
network solutions for automobiles
EMC Materials
21 Copyright© 2017 DASAN Networks, Inc.You can also read
