Highest Rated Cellular Telecom Company Globally

1
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2
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Perfect Link Makes Another World
1996
1997
1998
1999
2000 Current

• ??????
• 1?? ?? ??
• ????? ??
• ??? ??
• 3Com???? Top
• Distributor ??
• Marconi, AMP??
• NSI NDI ?? ??

• ??? ??
• EW 2000 ??
• Cabletron??
• ?? ??

• ????? ??(94?)
• ??? ?? ??
• (???)??

• ???? ? ????
• 3Com?? Distributor/
• Network System
• Integrator ??

• ????
• -Cisco Systems
• -Sitara
• -WatchGuard
• -Extreme
• -Alcatel
• -Cachefllow
• EW 4000 ??
• ISO9001 ?? ??
• ?? ?? ??

Mission ?? ????? ??? ?? Internet network
solutions ??
3
Business Portfolio
Intelligent Solution
Security
Traffic MGMT
Cache
Value Added Solution
Retail Automation
VPN
VPN
VoIP
Network Integration
EtherWire
Cabling
Data Switching
Access Network
Optical
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Business Groups Customer Base
5
System Integration

• ?? ?? ???? ??? ??? ??? ??
• ??? ??? ??
• Hardware? software? ?? ??? ??

• TELCO/ISP
• ?? ????? Core? ? ?? ?? ??? ??
• ??? ISP?? Network System ????
• Internet Data Center ??
• ???? ? ? ??? ?? ??

• SOLUTION
• ??? ? ??? ???? ??? ?? ? ?? ??
• ??, ??, ??? ???? ??? ?? ? ?? ??
• ??, ??? ? ????? ???? ??? ?? ? ?? ??

6
Channel

• ??? ?? ???? ???? ?? ?? ? ??
• ?? ???? ??? ??? ?? ?? ? ??
• ???? ?? ? ?? ???? ??
• Marketing Fund ??
• Partner Rebate Program??
• ???? ????? ?? ?? ??
• ??? ??? Business Consulting ??
• Buying Power? ??? ?? ?? ?? ??

7
Retail Automation

• Electronic Shelf Label (ESL)
• Price Label Distribution
• Customizing ESL Managing System
• Developing ESL System
• Store Space Management
• Store Space Design
• Customizing Space Management System

Selling price
Solar Battery
Market price
Product Code
Product name
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Broadband
High Speed Internet Access
CDN
ENVIRONMNENT

• Internet User of 20 million
• (High speed internet penetrated 30)
• More diverse contents requiring larger
• bandwidth
• Internet Traffic Congestions
• E-Community and E-appliances
• Construction Companies brand image
• upgrade
• Alliances between Const. Co and ISPs
• Consolidation of ISP IDC players
• More reliable Authentification Internet
• Security solutions available

Internet Security
Caching
Wireless Access
Internet QoS
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Selected Customer List

• ???? IDC (??, ??, ??)
• ?/ ?? ?? ??
• Palm Spring, a Cyber APT
• ???? ???
• ??????????(KNTDS) ??
• ??????
• Cyber APT
• ???? ???????
• ??? ??? ?????
• GCT-Korea
• ???
• ??? ???

SYSTEM INTEGRATION/BROADBAND
CHANNEL

• ??? IC
• ?????
• ?????
• ?? ???
• Seven Eleven ???

RETAIL AUTOMATION

• ??????
• ?????
• ??????
• ?????
• ?????
• ???? ???
• ??? ???
• ??????
• ??????
• ???????
• ????????
• ???????
• ??????
• ?????
• ???????

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Strategic Directions
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Strategic Businesses in 2001
Wireless
High Speed Internet Access Business
Telco/ISP Solution Business
Intelligent Network Solution
Electronic Shelf Label System Business
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New Business

• Channel
• Network
• Installation

• Generating additional Revenues
• Pioneering/ Disseminating emerging IT solution
• Increasing gross profit margin
• Hedging foreign currency risk

• ICN
• Security
• QoS
• Caching
• CDN

• Value-added
• VoIP
• VPN

• High-Speed
• Internet Access
• Domestic
• Overseas

• Wireless
• BWLL
• WLAN

• Broaden/deepen Vendor Relationship
• Proprietary network equipment
• Technical Business Consulting
• Invigorate internal sales efforts
• MA Strategic Alliances with
• domestic/overseas Partners

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Korea Links Evolution Path

• Why
• Natural Market Evolution
• Competitive Advantage
• Bigger Size of Transactions
• Higher Margins
• Recurring Revenue

• High Speed Internet Solution
• Value added Intelligent Network Solution
• Network Installation Business
• Managing Networks and Consulting
• Overseas Business

• How
• Continues pursuit of RD efforts
• Development/provision of emerging solutions
• Acquisition/Retention of integrators to deepen
• broaden customer relationship
• Deepen vendor relationship

• Channel
• Solution

Design and implementation of networks for
Telco/ISP, Enterprises and Public Institutions
1999
2000
2001
2002
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KLCP (Korea Link Certified Partner Program)
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KLCP (Korea Link Certified Partner Program)

• Launching the program in Apr. 2001
• ?????/??/?? ???
• ??? ??? ??? ??? Incentive ??
• ??? ??? ?? ??? ? Incentive ??
• ????? ?? ?? ??access?? B to B ?? ????? ??

• ?? ??
• ????? ?? ????? ?? ??
• ???? ??? ??? ?? (Pareto? 80/20 ??)
• ?????? Rebate, MDF?? ?? ??? ???? ?? ????

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KLCP (Korea Link Certified Partner Program)
http//www.korealink.ne.kr/html/partner/cps/cps_6.
html
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RD
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RD Directions
???? ??? ??? ?? RD ???? ??? ??
SDSL Access System
EW4000R
EW4500R
EW6000R
Router Net Finder
Gigabit Switch

• SDSL(2.3Mbps)
• L3 Switch, Router
• WAN Interface
• 24/48 Port Shelf Type

• SDSL(4.6Mbps)
• G.shdsl Chip
• Ethernet Bridge
• ASIC CHIP
• L3 Switch,Router
• WAN Interface

• VDSL(1030Mbps)
• Ethernet/ATM Interface

• Enterprise
• Router
• Edge Router

• 10/100 Switch
• Coaxial/Fiber
• Gigabit Switch
• IP Routing Based
• QoS
• Supporting voice
• multimedia stream switch

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EtherWire

EtherWire 2000
EtherWire 4000

• ?? ??? ??, SNMP(Simple Network Mgt.Protocol), ???
  ???? ??? ??
• ?????? EtherWire4000??? ?? ? ?? ?? ????? 5km??
  ??? ?? 2.3Mbps ??? ??? ?? ??
• ?? APT? ?? ??? ?? ???, ?? ??? ????, ISPs?
  micro-ISPs? ?? ??

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RD Fields
BSP/Driver,RTOS, Protocol, SNMP, Other
Applications
S/W
System
Small Router, SDSL Router, Gigabit Switch,
G.shdsl system, VDSL System
H/W
System Test, Quality/Prod, Control,
Purchasing/Inventory Control, Outsourcing
Production
B2B/B2C, E-Commerce System, Security Solution
E-Commerce
Internet
Portal Service System
Web
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Business Partner ISSAN, An ISP
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ISSANs Business Area
High Speed Internet Service for office
High Speed Internet Service for APT
ISSAN
Security
Leased Line
Wireless Internet
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ISSANs Scope of Service
Internet Education
Internet Telephony
On-Demand Internet Service
Communities
ISSAN
Shopping Mall
Apt. Mgt
Internet Billing
House- holds
Network Installation Consulting
Contents Development
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Financials Shareholders
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Revenue Net Income
Revenue
Net Income
(UnitKRW bn)
(UnitKRW bn)

• 2000 EPS 314?, ROE 10
• 2001(E) EPS 1,109? (Fully Diluted)

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Gross Profit Gearing
(UnitKRW mil)
(UnitKRW mil)
Interest bearing debt/(interest bearing
debttotal shareholders Equity)
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KL Operating Margins vs. industry
()
(source Samsung Securities)
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Revenue Breakdown in 2001
(UnitKRW mil)

• Broadband??? ??? access solution, ??, VoIP, VPN,
  Intelligent Contents Network solution, ??? ?
• Channel?/?? Switch, Router, Hub, LAN Card ?
• System IntegrationTelcos ISPs ?? IT ????, ?
  ??? ????, ????, ??? ????? ?? NI ????
• Retail Automation??? IC, ?????, ?? ??? ?

?? ??? 1,400??
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Shareholding Structure

• ??? 67.6 ??
• ? ??? 1,352 ??
• ?? ?? 79
• ?? ?? 30
• (2000.12.31 ??)