SAMSUNG FIBEROPTICS

SAMSUNG SAMSUNG FIBEROPTICSFIBEROPTICS

www.samsungfiberoptics.com

1

Samsung Electronics Overview1

Samsung Fiberoptics Overview 2

Samsung Fiberoptics Products3

Samsung Fiberoptics FTTH4

Contents

2

Chairman & CEO Chairman & CEO

Kun Kun HeeHee LeeLee

Vice Chairman & CEO Vice Chairman & CEO

JongJong Yong Yong YunYun

TelecomTelecomNetworkNetwork

PresidentPresident

KiKi Tae LeeTae Lee

SemiconductorSemiconductor

PresidentPresidentChang Chang GyuGyu

HwangHwang

LCDLCD

PresidentPresident

Sang Wan LeeSang Wan Lee

Digital MediaDigital Media

PresidentPresident

Gee Sung Gee Sung ChoiChoi

Digital Appliance Digital Appliance

PresidentPresident

Hyun Bong LeeHyun Bong Lee

Organization

FIBEROPTICSFIBEROPTICS

3

Continuous Growth in RevenueContinuous Growth in Revenue

24.4

33.2 36.4

55.2$56.7B$56.7B

Annual GrowthAnnual Growth

2001 2002 2003 2004 2005

BreakdownBreakdown

LCD

17%LCD

17%

Telecommunication33%

Telecommunication33%

Digital Media

11%

Digital Media

11%

(Parent only basis excluding Financial Affiliates)

Business Performance

Semiconductor

32%Semiconductor

32%Digital Appliance

6%Digital Appliance

6%

4

Sustaining High Profitability Sustaining High Profitability

Operating ProfitOperating Profit

2001 2002 2003 2004 2005

$8.0B$8.0B6.2 6.0

1.7

11.5

Operating MarginOperating Margin

2001 2002 2003 2004 2005

(Parent only basis excluding Financial Affiliates)

14.0%

20.9%

16.5%

18.8%

7.1%

Business Performance

5

Digital ApplianceDigital Appliance Digital MediaDigital Media

LCDLCD

5 Business Areas5 Business Areas

SemiconductorSemiconductor

TelecommunicationTelecommunication

Business Areas

6

DDIDDI

Market ShareMarket Share18.0%18.0%

MCPMCP

Market ShareMarket Share29.0%29.0%

TFT LCDTFT LCD(Large Size Area))

Market ShareMarket Share20.0%20.0%

DRAMDRAM

Market ShareMarket Share32.1%32.1%

SRAMSRAM

Market ShareMarket Share24.0%24.0%

FlashFlash

Market ShareMarket Share34.0%34.0%

Color MonitorColor Monitor

Market ShareMarket Share22.3%22.3%

HandsetHandset

Market ShareMarket Share12.6%12.6%

Leading Products

7

The 100 Top Brands (2006)The The 100100 Top Brands (2006)Top Brands (2006)

SONYSAMSUNG20

..

..INTEL5GE4IBM3MS 2COCA-COLA1

CompanyRank

26

Brand Status

2003 2004 2005 2006

12.612.6

2006 Brand Value

15.015.0$16.2B$16.2B

10.910.9

8

Samsung Fiberoptics Overview2

Samsung Fiberoptics Products3

Samsung Electronics Overview1

Samsung Fiberoptics FTTH4

Contents

9

GGumi Plant, KRumi Plant, KR

General ManagerGeneral ManagerYoung Young TaekTaek KimKim

Organization

MarketingMarketing

Hainan Plant, CNHainan Plant, CN

Vice PresidentVice PresidentJooJoo Sup ShinSup Shin

SeungSeung GooGoo BaekBaek

CEO CEO Kyung Sup ChungKyung Sup Chung

Overseas SalesOverseas Sales

Sung Sung HeonHeon YoonYoon

National SalesNational SalesChina SalesChina Sales

Jin Park Jin Park Jun Young LeeJun Young Lee Tae Tae YounYoun WonWon

Strategy MarketingStrategy Marketing

Vice PresidentVice PresidentJeongJeong KeunKeun LeeLee

10

Production Base

vv

Hainan

Haikou City, Hainan

GumiSeoul(Sales)

Gumi City, Kyungbuk

Fiber & CableFiber & CableFiber & CableFiber & Cable

11

History

1985 : Optical Fiber Export to USA1984 : Optical Cable Supply to KT (Korean NO.1 Carrier)1983 : Fiberoptics Division Established

1985 : Optical Fiber Export to USA1984 : Optical Cable Supply to KT (Korean NO.1 Carrier)1983 : Fiberoptics Division Established

1998 : Optical Cable Supply to TELKOM SA Ltd. In S. Africa ($ 35M)

1995 : Optical Cable Supply to Czech Telecom ($ 80M)

1998 : Optical Cable Supply to TELKOM SA Ltd. In S. Africa ($ 35M)

1995 : Optical Cable Supply to Czech Telecom ($ 80M)

2006 : New Manufacturing Process of Fiber Developed2005 : Major Supplier of TOT ($ 40M)2004 : New Hainan (China) Factory Invested 2002 : Sole Vendor for Network Rail FTN ($ 45M)2000 : Major Supplier for Adelphia and Comcast($ 76M)

2006 : New Manufacturing Process of Fiber Developed2005 : Major Supplier of TOT ($ 40M)2004 : New Hainan (China) Factory Invested 2002 : Sole Vendor for Network Rail FTN ($ 45M)2000 : Major Supplier for Adelphia and Comcast($ 76M)

12

Key Performance

Samsung is globally fieldSamsung is globally field--proven, proven, reliable partner in Fiberoptics industryreliable partner in Fiberoptics industry

13

Broadband Leadership

KOREAKOREA

Broadband Subscribersin Korea (End of July. 2006)

Korea is the number 1 in the penetration ratio (73%) of broadband service in the world.

13,719,19413,719,194

xDSLxDSL

37%

43%

19%Optical LANOptical LAN

Cable ModemCable Modem

OthersOthers 1%

~ ~ 30% of nation30% of nation’’s broadband s broadband networks have been deployed by networks have been deployed by Samsung optical fiber & cableSamsung optical fiber & cable

14

Superior quality from end-to-end,optimized process control

Perfect trouble shooting of unexpected problems by historical database management

Vertically Integrated Line-up

Preform

Fiber

Cable

15

Technological Expertise

In-Depth Knowledge & Experience in Fiber & Cabling Parameters

The years of expertise in fiber, cable design and manufacturing allows us to

provide optimized process

We’ll make great efforts to create superior products and services, thereby to surpasscustomer's expectations all over the world

16

Internationally Certified Quality

ISO 9001ISO 9001

Optical fiber, Fiber optic cableOptical Component

ISO 14001 / OHSAS 18001ISO 14001 / OHSAS 18001Factory environment management system

TL 9000TL 9000Optical fiber, Fiber optic cableOptical Connector

TelcordiaTelcordiaGR-20 Optical fiber, cable

17

Samsung Fiberoptics Products 3

Samsung Fiberoptics Overview 2

Samsung Electronics Overview1

Samsung Fiberoptics FTTH 4

Contents

18

Products Portfolio

Conventional Single Mode Fiber (G.652.B)Best-in-class optical & geometrical specification (Recently Enhanced)Excellent compatibility with other SMF fibers

Non-Zero Dispersion Shifted Fiber: Medium Dispersion (G.656)

Optimized for high speed long haul transmission (2.5 ~ 40G/bs)Extended bandwidth(S+C+L-band)

Low Water Peak Fiber (G.652.C/D)50% more wavelength spectrum, 33% more channelsOutstanding long-term reliability

SingleModeFiber

SingleModeFiber

19

Products Portfolio

ConventionalMultimode Fiber (50 & 62.5 um)

50/125 um: Min. 500/800 MHz.km(@ 850/1300 nm)

62.5/125 um: Min. 200/600 MHz.km(@ 850/1300 nm)

Suitable for riser, plenum cable in premise network

1G 50 um Multimode Fiber (OM2)

Meets or exceeds IEEE802.3z standard

Min. 600 m transmission at 850 nm & 1300 nmEffective Modal Bandwidth, Over-filledLaunch Bandwidth: Min. 500 MHz.km

MultiModeFiber

MultiModeFiber

20

Products Portfolio

Armored

Non-Armored

Steel Tape/Wire Armored Single/Double Jacket for Direct Burial/Aerial

Up to 432 Fibers, Gel / Dry Core, Enhanced Sheath Materials,Proven Performance Design for Duct Application

LooseTubeCable

LooseTubeCable

MiniLiteTM Cable

Loose tube cable with reduced diameter& weightSignificant improvement in installation time means economic use of CAPEX

21

Products Portfolio

FastBlowTM Cable

Micro cable for air blown installation or override application

Low Smoke Zero Halogen Cable2~288 FibersDry Core Design for Water Blocking

LooseTubeCable

LooseTubeCable

22

Products Portfolio

RibbonCable

RibbonCable

Ribbon in Loose Tube

Slotted Core Ribbon

Max. 864 FibersMax 12-Fiber Ribbon for Mass Fusion SplicingCentral Uni-Tube/ Multi-tubeGel-filled / Dry Core Design for Metro Area Network

Max. 1,000 Fibers4,8-Fiber RibbonGel-filled / Dry Core Design for Metro Area Network

23

Products Portfolio

PremiseCable

PremiseCable Available both in single mode fiber type and

multi-mode fiber typeHighly flexible and lightweight for easy handling

Simplex Cable

Duplex Cable

Distribution Cable

Two tight-buffered fibers in a small packageInterconnect cable for riser and general purpose Indoor applications

Sub-unit identification by number print on sheathTDR model, TDZ model

24

Products Portfolio

AerialCableAerialCable

ADSS Cable

Max. 288 FibersEFS Analysis to Avoid DBA with TRPEComplete Installation Guide (IEEE P1222)Anti-Bulletin Design Available

Drop CableUp to 4 tight-buffered fibers in a small packageFTTH Solution

Figure- 8 Steel Stranded Wire, Self-Supporting Designfor Aerial Application

25

Optical Distribution Frame

Feature / Benefit

Easy installation with angled adapter panelEasy splicing with removable coverBuilt-in storage drawerLockable covers for security

Applications

19" Rack- mountable FDF

12, 24, 48, 72, 144 core available

Changeable specification upon request

Optical Distribution Frame

Rack mounted ODF & splice storage

Connection&

Distribution

Connection&

Distribution

26

Optical OutletOptical Outlet

147 x 88 x 30 mm

Wall-mounted type

Optic 4port

Optic 2 Port

SC 2port / RJ45 2port 100 X 130 X 30 mm

Optical-UTP Hybrid

Connection&

Distribution

Connection&

Distribution

27

Connector / Patch Cords

MU Jumper CordMU Jumper CordLC Jumper CordLC Jumper CordSC Duplex Jumper SC Duplex Jumper Cord Clip DesignCord Clip Design

SCSC FCFC STST

Connection&

Distribution

Connection&

Distribution

28

Samsung Fiberoptics FTTH4

Samsung Fiberoptics Overview2

Samsung Electronics Overview1

Samsung Fiberoptics Products3

Contents

29

SamsungSamsung FTTH SolutionFTTH Solution

30

Service based on FTTH network

FTTHFTTH

I P - T VI P - T V

Over 100Mbps per subscriber, Over 100Mbps per subscriber, QoSQoS guaranteed, TPS availableguaranteed, TPS available

Home NetworkHome

Network

PC/TV InternetPC/TV InternetVoIPVoIP

VoDVoD

31

Global FTTH Deployment

EuropeEurope 25 countries, over 0.85 Mil. Subscribers under service2.0 Mil. subscribers by 2008

KoreaKorea 20 Mil. Broadband Subscribers by 2010IT building authentication system - Special grade emblem : 4 core fiber + UTP

JapanJapan Currently Leading Country in the World“30Mil. Optical fiber access Customers by 2010”(NTT)

USUS Verizon : 2.0 Mil. (Home pass) FTTP network in 2005SBC : 18 Mil. Capacity TPS network by 2007

32

OTB

Joint Closure

Optical Outlet

Single House Area

Central Office

Apartment Area

FTTH Architecture

CoreNetwork

33

FTTH Network [Korea]

Joint ClosureSplitter

L/T Cable

Drop Cable

Optical Termination Box/ Splitter

Optical Optical OutletOutlet

ONTONT

Pole mounted Optical Termination Box (OTB) with splitterGE-PON system with 2-step splitter : 1X4 and 1X8Small size, Light weight Drop cable with Bending Insensitive Fiber (BIF)Use of FA connector for reducing labor cost KT Start to install from 2005- 2006 : 120,000 and 1.8Mil. by 2009 for detached house area

STBSTB

34

Benefits of Samsung FTTH Solution

Field proven quality products

Offers the best “Performance – to – Cost” solution

Vertically integrated full line-up for FTTx network

35

The End

36

FTTH Network

Apartment

IDF

FDF

FDF

IDF

IDF

Terminal Box

37

FTTH Network

Feeder Feeder NetworkNetwork

DATA

Video

Voice

OLT

FDP FDF

Joint closureSplitter

L/T cable

Drop Cable

Home

Related ProductsRelated Products

ONTOptical Outlet

STB

38

Highlighted Products

Low water peak fiber (G.652.C/D)Guaranteed long-term lifetime 50% more wavelength spectrum and 33% more channelsSuperior PMD & DispersionExcellent compatibility with any commercial single mode fibers

Fiber

39

Highlighted Products

Today’s and Future Long Haul N/W ApplicationAdvanced NZDSF (G. 656)Expanded Bandwidth Operation (S + C + L)Large Effective Area for Low Non-linear effects2.5 G, 10 G, 40 G CapabilityLow PMD for High Data Rate Transmission : < 0.04 ps/rtkm

UltraPass™ Fiber

1400 1450 1500 1550 1600 1650-10- 5

5

Dis

pers

ion

(ps/

nm/k

m)

Wavelength (nm)

1520

S-band C-band L-band

SMFSMF LEALEA

0

10 RSRS

LEA: Large Effective AreaRS: Reduced Slope

UltraPassUltraPass™™

8.5 ps/nm•km

4~5 ps/nm•km

40

Highlighted Products

Loose tube cable with reduced diameter & weight Reduced diameter enables conduit & duct space savingsLight weight & small diameter allows for easy handlingSignificant improvement in installation time means economic use of CAPEX

MiniLite™ Cable

Diameter Weight

25% 47%

MiniLite vs. Conventional L/T (72C)MiniLite vs. Conventional L/T (72C)

41

Highlighted Products

Drop Cable

Flat Type

Figure 8 Type

Feature / Benefit

Up to 4 tight-buffered (up to 900 µm) fibers in asmall package

Available both in single mode fiber type and multi-mode fiber type

Highly flexible and lightweight for easy handling

Interconnect cable for riser and general purposeindoor applications

Flame retardant outer jacket

Compliant with IEC 60332-1

42

Highlighted Products

FastBlow™ Cable

Air Flow

Override

Micro cable for air blown installation or override applicationMax. Φ 6.7 mm for 72 F micro cableValue Proposition- Lower initial capital investment- Future proof network - Quick & smooth installation

43

G-PON, E-PON System Network

1.25~2.5Gbps

1:64

44

AON System Network

DATA

IP Video

Voice

RF Video

CATV, Satellite TV VoIP

Data

A house

Video

VoIP

Data

VideoCPE

APT

Backbone Switch Ethernet Switch

MDF

CPEBackbone Switch

Ethernet Switch

CO

45

Field Assembly ConnectorField Assembly Connector

Field Installation in termination box or inside of house.Simple, Fast & Easy InstallationWithin 1 min assemble timeInsertion Loss [SMF]- Insertion Loss ≤ 0.4 dB- Reflection Loss ≥ 40 dB

Working Time

Working Cost

Fusion Splice FA Connector

1 0.6

1 0.7

Strong PointsProofed Reliability

Confirm connection loss on spot

Weak PointsNeed high cost Equipment

Need power (Battery)

Difficult Working condition

No need Equipment

Easy, simple Work

No enough Reference Not confirm connection loss on spot

46

이집트이란쿠웨이트사우디

호주태국필리핀몽골

한국일본중국인도

47

미얀마스리랑카싱가포르리비아

알제리캄보디아브루나이인도네시아

네팔카타르베트남말레이지아

48

러시아덴마크스웨덴핀란드

폴란드슬로베니아노르웨이체코

미국프랑스영국독일

49

브라질멕시코캐나다우즈베키스탄

불가리아그리스루마니아슬로바키아

우크라이나카자흐스탄이탈리아벨기에

50

볼리비아칠레페루아르헨티나

말리수단남아프리카공화국앙골라

잠비아나이지리아모잠비크탄자니아

51

•우리나라 : 감사합니다. •영어 : Thanks. •독어 : Danke. (당케) •불어 : Merci (메르시) •스페인어 : Gracias (그라시아스) •중국어 : 謝謝 (셰셰) •네덜란드어 : Dank u •일본어 : ありがとうございます•포루투칼어 : Obrigado•태국 : 콥쿤카 (여자), 콥쿤캅(남자) •이탈이아어 : Grazie (그라치에)•그리이스 : 에프하리스토•아랍어 : shukran Jaziilan (슈크란좌질란) •러시아어 : Спосибо (스빨시바)

52