1. 4/26/ :25 PM
Merriman Curhan Ford & Co. 2nd Annual IP Video Conference March 3, 2008
NEWLIGHT\Roadshow\55 Road Show.ppt

2. 4/26/ :25 PM
Opnext
“ Opnext is a leading designer and manufacturer of transmit and receive optical modules and components which enables high-speed telecommunications and data communications networks globally”
NEWLIGHT\Roadshow\55 Road Show.ppt

3. Demand for Bandwidth is Growing Exponentially
4/26/ :25 PM
Demand for Bandwidth is Growing Exponentially
Deployment of Broadband Access Capabilities (CATV/FTTC/FTTP) +
Proliferation of applications
Bandwidth Demand
IP-TV
Online Gaming
With the deployment of broadband pipes to the consumer, networks are running out of bandwidth as the end users have adopted bandwidth intensive applications
The so called capacity glut of 2001 has been consumed
Applications have moved from text =>images => video
YouTube claims that viewers are watching more than 100mm videos per day
Netflix announced distributing movies over the internet
HDTV will be in a majority of households by 2010,
- 20M (2005) => 175M (2010)
- BW HD = 5X std (10MB/s)
Over 40% of people who play a computer game play online
Telecom companies are aggressively rolling out new services
based on IPTV
Multimedia
Video Conferencing
Peer-to-Peer
HD Video
Storage
Now
Future
NEWLIGHT\Roadshow\55 Road Show.ppt

4. Total IP Traffic IP Traffic will double every two years
4/26/ :25 PM
Total IP Traffic 5%
13% 6%
43%
33%
IP Traffic will double every two years
Consumer IP traffic is growing at a 52% CAGR
One third of all Internet Traffic in 2011 will be non-Internet traditional video services
Source: Cisco January 2008
NEWLIGHT\Roadshow\55 Road Show.ppt

5. IP / Optical Infrastructure
4/26/ :25 PM
Network Architecture
IP / Optical Infrastructure
Video On
Demand Servers
Voice Application
Servers
PSTN
Multi-
Service
Edge
Router
Metro
Sonet/SDH
Rings
Internet
ONU
OLT
PON
Head End
Cable
Modem
MSO
Residential
Network
National IP Network
DSLAM
xDSL
Corporate Network
All Optical Backbone
NEWLIGHT\Roadshow\55 Road Show.ppt

6. Opnext Core Business Continues To Be High-Growth 10G and 40G Segments
4/26/ :25 PM
Opnext Core Business Continues To Be High-Growth 10G and 40G Segments
Total Optical Component Spending ($mm)
10G and 40G Module Spending ($mm)
10G and 40G comprise ~80% of our revenues
$3,766
$1,218
$3,236
24% CAGR
63% CAGR
$983
20% CAGR
$794
$36
22% CAGR
This inflection point can best be seen in the robust growth expectations for both telecom and datacom 10G optical component spending
Total mkt will grow 45% from while the 10G and 40G will grow 135%.
Telecom will grow at a 23% CAGR reaching $666mm by 2009 and Datacom coming from a smaller base will grow at a faster 44% CAGR reaching similar levels by 2009
Within the telecom market, the new pluggable TRVs such as XFP along with the tuneable TRVs are growing closer to 40-50%
Source: Ovum-RHK 2007, LightCounting 2008, and Opnext
NEWLIGHT\Roadshow\55 Road Show.ppt

7. Selected Opnext Customers
4/26/ :25 PM
Selected Opnext Customers
Major Telecom Customers
Major Datacom Customers
NEWLIGHT\Roadshow\55 Road Show.ppt

8. Annual Financial Data 4/26/2017 10:25 PM
NEWLIGHT\Roadshow\55 Road Show.ppt

9. Quarterly Financial Data
4/26/ :25 PM
Quarterly Financial Data
NEWLIGHT\Roadshow\55 Road Show.ppt