Samsung Electronics April 2005 18년 9월 12일 21시 44분 30초 snowday\SEC_Draft_0305.ppt snowday\SEC_Draft_0305.ppt

Company Overview 18년 9월 12일 21시 44분 30초 Chairman & CEO Kun-Hee Lee Vice Chairman & CEO Vice Chairman President Yoon-Woo Lee Jong-Yong Yun Doh-Seok Choi Corporate Technology Operations Corporate Executive Staff Digital Appliance Semiconductor LCD Telecommunication Digital Media • DRAM • SRAM • Flash Memory • System LSI • Handset • Wireless System • Broadband Equipment • TV/DVD • PC • Monitor • Printer • Refrigerator • Laundry Machine • Microwave • Air Conditioner • LCD Panel SEC’s Chairman & CEO is Kun-Hee Lee. Vice-Chairman & CEO Jong-Yong Yun serves as the hands-on chief executive of Samsung Electronics. SEC is broadly divided into 7 divisions including our 5 product divisions which are the Digital Media Business, Telecommunication Network Business, Digital Appliance Business, Semiconductor Business, and LCD Business. Total Employees : 123,153 ( Domestic : 61,889 Abroad : 61,264 ) Over 10,000 are Master’s and Doctor’s degree holders R&D staffs account for 30% of total employee base * As of 2004 1 snowday\SEC_Draft_0305.ppt

Financial Performance 18년 9월 12일 21시 44분 30초 Sales & Operating Profits Comparison with Global IT Leaders (2004) (Unit : KRW, Trillion) (Unit : USD, Billion) Sales: 21%, OP: 74% ’01~’04 CAGR of 57.6 Samsung Intel MS IBM Sales 55.3 34.2 36.8 96.3 Net Income 10.3 7.5 8.2 8.4 Total Equity 33.0 38.6 74.8 29.7 Net Income Margin 19% 22% 22% 9% ROE 34% 20% 12% 29% 43.6 39.8 32.4 26.1 18.5 12.0 7.5 7.2 Well Balanced Business Portfolio – Change in Organization Until last year, the business structure of Samsung Electronics was segmented into three divisions – Information & Home Appliances, Information & Communications and Semiconductors. Beginning this year, the Information & Home Appliances sector was reorganized into two separate segments – Digital Media and Home Appliances. Today, Home Appliances includes “White Goods”, while Digital Media encompasses all of our digital products such as HDTV, MP3 player, Audio/Video, Computers and Peripherals. As a result, we now have 4 major business divisions – Digital Media, Home Appliances, Information & Communications and Semiconductors. Information & Communications, known as the telecommunications business, has not changed. Semiconductors too, has remained the same and includes Memory, LCD, and System LSI products. 4.5 2.1 2.3 Semiconductor LCD Telecommunication Digital Media Digital Appliances 2 (1Trillion KRW is approximately 1Billion USD) snowday\SEC_Draft_0305.ppt

Strong Financial Structure 18년 9월 12일 21시 44분 30초 (Unit : KRW, Trillion) Assets 43.8 Liabilities & Equity 45 30 20 10 45 30 20 10 39.2 Cash Balance Other Liabilities Debt A/R & Inventories 26.9 20.8 Fixed Assets Total Equity Other Assets ’98 ’00 ’03 ’04 ’98 ’00 ’03 ’04 ’98 ’00 ’03 ’04 Cash Balance* 1.3 2.6 8.0 7.4 Total Equity 7.0 16.2 29.4 34.4 Net Debt / Equity 128% 9% -23% -21% Return on Equity* 5% 41% 22% 34% Despite the Asian economic crisis in ‘97, ‘98 and the recession in 2001, we have continuously improved our financial structure during the past 5 years. First of all, though the total revenue has increased by 75%, the total asset has only increased by 21% Secondly, account receivables & inventories have decreased by more than 40% demonstrating efficient operation and working capital management. Thirdly, total debt has decreased from 13.0 trillion Won in 1997 to 2.7 trillion Won in 2001. On the other hands, cash & cash equivalents have doubled Finally, retained earnings has increased significantly from 4.0 trillion Won in 1997 to 13.4 trillion Won in 2001. Cash Balance = Cash + Cash equivalents + S-T Financial instruments + Marketable securities (1Trillion KRW is approximately 1Billion USD) 3 snowday\SEC_Draft_0305.ppt

Brand Value Enhancement Fastest growing brand (30%) with $10.85 bn value in ’03 One of the fastest growing brands (16%) with $12.55 bn value in 2004 (Unit : USD, Billion) Rank Company 2003 2004 Change 1 SAMSUNG 10.85 12.55 16% 4

SEC’s Exports / Korea’s Exports SEC’s Stock Value as % of KOSPI Importance to Korean Economy 18년 9월 12일 21시 44분 30초 Samsung Electronics is an important contributor and driver of Korean economy. SEC’s Exports / Korea’s Exports SEC’s Stock Value as % of KOSPI Samsung Electronics 16.4% Samsung Electronics 18.2% Others 83.6% Others 81.8% As of year end 2004 (USD 45.6 Billion) As of Mar 31. 2005 (KRW 82 Trillion) 5 snowday\SEC_Draft_0305.ppt

Global Operations 93 Locations in 48 Countries Worldwide 18년 9월 12일 21시 44분 30초 93 Locations in 48 Countries Worldwide Samsung operates 88 offices and production complexes in 45 countries. Of this number, 28 are production subsidiaries, 34 are sales subsidiaries and 20 are branch offices. Also, We have 10 R&D center outside Korea, and 1 service center in Russia. Production Subsidiaries Sales Subsidiaries Production & Sales Subsidiaries Branch Offices R&D Center Distribution Center 19 35 8 18 11 2 6 snowday\SEC_Draft_0305.ppt snowday\SEC_Draft_0305.ppt

Global Diversification 18년 9월 12일 21시 44분 30초 Sales Contribution by regions (2004E) Others 1% Domestic 19% Asia 34% Others 3% Americas 26% Others 7% Europe 20% Asia 14% Domestic 21% Domestic 28% Semiconductor Domestic 22% Asia 51% Americas 16% Asia 31% Europe 27% Americas 24% Europe 12% Americas 22% Telecommunication TFT- LCD Others 3% Others 6% Europe 22% Asia 19% Domestic 21% Asia 24% Domestic 40% Americas 27% Europe 30% Total Europe 20% Americas 10% Digital Media Digital Appliance 7 snowday\SEC_Draft_0305.ppt

# 1 Product in the World (M/S, ’04E) Nand FLASH SRAM 35.0% 61.0% DRAM CDMA Handsets 20.6% 31.0% VCR Monitor 21.4% 21.1% LCD TV 23.3% 10.0% * Source : Samsung Electronics’ estimates 8

Semiconductor TFT-LCD Telecommunication Digital Media Business Highlights 18년 9월 12일 21시 44분 30초 Semiconductor TFT-LCD Telecommunication Digital Media Good morning, everyone. I am Andrew Chun, an Executive Vice President of Samsung Electronics. I am pleased to represent our Telecommunications Division. For next 15~20 minutes, I plan to talk about our division’s recent achievements, market trends, and business strategies. If you have any questions or comments, please do not hesitate to interrupt me during the presentation. snowday\SEC_Draft_0305.ppt snowday\SEC_Draft_0305.ppt

Leader in the Semiconductor Industry 18년 9월 12일 21시 44분 30초 Highest Growth Rate among Top Rankers Maintaining 2nd place for 3 consecutive years since 2002 1997 2000 2002 2004(E) M/S 2003~2004 % Change 1 Intel NEC Motorola TI Toshiba Hitachi Intel Toshiba NEC TI STMicro Motorola Intel Renesas TI Toshiba STMicro Infineon Intel TI Infineon Renesas STMicro Toshiba 14% 7.0% 4.4% 4.0% 3.9% +14% +52% +30% +29% +13% +21% +16% 2 3 4 5 6 7 * Source : IC Insights, SEC Memory market leadership is getting stronger 2003 2004 (E) MEMORY DRAM SRAM NAND FLASH 27% 31% 31% 31% 32% 35% 62% 61% 22% 30% * Source : Samsung Electronics’ estimates 9 snowday\SEC_Draft_0305.ppt

Memory Dominance in Revenue & Operating Profit 18년 9월 12일 21시 44분 30초 • Samsung Memory revenue - 2000 : 55% of next 3 players combined - 2002~2003 : Equivalent to next 3 players combined - 2004 : Larger than next 3 players combined • Maintaining high profitability regardless of business cycle 3Q04 -1 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 1 2Q03 3Q03 4Q03 2 1Q04 2Q04 ( Unit : USD, Billion) 4Q04 Samsung Others Samsung memory’s revenue in the 1st quarter this year was 12% larger than the next three players combined. The gap between competitors and Samsung has been significantly widening in terms of revenue seeing that Samsung’s revenue was almost equivalent to the summation of next three players in 2002 and 2003. From this, we can notice that Samsung is not a DRAM-oriented company any more and has a healthy and competitive product portfolio in the field of memory business. * Source : SEC, Companies’ IR data 10 snowday\SEC_Draft_0305.ppt

Sources of Competitiveness 18년 9월 12일 21시 44분 30초 1. Product Diversification - 4 Profit Engines allow maximized profit by capturing opportunities in all stages of a product life cycle 2. Advanced Technology - Design Rule and Cost Reduction - MCP Leading the cost reduction & maintaining the profitability - Cost reduction from geometry transition off-setting price declines - Initiate 90㎚ for DRAM, 70㎚ for NAND in 2005 MCP (Multi Chip Package) Competitiveness - Only Samsung can provide “Total Memory Solution” Leading edge products DDR2, GDDR3 2Gb/4Gb NAND Mainstream products Product Diversification DDR 1Gb NAND Specialty products RDRAM, GDDR Mobile DRAM Product diversification led to Samsung’s unique business model – the 4 profit engines Trailing edge products 64Mb Sync EDO 11 snowday\SEC_Draft_0305.ppt

Semiconductor TFT-LCD Telecommunication Digital Media Business Highlights 18년 9월 12일 21시 44분 30초 Semiconductor TFT-LCD Telecommunication Digital Media Good morning, everyone. I am Andrew Chun, an Executive Vice President of Samsung Electronics. I am pleased to represent our Telecommunications Division. For next 15~20 minutes, I plan to talk about our division’s recent achievements, market trends, and business strategies. If you have any questions or comments, please do not hesitate to interrupt me during the presentation. snowday\SEC_Draft_0305.ppt snowday\SEC_Draft_0305.ppt

【 Market Share (Shipment) 】 Achievements in 2004 18년 9월 12일 21시 44분 30초 Shipment : 30M (Large), 45M (Small/Medium) - YoY Growth : 58% (Large), 183%(Small/Medium) • Revenue Increased to 8.7 trillion won (67% Growth) Global #1 Position in Large Panel Shipment (M/S 22.1%) - M/S #1 in Note PC & Monitor panel - LCD-TV panel M/S : 15.6% 【 '03/'04 Shipment 】 【 Revenue 】 【 Market Share (Shipment) 】 (M units) 45 (KRW Trillion) 8.7 Note PC Monitor LCD-TV 5.2 25.3% 22.4% 15.6% 30 19 16 03 04 03 04 03 04 SEC Mkt SEC Mkt SEC Mkt Large Small/Medium 12 snowday\SEC_Draft_0305.ppt

LCD-TV Market & 7G Ramp-up in 2005 18년 9월 12일 21시 44분 30초 The LCD-TV market is growing by 76% in 2005 ( 9M →16M) - 36% of LCD-TV panel shipment will be 30” or lager - Market Leadership of Samsung in Large Size LCD-TVs → Overall M/S : 23% (3.8M Shipment) & Over 30” M/S : 26% (1.5M Shipment) Greater market dominance with the launch of 7G - Samsung’s launch of 7G line is one year ahead of other competitions - 7-1 Line started its mass production in ’05 March (Full capacity: 60K/Month) - 7-2 Line will start ramp-up in 1H ’06 (Full capacity: 45K/Month) As you can see in this slide, Samsung’s important milestones have been listed along with a graph of its average total sales for each decade. Average sales for the 1970s was $500 million. Samsung was established in 1969 as a home appliance company. By 1972, Samsung began production of black-and-white TV sets. Semiconductor wafer fabrication was begun in 1974 at a separate company called Korea Semiconductors. Samsung began its global expansion in 1978 by establishing an overseas sales office in the US. In the same year, our exports equaled US$1 billion. 13 snowday\SEC_Draft_0305.ppt

Semiconductor TFT-LCD Telecommunication Digital Media Business Highlights 18년 9월 12일 21시 44분 30초 Semiconductor TFT-LCD Telecommunication Digital Media Good morning, everyone. I am Andrew Chun, an Executive Vice President of Samsung Electronics. I am pleased to represent our Telecommunications Division. For next 15~20 minutes, I plan to talk about our division’s recent achievements, market trends, and business strategies. If you have any questions or comments, please do not hesitate to interrupt me during the presentation. snowday\SEC_Draft_0305.ppt snowday\SEC_Draft_0305.ppt

Achievements in 2004 Volume grew to 86.6M units in ’04 from 55.7M in ’03 (55%↑) Ranked as the 2nd player in revenue with $17.2 billion Maintained the highest ASP in handset industry Sales Volume (mil.) Revenue (bil. $) ASP ($) 207.6 29.0 198 198 182 17.2 161 104.5 16.8 86.6 140 8.4 49.4 8.1 44.4 NOK MOT SEC SIE LG NOK SEC MOT SEMC LG SEC SEMC LG MOT NOK (Source : Strategy Analytics, 2005) 14

Samsung’s Market Presence in 2004 No.1 in CDMA Market : 28M Units (M/S 20.6%) Top-tier Player in GSM Market : 57M Units (M/S 13.2%) CDMA GSM 5th 14M 3rd 57M '01 '02 '03 '04 4th 22M 33M CDMA 1st 28M units 1st 1st 2nd 2nd 3rd 3rd 4th 4th *Source : Strategy Analytics 15

Semiconductor TFT-LCD Telecommunication Digital Media Business Highlights 18년 9월 12일 21시 44분 30초 Semiconductor TFT-LCD Telecommunication Digital Media Good morning, everyone. I am Andrew Chun, an Executive Vice President of Samsung Electronics. I am pleased to represent our Telecommunications Division. For next 15~20 minutes, I plan to talk about our division’s recent achievements, market trends, and business strategies. If you have any questions or comments, please do not hesitate to interrupt me during the presentation. snowday\SEC_Draft_0305.ppt snowday\SEC_Draft_0305.ppt

(Operating Margin / Unit : %) Consolidated Financial Results 18년 9월 12일 21시 44분 30초 (Unit : Trillion KRW) (Operating Margin / Unit : %) 20 17.7 15.9 15 15.4 15.0 15 12 12.8 9 10 6.3% 6 5.2% 3.6% 5 3.2% 2.1% 3 ’00 ’01 ’02 ’03 ’04(E) Monitors Digital Video (DVD, VCR) Printers TVs Computer Operating Profit 16 snowday\SEC_Draft_0305.ppt

Products with Top 3 Market Share 2003 2004 (F) 2 → #1 PJ-TV 14.5 18.7 PDP TV 9.8 12.8 4 → #3 LCD TV 15.0 16.5 #2 Monitor 21.3 21.4 #1 DVC 10.9 15.6 4 → #3 DVDP 16.3 17.0 2 → #1 Laser Printer 18.3 23.9 #2 17

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