1. Samsung Electronics April 2005 18년 9월 12일 21시 44분 30초
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2. 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
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3. 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
Net
Income
Total
Equity
Net Income
Margin % % % %
ROE % % % %
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)
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4. 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*
Total Equity
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 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
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5. 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 Change
1 SAMSUNG % 4

6. 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
(KRW 82 Trillion) 5
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7. 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
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8. 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
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9. # 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

10. 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.
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11. 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% %
32% %
62% %
22% %
* Source : Samsung Electronics’ estimates 9
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12. Memory Dominance in Revenue & Operating Profit
18년 9월 12일 21시 44분 30초
• Samsung Memory revenue
: 55% of next 3 players combined
- 2002~2003 : Equivalent to next 3 players combined
: 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
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
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13. 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
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14. 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.
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15. 【 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
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16. 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
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17. 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.
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18. 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

19. 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

20. 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.
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21. (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
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22. 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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