1. Samsung Electronics September, 2001

2. Company Overview Divisional Highlights ContentsContents Q2 2001 Results

3. Company Overview

4. Vice Chairman & CEO (Yun, Jong Yong) Vice Chairman & CEO (Yun, Jong Yong) ▶ CFO (Choi, Doh Seok) CTO (Yun, Jong Yong) ◀ Organizational Structure Semiconductor Lee, Yoon Woo ▶ Memory ▶ System LSI ▶ TFT LCD Info. & Comm Lee, Ki Tae ▶ Handsets ▶ Network ▶ Fiber Optics Digital Media Sys. Chin, Daeje ▶ Monitor ▶ PC / PC Peripherals ▶ DTV / DVDP Living Appliances Han, Yong Oe ▶ Microwave Oven ▶ Refrigerator ▶ Air Conditioner

5. Global Market Share No. 1 26 % CDMA Handsets No. 1 21 % 23 % DRAM SRAM No. 1 21 % TFT - LCD Telecommunication Semiconductor No. 1 No. 2 15 % 19 % Color Monitor ODD DVDP No. 1 23 % Microwave Oven Digital Media Home Appliances 14 % No. 3 Leading Products (’00)

6. Q2 2001 Results

7. Sales by Quarter Operating Incomes by Quarter Revenue and Earnings Digital Media Telecommunication SemiconductorHome Appliances 0 2 4 6 8 10 Q3 '00Q4 '00Q1 '01Q2 '01 Trillion Won 0.0 0.5 1.0 1.5 2.0 2.5 Q3 '00Q4 '00Q1 '01Q2 '01 Trillion Won 8.8 9.1 8.6 8.0 2.2 1.5 1.6 0.6 43% 36% 35% 27% 19% 23% 22% 29% 89% 88% 64% 43% 8% 14% 50% 31% 35% 34% 27% 7%9% 17% 2%2% 14% 8% 9% 6%

8. Revenue and Earnings Our Well-Balanced Business Portfolio is Paying-off 0 2 4 6 8 10 Q3 '00Q4 '00Q1 '01Q2 '01 Sales by Quarter Operating Incomes by Quarter Trillion Won 0.0 0.5 1.0 1.5 2.0 2.5 Q3 '00Q4 '00Q1 '01Q2 '01 Trillion Won

9. 1H ’0120001999 1H ’0120001999 Net Debt / Equity10%9%32% Debt / Capitalization16%20%30% Coverage Ratio*94x56x14x ROE**24%41%31% Profitability (Net Income / Sales)0.130.180.12 Asset Turnover (Sales / Asset)1.231.331.15 Leverage (Asset / Equity)1.561.752.24 * Coverage Ratio = EBITDA / Net Interest Expense. ** Annualized for 1H ’01 Financial Analysis

10. Net Income 2.1 Depreciation1.5 Sale of Marketable Securities 0.5 Others0.7 Total4.8 (Unit: Trillion, KRW) Source of FundUse of Fund Capex 3.0 Increase in W/C0.7 Debt Redemption 0.4 Dividend0.4 Others0.7 Total5.2 Cash Balance Beginning : 1.9Net decrease : 0.4End : 1.5 ※ Cash Balance = Cash&Cash Equivalent + Short-term Financial Instrument Cash Flow of 1H 2001

11. Revised CAPEX for 2001 Semiconductor Telecommunication Others 7.3 6.1 5.1 (Unit : Trillion, KRW)

12. CAPEX Plan - EBITDA vs. CAPEX EBITDA has been always larger than CAPEX (Unit : Trillion, KRW) 0 2 4 6 8 10 12 1997199819992000 EBITDA CAPEX 4.3 2.5 4.3 1.6 7.2 3.4 10.1 5.2

13. Divisional Highlights - Semiconductor Division Divisional Highlights - Semiconductor Division

14. DRAM Demand and Supply ( Unit : Million ) ( Source : Company Data ) Balance is delayed by one quarter : Q3 ’01  Q4 ’01 Expected demand drivers -XP, Brookdale, New applications (S-T Box, 3G Handsets, Game machines) Original Forecast

15. DRAM Demand and Supply ( Unit : Million ) ( Source : Company Data ) Balance is delayed by one quarter : Q3 ’01  Q4 ’01 Expected demand drivers -XP, Brookdale, New applications (S-T Box, 3G Handsets, Game machines) Revised Forecast

16. Demand and Supply - Oversupply of 10% for ’01 but expects shortage from Q3 ’02 Outlook for TFT-LCD Market ( Source : Company Data ) 25 20 15 10 5 (Unit : Brillion, Units) 15% 10% 5% 0% -5% -10% Q1 ’01 Q2 ’01 Q3 ’01 Q4 ’01 Q1 ’02 Q2 ’02 Q3 ’02 Q1 ’03 Q2 ’03 Q3 ’03 Q4 ’03

17. Flexible product mix - Monitor portion  : 17% in 2000  37% in 2001 - Niche market (Small size LTPS for HHP, PDA) : 1M in 2001 Continual cost reduction - Number of components : 120 ~ 150 vs. SEC under 100 - Mask steps : 5 ~ 6 vs. SEC 4 ~ 5 - Mother glass size : 680 x 880 vs. SEC 730 x 920 CompetitivenessCompetitiveness Mother Glass730x920680x880 Mother Glass730x920680x880 Panel(Samsung)(Others) 14”9 panels6 panels 14”9 panels6 panels 15”6 panels6 panels 15”6 panels6 panels 17”6 panels4 panels 17”6 panels4 panels

18. Divisional Highlights - Telecommunication Division Divisional Highlights - Telecommunication Division

19. Revised Forecast (July ’01) Previous Forecast (March ’01) 480 M units Global Handset Market Revised global handset shipment in 2001 - Global economy slowdown, Lack of new applications and contents, Reduction of handset subsidies Asia 23% Americas 25% Europe 38% China 14% 410 M units Asia 25% Americas 24% Europe 36% China 16%

20. 1H 2001 12.5million units CDMA 53% GSM 47% Achievements in 1H Outstanding sales in the midst of deteriorating market Outstanding sales in the midst of deteriorating market - Sustain ASP by targeting mid to high-end segment - Timely introduction of new models - Domestic sales growth of cdma2000 1x handset

21. 2001(F) 28million units CDMA 55% GSM 43% Business Outlook Expect continuous growth in 2H ’01 Expect continuous growth in 2H ’01 - Increasing adoption rate of 1x handset in domestic market - Explore new business opportunities with new service providers “Maintain original target sales of 28M units” TDMA2%

22. Recent achievements in 1H ’01Recent achievements in 1H ’01 -Strong presence in 1x system market -CDMA contracts in China and Puerto Rico 2H ’01 Outlook2H ’01 Outlook -Domestic: 2.5G System expansion and upgrade to 1x EV-DO -Overseas: Increasing adoption of CDMA technology * China, Japan, Brazil, India, Israel, etc. * China, Japan, Brazil, India, Israel, etc. “Current macro environment remains challenging” Wireless systems

23. Divisional Highlights - Digital Media Division Divisional Highlights - Digital Media Division

24. Global Market Share Trends Rank M / S 1 15% 2 12% 6 13% 5 8% 312% Product199920002001 (F) Digital Media Rank M / S 1 19% 2 15% 316% 49% 215% Rank M / S 1 19% 2 14% 215% 39% 116% Monitors ODD DVD Players Color TVs VCRs

25. NetworkConvergence Broadcasting STB Broadcasting STB Home Gateway Home Gateway PDA PDA Web PAD Web PAD NewBusiness Networking Solutions Establishing global competition  Extend P2P connectivity PC PC Server Server Printer Printer Monitor Monitor ODD ODD Computing Home solution based on DTV A/VConsumer DTV DTV DVDP DVDP CDP CDP VCR VCR DVC DVC MP3 MP3 Convergence Vision

26. THANK YOU