Samsung_Analyst_Day_Finances_1.pdf

8/14/2019 Samsung_Analyst_Day_Finances_1.pdf

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Invest in our futureSang-hoon Lee


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DISCLAIMER

The materials in this report include forward-looking statements which can generally be identified by phrases such as

Samsung Electronics (SEC) or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or

other words or phrases of similar implications. Similarly, such statements that describe the company's business strategy,

outlook, objectives, plans, intentions or goals are also forward-looking statements. All such statements are subject to

certain risks and uncertainties that could cause actual results to differ materially from those in the presentation files

above.

For us, particular uncertainties which could adversely or positively affect our future results include:

The behavior of financial markets including fluctuations in exchange rates, interest rates and commodity prices

Strategic actions including dispositions and acquisitions Unanticipated dramatic developments in our major businesses including CE (Consumer Electronics),

IM (IT & Mobile communications), DS (Device Solutions)

Numerous other matters at the national and international levels which could affect our future results

These uncertainties may cause our actual results to be materially different from those expressed in this report.


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Sustainable Growth& Profitability

Enhance Competitive Edge

Maximize Mgmt Effectiveness

Finance

Capex R&D Patent Mkt. HR M&A

RiskManagement

Systems(ERP/SCM)


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2010 2013(E) *2011 2012

211

188

143136

Billion USD

* 2013(E) : Bloomberg Consensus

Continuous growth*

16%CAGR


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America

EU / CIS

China

Domestic

Others

23 %18%

11%

20 %

28 %

Balanced structure

2010 2013(E) *

* 2013(E) : Fn Guide Consensus

2013.1H

DP

Semi

IM

CE

Component

Device


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9

14

11

17 %Strong improvement

2010 2013(E) *2011 2012

27

14

Billion USD

* 2013(E) : Bloomberg Consensus

35*

15

32%CAGR

OP margin


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Improved equity ratios

544950

46 %

8 %

14 1212

2010 2011 2012 2013.3Q


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Delivered asset efficiency tominimize working capital increase

2010 2013.1H2011 2012

Billion USD

Working Capital Increase* Working Capital Increase to Cash flow from Operation

15

5

10

0

33. 2

9.9 %*


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Finance


RiskManagement

Systems(ERP/SCM)


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Finance


RiskManagement

Systems(ERP/SCM)


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EBITDA

Key source of sustainable growth & competitive edge

* Annual Budget** Bloomberg Consensus

2010 2013(E)2011 2012

Billion USD

50**

22*

41

2124

1925

20


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Execution within C/F IRR Payback period

Differentiate technologyand Profitability

Flexible planning to reducerisk

Manage under strict principles and guidelines

Principles Guidelines


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New focus

2010 2013(E)2011 2012

15

21 %

Technology,New Market

Capacity,M/S


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Domestics

Overseas

Overseas

Domestics 2010

2013

Continuous investing for growth

Global R&D investment ranking #2 in 2013, Booz&Co.

$8B50 K


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Key strategic shifts

H/W Comp.

Set

In-house

OpenInnovation

S/W

Effective use of global R&Dresources

Soft competitive edge

New growth engine

New focus New directions


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regulationsin major countries

Changes

patent trolland

competitors

Threats

Persistent increase in IP risk


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Reinforcing IP competitive edge

HQ 3 Regional

PatentExperts

EarlyEngagement

IP Centers

600In-houseexperts

Productplanning stage


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Accelerating discoveriesand possibilities

Fully integratedwith all business activities

Experiential Interactive Localized

Utilize strong brand assets

Differentiated strategyBrand ideal


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People as one of our core values

2010

2013

$11B

DomesticsOverseas

OverseasDomestics

190 K


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Strategic directions for HR

Talent

S/WCreative

Lab

OpenInnovation

Securing talent


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mSpotMedison

CSR

14 companies, over $1B invested

OrganicGrowth


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Growth objectives via M&A


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Finance


RiskManagement

Systems(ERP/SCM)


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Real-time monitoring under rules & processes

Monitoring system Rules & processes


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Increase of government regulations globally

Compliance Team

EmployeeEducation Monitoring

ComplianceManual / System


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All employees access Real-time data managedby One system at Any time

Lack of process standardizationFor different working places

Complicated system interface

54 Countries, 115 Systems

One Global ERPNon-standardized

Process / DataStandardization

ERP

ERP

ERP

ERPERP

ERPERP

ERPERP


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Weekly decision making Production flexibility (CELL) Global logistics Hub

Speed Global S&OP * Customer collaboration(CPFR) Retail & channel SCM

Flexibility

Operational excellence

* S & OP : Sales and Operation Plan


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Documents

Samsung_Analyst_Day_Finances_1.pdf