Samsung Electronics

September, 2001

Contents
Company Overview

Q2 2001 Results

Divisional Highlights

Company Overview

Organizational Structure

Vice Chairman & CEO (Yun, Jong Yong)

CTO (Yun, Jong Yong) CFO (Choi, Doh Seok)

Semiconductor Lee, Yoon Woo Memory System LSI TFT LCD

Info. & Comm Lee, Ki Tae Handsets Network Fiber Optics

Digital Media Sys. Chin, Daeje

Living Appliances Han, Yong Oe

Monitor Microwave Oven PC / PC Peripherals Refrigerator DTV / DVDP Air Conditioner

Leading Products (00)

Global Market Share Semiconductor DRAM SRAM TFT - LCD Telecommunication CDMA Handsets Color Monitor ODD DVDP Microwave Oven 21 % 23 % 21 % 26 % 19 % 15 % 14 % 23 % No. 1 No. 1 No. 1 No. 1

Digital Media

No. 1 No. 2
No. 3 No. 1

Home Appliances

Q2 2001 Results

Revenue and Earnings

Sales by Quarter
8.8
10 8
31% 35% 23% 36%
7%

Operating Incomes by Quarter

2.2

9.1
6%

8.6
9%

8.0
17%

2.5
2.0 1.5 1.0

2%

8%

1.5
14%

1.6
8% 14%

34%

27%

4
2

19% 43%

22%
35%

29%
27%

89% 88%

14%

0.6
9%

0.5
0.0 Q3 '00

64%

50%

43%

Q3 '00

Q4 '00

Q1 '01

Q2 '01

Q4 '00

Q1 '01

Q2 '01

Telecommunication Semiconductor

Digital Media Home Appliances

Revenue and Earnings

Sales by Quarter Operating Incomes by Quarter

10 8 6

2.5
2.0 1.5 1.0

4
2

0.5
Q3 '00 Q4 '00 Q1 '01 Q2 '01 0.0 Q3 '00 Q4 '00 Q1 '01 Q2 '01

Our Well-Balanced Business Portfolio is Paying-off

Financial Analysis
1H 01 2000 1999

Net Debt / Equity

Debt / Capitalization Coverage Ratio* ROE**
Profitability (Net Income / Sales) Asset Turnover (Sales / Asset) Leverage (Asset / Equity)

10%
16% 94x 24%
0.13 1.23 1.56

9%
20% 56x 41%
0.18 1.33 1.75

32%
30% 14x 31%
0.12 1.15 2.24

* Coverage Ratio = EBITDA / Net Interest Expense.

** Annualized for 1H 01

Cash Flow of 1H 2001

(Unit: Trillion, KRW)

Source of Fund
Net Income Depreciation
Sale of Marketable Securities

Use of Fund
2.1 1.5 0.5 0.7
4.8 Capex Increase in W/C
Debt Redemption

Others Total
Cash Balance Beginning : 1.9

Dividend Others

3.0 0.7 0.4 0.4 0.7

Total

5.2

Net decrease : 0.4

End : 1.5

Cash Balance = Cash&Cash Equivalent + Short-term Financial Instrument

Revised CAPEX for 2001

(Unit : Trillion, KRW)
8 7 6 5
Semiconductor

7.3 6.1 5.1

4 3 2 1 0
Original 1st Revision 2nd Revision

Telecommunication Others

CAPEX Plan 12

EBITDA vs. CAPEX

(Unit : Trillion, KRW) 10.1

10
8
7.2 5.2 4.3 2.5 EBITDA

6
4 2

4.3 3.4
1.6

CAPEX

1997

1998

1999

2000

EBITDA has been always larger than CAPEX

Divisional Highlights
- Semiconductor Division

DRAM Demand and Supply

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
1700
( Unit : Million )

8% 6% 4% 2% 0% -2% -4% -6% Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02

( Source : Company Data )

1600 1500 1400 1300 1200 1100 1000 900 800

Demand Supply Sufficiency rate

DRAM Demand and Supply

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
1600
( Unit : Million )

8% 6% 4% 2% 0% -2% -4% -6% Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02

( Source : Company Data )

1500 1400 1300 1200 1100 1000 900 800

Demand Supply Sufficiency rate

Outlook for TFT-LCD Market

Demand and Supply

- Oversupply of 10% for 01 but expects shortage from Q3 02

25 20 15 0% 10 15%
( Source : Company Data )

10% 5%

-5% 5 -10%

Q1 01

Q2 01

Q3 01

Q4 01

Q1 02

Q2 02

Q3 02

Q3 02

Q1 03

Q2 03

Q3 03

Q4 03

Competitiveness
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
Mother Glass Panel 14 730x920 (Samsung) 9 panels 680x880 (Others) 6 panels

15
17

6 panels
6 panels

6 panels
4 panels

Divisional Highlights
- Telecommunication Division

Global Handset Market

Revised global handset shipment in 2001
- Global economy slowdown, Lack of new applications and contents, Reduction of handset subsidies Previous Forecast
(March 01)
China 14% Europe 38%

Revised Forecast
(July 01)
China 16%

Asia 23% Americas 25%

Asia 25% Americas 24%

Europe 36%

480 M units

410 M units

Achievements in 1H
Outstanding sales in the midst of deteriorating market

- Sustain ASP by targeting mid to high-end segment

1H 2001
- Timely introduction of new models GSM 47%

- Domestic sales growth of cdma2000 1x handset

CDMA 53%

12.5million units

Business Outlook
Expect continuous growth in 2H 01

- Increasing adoption rate of 1x handset in domestic market

- Explore new business opportunities with new service providers 2001(F)
TDMA 2%

Maintain original target sales of 28M units

GSM 43%

CDMA 55%

28million units

Wireless systems
Recent achievements in 1H 01
- Strong presence in 1x system market - CDMA contracts in China and Puerto Rico

2H 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.

Current macro environment remains challenging

Divisional Highlights
- Digital Media Division

Digital Media
Global Market Share Trends
Product 1999 Rank Monitors 1 M/S 15% Rank 1 2 3 4 2 2000 M/S 19% 15% 16% 9% 15% 2001 (F) Rank 1 M/S 19%

ODD
DVD Players Color TVs VCRs

2
6 5 3

12%
13% 8% 12%

2
2 3 1

14%
15% 9% 16%

Convergence Vision
Home solution based on DTV
DTV DVDP CDP VCR DVC MP3

Establishing global competition Extend P2P connectivity

PC Server Printer Monitor ODD

A/V Consumer

Computing

Network Convergence

Broadcasting STB

New Business

Home Gateway

PDA Web PAD

Networking Solutions

THANK YOU