Business Report

SAMSUNG ELECTRONICS Co., Ltd.
Half Year Report
January 1, 2014 – June 30, 2014
Note about forward-looking statements
Certain statements in the document, other than purely historical information, including estimates, projections, statements relating to our business
plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.”
Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual
results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and
events to differ materially from such forward-looking statements is included in our financial reports available on our website.
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Table of Contents
Certification ....................................................................................................................................................... 3
I. Corporate Overview ....................................................................................................................................... 4
II. Businesses Overview .................................................................................................................................. 19
III. Management Discussion and Analysis ....................................................................................................... 52
IV. Corporate Governance and Affiliates .......................................................................................................... 53
V. Information on Shareholders ....................................................................................................................... 93
VI. Executives and Employees ........................................................................................................................ 99
VII. Related Party Transactions ..................................................................................................................... 106
VIII. Other Information Related to Investment Protection ............................................................................... 110
IX. Auditor’s Report ....................................................................................................................................... 116
X. Financial Statements ................................................................................................................................ 118
XI. Summary of Significant Accounting Policies ............................................................................................. 134
XII. Supplementary Information ..................................................................................................................... 149
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Certification
Letter of Certification
We, Oh-Hyun Kwon and Sang-Hoon Lee, as CEO and director of the company in charge of reporting, certify
that we have reviewed this half year report of Samsung Electronics Co., Ltd.
Based on our knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary that would be misleading with respect to the period covered by this report.
Based on our knowledge, the financial statements, and other financial information included in the report, fairly
present in all materials respects the financial condition, results of operations and cash flows of the company as
of, and for, the periods presented in this report.
We confirm that Samsung Electronics operates an Internal Accounting Management System, responsible for
establishing and maintaining disclosure controls and procedures and internal controls over financial reporting,
as defined in Article 2.2 and 2.3 of the External Audit Act. We have disclosed our most recent evaluation of
internal controls over financial reporting to the Company’s auditors and to the audit committee of the
Company’s board of directors.
Date: 2014. 8. 14
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I. Corporate Overview
1. Overview
A. Legal, Commercial Name:
- Samsung Electronics Co., Ltd.
B. Date of Establishment:
- Samsung Electronics (“SEC” or `“The Company”) was established as Samsung Electronics Industry Co., Ltd.
on January 13, 1969, held an Initial Public Offering on June 11, 1975.
- The Company changed its name from Samsung Electronics Industry Co., Ltd. to Samsung Electronics Co., Ltd. in
accordance with the resolution of the Annual General Meeting of Shareholders on February 28, 1984.
C. Address, Phone Number, and Website of the corporate headquarter
- Address: 129 Samsung-ro Maetan-3dong Yeongtong-gu, Suwon, Gyeonggi-do, Korea
- Phone Number: 82-31-200-1114
- Website: http:// www.samsung.com/us
D. The Company is not subject to Article 2 of the Framework Act on Small and Medium Enterprises.
E. Core Businesses
- The Company independently manages three divisions, CE (Consumer Electronics), IM (Information Technology &
Mobile Communications), DS (Device Solutions).
Products in each division are presented below:
Division
Products
CE
CTV, Monitor, Printer, Air Conditioner, Refrigerator, Washing Machine, Medical Devices
IM
HHP, Network System, Computer, Digital Camera
DS
DRAM, NAND Flash, Mobile AP, LCD panel, OLED panel, LED
The Company is a global electronics company comprised of the headquarters in Korea and 150 subsidiaries across the
world including 9 regional headquarters for the CE and IM divisions and 5 regional headquarters for the DS division.
[CE Division]
The CE division is leading the global digital era through continuous new product offerings with innovative technology,
unique design, and value.
CTV is the core product of the CE. The Company has maintained its market leadership position for the past 8 consecutive
years through competitive advantage in hardware products such as LCD and LED TV as well as software driven product
features with our Smart TV product portfolio.
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[IM Division]
The IM division is leading mobile lifestyle innovation with consumer-friendly products such as the premium brand
‘GALAXY’ series, while at the same time driving the paradigm shift in the market beyond mobile convergence to focus
on software.
The IM division is focused on meeting market demands by enhancing mobile product differentiation through integration
of key features from various product categories.
In addition to HHP products, including smartphones, the IM division is also leading technological development and
standardization in the global networks system market, including Long Term Evolution (LTE).
[DS Division]
The DS division is comprised of semiconductor and display businesses. The semiconductor business is divided into
memory and System LSI businesses. The Memory business manufactures and sells DRAM and NAND products. System
LSI manufactures Mobile AP (Application Processors) and various sensors including CIS (Central Imaging Sensors). The
display business manufactures and sells display panels, including TFT-LCD and OLED.
The memory business produces differentiated products and has maintained number one position in the global memory
market by applying advanced process technology. The System LSI business is leading the industry shift from PC to
mobile. For display business, the Company is leading the market with technological development and investment resulting
in superior quality and cost competitiveness in TFT-LCD and increasing applications of OLED panels in various IT
products.
☞ Refer to 『II. Businesses Overview』, for more details about each division
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F. Affiliates
The Company is an affiliate of Samsung Group according to the Monopoly Regulation and Fair Trade Act.
As at June 30, 2014, Samsung Group had a total of 73 domestic affiliates. Compared to December 31, 2013, three new
affiliates (Samsung Welstory, Samsung Card Customer Service, and Seoul Lakeside CC) were added and five (Samsung
Corning Precision Materials, Samsung SNS, Global Tech, 365Homecare, and Samsung Petrochemical) were excluded.
Among Samsung Group’s 73 affiliates, 17 including Samsung Electronics are listed, and 56 are unlisted.
[As of June 30, 2014]
No. of
affiliates
Name of affiliates
17
Samsung C&T, Cheil Industries, Samsung Electronics, Samsung SDI, Samsung Techwin, SEMCO, Samsung
Heavy Industries, Samsung Card, Samsung Life Insurance, Hotel Shilla, Samsung Fire & Marine Insurance,
Samsung Securities, Samsung Fine Chemicals, Samsung Engineering, S1, Cheil Worldwide, CREDU
Unlisted
56
Samsung Everland, Samsung SDS, Samsung General Chemicals, Samsung Total Petrochemicals, Samsung
Lions, SERI, STECO, Samsung Thales, SEMES, Samsung Electronics Sales, Samsung Electronics Service,
Samsung Electronics Logitech, Hantok Chemicals, CVnet Corporation, Care Camp, Allat., SECUI, Gacchinet,
Open Tide Korea, Samsung Futures, Samsung Venture Investment Corporation, Samsung Asset
Management, Saengbo, SD Flex, World Cyber Games, Samsung Claim Adjustment Service, Samsung Fire &
Marine Insurance Service, S-Core, Suwon Samsung Bluewings FC, Human TSS, RAY, Songdo Land Mark
City, S-1CRM, OpenHands, S-EnPol, Samsung Medison, Samsung Biologics, SMP, STM, Nuri Solution,
Colombo Korea, Samsung Life Service, Miracom, SU Materials, Natural9, Samsung Display, Samsung
Bioepis, Samsung Corning Advanced Glass , Daejung Offshore Wind Power Co., Ltd., SAMSUNG SRA Asset
Management, Jeongahm Wind Power, SKKU dormitory, Samsung SGL Carbon Composite Materials,
Samsung Welstory, Samsung Card Customer Service, Seoul Lakeside CC
Total
73
Listed
※ “World Cyber Games” ceased to be an affiliate in July 2014.
☞
Refer to 『4. Affiliates and Subsidiaries』 in 『IV. Corporate Governance and Affiliates』 for more details about domestic and
overseas affiliates.
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G. Subsidiaries Subject to Consolidated Financial Statements
As at June 30, 2014, Samsung Electronics’ consolidated subsidiaries totaled 150 with one subsidiary being newly included
and four excluded compared to December 31, 2013. Below is the list of consolidated subsidiaries.
(Unit: KRW million)
Dec 31,
2013
Assets
%
ownership
Classified as
major
subsidiary
(Y/N)
Sale of electronic goods
12,248,560
Over 50%
Y
1998.03
Receivable management
2,780,689
Over 50%
Y
Name of Subsidiaries
Date of
Establishment
Major business
Samsung Electronics America Inc.
1978.07
Samsung Receivables Corporation
Samsung Semiconductor Inc.
1983.07
Sale of electronic goods
7,346,339
Over 50%
Y
Samsung Electronics Canada Inc.
1980.07
Sale of electronic goods
522,775
Over 50%
Y
Samsung Information Systems America Inc.
1988.10
R&D
184,101
Over 50%
Y
Grandis, Inc.
2002.06
R&D
108,037
Over 50%
Y
Samsung International Inc.
1983.10
CTV production
34,424
Over 50%
N
Samsung Mexicana S.A. de C.V
1988.03
Production of electronic goods
1,065,830
Over 50%
Y
Samsung Electronics Digital Appliance Mexico, SA de CV
2012.12
Production of electronic goods
503,513
Over 50%
Y
Samsung Telecommunications America LLC.
1992.01
Sale of telecom products
4,735,432
Over 50%
Y
Samsung Austin Semiconductor LLC.
1996.02
Production of semiconductors
6,393,348
Over 50%
Y
SEMES America Inc.
1998.10
Semiconductor equipment
1,090
Over 50%
N
Samsung Electronics Mexico S.A. De C.V.
1995.07
Production and sale of
electronic goods
1,554,638
Over 50%
Y
Samsung Electronics Latino America Miami, Inc.
1995.05
Sale of electronic goods
259,165
Over 50%
Y
Nvelo, Inc.
2010.05
Software
1,519
Over 50%
N
Samsung Electronics Latinoamerica (Zona Libre)
1989.04
Sale of electronic goods
375,274
Over 50%
Y
Samsung Electronics Venezuela, C.A.
2010.05
Marketing and services
8,928
Over 50%
N
Samsung Electronica Colombia S.A.
1997.03
Sale of electronic goods
327,320
Over 50%
Y
Samsung Electronics Panama. S.A.
2012.07
Consulting
3,549
Over 50%
N
Samsung Electronica Da Amazonia LTDA.
1994.10
Production and sale of
electronic goods
3,429,136
Over 50%
Y
Samsung Electronics Argentina S.A.
1996.06
Marketing and services
49,454
Over 50%
N
Samsung Electronics Chile Limitada
2002.12
Sale of electronic goods
492,709
Over 50%
Y
Samsung Electronics Peru S.A.C.
2010.04
Sale of electronic goods
150,228
Over 50%
Y
Samsung Electronics (UK) Ltd.
1995.07
Sale of electronic goods
1,393,507
Over 50%
Y
Samsung Electronics(London) Ltd.
1999.01
Holding company
7,647
Over 50%
N
Samsung Electronics Holding GmbH
1982.02
Holding company
886,338
Over 50%
Y
Samsung Semiconductor Europe GmbH
1987.12
Sale of semiconductors and DP
1,016,296
Over 50%
Y
Samsung Electronics GmbH
1984.12
Sale of electronic goods
1,214,277
Over 50%
Y
Samsung Electronics Iberia, S.A.
1989.01
Sale of electronic goods
783,438
Over 50%
Y
Samsung Electronics France S.A.S
1988.01
Sale of electronic goods
1,157,900
Over 50%
Y
Samsung Electronics Hungarian Private Co. Ltd.
1989.10
Production and sale of
electronic goods
1,249,691
Over 50%
Y
Samsung Electronics Czech and Slovak s.r.o.
2010.01
Sale of electronic goods
170,011
Over 50%
Y
Samsung Electronics Italia S.P.A.
1991.04
Sale of electronic goods
1,004,423
Over 50%
Y
Samsung Electronics Europe Logistics B.V.
1991.05
Logistics
1,903,892
Over 50%
Y
Samsung Electronics Benelux B.V.
1995.07
Sale of electronic goods
1,290,124
Over 50%
Y
Samsung Display Slovakia s.r.o.
2007.03
TFT-LCD processing
299,196
Over 50%
Y
Samsung Electronics Romania LLC
2007.09
Sale of electronic goods
144,702
Over 50%
Y
Samsung Electronics Polska, SP.Zo.o
1996.04
Sale of electronic goods
557,370
Over 50%
Y
Samsung Electronics Portuguesa S.A.
1982.09
Sale of electronic goods
132,631
Over 50%
Y
Samsung Electronics Nordic Aktiebolag
1992.03
Sale of electronic goods
533,252
Over 50%
Y
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Name of Subsidiaries
Date of
Establishment
Major business
Dec 31,
2013
Assets
%
ownership
Classified as
major
subsidiary
(Y/N)
Samsung Nanoradio Design Center
2004.02
R&D
21,737
Over 50%
N
Samsung Semiconductor Europe Ltd.
1997.04
Sale of semiconductor and DP
98,884
Over 50%
Y
Samsung Electronics Austria GmbH
2002.01
Sale of electronic goods
323,756
Over 50%
Y
Samsung Electronics Slovakia s.r.o
2002.06
Production of CTV and monitors
1,764,078
Over 50%
Y
Samsung Electronics European Holding Cooperatief U.A.
2008.10
Holding company
5,780,302
Over 50%
Y
Samsung Electronics Poland Manufacturing SP.Zo.o
2010.02
Production of home appliances
373,469
Over 50%
Y
Samsung Electronics Greece S.A.
2010.04
Sale of electronic goods
108,514
Over 50%
Y
Nanoradio Hellas AE
2007.11
R&D
21,737
Over 50%
N
Samsung Denmark Research Center ApS
2012.09
R&D
22,520
Over 50%
N
Samsung France Research Center SARL
2012.10
R&D
22,406
Over 50%
N
Samsung Cambridge Solution Centre Limited
2012.09
R&D
132,919
Over 50%
Y
Samsung Electronics Baltic SIA
2001.10
Sale of electronic goods
44,495
Over 50%
N
Samsung Electronics Overseas B.V.
1997.01
Sale of electronic goods
173,644
Over 50%
Y
Samsung Electronics Rus LLC
1999.03
Marketing
12,392
Over 50%
N
Samsung Electronics Rus Company LLC
2006.10
Sale of electronic goods
1,410,054
Over 50%
Y
Samsung Electronics Ukraine LLC
2004.01
Marketing
79
Over 50%
N
Samsung Electronics Ukraine Company LLC
2008.09
Sale of electronic goods
189,644
Over 50%
Y
Samsung R&D Institute Rus LLC
2011.11
R&D
13,767
Over 50%
N
Samsung Electronics Kazakhstan LLP
2006.07
Marketing
Samsung Electronics Central Eurasia LLP
2008.09
Sale of electronic goods
964
Over 50%
N
161,062
Over 50%
Y
Samsung Electronics Rus Kaluga LLC
2007.07
Production of CTV
1,122,495
Over 50%
Y
Samsung Russia Service Centre LLC
1997.11
Samsung Electronics West Africa
2010.03
Service
41,567
Over 50%
N
Marketing
61,414
Over 50%
Y
Samsung Electronics East Africa
2011.12
Marketing
26,006
Over 50%
N
Samsung Gulf Electronics Co., Ltd.
1995.05
Sale of electronic goods
1,071,694
Over 50%
Y
2012.07
Production and sale of
electronic goods
Samsung Electronics Egypt S.A.E
251,866
Over 50%
Y
Samsung Electronics Israel Ltd.
2012.09
Marketing
3,150
Over 50%
N
Samsung Electronics Tunisia S.A.R.L
2012.09
Marketing
1,667
Over 50%
N
Samsung Electronics Pakistan(Private) Ltd.
2012.11
Marketing
1,814
Over 50%
N
Samsung Electronics South Africa(Pty) Ltd.
1994.06
Sale of electronic goods
787,562
Over 50%
Y
Samsung Electronics Turkey
1984.12
Sale of electronic goods
674,173
Over 50%
Y
Samsung Semiconductor Israel R&D Center Ltd.
2007.10
R&D
22,940
Over 50%
N
Samsung Electronics Levant Co.,Ltd.
2009.07
Sale of electronic goods
403,713
Over 50%
Y
Samsung Electronics Morocco SARLAU
2009.11
Sale of electronic goods
88,406
Over 50%
Y
Samsung Japan Corporation
1975.12
Sale of electronic goods
1,174,832
Over 50%
Y
Samsung R&D Institute Japan Co. Ltd
1992.08
R&D
181,723
Over 50%
Y
Samsung Electronics Japan Co., Ltd.
2008.09
Sale of electronic goods
712,050
Over 50%
Y
Samsung Electronics Display (M) Sdn. Bhd.
1995.03
Production and sale of
electronic goods
814,820
Over 50%
Y
Samsung Electronics (M) Sdn. Bhd.
1989.09
Production of home appliances
277,354
Over 50%
Y
Samsung Vina Electronics Co., Ltd.
1995.01
Production and sale of
electronic goods
175,780
Over 50%
Y
Samsung Asia Private Ltd.
2006.07
Sale of electronic goods
2,425,585
Over 50%
Y
Samsung India Electronics Private Ltd.
1995.08
Production and sale of
electronic goods
1,924,832
Over 50%
Y
Samsung R&D Institute India-Bangalore Private Ltd.
2005.05
R&D
147,900
Over 50%
Y
Samsung Electronics Australia Pty. Ltd.
1987.11
Sale of electronic goods
578,624
Over 50%
Y
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%
ownership
Classified as
major
subsidiary
(Y/N)
647,199
Over 50%
Y
15,944
Over 50%
N
1,476,296
Over 50%
Y
Dec 31,
2013
Assets
Name of Subsidiaries
Date of
Establishment
PT Samsung Electronics Indonesia
1991.08
PT Samsung Telecommunications Indonesia
2003.03
Thai-Samsung Electronics Co., Ltd.
1988.10
Samsung Electronics Philippines Corporation
1996.03
Sale of electronic goods
127,203
Over 50%
Y
Samsung Malaysia Electronics (SME) Sdn. Bhd.
2003.05
Sale of electronic goods
814,104
Over 50%
Y
Samsung R&D Institute BanglaDesh
2010.08
R&D
6,662
Over 50%
N
Samsung Electronics Vietnam Co., Ltd.
2008.03
Production of electronic goods
5,625,759
Over 50%
Y
Samsung Telecommunications Malaysia Sbn. Bhd.
2009.08
Sale of telecom systems
and services
11,593
Over 50%
N
Samsung Display DongGuan Co., Ltd.
2001.11
DP production
1,015,838
Over 50%
Y
Samsung Display TianJin Co., Ltd.
2004.06
DP production
650,311
Over 50%
Y
Samsung Electronics Hong Kong Co., Ltd.
1988.09
Sale of electronic goods
1,188,620
Over 50%
Y
Suzhou Samsung Electronics Co., Ltd.
1995.04
Production of home appliances
645,699
Over 50%
Y
Samsung Suzhou Electronics Export Co., Ltd.
1995.04
Production of home appliances
352,780
Over 50%
Y
Samsung (CHINA) Investment Co., Ltd.
1996.03
Sale of electronic goods
8,406,438
Over 50%
Y
Samsung Mobile R&D Center, China-Guangzhou
2010.01
R&D
38,323
Over 50%
N
Samsung Tianjin Mobile Development Center
2010.08
R&D
28,245
Over 50%
N
Samsung Electronics Suzhou Semiconductor Co., Ltd.
1994.12
Semiconductor processing
660,374
Over 50%
Y
Samsung Electronics (Shandong) Digital Printing Co., Ltd.
1993.03
Production of printers
761,018
Over 50%
Y
Samsung Electronics Huizhou Co., Ltd.
1992.12
Production of electronic goods
4,599,200
Over 50%
Y
Tianjin Samsung Electronics Co., Ltd.
1993.04
Production of CTV
907,752
Over 50%
Y
Samsung Electronics Taiwan Co., Ltd.
1994.11
Sale of electronic goods
1,390,404
Over 50%
Y
Beijing Samsung Telecom R&D Center
2000.09
R&D
44,780
Over 50%
N
Tianjin Samsung Telecom Technology Co., Ltd.
2001.03
Production of telecom products
2,939,027
Over 50%
Y
Shanghai Samsung Semiconductor Co., Ltd.
2001.10
Sale of semiconductor and DP
1,310,109
Over 50%
Y
Samsung Electronics Suzhou Computer Co., Ltd.
2002.09
Production of electronic goods
846,670
Over 50%
Y
Samsung Display SuZhou Co., Ltd.
2002.09
DP Production
554,424
Over 50%
Y
Samsung Suzhou LCD Co., Ltd
2011.07
DP Production
1,463,589
Over 50%
Y
Shenzhen Samsung Electronics Telecommunication Co., Ltd.
2002.02
Sale of telecom products
88,698
Over 50%
Y
Samsung Electronics Shanghai Telecommunication Co., Ltd.
2001.11
Sale of telecom
and network products
1,411
Over 50%
N
Samsung Semiconductor (China) R&D Co., Ltd.
2003.04
R&D
18,982
Over 50%
N
Samsung Electronics China R&D Center
2004.05
R&D
25,429
Over 50%
N
Samsung (China) Semiconductor Co., Ltd.
2012.09
Semiconductor Production
3,752,682
Over 50%
Y
Samsung Electronics Hainan Fiberoptics Co., Ltd.
2004.04
Fiber optic and cable Production
111,367
Over 50%
Y
Samsung Electronics (Beijing) Service Company Ltd.
2005.01
Services
140,868
Over 50%
Y
Tianjin Samsung LED Co., Ltd.
2009.05
LED Productions
457,896
Over 50%
Y
Tianjin Samsung Opto-Electronics Co., Ltd.
1994.02
Camera/camcorder Production
241,957
Over 50%
Y
Samsung Display
2012.04
DP Sales and Production
35,754,894
Over 50%
Y
SU Materials
2011.08
DP component production
21,711
Over 50%
N
Major business
Production and sale of
electronic goods
Sale of telecom systems and
services
Production and sale of
electronic goods
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※
%
ownership
Classified as
major
subsidiary
(Y/N)
91,556
Over 50%
Y
669,232
Over 50%
Y
Dec 31,
2013
Assets
Name of Subsidiaries
Date of
Establishment
STECO
1995.06
SEMES
1993.01
Samsung Electronics Service
1998.10
Electronics goods repair services
335,588
Over 50%
Y
Samsung Electronics Sales
1996.07
Sales of electronic goods
564,361
Over 50%
Y
Samsung Electronics Logitech
1998.04
Total logistic services
140,733
Over 50%
Y
37,284
Over 50%
N
55,465
Over 50%
Y
30,532
Over 50%
N
61,384
Over 50%
Y
93,554
Over 50%
Y
10,746
Over 50%
N
19,189
Over 50%
N
309,321
Over 50%
Y
5,950
Over 50%
N
Major business
Semiconductor component
production
Semiconductor/FPD manufacturing
equipment
Investment in venture firms
and new technologies
Investment in venture firms
and new technologies
Investment in venture firms
and new technologies
Investment in venture firms
and new technologies
Investment in venture firms
and new technologies
Investment in venture firms
and new technologies
Investment in venture firms
and new technologies
SVIC #6 Venture Capital Union
2005.07
SVIC #14 Venture Capital Union
2009.05
SVIC #20 Venture Capital Union
2011.03
SVIC #21 Venture Capital Union
2011.11
SVIC #22 Venture Capital Union
2011.11
SVIC #23 Venture Capital Union
2012.10
Hi Pioneer Private Securities Investment Trust 1
2011.08
Samsung Medison
1985.07
Medical equipment
RAY
2004.10
Dental CT
SONOACE Deutschland GmbH
2001.10
Medical equipment
322
Over 50%
N
Samsung Medison Europe B.V.
2005.11
Medical equipment
602
Over 50%
N
Samsung Medison Shanghai Medical Instrument Co., Ltd.
1992.11
Medical equipment
10,692
Over 50%
N
Samsung Medison India Private Ltd.
2009.01
Medical equipment
96
Over 50%
N
Nexus DX Inc.
2009.07
Medical equipment
15,214
Over 50%
N
Nanogen Recognomics GmbH
2001.07
Medical equipment
-
Over 50%
N
NeuroLogica Corp.
2004.02
Medical equipment
187,297
Over 50%
Y
Samsung Electronics Vietnam THAINGUYEN Co., Ltd.
2013.03
Production of telecom products
590,033
Over 50%
Y
Samsung Network R&D Center, China-Shenzhen
2013.03
R&D
5,738
Over 50%
N
Samsung Electronics Switzerland GmbH
2013.05
Sale of electronic goods
115,759
Over 50%
Y
Samsung R&D Institute China-Xian
2013.07
R&D
8,179
Over 50%
N
SEMES (XIAN) Co., Ltd.
2013.07
Semiconductor equipment
242
Over 50%
N
Samsung Electronics New Zealand Limited
2013.09
Sale of electronic goods
3,163
Over 50%
N
RT SV CO-INVEST, LP
2014.02
Investment in venture firms
-
Over 50%
N
Companies with total assets of over KRW50 billion at December 31, 2013 are classified as major subsidiaries.
※ Refer to 『II. Businesses Overview』 for additional information about major business segments.
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H. Credit Rating
The Company’s credit quality of financial assets that are neither past due nor impaired is assessed by reference to two
external credit ratings agencies: Moody’s and S&P
As at June 30, 2014, Moody’s rating is A1 and investment outlook is positive. S&P’s rating is A+ and investment outlook
is stable. In 2013, S&P upgraded the Company’s credit rating one notch to A+. There have been no changes in crediting
rating during the 6 months to June 30, 2014.
Date
Securities
Ratings
Credit Rating Agency
Rating Range
’12.08
Corporate bond
A
S&P (USA)
(AAA ~ D)
’12.08
Corporate bond
A1
Moody’s (USA)
(Aaa ~ C)
’13.08
Corporate bond
A+
S&P (USA)
(AAA ~ D)
’13.12
Corporate bond
A1
Moody’s (USA)
(Aaa ~ C)
Note
Regular
Assessment
2. Company History
(The Information disclosed below outlines major changes to the Company such as business combination, M&A and security offerings)
2010.01.01
2010.04.01
2011.01.01
2011.02.16
2011.04.19
2011.04.29
2011.07.01
2011.07.22
2012.01.19
2012.04.01
2012.04.01
2012.04.10
2012.07.01
2012.09.01
2012.12.01
2013.01.01
2013.01.28
2014.01.15
Transferred VSS business to Samsung Techwin
Merged with Samsung Digital Imaging
Merged with Samsung Electronics Gwangju
Acquired shares of Prosonic (100%) and Medison (43.5%)
Signed a comprehensive partnership contract with Seagate including HDD business transfer
Acquired additional shares of Medison (22.3%)
Transferred solar cell business to Samsung SDI
Acquired shares of Grandis (100%), an affiliate of subsidiary SISA
(Samsung Information System America)
Acquired remaining shares of S-LCD Corporation (50%) from SONY
Separated LCD business (established Samsung Display)
Merged with Samsung LED
Corporate bond ($1 billion) issued by SEA
Samsung Mobile Display merged with S-LCD (a subsidiary of Samsung Display)
Merged Prosonic with Samsung Medison
Acquired SEHF Korea
Merged SECRON with GES (a subsidiary of SEMES)
Acquired shares of NeuroLogica (100%) of a subsidiary SEA
Disposed stocks of Samsung Corning Precision Materials, a subsidiary of Samsung Display.
Purchased convertible preferred stocks from Corning Incorporated.
Samsung Electronics 2014 Half Year Report
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(Changes in Subsidiaries)
AMER
Dec 31,
2009
Dec 31,
2010
Dec 31,
2011
Dec 31,
2012
※
17
19
26
30
Europe/
MEA/
CIS
39
44
51
61
Asia
20
21
25
23
China
25
27
30
32
Domestic
Total
Increase
Decrease
-
15
116
-
17
[Americas: 2]
Samsung Electronics Peru S.A.C.,
Samsung Electronics Venezuela, C.A.
[Europe/MEA/CIS: 5]
Samsung Electronics West Africa, Samsung
Electronics Greece S.A., Samsung LCD Netherlands
R&D Center B.V,
Samsung LCD Netherlands R&D Center(UK) Limited,
[China: 2]
Samsung Opto-Electronics GmbH
128
Tianjin Tongguang Samsung Electronics,
[Asia: 1]
Tianjin Samsung Electronics Display
Samsung Electronics Bangladeshi Research Center
[China: 4]
Samsung Guangzhou Mobile R&D Center, Samsung
Tianjin Mobile Development Center, Tianjin Samsung
Opto-Electronics Co., Ltd., Samsung LCD Netherlands
R&D Center(HK) Limited
[Domestic: 2]
RAY, GES
24
[Americas: 7]
Samsung Medison Brasil Ltda., Samsung Medison
America Inc., Grandis, Inc., Nexus DX Inc., HX
Diagnostics, Inc., HX Reagents, Inc., Deltapoint
Cardiac Diagnostics, Inc.
[Europe/MEA/CIS: 7]
SONOACE Deutschland GmbH, Samsung Medison
France S.A.S., Samsung Medison Italia S.r.l.,
Samsung Medison Europe B.V., Samsung Moscow
Research Centre, Samsung Electronics East Africa,
Nanogen Recognomics GmbH
[Asia: 4]
Samsung Medison Japan Co., Ltd., Samsung Medison
156 India Private Ltd., Medison Medical Systems India
Private Ltd., TNP Small/Medium Size & Venture
Enterprises Growth-Promotion Investment Limited
Partnership(TSUNAMI)
[China: 4]
Samsung Medison Shanghai Medical Instrument Co.,
Ltd., Medison (Shanghai) Co., Ltd., Medison Medical
Equipment Shanghai, Samsung Suzhou LCD Co., Ltd.
[Domestic: 10]
Prosonic, SVIC #20 Venture Capital Union, Samsung
Medison, Medison Healthcare, CSL, Medison X-ray,
SU Materials, Hi Pioneer Private Securities Investment
Trust 1, SVIC #21 Venture Capital Union, SVIC #22
Venture Capital Union
[China: 1]
Samsung Electronics Shenzhen Co., Ltd.
[Domestic: 3]
Samsung Electronics Gwangju,
Medison X-ray,
CSL
20
[Domestic: 2]
Samsung Display , SVIC #23 Venture Capital Union
[Americas: 8]
Samsung LED AMERICA, Inc.,mSpot Inc.,Nanoradio
Inc., Samsung Electronics Panama. S.A, Samsung
Electronics Corportativo SA de CV, Samsung
Electronics Digital Appliance Mexico SA de CV, Nvelo
Inc., Newton Sub. Corp.
[Europe/MEA/CIS: 11]
Samsung LED Europe GmbH, Samsung Nanoradio
166
Design Center, Nanoradio Hellas AE, General RF
Modules AB, Samsung Cambridge Solution Centre
Limited, Samsung Denmark Research Center ApS,
Samsung Electronics Egypt S.A.E, Samsung
Electronics Tunisia S.A.R.L, Samsung Electronics
Israel, Samsung France Research Center SARL,
Samsung Electronics Pakistan (Private) Ltd.
[China: 2]
Tianjin Samsung LED Co., Ltd., Samsung (China)
Semiconductor Co., Ltd.
[Domestic: 6]
Medison Healthcare, Samsung Mobile Display,
S-LCD, SVIC #7 Venture Capital Union, Prosonic,
SEHF-Korea
[America: 4]
Samsung LED AMERICA, Inc., HX Diagnostics, Inc.,
HX Reagents, Inc., Nanoradio Inc.
[Europe/MEA/CIS: 1]
Samsung LED Europe GmbH,
[Asia: 2]
Samsung Asia Private Ltd.,
Samsung Medison Japan Co., Ltd.
AMER = Americas; MEA = Middle East and Africa, CIS = Commonwealth of Independent States
Samsung Electronics 2014 Half Year Report
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AMER
Dec 31,
2013
June 30,
2014
25
26
Europe/
MEA/
CIS
55
55
Asia
22
21
China
Domestic
33
32
18
16
Total
Increase
Decrease
[Americas: 2]
NeuroLogica Corp.,
Intellectual Keystone Technology LLC.
[Europe/MEA/CIS: 1]
Samsung Electronics Switzerland GmbH
[Asia: 2]
153
Samsung Electronics Vietnam THAINGUYEN Co.,
Ltd., Samsung Electronics New Zealand Ltd.
[China: 3]
Samsung Network R&D Center China-Shenzhen,
Samsung R&D Institute China-Xian, SEMES (XIAN)
Co., Ltd.
150
[Domestic: 2]
Secron, GES
[Americas: 7]
Newton Sub. Corp., mSpot, Inc., Deltapoint Cardiac
Diagnostics, Inc., Samsung Medison America, Inc.,
Intellectual Keystone Technology LLC., Samsung
Medison Brasil Ltda., Samsung Electronics
Corporativo, SA de CV
[Europe/MEA/CIS: 7]
Samsung Telecoms (UK) Ltd., Samsung LCD
Netherlands R&D Center B.V, Samsung LCD
Netherlands R&D Center (UK) Limited,
General RF Modules AB, Samsung Medison France
S.A.S., Samsung Opto-Electronics GmbH, Samsung
Medison Italia S.r.l.
[Asia: 3]
Samsung Electronic Philippines Manufacturing Corp.,
Batino Realty Corporation, TNP Small/Medium Size &
Venture Enterprises Growth Promotion Investment
Limited Partnership(TSUNAMI)
[China: 2]
Samsung LCD Netherlands R&D Center (HK)Limited,
Medison (shanghai) Co., Ltd.
[Asia: 1]
Medison Medical Systems India Private Ltd.
[China: 1]
Medison Medical Equipment Shanghai Co., Ltd.
[Domestic: 2]
Samsung Blue wings, World cyber games
[America: 1]
RT SV CO-INVEST, LP
(Important changes in executives)
Following the annual general shareholder meeting on March 16, 2012, of three Executive Directors with expired
terms (Gee-Sung Choi, Yoon-Woo Lee, Ju-Hwa Yoon), Yoon-Woo Lee retired and Gee-Sung Choi and Ju-Hwa Yoon
were re-appointed. Oh-Hyun Kwon was newly appointed as Executive Director. In addition, of three Independent
Directors with expired terms (Dong-Min Yoon, Jae-Woong Lee, Oh-Soo Park), Jae-Woong Lee and Oh-Soo Park
retired and Dong-Min Yoon was re-appointed. Han-Joong Kim and Byeong-Gi Lee were newly appointed as
Independent Directors.
On June 8, 2012, the CEO was changed from Gee-Sung Choi to Oh-Hyun Kwon.
On February 7, 2013, Independent Director Dong-Min Yoon retired (deceased).
On March 14, 2013, Executive Directors Gee-Sung Choi and Ju-Hwa Yoon resigned.
Following the shareholders’ meeting on March 15, 2013, Boo-Keun Yoon, Jong-Kyun Shin, and Sang-Hoon Lee were
newly appointed as Executive Directors. Independent Director In-Ho Lee was reappointed, and Kwang-Soo Song and
Eun-Mee Kim were newly appointed as Independent Directors.
On March 15, 2013, we appointed three CEOs, executive directors Boo-Keun Yoon and Jong-Kyun Shin were newly
appointed as CEO in addition to CEO Oh-Hyun Kwon.
As of the reporting date, the Company’s BOD is comprised of four Executive Directors (Oh-Hyun Kwon, Boo-Keun Yoon,
Jong-Kyun Shin, Sang-Hoon Lee) and five Independent Directors (In-Ho Lee, Han-Joong Kim, Byeong-Gi Lee, KwangSoo Song and Eun-Mee Kim).
Samsung Electronics 2014 Half Year Report
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(Organizational Structure)
In December 2012, following an organizational change, CE and IM businesses were upgraded to individual division
status, and the IT Solution business was divided into Printing Solution and Computer businesses. The Printing
Solution business was incorporated into the CE division and the Computer business was integrated into the Mobile
business under the IM division. The Medical Device business team was upgraded to a business status within the CE
division.
In December 2013, the Digital Imaging business was changed to team status, and newly established within the
Mobile business.
[As of December 2012]
Before
DMC division
(CE: Visual display, Digital appliances)
(IM: Mobile, IT solution, Network, Digital imaging)
Business
organization
After
CE division (Visual display, Digital appliances, Printing
solution, Medical devices)
IM division (Mobile, Network, Digital imaging)
DS division (Memory, SYS.LSI, LCD,LED)
DS division (Memory, SYS.LSI, DP, LED)
Korea, North America, Latin America, Europe, CIS, Southwest
Asia, Southeast Asia, China, Middle East, Africa
Korea, North America, Latin America, Europe, CIS, Southwest Asia,
Southeast Asia, China, Middle East, Africa
Americas(DS), Europe(DS), China(DS), Southeast Asia(DS),
Japan(DS)
Americas(DS), Europe(DS), China(DS), Southeast Asia(DS), Japan
(DS)
Before
After
CE division (Visual display, Digital appliances, Printing
solution, Medical devices)
CE division (Visual display, Digital appliances, Printing
solution, Medical devices)
IM division (Mobile, Network, Digital imaging)
IM division (Mobile, Network)
DS division (Memory, SYS.LSI, DP, LED)
DS division (Memory, SYS.LSI, DP, LED)
Korea, North America, Latin America, Europe, CIS, Southwest
Asia, Southeast Asia, China, Middle East, Africa
Korea, North America, Latin America, Europe, CIS, Southwest Asia,
Southeast Asia, China, Middle East, Africa
Americas(DS), Europe(DS), China(DS), Southeast Asia(DS),
Japan(DS)
Americas(DS), Europe(DS), China(DS), Southeast Asia(DS), Japan
(DS)
Regional
headquarters
[As of December 2013]
Business
organization
Regional
headquarters
3. Changes in Capital
As of June 30, 2014, no changes were reported during the past five consecutive years.
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4. Stock Information
A. Total number of Stock
The total number of authorized shares according to the articles of incorporation is 500,000,000 (par value per share:
KRW 5,000). As of June 30, 2014, the Company has issued 147,299,337 shares of registered common stock and
22,833,427 of registered preferred stock without voting right (excluding canceled stock). The Company has canceled
8,310,000 shares of common stock and 1,060,000 shares of preferred stock. As of June 30, 2014, the number of
floating common stock is 130,962,651 and the number of floating preferred stock is 19,853,734, excluding treasury
shares (16,336,686 common and 2,979,693 preferred).
[As of June 30, 2014]
(Unit: shares)
Classification
Type of Stocks
Common
Preferred
Note
Total
I. Number of authorized stocks
400,000,000
100,000,000
500,000,000 -
II. Number of stocks issued
155,609,337
23,893,427
179,502,764 -
8,310,000
1,060,000
9,370,000 -
-
-
- -
8,310,000
1,060,000
3. Redemption of redeemable stocks
-
-
- -
4. Others
-
-
- -
147,299,337
22,833,427
170,132,764 -
16,336,686
2,979,693
19,316,379 -
130,962,651
19,853,734
150,816,385 -
III. Number of stocks decreased
1. Capital Reduction
2. Number of stocks canceled
IV. Number of Outstanding Shares (II-III)
V. Treasury shares
VI. Number of Floating Shares (IV-V)
9,370,000
Cancellation of
treasury shares
※ The Company’s common stock carry voting rights but preferred stock carry no voting rights.
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B. Treasury Shares
In the first half of 2014, Samsung Electronics distributed 47,530 common stocks in relation to the exercise of previously
granted stock options of current and former management and employees. As of June 30, 2014, the Company holds
16,336,686 common treasury shares and 2,979,693 preferred treasury shares.
[As of June 30, 2014]
(Unit: Shares)
Acquisition method
Intra-market direct acquisition
(Within dividend related capital gains limit)
Share
type
Periodbeginning
shares
Common
Change
Period-end
shares
Acquisition
(+)
Disposal
(-)
Cancellation
(-)
16,384,216
-
47,530
-
16,336,686
Preferred
2,979,693
-
-
-
2,979,693
Common
16,384,216
-
47,530
-
16,336,686
Preferred
2,979,693
-
-
-
2,979,693
Total
C. Types of Registered Stock
The Company has two types of registered equity securities: 1) Common stock; 2) Non-voting and non-cumulative
preferred stock.
The shareholders of preferred stock are entitled to dividend payments of an additional 1% of face value compared to
shareholders of common stock. As of June 30, 2014, the total number of outstanding preferred stock is 22,833,427.
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5. Voting Shares
Samsung Electronics has 147,299,337 outstanding common stocks, which represents 29.5% of total authorized shares.
There are 22,833,427 outstanding preferred stocks (with no voting rights). The Company holds 16,336,686 treasury shares
(with no voting rights) and 12,506,577 shares with limited voting rights under relevant laws. Thus, the total number of
shares with voting rights is 118,456,074.
[As of June 30, 2014]
(Unit: Shares)
Number
of shares
Classification
Note
Common
147,299,337 -
Preferred
22,833,427 -
Shares with no voting rights (B)
Common
16,336,686 Treasury share according to Korean Commercial Act
Shares with no voting rights according
to Articles of Incorporation (C)
Preferred
22,833,427 2,979,693 preferred treasury shares included
Common
Restricted by the Monopoly Regulation and Fair Trade Act:
12,479,184 10,622,814 shares held by Samsung Life Insurance & 1,856,
370 shares held by Samsung Fire & Marine Insurance
Number of outstanding shares (A)
Shares with limited voting rights under
relevant laws (D)
Common
27,393
Restricted by the Insurance Business Act: Some part of shares
held by special account of Samsung Life Insurance
Common
118,456,074 -
Preferred
- -
Shares with voting rights
(F = A - B - C - D)
※ According to the Monopoly Regulation and Fair Trade Act, shareholders with limited voting rights (D) can exercise certain rights
in accordance with related laws, including the right to vote on agendas such as the appointment/dismissal of directors and
revisions to the Articles of Incorporation.
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6. Shareholder Returns
As a part of the Company’s shareholder return policy, a part of profit has been returned to shareholders by way of
dividends and share buyback. The Company carefully considers strategic investments for sustainable growth, business
performance, and cash flows in determining the level of total shareholder return.
Dividends paid out in the recent three fiscal years are as follows:
(Unit: Shares / %)
1H 2014
Classification
2013
(January 1 ~ June 30)
Par value per share (won)
2012
5,000
5,000
5,000
9,419,000
17,929,520
17,398,530
EPS (won)
62,460
118,946
115,576
Total cash dividend (million won)
75,408
2,156,969
1,206,562
Total stock dividend (million won)
-
-
-
0.8
12.0
6.9
Common
0.04
1.0
0.5
Preferred
0.05
1.4
1.0
Common
-
-
-
Preferred
-
-
-
Common
500
14,300
8,000
Preferred
500
14,350
8,050
Common
-
-
-
Preferred
-
-
-
Net profit (million won)
Dividend payout ratio (%)
Cash dividend yield (%)
Stock dividend yield (%)
Cash dividend per share (won)
Stock dividend per share (share)
※ 2014 interim dividend declared was KRW 75,408 million (KRW 500 per share).
※ Based on separate financial statements.
※ EPS denotes basic earnings per common share.
※ For further information relating to the calculation of basic EPS, refer to Note 『22. Earnings per share』in the Interim Separate
Financial Statements
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II. Businesses Overview
1. Overview
A. Business Overview by division
In addition to our headquarters in Korea, Samsung Electronics is comprised of 150 subsidiaries across the world including
nine (9) Consumer Electronics (“CE”) and Information Technology & Mobile Communications (“IM”) divisions and five
(5) Device Solutions (“DS”) division regional headquarters of sales and production.
Samsung Electronics is comprised of three business divisions: CE, IM and DS. The CE division engages in the production
and sales of CTVs, monitors, printers, air conditioners and refrigerators, and the IM division focuses on the production
and sales of handheld phones (HHPs) (such as feature phones and smartphones), network systems, and computers.
The DS division is comprised of the Semiconductor business which manufactures and sells DRAM and Mobile AP, etc.
and the Display Panel (“DP”) business which manufactures and sells TFT-LCD and OLED panels for TV, Monitor,
Notebook PC, and Mobile devices.
<Major products by business division>
DS
Division
Business Division
Major Products
CE Division
CTV, Monitor, Printer, Air Conditioner, Refrigerator, Washing Machine, Medical Devices, etc.
IM Division
HHP, Network System, Computer, Digital Camera, etc.
Semiconductor Business
DRAM, NAND Flash, Mobile AP, etc.
DP Business
TFT-LCD, OLED, etc.
The Company’s corporate headquarters is established at the following 5 locations: Suwon (CE division and R&D Center);
Gumi (IM division); Giheung and Hwasung (Semiconductor business); and Gwangju (Home Appliance business). The
Company has 16 consolidated domestic subsidiaries, including Samsung Display for display panel production, Samsung
Electronics Sales for domestic retail sales, Samsung Electronics Service for after service care, and Samsung Electronics
Logitech for logistics. We have 134 overseas subsidiaries for product manufacturing, sales, and R&D.
In the Americas, we have 26 subsidiaries responsible for product manufacturing and sales, including SEA (New Jersey,
United States), responsible for sales of products such as CTV in the US, STA (Dallas, United States), responsible for sales
of HHPs and other communication products in the US, SAMEX (Tijuana, Mexico), responsible for manufacturing CTVs
and SAS (Austin, United States), responsible for manufacturing semiconductor products.
In Europe, we operate 33 subsidiaries, including SEUK (UK), SEF (France), SEG (Germany) and SEI (Italy). SESK
(Slovakia) and SEH (Hungary) are responsible for manufacturing CTVs and SEPM (Poland) is responsible for
manufacturing home appliances.
In Asia, we have 21 overseas subsidiaries, including SAPL (Singapore), SEAU (Australia), SEPCO (Philippines) and
SME (Malaysia) responsible for regional sales. In addition, we operate numerous production sites including SEV
(Vietnam) for HHP, SDMA (Malaysia) for CTV, and SIEL (India) for both CTV and HHP.
We operate 32 subsidiaries in China including regional sales operations in Beijing (SCIC) and Hong Kong (SEHK). We
also operate production and processing facilities sites in Tianjin and Suzhou (TSTC, SSEC and SESS)
In addition, we have 22 production and sales subsidiaries across Africa, the Middle East and the CIS regions.
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[CE Division]

Industry Overview
Since the development of black-and-white TVs in 1926 and subsequent mass production of Color TVs, technological
development has led to products such as Trinitron CRT (1967) and flat CRT (1996). As the penetration rate in major
countries reached over 90% the CRT TV business became stagnant. The industry regained strong growth momentum
following the launch of Flat Panel TVs (LCD, PDP) with the expansion of digital broadcasting (UK/US 1998~).
FP-TVs replaced the CRT market following explosive annual average growth of 36% from 2004 to 2013 (Source: 2Q14
Display Search, Based on Quantity) due to improved product performance, including design and picture quality, in
addition to a sharp decline in prices. In addition, 3D TVs were launched in 2010, and from 2011 to 2012, the rise of
internet video services (OTT, OVER-THE-TOP) and increasing user interest in smart devices led to the birth of the Smart
TV market. In 2013, OLED and UHD TV with innovatively high resolution were launched and the TV market continues
to evolve.
Annual TV demand in 2014 is expected to be up 0.3% from the previous year, reaching 222.6 million units shipped. LCDTV (including LED-TV) demand is expected to increase 4.5% YoY to 217.11 million units shipped, and PDP-TV demand
to decrease 49.2% YoY to 5.23 million (Source: 2Q14 Display Search).

Market Condition
The trend towards large size and high-resolution screens is accelerating due to intensified competition between
manufacturers. Accordingly, market share of major manufacturers with high-quality products and brand power is
increasing. The FP-TV market has been growing in advanced markets, but demand is also expected to grow in emerging
markets such as BRICS in the future. In addition, as consumer demand for high-resolution and slim design increases, sales
of LED TV, with eco-friendly LED BLU (Back Light Unit) which helps brightness and contrast as well as electricity
consumption, is on the rise.
The Company has focused on smart TV sales based on forecasts that consumers’ desire to acquire internet information
from TVs will increase. The Company led the smart TV market in 2011 through launching smart TVs with various smart
hub-based Apps and implementing a premium category sales strategy. In 2012, the Company introduced a new market
trend with the introduction of the Smart Interaction system based on voice and gesture commands for convenient
interaction with devices. In 2013, the Company introduced a system that recommends TV programs based on the user’s
viewing history. In 2014, the Company plans to enhance usability through innovation, secure various video contents, and
strengthen its platform in order to maximize viewing experience.
<Market share of major products in the CE division >
Product
1H 2014
2013
2012
CTV
24.0%
21.6%
21.1%
※ 2012 and 2013 Market share data is from research agency Display Search (Global market share in quantity). Market share as at
June 30, 2014 is the Company’s estimation.

Business Outlook
The Company is addressing market demand with an expansive portfolio product mix within LCD and PDP categories. The
Company has maintained market leadership in overall TV, FP-TV, LCD-TV sales for eight consecutive years from 2006 to
2013 (Source: 2Q14 Display Search).
In 2009, the Company was industry first to launch the LED TV (LED BLU, ultra-slim/ultra-light and eco-friendly) as a
separate product category. In the first quarter of 2010, the Company took the lead in the 3D TV market through the launch
of a 3D Total Solution offering 3D TV/BDP/glasses/BD Title. In addition, the Company launched the world’s first TV
App store ‘Samsung Apps’ in 2010 and smart hub with services including ‘Your Video’, ‘Social TV’, ‘Search All’, ‘Web
Browser’ in 2011 and established consumers perception that ‘Smart TV=SAMSUNG’.
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In 2012, the Company enhanced service features for broader consumer markets, by developing exercise and educational
contents to enhance the ‘All Share’ function that facilitates connections with other digital devices. Such enhancements
have helped to maintain competitive edge in the smart TV market. In 2013, the Company led the market with OLED TV
and UHD TV with technological innovations in picture definition and resolution. For 2014, the Company plans to capture
market leadership in markets with high growth potential, such as UHD TV.
[IM Division]

Industry Overview
The mobile phone industry started with the first generation analogue phone in the early 1980s. It evolved to second
generation digital, and to third generation mobile communication such as WCDMA with high-speed data transmission.
Today, fourth generation mobile communication technology with ultrahigh-speed data transmission is becoming
commonplace in the market. In particular, the LTE market is spreading to all parts of the world, and LTE-Advanced with
higher speeds has been commercialized in Korea since June 2013 through cooperation between the Company and mobile
communication carriers. Recently, the mobile phone market is changing rapidly around not only smartphone and tablet but
also new hybrid product categories such as Galaxy Note. This puts emphasis on not only existing hardware
competitiveness but also on software competitiveness including Application and UX that enables users to access useful
information more conveniently. Accordingly, industry business models are shifting to integrate software and hardware
capabilities.
As of December 31, 2013, the worldwide penetration rate for mobile phones was 71%, and it is expected to reach 74% in
2014. (Source: Strategy Analytics, April 2014)

Market Condition
The size of the overall mobile phone market is expected to reach 1.8 billion units (1.2 billion smartphones) in 2014, a
growth of 7% from 2013.
The tablet market is expected to reach 290 million units shipped by the end of 2014.
(Source: Strategy Analytics – Mobile: June’14, smartphone: April, tablet: May)
< Market share of major products of the IM division >
Product
HHP
1H 2014
2013
24.9%
2012
26.8%
25.1%
※ Market share data is from research agency Strategy Analytics (Global market share in quantity).

Business Outlook
The Company strengthened market leadership by diversifying its product line up from premium to mass market models
and by leading new markets such as LTE. The Company has maintained its status as No.1 in terms of smartphone global
market share, based on the success of Flagship smartphones such as the Galaxy S series and Galaxy Note.
In 2014, the Company plans to reinforce market leadership in premium smartphone and tablet categories and create
consumer demand with new products, such as Galaxy Gear and Fit, and advanced features, such as Flexible Display. We
will also enhance our competitiveness by strengthening product line-ups for the mass market category. The Company will
continue to make investments in R&D in preparation for future growth and enhanced market leadership position.
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[DS Division]
- Semiconductor

Industry Overview
The semiconductor industry is cyclical by nature, and imbalances between supply and demand frequently occur. Many
manufacturers have not been able to maintain competitiveness during periods of global economic recession and
oversupply, resulting in consolidation within the industry. Supply and demand volatility is expected to decrease as a result
of increased demand for semiconductors in new smartphone, tablet PC and server markets.

Market Condition
Throughout 2014, PC DRAM prices are expected to remain strong. In the third quarter of 2014, demand is expected to
increase driven by increases in memory capacity adopted by new premium smartphones (2GB → 3GB). Supply shortage
is expected for higher capacity memory products as a result of manufacturers’ inability to stabilize their fab capacity.
NAND prices are expected to stabilize as a result of mobile manufacturers launching new smartphone products.
< Market share of major products of the semiconductor business >
Product
1H 2014
2013
2012
DRAM
38.9%
36.2%
41.0%
※ 2012 and 2013 market share data is from research agency iSuppli (Global market share in amount). June 30, 2014 market share is
the Company’s estimation.

Business Outlook
The Company was the first to develop and produce DRAM 20nm products and has also developed products with
differentiated design, secure technology and cost competitiveness ahead of competitors. The Company has commenced
mass production of Vertical-NAND products to enter the premium market. The Company is also maximizing cost
competitiveness to remain ahead of competitors by developing high-performance solution products, such as SSD and
eMCP, and expanding into 3bit product categories.
Going forward, the Company plans to maintain its No.1 position in the memory industry by reducing costs, strengthening
its technological advantage, development of advanced processing technology and differentiated high-performance
products.
-DP

Industry Overview
Display products include TFT-LCD (Thin Film Transistor Liquid Crystal Display) and OLED (Organic Light Emitting
Diode) panels.
TFT-LCD panel is a liquid crystal based display that consumes less electricity and features a thinner profile, while
maintaining high resolution. It has a wide range of potential applications in devices of all sizes and functionality. The
market growth rate has slowed down recently due to a reduction of replace demands for CRT monitors and high market
penetration of LCD TVs.
OLED panels use organic materials which offer wide contrast and color, high color concordance, and fast response rates.
Such differentiating features provide advantages in smartphone products, and as a result the market demand for under 10”
small to medium size displays has increased.
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
Market Condition
During the second half of 2014, the large size panel market is expected to grow thanks to year-end seasonal demand. In
particular, we expect market demand increases for large size TVs (over 40” and UHD TV), however, we expect relatively
stable demand and supply market conditions until the end of the year as a result of increased investment in production for
new products such as UHD TV.
For Mobile, the product mix is expected to expand, particularly in the mid-range category. The trend toward higher
resolution and larger size panels is expected to continue, while the demand for new product categories such as wearable
devices is expected to increase.
< Market share of major products of the DP division >
Product
Display Panel
1H 2014
2013
21.6%
2012
20.4%
25.4%
※ 2012, 2013, and 1H 2014 M/S data are from Display Search (Global market share, large size panel in amount).

Business Outlook
The Company is improving competitiveness through increasing production yields by developing advanced process
technologies, developing high transmission panels, and domestically producing core equipment. In addition, the Company
continues to improve profitability through close collaboration with TV and smartphone manufacturers from R&D to
production.
For the large size panel business, the Company plans to improve profitability through increased cost competitiveness
while meeting the demand for new premium products such as UHD TV and Curved TV.
For mobile, the Company plans to secure long-term growth momentum by expanding its customer base through enhanced
cost competitiveness, and expansion of new product categories, including mid-range products and Flexible Ultra HighResolution products.
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B. Financial Summary by Division
(Unit: KRW million, %)
Division
CE
Classification
Semiconductor
DS
DP
Amount
2013
Portion
Amount
2012
Portion
Amount
Portion
59,481,654
23.5%
58,245,577
21.7%
125,088,762
22.4%
117,897,781
24.6%
Internal sales
35,161,983
23.9%
34,227,723
21.6%
74,757,247
22.7%
66,792,679
24.0%
Net sales
24,319,671
22.9%
24,017,854
21.8%
50,331,515
22.0%
51,105,102
25.4%
958,334
6.1%
663,483
3.6%
1,673,343
4.5%
2,324,036
8.0%
Total asset
43,512,402
13.2%
46,226,578
14.7%
47,183,953
14.9%
38,947,252
14.1%
Total sales
129,346,379
51.1%
147,497,108
54.9%
299,161,654
53.6%
224,920,171
46.9%
Internal sales
68,452,020
46.6%
79,138,817
50.0%
160,344,435
48.7%
119,075,488
42.8%
Net sales
60,894,359
57.4%
68,358,291
62.0%
138,817,219
60.7%
105,844,683
52.6%
Operating profit
10,851,041
69.2%
12,791,394
69.9%
24,957,741
67.8%
19,418,235
66.8%
Total asset
95,118,965
28.8%
85,945,829
27.3%
86,132,881
27.1%
68,743,115
24.9%
Total sales
35,393,643
14.0%
31,530,793
11.7%
70,908,145
12.7%
66,976,623
14.0%
Internal sales
16,215,670
11.0%
14,275,268
9.0%
33,471,566
10.2%
32,090,017
11.5%
Net sales
19,177,973
18.1%
17,255,525
15.6%
37,436,579
16.4%
34,886,606
17.3%
Operating profit
3,810,600
24.3%
2,830,611
15.5%
6,887,978
18.7%
4,173,730
14.4%
Total asset
82,131,998
24.9%
68,650,979
21.8%
76,224,096
24.0%
67,136,914
24.4%
Total sales
25,725,314
10.2%
31,425,221
11.7%
61,294,886
11.0%
69,359,762
14.5%
Internal sales
13,299,474
9.1%
16,135,023
10.2%
31,457,770
9.5%
36,360,406
13.1%
Net sales
12,425,840
11.7%
15,290,198
13.9%
29,837,116
13.0%
32,999,356
16.4%
132,751
0.8%
1,888,765
10.3%
2,980,563
8.1%
3,214,750
11.1%
Total asset
46,024,425
13.9%
44,066,518
14.0%
42,195,558
13.3%
41,429,074
15.0%
Total sales
63,256,060
25.0%
63,687,449
23.7%
134,394,781
24.1%
136,724,256
28.5%
Internal sales
31,468,769
21.4%
30,825,778
19.5%
66,633,875
20.2%
68,436,962
24.6%
Net sales
31,787,291
30.0%
32,861,671
29.8%
67,760,906
29.6%
68,287,294
34.0%
Operating profit
3,964,702
25.3%
4,765,970
26.0%
10,000,665
27.2%
7,416,325
25.5%
153,106,679
46.4%
139,353,591
44.3%
145,872,686
45.9%
130,371,546
47.3%
Operating profit
Total
1H 2013
Portion
Total sales
Operating profit
IM
1H 2014
Amount
Total asset
※ Restated on 1H 2014 basis (presented on a consolidated basis).
※ Net sales includes internal sales between divisions.
Net sales for the first half of 2014 were KRW 106,029 billion. By division, CE reported KRW 24,320 billion (22.9%)
and IM reported KRW 60,894 billion (57.4%). The DS division contributed approximately 30% of net sales, KRW
19,178 billion (18.1%) by semiconductor business and KRW 12,426 billion (11.7%) by DP business.
Operating profit for the first half of 2014 was KRW 15.676 trillion. The IM division accounted for 69.2% with KRW
10,851 billion and the DS division accounted for 25.3% with KRW 3,965 billion.
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
Reasonable Allocation of Common SG&A (Selling General & Administrative) Expenses and Assets
(1) For common SG&A expenses, specific expenses are allocated to each product/model, and other common expenses that
cannot be attributed by product/model category are reasonably allocated throughout the Company based on an allocation
standard (expense-to-sales ratio, number of personnel).
(2) For common assets, assets that can be directly allocated (inventory assets, fixed assets, investment assets) are allocated
to the corresponding organizational unit. Assets that are commonly managed are allocated to each division based on an
allocation standard (expense-to-sales ratio, pre-tax profit).
2. Key Products and Services
A. Revenue
During the first six months of 2014, the CE division’s revenue accounted for 22.9% of the total net revenue with KRW
24,320 billion, the IM division accounted for 57.4% with KRW 60,894 billion, and the DS division accounted for 30.0%
with KRW 31,787 billion.
The Company’s net revenues by division as of June 30, 2014 are as follows:
(Unit: KRW 100 million, %)
Division
Major Products
CE
CTV, monitor, printer, air conditioner, refrigerator, washing machine, medical
equipment
243,197
22.9%
IM
HHP, network system, computer, digital camera
608,944
57.4%
Semiconductor
DRAM, NAND Flash, Mobile AP
191,780
18.1%
DP
TFT-LCD, OLED
124,258
11.7%
Division Total
317,873
30.0%
-
-109,728
-10.3%
Total
1,060,286
100.0%
DS
Others
Net Revenue
Portion
※ Includes sales between divisions (on consolidated basis).
☞ Refer to 『5. Sales and Distribution』 for sales by each product.
B. Average Selling Price (ASP) Changes
During the first half of 2014, CTV ASP decline continued from 2013. HHP ASP remained at a similar level from 2013,
while Memory ASP decline slowed down from 2013 to the level of 10.5% due to stable market demand and supply
conditions. The downward momentum of Display panel ASP continued due to weak demand from China and developed
markets.
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3. Key Raw Materials
(On consolidated basis as of June 30, 2014)
(Unit: KRW 100 million, %)
Division
Type
Item
Specific usage
Purchase price
Portion
Note (supplier)
Raw materials
Display panel
Color picture signaler
18,412
Raw material
PDP module
Color picture signaler
5,463
Raw material
Others
81,540
77.3%
Division Total
105,415
100.0%
17.5%
CMI, AUO, etc.
5.2% Samsung SDI, etc.
CE
Raw material
Mobile display panel
Color picture signaler
26,740
12.4%
Iljin Display, etc.
Raw material
Base Band Chip
CPU
28,253
13.0%
Qualcomm, etc.
Raw material
Others
161,507
74.6%
Division Total
216,500
100.0%
IM
DS
Raw material
Glass
Glass substrate for display
9,379
9.4%
Corning Precision
Materials, etc.
Raw material
POL
Polarizer plate
9,269
9.2%
Dongwoo FineChem, NITTO, etc.
Raw material
Window
Tempered glass
6,187
6.2%
BIEL, etc.
Raw material
Wafer
Semiconductor wafer
4,250
4.2%
SUMCO, etc.
Raw material
Others
71,099
71.0%
Division Total
100,184
100.0%
248
-
422,347
-
Others
Total
※ As of June 30, 2014, Samsung SDI is an affiliate of the Company.
For the CE division, key raw materials include display panels for TVs and monitors and PDP modules. For the IM
division, key raw materials include display panels for mobile and Baseband Chips. For the DS division, key raw materials
include glass, polarizer (POL) and wafers.
Large display panels for TVs and monitors are supplied by Cummins (CMI) and AU Optronics (AUO), mobile display
panels are supplied by Iljin Display, and Baseband Chips are supplied by the System LSI division and Qualcomm. The
Company manufactures display panels with glass and POL supplied by Samsung Corning and Dongwoo Fine-Chem.
(Raw Materials Price Trends)
The Price of TV and monitor display panels, which are the major raw materials of the CE division, declined 8% on
average from 2013 due to oversupply from increased CAPEX and improved productivity. For the IM division, the price of
mobile display panels declined by 2%, and Baseband chip increased by 24%, from 2013. For the DS division, the price of
raw materials continues to decrease. Semiconductor wafer prices have declined by 17%, and glass prices for display
panels by 12%, from 2013.
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4. Production and Facilities
A. Production Capacity, Output, Utilization Rate
(Capacity)
(Unit: 1,000)
Division
CE
IM
2014 (1.1~6.30)
2013
2012
Quantity
Quantity
Quantity
Item
CTV
53,102
53,375
275,650
556,600
461,950
77,339,000
116,909,000
80,159,000
4,377
8,260
9,218
HHP
Memory
DS
31,317
DP
※Global production capacity for major product categories
The CE and IM division production capacity, by major product, is calculated as follows:
The average number of lines (x) the average output per hour (x) the average operation hours per day (x) the days of
operation
Memory production capacity for DS division is calculated as follows:
Converted output (1GB equivalent) / The utilization rate.
DP production capacity is calculated as follows:
The total producible panel surface area / the dimensions of eighth generation Glass (2200x2500mm)
(Output)
(Unit: 1,000)
Division
2014 (1.1~6.30)
2013
2012
Quantity
Quantity
Quantity
Item
CE
CTV
26,545
47,527
48,357
IM
HHP
223,695
499,480
416,632
77,339,000
116,909,000
80,159,000
3,937
7,340
7,800
Memory
DS
DP
※Global output for major product categories
For the first half of 2014, the CE division CTV output was 26.5 million (major production sites: Korea, China, Mexico,
Brazil, and Hungary). The IM division HHP output was 223.7 million (major production sites: Korea, China, Vietnam,
and Brazil). The DS division Memory output (1GB equivalent) was 77,339 million (major production sites: Korea and
China). The DS division DP output was 3.9 million (major production sites: Korea, China, and Slovakia).
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(Utilization Rate)
(Unit: 1,000)
1H 2014
Production
capacity
1H 2014
Actual output
Division
Item
Utilization Rate
CE
CTV
31,317
26,545
84.8%
IM
HHP
275,650
223,695
81.2%
In the first half of 2014, CE and IM utilization rates were calculated as actual output relative to production capacity.
CTV is 84.8% and HHP is 81.2%.
(Unit: hours)
Division
DS
Item
1H 2014
Actual
operating
hours
1H 2014
Operating
hours capacity
Utilization Rate
Memory
26,064
26,064
100.0%
DP
43,440
42,480
97.8%
The DS division operates Memory and DP production in three shifts (24 hours a day). Cumulative operating days in the
first half of 2014, including holidays, was 181 days. The utilization rate was calculated as actual hours [181 days (x)
number of production lines (x) 24 hours] relative to production capacity.
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B. Production Facilities and Investment
(1) Key facilities for production and operation
The Company’s operational activities includes manufacturing, development, marketing, and sales at domestic operations –
including operations in Seocho, Seoul, Suwon, Gumi, Giheung, Onyang, Gwangju – and 9 regional headquarters under
the CE and IM divisions and 5 under the DS division in North America, Europe, and China.
[Operations]
Region
Domestic
(8)
Overseas
(9 regional headquarters for
CE and IM Division)
Overseas
(5 regional headquarters for
DS Division)
Headquarters
Location
Seocho
Seoul, Korea
Suwon
Suwon, Korea
Gumi1
Gumi, Korea
Gumi2
Gumi, Korea
Giheung
Yongin, Korea
Onyang
Asan, Korea
Hwaseong
Hwaseong, Korea
Gwangju
Gwangju, Korea
North America
New Jersey, US
Europe
London, UK
China
Beijing, China
Southeast Asia
Singapore, Singapore
Southwest Asia
New Delhi, India
CIS
Moscow, Russia
Middle East
Dubai, UAE
Africa
Johannesburg, Republic of South Africa
Latin America
Sao Paolo, Brazil
Americas
San Jose, US
Europe
Eschborn, Germany
China
Shanghai, China
Southeast Asia
Singapore, Singapore
Japan
Tokyo, Japan
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The Company’s Property, Plant and Equipment includes land, buildings and structures, machinery and equipment, and
construction in progress. As of June 30, 2014, the book value is KRW 75,594 billion, an increase of KRW 97.3 billion
from December 31, 2013. In the first half of 2014, new acquisitions of KRW 10,184 billion and depreciation of KRW
8,205 billion were recorded.
(Unit: KRW million)
Classification
Buildings and Machinery and ConstructionStructures
Equipment
in –progress
Land
Others
Total
Book value
7,429,287
15,715,064
36,498,478
13,840,172
2,013,387
75,496,388
Acquisition cost
7,429,287
23,375,035
118,621,699
13,840,172
5,518,351
168,784,544
-
(7,659,971)
(82,123,221)
-
(3,504,964)
(93,288,156)
47,588
2,337,898
9,490,015
(2,348,646)
656,764
10,183,619
Acquisition as a result of business
combination
-
-
-
-
-
-
Depreciation
-
(637,098)
(7,137,246)
-
(430,929)
(8,205,273)
Disposal/Discard/Damage
(62,135)
(414,903)
(149,347)
17,803
(39,425)
(648,007)
Others
(3,063)
(219,570)
(403,146)
(543,910)
(63,385)
(1,233,074)
Book value
7,411,677
16,781,391
38,298,754
10,965,419
2,136,412
75,593,653
Acquisition cost
7,411,677
24,886,156
126,054,707
10,965,419
5,796,817
175,114,776
-
(8,104,765)
(87,755,953)
-
(3,660,405)
(99,521,123)
At 1 January 2014
Accumulated depreciation
(Including accumulated impairment loss)
General acquisition and capital expenditure
Increase/
(decrease)
Balance at
30 June 2014
Accumulated depreciation
(Including accumulated impairment loss)
※ Others: Includes effects of changes in FX rates and changes in the scope of consolidated financial statements.
※ Property, Plant and Equipment above is presented on a consolidated basis.
(2) CAPEX
During the first half of 2014, the Company invested KRW 10.2 trillion in CAPEX, including upgrade production lines of
semiconductor and DP business. The total projected CAPEX for 2014 is at a similar level with actual CAPEX in 2013,
although this is subject to change depending upon the business environment.
[CAPEX by division]
(Unit: KRW 100 million)
Investment in
1H 2014
Business
Purpose
Period
Assets
Semiconductor
Establishment, addition,
upgrade
Jan '14 ~ Jun ’14
Buildings, facilities
63,536
DP
Establishment, addition,
upgrade
Jan '14 ~ Jun '14
Buildings, facilities
14,189
Others
Others
Jan '14 ~ Jun '14
Buildings, facilities
24,111
Total
101,836
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5. Sales and Distribution
A. Sales
In the first half of 2014, the Company recorded KRW 106,029 billion of total revenue, a decline of 3.9% from the prior
year. By division, the CE division revenue increased by 1.3% from 2013, the IM division revenue decreased by 10.9%,
and the DS division revenue decreased by 3.3% from 2013.
(Unit: KRW 100 million)
1H 2014
(’14.1.1~6.30)
Division
Sales types
Product categories
CE
Goods
Products
Service
Others
CTV, monitor, printer, air
conditioner, refrigerator,
washing machine, medical
equipment
243,197
503,315
511,051
IM
Goods
Products
Service
Others
HHP,
Network System, Computer,
Digital camera
608,944
1,388,172
1,058,447
Semiconductor
Goods
Products
Service
Others
DRAM,
NAND Flash, Mobile AP
191,780
374,366
348,866
DP
Goods
Products
Service
Others
TFT-LCD,
OLED
124,258
298,371
329,994
317,873
677,609
682,873
-109,728
-282,169
-241,335
1,060,286
2,286,927
2,011,036
DS
Division total
Others
Other revenue
Total
2013
2012
※ Includes internal sales between divisions.
※ Represented on 1H 2014 basis.
□ Sales by major product
(Unit: KRW 100 million)
Classification
1H 2014
2013
2012
CTV
154,464
331,207
350,381
Mobile
588,735
1,353,537
1,032,875
MEMORY
132,150
237,146
208,640
DP
124,258
298,371
329,994
※ Including internal sales between divisions.
※ Represented on 1H 2014 basis.
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□ Sales by sales type
(Unit: KRW 100 million)
Classification
1H 2014
Products
2013
2012
1,048,570
Service and other sales
Total
2,252,839
1,926,709
11,715
34,088
84,327
1,060,286
2,286,927
2,011,036
※Other sales consists of royalty income and rental income.
□ Sales by major region (on a parent company financial statement basis)
(Unit: KRW 100 million)
Classification
1H 2014
2013
2012
Korea
86,060
172,004
204,703
Americas
215,659
442,526
315,846
Europe
122,980
335,645
312,650
Asia and Africa
160,087
341,059
290,832
China
146,953
292,487
288,033
Total
731,739
1,583,721
1,412,064
B. Sales Channels
□ Domestic
Classification
Sales Channel
Consumer
Retailer
Distributor (Supermarket, Department Store, Home-Shopping, Internet)
Manufacture
(Facility)
Retailer
Cooperative Joint Market, Sales Shop, Open Stores
Consumer
Telecommunication Service Provider (SKT, KT, LG U+)
Direct Sales
□ Overseas
Classification
Sales Channel
Consumer
Retailer
Regional Sales Office
Dealer
Retailer
Distributor
Dealer
Retailer
Telecommunication Service Provider
Production
Subsidiaries
Regional Distribution Office
Regional Sales
Office
Consumer
Retailer
Dealer
Distributor
Retailer
Dealer
Dealer
Direct Sales
□ Sales ratio by channel
Channel
Wholesale
Retail
Special/direct sale
Others
Ratio
36%
22%
37%
5%
※ On a global basis
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C. Sales methods and conditions
□ Domestic
Classification
Channel
Collection
Incidental expense sharing
Exclusive
Agency
- Credit agreement (Cash, 30 day credit)
(Credit applied within 100% of collateral)
- Share cost under mutual agreement for each case
Distributor
General merchandise store,
Discount store, Department store,
Home shopping, Internet
Case by case contract
- Share cost under mutual agreement for each case
Special/direct sale
General companies
Case by case contract
Channel
Collection
Retailer
Retail store
Case by case contract
- Share cost under mutual agreement for each case
Dealer
General merchandise store,
Discount store, Department store
Case by case contract
- Share cost under mutual agreement for each case
Distributor
Direct sales to local distributors
Case by case contract
- Share cost under mutual agreement for each case
N/A
□ Overseas
Classification
B2B
General companies
Incidental expense sharing
Case by case contract
N/A
D. Sales Strategy
○ Expand market leadership based on smart devices
○ Provide differentiated value to customers through brand, products, and service
○ Strengthen operational capabilities for customer/market
○ Enhance sales capabilities
E. Major customers
During the first half 2014, major customers included Apple, Deutsche Telekom, Ingram Micro, Sprint and Verizon. Sales
to our five major customers accounted for about 13% of total sales.
6. Long-term Contracts
N/A
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7. Financial Risk Management
The Company’s financial risk management focuses on minimizing market risk, credit risk, and liquidity risk arising from
operating activities. To mitigate these risks, the Company implements and operates a financial risk policy and program that
closely monitors and manages such risks.
The finance team mainly carries out the Company’s financial risk management. With the cooperation of the Company’s
divisions, domestic and foreign subsidiaries, the finance team periodically measures, evaluates and hedges financial risk
and also establishes and implements global financial risk management policies.
Financial risk management officers are dispatched to the regional headquarters of each area including the United States of
America, UK, Singapore, China, Japan, Brazil and Russia to oversee application of global financial risk management
policies at the local finance centers.
Financial assets subject to the Company’s financial risk management are as follows: Cash and cash equivalents, short-term
financial instruments, available-for-sale financial assets, trade and other receivables and other financial assets. The
Company’s financial liabilities subject to financial risk management are as follows: Trade and other payables, borrowings,
debentures, and other financial liabilities.
A. Market risk
(1) Foreign exchange risk
The Company is exposed to foreign exchange risk arising from various currency exposures due to global operations. The
Company is mostly exposed to foreign currency volatility due to exchange positions of currencies, including the US Dollar,
EURO, Japanese Yen and Chinese Yuan.
To minimize foreign exchange risk arising from operating activities, the Company’s foreign exchange management
policy requires normal business transactions to be in local currency or for the cash-in currency to be matched with the
cash-out currency. The Company’s foreign exchange risk management policy also defines foreign exchange risk,
measuring period, ownership responsibilities, management procedures, hedging period and hedge ratio.
The Company prohibits all speculative foreign exchange transactions. The Company has established a global foreign
exchange system to manage exposures related to receivables and payables denominated in foreign currencies.
(2) Stock price risk
The Company’s investment portfolio consists of direct and indirect investments in equity securities classified as availablefor-sale, which is in line with the Company’s strategy.
A price fluctuation in relation to marketable equity securities of 1% would result in changes in other comprehensive
incomes (before income tax) of KRW 41,609 million, for the first half of 2014, and KRW 43,993 million, for the full year
2013.
(3) Interest rate risk
Risk of changes in interest rate for a floating interest rate financial instrument is defined as the risk that the fair value of
future cash flows of a financial instrument will fluctuate because of changes in market interest rates and the risk that cash
flows from investing/financing activities will fluctuate with changes in interest gain/loss. The Company is exposed to
interest rate risk mainly through interest bearing liabilities and assets. The Company has policies to minimize uncertainty
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and finance expenses from changes in interest rates. In order to avoid interest rate related risks, the Company maintains
minimum external borrowing by facilitating cash pooling systems on a regional and global basis. The Company manages
exposed interest rate risk via periodic monitoring and handles risk factors on a timely manner.
B. Credit risk
Credit risk arises during the normal course of transactions and investing activities where clients or other parties fail to
discharge an obligation. The Company monitors and sets counterparty’s credit limits on a periodic basis based on the
counterparty’s financial conditions, default history and other important factors.
Credit risk can arise from transactions with financial institutions which include financial instrument transactions such as
cash and cash equivalents, savings, and derivative instruments. To minimize such risk, the Company transacts only with
banks which have a strong international credit rating (S&P A and above), and all new transactions with financial
institutions with no prior transaction history are approved, managed and monitored by the Company’s finance team and
the local finance center. The Company carries out financial transactional contracts according to its debt ratio limit policy,
to provide collateral goods, and to collect external borrowings. The Company requires separate approval for contracts with
restrictions.
Most of the Company’s accounts receivable are adequately insured to limit exposure to credit risk. The Company
estimates that its maximum exposure to credit risk is the carrying value of its financial assets, net of impairment losses.
C. Liquidity risk
Due to large investments made by the Company, maintaining adequate levels of liquidity risk is critical. The Company
strives to achieve this goal by periodically forecasting its cash flow, estimating required cash levels, and managing income
and expenses.
The Company manages its liquidity risk by periodically forecasting projected cash flows. If abnormal signs are identified,
the Company works with the local finance center and provides liquidity support by utilizing a globally integrated finance
structure, such as Cash Pooling. In addition, the Company maintains a liquidity management process which provides
additional financial support by the local finance center and the Company. The Cash Pooling program allows sharing of
surplus funds among entities and contributes to minimizing liquidity risk and strengthening the Company’s competitive
position by reducing capital operation expenses and finance expenses.
In addition, the Company mitigates liquidity risk by contracting with financial institutions with respect to bank overdrafts
and foreign trade finance and by providing payment guarantees to subsidiaries. For large scale facility investments,
liquidity risk is minimized by utilizing internal reserves and long term borrowings according to the capital injection
schedule.
D. Capital risk management
The purpose of capital management is to maintain a sound capital structure. The Company monitors capital on the basis of
the ratio of total liabilities to total equity. This ratio is calculated by dividing total liabilities by total equity in the
consolidated financial statements.
The Company’s capital risk management policy has not changed since the fiscal year ended December 31, 2013. The
Company has maintained an A+ and A1 credit ratings from S&P and Moody’s, respectively.
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The total liability to equity ratios as of June 30, 2014 and December 31, 2013, are as follows:
(Unit: KRW million)
June 30, 2014
December 31, 2013
Total liabilities
65,209,610
64,059,008
Total equity
159,513,464
150,016,010
40.9%
42.7%
Total liabilities to equity ratio
E. Fair value measurement
- As of June 30, 2014, book value and fair value of financial instruments of the Company are as follows:
(Unit: KRW million)
Classification
June 30, 2014
Book value
December 31, 2013
Fair value
Book value
Fair value
Financial assets
Cash and cash equivalents
16,057,574
(*1)
16,284,780
(*1)
Short-term financial instruments
41,692,883
(*1)
36,722,702
(*1)
Available-for-sale financial assets
2,912,533
(*1)
1,488,527
(*1)
Trade receivables
24,432,856
(*1)
24,988,532
(*1)
Long-term available-for-sale financial assets (*2) 10,644,223
10,231,338
6,238,380
5,850,155
Others
6,702,087
6,668,886
5,472,956
5,436,470
Subtotal
102,442,156
91,195,877
Financial liabilities
Accounts payable
8,161,557
(*1)
8,437,139
(*1)
Short-term borrowing
9,325,033
(*1)
6,438,517
(*1)
Other accounts payable
6,876,450
(*1)
7,877,581
(*1)
Current portion of long term debt
1,163,288
(*1)
2,425,831
(*1)
Debentures
1,269,911
1,288,791
1,311,068
1,327,569
Long-term borrowing
2,214,013
2,123,744
985,117
971,844
Long-term non-trade payables
2,538,918
2,623,387
1,023,714
1,090,580
Others
7,778,350
(*1)
10,862,512
(*1)
Subtotal
39,327,520
39,361,479
(*1) Assets and liabilities whose carrying amount is a reasonable approximation of fair value are excluded from the fair
value disclosures.
(*2) Amounts measured at acquisition cost (June 30, 2014: KRW412,885 million, December 31, 2013: KRW388,225
million) is excluded as the range of reasonable fair value estimate is significant and the probabilities of the various
estimates cannot be reasonably assessed.
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The following table presents the assets and liabilities, by level, that are measured at fair value:
(Unit: KRW million)
June 30, 2014
Level 1
Level 2
Level 3
Total
(1) Assets
Derivatives
Available-for-sale financial assets(*)
5,418,767
46,608
2,588
49,196
4,586,312
3,138,792
13,143,871
(2) Liabilities
Derivatives
-
266,700
-
266,700
December 31, 2013
Level 1
Level 2
Level 3
Total
(1) Assets
Derivatives
Available-for-sale financial assets(*)
-
40,552
-
40,552
5,656,806
1,188,498
493,378
7,338,682
-
244,172
-
244,172
(2) Liabilities
Derivatives
(*) Amounts measured at acquisition cost (June 30, 2014: KRW412,885 million, December 31, 2013: KRW388,225
million) are excluded as the range of reasonable fair value estimate is significant and the probabilities of the various
estimates cannot be reasonably assessed.
The levels of the fair value hierarchy and its application to financial assets and liabilities are described below.
ㆍLevel 1: Quoted market prices (unadjusted) for identical assets or liabilities
ㆍLevel 2: Fair valuation based on inputs that are observable in the market
(Other than quoted prices included within level 1)
ㆍLevel 3: Fair valuation based on inputs that are unobservable in the market
The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of
financial position date. A market is regarded as active if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by
the Company is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 are listed
equity investments classified as trading securities or available-for-sale financial assets.
The fair value of financial instruments that are not traded on an active market (for example, over-the-counter derivatives)
is determined using valuation methods. These valuation methods maximize the use of observable market data where it is
available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in Level 2.
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If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
The Company performs the fair value measurements required for financial reporting purposes, including level 3 fair
values and discusses valuation processes and results at least once every quarter in line with the Company’s quarterly
reporting dates. The Company’s policy is to recognize transfers between levels at the end of the reporting period, if
corresponding events or changes in circumstances have occurred.
Specific valuation methods used to value financial instruments include:
ㆍQuoted market prices or dealer quotes for similar instruments.
ㆍThe fair value of foreign exchange forward contracts is determined using forward exchange rates at the statement
of financial position date, with the resulting value discounted back to present value.
Other methods, such as discounted cash flow analysis, are used to determine fair value for the remaining financial
instruments. For trade and other receivables, the book value approximates a reasonable estimate of fair value.
- Valuation methods and the inputs
ㆍThe Company utilizes a present value method to discount future cash flows at a proper interest rate for
corporate bonds, government and public bonds, and bank debentures that are classified as Level 2 in the fair
value hierarchy.
ㆍThe following table presents the valuation methods and the inputs used for major financial instruments classified
as Level 3.
(Unit: KRW million)
Fair value
Valuation methods
Level 3 inputs
Range (weighted average)
Terminal growth rate
-1.00%~1.00% (0%)
Weighted average cost of capital
6.37%~8.37% (7.37%)
Terminal growth rate
-1.00%~1.00% (0%)
Weighted average cost of capital
7.01%~9.01% (8.01%)
Terminal growth rate
-1.00%~1.00% (0%)
Weighted average cost of capital
6.06%~8.06% (7.06%)
Terminal growth rate
-1.00%~1.00% (0%)
Weighted average cost of capital
8.81%~10.81% (9.81%)
Terminal growth rate
-1.00%~1.00% (0%)
Weighted average cost of capital
7.69%~9.69% (8.69%)
Discount and Risk rates
5.57%~7.57% (6.57%)
Stock volatility
31.60%~37.60% (34.6%)
Discount and Risk rates
6.09%~11.7% (8.58%)
Stock volatility
11.90%~16.61% (13.88%)
Long-Term Available for Sales Financial Assets
Samsung Total
Petrochemicals
80,347
Discounted cash flow
Samsung General
Chemicals
80,653
Discounted cash flow
Taewon Electric
(Maltani)
17,072
Discounted cash flow
Pantech
53,053
Discounted cash flow
Samsung Venture
Investment
7,021
Discounted cash flow
Corning Incorporated
(convertible preferred stock)
2,673,583
Trinomial model
2,588
Binomial model
Derivative Instruments
Embedded derivatives
(convertible bonds, etc.)
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- Changes in Level 3 instruments:
(Unit: KRW million)
2014
2013
Balance as of January 1
493,378
389,195
2,473,965
106,964
(9,934)
(585)
Gains and losses recognized as gains and losses for
the current term
(10,652)
-
Gains and losses recognized in other comprehensive
income
240,041
(4,387)
Others
(45,418)
457
3,141,380
491,644
Purchases
Disposals, etc.
Balance as of June 30
- Sensitivity analysis for recurring fair value measurements categorized within Level 3
Sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair
value of financial instruments which are affected by the unobservable parameters, using a statistical technique.
When the fair value is affected by more than two input parameters, the amounts represent the most favorable or
most unfavorable.
The results of the sensitivity analysis for the effect on profit or loss from changes in inputs for each financial
instrument, which is categorized within Level 3 and subject to sensitivity analysis, are as follows:
(Unit: KRW million)
Favorable Changes
Profit( Loss)
Unfavorable Changes
Equity
Profit( Loss)
226,812
-
Equity
Available-for-sale financial assets (*1)
-
(214,063)
Embedded derivatives (convertible
bonds, etc.)(*2)
579
579
(494)
(494)
Total
579
227,391
(494)
(214,557)
(*1) For equity securities, changes in fair value are calculated by; 1) increasing or decreasing the correlation
between growth ratio (-1% ~ 1%) and discount rate, which are significant unobservable inputs; 2) increasing or
decreasing the correlation between volatility ration (31.60% ~ 37.60%) and discount rate observed in
convertible preferred stock.
(*2) For equity derivatives, changes in fair value are calculated by increasing or decreasing the correlation between
stock prices and volatility by 10%.
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8. Derivative Instruments and Put Options
The Company holds convertible bonds in several companies, including FTS, as well as bonds with warrants of Shinwha
Intertek Co., Ltd.
(A) The value of derivative instruments as of June 30, 2014 is presented below:
(Unit: KRW million)
Asset
Put options
9,766
Liabilities
Valuation Gain
-
-
Valuation Loss
10,652
※ The option values were calculated using appropriate valuation methodologies, including the Black-Scholes model
(B)
To manage foreign exchange risk, the Company’s subsidiaries hedge by trading forward currency contracts based
on foreign currency positions. Overseas subsidiaries buy or sell currency forwards with less than one year maturity
via a bank to avert risk.
The Company holds convertible preferred shares of Corning Incorporated and its value is as follows.
(Unit: KRW million)
Purchasing Price
Convertible preferred
Stocks
Fair Value
2,434,320
Valuation Gain
2,673,583
Valuation Loss
239,263
-
※ Fair value determined using Trinomial Tree model
(C)
Currency forwards as of June 30, 2014 are as follows.
(Unit: KRW million)
Asset
Currency forwards
Liabilities
46,510
Valuation Gain
266,662
Valuation Loss
43,653
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9. Major contracts
Account
Ericsson
Item
Contents
Contract type
Mutual patent-use contract
Contract date
2014.01.25
Purpose and contents
Secure operational advantage through mutual patent licensing
Contract type
Mutual patent-use contract
Contract date and period
2014.01.25 / indefinite term
Purpose and contents
Secure business freedom through mutual patent licensing
Others
Permanent license contract (including patent applications in the next 10 years)
Contract type
Mutual patent-use contract
Contract date
2014.01.23
Purpose and contents
Secure operational advantage through mutual patent licensing
Contract type
Process technology license contract
Contract date
2014.02.28
Purpose and contents
Expand customer base of 14nm process
Contract type
Patent-use contract
Contract date
2014.06.03
Purpose and contents
Secure business freedom through patent licensing
Google
Cisco
Global Foundries
Inc.
InterDigital
※ Information related to other IP disputes, including contract amount, was not included.
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10. Research and Development Activities
A. Summary of activities and R&D expenditures
The Company is leading the global market by continuously developing creative and innovative products and the future
technology through shifting its way of thinking and understanding customer demand.
The Company is currently developing creative and innovative products, and doing its utmost to cement its position in the
world IT industry and become a truly Leading Company that leads world’s industrial technology by securing nextgeneration and original technology.
[R&D expenses]
(Unit: KRW million)
1H 2014
Total R&D expenditure
Capitalization of
development expenses
(intangible asset)
Accounting
R&D costs expensed in
P&L
R&D expenses/sales Ratio
1H 2013
2013
2012
7,735,058
7,056,533
14,780,432
11,892,434
341,542
190,268
461,030
359,639
7,393,516
6,866,265
14,319,402
11,532,795
7.3%
6.4%
6.5%
5.9%
※ On a consolidated basis (in conformity with K-IFRS)
As of June 30, 2014, the Company’s R&D expenses were KRW 7,735 billion, a 9.6% increase from the same period last
year. The Company capitalized KRW 342 billion and recognized KRW 7,394 billion as the current expenditure.
B. R&D Organization and Operations
Domestic
The Company operates three R&D organizations; a business unit development team under each division that develops
market ready technologies with a 1-2 year outlook, a research institute under each business unit that develops mid to longterm technology with a 3-5 year outlook, and the Samsung Advanced Institute of Technology that develops core
technology as a future growth engine.
Samsung Advanced Institute of Technology is the central research institute of Samsung Electronics that has been
established to lead the future as a birthplace of cutting-edge technology. It has a creative R&D system and provides R&D
directions for promising growth sectors at the Company level, exploring future growth engines and strengthening
technological competitiveness of core businesses.
Overseas
The Company operates R&D organizations in the US (SRA-Silicon Valley, SRA-Dallas), the UK (SRUK), Russia (SRR),
Israel (SRIL,SIRC), India (SRI-Bangalore, SRI-Delhi), Japan (SRJ), China (SSCR, SRC-Beijing, SRC-Nanjing, SRCTianjin, SRC-Guangzhou) to carry out research activities for product development and basic technological research.
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※ As of June 30, 2014
※ Refer to 『G. Subsidiaries subject to consolidation』 in 『I. Corporate Overview』 for more details about overseas R&D organizations.
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C. R&D Results
Research project
Smart
TV monitor
Set-Top Box
for Virgin Media
Smart TV Service
Smart Input Device
Smart Station Monitor
All-in-one
Cloud Monitor
LFD
DEC
(LH40DECPLBA/ZA)
Research results and expected effect
In case applied to a product,
name of the product and
application
□ Smart Monitor (TB750, 24"/27)
- Support mobile device connectivity via MHL
- Support wireless transmission of picture via WiFi
- Can use smart hub and smart TV apps
- AllShare and Connect Share functions
- 7W x 2 Ch speaker
- Asymmetric slim design
□ Region: Americas/Europe/
domestic, etc.
□ Launch: Feb ‘12
□ Supply commercialized broadcasting set-top box for UK Virgin Media
- Develop cable TV set-top box (equipped with TiVo middle ware)
- HD broadcasting and mass recording functions (1T class)
※ Virgin Media: The largest media group in UK
□ Region: UK
□ Launch: Feb ‘12
□ Smart TV Service launch in ‘12
- Cloud-based contents sharing among family members
- Provide and manage contents for toddlers
- Customized exercise guide service
- Contents sharing between various devices
□ SDK3.1 Public Release (March)
- Smart Control input device and In-App advertisement
- Provide utility tool (Automatic Testing Tool)
□ Region: Global
□ Launch: Feb ‘12
□ Introduction of smart wireless keyboard
Easy to control device with QWERTY text input and Touch Pad
Bluetooth Pairing for controlling TV and Mobile devices
□ Region: Americas/Europe/
domestic, etc.
□ Launch: Feb ‘12
□ Applied products:
LED/PDP products in response to
BT
□ Smart Station Monitor (CB750, 24")
- Support connection to Wireless PC screen
- Mobile control function
- Support mobile device connectivity via MHL
- Can control 2 PCs (Drag & Drop file transfer, etc.)
- Support USB Hub and USB Super Charging
- 5W x 2 Channel speaker
□ Region: Americas/Europe/
domestic, etc.
□ Launch: May ‘12
□ Product Concept
- All-in-one Cloud Display Monitor(AMD Solution)
* Cloud Display Monitor: All-in-one LED monitor for creating server-based computing
environment, which is the next generation IT infra solution that can efficiently manage IT
resources and strengthen security
□ Purpose and effects
- Respond to EnergyStar5.0 and Erp(European energy standard)
- Apply platform/DDR3 and SSD/enable Fan less via 2 chip solution AMD Ontario
- Increase opportunity of sales expansion by adding 23.6" 16:9, 19" 5:4 Format Line-up
- ECO-Friendly → LED BLU /Energystar/TCO/Thin Design
- Secure sales channel in response to VMware/Citrix virtualization solution
□ Region: Global
□ Launch: Dec ‘12
□ Inch : 19"/23.6"
□ Product Concept
- Changed to new Echo-E chip dedicated to LFD from existing Genoa-P
- DP LoopOut & DP1.2 MST using ST Athena chip
- 24/7 operable Heavy Usage LED models
- High intensity (700nit) anti-Glare required for information delivery
□ Spec and effects
- Panel : New, Edge-LED, 700nit
- SMPS (PD-Board) : New
- 12 hours use per day (3 year warranty)
- Safety standard 60950-1(monitor), EMC class A
- Remote control: TM1240B
- Stand not provided (Option accessory)
- In response to competitors’ line-up
- Secure LFD product line-up
□ Region: Global
□ Launch: Oct ‘12
□ Inch : 40"/46"/55"
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In case applied to a product,
name of the product and
application
Research project
Research results and expected effect
Develop
high-resolution
large size TV panel
□ Differentiate Main Stream TV products and secure competitiveness
□ Region: Global
□ Launch: 1Q 13
High-resolution
low-power consumption
Tablet product technology
□ Achieve low power consumption of table products by enhancing transmittivity and enhance
production yield
□ Region: Global
□ Launch: 4Q 12
Mass produce 20nm
4GB DDR3
DRAM for computer
□ Mass produce 20nm 4GB DDR3 DRAM as the first in the world
- Developed as the first in the world for 4 consecutive generations since 50nm 4GB in '09
- Transmission speed of 1,833Mbps, which is the fastest for server
□ Maintain competitive advantage in the value-added DRAM market with cutting-edge
‘green memory’ from server to PC market
□ Region: Global
□ Launch: Feb ‘12
□ Name : 4GB DDR3 DRAM
□ Mass produce 20nm 4GB mobile DRAM as the first in the world
- Mass produce products from 1GB to 4GB, highest capacity in the industry
- Only provider of 4GB ultra-thin 0.8mm solution in the industry
□ In the future, expand 4GB market by increasing the proportion of 20nm DRAM
Maintain competitive advantage in the premium memory market
□ Region: Global
□ Launch: Apr ‘12
□ Name : 4GB LPDDR2
Mobile DRAM
□ Develop next generation 30nm 4GB DDR4 DRAM as the first in the world
- Launched 16GB DDR4 DRAM as the first after the launch of 2GB DDR4 DRAM in ‘11
- In the future, plan to develop products with fastest speed of 3.2Mb/s
□ Create differentiated market by mass producing 20nm products in '13 and maintain
competitive advantage with high-capacity green memory
□ Region: Global
□ Launch: Jun '12
□ Name : 4GB DDR4 DRAM
□ Mass produce next generation 30nm 4GB mobile DRAM as the first in the world
- Mass produce largest range of LPDDR3 products in the industry from 1GB to 2GB
- Only provider of 2GB ultra-slim 0.8mm solution in the industry
□ Maintain competitive advantage in the premium memory market by taking the lead in
high-capacity next generation LPDDR3 DRAM market in the future
□ Region: Global
□ Launch: Aug ‘12
□ Name : 4GB LPDDR3
Mobile DRAM
Mass produce 20nm
4GB LPDDR2
mobile DRAM for mobile
Develop 30nm
4GB DDR4
DRAM for computer
Mass produce 30nm
4GB LPDDR3 mobile
DRAM for mobile
□ Mass produce high-capacity 20nm 128GB eMMC as the first in the world
Mass produce 20nm
- Launched 128GB in Aug ’12 after mass production of 64GB in Jul '12
128GB eMMC
- Can store 15 8GB Full HD contents
internal storage for mobile □ Continue to expand next generation high-capacity mobile device market with 5 times faster
speed than external memory card Class10
Mass produce 2ynm
4GB DDR3
DRAM for computer
Mass produce
2ynm
512GB SSD
for computer
□ Region: Global
□ Launch: Aug ‘12
□ Name : 128GB eMMC
internal memory card
□ Mass produce cutting-edge 2ynm 4GB DDR3 DRAM as the first in the world
- Launched DRAM produced by new process for 4 consecutive years since '09
- Enhance product competitiveness with the best capacity low power consumption property
□ Continue to strengthen business competitive advantage by expanding sales in
differentiated market through mass production of 20nm products in '13
□ Region: Global
□ Launch: Oct ‘12
□ Name : 4GB DDR3 DRAM
□ Mass produce the best performance high-capacity 512GB SSD in the world
- Develop high-performance SSD with high-performance 3bit MLC as the first in the
industry
- Lead market expansion by mass producing high-end/mass market SSD simultaneously
□ Continue to strengthen business competitiveness in the premium memory market by
expanding premium ultra notebook market in '13
□ Region: Global
□ Launch: Oct ‘12
□ Name : 512GB SSD
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Research project
Research results and expected effect
□ Mass produce 64GB eMMC with next generation standard as the first in the world
Mass produce 10nm
- Launched next generation product after the launch of eMMC 4.5 product in Jul '12.7
64GB eMMC
- Equipped with best performance 10nm 64GB NAND since Oct '12
internal storage for mobile □ Take the lead in high performance mobile device market with subminiature package that
has 10 times faster speed than external memory card Class10
In case applied to a product,
name of the product and
application
□ Region: Global
□ Launch: Nov ‘12
□ Name : 64GB eMMC
internal memory card
Smart TV Service
□ Smart Hub service launch in ‘13
- Provides Smart Hub that enables easy and fast access to contents by category via
five panel UIs
 On TV: Recommends program based on viewing history by the hour
 Movies & TV Shows: Recommends popular/new VOD based on user’s viewing history
 Photos, Videos & Music: Provides list of recently played/recorded photos/music/videos
 Social: list of contents recommended by SNS friends/ video call
 Apps: Shows recommended/ downloaded apps
□ SDK 4.1 Public Release
- Reinforces platform and ecosystem by adding major S/W module platform of ‘13
- Supports Linux and Mac emulator and provides local Cloud Emulator functions
- Adds Smart Controller functions of ‘13
- Native IME (response to ’13 input device)
□ Region: Global
□ Launch: Feb '13
Smart Input Device
□ Introduction of 2013 smart wireless keyboard
Easy to control device with QWERTY text input and Touch Pad
Supports multi pairing between BT standard devices including TV/mobile (shortcut)
□ Introduction of 2013 external camera
Improves Skype resolution with 5M pixel camera
EPTZ(Electronic Pan Tilt Zoom), Face Tracking
One Hand Gesture Recognition
□ Region: Global
□ Launch: Mar '13
HDD Broadcasting
Multi-device
(BD-F8500)
□ Key features
Dual Tuner , CI , LAN, USB 2.0, HDMI, S-PDIF, Internal HDD, WiFi, Record 3D broadcasts
□ Development
Applied ‘13 UX & Apps, Applied Fox-B, New Micom (Nuvoton, 32bit), Movie & TV Show,
Screen Mirroring, Remote Access
□ Region: Europe
□ Launch: Mar ‘13
BD Player
(BD-F7500)
□ Key features
4K 3D Wifi BDP premium model
Internal 4K Scaler / 2HDMI (4K/Audio)
TV 7080 design matching
VFD Front Display
Smart Hub / Screen mirroring
2 x 2 Dual band Wifi module (minimized interference)
□ Development
Scaler Chip for 4K
HDMI exclusively for Audio (increase usability)
Strengthen Smart Hub functions (Movie & TV Show, Screen Mirroring, Remote Access)
Reinforce security with TrustZone
□ Region: Global
□ Launch: Mar ‘13
Smart
Interaction
□ Improved motion recognition
- Improve motion sensitivity, Thumbs Up recognition
□ Increased interactive voice response supported countries
- Countries added: Canada/Switzerland/Spain
 Countries supported: 9 (as of end-June)
 US, UK, Korea, France, Germany, Australia, Canada, Switzerland, Spain
□ Introduced built-in camera for OLED/UHD TV
Reflected new developments on circuit/apparatus for OLED Design
5M pixels, support motion/face recognition (same spec as LED F8000)
□ Region: Global
□ Launch: Jun ‘13
□ Applied products
- Motion recognition:
TV with built-in camera
- Interactive voice response:
Models of LED 6400 or higher
- Built-in camera:
OLED TV KN55S9CAF,
UHD TV 55/65 F9000
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Research project
Monitor
(SC770)
Open Cell Monitor
(SC590)
LFD ME95C
Mobile AP development
Research results and expected effect
In case applied to a product,
name of the product and
application
□ Added Touch Monitor Line up in ‘13
- Introduced Touch Monitor to create a new market
□ Reinforced user convenience
- Secured absolute advantage over competitors by providing differentiated usability&design
□ Optimum solution for using Touch
- Fast Touch and 10 Points multi Touch possible by applying capacitive sensing Touch,
Windows8 certification
- Ergonomic sliding stand structure
- Wide viewing range Panel and contrast range three times wider than plain monitor
□ Premium design
- Premium design with metallic materials
- Narrow Bezel design that maximizes immersive experience when using Touch
□ Region: America/Europe/etc.
□ Launch: Jun ‘13
□ Inch : 24"
□ Seek to introduce Open Cell to Display product line
- Introduced Open Cell model
□ Reinforced line ups
- Open Cell new line ups
- Cheaper model than existing SC57 model as responding to 27” Slim Design
□ Reinforced user convenience
- Narrow Bezel Design provides immersive experience aesthetic value
- Applied wide viewing range PLS Panel, reproduce vivid color in any angle
- Increased connection devices such as PC and imaging device by supporting HDMI
□ Region: Global
□ Launch: Aug ‘13
□ Inch : 27”
□ Product Concept
- Ultra large size 95" LED LFD(world’s largest Edge LED LFD)
- Slim Bezel & Depth Metallic Black Premium Design
- Symmetric Design for both vertical/horizontal use
- Valuable functions for Smart Meeting Room
□ Product specification
- Support PIM Half Embedded structure
- Support automatic Pivot, using sensor
- Terminal: D -sub,DVI,Component(AV),DP,HDMIx3,RS232C
□Region:
America/Europe/Domestic, etc.
□ Launch: Dec ‘13
□ Inch : 95”
□ Developed and mass produced big.LITTLE based octa-core Mobile AP as the first in the
industry
- Maximized benefits of low power consumption with big.LITTLE based octa-core
- GPU capacity twice the 'Exynos 4 Quad' products
- Support WQXGA – can be applied to smartphone and tablet
- Applied eMMC 5.0 and USB 3.0 interface as the first in the industry
- Continue to secure the Company’s AP technology leadership
□ Region : Global
□ Launch : Mar ‘13
□ Name : Exynos 5 Octa
□ Mass produced high capacity 10nm 128Gb NAND Flash
Mass produce
- Launched twice the capacity of 10nm 64Gb in Nov ‘12
10nm 128Gb NAND Flash - Equipped best capacity 20nm 64Gb NAND from May ‘12
for mobile
□ Strengthen product competitive edge and lead memory market growth
with 128Gb NAND-based memory card and expansion of SSD market
□ Region : Global
□ Launch : Mar ‘13
□ Name : 128Gb NAND Flash
□ Mass produced world best performance 1TB class Server storage
- High-efficiency solution for cloud service market
- Enhanced Server system capacity by six fold, reduced power consumption by 30%
□ Lead premium SSD market growth by developing next generation SSD
- Solidified competitive advantage with high value-added Server SSD
□ Region : Global
□ Launch : Mar ‘13
□ Name : 960GB Server SSD
Smart card IC
□ Acquired 'CC EAL7' with Smart card IC as the first in the industry
- Applied world-class design/manufacture/security technology
- Established standard modeling that can resist various types of hacking attacks
Issue certification via ANSSI, a French security agency
□ Promote the Company’s image as a leader of smart card IC technology and continue
to increase FSID market presence
□ Region : Global
□ Launch : Mar ‘13
□ Name : S3FT9KF
eFlash process
□ Developed 45nm eFlash process as the first in the industry
- Secured commercialization technology by developing smart card IC test chip
- Reduced power consumption 25%, data reading time 50%
- Plan to mass produce the first commercialized product in 2H14
- Applied to MCU product foundry/ASIC business
□ Promote the Company’s image as a leader of smart card IC technology and induce
foundry/ASIC customers
□ Region : Global
□ Launch: May ‘13
□ Name: 45nm eFlash
□ Mass produced 160lm/W middle power, which is the best in the industry
- Middle power achieved luminance efficiency of 160 lumen per watt
□ Region : Global
□ Launch: Feb ‘13
Mass produce
20nm 1TB Server SSD
for Server
160lm/W middle power
LED package
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Research project
Research results and expected effect
In case applied to a product,
name of the product and
application
- First to mass produce industry-best LED package
□ Name: LM561B
□ Promote the Company’s image as a leader of middle power technology and continue to secure
LED market presence
□ Mass produce new concept 128Gb 3D V-NAND Flash as the first in the world
- Overcome the limits of miniaturization by 3D CTF(Charge Trap Flash) cell structure
innovation and vertical layer process innovation
- Increased degree of integration by twofold/ cell life by tenfold/ writing speed by twofold
□ Secured Tera bit NAND mass production technology with 300 core patents
- Strengthen technological competitive advantage to take the lead in large capacity market
□ Region : Global
□ Launch: Aug ‘13
□ Name: 128Gb V-NAND Flash
□ Develop next generation 20nm 8Gb LPDDR4 DRAM as the first in the world
- Develop lowest power consumption/ highest speed mobile DRAM
- Create LPDDR4 market in ’14 after LPDDR3 in '12
□ Build 20nm 8Gb DRAM mobile/server full line up
- Create new market by launching 4GB in ‘14, the largest capacity in mobile '
□ Region : Global
□ Launch: Dec ‘13
□ Name : 8Gb LPDDR4
Mobile DRAM
□ Develop next generation image sensor pixel technology as the first in the industry
- Applied new method that isolates adjacent pixel
- Enhanced sensitivity by minimizing loss of electric signal
- Provide a sample of the first product with new technology
□ Strengthened the Company’s leadership in image sensor market
□ Region : Global
□ Launch : Nov ‘13
□ Name : S5K4H5YB
Develop
ultra large size/ high
resolution LCD TV panel
□ Mass produced 55”,65” UHD TV panel
□ Strengthen market leadership and contribute to commercialization of UHD TV
by expanding UHD TV line ups
□ Region : Global
□ Launch : Jun ‘13
Develop
OLED TV panel (55”)
□ Take the lead in the next generation TV market by launching curved OLED TV
□ Secure competitiveness by enabling Zero Pixel Defect definition
□ Region : Global
□ Launch : Jun ‘13
□ Create new OLED Application market based on design differentiation
□ Develop 1.63” high-resolution Compact Design
□ Region : Global
□ Launch : Sep ‘13
□ Secure advantages in terms of resolution compare to competitors and strengthen market
competitiveness by developing high-resolution technology
□ Mass produce smartphone OLED panel
□ Region : Global
□ Launch : Apr ‘13
□ Secure advanced technology to take the lead in the next generation products
□ Mass produce curved display for smartphone as the first in the world
□ Region : Global
□ Launch : Oct ‘13
□ Develop R/G/B technology UHD products as the first in the world
□ Reinforce market leadership and differentiate products by expanding UHD TV line ups
□ Region : Global
□ Launch : TBD
Mass produce
3D vertical
128Gb
V-NAND Flash
Mobile
20nm
8Gb LPDDR4 DRAM
Develop
ISOCELL
Pixel technology
Wearable Display
Watch
Develop high-resolution
OLED panel
Develop
Flexible technology
Develop UHD
OLED TV panel
High-resolution low power
consumption
Tablet product technology
□ Mass produce high-resolution Tablet panel
□ Region : Global
□ Achieved low power consumption of tablet products and higher rate of production by enhancing
□ Launch : Feb ‘14
transmissivity
Mass produce
Server
3D V-NAND based
960GB
high reliability SSD
□ Mass produced 3D V-NAND based high-reliability 960GB SSD as the first in the world
Equal performance with SLC NAND SSD by using 3D V-NAND
Increased customer value with high-reliability/high performance/high capacity/ low power
consumption
□ Maximized efficiency of investment in datacenter with ultra power saving solution
Secure competitiveness for expansion of next generation green IT market
□ Region : Global
□ Launch : Sep ‘13
□ Name: 960GB 3D V-NAND SSD
Mass produce 20nm
4GB
DDR3 DRAM
for server
□ Mass produce ultra-fine 20nm 4GB DDR3 DRAM as the first in the world
- Applied independently developed high-density/high-speed/low-power consumption
technology
- Enhanced productivity by 30% compare to 25nm
□ PC and server full line-up to be launched with 20nm 4GB DRAM
- Enhance competitiveness by launching the whole line-up including mobile in the future
□ Region : Global
□ Launch : Feb ‘14
□ Name : 4GB DDR3 DRAM
□ Launched new 1600 megapixel ISOCELL image sensor
- Clear image even in dark places
- 1600 megapixel / 30pfs per second (first in the industry)
- 16:9 aspect ratio FullHD resolution
□ Developed 1300 megapixel stacked ISOCELL image sensor
- Smaller chip size and wider circuit range by applying stacked structure
- Diversification of exposure with smart WDR function improves color in backlight
□ Region : Global
□ Launch : Mar ‘14
□ Name : S5K2P2
Develop
new ISOCELL
image sensor
Samsung Electronics 2014 Half Year Report
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Research project
Research results and expected effect
In case applied to a product,
name of the product and
application
□ Launched new Exynos 5 Octa (5422) product
- Enhance power efficiency by combining and utilizing 8 high-capacity/low-power
consumption cores through applying HMP solution
- Support WQHD and WQXGA ultra-high resolution
- Strengthen low-power consumption capacity by using automatic conversion to
power save mode and mobile video compression technology
□ Launched new Exynos 5 Hexa (5250) product
- Enhance power efficiency by combining and utilizing 6 high-capacity/low power
consumption cores through applying HMP solution
- Support WQXGA ultra-high resolution
□ Region : Global
□ Launch: Jan/Mar ‘14
□ Name : Exynos5250/
Exynos5422
□ Launched NFC with internal flash memory (e-flash)
- Used 45nm e-flash logic process as the only one in the industry, which improves density
and power efficiency compare to 90nm products
- Miniaturized products by supporting smallest antenna solution
- Enabled mobile POS through NFC chip as the first in the industry
※ POS (Point of Sales): point of sale information management system
□ Region : Global
□ Launch: Jan ‘14
□ Name : S3FWRN5
UHD TV
HU9000
□ Ultimate Curved UHD TV that provides perfect immersive experience
- Adopted ergonomic Curved LED Panel
□ Clear differentiation values compare to competitors
- Smart Hub function with Multi-Link Screen added
- The only Evolutionary UHD TV
□ Premium design
- Ergonomic Curved Design
- The best premium image through Immersive Viewing Experience
□ Region : Global
□ Launch: Mar ‘14
□ Inch : 55"/65"
UHD TV
HU9000
(105")
□ Wide Curved(21:9) 105" UHD TV
- Introduced ultra-large size 105" Curved UHD TV as the first in the world
- Adopted SDC 4200R 105" Wide Curved Panel
- Applied Golf-AP/MP Platform
- Provide ultimate immersive experience and realistic viewing experience
□ Region : Middle East
□ Launch : Jun ‘14
□ Inch : 105"
□ Mass produced 2nd generation 3D V-NAND based 1TB SSD as the first in the world
- Opened up ‘the era of popularized 3D memory’ with 2nd generation V-NAND
- Target PC market after creating server market last year
□ Launched high-reliability, high-capacity, low-power consumption V-NAND SSD line-up
- Increased life by twofold and reduced power consumption by 20% compare to
existing SSD
- Launch ‘V-NAND SSD’ in 53 nations around the world starting in July
□ Region : Global
□ Launch : May ‘14
□ Name : 1TB, V-NAND SSD
Develop new ISOCELL
Image sensor
□ Develop 1300 megapixel stacked ISOCELL image sensor
- Smaller chip size and wider circuit range by applying stacked structure
- Diversification of exposure with smart WDR function improves color in backlight
□ Region : Global
□ Launch : Jun ‘14
□ Name : S5K3M2
Develop new mobile AP
product
□ Launched new Exynos 5 Octa (5430) product
 Increased power efficiency by applying 20nm low-power consumption HKMG process
 Enhanced performance by applying HMP solution and can work individually depending
on low power core needs
 Enhanced low power consumption property by using automatic conversion to power
save mode and mobile video compression technology
 Support WQHD and WQXGA ultra high-resolution
□ Region : Global
□ Launch : Jun ‘14
□ Name : Exynos 5430
Develop new mobile AP
product
with HMP solution
Develop new smart card
product
Mass produce
2nd generation
V-NAND based
1TB SSD for PC
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11. Other Information for Investment Decision Making
A. Intellectual property right
In 2013, the Company applied for 7,643 domestic patents and 11,289 overseas patents, including approval for 4,676 US
patents, maintaining second place in terms of numbers of patents registered in US amongst global technology companies,
for eight consecutive years since 2006.
<Number of patents registered in each country (as of December 31, 2013, cumulative)>
(Unit: # of Patents)
Korea
Number
US
36,559
Europe
34,203
China
15,091
Japan
9,898
Others
7,143
7,871
The Company first registered US patents in 1984, and now holds 110,765 patents around the world. The Company holds a
significant number of registered US patents to efficiently respond to disputes in the U.S
<Number of patents registration per year>
(Unit: # of Patents)
‘13
‘12
‘11
‘10
‘09
‘08
‘07
Korea
2,762
2,013
1,610
1,612
1,485
4,740
10,974
US
4,676
5,081
4,894
4,551
3,611
3,515
2,725
These patents are mostly related to smartphone, flash memory, System LSI and DTV for the Company’s strategic business
products or for future use. These patents not only protect the Company’s business but also play the role of keeping similar
technology and patents, as well as competitors in check. In addition, as some of the patents are for new material, new
multimedia codec, and next-generation mobile communication, the Company expects them to protect its business in the
future when it enters into new businesses.
The Company has also been focusing on securing design patents to protect its original design applied to smartphone and
LED TV, acquiring 516 US patents in 2013.
B. Environmental regulations
The Company strictly abides by environmental regulations on products and workplace prescribed by law. In addition, to
following the low carbon green growth policy of the Korean government, the Company is increasing the number of
“Green Technology Green Projects Certifications,” and reports “the amount of CO2 emission and energy use” to the
government and transparently provides related information to stakeholders.
(Refer to 『9. Green Management』 of 『VIII. Other Information Related to Investment Protection』 for more details
about green technology certification.)
(Environmental regulation on products)
Electronics can directly and indirectly impact consumers’ health and safety as consumers carry them or install at home for
use. Thus environmental regulations on products are getting stricter. Accordingly, the Company is working to minimize
environmental impact throughout the whole life cycle of products from development stage of components and products to
manufacturing, distribution, use, and disposal. The Company offers “Eco partner Certification” to partner companies for
components without harmful substances, and runs an “Eco design evaluation” system to reflect eco-friendly elements on
Samsung Electronics 2014 Half Year Report
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products (reduced use of resources, energy, and harmful substances, and application of eco-friendly materials) at the
development stage, and operates a “waste electronics collection recycle system” in Europe, North America, Korea, and
India for collecting and recycling waste electronics. These activities are in line with domestic and foreign environmental
laws on electronics and are a differentiation factor of the Company and its products.
Examples of applicable laws impacting the Company in several companies include the following:
1. Law on collection · recycle of waste electronics (ex. EU WEEE Directive)
2. Limit on the use of harmful substances (ex. EU RoHS Directive, REACH Regulation)
3. Regulation on energy efficiency (ex. EU ErP Directive)
(Environmental regulations on workplace)
The Company operates environmental pollution prevention facilities for preventing air pollution, water pollution, and
disposal of waste to minimize discharge of pollutants, thereby minimizing impact on the surrounding environment.
Environmental management of workplace is supervised by relevant government authorities. All production facilities,
domestic and overseas, have acquired International Occupational Health and Safety Management System Certification
(ISO 14001, OHSAS18001) to strengthen compliance.
Major relevant laws at home and aboard are as follows;
1. Regulation related to emission of pollutants: Water Quality and Ecosystem Conservation Act, Clean Air
Conservation Act, Wastes Control Act, Noise and Vibration Control Act, Environmental Impact Assessment Act
2. Management of greenhouse gas emission: Greenhouse gas emission report, Goal management system
3. Others: Toxic Chemicals Control Act, Odor Control Law, Soil Environment Conservation Act
(Greenhouse gas emission and energy consumption management)
The Company is a “controlled entity” according to article 42 of the “Framework Act on Low Carbon, Green Growth.”
Thus, the Company has been reporting the amount of greenhouse gas emission and energy consumption, verified by a
third-party, to the authorities and disclosing it to stakeholders according to article 44 of the same Act since May 2011.
The reported amount of greenhouse gas emission and energy use is presented below:
2013
Greenhouse gas
(Unit: tCO2e)
Energy
(Unit: TJ)
2012
2011
6,303,033
6,004,674
9,955,301
96,298
91,330
125,370
※ 62 workplaces including domestic manufacturing facilities, company buildings, and company owned buildings.
※ DP business was excluded from the 2012 total due to the separation of Samsung Display.
※ Ozone Depletion Substance (ODS) excluded.
The Company achieved its own greenhouse emission and energy consumption limit goal for 2013 by converting facilities
to meet greenhouse gas reduction and energy-saving standards.
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III. Management Discussion and Analysis
Pursuant to the reporting guidelines set forth by the Financial Supervisory Service of South Korea, the Management
Discussion and Analysis section, reported in the annual Business Report, is not included in quarterly and half year reports.
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IV. Corporate Governance and Affiliates
1. Board of Directors
A. Overview of Board of Directors
As of June 30, 2014, the Board of Directors (BOD) consists of 9 directors, 4 of whom are executive directors (Oh-Hyun
Kwon, Boo-Keun Yoon, Jong-Kyun Shin, and Sang-Hoon Lee) and 5 independent directors (In-Ho Lee, Han-Joong Kim,
Kwang-Soo Song, Byeong-Gi Lee, and Eun-Mee Kim). The Board has 6 committees as follows: Management Committee,
Audit Committee, Independent Director Recommendation Committee, Related Party Transactions Committee,
Compensation Committee, and CSR Committee.
B. The BOD Resolutions considered and voting results
Independent directors
Date
Agenda
Results
In-Ho Lee
Jan 24,
2014
① Approval of FY2013 financial statements and
annual business report
② Approval of FY2014 business plan
③ Revision to management committee regulations
④ Participation in Samsung BioLogics equity rights offerings
⑤ Appointment of compliance officer
HanJoong
Kim
KwangSoo Song
ByeongGi
Lee
Eun-Mee
Kim
Approved
For
For
For
For
For
Approved
Approved
Approved
Approved
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
※ Reported Items
① Report on the internal accounting management system
② Assessment of the internal accounting management system
③ Report on the results of establishment of research committee for
environmental safety
Feb 18,
2014
① Decision to convene the 45th (FY2014) AGM
② Decision of the 45th AGM agenda items
- report items:
1) FY2013 annual audit report
2) FY2013 annual business report
- Item 1: Approval of FY2013 financial statements, including
balance sheet, income statement, and the statement
of appropriation of retained earnings, etc.
- Item 2: Approval of remuneration limit for Directors
③ Donation to Chung-nam Samsung Institute
Approved
Approved
Did not
attend
Approved
Did not
attend
For
For
For
※ Reported Item
① Report on the results of compliance review
Apr 29,
2014
①
②
③
④
Approval of 1Q FY14 financial statements and business report
Renewal of the existing Directors' liability insurance policy
Donation
Application for Venture Capital Union
① Disposal of technology assets
② Equity investments
③ A property Leasing contract with Samsung Display
Jun 03,
2014
Approved
Approved
Approved
Approved
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
Approved
Approved
Approved
For
For
For
For
For
For
For
For
For
For
For
For
For
For
For
※ Reported Items
① Research results and findings from the advancement of
corporate ecosystem research council
② Reported Progress of research results for the environmental
safety
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C. The Committees of BOD
(1) Composition of the BOD Committees as of June 30, 2014
Committee Name
Members
Member Name
Management
4 Executive
Directors
Oh-Hyun Kwon, Boo-Keun Yoon,
Jong-Kyun Shin, Sang-Hoon Lee
Related Party
Transactions
3 Independent
Directors
In-Ho Lee, Han-Joong Kim,
Kwang-Soo Song
Compensation
3 Independent
Directors
Kwang-Soo Song, In-Ho Lee, Byeong-Gi Lee
CSR
5 Independent
Directors
Byeong-Gi Lee, In-Ho Lee,Han-Joong Kim,
Kwang-Soo Song,Eun-Mee Kim
Responsibility and
Authority
See description below
i) The Management Committee
- Responsibility:
The Management Committee deliberates and decides on matters specified by the BOD regulations or
specifically delegated by the BOD. The composition and operation of the management committee are
determined by the BOD.
- Authority
The Management Committee deliberates and decides on the following matters:
(A) General management
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
Annual or mid to long-term management policy and strategy
Key management strategy
Business planning and restructuring
Establishment, relocation, and withdrawal of overseas branch and corporation
Initiating cooperation such as strategic partnership with foreign companies
Purchasing or disposal of domestic and overseas subsidiaries
Other major management matters
Establishment, relocation, and withdrawal branches and operations
Appointment or dismissal of supervisors
Production suspension, shutdown when reached over 5% of output compared to the recent business year
Technology licensing agreements and technology transfer, partnership of over 0.5% of total equity
Acquisitions and transfers of patents related to new material and new technology of over 0.5% of total equity
Collection and destruction of products corresponding to over 5% of sales in the recent business year
Approve a single contract for over 5% of sales compared to the recent business year
Approve or cancellation of single sales/purchase contract over 5% of sales compared to the recent business year
Set basic principles of organization management
Decision making on basic principles related to wages, bonus, and fringe benefits
Appointments, dismissals and changes of transfer agent
Closing of shareholder register and setting reference date
Establishing corporate guidelines for business and management related activities
Donations over KRW 50 billion per donation. Donation to related parties between KRW 1 billion and
KRW 5 billion
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(B) Matters related to Finance
1.
2.
3.
4.
5.
6.
7.
8.
Acquisitions or disposals of equity investments with a value between 0.1% and 2.5% of total equity
Direct overseas investments with a value of over 0.1% and/or less than 2.5% of total equity
New debt guarantee or collateral (excluding extension of period) issuance with a value of over 0.1% and/or less
than 2.5% of total equity
A. Collateral: Only in the case of providing collateral for others
B. Guarantee: Excludes performance guarantee (e.g., bid, contract, defect, difference guarantee) and tax
payment guarantee
New credit agreement contract (excluding extension of period) with a value of over 0.1% and/or less than 5% of
total equity
Approval of related party transactions:
Related party transactions with affiliates involving cash (loans and payments), equity (stocks and bonds) or
assets (such as real estate and intangible property rights) with a value between KRW 1 billion and KRW 5 billion,
as defined in the Monopoly Regulation and Fair Trade Act (excluding cases where existing contracts are renewed
without significant change).
Issuance of Corporate Bond
Acquisition and disposal of real estate with a value of over 0.1% of total equity, provided that the transaction is
with the third party
Any matters that the CEO deems necessary and important for the business (e.g., CAPEX)
(C) All other matters except for those delegated to the BOD and other committees in accordance with BOD regulations
ii) Related Party Transactions Committee
- Responsibility: Improve management transparency through establishment of a voluntary compliance system
- Authority
1) Right to receive reports on related party transactions:
The Committee can request reports on related party transactions with affiliates
※ According to the Monopoly Regulation and Fair Trade Act, the Related Party Transactions committee is
permitted to conduct preliminary reviews on related party transactions over KRW 5 billion and other
transactions that are deemed as significant.
2) Right to order ex officio investigation of related party transactions
3) Right to propose corrective measures for related party transactions
iii)
Compensation Committee
- Responsibility: Provide transparent and objective decision making process related to remuneration of directors
- Authority
1) Propose remuneration limit of executive directors at annual general shareholders’ meeting
2) Establish the executive director remuneration system
3) Other matters delegated by the Board
iv) CSR Committee
- Responsibility: Address social responsibilities of the Company and make contributions to public interest
- Authority
1) Make decisions on matters related to social contributions of the Company
2) Establish research groups under the committee, appoint researchers, and devise CSR management plan
3) Other matters delegated by the Board
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(2) The BOD Committee Activities
※ The Audit Committee and Independent Director Recommendation Committee were excluded according to Corporate
Disclosure Guidelines set forth by the Financial Supervisory Service Authority of South Korea.

The Management Committee
Name
Date
Jan 20, 2014
Feb 19, 2014
Management
Committee
Resolution
Voting Results
① Patent license agreement
② Patent license agreement
③ Establishment of production base in the Republic of South
Africa
④ Product donations to Chung-nam Samsung Institute
Approved
Approved
Approved
① Technology license agreement
② Liquidation of a subsidiary
Approved
Approved
Attendance/Voting
Results of
Independent Directors
Approved
N/A
Mar 19, 2014
① Ownership sales of Samsung Bluewings
Approved
May 14, 2014
① Increase the limit on trade finance
② Exercise of voting rights for merger with affiliates
③ Donation
Approved
Approved
Approved
Jun 3, 2014
① Patent license agreement
② Closing of shareholder register for interim dividend
Approved
Approved
(All comprised of
executive directors)
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
The Related Party Transactions Committee
Name of independent directors
Date
Agenda
Voting
Results
In-Ho Lee
(Attendance: 75%)
Han-Joong Kim
(Attendance: 100%)
Kwang-Soo Song
(Attendance:
100%)
For/against
-
-
-
-
-
-
Did not attend
-
-
-
-
-
-
-
-
-
-
-
- Preliminary review on large-scale related party
transactions
Jan 23,
2014
1) Participation in Samsung BioLogics capital
raising
N/A
- Report on 4Q13 related party transactions
Feb 18,
2014
- Preliminary review on large-scale related party
transactions
1) Donation to Chung-nam Samsung Institute
N/A
- Preliminary review on large-scale related party
transactions
1) Renewal of the existing directors’ liability
insurance policy
Apr 28,
2014
2) Donation
N/A
3) Application for Venture Capital Union
- Report on 1Q14 related party transactions
- Preliminary review on large-scale related party
transactions
Jun 3,
2014
1) Disposal of Technology assets
2) Ownership investment
N/A
3) Rental contract with Samsung Display
※ Agendas presented here are non-voting resolutions.
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
The Compensation Committee
Name of Independent Directors
Date
Kwang-Soo Song
(Attendance: 100%)
Voting
Results
Agenda
In-Ho Lee
(Attendance: 50%)
Byeong-Gi Lee
(Attendance: 100%)
For/Against
Feb 13, Appointment of the head of compensation
2014 committee
Approved
For
For
For
Feb 18, Preliminary review on remuneration limit
2014 for Directors
Approved
For
Did not attend
For

The CSR Committee
Name of Independent Directors
Date
Agenda
Voting
Results
Byeong-Gi Lee
(Attendance:
100%)
In-Ho Lee
(Attendance:
100%)
Han-Joong Kim
(Attendance:
100%)
Kwang-Soo
Song
(Attendance:
100%)
Eun-Mee
Kim
(Attendance:
50%)
For/Against
- Establishment of research
Jan 24,
2014
Approved
For
For
For
For
-
-
-
-
Did not attend
-
-
-
-
committee for the environmental
safety and appointment of
research members
- Report on research results of
May 30,
2014
For
research committee for the
advancement of corporate
ecosystem
N/A
- Report on research committee for
environmental safety
※ Agendas presented here are non-voting resolutions.
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D. Director Independence
(1) Appointment of Directors
Directors are appointed by shareholders at the annual general meeting of shareholders. The Board is responsible for
nominating candidates for Executive Directors, and the Independent Director Recommendation Committee nominates
independent director candidates, which are presented to shareholders as separate resolutions and voted on at the annual
general meeting.
The Board submits shareholders’ proposal for appointment of Directors at the annual general shareholder meeting as a
separate resolution if the proposal satisfies related laws and regulations.
The Board of Directors appointed by shareholders is as follows:
[As of June 30, 2014]
Position
Name
Nominated by
Responsibility
Executive
Director
Oh-Hyun Kwon
BOD
Chairman of BOD
Head of DS division
Executive
Director
Boo-Keun Yoon
BOD
Head of CE division
Executive
Director
Jong-Kyun Shin
BOD
Head of IM division
Executive
Director
Sang-Hoon Lee
BOD
CFO, Head of Corporate
Management Office
In-Ho Lee
Independent
Director
Recommendation
Committee
Overall management
of the Company
Han-Joong Kim
Independent
Director
Recommendation
Committee
Overall management
of the Company
Kwang-Soo Song
Independent
Director
Recommendation
Committee
Overall management
of the Company
Byeong-Gi Lee
Independent
Director
Recommendation
Committee
Overall management
of the Company
Eun-Mee Kim
Independent
Director
Recommendation
Committee
Overall management
of the Company
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Independent
Director
Transactions with
the Company
Relation with the
controlling
shareholder
N/A
N/A
※ Oh-Hyun Kwon, Boo-Keun Yoon, and Jong-Kyun Shin are appointed as the Represented Directors of the Company in accordance
with the Commercial Act of Korea.
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(2) Independent Director Recommendation Committee
The Independent Director Recommendation Committee assesses the independence and ability of potential candidates and
recommends selected candidates to be appointed at the annual general meeting of shareholders. The committee is
composed of three Independent Directors (Han-Joong Kim, Byeong-Gi Lee, Eun-Mee Kim) and one Executive Director
(Oh-Hyun Kwon) based on related laws that states more than a majority of members should be independent directors in
accordance with clause 4 of Article 542-8 of the Commercial Law.
(3) Professionalism of Independent Directors
There are designated support organizations in the Company that support independent directors to perform their duties
professionally in the BOD and the Board committees. The organizations provide reference materials on resolutions in
advance so Directors can thoroughly review them before the Board and committee meetings. If necessary, the
organizations provide separate information sessions on any resolution and frequently provide updates on other key
management issues. In addition, the organizations conduct internal education programs which allow for Independent
Directors to visit and conduct inspect domestic and overseas business sites and receive reports of the current state of
business operation.
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2. Audit System
A. Profile of the member of the Audit Committee
As of June 30, 2014, the Company operates an Audit Committee consisting of 3 Independent Directors.
Name
In-Ho Lee
Han-Joong Kim
Kwang-Soo Song
Career
Note
- Corporate Advisor, Shinhan Bank (2009-2011)
- Chief Executive Officer, Shinhan Financial Group (2005-2009)
- President & CEO, Shinhan Bank (1999-2003)
Independent director
- Professor Emeritus, Yonsei University (2012~Present)
- President, Yonsei University (2008-2012)
- Professor, Dept. of Preventive Medicine & Public Health (1982-2012)
Independent director
- Advisor, Kim & Chang Law Office (2007-Present)
- Prosecutor General, Supreme Prosecutors’ Office (2003-2005)
- Chief Prosecutor, Daegu High Prosecutors’ Office (2002-2003)
Independent director
B. Audit Committee Independence
Pursuant to related laws and the Articles of Incorporation, the Company has prepared internal audit regulations which
encompass composition, operation, authority and responsibility of the Audit Committees to carry out audit related
activities.
The Audit Committee is exclusively composed of Independent Directors appointed by the Board resolution and includes
audit and financial experts. Also, the Audit Committee satisfies requirements of relevant laws; for example, the stipulation
that the role of head of the committee be held by an Independent Director.
The Audit Committee reviews accounting documents including financial statements and results and audit process related
documents presented by the external auditor, and if needed, requests the external auditor to perform additional reviews on
accounting books and records. To ensure the reliability of accounting related disclosures, the audit committee receives and
reviews a report on internal accounting control systems prepared by internal accounting managers. In addition, the
Committee attends audit related BOD and other significant meetings. The Committee receives reports on deliberations of
the Management Committee and on business performance, from Directors, and requests additional reviews and
supplementation of data as needed.
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C. Major Activities of the Audit Committee
See the table below for major activities of the Audit Committee by reporting date.
Name of independent directors
Name
Date
Agenda
Voting
Results
In-Ho Lee
(Attendance: 67%)
Han-Joong Kim
(Attendance: 100%)
Kwang-Soo Song
(Attendance: 100%)
For/Against
Audit
Committee
Jan 23,
2014
- 2013 financial and business reports
- Report on 2013 internal accounting management
system activities
- Report on 4Q13 non-audit activities
- Report on appointment plan of external auditor
- Report on 2013 audit activities
Feb 18,
2014
- Review and approval of appointment of external auditor
- Review of the 2013 AGM agenda
- Assessment of 2013 activities of internal compliance
system
Apr 28,
2014
- Report on the 1Q2014 financial statements and
business report
- Report on 1Q14 non-audit activities
Approved
-
Did not Attend
-
For
-
For
-
-
-
3. Voting rights of shareholders
A. Voting method
The Company has not adopted the concentrated voting system, voting in writing, or electronic voting system.
B. Minority Shareholder Right
No minority shareholder right was exercised during the period.
C. Competition over management right
No competition over management rights arose during the period.
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4. Affiliates & Subsidiaries
A. Affiliates
- Name of affiliated group: Samsung Group
As at June 30, 2014, Samsung Group had a total of 73 domestic affiliates. Compared to December 31, 2013, three new
affiliate (Samsung Welstory, Samsung Card Customer Service, and Seoul Lakeside CC) were added and five (Samsung
Corning Precision Materials, Samsung SNS, Global Tech, 365Homecare, and Samsung Petrochemical) were excluded.
Among Samsung Group’s 73 affiliates, 17 including Samsung Electronics are listed, and 56 are unlisted.
[As of June 30, 2014]
No. of
affiliates
Name of affiliates
17
Samsung C&T, Cheil Industries, Samsung Electronics, Samsung SDI, Samsung Techwin, SEMCO, Samsung Heavy
Industries, Samsung Card, Samsung Life Insurance, Hotel Shilla, Samsung Fire & Marine Insurance, Samsung Securities,
Samsung Fine Chemicals, Samsung Engineering, S1, Cheil Worldwide, CREDU
Unlisted
56
Samsung Everland, Samsung SDS, Samsung General Chemicals, Samsung Total Petrochemicals, Samsung Lions, SERI,
STECO, Samsung Thales, SEMES, Samsung Electronics Sales, Samsung Electronics Service, Samsung Electronics
Logitech, Hantok Chemicals, CVnet Corporation, Care Camp, Allat., SECUI, Gacchinet, Open Tide Korea, Samsung
Futures, Samsung Venture Investment Corporation, Samsung Asset Management, Saengbo, SD Flex, World Cyber
Games, Samsung Claim Adjustment Service, Samsung Fire & Marine Insurance Service, S-Core, Suwon Samsung
Bluewings FC, Human TSS, RAY, Songdo Land Mark City, S-1CRM, OpenHands, S-EnPol, Samsung Medison, Samsung
Biologics, SMP, STM, Nuri Solution, Colombo Korea, Samsung Life Service, Miracom, SU Materials, Natural9, Samsung
Display, Samsung Bioepis, Samsung Corning Advanced Glass , Daejung Offshore Wind Power Co., Ltd., SAMSUNG SRA
Asset Management, Jeongahm Wind Power, SKKU dormitory, Samsung SGL Carbon Composite Materials, Samsung
Welstory, Samsung Card Customer Service, Seoul Lakeside CC
Total
73
Listed
※ “World Cyber Games” ceased to be an affiliate in July 2014.
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B. Share Ratio of Affiliates and Subsidiaries
1) Domestic
Invested
Investing
Samsung
C&T Corp
Samsung
C&T
Corporation
Cheil
Industries Inc.
Samsung
Electronics
Samsung SDI
Cheil
Industries
Inc.
Samsung
Electronics
Samsung
SDI
Samsung
ElectroMechanics
Samsung
Heavy
Industries
4.1
8.6
25.2
23.7
Samsung
Techwin
Hotel Shilla
Samsung
Engineering
4.3
7.8
0.4
0.1
13.1
17.6
25.5
7.4
5.1
Cheil
Worldwide
12.6
2.6
5.6
Samsung
SDS
17.1
8.4
11.5
2.4
22.6
11.0
0.3
7.9
0.1
0.1
0.1
Hotel Shilla
S1
Corporation
SERI
Samsung
SDS
Samsung Life
Insurance
Samsung Fire
& Marine
Insurance
Samsung
Securities.
Samsung
Card
SDC
S1
Corpo
ration
3.2
0.1
Samsung
Electromechanics
Samsung
Everland
Samsung
Heavy
Industries
Samsung
Techwin
Cheil
Worldwide
Samsung Fine
Chemicals
Samsung
General
Chemicals
Samsung
Fine
Chemicals
2.2
0.6
0.1
7.6
0.3
4.8
0.0
1.3
0.0
0.0
3.5
0.6
7.6
0.0
0.0
0.0
0.0
1.1
2.0
3.1
5.5
0.0
0.0
1.0
1.3
1.3
3.0
1.9
Samsung
BioLogics
SVIC #6
SKK Univ
Total
12.8
8.7
12.9
25.5
23.7
24.2
32.4
17.2
22.0
18.3
31.1
20.7
47.5
※ (% Ownership, As of June 30, 2014, Based on Common shares)
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Invested
Investing
Samsung C&T
Corporation
Cheil Industries
Inc.,
Samsung
Electronics
Samsung SDI
Samsung
Electromechanics
Samsung
Everland
Samsung
Heavy
Industries
Samsung
Techwin
Cheil Worldwide
Samsung Fine
Chemicals
Samsung
General
Chemicals
Hotel Shilla .
S1 Corporation
SERI
Samsung SDS
Samsung Life
Insurance
Samsung Fire &
Marine
Insurance.
Samsung
Securities
Samsung Card
SDC
Samsung
BioLogics
SVIC #6
SKK Univ
Total
Samsung
Everland
Samsung
General
Chemicals.
Samsung
Total
Petrochemi
cals
Hantok
Chemicals
Samsung
Lions
SERI
1.5
37.3
7.5
1.0
4.0
3.9
15.0
1.0
5.3
27.5
29.8
4.0
9.2
4.0
9.0
STECO
51.0
SEMES
91.5
Samsung
Electronics
Service
Samsung
Electronics
Sales
99.3
100.0
Suwon
Samsung
Bluewings
FC
Samsung
Electronics
Logitech
100.0
28.6
12.5
Samsung
Display
84.8
15.2
23.8
2.0
1.0
22.7
0.3
3.0
3.1
100.0
50.0
50.0
14.8
5.0
18.5
90.8
50.0
50.0
67.5
100.0
51.0
91.5
99.3
100.0
100.0
100.0
100.0
※ (% Ownership, As of June 30, 2014, Based on Common shares)
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Invested
Investing
Ray
Samsung
Medison
Samsung C&T
Corporation
Samsung
BioLogics
Samsung
BioEpis
Samsung
Corning
Advanced
Glass
SU
Materials
Samsung
Thales
7.3
CVnet
40.1
Care Camp
52.8
Songdo
Landmark
City
41.4
Seoul
Lakeside
CC
SD Flex
Colombo
Korea
80.0
Cheil Industries
Inc.,
50.0
Samsung
Electronics
68.5
44.5
Samsung SDI
Samsung Electromechanics
Samsung
Everland
44.5
20.0
100.0
Samsung Heavy
Industries
Samsung Techwin
50.0
Cheil Worldwide
Samsung Fine
Chemicals
Samsung General
Chemicals
Hotel Shilla
S1 Corporation
SERI
Samsung SDS
9.4
Samsung Life
Insurance
Samsung Fire &
Marine Insurance.
Samsung
Securities
Samsung Card
SDC
Samsung
BioLogics
SVIC #6
50.0
50.0
50.0
50.0
88.2
64.6
SKK Univ
Total
64.6
68.5
96.3
88.2
50.0
49.5
52.8
41.4
100.0
50.0
100.0
※ (% Ownership, As of June 30, 2014, Based on Common shares)
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Invested
Investing
Natural9
Samsung
Welstory
Daejung
Offshore
Wind
Power
Jeongahm
Wind
Power
SECUI
Human
TSS
S-1CRM
S-EnPol
SMP
STM
CREDU
Gaccinet
Open Tide
Korea
Samsung C&T
Corporation
Cheil Industries Inc.,
Samsung Electronics
Samsung SDI
13.8
Samsung Electromechanics
Samsung Everland
51.0
100.0
Samsung Heavy
8.7
50.1
Industries
21.0
50.0
Samsung Techwin
Cheil Worldwide
9.8
Samsung Fine
100.0
Chemicals
16.1
58.0
Samsung General
Chemicals
Hotel Shilla
S1 Corporation
52.2
100.0
93.4
1.1
SERI
Samsung SDS
4.3
Samsung Life
15.2
5.2
47.2
10.5
70.2
0.0
Insurance
Samsung Fire &
Marine Insurance.
Samsung Securities
1.6
Samsung Card
3.3
SDC
Samsung BioLogics
SVIC #6
SKK Univ
Total
51.0
100.0
50.1
50.0
65.2
100.0
93.4
100.0
16.1
71.8
62.4
41.5
81.1
※ (% Ownership, As of June 30, 2014, Based on Common shares)
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Invested
Investing
S-Core
OpenHands
Miracom
Nuri Solution
Samsung
SGL Carbon
Composite
Materials
SKKU
dormitory
Samsung
Life
Insurance
Saengbo
Samsung
Life Service
Samsung
SRA Asset
Management
99.8
100.0
Samsung
Fire &
Marine
Insurance
Samsung
Claim
Adjustment
Service
Samsung C&T
Corporation
Cheil Industries
Inc.,
Samsung
Electronics
Samsung SDI
Samsung
Electromechanics
Samsung
Everland
19.3
Samsung Heavy
Industries
Samsung
Techwin
Cheil Worldwide
Samsung Fine
Chemicals
Samsung
General
Chemicals
50.0
Hotel Shilla
S1 Corporation
SERI
Samsung SDS
94.8
100.0
100.0
100.0
Samsung Life
Insurance
50.0
15.0
Samsung Fire &
Marine
Insurance.
99.9
Samsung
Securities
Samsung Card
SDC
Samsung
BioLogics
SVIC #6
SKK Univ
Total
100.0
94.8
100.0
100.0
100.0
50.0
100.0
19.3
50.0
99.8
100.0
15.0
99.9
※ (% Ownership, As of June 30, 2014, Based on Common shares)
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Invested
Investing
Samsung Fire &
Marine Insurance
Service
Samsung C&T
Corporation
Samsung Securities
Samsung Card
Samsungcard
Customer Service
Allat
Samsung Asset
Management
Samsung Futures
Samsung Venture
Investment
0.3
Cheil Industries
Inc.,
Samsung
Electronics
37.5
16.3
Samsung SDI
16.3
Samsung Electromechanics
17.0
Samsung Everland
30.0
Samsung Heavy
Industries
3.9
17.0
Samsung Techwin
16.7
Cheil Worldwide
Samsung Fine
Chemicals
Samsung General
Chemicals
Hotel Shilla
S1 Corporation
SERI
Samsung SDS
Samsung Life
Insurance
Samsung Fire &
Marine Insurance.
11.1
100.0
34.4
5.5
8.0
1.2
Samsung
Securities
Samsung Card
30.0
100.0
60.0
100.0
65.3
99.5
16.7
75.8
99.5
100.0
SDC
Samsung BioLogics
SVIC #6
SKK Univ
Total
100.0
19.4
71.9
※ (% Ownership, As of June 30, 2014, Based on Common shares)
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2) Overseas
Investing Company
Invested Company
Ownership
Samsung C&T Corporation
Myodo Metal .Co., Ltd.
100.0
Samsung C&T Corporation
Samsung C&T Japan Corporation
100.0
Samsung C&T Corporation
Samsung C&T America Inc.
100.0
Samsung C&T Corporation
Samsung Finance Corporation.
Samsung C&T Corporation
Samsung E&C America, INC.
100.0
Samsung C&T Corporation
Samsung Oil & Gas USA Corp
90.0
Samsung C&T Corporation
Samsung Renewable Energy Inc.
100.0
Samsung C&T Corporation
SCNT Power Norte S. De R.L. de C.V.
100.0
Samsung C&T Corporation
QSSC, S.A. de C.V.
Samsung C&T Corporation
Samsung C&T Oil & Gas Parallel
Samsung C&T Corporation
Samsung C&T Automation Inc.
Samsung C&T Corporation
Samsung C&T Canada Ltd.
100.0
Samsung C&T Corporation
Samsung C&T Deutchland GmbH
100.0
Samsung C&T Corporation
Samsung C&T U.K. Ltd.
100.0
Samsung C&T Corporation
Xiod Distribution
Samsung C&T Corporation
Samsung C&T France S.A.S
100.0
Samsung C&T Corporation
Samsung C&T ECUK Limited
100.0
Samsung C&T Corporation
Whessoe Project Limited.
100.0
Samsung C&T Corporation
SCNT Investment Atlantic SPRL
100.0
Samsung C&T Corporation
POSS-SLPC, s.r.o
50.0
Samsung C&T Corporation
Solluce Romania 1 B.V.
80.0
Samsung C&T Corporation
SAM investment Manzanilo.B.V
53.3
Samsung C&T Corporation
Solluce Slovenia 1 B.V.
Samsung C&T Corporation
Ecosolar OOD
100.0
Samsung C&T Corporation
Ecoenergy Solar OOD
100.0
Samsung C&T Corporation
Agirlplam EOOD
100.0
Samsung C&T Corporation
Fishtrade EOOD
100.0
Samsung C&T Corporation
Manageprojekt EOOD
100.0
Samsung C&T Corporation
Solar Park EOOD
100.0
Samsung C&T Corporation
Veselinovo Energy OOD
100.0
Samsung C&T Corporation
Samsung C&T Construction Hunga
100.0
Samsung C&T Corporation
Samsung C&T (KL) Sdn.,Bhd.
100.0
Samsung C&T Corporation
Samsung C&T Malaysia SDN. BHD
100.0
Samsung C&T Corporation
Erdsam Co., Ltd.
100.0
Samsung C&T Corporation
Samsung Chemtech
51.7
Samsung C&T Corporation
S-print Inc
40.0
Samsung C&T Corporation
Cassava Investment Korea Pte. Ltd.
29.7
Samsung C&T Corporation
P.T. Samsung Development
Samsung C&T Corporation
Samsung Development (Thailand) Co., Ltd.
33.0
Samsung C&T Corporation
Samsung C&T Thailand Co., Ltd
44.0
Samsung C&T Corporation
Cheil Holding Inc.
40.0
Samsung C&T Corporation
Samsung Const. Co. Phils.,Inc.
25.0
Samsung C&T Corporation
Samsung Design Philippines Inc
100.0
Samsung C&T Corporation
Samsung Oil & Gas(Timor Sea 06-102) Ltd.
100.0
Samsung C&T Corporation
Samsung Oil & Gas Australia Pty. Ltd
100.0
Samsung C&T Corporation
PT. Insam Batubara Energy
80.0
60.0
100.0
70.0
25.0
80.0
100.0
90.0
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Investing Company
Invested Company
Ownership
Samsung C&T Corporation
Samsung C&T India Pte., Ltd.
100.0
Samsung C&T Corporation
Samsung C&T Corporation India
100.0
Samsung C&T Corporation
Malaysia Samsung Steel Center Sdn.Bhd
Samsung C&T Corporation
Samsung C&T Singapore Pte., Ltd.
Samsung C&T Corporation
S&G Biofuel PTE.LTD
50.5
Samsung C&T Corporation
Samsung C&T Mongolia LLC.
70.0
Samsung C&T Corporation
Samsung C&T Eng.&Const. Mogolia
100.0
Samsung C&T Corporation
Samsung C&T Hongkong Ltd.
100.0
Samsung C&T Corporation
Guangdong Xingpu Steel Center Co.,Ltd
Samsung C&T Corporation
Samsung C&T Taiwan Co., Ltd.
Samsung C&T Corporation
Samsung Precision Stainless Steel(pinghu) Co.,Ltd.
Samsung C&T Corporation
Samsung C&T (Shanghai) Co.,Ltd.
Samsung C&T Corporation
Posco-Samsung Suzhou Processing Center Co., Ltd
50.0
Samsung C&T Corporation
Samsung Nigeria Co., Ltd.
99.9
Samsung C&T Corporation
LOBINAVE - Estaleiro Naval do Lobito, Limitada
40.0
Samsung C&T Corporation
Samsung C&T Corporation Saudi Arabia
100.0
Samsung C&T Corporation
Samsung C&T Chile Copper SpA
100.0
Samsung C&T Corporation
Samsung C&T do BRASIL CONSTRUCTORA LTDA.
100.0
Samsung C&T Corporation
Samsung C&T Corporation Rus LLC
100.0
Samsung C&T Corporation
KSI LLP
25.0
Samsung C&T Corporation
JSC Balkhash Thermal Power PLA
75.0
Samsung C&T Corporation
Samsung SDI America, Inc.
8.3
Samsung C&T Corporation
Samsung SDI (Malaysia) SDN. BHD.
6.4
Samsung C&T Corporation
Samsung SDI (Hong Kong) Ltd.
2.4
Samsung C&T Corporation
Samsung SDI Brasil Ltda.
0.0
Samsung C&T Corporation
Beijing Samsung Real Estate Co., Ltd
Samsung C&T America Inc.
Meadowland Distribution
Samsung C&T America Inc.
Samsung Oil & Gas USA Corp
10.0
Samsung C&T America Inc.
Samsung Green repower, LLC
100.0
Samsung C&T America Inc.
Samsung Solar Construction Inc.
100.0
Samsung C&T America Inc.
QSSC, S.A. de C.V.
20.0
Samsung C&T America Inc.
Samsung C&T Automation Inc.
30.0
Samsung C&T America Inc.
S-print Inc
Samsung E&C America, INC
Samsung E&C RADIUS, INC.
Samsung Renewable Energy Inc.
SP Armow Wind Ontario LP Inc
Samsung Renewable Energy Inc.
SRE GRW EPC GP Inc.
100.0
Samsung Renewable Energy Inc.
SRE GRW EPC LP
100.0
Samsung Renewable Energy Inc.
SRE SKW EPC GP Inc.
100.0
Samsung Renewable Energy Inc.
SRE SKW EPC LP
100.0
Samsung Renewable Energy Inc.
SRE GRW LP Holdings LP
100.0
Samsung Renewable Energy Inc.
SRE SKW LP Holdings LP
100.0
Samsung Renewable Energy Inc.
SRE WIND PA GP INC.
100.0
Samsung Renewable Energy Inc.
SRE WIND PA LP
100.0
Samsung Renewable Energy Inc.
SRE GRS Holdings GP Inc.
100.0
Samsung Renewable Energy Inc.
SRE GRS Holdings LP
100.0
Samsung Renewable Energy Inc.
SRE K2 EPC GP Inc.
100.0
Samsung Renewable Energy Inc.
SRE K2 EPC LP
100.0
70.0
100.0
51.6
100.0
55.0
100.0
10.0
100.0
24.0
100.0
50.0
Samsung Electronics 2014 Half Year Report
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Investing Company
Invested Company
Ownership
Samsung Renewable Energy Inc.
SRE K2 LP Holdings LP
100.0
Samsung Renewable Energy Inc.
SRE KS Holdings GP Inc.
100.0
Samsung Renewable Energy Inc.
SRE KS Holdings LP
100.0
Samsung Renewable Energy Inc.
Southgate Solar GP INC.
100.0
Samsung Renewable Energy Inc.
Southgate Solar LP
100.0
Samsung Renewable Energy Inc.
Windsor Solar GP INC.
100.0
Samsung Renewable Energy Inc.
Windsor Solar LP
100.0
Samsung Renewable Energy Inc.
SRE Belle River LP Holdings LP
100.0
Samsung Renewable Energy Inc.
SRE Wind GP Holding Inc.
100.0
Samsung Renewable Energy Inc.
SP Ontario Wind Development LP
50.0
Samsung Renewable Energy Inc.
SP Southgate Wind LP
50.0
Samsung Green repower, LLC
Solar Projects Solutions,LLC
66.0
Kingston Solar GP Inc.
Kingston Solar LP Inc.
0.0
K2 Wind Ontario Inc.
K2 Wind Ontario LP Inc
0.0
SP Armow Wind Ontario GP Inc
SP Armow Wind Ontario LP Inc
0.0
Samsung C&T Oil & Gas Parallel
PLL Holdings LLC
83.6
Samsung C&T Oil & Gas Parallel
PLL E&P LLC
90.0
SRE GRW EPC GP Inc.
SRE GRW EPC LP
0.0
SRE SKW EPC GP Inc.
SRE SKW EPC LP
0.0
PLL Holdings LLC
Parallel Petroleum LLC
61.0
SRE GRW LP Holdings LP
Grand Renewable Wind LP Inc.
44.5
SRE SKW LP Holdings LP
South Kent Wind LP Inc.
50.0
SRE WIND PA GP INC.
SRE WIND PA LP
SRE GRS Holdings GP Inc.
Grand Renewable Solar GP Inc.
SRE GRS Holdings GP Inc.
SRE GRS Holdings LP
SRE K2 EPC GP Inc.
SRE K2 EPC LP
SRE K2 LP HOLDINGS LP
K2 Wind Ontario LP
33.3
SRE KS HOLDINGS GP INC.
Kingston Solar GP Inc.
50.0
SRE KS HOLDINGS GP INC.
SRE KS Holdings LP
0.0
SRE KS HOLDINGS LP
Kingston Solar LP Inc.
50.0
SOUTHGATE SOLAR GP INC.
Southgate Solar LP
0.0
WINDSOR SOLAR GP INC.
Windsor Solar LP
0.0
SRE Belle River LP Holdings LP
SP Belle River Wind LP
50.0
SP Belle River Wind GP Inc
SP Belle River Wind LP
0.0
SRE Wind GP Holding Inc.
K2 Wind Ontario Inc.
50.0
SRE Wind GP Holding Inc.
SP Armow Wind Ontario GP Inc
50.0
SRE Wind GP Holding Inc.
SP Southgate Wind GP
50.0
SRE Wind GP Holding Inc.
SRE GRW LP Holdings LP
0.0
SRE Wind GP Holding Inc.
SRE SKW LP Holdings LP
0.0
SRE Wind GP Holding Inc.
SRE K2 LP Holdings LP
0.0
SRE Wind GP Holding Inc.
SRE Belle River LP Holdings LP
0.0
SRE Wind GP Holding Inc.
SP Belle River Wind GP Inc
50.0
SRE Wind GP Holding Inc.
SP Ontario Wind Development GP
50.0
SRE Wind GP Holding Inc.
South Kent Wind GP Inc.
50.0
SRE Wind GP Holding Inc.
Grand Renewable Wind GP Inc.
50.0
SP Ontario Wind Development GP
SP Ontario Wind Development LP
0.0
South Kent Wind GP Inc.
South Kent Wind LP Inc.
0.0
0.0
50.0
0.0
0.0
Samsung Electronics 2014 Half Year Report
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Investing Company
Invested Company
Ownership
Grand Renewable Wind GP Inc.
Grand Renewable Wind LP Inc.
Samsung C&T Deutchland GmbH
Samsung C&T Italia S.A.R.L
0.0
Samsung C&T Deutchland GmbH
SCNT Investment Atlantic SPRL
Samsung C&T Deutchland GmbH
POSS-SLPC, s.r.o
20.0
Samsung C&T Deutchland GmbH
Solluce Romania 1 B.V.
20.0
Samsung C&T Deutchland GmbH
Solluce Slovenia 1 B.V.
20.0
Samsung C&T Deutchland GmbH
S.C. Otelinox S.A
94.3
Samsung C&T Deutchland GmbH
KSI LLP
25.0
Samsung C&T U.K. Ltd.
Xiod Distribution
75.0
Samsung C&T U.K. Ltd.
Samsung Nigeria Co., Ltd.
Samsung C&T France S.A.S
Comptoir Des Produits Inoxydables S.A.S.
12.5
Solluce Romania 1 B.V.
LJG Green Source Energy Alpha
78.0
SAM investment Manzanilo.B.V
Terminal KMS de GNL S. de R.L de C.V
37.5
Solluce Slovenia 1 B.V.
ZE Solar 1 D.O.O.
70.0
Samsung C&T (KL) Sdn.,Bhd.
SS KUKDONG JASATERA J/V
70.0
Cassava Investment Korea Pte.
PT. Cahaya Borneo Sukses Agros
49.0
Cassava Investment Korea Pte.
PT. Cassava Borneo Sukses Plan
49.0
Samsung C&T Thailand Co., Ltd.
Samsung Development (Thailand) Co., Ltd.
67.0
Cheil Holding Inc.
Samsung Const. Co. Phils.,Inc.
75.0
Samsung C&T Singapore Pte. Ltd.
Samsung Chemtech
48.3
Samsung C&T Singapore Pte. Ltd.
S-print Inc
16.0
Samsung C&T Singapore Pte. Ltd.
Cassava Investment Korea Pte. Ltd.
12.7
Samsung C&T Singapore Pte. Ltd.
PT. Insam Batubara Energy
10.0
Samsung C&T Singapore Pte. Ltd.
Malaysia Samsung Steel Center Sdn.Bhd
30.0
Samsung C&T Singapore Pte. Ltd.
S&G Biofuel PTE.LTD
12.6
S&G Biofuel PTE.LTD
PT. Gandaerah Hendana
95.0
S&G Biofuel PTE.LTD
PT. Inecda
95.0
SAMSUNG C&T HONGKONG Ltd.
Samsung C&T Thailand Co., Ltd
13.2
SAMSUNG C&T HONGKONG Ltd.
Samsung (Tianjin) International Trading Co., Ltd
100.0
SAMSUNG C&T HONGKONG Ltd.
Samsung Trading (Shanghai)Co., Ltd
100.0
SAMSUNG C&T HONGKONG Ltd.
Karson Industrial Co., Ltd.
100.0
SAMSUNG C&T HONGKONG Ltd.
Samsung Trading (Shenzhen) Co., Ltd
100.0
SAMSUNG C&T HONGKONG Ltd.
Samsung Precision Stainless Steel(pinghu) Co.,Ltd.
SAMSUNG C&T HONGKONG Ltd.
Samsung (China) Logistics Ltd.
100.0
SAMSUNG C&T HONGKONG Ltd.
Samsung Corporation (Gaungzhou) Limited.
100.0
SAMSUNG C&T HONGKONG Ltd.
Posco-Samsung Suzhou Processing Center Co., Ltd
Samsung (China) Logistics Ltd.
Samsung Logistics (Tianjin) Ltd
100.0
Samsung (China) Logistics Ltd.
Samsung Trading (Shenzhen) Co., Ltd
100.0
Samsung C&T Chile Copper SpA
Pampa Camarones S.A.
46.5
S.C. Otelinox S.A
Comptoir Des Produits Inoxydables S.A.S.
87.5
Samsung Electronics
Samsung Japan Corporation
100.0
Samsung Electronics
Samsung R&D Institute Japan Co. Ltd
100.0
Samsung Electronics
Samsung Electronics America Inc.
100.0
Samsung Electronics
Samsung Electronics Canada Inc.
100.0
Samsung Electronics
Samsung Electronics Mexico S.A. De C.V.
Samsung Electronics
Nvelo.Inc
100.0
Samsung Electronics
Samsung Electronics (UK) Ltd.
100.0
100.0
0.0
0.1
45.0
20.0
63.6
Samsung Electronics 2014 Half Year Report
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Investing Company
Invested Company
Ownership
Samsung Electronics
Samsung Electronics(London) Ltd.
100.0
Samsung Electronics
Samsung Electronics Holding GmbH
100.0
Samsung Electronics
Samsung Electronics Iberia, S.A.
100.0
Samsung Electronics
Samsung Electronics France S.A.S
100.0
Samsung Electronics
Samsung Electronics Hungarian RT.
100.0
Samsung Electronics
Samsung Electronics Italia S.P.A.
100.0
Samsung Electronics
Samsung Electronics Europe Logistics B.V.
100.0
Samsung Electronics
Samsung Electronics Benelux B.V.
100.0
Samsung Electronics
Samsung Electronics Overseas B.V.
100.0
Samsung Electronics
Samsung Electronics Polska, SP.Zo.o
100.0
Samsung Electronics
Samsung Electronics Portuguesa S.A.
100.0
Samsung Electronics
Samsung Electronics Nordic Aktiebolag
100.0
Samsung Electronics
Samsung Electronics Austria GmbH
100.0
Samsung Electronics
Samsung Electronics Slovakia s.r.o
55.7
Samsung Electronics
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Electronics
Samsung Electronics Display (M) Sdn Bhd
Samsung Electronics
Samsung Electronics (M) Sdn. Bhd.
100.0
Samsung Electronics
Samsung Vina Electronics
100.0
Samsung Electronics
Samsung Asia Private Ltd.
100.0
Samsung Electronics
Samsung India Electronics Private Ltd.
100.0
Samsung Electronics
Samsung R&D Institute India-Bangalore Private Limited
100.0
Samsung Electronics
Samsung Electronics Australia Pty. Ltd.
100.0
Samsung Electronics
PT Samsung Electronics Indonesia
100.0
Samsung Electronics
Thai Samsung Electronics
Samsung Electronics
Samsung Malaysia Electronics (SME) Sdn. Bhd.
100.0
Samsung Electronics
Samsung Electronics Hong Kong Co., Ltd.
100.0
Samsung Electronics
Suzhou Samsung Electronics Co., Ltd.
69.1
Samsung Electronics
Samsung (CHINA) Investment Co.,Ltd.
100.0
Samsung Electronics
Samsung Electronics Suzhou Semiconductor Co., Ltd.
100.0
Samsung Electronics
Samsung Electronics (Shandong) Digital Printing Co., Ltd.
87.1
Samsung Electronics
Samsung Electronics Huizhou Co., Ltd.
89.6
Samsung Electronics
Tianjin Samsung Electronics Co., Ltd.
48.2
Samsung Electronics
Samsung Electronics Taiwan Co., Ltd.
100.0
Samsung Electronics
Tianjin Samsung Telecom Technology Co., Ltd.
Samsung Electronics
Shanghai Samsung Semiconductor Co., Ltd.
Samsung Electronics
Samsung Electronics Suzhou Computer Co., Ltd.
73.7
Samsung Electronics
Shenzhen Samsung Electronics Telecommunication Co., Ltd.
95.0
Samsung Electronics
Samsung Electronics Shanghai Telecommunication Co., Ltd.
100.0
Samsung Electronics
Samsung Semiconductor (China) R&D Co., Ltd.
100.0
Samsung Electronics
Samsung (China) Semiconductor Co., Ltd.
100.0
Samsung Electronics
Samsung Electronics Hainan Fiberoptics Co., Ltd
100.0
Samsung Electronics
Samsung Gulf Electronics Co., Ltd.
100.0
Samsung Electronics
Samsung Electronics Egypt S.A.E
Samsung Electronics
Samsung Electronics South Africa(Pty) Ltd.
100.0
Samsung Electronics
Samsung Electronics Latinoamerica (Zona Libre)
100.0
Samsung Electronics
Samsung Electronica da Amazonia Ltda.
87.0
Samsung Electronics
Samsung Electronics Argentina S.A.
98.0
100.0
75.0
91.8
90.0
100.0
0.1
Samsung Electronics 2014 Half Year Report
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Investing Company
Invested Company
Ownership
Samsung Electronics
Samsung Electronics Chile Limitada
Samsung Electronics
Samsung Electronics Rus Company LLC
100.0
4.1
Samsung Electronics
Samsung Electronics Rus Kaluga LLC
100.0
Samsung Electronics
Samsung Russia Service Centre LLC
100.0
Samsung Electronics
Samsung SDI Brasil Ltda.
Samsung Electronics
Tianjin Samsung LED Co., Ltd.
Samsung Electronics
Tianjin Samsung Opto-Electronics Co., Ltd.
Samsung BioEpis
Samsung Bioepis UK Limited
Samsung Display
Intellectual Keystone Technology LLC.
Samsung Display
Samsung Display Slovakia s.r.o.
100.0
Samsung Display
Samsung Display Suzhou Co., Ltd.
100.0
Samsung Display
Samsung Suzhou LCD Co., Ltd.
Samsung Display
Samsung Display Dongguan Co., Ltd.
Samsung Display
Samsung Display Tianjin Co., Ltd.
Samsung Display
Novaled GmbH
SEMES
SEMES America, Inc.
100.0
SEMES
SEMES (XIAN) Co., Ltd.
100.0
Samsung Medison
SonoAce Deutschland GmbH
100.0
Samsung Medison
Samsung Medison Europe B.V.
100.0
Samsung Medison
Samsung Medison India Private Ltd.
100.0
Samsung Medison
Samsung Medison Shanghai Medical Instrument Co., Ltd.
100.0
Samsung Electronics America, Inc.
NexusDX, Inc.
100.0
Samsung Electronics America, Inc.
NeuroLogica Corp.
100.0
Samsung Electronics America, Inc.
Samsung Receivables Corporation
Samsung Electronics America, Inc.
Samsung Semiconductor, Inc.
100.0
Samsung Electronics America, Inc.
Samsung Information Systems America, Inc.
100.0
Samsung Electronics America, Inc.
Samsung International, Inc.
100.0
Samsung Electronics America, Inc.
Samsung Telecommunications America LLC.
100.0
NexusDX, Inc.
Nanogen Recognomics GmbH
Samsung Semiconductor, Inc.
Grandis, Inc.
100.0
Samsung Semiconductor, Inc.
Samsung Austin Semiconductor LLC.
100.0
Samsung International, Inc.
Samsung Mexicana S.A. de C.V
100.0
Samsung Telecommunications America LLC.
Samsung Receivables Corporation
Samsung Electronics Mexico S.A. De C.V.
Samsung Electronics Digital Appliance Mexico, SA de CV
100.0
Samsung Electronics (UK) Ltd.
Samsung Semiconductor Europe Limited
100.0
Samsung Electronics Holding GmbH
Samsung Semiconductor Europe GmbH
100.0
Samsung Electronics Holding GmbH
Samsung Electronics GmbH
100.0
Samsung Electronics Hungarian RT.
Samsung Electronics Czech and Slovak s.r.o.
30.0
Samsung Electronics Hungarian RT.
Samsung Electronics Slovakia s.r.o
44.3
Samsung Electronics Benelux B.V.
Samsung Electronics Mexico S.A. De C.V.
36.4
Samsung Electronics Benelux B.V.
Samsung Electronics Baltics Si
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics West Africa
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics East Africa
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Egypt S.A.E
99.9
Samsung Electronics Benelux B.V.
Samsung Electronics Israel Ltd.
Samsung Electronics Benelux B.V.
Samsung Electronics Tunisia S.A.R.L
Samsung Electronics Benelux B.V.
Samsung Electronics Pakistan(Private) Ltd.
0.1
100.0
82.0
100.0
41.9
60.0
100.0
95.0
9.9
36.4
60.0
63.6
100.0
99.0
100.0
Samsung Electronics 2014 Half Year Report
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Investing Company
Invested Company
Ownership
Samsung Electronics Benelux B.V.
Samsung Electronics Turkey
100.0
Samsung Electronics Benelux B.V.
Samsung Semiconductor Israel R&D Center,Ltd.
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Levant Co.,Ltd.
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Morocco SARLAU
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Venezuela, C.A.
100.0
Samsung Electronics Benelux B.V.
Samsung Electronica da Amazonia Ltda.
Samsung Electronics Benelux B.V.
Samsung Electronics Chile Limitada
Samsung Electronics Benelux B.V.
Samsung Electronics Peru S.A.C.
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Rus LLC
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Ukraine LLC
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Ukraine Company LLC
100.0
Samsung Electronics Benelux B.V.
Samsung R&D Institute Rus LLC
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Kazakhstan LLP
100.0
Samsung Electronics Benelux B.V.
Samsung Electronics Central Eurasia LLP
100.0
Samsung Electronics Austria GmbH
Samsung Electronics Switzerland GmbH
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Electronics Czech and Slovak s.r.o.
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Electronics Romania LLC
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Electronics Poland Manufacturing SP.Zo.o
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Electronics Greece S.A.
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Nanoradio Design Center
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Denmark Research Center ApS
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung France Research Center SARL
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Samsung Cambridge Solution Centre Limited
100.0
Samsung Electronics Europe Holding Cooperatief U.A.
Novaled GmbH
Samsung Nanoradio Design Center
Nanoradio Hellas AE
Samsung Electronics Display (M) Sdn. Bhd.
Tianjin Samsung Electronics Co., Ltd.
2.2
Samsung Asia Private Ltd.
Samsung Electronics Japan Co., Ltd.
100.0
Samsung Asia Private Ltd.
Samsung Electronics Display (M) Sdn. Bhd.
25.0
Samsung Asia Private Ltd.
Samsung Electronics New Zealand Limited
100.0
Samsung Asia Private Ltd.
Samsung Electronics Philippines Corporation
100.0
Samsung Asia Private Ltd.
Samsung R&D Institute BanglaDesh
100.0
Samsung Asia Private Ltd.
Samsung Electronics Vietnam Co., Ltd.
100.0
Samsung Asia Private Ltd.
Samsung Telecommunications Malaysia Sbn. Bhd.
100.0
Samsung Asia Private Ltd.
Samsung Electronics Vietnam THAINGUYEN Co., Ltd.
100.0
Samsung Asia Private Ltd.
Samsung SDI (Malaysia) SDN. BHD.
25.0
Samsung Asia Private Ltd.
Samsung Electro-Mechanics Thailand Co., Ltd.
25.0
Samsung Asia Private Ltd.
iMarket Asia Co., Ltd.
11.3
PT Samsung Electronics Indonesia
PT Samsung Telecommunications Indonesia
99.0
Samsung Electronics Hong Kong Co., Ltd.
iMarket Asia Co., Ltd.
Suzhou Samsung Electronics Co., Ltd.
Samsung Suzhou Electronics Export Co., Ltd.
Samsung (CHINA) Investment Co., Ltd.
Suzhou Samsung Electronics Co., Ltd
Samsung (CHINA) Investment Co., Ltd.
Samsung Mobile R&D Center China-Guangzhou
100.0
Samsung (CHINA) Investment Co., Ltd.
Samsung Tianjin Mobile Development Center
100.0
Samsung (CHINA) Investment Co., Ltd.
Samsung Network R&D Center China-Shenzhen
100.0
Samsung (CHINA) Investment Co., Ltd.
Samsung R&D Institute China-Xian
100.0
Samsung (CHINA) Investment Co., Ltd.
Samsung Electronics (Shandong) Digital Printing Co., Ltd.
12.9
Samsung (CHINA) Investment Co., Ltd.
Samsung Electronics Huizhou Co., Ltd.
10.3
13.0
95.9
70.0
40.0
100.0
11.3
100.0
19.2
Samsung Electronics 2014 Half Year Report
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Investing Company
Invested Company
Ownership
Samsung (CHINA) Investment Co., Ltd.
Tianjin Samsung Electronics Co., Ltd.
40.8
Samsung (CHINA) Investment Co., Ltd.
Beijing Samsung Telecom R&D Center
100.0
Samsung (CHINA) Investment Co., Ltd.
Samsung Electronics Suzhou Computer Co., Ltd.
Samsung (CHINA) Investment Co., Ltd.
Samsung Electronics China R&D Center
100.0
Samsung (CHINA) Investment Co., Ltd.
Samsung Electronics (Beijing) Service Company Limited
100.0
Samsung (CHINA) Investment Co., Ltd.
Tianjin Samsung Opto-Electronics Co., Ltd.
8.0
Samsung Gulf Electronics Co., Ltd.
Samsung Electronics Egypt S.A.E
0.1
Samsung Electronics Morocco SARLAU
Samsung Electronics Tunisia S.A.R.L
1.0
Samsung Electronics Latinoamerica (Zona Libre)
Samsung Electronics Latinoamerica Miami, Inc.
100.0
Samsung Electronics Latinoamerica (Zona Libre)
Samsung Electronica Colombia S.A.
100.0
Samsung Electronics Latinoamerica (Zona Libre)
Samsung Electronics Panama. S.A
100.0
Samsung Electronica da Amazonia Ltda.
Samsung Electronics Argentina S.A.
Samsung SDI
Intellectual Keystone Technology LLC.
Samsung SDI
Samsung SDI Japan co.Ltd
100.0
Samsung SDI
Samsung SDI America, Inc.
91.7
Samsung SDI
Samsung SDI Hungary Rt.
100.0
Samsung SDI
Samsung SDI Europe GmbH.
100.0
Samsung SDI
Samsung SDI (Malaysia) SDN. BHD.
Samsung SDI
Samsung SDI Vietnam Co., LTD.
100.0
Samsung SDI
Samsung SDI Energy Malaysia SD
100.0
Samsung SDI
Samsung SDI (Hong Kong) Ltd.
Samsung SDI
Samsung SDI China Co,.Ltd
Samsung SDI
Samsung SDI Brasil Ltda.
Samsung SDI
iMarket Asia Co., Ltd.
Samsung SDI America, Inc.
Samsung SDI Mexico S.A. de C.V.
Samsung SDI America, Inc.
Samsung SDI Brasil Ltda.
40.4
Samsung SDI (Hong Kong) Ltd.
Shenzhen Samsung SDI Co., Ltd.
80.0
Samsung SDI (Hong Kong) Ltd.
Tianjin Samsung SDI Co., Ltd.
80.0
Samsung SDI (Hong Kong) Ltd.
Shanghai Samsung Electronic Devices Co., Ltd
60.3
Samsung SDI (Hong Kong) Ltd.
Samsung SDI Brasil Ltda.
14.5
Samsung Electro-Mechanics
Samsung Electro-Mechanics Japan Co., Ltd
100.0
Samsung Electro-Mechanics
Samsung Electro-Mechanics Japan Advanced Technology Co.,Ltd
100.0
Samsung Electro-Mechanics
Samsung Electro-Mechanics America, Inc.
100.0
Samsung Electro-Mechanics
Samsung Electro-Mechanics Gmbh
100.0
Samsung Electro-Mechanics
Samsung hungary Electro-Mechanics Private Ltd Liability Company
100.0
Samsung Electro-Mechanics
Samsung Electro-Mechanics(Thailand) Co., Ltd.
Samsung Electro-Mechanics
Samsung Electro-Mechanics Phils., Corp.
Samsung Electro-Mechanics
Calamba Premier Realty Corporation.
39.8
Samsung Electro-Mechanics
Samsung Electro-Mechanics Pte., Ltd
100.0
Samsung Electro-Mechanics
Samsung Electro Mechanics Vietnam Co., Ltd
100.0
Samsung Electro-Mechanics
Dongguan Samsung Electro-Mechanics Co., Ltd
100.0
Samsung Electro-Mechanics
Tianjin Samsung Electro-Mechanics Co., Ltd
Samsung Electro-Mechanics
Samsung Electro-Mechanics(HK) Co., Ltd.
Samsung Electro-Mechanics
Samsung High-Tech Electro-Mechanics(Tianjin) Co., Ltd
Samsung Electro-Mechanics
Samsung Electro-Mechanics(Shenzhen) Co., LTd
100.0
Samsung Electro-Mechanics
Kunshan Samsung Electro-Mechanics Co., Ltd
100.0
Samsung Electro-Mechanics
iMarket Asia Co., Ltd.
26.3
2.0
17.0
68.6
97.6
100.0
45.0
8.7
100.0
75.0
100.0
81.8
100.0
95.0
8.7
Samsung Electronics 2014 Half Year Report
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Investing Company
Invested Company
Ownership
Samsung Electro-Mechanics Japan Advanced Technology Samsung Electro-Mechanics Nakhonratchasima Co.,Ltd.
Co.,Ltd
Samsung Electro-Mechanics America, Inc.
Samsung Electro-Mechanics Do Brasil Intermediacoes
100.0
Calamba Premier Realty Corpora
Batino Realty Corporation
100.0
Samsung Fire & Marine Insurance
Samsung Fire & Marine Management Corporation
100.0
Samsung Fire & Marine Insurance
Samsung Fire & Marine Insurance Company of Europe Ltd.
100.0
Samsung Fire & Marine Insurance
P.T. Asuransi Samsung Tugu
70.0
Samsung Fire & Marine Insurance
Samsung Vina Insurance Co., Ltd.
75.0
Samsung Fire & Marine Insurance
Samsung Reinsurance Pte., Ltd.
100.0
Samsung Fire & Marine Insurance
Samsung Property and Casualty Insurance Co(China) Ltd.
100.0
Samsung Fire & Marine Insurance
Samsung Fire & Marine Consultoria Em Seguros Ltda.
100.0
Samsung General Chemicals
Samsung Petrochemical (Shanghai)
100.0
Samsung Total Petrochemicals
Dongguan Samsung Total Engineering Plastic co.,ltd.
100.0
Samsung Total Petrochemicals
Samsung Total Petrochemicals Trading (Shanghai) Co., Ltd.
100.0
Samsung Heavy Industries Co.,Ltd.
Camellia Consulting Corporation
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Wind Energy,Inc
100.0
Samsung Heavy Industries Co.,Ltd.
Offshore 1 consulting Corporation
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries Hamburg GmbH
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries India Pvt.Ltd.
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries (M) Sdn.Bhd
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries(Ningbo) Co., Ltd
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries(Rongcheng) Co., Ltd
100.0
Samsung Heavy Industries Co.,Ltd.
Rongcheng Gaya Heavy Industries Co., Ltd
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries Trade(Shanghai) Co.,Ltd
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries Nigeria Co., Ltd
100.0
Samsung Heavy Industries Co.,Ltd.
Samsung Heavy Industries Brazil
100.0
Samsung Heavy Industries Co.,Ltd.
SHI Brazil Construction
100.0
Camellia Consulting Corporation
Oil & Gas Solution LLC
50.0
Offshore 1 consulting Corporat
AMEC Samsung Oil & Gas, LLC
51.0
Samsung Life Insurance
Samsung Life Investment (America)
100.0
Samsung Life Insurance
Samsung Life Investment (U.K.) Limited.
100.0
Samsung Life Insurance
30 Gresham Street(Jersey) Limited
100.0
Samsung Life Insurance
Thai Samsung Life Insurance Co
35.8
Samsung Life Insurance
Samsung Air China Life Insurance
50.0
Samsung Life Insurance
Beijing Samsung Real Estate Co., Ltd
Samsung Asset Management
Samsung Investment Management(Singapore)
100.0
Samsung Asset Management
Samsung Investment Management(Hong Kong)
100.0
30 GRESHAM STREET(JERSEY) LIMI
30 GRESHAM STREET (SINGAPORE)
100.0
Cheil Industries Inc.
Intellectual Keystone Technology LLC.
24.0
Cheil Industries Inc.
Samsung Cheil Industries Japan
100.0
Cheil Industries Inc.
Samsung Chemical (USA), INC.
100.0
Cheil Industries Inc.
Starex Compounding America Inc
100.0
Cheil Industries Inc.
Samsung Chemical Europe Gmbh
100.0
Cheil Industries Inc.
Samsung Chemical Hungary Limited
100.0
Cheil Industries Inc.
Novaled GmbH
50.1
Cheil Industries Inc.
Samsung Chemical(Thailand) Co.
59.4
Cheil Industries Inc.
Samsung Chemical Material Trading(Shanghai) Co., Ltd.
100.0
Cheil Industries Inc.
Tianjin Samsung Engineering Plastics Co., Ltd.
100.0
100.0
51.0
90.0
Samsung Electronics 2014 Half Year Report
78 / 153
Investing Company
Invested Company
Ownership
Cheil Industries Inc.
Dongguan Samsung Engineering Plastics Co., Ltd.
100.0
Cheil Industries Inc.
Samsung Chemical Electronic Materials (SuZhou) Co., Ltd.
100.0
Starex Compounding America Inc.
Starcom Mexico
100.0
Samsung Chemical(Thailand) Co.
Samsung Thai Engineering Co.,
19.0
Samsung Techwin
Techwin Engineering Center Co.
100.0
Samsung Techwin
Samsung Opto-Electronics America
100.0
Samsung Techwin
Samsung Techwin Europe Limited
100.0
Samsung Techwin
Tianjin Samsung Techwin Opto-Electronics
Samsung Techwin
Shanghai Samsung Techwin
100.0
Samsung Techwin
Samsung Techwin Do Brasil Equipamentos
100.0
Samsung Everland
Samsung Fashion America Inc.
100.0
Samsung Everland
Samsung Fashion S.r.L
100.0
Samsung Everland
Colombo Via Della Spiga S.R.L
100.0
Samsung Everland
Samsung Fashion Trading (Shang
100.0
Samsung Everland
Samsung Everland Inc. Vietnam
100.0
Samsung Everland
iMarket Asia Co., Ltd.
19.3
Samsung Welstory
Shanghai Ever-Hongjun Business
51.0
Credu
Language Testing International
82.4
Opentide Greater China Co., Ltd.
Opentide China Co., Ltd.
100.0
Opentide Greater China Co., Ltd.
OpenTide Taiwan Co., Ltd.
100.0
Opentide Greater China Co., Ltd.
OpenTide Interactive Advertising Co.,Ltd
100.0
Opentide China Co., Ltd.
OpenTide e-Commerce Co., Ltd.
100.0
Opentide China Co., Ltd.
OpenTide Marketing Service Co., Ltd.
100.0
iMarket Asia Co., Ltd.
iMarket China Co., Ltd.
Samsung Fine Chemicals
Samsung Fine Chemicals Trading (Shanghai) Co., Ltd
100.0
Samsung Securities
Samsung Securities (America), Inc.
100.0
Samsung Securities
Samsung Securities (Europe) Limited.
100.0
Samsung Securities
Samsung Securities (Asia) Limited.
100.0
Samsung SDS
iMarket Asia Co., Ltd.
Samsung SDS
Samsung SDS America, Inc.
100.0
Samsung SDS
Samsung SDS Europe Ltd.
100.0
Samsung SDS
Samsung SDS Global SCL Netherland Cooperatief U.A
100.0
Samsung SDS
Samsung SDS Asia Pacific Pte. Ltd.
100.0
Samsung SDS
Samsung SDS India PVt. Ltd.
100.0
Samsung SDS
Samsung SDS China, Ltd.
100.0
Samsung SDS
Samsung SDS Latin America, Ltd.
Miracom
Miracom Asia Pacific
Samsung SDS America, Inc.
Samsung SDS Latin America, Ltd
Samsung SDS America, Inc.
Samsung SDS Mexico, S.A. DE C.
99.0
Samsung SDS Europe Ltd.
Samsung SDS Global SCL Hungary
100.0
Samsung SDS Europe Ltd.
Samsung SDS Global SCL Slovaki
100.0
Samsung SDS Europe Ltd.
Samsung SDS GSCL POLAND
100.0
Samsung SDS Europe Ltd.
Samsung SDS Global SCL Netherland Cooperatief U.A
Samsung SDS Europe Ltd.
Samsung SDS Global SCL Egypt C
100.0
Samsung SDS Europe Ltd.
Samsung SDS global SCL South A
100.0
Samsung SDS Europe Ltd.
Samsung SDS Global SCL Transpo
100.0
Samsung SDS Europe Ltd.
Samsung SDS Global SCL Rus Lim
100.0
95.0
80.0
40.6
99.7
100.0
0.3
Samsung Electronics 2014 Half Year Report
0.0
79 / 153
Investing Company
Invested Company
Ownership
Samsung SDS Global SCL Netherland Cooperatief U.A
Samsung SDS GSCL Poland
0.0
Samsung SDS Global SCL Netherland Cooperatief U.A
Samsung SDS Global SCL Rus Lim
0.0
Samsung SDS Asia Pacific Pte.
Samsung SDS GSCL Vietnam Co Ltd
Samsung SDS Asia Pacific Pte.
PT. Samsung SDS Global SCL Indonesia
100.0
Samsung SDS Asia Pacific Pte.
Samsung SDS Global SCL Philippines Co., Ltd.
100.0
Samsung SDS Asia Pacific Pte.
Samsung SDS Global SCL Thailand Co.,Ltd
100.0
Samsung SDS Asia Pacific Pte.
Samsung SDS Global SCL Malaysia SDN.BHD.
100.0
Samsung SDS Asia Pacific Pte.
Samsung SDS Global SCL Hong Kong Ltd
100.0
Samsung SDS China, Ltd.
Samsung SDS Global Development
100.0
Samsung SDS China, Ltd.
Samsung SDS Global SCL Beijing Co., Ltd
100.0
Miracom Asia Pacific
Miracom China
100.0
Samsung Engineering
Offshore 1 consulting Corporation
49.0
Samsung Engineering
Samsung Engineering America Inc.
100.0
Samsung Engineering
Samsung Engineering Magyarorszag Kft
100.0
Samsung Engineering
Samsung Engineering (Malaysia) SDN. BHD.
100.0
Samsung Engineering
PT Samsung Engineering Indonesia Co., Ltd.
100.0
Samsung Engineering
Samsung Thai Engineering Co., Ltd.
Samsung Engineering
Samsung Engineering India Private Ltd.
100.0
Samsung Engineering
Samsung Engineering Vietnam Co
100.0
Samsung Engineering
Samsung Engineering Construction(Shanghai) Co., Ltd
100.0
Samsung Engineering
Samsung Saudi Arabia Ltd.
95.0
Samsung Engineering
Muharraq Wastewater Services Company W.L.L.
64.8
Samsung Engineering
Muharraq STP Company B.S.C.
Samsung Engineering
Muharraq Holding Company 1 Limited
45.0
Samsung Engineering
Samsung INGENIERIA MEXICO S.A DE C.V.
99.7
Samsung Engineering
Samsung Ingenieria Minatitlan, S.A. De C.V.
Samsung Engineering
Samsung Engineering Trinidad Co., Ltd.
Samsung Engineering
Samsung Ingenieria Manzanillo, S.A. De C.V.
Samsung Engineering
Grupo Samsung Ingenieria Mexico, S.A. De C.V.
100.0
Samsung Engineering
Samsung Ingenieria Energia S.A. De C.V.
100.0
Samsung Engineering
Samsung Engineering America Do Sul Projecto E Consultoria Ltda.
100.0
Samsung Engineering
Samsung Engineering Bolivia S.
Samsung Engineering
Samsung Engineering Kazakhstan LLP
100.0
Samsung Engineering America Inc.
SEA Construction, LLC
100.0
Samsung Engineering (Malaysia)
Muharraq Wastewater Services Company W.L.L.
Samsung Thai Engineering Co.,
SAMSUNG CHEMICAL(THAILAND) CO.
Samsung Engineering India Private Ltd.
Samsung Saudi Arabia Ltd.
Samsung Saudi Arabia Ltd.
Samsung EPC Company limited
Muharraq Holding Company 1 Limited
Muharraq Holding Company 2 Lim
Muharraq Holding Company 2 Limited
Muharraq STP Company B.S.C.
S1 Corporation
SOCM LLC
100.0
S1 Corporation
Samsung Beijing Security Systems
100.0
Cheil Worldwide
Cheil USA Inc.
100.0
Cheil Worldwide
Cheil Central America Inc.
100.0
Cheil Worldwide
Cheil Europe Ltd.
100.0
Cheil Worldwide
Cheil Germany GmbH
100.0
Cheil Worldwide
Cheil France SAS
100.0
51.0
81.0
5.1
99.9
100.0
99.9
99.9
0.3
40.6
5.0
75.0
100.0
88.7
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Investing Company
Invested Company
Ownership
Cheil Worldwide
Cheil Nordic AB
100.0
Cheil Worldwide
Cheil India Pvt. Ltd.
100.0
Cheil Worldwide
Cheil (Thailand) Ltd.
100.0
Cheil Worldwide
Cheil Singapore Pte. Ltd.
100.0
Cheil Worldwide
Cheil Vietnam Co. Ltd.
Cheil Worldwide
Cheil Integrated Marketing Philippines, Inc
100.0
Cheil Worldwide
Cheil Malaysia SDN BHD
100.0
Cheil Worldwide
Cheil China
100.0
Cheil Worldwide
Cheil Hong Kong Limited
100.0
Cheil Worldwide
Bravo Asia Limited
100.0
Cheil Worldwide
Bravo Asia-Shanghai
100.0
Cheil Worldwide
Cheil MEA FZ-LLC
100.0
Cheil Worldwide
Cheil South Africa Pty., Ltd.
100.0
Cheil Worldwide
CHEIL KENYA LIMITED
Cheil Worldwide
Cheil Brazil Communications Ltda.
Cheil Worldwide
Cheil Mexico Inc. SA de CV
Cheil Worldwide
Cheil Rus LLC.
100.0
Cheil Worldwide
Cheil Ukraine LLC
100.0
Cheil Worldwide
Cheil Kazakhstan LLC
100.0
Hotel Shilla
Samsung Hospitality America
100.0
Hotel Shilla
New Jersey Int'l M.C.Inc.
100.0
Hotel Shilla
SAMSUNG HOSPITALITY U.K. Limited
100.0
Hotel Shilla
Shilla Travel Retail Pte.Ltd
100.0
Hotel Shilla
Shilla Limited
100.0
Hotel Shilla
Samsung Shilla Business Service Beijing Co., Ltd.
100.0
Hotel Shilla
Shilla Limited
100.0
SVIC #22
RT SV CO-INVEST, LP
Cheil USA Inc.
The Barbarian Group, LLC
100.0
Cheil USA Inc.
McKinney Ventures LLC.
100.0
Cheil USA Inc.
Cheil India Pvt. Ltd.
0.0
Cheil USA Inc.
Cheil Mexico Inc. SA de CV
2.0
Samsung Hospitality America
Samsung Hospitality EUROPE
Cheil Europe Ltd.
Beattie McGuinness Bungay Limited
Cheil Europe Ltd.
Cheil Italia S.r.l
100.0
Cheil Europe Ltd.
Cheil Spain S.L
100.0
Cheil Europe Ltd.
Cheil Benelux B.V.
100.0
Cheil Germany GmbH
Cheil Austria Gmbh
100.0
Cheil Singapore Pte. Ltd.
Opentide Greater China Co., Ltd.
Cheil Hong Kong Limited
Opentide Greater China Co., Ltd.
Cheil MEA FZ-LLC
One Agency FZ LLC
Cheil MEA FZ-LLC
One Agency Istanbul Advertisement, Communication & Production LLC
Cheil South Africa Pty., Ltd.
Cheil Kenya Limited
One Agency FZ LLC
One Agency Istanbul Advertisement, Communication & Production LLC
100.0
One Agency FZ LLC
One Agency Interior Design LLC
100.0
One Agency FZ LLC
One Agency Printing LLC
100.0
90.0
99.0
100.0
98.0
99.9
100.0
75.0
95.0
3.1
100.0
0.0
1.0
※ (%, As of June 30, 2014, Based on common shares)
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C. Related Statute & Regulation
Restrictions on cross-holdings within Samsung Group in accordance with the Monopoly Regulation and Fair Trade Act
(1) Date of announcement by authorities of companies deemed Samsung Group companies for the current year:
April 1, 2014
(2) Summary of Regulation
- Restriction of cross-holdings
- Restriction of debt guarantee between affiliates
- Restriction of voting rights at financial affiliates, including insurance
- Decision by board committee and public disclosure of large-scale related party transactions
- Public disclosure of important matters of unlisted companies
- Other public disclosures related to Group status
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D. Equity Investments in other corporations
(1) The total book value of equity investments in other corporations as of June 30, 2014 is KRW 45,897 billion
[As of June 30, 2014]
(Unit: 1000, KRW million, %)
Beginning Balance
Account
Name of Company
Acquisiti
on Date
Objective
Acquisition
Cost
Qty
Dom
estic
(AFS
Secu
rities)
Increase/Decrease
Owners
hip (%)
Book Value
Acquisition/Disposal
Qty
Amount
Ending Balance
Valuati
on
Ownership
(%)
Qty
Current Financial Stats
Book
Value
Total Asset
Net
Income
(Loss)
Listed
Samsung SDI
1977.01
Management
304
9,283
20.38
874,079
2,178
344,531
0
11,461
25.16
1,218,610
10,555,671
147,916
Listed
Samsung ElectroMechanics
1977.01
Management
250
17,693
23.69
445,244
0
0
0
17,693
23.69
445,244
7,185,343
345,692
Listed
Samsung Card
1988.12
Management
10,000
43,393
37.45
1,455,485
0
0
0
43,393
37.45
1,455,485
16,560,926
273,232
Listed
Samsung Techwin
1977.12
Management
336
13,527
25.46
235,638
0
0
0
13,527
25.46
235,638
3,434,224
133,039
Unlisted
STECO
1995.06
Business
24,000
2,448
51.00
32,724
0
0
0
2,448
51.00
32,724
91,556
3,188
Unlisted
SEMES
1992.12
Business
1,000
2,167
91.30
70,817
6
1,089
0
2,173
91.54
71,906
669,232
38,062
Unlisted
SERI
1991.05
Management
320
3,576
29.80
24,942
0
0
0
3,576
29.80
24,942
123,875
5,014
Unlisted
Samsung SDS
1992.07
Management
6,160
17,472
22.58
560,827
0
0
0
17,472
22.58
560,827
5,300,100
325,983
Unlisted
Samsung Lions
1986.08
Management
240
55
27.50
-102
0
0
0
55
27.50
-102
65,889
-12,166
Unlisted
Samsung
Electronics Service
1998.01
Business
30,000
6,000
99.33
48,121
0
0
0
6,000
99.33
48,121
335,588
4,363
Unlisted
MEMC Korea
1991.12
Management
36,000
3,440
20.00
35,286
-3,440
-35,286
0
0
0.00
0
266,963
5,418
2000.12
Business
3,100
1,767
100.00
247,523
0
0
0
1,767
100.00
247,523
564,361
4,425
1999.04
Business
76
1,011
100.00
46,669
0
0
0
1,011
100.00
46,669
140,733
3,185
2012.04
Management
52,296
4,378
19.99
0
0
0
0
4,378
19.99
0
191,164
-64,194
Unlisted
Unlisted
Unlisted
Samsung
Electronics Sales
Samsung
Electronics
Logitech
SSLM
Samsung Electronics 2014 Half Year Report
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Beginning Balance
Account
Name of Company
Acquisiti
on Date
Objective
Acquisition
Cost
Ownership
(%)
Qty
Increase/Decrease
Acquisition/Disposal
Book
Value
Qty
Amount
Ending Balance
Valuation
Ownership
(%)
Qty
Current Financial Stats
Book
Value
Total Asset
Net
Income
(Loss)
Unlisted
Samsung Display
2012.04
Business
16,009,547
221,969
84.78
18,509,307
0
0
0
221,969
84.78
18,509,307
35,754,894
2,400,779
Unlisted
SVIC #6
2005.07
Business
26,800
1
99.00
2,277
0
0
0
1
99.00
2,277
37,284
-10,041
Unlisted
SVIC #14
2009.05
Business
18,000
0
99.00
0
0
0
0
0
99.00
0
55,465
-1,882
Unlisted
SVIC #21
2011.11
Business
19,800
0
99.00
81,180
0
17,182
0
0
99.00
98,362
61,384
-11,804
Unlisted
SVIC #22
2011.11
Business
19,800
0
99.00
102,633
0
26,631
0
0
99.00
129,264
93,554
-4,497
Unlisted
World Cyber Games
2003.12
Business
1
450
47.60
0
-450
0
0
0
0.00
0
2,234
486
Unlisted
Suwon Samsung
Bluewings FC
2008.12
Business
2,000
400
100.00
2,000
-400
-2,000
0
0
0.00
0
4,115
-26
Unlisted
Samsung Medison
2011.02
Business
286,384
87,350
68.45
477,648
0
0
0
87,350
68.45
477,648
309,321
28,856
Unlisted
Samsung BioLogics
2011.04
Management
30,000
5,058
42.55
244,665
2,091
84,700
0
7,149
44.49
329,365
653,426
-140,762
Unlisted
Intellectual
Discovery
2011.05
Management
5,000
1,784
15.71
5,241
0
0
0
1,784
15.71
5,241
48,125
12,619
Listed
Samsung Heavy
Industries
1977.09
Management
125
40,676
17.61
1,547,708
0
0
-447,432
40,676
17.61
1,100,276
17,427,147
632,205
Listed
Samsung Fine
Chemicals
1995.05
Management
1,346
2,165
8.39
96,449
0
0
-7,360
2,165
8.39
89,089
1,900,118
3,340
Listed
Hotel Shilla
1979.12
Management
252
2,005
5.11
133,314
0
0
49,917
2,005
5.11
183,231
1,712,071
10,810
Listed
Cheil Worldwide
1988.09
Management
185
2,999
2.61
82,465
0
0
-14,094
2,999
2.61
68,371
1,704,531
102,269
Listed
A-Tech Solution
2009.11
Management
26,348
1,592
15.92
9,568
0
0
-239
1,592
15.92
9,329
181,148
-1,340
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Beginning Balance
Account
Name of Company
Acquisition
Date
Objective
Acquisition
Cost
Ownership
(%)
Qty
Increase/Decrease
Book
Value
Acquisition/
Disposal
Qty
Amount
Valuation
Qty
Ending Balance
Current Financial
Stats
Ownership
(%)
Book Value
Total
Asset
Net
Income
(Loss)
Listed
iMarket Korea
2000.12
Management
1,900
647
1.80
16,668
0
0
7,315
647
1.80
23,983
791,733
38,557
Listed
KT Skylife
2001.12
Management
3,344
240
0.50
7,092
0
0
-900
240
0.50
6,192
684,444
72,724
Listed
Cheil Industries
2014.06
Management
312,380
0
0.00
0
4,523
312,380
5,115
4,523
8.62
317,495
8,553,889
45,192
1978.01
Management
100
514
12.96
80,347
-514
-80,347
0
0
0.00
0
883,798
-42,180
1988.07
Management
1,500
1,914
3.91
80,653
1,103
48,257
0
3,017
5.29
128,910
1,597,400
205,314
1995.01
Management
5,000
1,000
17.24
5,000
0
0
0
1,000
17.24
5,000
85,615
691
1997.09
Management
590
1,135
0.98
5,677
0
0
0
1,135
0.98
5,677
682,137
35,726
1987.05
Management
150
72
0.39
365
0
0
0
72
0.39
365
221,876
12,938
1999.06
Management
1,097
219
19.00
368
0
0
0
219
19.00
368
4,279
294
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Unlisted
Samsung
Petrochemical
Samsung General
Chemicals
Kihyup Technology
Banking
Pusan Newport
The Korea
Economic Daily
Brooks Automation
Asia
Unlisted
Samsung Venture
Investment
1999.11
Management
4,900
980
16.33
7,021
0
0
0
980
16.33
7,021
64,049
2,575
Unlisted
Cyber Bank
2000.12
Management
8,000
1,083
7.46
0
0
0
0
1,083
7.46
0
0
0
Unlisted
FineChips
2001.12
Management
10
2
3.81
10
0
0
0
2
3.81
10
3,231
361
Unlisted
SK Telink
2010.11
Management
4,357
15
1.13
4,357
0
0
0
15
1.13
4,357
253,332
16,093
Unlisted
Inkel
2006.11
Management
130
0
0.00
0
0
0
0
0
0.00
0
153,629
974
Unlisted
Yongpyong Resort
2007.05
Management
1,869
400
1.05
1,869
0
0
0
400
1.05
1,869
734,627
12,019
Samsung Electronics 2014 Half Year Report
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Beginning Balance
Account
Name of Company
Acquisition
Date
Objective
Increase/Decrease
Acquisition
Cost
Ownership
(%)
Qty
Book Value
Acquisition/Disposal
Qty
Amount
Current Financial
Stats
Ending Balance
Valuation
Qty
Ownership
(%)
Book
Value
Total
Asset
Net
Income
(Loss)
Unlisted
E-SCOM
2007.12
Management
0
0
0.01
0
0
0
0
0
0.01
0
14,329
-7,482
Unlisted
TGSambo
2012.09
Management
0
0
0.01
0
0
0
0
0
0.01
0
37,940
1,467
Unlisted
Icube #1
2009.12
Management
4,000
0
16.23
4,000
0
0
0
0
16.23
4,000
24,399
97
Unlisted
KT Wibro
2010.07
Management
60,000
600
24.20
60,000
0
0
0
600
24.20
60,000
262,713
3,169
Unlisted
Shinsung Eng &
Construction
2010.07
Management
1
1
0.01
0
0
0
0
1
0.01
0
61,878
3,281
Unlisted
Woobang
2010.07
Management
0
1
0
0
0
0
0
1
0
0
171,444
1,109
2010.07
Management
0
2
0.02
0
0
0
0
2
0.02
0
42,516
-8,168
2012.12
Management
0
0
0.02
0
0
0
0
0
0.02
0
153,402
-51,563
2012.12
Management
0
9
0.02
0
0
0
0
9
0.02
0
1,217,768
-267,694
Unlisted
Unlisted
Unlisted
Heehoon Design &
Global
Daewoo
Development
Daewoo Songdo
Development
Unlisted
Daewoo Motor
Sales
2012.12
Management
0
1
0
0
0
0
0
1
0
0
318,071
-369
Unlisted
Woojung
Construction
2014.04
Withdrawal
0
0
0
0
5
0
0
5
0.35
0
23,920
-6,902
Unlisted
Hyunjin
2014.04
Withdrawal
0
0
0
0
23
0
0
23
0.25
0
47,994
1,579
Unlisted
Sungwon
Construction
2014.04
Withdrawal
0
0
0
0
1
0
0
1
0.03
0
35,318
-18,343
Unlisted
Inhee
2014.04
Withdrawal
0
0
0
0
2
0
0
2
0.17
0
15,780
-942
Unlisted
Samsung Solution
2014.04
Withdrawal
0
0
0
0
4
0
0
4
6.70
0
11,713
173
Unlisted
STX Construction
2014.04
Withdrawal
0
0
0
0
1
0
0
1
0.02
0
247,859
-443,500
Unlisted
Poonglim
2014.05
Withdrawal
0
0
0
0
52
0
0
52
0.37
0
512,015
72,350
Samsung Electronics 2014 Half Year Report
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Beginning Balance
Account
Name of Company
Acquisition
Date
Objective
Acquisition
Cost
Ownership
(%)
Qty
Increase/Decrease
Book
Value
Acquisition/Disposal
Qty
Valuation
Amount
Current Financial
Stats
Ending Balance
Ownership
(%)
Qty
Book
Value
Total
Asset
Net
Income
(Loss)
Unlisted
JNT
2011.02
Investment
1,800
0
24.00
3,360
0
0
0
0
24.00
3,360
13,647
-310
Unlisted
SV
2011.02
Investment
1,850
0
14.80
3,403
0
0
0
0
14.85
3,403
19,873
-1,730
Unlisted
Seoul Investment
Partners
2011.10
Investment
1,550
0
19.40
3,047
0
-175
0
0
19.38
2,872
15,778
1,257
Unlisted
Daishin Aju IB
2011.08
Investment
258
0
3.00
2,277
0
-154
0
0
3.00
2,123
68,934
2,235
Unlisted
TS
2011.11
Investment
1,700
0
20.48
3,400
0
-718
0
0
20.32
2,682
17,032
745
Unlisted
IMM
2011.11
Investment
760
0
7.60
2,489
0
965
0
0
7.60
3,454
34,792
1,512
Unlisted
L&S
2012.07
Investment
848
0
8.10
1,687
0
164
0
0
7.50
1,851
23,610
1,871
Unlisted
Taewon Electric
2012.04
Management
16,544
9
15.00
17,072
36
0
0
45
15.00
17,072
82,347
5,386
Unlisted
Pantech
2013.06
Business
53,000
53,000
10.03
53,053
0
0
0
53,000
10.03
53,053
714,097
-619,909
Unlisted
KTCNP-GC
2013.12
Business
960
0
3.00
960
0
0
0
0
3.00
960
25,578
-1,591
Listed
Wonik IPS
2013.12
Business
31,625
3,610
4.48
30,975
0
0
10,902
3,610
4.48
41,877
590,142
37,354
Unlisted
Postech Technology
Investment
2013.12
Business
600
0
10.00
600
0
0
0
0
10.00
600
118,613
3,514
Unlisted
High Pioneer Private
Investment Trust #1
2011.09
Business
29,244
0
100.00
19,470
0
0
0
0
100.00
19,470
19,189
-303
Samsung Electronics 2014 Half Year Report
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Beginning Balance
Account
Name of
Company
Acquisition
Date
Objective
Acquisition
Cost
Ownership
(%)
Qty
Over
sea
(AFS
Secu
rities)
Increase/Decrease
Book
Value
Acquisition/Disposal
Qty
Current Financial
Stats
Ending Balance
Valuation
Amount
Ownership
(%)
Qty
Book
Value
Total Asset
Net
Income
(Loss)
Unlisted
SECA
1992.08
Position
Security
3,823
0
100.00
90,922
0
0
0
0
100.00
90,922
522,775
48,920
Unlisted
SEA
1978.07
Position
Security
59,362
492
100.00
4,861,334
0
0
0
492
100.00
4,861,334
11,316,048
56,864
Unlisted
SELA
1989.04
319
40
100.00
86,962
0
0
0
40
100.00
86,962
375,274
-26,800
Unlisted
SEM
1995.07
3,032
3,173
63.58
111,697
664
53,941
0
3,837
63.58
165,638
1,554,638
10,689
Unlisted
SEASA
1996.06
4,696
21,854
98.00
6,779
0
0
0
21,854
98.00
6,779
49,454
6,353
Unlisted
SEDA
1994.01
13,224
62,816,336
87.04
577,483
0
0
0
62,816,336
87.04
577,483
3,429,136
914,548
Unlisted
SECH
2002.12
597
0
4.10
597
0
0
0
0
4.10
597
492,709
28,128
42,892
100
100.00
42,892
0
0
0
100
100.00
42,892
1,519
246
654
0
25.00
4,115
0
0
0
0
25.00
4,115
10,084
-728
3,276
8,021
100.00
142,091
0
0
0
8,021
100.00
142,091
783,438
57,386
392
1,000
100.00
69,372
0
0
0
1,000
100.00
69,372
533,252
39,394
1,954
753
100.00
650,157
0
0
0
753
100.00
650,157
1,249,691
103,658
204
1,751
100.00
37,616
0
0
0
1,751
100.00
37,616
132,631
8,139
230
2,700
100.00
234,115
0
0
0
2,700
100.00
234,115
1,157,900
127,155
Unlisted
Unlisted
Nvelo,
Inc.
CMLA
LLC
2012.12
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
2008.02
Management
Position
Security
Unlisted
SESA
1989.01
Unlisted
SENA
1992.03
Unlisted
SEH
1991.05
Unlisted
SEP
1982.09
Unlisted
SEF
1991.08
Unlisted
SEUK
1995.07
Position
Security
33,908
109,546
100.00
433,202
0
0
0
109,546
100.00
433,202
1,393,507
92,969
Unlisted
SEHG
1982.02
Position
Security
28,042
0
100.00
354,846
0
0
0
0
100.00
354,846
886,338
122,818
Position
Security
Position
Security
Position
Security
Position
Security
Samsung Electronics 2014 Half Year Report
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Beginning Balance
Account
Name of
Company
Acquisition
Date
Objective
Acquisition
Cost
Ownership
(%)
Qty
Increase/Decrease
Acquisition/Disposal
Book
Value
Qty
Valuation
Amount
Current Financial
Stats
Ending Balance
Ownership
(%)
Qty
Book
Value
Total
Asset
Net
Income
(Loss)
Unlisted
SEAG
2002.01
Position Security
40
0
100.00
32,162
0
0
0
0
100.00
32,162
323,756
17,845
Unlisted
SEI
1993.05
Position Security
862
677
100.00
143,181
0
0
0
677
100.00
143,181
1,004,423
70,337
Unlisted
SEBN
1995.07
Position Security
236
500,285
100.00
860,716
21,129
30,899
0
521,414
100.00
891,615
1,290,124
25,233
Unlisted
SELS
1991.05
Position Security
18,314
1,306
100.00
24,288
0
0
0
1,306
100.00
24,288
1,903,892
7,613
Unlisted
SEPOL
1996.04
Position Security
5,462
106
100.00
78,267
0
0
0
106
100.00
78,267
557,370
41,945
Unlisted
SSA
1998.12
Position Security
263
2,000
100.00
32,622
0
0
0
2,000
100.00
32,622
787,562
87,809
Unlisted
SESK
2002.06
Position Security
8,976
0
55.68
263,767
0
0
0
0
55.68
263,767
1,764,078
140,825
Unlisted
SEEH
2008.01
Position Security
4,214
0
100.00
1,304,648
0
0
0
0
100.00
1,304,648
5,780,302
-28,769
Unlisted
SEO
1997.01
Position Security
120
0
100.00
-10,043
0
0
0
0
100.00
-10,043
173,644
-352
Unlisted
SRSC
1997.11
Position Security
707
0
100.00
8,211
0
0
0
0
100.00
8,211
41,567
3,546
Unlisted
SERC
2006.01
Position Security
24,877
0
100.00
180,079
0
0
0
0
100.00
180,079
1,410,054
-11,137
Unlisted
SERK
2007.07
Position Security
4,600
0
100.00
204,555
0
0
0
0
100.00
204,555
1,122,495
69,837
Unlisted
SEAU
1987.11
Position Security
392
53,200
100.00
111,964
0
0
0
53,200
100.00
111,964
578,624
31,998
Unlisted
SEMA
1989.09
Position Security
4,378
16,247
100.00
153,602
0
0
0
16,247
100.00
153,602
277,354
33,000
Unlisted
SGE
1995.05
Position Security
827
0
100.00
32,836
0
0
0
0
100.00
32,836
1,071,694
-13,157
Unlisted
SEEG
2012.07
Position Security
23
0
0.05
39
0
0
0
0
0.05
39
251,866
-11,788
Samsung Electronics 2014 Half Year Report
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Beginning Balance
Account
Name of
Company
Acquisition
Date
Objective
Acquisition
Cost
Ownership
(%)
Qty
Increase/Decrease
Book
Value
Acquisition/Disposal
Qty
Ending Balance
Valuation
Amount
Ownership
(%)
Qty
Current Financial Stats
Book
Value
Total
Asset
Net
Income
(Loss)
Unlisted
SEIN
1991.08
Position Security
7,463
46
99.99
118,909
0
0
0
46
99.99
118,909
647,199
141,290
Unlisted
SDMA
1995.03
Position Security
21,876
71,400
75.00
244,382
0
0
0
71,400
75.00
244,382
814,820
70,830
Unlisted
SIEL
1995.08
Position Security
5,414
216,787
100.00
75,263
0
0
0
216,787
100.00
75,263
1,924,832
324,171
Unlisted
SRI-B
2005.05
Position Security
7,358
17
100.00
31,787
0
0
0
17
100.00
31,787
147,900
20,316
Unlisted
SAVINA
1995.01
Position Security
5,839
0
100.00
28,365
0
0
0
0
100.00
28,365
175,780
18,173
Unlisted
TSE
1988.01
Position Security
1,390
11,020
91.83
279,163
0
0
0
11,020
91.83
279,163
1,476,296
222,389
Unlisted
STE
1996.01
Position Security
4,206
0
49.00
4,474
0
0
0
0
49.00
4,474
23,979
-7
Unlisted
SME
2003.05
Position Security
4,796
17,100
100.00
7,644
0
0
0
17,100
100.00
7,644
814,104
36,427
Unlisted
SAPL
2006.07
Position Security
793
736,269
100.00
870,623
0
0
0
736,269
100.00
870,623
2,425,585
674,510
Unlisted
SEHK
1988.09
Position Security
349
274,250
100.00
79,033
0
0
0
274,250
100.00
79,033
1,188,620
37,977
Unlisted
SET
1994.11
Position Security
456
27,270
100.00
112,949
0
0
0
27,270
100.00
112,949
1,390,404
30,802
Unlisted
SESS
1994.12
Position Security
18,875
0
100.00
483,923
0
20,390
0
0
100.00
504,313
660,374
64,362
Unlisted
SCIC
1996.03
Position Security
23,253
0
100.00
617,941
0
0
0
0
100.00
617,941
8,406,438
743,369
Unlisted
SEHZ
1992.12
Position Security
792
0
89.56
255,535
0
0
0
0
89.56
255,535
4,599,200
1,012,728
Unlisted
SSEC
1995.04
Position Security
32,128
0
69.06
130,551
0
0
0
0
69.06
130,551
645,699
67,668
Unlisted
TSEC
1993.04
Position Security
15,064
0
48.20
138,101
0
0
0
0
48.20
138,101
907,752
155,258
Samsung Electronics 2014 Half Year Report
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Beginning Balance
Account
Name of
Company
Acquisition
Date
Objective
Acquisition
Cost
Qty
Unlisted
SSDP
1993.08
Unlisted
TSTC
2001.03
Unlisted
SSTC
2001.11
Unlisted
SSET
2002.02
Unlisted
SESC
2002.09
Unlisted
SSS
2001.01
Unlisted
SEHF
2004.04
Unlisted
SSCR
2006.09
Unlisted
TSOE
2010.04
Unlisted
TSLED
2012.04
Unlisted
SCS
2012.09
Unlisted
SJC
1975.12
Unlisted
SRJ
1992.08
Unlisted
TSST Japan
2004.03
Unlisted
SDIB
Unlisted
Semiconductor
Portal
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Position
Security
Increase/Decrease
Ownership
(%)
Book Value
Acquisition/
Disposal
Qty Amount
Current Financial
Stats
Ending Balance
Valuation
Ownershi
p (%)
Qty
Book
Value
Total
Asset
Net
Income
(Loss)
4,446
0
87.10
65,319
0
0
0
0
87.10
65,319
761,018
94,541
10,813
0
90.00
490,041
0
0
0
0
90.00
490,041
2,939,027
767,822
15,799
0
100.00
-1,186
0
0
0
0
100.00
-1,186
1,411
-4,958
6,009
0
60.00
121,624
0
0
0
0
95.00
121,624
88,698
7,122
5,471
0
73.70
34,028
0
0
0
0
73.70
34,028
846,670
58,194
1,200
0
100.00
19,189
0
0
0
0
100.00
19,189
1,310,109
130,082
17,204
0
100.00
85,088
0
0
0
0
100.00
85,088
111,367
-7,855
3,405
0
100.00
9,332
0
0
0
0
100.00
9,332
18,982
1,874
33,837
167,199
82.00
93,154
0
0
0
167,199
82.00
93,154
241,957
34,236
119,519
0
100.00
119,519
0
0
0
0
100.00
119,519
457,896
15,570
111,770
0
100.00
2,538,826
0
173,270
0
0
100.00
2,712,096
3,752,682
-40,537
273
1,560
100.00
370,647
0
0
0
1,560
100.00
370,647
1,174,832
2,866
3,120
122
100.00
117,257
0
0
0
122
100.00
117,257
181,723
4,905
Management
1,639
0
49.03
11,137
30
39,380
-50,517
30
49.03
0
169,322
-41,875
1996.09
Management
3,110
586
0.08
0
0
0
0
586
0.08
0
49,372
10,088
2002.12
Management
38
0
1.21
10
0
0
0
0
1.21
10
1,724
2,141
Samsung Electronics 2014 Half Year Report
91 / 153
Beginning Balance
Account
Name of
Company
Acquisition
Date
Objective
Acquisition
Cost
Qty
Unlisted
Unlisted
Unlisted
FTS
Nanosys,
Inc
ONE BLUE
LLC
Increase/Decrease
Ownership
(%)
Book Value
Acquisition/
Disposal
Qty
Amount
Ending Balance
Valuation
Ownership
(%)
Qty
Current Financial Stats
Book Value
Net
Income
(Loss)
Total
Asset
2008.12
Management
1,952
116
41.50
563
0
0
0
116
41.50
563
2,710
406
2010.08
Management
4,774
1,747
1.67
2,387
0
0
0
1,747
1.67
2,387
22,159
857
2011.07
Management
1,766
0
16.67
1,766
0
0
0
0
16.67
1,766
33,803
875
Unlisted
TidalScale
2013.08
Management
1,112
2,882
18.98
1,112
0
0
0
2,882
18.98
1,112
1,214
-1,948
Listed
SSL
2014.05
Business
37,553
0
0.00
0
2,426
37,553
4,103
2,426
5.84
41,656
-
-
Unlisted
Mantis
Vision
2014.01
Business
1,594
0
0.00
0
301
1,594
0
301
3.53
1,594
3,236
-4,186
Unlisted
INEDA
2014.04
Business
3,181
0
0.00
0
3,918
3,181
0
3,918
5.55
3,181
9,878
2,955
Listed
Rambus
2010.01
Business
185,363
4,788
4.34
47,851
0
0
21,605
4,788
4.19
69,456
752,829
-36,931
Listed
SEAGATE
2011.12
Business
788,454
12,539
3.80
743,161
0
0
-20,407
12,539
3.80
722,754
9,754,138
2,011,378
33,690 1,079,427
-441,992
Total
18,944,087
45,261,470
45,896,905
*Based on separate financial statements
*Ownership is calculated based on common shares
Samsung Electronics 2014 Half Year Report
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V. Information on Shareholders
1. Ownership of shares by the major shareholder and related parties
The following table presents changes in shares held by the major shareholder and related parties as of the beginning and
end of the reporting period.
[As of June 30, 2014]
(Unit: Shares, %)
Name
Relationship
Type of
share
Number of Shares owned / %
Beginning of period
# shares owned
End of period
%
# shares owned
Note
%
Kun-Hee Lee
Major
shareholder
Common
4,985,464
3.38
4,985,464
3.38
-
Kun-Hee Lee
Major
shareholder
Preferred
12,398
0.05
12,398
0.05
-
Samsung C&T
Affiliate
Common
5,976,362
4.06
5,976,362
4.06
-
Samsung Welfare
Foundation
Affiliate
Common
89,683
0.06
89,683
0.06
-
Samsung Foundation
Of Culture
Affiliate
Common
37,615
0.03
37,615
0.03
-
Ra-Hee Hong
Affiliate
Common
1,083,072
0.74
1,083,072
0.74
-
Jae-Yong Lee
Affiliate
Common
840,403
0.57
840,403
0.57
-
Samsung Life
Insurance
Affiliate
Common
10,622,814
7.21
10,622,814
7.21
-
Samsung Life
Insurance
Affiliate
Preferred
879
0.00
879
0.00
-
Samsung Life
Insurance
(special accounts)
Affiliate
Common
514,098
0.35
502,235
0.34
Open market sales
Samsung Life
Insurance
(special accounts)
Affiliate
Preferred
26,379
0.12
30,895
0.14
Open market sales
Samsung Fire &
Marine Insurance
Affiliate
Common
1,856,370
1.26
1,856,370
1.26
-
Samsung Fire &
Marine Insurance
(special accounts)
Affiliate
Common
143
0.00
143
0.00
-
Samsung Fire &
Marine Insurance
(special accounts)
Affiliate
Preferred
53
0.00
53
0.00
-
Cheil Industries
Affiliate
Common
9,679
0.01
0
0.00
Open market sales
Oh-Hyun Kwon
Affiliate
Common
3,000
0.00
3,000
0.00
-
Sang-Hoon Lee
Affiliate
Common
1,473
0.00
1,473
0.00
-
Common
26,020,176
17.66
25,998,634
17.65
-
Preferred
39,709
0.17
44,225
0.19
-
Total
※ Note: According to the closed shareholder register, as at June 30,2014, Yong-Jin Jeong, CEO of Shinsegye, holds 293,500 shares.
※ The definition of major shareholder is as defined in the Monopoly Regulation and Fair Trade Act
Samsung Electronics 2014 Half Year Report
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[The major shareholder]
○ Name of the major shareholder: Kun-Hee Lee
○ Education: Waseda University School of Commerce (1965)
George Washington University MBA (1966)
○ Career (recent 5 years): Chairman of Samsung Electronics (2010.3 ~)
Chairman/CEO of Samsung Electronics (1998.4 ~ 2008.4)
Vice Chairman of the Federation of Korean Industries (1987 ~)
Member of the International Olympic Committee (1996 ~)
-There are no changes recorded during the reported period
2. Ownership of shares
As at June 30, 2014, at the date of Suspension of Entry in the Register of Shareholders, shareholders with over 5% voting
shares, excluding the major shareholder, are as follows:
[As of June 30, 2014]
(Unit: Shares)
Classification
Shareholders with
over 5% voting
shares
Name
Number of shares owned
Share ratio
Note
National Pension Service
11,509,043
7.81
-
Samsung Life Insurance
11,125,049
7.55
-
-
Employee Stock Ownership Association
-
-
※ The number of shares owned and share ratio of Samsung Life Insurance includes special accounts.
3. Minority Shareholders
[As of June 30, 2014]
(Unit: Person, Shares, %)
Shareholder
Shares owned
Classification
Note
# of shareholders
Portion
# of shares
Portion
Minority
shareholder
134,000
99.95
80,030,253
54.33
Total
134,068
100.00
147,299,337
100.00
Shareholders with shares less than 1/100 of
total issued stocks
※ On a common stock (with voting right) basis.
Samsung Electronics 2014 Half Year Report
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4. Stock Affairs
1. New shares to be issued by the Company shall be allocated to the shareholders in proportion to their
respective shareholdings in accordance with Paragraph 6, Article 8. If shareholders wave or lose their
preemptive right to new shares issues or if there are fractional shares at the time of allocation of new
shares, such shares may be handled by a resolution of the Board of Directors.
2. Notwithstanding the above Paragraph 1, new shares may be allocated to persons other than
shareholders in the following cases:
a. If the Company issues new shares or causes underwriters to underwrite new shares by a resolution of
the Board of Directors in accordance with the applicable laws and regulations including the Securities
and Exchange Act ("SEA");
b. If the Company allocates new shares preferentially to members of the Employee Stock Ownership
Association by a resolution of the Board of Directors in accordance with the applicable laws and
regulations including SEA;
c. If the Company issues new shares for the issuance of depositary receipts (DR) by a resolution of the
Board of Directors in accordance with the applicable laws and regulations including SEA;
d. If the Company issues new shares by public offering in accordance with Article 11-3;
Preemptive Rights in the
Articles of Incorporation
e. If new shares are issued by the exercise of stock options in accordance with Article 11-4;
f. If the Company issues new shares to the extent of 30% of the total issued and outstanding shares, to
domestic or foreign financial institutions to obtain financing urgently, or to partner companies to induce
technology therefrom, etc., by a resolution of the Board of Directors; provided that the issue price of the
new shares shall not be less than the price prescribed by Article 84-5 of the Enforcement Decree of
SEA.
☞(Note) Paragraph 6, Article 8
In the case of rights issues, bonus issues or stock dividends, common shareholders shall be entitled to common
shares, and preferred shareholders shall be entitled to preferred shares, in proportion to their respective
shareholdings; provided that in the case of rights issue and stock dividend the Company may, if necessary, issue
only one kind of shares, where all the shareholders, regardless of the class of their shares, shall be entitled to
the kind of shares to be issued.
☞ (Note) Article 11-3
(Public Offering)
1. The Company may issue new shares by public offering to the extent that the new shares do not exceed 30% of
the total number of issued and outstanding shares by a resolution of the Board of Directors, pursuant to Article
189-3 of the SEA.
2. If the Company issues new shares by public offering, the type, number and issue price of the new shares shall be
determined by a resolution of the Board of Directors; provided that the issue price of such new shares shall not
be less than the price prescribed by Article 84-5 of the Enforcement Decree of the SEA.
Samsung Electronics 2014 Half Year Report
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☞ (Note) Article 11-4
(Stock Options)
1. The Company may grant stock options to its officers and employees (in this Article, “officers and employees”
include officers and employees of the related companies as set forth in Article 189-4, Paragraph 1 of the SEA) by
a special resolution of the general meeting of shareholders pursuant to Article 189-4 of the SEA, to the extent
permitted by the SEA; provided, however, that the Company may grant the stock options to its officers and
employees (except for the directors of the Company) by a resolution of the Board of Directors to the extent
determined by the relevant laws and regulations.<Amended, Feb.28, 2002>
2. The persons to whom stock options may be granted are the officers and employees who have contributed or
have the capacity to contribute to the establishment, management, overseas business, technical innovation, etc.
of the Company; provided, however, that the officers and employees who are not entitled to stock options under
the relevant laws and regulations shall be excluded.<Amended, Feb.28, 2002>
Preemptive Rights in the
Articles of Incorporation
3. The shares to be issued to the officers or employees by the exercise of their stock options (in case the Company
pays, either in cash or treasury shares, the difference between the exercise price of stock options and the market
price, they refer to the shares which are the basis for such calculation) shall be common shares in registered
form or preferred shares in registered form.
4. Total number of shares to be delivered in accordance with the exercise of stock options shall be up to the extent
permitted by the relevant laws and regulations.
5. The stock options may be exercised until an expiry date determined by a resolution of the general meeting of
shareholders or the Board of Directors and the expiry date shall be in no more than eight (8) years from when
two (2) years have elapsed from the date of the general meeting of shareholders or the Board of Directors'
meeting at which a resolution to grant such stock options was; provided, however, that the person to whom a
stock option is granted should serve the Company for at least two (2) years after the date of such resolution in
order to exercise such stock option, unless otherwise set forth by relevant laws and regulations.<Amended,
Feb.28, 2002>
6. The terms and conditions of stock options, such as the contents and exercise price thereof shall be determined
by a special resolution of the general meeting of shareholders or by a resolution of the Board of Directors in
accordance with the relevant laws and regulations and the Articles of Incorporation; provided, however, that such
matters which are not provided for as matters reserved for resolutions of the general meeting of shareholders or
the Board of Directors' meeting under the relevant laws and regulations or the Articles of Incorporation may be
determined by the Board of Directors or a committee authorized by the Board of Directors.<Amended, Feb.28,
2002>
7. The Company may cancel the grant of stock options by a resolution of the Board of Directors in any of the
following cases: <Amended, Feb.28, 2002>
a. In case the option grantees voluntarily retire from their office or leave the Company after the grant of stock
options;
b. In case the option grantees cause substantial damage to the Company due to their willful misconduct or
negligence;
c. In case any of the causes for cancellation set forth in the stock option agreement occur
Settlement date
Annual General
Meetings of
Shareholders
December 31
Shareholder register closing period
Stock type
Transfer agent
Shareholder benefit
Within 3 months after the end of every business year
One month from January 1
1,5,10,50,100,500,1000,10000(8 types)
Korea Securities Depository(T: +82-2-3774-3000): 23, Yeouinaru-ro 4-gil, Yeongdeungpo-gu, Seoul, Korea
n/a
Published on
Joongang Daily
Samsung Electronics 2014 Half Year Report
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5. Stock Price and Stock Transactions
A. Domestic stock market
(Unit: KRW, Shares)
Type
Stock price
Common
stock
Volume
Stock price
Preferred
stock
Volume
Jan ‘14
Feb
Mar
Apr
May
Jun
Highest
1,328,000
1,349,000
1,343,000
1,407,000
1,460,000
1,470,000
Lowest
1,272,000
1,237,000
1,247,000
1,339,000
1,335,000
1,301,000
Average
1,299,150
1,298,300
1,300,000
1,376,455
1,409,211
1,373,895
Highest
(day)
620,500
325,184
417,557
381,976
385,621
478,053
Lowest
(day)
151,246
116,769
118,788
65,985
74,712
148,789
Monthly
6,360
4,231
4,425
4,950
4,612
5,222
Highest
989,000
1,063,000
1,069,000
1,094,000
1,165,000
1,151,000
Lowest
938,000
940,000
972,000
1,037,000
1,031,000
1,033,000
Average
959,550
980,450
1,030,810
1,072,000
1,102,368
1,075,526
Highest
(day)
87,543
98,095
70,781
92,408
95,484
96,237
Lowest
(day)
18,087
13,360
14,376
2,708
9,501
18,274
Monthly
873
965
729
792
767
1,056
※ Monthly trading volume in 1,000 shares
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B. Overseas stock market

Name of stock exchange: London Stock Exchange (common stock)
(Unit: $, KRW, DR)
Type
Stock
price
Common
stock
Volume
Jan ‘14
Feb
Mar
Apr
May
Jun
Highest
624.00
630.50
629.00
670.00
715.00
718.50
(Converted to KRW)
658,507
675,013
672,275
696,465
731,159
735,960
Lowest
587.00
574.50
576.50
632.00
643.50
640.50
(Converted to KRW)
633,490
623,964
622,447
670,236
663,899
652,029
Average
607.34
608.10
606.62
654.98
681.35
677.52
Highest (day)
114,204
262,527
136,208
200,931
146,900
118,089
Lowest (day)
33,681
25,078
26,084
700
24
28,418
Monthly
1,740
1,502
1,290
1,603
1,275
1,210
※ Monthly volume in 1,000 DR shares.
※ Stock price converted to KRW is based on KRW/USD exchange rate of closing price of trading day.
Ratio: Common one (1) share equals DR two (2) shares

Name of stock exchange: Luxembourg Stock Exchange (Preferred stock)
(Unit: $, KRW, DR )
Type
Stock price
Preferred
stock
Volume
Jan ‘14
Feb
Mar
Apr
May
Jun
Highest
468.50
489.80
498.50
520.50
569.00
563.50
(Converted to KRW)
494,408
522,959
529,706
541,997
581,916
577,193
Lowest
428.50
431.60
453.70
490.60
499.00
507.00
(Converted to KRW)
462,437
468,761
485,777
520,281
514,818
516,278
Average
445.92
457.56
481.72
509.34
532.95
530.71
Highest (day)
59,901
27,700
27,261
71,163
32,913
41,921
Lowest (day)
6,651
548
1,030
953
3,058
895
458
150
144
244
296
179
Monthly
※ Monthly volume in 1,000 DR shares.
※ Stock price converted to KRW is based on KRW/USD exchange rate of closing price of trading day.
Ratio: Common one (1) share equals DR two (2) shares
Samsung Electronics 2014 Half Year Report
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VI. Executives and Employees
1. Executives and Employees
A. Registered Executives
[As of June 30, 2014]
(Unit: # of shares)
Gender
Date of
birth
Position
OhHyun
Kwon
M
1952.10
CEO
Registered
Full time
executive
BooKeun
Yoon
M
1953.02
CEO
Registered
Full time
executive
JongKyun
Shin
M
1956.01
CEO
1955.06
SangHoon
Lee
M
Registered
executive
Full/
parttime
Name
Responsibility
Major
career
Chairman of BOD
Head of DS
division
Number of shares
owned
In office
Term expiration
0
28 mo.
2015.03.15
0
0
16 mo.
2016.03.14
Head of
IM division
0
0
16 mo.
2016.03.14
CFO, Head of
Corporate
Management
Office
Head of
Corporate
Management
Office
1,473
0
16 mo.
2016.03.14
Registered
Part time
executive
Overall
management of
the Company
President
& CEO of
Shinhan
Bank
0
0
52 mo.
2016.03.14
Common
Preferred
Head of DS
division
3,000
Head of CE
division
Head of CE
division
Registered
Full time
executive
Head of IM
division
CFO
Registered
Full time
executive
In-Ho
Lee
M
1943.11
Independent
Director
HanJoong
Kim
M
1948.11
Independent
Director
Registered
Part time
executive
Overall
management of
the Company
President
of Yonsei
University
0
0
28 mo.
2015.03.15
KwangSoo
Song
M
1950.01
Independent
Director
Registered
Part time
executive
Overall
management of
the Company
Advisor at
Kim &
Chang Law
Office
0
0
16 mo.
2016.03.14
Overall
management of
the Company
Professor of
Electrical
Engineering
at Seoul
National
University
0
0
28 mo.
2015.03.15
Overall
management of
the Company
Dean of
Graduate
School of
International
Studies at
Ewha
Womans
University
0
0
16 mo.
2016.03.14
ByeongGi Lee
EunMee
Kim
M
F
1951.05
1958.09
Independent
Director
Independent
Director
Registered
Part time
executive
Registered
Part time
executive
Samsung Electronics 2014 Half Year Report
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B. Concurrent position with other companies
Concurrent office holder
Company
Name
Position
Name of company
Position
Kwang-Soo Song
Independent director
Doosan Corp.
Independent director
C. Employees
(As of June 30, 2014)
(Unit: KRW million)
No. of employees
Division
Regular
Contractbased
Others
Total
Average length
of service
(years)
Gender
Total
Compensation
Average
Compensation
per employee
CE
M
12,899
367
-
13,266
11.3
-
-
CE
F
2,554
231
-
2,785
6.0
-
-
IM
M
19,484
331
-
19,815
9.4
-
-
IM
F
7,746
138
-
7,884
6.8
-
-
DS
M
28,662
242
-
28,904
9.6
-
-
DS
F
12,992
208
-
13,200
8.5
-
-
Others
M
9,562
424
-
9,986
11.4
-
-
Others
F
2,077
378
-
2,455
6.7
-
-
Gender Total
M
70,607
1,364
-
71,971
10.1
3,438,178
48
Gender Total
F
25,369
955
-
26,324
7.6
773,099
30
95,976
2,319
-
98,295
9.4
4,211,277
43
Total
※ Total compensation and average compensation per employee were calculated before income tax deduction based on the earned
income payment record submitted to the district tax office in accordance with Article 20 of the Income Tax Law
※ The number of employees represent domestic employees, excluding four executive directors.
※ Average compensation per employee was calculated based on total average employee figure of 97,886 (male: 71,756; female:
26,130)
Samsung Electronics 2014 Half Year Report
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2. Remuneration for Executives
A. Summary
(1) Remuneration approved at the annual general meetings of shareholders
(Unit: KRW million)
Amount Approved at
Shareholders’ Meeting
Number of Persons
Note
Executive Directors
4
-
-
Independent Directors
2
-
-
Audit Committee member or Auditor
3
-
-
Total
9
48,000
-
※ Number of persons as of the reporting date.
※ The amount approved at shareholders’ meeting is the remuneration limit for executive directors according to the Article 388 of the
Korean Commercial Act. It includes compensation for directors who retired this fiscal year or in the past years.
(2) Remuneration Paid
Number
of Persons
(Unit: KRW million)
Average remuneration
Note
per Director
Total amount of
remuneration
Executive Directors
4
21,543
5,386
-
Independent Directors
2
86
43
-
Audit Committee member or Auditor
3
140
47
-
Total
9
21,769
-
-
※ Number of persons is as of the reporting date.
※ The total amount is the income based on Income Tax Law that incumbent or retired executive directors, independent directors, and
members of audit committee in the fiscal year received as executives according to the Article 159 of the Financial Investment
Services and Capital Markets Act and the Article 168 of the enforcement decree of the same law.
※ Average remuneration per Director was calculated by dividing total remuneration by annual average number of persons.
※ There is no recognized expenses (compensation expenses) in this term from granting stock option.
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3. Remuneration for individual executives
(1) Summary
(Unit: KRW million)
Total amount of
remuneration
Remuneration not included
in total amount
Name
position
Oh-Hyun Kwon
CEO
5,374
-
Boo-Keun Yoon
CEO
2,886
-
Jong-Kyun Shin
CEO
11,345
-
Sang-Hoon Lee
CFO
1,938
-
※ Total amount of compensation for each individual is a sum of earned, retirement, and other related incomes based on the Income
Tax Law that incumbent or retired executive directors, independent directors, and members of audit committee in the fiscal year
received as executives according to the Article 159 of the Financial Investment Services and Capital Markets Act and the Article
168 of the enforcement decree of the same law.
(2) Criteria and methodology
Criteria and methodology

CEO
Oh-Hyun Kwon


CEO
Boo-Keun Yoon

Total compensation of KRW 5,374 million
– Earned Income
•
Salary: KRW 1,042 million (consists of monthly wage)
•
Bonus: KRW 3,598 million (consists of New Year’s bonus, long-term incentive)
•
Profit from exercising stock option : n/a
•
Other earned income: KRW 734 million
– Retirement Income: n/a
– Other Income: n/a
Compensation criteria and calculation method
– Salary: According to internal regulation for executive compensation (Board resolution)
– Bonus: According to internal regulation for executive compensation (Board resolution)
•
New Year’s bonus: 100% of monthly wage
•
Long-term incentive: According to executive long-term incentive rules (Board resolution)
– Other earned income: According to executive treatment rules (Board resolution)
•
Consists of a special bonus (one-off) and fringe benefit
Total compensation of KRW 2,886 million
– Earned Income
•
Salary: KRW 864 million (consists of monthly wage)
•
Bonus: KRW 1,392 million (consists of New Year’s bonus, long-term incentive)
•
Profit from exercising stock option : n/a
•
Other earned income: KRW 630 million
– Retirement Income: n/a
– Other Income: n/a
Compensation criteria and calculation method
– Salary: According to internal regulation for executive compensation (Board resolution)
– Bonus: According to internal regulation for executive compensation (Board resolution)
•
New Year’s bonus: 100% of monthly wage
•
Long-term incentive: According to executive long-term incentive rules (Board resolution)
– Other earned income: According to executive treatment rules (Board resolution)
•
Consists of a special bonus (one-off) and fringe benefit
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Criteria and methodology

CEO
Jong-Kyun Shin


CFO
Sang-Hoon Lee

Total compensation of KRW 11,345 million
– Earned Income
•
Salary: KRW 864 million (consists of monthly wage)
•
Bonus: KRW 1,392 million (consists of New Year’s bonus, long-term incentive)
•
Profit from exercising stock option : n/a
•
Other earned income: KRW 9,089 million
– Retirement Income: n/a
– Other Income: n/a
Compensation criteria and calculation method
– Salary: According to internal regulation for executive compensation (Board resolution)
– Bonus: According to internal regulation for executive compensation (Board resolution)
•
New Year’s bonus: 100% of monthly wage
•
Long-term incentive: According to executive long-term incentive rules (Board resolution)
– Other earned income: According to executive treatment rules (Board resolution)
•
Consists of a special bonus (one-off) and fringe benefit
Total compensation of KRW 1,938 million
– Earned Income
•
Salary: KRW 562 million (consists of monthly wage)
•
Bonus: KRW 962 million (consists of New Year’s bonus, long-term incentive)
•
Profits from exercising stock option : n/a
•
Other earned income: KRW 414 million
– Retirement Income: n/a
– Other Income: n/a
Compensation criteria and calculation method
– Salary: According to internal regulation for executive compensation (Board resolution)
– Bonus: According to internal regulation for executive compensation (Board resolution)
•
New Year’s bonus: 100% of monthly wage
•
Long-term incentive: According to executive long-term incentive rules (Board resolution)
– Other earned income: According to executive treatment rules (Board resolution)
•
Consists of a special bonus (one-off) and fringe benefit
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B. Stock Options Granted and Exercised
There have been no stock options granted to, or exercised by, the executive BOD or Audit Committee members during the
reporting period.
(1) Stock options granted to non-registered executives
As at June 30, 2014, the accumulated weighted average exercise price of outstanding stock options is KRW 606,700.
[Weighted average exercise price = Sum of (no. of unexercised stocks per period x exercise amount per period) / total no.
of unexercised stocks]
[As of June 30, 2014]
(Unit: KRW, shares)
Method
Type of
stock
Kyung-Hoon Unregistered
Apr 16, 2004
Kang
executive
Treasury
share
Common
Myung-Soo
Kim
Unregistered
Apr 16, 2004
executive
Treasury
share
Seok-ki Kim
Unregistered
Apr 16, 2004
executive
Seok-Pil Kim
Grantee
Relationship
Date
Changes
Grant
Exercise
Cancel
Unexercised
Exercise
period
Exercise
price
4,000
3,924
76
0
'06.4.17~
'14.4.16
580,300
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Haeng-Il Kim
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Hyuk-Cheol
Kim
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Byung-Dae
Park
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Seung-Kun
Park
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Sang-Jo Ban
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Jae-Hyun
Seong
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Hak-Kyung
Sung
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Byung-Se So
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Seong-Won
Song
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Soon-Seon
Sim
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Wong-Tong
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Young-Hoon Unregistered
Apr 16, 2004
Um
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Moon-Kyun
Woo
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Ki-Ok Lee
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Ki-Woong
Lee
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Sang-Cheol
Lee
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Samsung Electronics 2014 Half Year Report
104 / 153
Grantee
Relationship
Date
Method
Type of
stock
Changes
Grant
Exercise
Cancel
Unexercised
Exercise
period
Exercise
price
Jae-Hyung
Lee
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Chung-Ki
Jang
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
30,000
29,426
574
0
'06.4.17~
'14.4.16
580,300
Joon-Young
Jeon
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Keum-Yong
Jeong
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
4,000
3,924
76
0
'06.4.17~
'14.4.16
580,300
Woo-In
Jeong
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Eun-Seung
Jeong
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Seung-Hwan Unregistered
Apr 16, 2004
Cho
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
In-Soo Cho
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Jae-Moon
Cho
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Seung-Cheol Unregistered
Apr 16, 2004
Choi
executive
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
Young-Jun
Choi
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
4,000
3,924
76
0
'06.4.17~
'14.4.16
580,300
In-Kwon Choi
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Jeong-Hyuk
Choi
Unregistered
Apr 16, 2004
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Myung-Seob Unregistered
Apr 16, 2004
Han
executive
Treasury
share
Common
5,000
4,905
95
0
'06.4.17~
'14.4.16
580,300
Treasury
share
Common
3,500
3,434
66
0
'06.4.17~
'14.4.16
580,300
580,300
Deuk-Kyu
Hwang
Unregistered
Apr 16, 2004
executive
Kyung-Do
Kim and
other 83
-
Apr 16, 2004
Treasury
share
Common
409,500
359,867
49,633
0
'06.4.17~
'14.4.16
Total
-
-
-
-
590,000
536,939
53,061
0
-
-
※ The change in number of shares granted reflects the cancellation of share grants according to Company’s internal revocation policy
and decline of earnings in 2004.
※ As of June 30, 2014, the closing price was KRW 1,322,000. ‘Relationship’ is as of the reporting date (June 30, 2014).
[As of June 30, 2014]
(Unit: KRW, shares)
Grantee
Relationship
Date
Young-Soo
Kwak
and
other 1
-
Dec 20, 2005
Method
Treasury
share
Type of
stock
Common
Changes
Grant
10,000
Exercise
5,000
Cancel
-
Unexercised
Exercise
period
5,000
'07.12.21~
’15.12.20
Exercise
price
606,700
※ As of June 30, 2014, the closing price was KRW 1,322,000. ‘Relationship’ is as of the reporting date (June 30, 2014).
Samsung Electronics 2014 Half Year Report
105 / 153
VII. Related Party Transactions
1. Credit Offerings for Affiliates and Subsidiaries
A. Debt Guarantee of Obligations (as of June 30, 2014)
- Domestic:
N/A
- Overseas:
(Unit: USD thousand)
Company
Relationship
Creditor
Guarantee Expiry
Date
Transactions
Beginning of
period
Increase
Decrease
Limit of
Guarantee
End of period
SEA
Subsidiary
SMBC, etc.
2017-04-10
2,840,000
0
1,340,000
1,500,000
2,930,000
SECA
Subsidiary
Nova Scotia
2014-10-10
0
0
0
0
15,000
SEM
Subsidiary
Santander, etc.
2015-06-13
314,620
0
215,932
98,688
536,000
SAMCOL
Subsidiary
Citibank, etc.
2015-06-13
34,050
4,730
0
38,780
137,000
SEDA
Subsidiary
HSBC, etc.
2015-06-13
257,366
0
245,782
11,584
1,110,000
SECH
Subsidiary
Citibank, etc.
2015-06-13
49,400
32,196
0
81,596
168,000
SEPR
Subsidiary
BBVA, etc.
2015-06-13
63,688
0
16,072
47,616
210,000
SELA
Subsidiary
Citibank
2014-12-16
0
0
0
0
40,000
SEEH
Subsidiary
HSBC, etc.
2015-06-13
0
0
0
0
970,000
SSA
Subsidiary
Citibank, etc.
2015-06-13
64,729
58,193
0
122,922
335,000
SEMRC
Subsidiary
SocGen, etc.
2014-12-16
22,157
17,670
0
39,827
110,000
SETK
Subsidiary
BTMU, etc.
2015-06-13
150,784
55,191
0
205,975
370,000
SERK
Subsidiary
BNP, etc.
2015-06-28
0
0
0
0
375,000
SEI
Subsidiary
Intesa
2014-10-31
550
0
550
0
0
SECE
Subsidiary
Citibank, etc.
2015-06-13
10,400
0
10,400
0
90,000
SEUC
Subsidiary
Credit Agricole, etc.
2015-06-13
16,920
0
16,920
0
175,000
SELV
Subsidiary
Citibank
2014-12-16
0
0
0
0
10,000
SAPL
Subsidiary
BOA, etc.
2015-06-13
0
0
0
0
504,467
SEV
Subsidiary
SCB
2014-11-08
0
0
0
0
15,000
SAVINA
Subsidiary
BTMU, etc.
2014-11-08
0
0
0
0
90,000
SEEG
Subsidiary
HSBC
2014-06-13
3,000
0
3,000
0
0
SEPCO
Subsidiary
Citibank, etc.
2014-12-16
54,225
0
13,692
40,533
40,533
SET
Subsidiary
SCB, etc.
2014-11-08
0
0
0
0
100,000
SEIN
Subsidiary
BTMU, etc.
2014-11-08
16,400
64,608
0
81,008
140,000
STIN
Subsidiary
BTMU, etc.
2014-11-08
0
0
0
0
40,000
SCIC
Subsidiary
HSBC, etc.
2015-06-13
0
0
0
0
200,000
SCS
Subsidiary
Korea Exchange Bank
2015-01-13
0
400,000
0
400,000
400,000
SJC
Subsidiary
Mizuho Bank, etc.
2015-05-31
285,600
78,763
206,837
694,000
SRJ
Subsidiary
SMBC
2016-02-28
26,085
1,435
24,650
24,650
SEDAM
Subsidiary
Citibank, etc.
2015-06-13
54,315
186,237
0
240,552
366,000
SME
Subsidiary
SCB
2014-11-08
0
0
0
0
120,000
4,264,289
818,825
1,942,546
3,140,568
10,315,650
Total
Samsung Electronics 2014 Half Year Report
106 / 153
Other than the guarantee obligations presented above, the Company provides payment guarantees of KRW 19,267 million
(HUF 4.32 billion) to SEH (Samsung Electronics Hungarian) in Hungary to guarantee fulfillment of an investment
incentive contract with the Hungarian government.
The Company requires BOD approval for individual guarantees exceeding 2.5% of equity capital. When the guarantee
amount is between 0.1% and 2.5%, the approval decision is delegated to the Management Committee.
B. Purchase and Sales of Securities
(Unit: KRW million)
Changes
Company
Relationship
Samsung
Asset
Management
Affiliate
Securities
Type
Beneficiary
certificate
Purchase
1,250,000
Sale
Total
1,250,000
2,500,000
Profit &
Loss
16,077
Balance
1,257,839
Note
Asset management
※ Profit and loss of beneficiary certificate is based on gain from disposition.
Samsung Electronics 2014 Half Year Report
107 / 153
2. Purchase and Sales of Assets with Affiliates and Subsidiaries
During the first six month of 2014, the Company sold assets to affiliates including SCS (Samsung China Semiconductor
Co., Ltd.) for the purpose of increasing production capacity.
In addition, the Company purchased assets including facilities from affiliates to make domestic production more efficient.
(Unit: KRW million)
Company
Relationship
Purpose
Transaction Date
Date based on
Asset
Amount
SCS
Subsidiary
Asset sale
2014.06.08
Date of sale
Machinery, etc.
29,744
SAS
Subsidiary
Asset purchase
2014.05.20
Date of purchase
Machinery, etc.
17,351
SESS
Subsidiary
Asset
sale/purchase
2014.06.30
Date of sale/purchase
Machinery, etc.
4,793
SEV
Subsidiary
Asset sale/purchase
2014.06.19
Date of sale/purchase
Machinery, etc.
3,383
SEVT
Subsidiary
Asset sale
2014.05.26
Date of sale
Machinery, etc.
2,745
SII
Subsidiary
Asset sale/purchase
2014.06.09
Date of sale/purchase
Machinery, etc.
2,593
SDC
Subsidiary
Asset purchase
2014.02.01
Date of purchase
Intellectual property right, etc.
1,458
SESC
Subsidiary
Asset purchase
2014.04.18
Date of purchase
Machinery, etc.
950
SRC-Guangzhou
Subsidiary
Asset sale
2014.02.17
Date of sale
Machinery, etc.
879
SEMES
Subsidiary
Asset purchase
2014.05.30
Date of purchase
Machinery, etc.
808
TSST KOREA
Affiliate
Asset sale
2014.01.01
Date of sale
Intellectual property right, etc.
575
SSEC-E
Subsidiary
Asset sale
2014.02.01
Date of sale
Machinery, etc.
524
SSEC
Subsidiary
Asset sale
2014.03.21
Date of sale
Machinery, etc.
190
SEMCO
Affiliate
Asset sale
2014.06.23
Date of sale
Machinery, etc.
110
※ Transaction date: most recent transaction
3. Business Transactions with Affiliates and Subsidiaries
During the first six months of 2014, the Company had business transactions with affiliates STA (Samsung
Telecommunications America LLC.) and SEV(Samsung Electronics Vietnam Co., Ltd.) regarding HHP and network
equipment.
(Unit: KRW million)
Company
Relationship
Type of
Transaction
STA
Subsidiary
Sales/Purchases
2014.01 - 2014.06
Sales of HHP and Network
Equipment, etc.
9,490,730
SEV
Subsidiary
Sales/Purchases
2014.01 – 2014.06
Purchase of HHP and Home
Appliance, etc.
8,792,632
Date
Details
Samsung Electronics 2014 Half Year Report
Amount
108 / 153
4. Transactions with Stakeholders other than Affiliates and Subsidiaries
As at June 30, 2014, the Company’s total outstanding loan amount is KRW108.7 billion, which includes support for
partner companies for product competitiveness and mutual development as well as home loan and educational expenses
for employee welfare. In addition, the Company provides debt guarantees up to KRW 13.5 billion for employees’ loans
from financial institutions relating to housing rental.
(Unit: KRW million)
Loans
Company
Transaction
Relationship
Account title
Jeil Precision
Industrial, etc
Partner company
Dooil I&D, etc
Partner company and
employee
Total
Beginning of period
(January 1, 2014)
Increase
End of period
(June 30, 2014)
Decrease
Short-term
loans
30,977
2,019
3,424
29,572
Long-term loans
77,303
19,632
17,834
79,101
108,280
21,651
21,258
108,673
※ The amount shown above reflects present value of discounted debts, before accounting for bad debts.
Samsung Electronics 2014 Half Year Report
109 / 153
VIII. Other Information Related to Investment Protection
1. Public Disclosure
(A) Major management activities
Report date
Feb 7, 2011
Mar 4, 2011
Title
Report
Progress
Request for Revision of
Court’s Ruling on
Samsung Motors Case
Related to the agreement regarding court receivership of
Samsung Motors between 28 Samsung affiliates (including
Samsung Electronics) and creditors of Samsung Motors in
September 1999, the Samsung affiliates (including Samsung
Electronics) appealed the Court’s ruling of January 1, 2011,
against the case filed by the defendants (Creditors filed the
case on December 2005).
Filing of a lawsuit
Related to the agreement regarding court receivership of
Samsung Motors between 28 Samsung affiliates (including
Samsung Electronics) and creditors of Samsung Motors in
September 1999, creditors appealed the Court’s ruling of
January 1, 2011 regarding the dispute case filed by the
creditors on December 2005.
In progress
In progress
(The Company received on Mar 4, 2011 the petition
of appeal that the creditors of Samsung Motors
submitted on Feb 1, 2011)
2. Summary of Shareholder Meeting results
Date
Agenda
Results
FY2014 annual general meeting of
shareholders ('14.3.14)
1. Approval of Balance Sheet, Income Statement, and Statement of Appropriation of Retained
Earnings (Draft), etc. for FY2013
2. Approval of the limit on the remuneration for the Directors
Approved
1. Approval of Balance Sheet, Income Statement, and Statement of Appropriation of Retained
Earnings (Draft), etc. for FY2012
Approved
2. Appointment of Directors
2.1 : Appointment of Independent Directors
2.1.1: In-Ho Lee
2.1.2: Kwang-Soo Song
2.1.3: Eun-Mee Kim
Approved
FY2013 annual general meeting of
shareholders ('13.3.15)
Approved
2.2: Appointment of Executive Directors
2.2.1: Boo-Keun Yoon
2.2.2: Jong-Kyun Shin
2.2.3: Sang-Hoon Lee
2-3: Appointment of Members of Audit Committee
2.3.1: In-Ho Lee
2.3.2: Kwang-Soo Song
3. Approval of the limit on the remuneration for the Directors
FY2012 annual general meeting of
shareholders ('12.3.16)
Approved
1. Approval of Balance Sheet, Income Statement, and Statement of Appropriation of Retained
Earnings (Draft), etc. for FY2011
Approved
2. Appointment of Directors
2.1: Appointment of Independent Directors
2.2: Appointment of Executive Directors
2.3: Appointment of Members of Audit Committee
Approved
3. Approval of the limit on the remuneration for the Directors
Approved
Approved
4. LCD business spin-off
Samsung Electronics 2014 Half Year Report
110 / 153
3. Litigation
On December, 2005, based on the agreement entered on September 1999 with respect to Samsung Motor Inc.’s (“SMI”)
bankruptcy proceedings, SMI’s creditors (the “Creditors”) filed a civil action against Mr. Kun-Hee Lee, chairman of the
Company, and 28 Samsung Group affiliates including the Company under joint and several liability for failing to comply
with such agreement. Under the suit, the Creditors have sought KRW 2,450 billion for loss of principal on loans extended
to SMI and additional amounts for default interest. During the course of Samsung Life Insurance’s (“SLI”) Initial Public
Offering (“IPO”), its shares owned by the Creditors were disposed of, and the part of proceeds exceeding the par value of
KRW 70,000 was deposited into an escrow account (KRW 877.6 billion). Most of the claims with regards to the lawsuit
have been withdrawn. On January 11, 2011, the Seoul High Court ordered Samsung Group affiliates to pay to the
Creditors KRW 600 billion and penalties due to delay. In accordance with the Seoul High Court order, KRW 620.4 billion
(which includes penalties and interest owed) was paid to the Creditors from the funds held in escrow during January 2011.
Samsung Group affiliates and the Creditors appealed the Seoul High Court’s ruling to the Korean Supreme Court, and the
appeal is currently in progress.
As at the time of this disclosure, There are a number of on-going IP related litigations with Apple Inc. Regarding the
ongoing lawsuit in the U.S.A, on August 24, 2012, the jury determined that the Company partially infringed Apple’s
design and utility patent and should pay damages to Apple. On March 1, 2013, however, the Judge ordered a new trial for
a certain portion of the damages, ruling that it was originally miscalculated. On March 6, 2014, the Judge denied Apple's
bid for a permanent injunction against the Company and made a final judgment restating the total damages amount
determined by a jury verdict on November 21, 2013. The Company appealed the decision on the damages amount on
March 7, 2014, and the appeal is currently in progress. The final conclusion and the effect of the patent lawsuits with
Apple are uncertain as of the reporting date. In August 2014, the company and Apple Inc. reached an agreement to
withdraw suits held in countries other than U.S.A
As of June 30, 2014, there are multiple on-going lawsuits and civil damage claims by some overseas purchasers of TFTLCD panels, as well as investigations by regulatory authorities, in connection with the price fixing of LCD panels. These
lawsuits, claims and investigations were initiated prior to the spin-off of LCD business. The timing of payments related to
these matters is currently uncertain but our management believes that the ultimate resolution of such lawsuits, claims and
investigations would not materially affect the financial condition of the company.
In addition, during the normal course of business with numerous companies, the Company has been involved in various
claims, disputes, and investigations conducted by regulatory bodies. Although the outflow of resources and timing of these
matters are uncertain, the Company believes the outcome will not have a material impact on the financial condition of the
Company.
4. Guarantees
Refer to Commitments and Contingencies notes in the Separate and Consolidated Financial Statements
Samsung Electronics 2014 Half Year Report
111 / 153
5. Sanctions and Others
The Company paid a fine of KRW 1.602 billion on 7 August 2012 according to a corrective order resulting from the
violation of Article 8 (Prohibition of Unreasonable Cancellation of Entrustment) in pursuant to the Fair Transactions in
Subcontracting Act. On 21 March 2012, the Company paid a fine of KRW 12.907 billion according to a corrective order
resulting from the violating of Article 19 (Prohibition of Unfair Collaborative Acts) of the Monopoly Regulation and Fair
Trade Act from the Fair Trade Commission relating to sales of washing machines, flat panel TVs and notebook PCs.
The Company is still engaged in a lawsuit after being issued a corrective order and fine (KRW 14.126 billion) on July 10,
2012 for violating Article 23 (Prohibition of Unfair Trade Practices) of the Monopoly Regulation and Fair Trade Act. In
relation to the same lawsuit, the Company and two executives (one incumbent, senior vice president at the time and one
retired, vice president at the time) were ordered to pay a fine (the Company: KRW 300 million, two executives: 50 million
each) on Mar 12, 2012, and have subsequently paid.
The Company was ordered to pay a fine (KRW 26 million) on Jan 13, 2014 from the Fair Trade Commission for violating
Article 4 (Announcement of Critical Information and Integrated Notification) of the Act on Fair Labeling and Advertising),
and this has been subsequently paid.
For the hydrofluoric acid gas leak, the Company was ordered to pay a fine (KRW 267 million) on Mar 7, 2013, for
violating the Occupational Safety and Health Act, and have subsequently paid. The Company was issued an improvement
order and ordered to pay a fine (KRW 2.2 million) on Apr 1, 2013, for violating the Toxic Chemicals Control Center.
Accordingly, the Company reported compliance with the improvement order and subsequently paid the fine.
The Company was ordered and paid a fine of KRW 166.7 million for not reporting imported chemical substances in
August 2013, when the Ministry of Environment and Gyeong-Gi province conducted a joint inspection.
The Company is consistently providing education to executives and employees to promote fair competition that is up to
global standards, and operating various programs for compliance. The Company reinforced internal controls to comply
with relevant laws on environmental safety and provides related education for executives and employees.
6. Return of Short-Swing Profits
The Company has not received any notification of short-swing profits from the Securities & Futures Commission (the
Governor of the Financial Supervisory Service) over the last three years and until the date of this report.
7. Subsequent Events
On July 1, 2014, Samsung SDI merged with Cheil Industries and Samsung Everland, related parties of the Company, and
subsequently changed its name to Cheil Industries, Inc.
Samsung Electronics 2014 Half Year Report
112 / 153
8. Acquisition and Divestments
A. Acquisitions and divestments
[Samsung LED Merge]
ㆍ Type: Merger
ㆍ Purpose: Efficiency and profitability of LED business
ㆍ Board Decision Date: 26 December 2011
ㆍ Board Approval Date: 20 February 2012
(※ The Board of Directors approved the merger in lieu of the Annual Shareholder Meeting.)
ㆍ Merger Date: April 1, 2012
Acquiring Company
Samsung Electronics Co., Ltd.
Predecessor Company
Samsung LED Co., Ltd.
Address
416, Maetan-dong, Yeongtong-gu,
Suwon-si, Gyeonggi-do, Korea
San 24, Nongseo-dong, Giheung-gu, Yongin-si, Gyeonggi-do, Korea
President
Rate of Merger
Gee-sung Choi
1
Nam-sung Cho
0.0134934
Name
[LCD Business Spin-off]
ㆍ Type: Physical division (establishment of Samsung Display Co., Ltd)
ㆍ Purpose: Efficiency of LCD business and profitability
ㆍ Approval Date (At the Annual Shareholder Meeting): March 16, 2012
ㆍ Spin-off Date: April 1, 2012
[Samsung Electronics Hainan Fiber Optics Korea Merge]
ㆍ Type: Merger
ㆍ Purpose: Efficiency and profitability of Camera module and Touchscreen
ㆍ Board Decision Date: September 13, 2012
ㆍ Board Approval Date: October 26, 2012
(※ The Board of Directors approved the merger in lieu of the Annual Shareholder Meeting.)
ㆍ Merger Date: 1 December 2012
Acquiring Company
Predecessor Company
Name
Samsung Electronics Co., Ltd.
Samsung Electronics Hainan Fiber Optics Korea Co., Ltd.
Address
129, Samsung-ro, Yeongtong-gu,
Suwon-si, Gyeonggi-do, Korea
94-1, Imsu-dong, Gumi-si, Gyeongsangbuk-do, Korea
President
Oh-Hyun Kwon
Phil-Young Kim
Merger Ratio
1
0.2056163
※ We acquired Hainan Fiber Optics Korea Corp. without issuance of new shares as the Company held 100% ownership of equity
Samsung Electronics 2014 Half Year Report
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B. Post Information
[Samsung LED]
(Unit: KRW million)
Year 2 (2012)
Predecessor
Company
Samsung
LED
Account
Forecast
Actual
Forecast Vs.
Reason for Difference
Actual Ratio
Revenue
2,381,405
1,587,265
33%
Operating
Profit
258,250
-54,283
121%
EBIT
234,507
-76,422
133%
IT market and lighting business stagnation
※ For Year 1 (2011), refer to the Audited Financial Statement of Samsung LED.
[Samsung Electronics Hainan Fiber Optics Korea]
(Unit: KRW million)
Year 1 (2012)
Predecessor
Company
SEHF-K
Account
Forecast
Actual
Forecast Vs.
Reason for Difference
Actual Ratio
Revenue
1,111,692
1,086,135
2%
Operating
Profit
33,366
5,121
85%
EBIT
31,517
1,008
97%
Decrease of profitability of Touch Screen
Panel Business
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9. Green Management
The Company is increasing acquisitions of “Green Technology Green Project Certifications” to follow the Low Carbon
Green Growth policy of the Korean government.
(Green Technology Green Project Certification)
In accordance with clause 2 of Article 32 of the Framework Act on Low Carbon Green Growth, the Company acquires
Green Technology Green Project Certification. Green technology development is a part of our Planet First strategy, which
aims for business activities that respect people and nature. Since the certification system was introduced in 2010, the
Company has secured 35 valid green certifications as of June 30, 2014. In addition, the Company has acquired 14 ‘Green
technology product certificates (362 models), for commercialized products. Meanwhile, the Company withdrew the
application for Giheung/Hwasung Campus to be re-designated as green company, and as of Apr 5, 2013, the application
was cancelled.
Certified Green Technology Green Projects as of June 30, 2014 are as follows:
Division
Business
No.
CE
Eco Bubble washing technology, etc.
IM
Membrane laminated air filter for telecommunication base transceiver stations;
Low power consumption cooling, heating, and controlling humidity, etc.
6
3-bit NAND Flash semiconductor design technology, etc.
5
Transparent LCD Display technology, etc.
1
Semiconductor
DS
Name of green technology and green projects
DP
23
Total
35
※ Headquarters basis only.
※ Refer to 『11. Other Information for Investment Decision Making (B. Environmental regulations)』 in 『II. Businesses Overview』
for greenhouse gas emission and energy use.
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IX. Auditor’s Report
1. Introduction
Samil PwC has reviewed the interim consolidated/separate statements of financial position of the Company as of June 30,
2014, and the related interim consolidated/separate statements of income and comprehensive income for the three and six
months ended June 30, 2014, and the interim consolidated/separate statements of changes in equity and cash flows for the
six months ended June 30, 2014. Nothing has come to attention that causes them to believe the accompanying interim
consolidated/separate financial statements are not presented fairly, in all material respects, in accordance with the K-IFRS
1034, Interim Financial Reporting. Samil PwC also conducted audits on the consolidated/separate statements of financial
position of the Company as of December 31, 2012 and 2013, and the related consolidated/separate statements of income,
comprehensive income, changes in equity and cash flows for the year then ended and expressed an unqualified opinion on
those financial statements. There are 150 subsidiaries as of June 30, 2014 and no auditors have changed for the
subsidiaries for the six months ended June 30, 2014.
<Review plan for six-month period ended June 30, 2014 >
Consolidated Financial
Statements
Separate Financial
Statements
Pre-Review
Review
2014.06.09 ~ 2014.06.27
2014.07.09 ~ 2014.08.08
2014.06.09 ~ 2014.06.27
2014.07.09 ~ 2014.08.08
<Audit Contract Description>
Fiscal Year
Auditor
Six-months ended
June 30, 2014
Samil PwC
Year ended
December 31, 2013
Samil PwC
(Unit: KRW million)
Description
Compensation
- Review of the interim consolidated/separate
financial statements
- Review of the interim consolidated/separate
financial statements
Total Hours
1,167
13,415
3,840
44,702
3,660
43,572
- Audit on consolidated/separate financial statements
Year ended
December 31, 2012
Samil PwC
- Review of the interim consolidated/separate
financial statements
- Audit on consolidated/separate financial statements
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Samil PwC has performed non-audit services and has been paid KRW 2,442 million from the Company for the six months
ended June 30, 2014.
<Non-Audit Service Contract Description>
(Unit: KRW million)
Fiscal Year
Six-months
ended June
Contract Date
Non-audit Service Description
Period for Service
September 2013
Incorporation, M&A and Divestiture Advisory
2014.01~2014.06
966
August 2013
Tax Advisory
2014.01~2014.06
533
October 2013
Process Improvement Advisory
2014.01~2014.06
646
30, 2014
Compensation
Others
297
Subtotal
Year ended
December
2,442
November 2012
Incorporation, M&A and Divestiture Advisory
2013.01~2013.12
2,466
August 2012
Tax Advisory
2013.01~2013.12
2,272
June 2012
Process Improvement Advisory
2013.01~2013.12
1,896
31, 2013
Others
1,573
Subtotal
Year ended
8,207
January 2012
Incorporation and M&A Advisory
2012.01~2012.12
3,520
January 2011
Tax Advisory
2012.01~2012.12
3,995
November 2011
IP Advisory
2012.01~2012.12
1,287
January 2012
Process Improvement Advisory
2012.01~2012.12
2,815
December
31, 2012
Others
802
Subtotal
12,419
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X. Financial Statements
INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In millions of Korean Won, in thousands of U.S dollars(refer to XI.-28))
June 30,
2014
KRW
December 31,
2013
KRW
June 30,
2014
USD
December 31,
2013
USD
Assets
Current Assets
Cash and cash equivalents
Short-term financial instruments
Available-for-sale financial assets
Trade and other receivables
Advances
Prepaid expenses
Inventories
Other current assets
Assets held for sale
Total current assets
16,057,574
41,692,883
2,912,533
26,647,897
1,744,336
3,379,484
18,276,064
2,088,899
112,799,670
16,284,780
36,722,702
1,488,527
27,875,934
1,928,188
2,472,950
19,134,868
2,135,589
2,716,733
110,760,271
15,829,627
41,101,028
2,871,188
26,269,615
1,719,574
3,331,510
18,016,625
2,059,246
111,198,413
16,053,608
36,201,402
1,467,396
27,480,219
1,900,816
2,437,845
18,863,237
2,105,274
2,678,167
109,187,964
Non-current assets
Available-for-sale financial assets
Associates and joint ventures
Property, plant and equipment
Intangible assets
Long-term prepaid expenses
Deferred income tax assets
Other non-current assets
Total assets
10,644,223
6,904,622
75,593,653
4,220,289
5,398,121
4,814,124
4,348,372
224,723,074
6,238,380
6,422,292
75,496,388
3,980,600
3,465,783
4,621,780
3,089,524
214,075,018
10,493,122
6,806,607
74,520,557
4,160,380
5,321,492
4,745,785
4,286,643
221,532,999
6,149,823
6,331,124
74,424,673
3,924,093
3,416,584
4,556,171
3,045,666
211,036,098
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INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In millions of Korean Won, in thousands of U.S dollars(refer to XI.-28))
June 30,
2014
KRW
Liabilities and Equity
Current liabilities
Trade and other payables
Short-term borrowings
Advances received
Withholdings
Accrued expenses
Income tax payable
Current portion of long-term
borrowings and debentures
Provisions
Other current liabilities
Total current liabilities
Non-current liabilities
Debentures
Long-term borrowings
Long-term trade and other payables
Net defined benefit liabilities
Deferred income tax liabilities
Provisions
Other non-current liabilities
Total liabilities
December 31,
2013
KRW
June 30,
2014
USD
December 31,
2013
USD
16,239,597
9,325,033
1,279,092
1,014,888
8,966,410
4,304,736
17,633,705
6,438,517
1,706,313
1,176,046
11,344,530
3,386,018
16,009,066
9,192,659
1,260,935
1,000,481
8,839,127
4,243,628
17,383,384
6,347,118
1,682,091
1,159,351
11,183,488
3,337,951
1,163,288
7,047,572
484,836
49,825,452
2,425,831
6,736,476
467,973
51,315,409
1,146,774
6,947,528
477,953
49,118,151
2,391,395
6,640,848
461,331
50,586,957
1,269,911
2,214,013
2,568,565
2,466,119
4,995,349
594,209
1,275,992
65,209,610
1,311,068
985,117
1,053,756
1,854,902
6,012,371
460,924
1,065,461
64,059,008
1,251,884
2,182,584
2,532,103
2,431,111
4,924,437
585,774
1,257,878
64,283,922
1,292,457
971,133
1,038,797
1,828,571
5,927,022
454,381
1,050,335
63,149,653
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INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In millions of Korean Won, in thousands of U.S dollars(refer to XI.-28))
June 30,
2014
KRW
December 31,
2013
KRW
June 30,
2014
USD
December 31,
2013
USD
Equity attributable to owners
of the parent
Preferred stock
Common stock
Share premium
Retained earnings
Other components of equity
119,467
778,047
4,403,893
160,188,962
(11,671,599)
119,467
778,047
4,403,893
148,600,282
(9,459,073)
117,771
767,002
4,341,377
157,914,986
(11,505,913)
117,771
767,002
4,341,377
146,490,814
(9,324,795)
Non-controlling interests
Total equity
5,694,694
159,513,464
5,573,394
150,016,010
5,613,854
157,249,077
5,494,276
147,886,445
Total liabilities and equity
224,723,074
214,075,018
221,532,999
211,036,098
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INTERIM CONSOLIDATED STATEMENTS OF INCOME
(In millions of Korean Won, in thousands of U.S dollars(refer to XI.-28))
For the six-months ended June 30,
For the three-months ended June 30,
2014
KRW
2013
KRW
2014
USD
2013
USD
2014
KRW
2013
KRW
2014
USD
2013
USD
Revenue
Cost of sales
52,353,229
31,671,819
57,464,448
34,341,419
51,610,044
31,222,219
56,648,707
33,853,923
106,028,555
63,721,334
110,332,543
65,720,774
104,523,418
62,816,772
108,766,308
64,787,829
Gross profit
Selling, general and administrative
expenses
Operating profit
Other non-operating income
Other non-operating expense
Share of profit of
associates and joint ventures
Finance income
Finance expense
Profit before income tax
Income tax expense
Profit for the period
Profit attributable to owners of the parent
Profit attributable to non-controlling
interests
Earnings per share for profit
attributable to the owners of the parent
(in Korean Won, in US dollars)
- Basic
- Diluted
20,681,410
23,123,029
20,387,825
22,794,784
42,307,221
44,611,769
41,706,646
43,978,479
13,494,087
7,187,323
587,936
336,141
13,592,346
9,530,683
360,986
273,207
13,302,530
7,085,295
579,590
331,369
13,399,395
9,395,389
355,862
269,329
26,631,099
15,676,122
2,499,532
1,286,112
26,301,628
18,310,141
577,152
588,522
26,253,056
15,453,590
2,464,050
1,267,855
25,928,261
18,050,218
568,959
580,168
64,005
2,236,805
1,954,822
7,785,106
1,534,325
6,250,781
6,176,506
212,315
2,331,043
2,333,992
9,827,828
2,054,017
7,773,811
7,575,016
63,096
2,205,052
1,927,072
7,674,592
1,512,544
6,162,048
6,088,827
209,301
2,297,952
2,300,860
9,688,315
2,024,858
7,663,457
7,467,484
94,141
3,687,096
3,236,703
17,434,076
3,608,854
13,825,222
13,661,186
390,251
4,258,664
4,074,421
18,873,265
3,944,513
14,928,752
14,551,934
92,805
3,634,756
3,190,756
17,186,590
3,557,625
13,628,965
13,467,257
384,711
4,198,210
4,016,582
18,605,348
3,888,518
14,716,830
14,345,361
74,275
198,795
73,221
195,973
164,036
376,818
161,708
371,469
40,953
40,952
50,254
50,236
40.37
40.37
49.54
49.52
90,593
90,584
96,546
96,506
89.31
89.30
95.18
95.14
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INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions of Korean Won, in thousands of U.S dollars(refer to XI.-28))
For the three-months ended June 30,
Profit for the period
Other comprehensive income
Items not to be reclassified
subsequently to profit or loss :
Remeasurement of the net defined
benefit liabilities, net of tax
Items to be reclassified
subsequently to profit or loss :
Changes in value of available-for-sale
financial assets, net of tax
Share of other comprehensive
income(loss) of associates and joint
ventures, net of tax
Foreign currency translation, net of tax
Other comprehensive income(loss)
for the period, net of tax
Total consolidated comprehensive
income for the period
Consolidated comprehensive income
attributable to :
Owners of the parent
Non-controlling interests
2014
USD
2013
USD
For the six-months ended June 30,
2014
KRW
2013
KRW
2014
KRW
2013
KRW
2014
USD
6,250,781
7,773,811
6,162,048
7,663,457
13,825,222
14,928,752
13,628,965
14,716,830
(15,581)
(8,393)
(15,360)
(8,274)
(20,607)
(16,991)
(20,314)
(16,750)
(220,086)
574,138
(216,962)
565,988
(269,944)
838,906
(266,112)
826,997
(57,892)
(2,028,209)
(13,984)
1,018,573
(57,070)
(1,999,418)
(13,785)
1,004,113
(83,917)
(1,904,929)
1,389
1,972,908
(82,726)
(1,877,888)
1,369
1,944,902
(2,321,768)
1,570,334
(2,288,810)
1,548,042
(2,279,397)
2,796,212
(2,247,040)
2,756,518
3,929,013
9,344,145
3,873,238
9,211,499
11,545,825
17,724,964
11,381,925
17,473,348
3,914,659
14,354
9,103,315
240,830
3,859,088
14,150
8,974,088
237,411
11,423,127
122,698
17,269,552
455,412
11,260,969
120,956
17,024,401
448,947
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USD
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INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In millions of Korean won)
2013 KRW
Preferred
stock
Common
stock
Other
components
of equity
Share
premium
Equity
attributable
to owners of
the parent
Retained
earnings
Noncontrolling
interests
Total
119,467
-
778,047
-
4,403,893
-
(8,193,044)
-
119,985,689
14,551,934
117,094,052
14,551,934
4,386,154
376,818
121,480,206
14,928,752
-
-
-
836,943
-
836,943
1,963
838,906
-
-
-
1,278
-
1,278
111
1,389
-
-
-
1,896,125
-
1,896,125
76,783
1,972,908
-
-
-
(16,728)
-
(16,728)
(263)
(16,991)
Total comprehensive income
-
-
-
2,717,618
14,551,934
17,269,552
455,412
17,724,964
Dividends
Capital transaction under common
control
Effect of business combination
Disposal of treasury stock
Stock option activities
Others
Total transactions with owners
-
-
-
-
(1,131,255)
(1,131,255)
(588)
(1,131,843)
-
-
-
2,176
16,719
(4,771)
(3)
14,121
(1,131,255)
2,176
16,719
(4,771)
(3)
(1,117,134)
290,918
894
278
291,502
293,094
894
16,719
(4,771)
275
(825,632)
119,467
778,047
4,403,893
(5,461,305)
133,406,368
133,246,470
5,133,068
138,379,538
Balance as of January 1, 2013
Profit for the period
Changes in value of available-for-sale
financial assets, net of tax
Share of other comprehensive income
of associates and joint ventures, net
of tax
Foreign currency translation,
net of tax
Remeasurement of net defined benefit
liabilities, net of tax
Balance as of June 30, 2013
-
The accompanying notes are an integral part of these consolidated financial statements.
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INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands of US dollars(refer to XI.-28))
2013 USD
Preferred
stock
Common
stock
Other
components
of equity
Share
premium
Equity
attributable
to owners of
the parent
Retained
earnings
Noncontrolling
interests
Total
117,771
-
767,002
-
4,341,377
-
(8,076,739)
-
118,282,423
14,345,361
115,431,834
14,345,361
4,323,890
371,469
119,755,724
14,716,830
-
-
-
825,062
-
825,062
1,935
826,997
-
-
-
1,260
-
1,260
109
1,369
-
-
-
1,869,208
-
1,869,208
75,693
1,944,901
-
-
-
(16,491)
-
(16,491)
(259)
(16,750)
Total comprehensive income
-
-
-
2,679,039
14,345,361
17,024,400
448,947
17,473,347
Dividends
Capital transaction under common
control
Effect of business combination
Disposal of treasury stock
Stock option activities
Others
Total transactions with owners
-
-
-
-
(1,115,196)
(1,115,196)
(580)
(1,115,776)
-
-
-
2,145
16,482
(4,703)
(3)
13,921
(1,115,196)
2,145
16,482
(4,703)
(3)
(1,101,275)
286,788
881
274
287,363
288,933
881
16,482
(4,703)
271
(813,912)
117,771
767,002
4,341,377
(5,383,779)
131,512,588
131,354,959
5,060,200
136,415,159
Balance as of January 1, 2013
Profit for the period
Changes in value of available-for-sale
financial assets, net of tax
Share of other comprehensive income
of associates and joint ventures, net
of tax
Foreign currency translation,
net of tax
Remeasurement of net defined benefit
liabilities, net of tax
Balance as of June 30, 2013
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INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In millions of Korean won)
2014 KRW
Preferred
stock
Common
stock
Other
components
of equity
Share
premium
Equity
attributable
to owners of
the parent
Retained
earnings
Noncontrolling
interests
Total
119,467
-
778,047
-
4,403,893
-
(9,459,073)
-
148,600,282
13,661,186
144,442,616
13,661,186
5,573,394
164,036
150,016,010
13,825,222
-
-
-
(298,005)
-
(298,005)
28,061
(269,944)
-
-
-
(83,499)
-
(83,499)
(418)
(83,917)
-
-
-
(1,833,893)
-
(1,833,893)
(71,036)
(1,904,929)
-
-
-
(22,662)
-
(22,662)
2,055
(20,607)
Total comprehensive income (loss)
-
-
-
(2,238,059)
13,661,186
11,423,127
122,698
11,545,825
Dividends
Capital transaction under common
control
Effect of business combination
Disposal of treasury stock
Stock option activities
Others
Total transactions with owners
-
-
-
-
(2,081,603)
(2,081,603)
(458)
(2,082,061)
-
-
-
(158)
32,763
(9,436)
2,364
25,533
9,097
(2,072,506)
(158)
32,763
(9,436)
11,461
(2,046,973)
(731)
(124)
(85)
(1,398)
(889)
(124)
32,763
(9,436)
11,376
(2,048,371)
119,467
778,047
4,403,893
(11,671,599)
160,188,962
153,818,770
5,694,694
159,513,464
Balance as of January 1, 2014
Profit for the period
Changes in value of available-for-sale
financial assets, net of tax
Share of other comprehensive
income(loss) of associates and joint
ventures, net of tax
Foreign currency translation,
net of tax
Remeasurement of net defined benefit
liabilities, net of tax
Balance as of June 30, 2014
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INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands of US dollars(refer to XI.-28))
2014 USD
Preferred
stock
Common
stock
Other
components
of equity
Share
premium
Equity
attributable
to owners of
the parent
Retained
earnings
Noncontrolling
interests
Total
117,771
-
767,002
-
4,341,377
-
(9,324,795)
-
146,490,814
13,467,257
142,392,169
13,467,257
5,494,276
161,707
147,886,445
13,628,964
-
-
-
(293,775)
-
(293,775)
27,663
(266,112)
-
-
-
(82,314)
-
(82,314)
(412)
(82,726)
-
-
-
(1,807,860)
-
(1,807,860)
(70,028)
(1,877,888)
-
-
-
(22,340)
-
(22,340)
2,026
(20,314)
Total comprehensive income (loss)
-
-
-
(2,206,289)
13,467,257
11,260,968
120,956
11,381,924
Dividends
Capital transaction under common
control
Changes in consolidated entities
Disposal of treasury stock
Stock option activities
Others
Total transactions with owners
-
-
-
-
(2,052,053)
(2,052,053)
(451)
(2,052,504)
-
-
-
(156)
32,298
(9,302)
2,331
25,171
8,968
(2,043,085)
(156)
32,298
(9,302)
11,299
(2,017,914)
(721)
(122)
(84)
(1,378)
(877)
(122)
32,298
(9,302)
11,215
(2,019,292)
117,771
767,002
4,341,377
(11,505,913)
157,914,986
151,635,223
5,613,854
157,249,077
Balance as of January 1, 2014
Profit for the period
Changes in value of available-for-sale
financial assets, net of tax
Share of other comprehensive income
(loss) of associates and joint
ventures, net of tax
Foreign currency translation,
net of tax
Remeasurement of net defined benefit
liabilities, net of tax
Balance as of June 30, 2014
Samsung Electronics 2014 Half Year Report
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INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of Korean Won, in thousands of U.S dollars (refer to XI.-28))
Cash flows from operating activities
2014
2013
2014
2013
KRW
KRW
USD
USD
Profit for the period
13,825,222
14,928,752
13,628,965
14,716,830
Adjustments
11,442,741
12,276,969
11,280,305
12,102,690
Changes in assets and liabilities arising
from operating activities
(1,877,559)
(2,349,434)
(1,850,906)
(2,316,082)
Cash flows from operating activities
23,390,404
24,856,287
23,058,364
24,503,438
711,648
464,986
701,546
458,385
Interest paid
(218,750)
(230,983)
(215,646)
(227,704)
Dividend received
1,428,764
262,730
1,408,482
259,000
(4,184,614)
(3,935,076)
(4,125,211)
(3,879,215)
21,127,452
21,417,944
20,827,535
21,113,904
(5,204,979)
(10,023,279)
(5,131,091)
(9,880,993)
(457,203)
17,411
(450,713)
17,164
147,449
9,794
145,356
9,655
(5,714,917)
(299,355)
(5,633,790)
(295,105)
2,014,430
240
1,985,834
237
(570,867)
(21,034)
(562,763)
(20,735)
205,937
152,871
203,014
150,701
(10,616,583)
(8,873,039)
(10,465,874)
(8,747,081)
7,599
851
7,491
839
(510,658)
(454,324)
(503,409)
(447,875)
-
(167,155)
-
(164,782)
(1,075,189)
(1,202,037)
(1,059,927)
(1,184,975)
(21,774,981)
(20,859,056)
(21,465,872)
(20,562,950)
Interest received
Income tax paid
Net cash generated from operating
activities
Cash flows from investing activities
Net increase in short-term financial
instruments
Net decrease (increase) in short-term
available-for-sale financial assets
Proceeds from disposal of long-term
available-for-sale financial assets
Acquisition of long-term available-forsale financial assets
Proceeds from disposal of associates and
joint ventures
Acquisition of associates
and joint ventures
Disposal of property and equipment
Purchases of property and equipment
Disposal of intangible assets
Purchases of intangible assets
Cash outflows from business
combination
Others
Net cash used in investing activities
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INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of Korean Won, in thousands of U.S dollars(refer to XI.-28))
For the six-months ended June 30,
2014
2013
2014
2013
KRW
KRW
USD
USD
3,071,633
27,582
(54,493)
13,262
3,028,029
27,190
(53,719)
13,074
1,739,653
26,672
1,714,958
26,293
(1,655,995)
(2,084,004)
(1,332,557)
(1,134,535)
(1,632,487)
(2,054,420)
(1,313,641)
(1,118,430)
(489)
285,514
(482)
281,461
1,098,380
(2,196,137)
1,082,788
(2,164,962)
Effect of exchange rate changes
on cash and cash equivalents
(678,057)
770,312
(668,432)
759,378
Net decrease in cash and cash equivalents
(227,206)
(866,937)
(223,981)
(854,630)
Beginning of the period
16,284,780
18,791,460
16,053,608
18,524,704
End of the period
16,057,574
17,924,523
15,829,627
17,670,074
Cash flows from financing activities
Net increase(decrease)
in short-term borrowings
Disposal of treasury stock
Proceeds from long-term borrowings
and debentures
Repayment of long-term borrowings
and debentures
Payment of dividends
Net increase(decrease) in non-controlling
interests
Net cash generated(used) in financing
activities
Cash and cash equivalents
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1. Allowance for bad debt
The allowances for bad debts over the past 3 years are as follows:
1)
Bad debt allowance by account
(Unit: KRW million, %)
Period
June 30
2014
2013
2012
Account
Receivables Amount
Allowance Amount
Allowance (%)
Trade receivables
Short-term loans
Other receivables
Advances
24,718,169
4,864
2,226,288
1,747,727
285,313
73
11,247
3,391
1.2%
1.5%
0.5%
0.2%
Trade receivables
(Long-term)
43,875
298
0.7%
Other receivables
(Long-term)
18,921
49
0.3%
Advances
(Long-term)
203,103
793
0.4%
Long-term loans
150,400
825
0.5%
Total
29,113,347
301,989
1.0%
Trade receivables
Short-term loans
Other receivables
Advances
25,256,002
33,382
2,907,221
1,932,530
267,470
271
19,819
4,342
1.1%
0.8%
0.7%
0.2%
Trade receivables
(Long-term)
36,229
205
0.6%
Other receivables
(Long-term)
24,384
227
0.9%
Advances
(Long-term)
76,429
792
1.0%
Long-term loans
152,005
36,727
24.2%
Total
30,418,182
329,853
1.1%
Trade receivables
Short-term loans
Other receivables
Advances
24,138,022
60,843
2,815,696
1,676,804
276,787
675
2,335
2,376
1.1%
1.1%
0.1%
0.1%
Trade receivables
(Long-term)
30,405
-
0.0%
Other receivables
(Long-term)
18,491
260
1.4%
Advances
(Long-term)
85,843
793
0.9%
Long-term loans
166,689
643
0.4%
28,992,793
283,869
1.0%
Total
※ Receivables amount is based on net present value (Consolidated)
※ Presented in accordance with Korean International Financial Reporting Standards (“K-IFRS”)
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(2)
Allowance for Bad Debt (Roll Forward)
(Unit: KRW million)
June 30, 2014
2013
2012
1. Allowance for bad debts
(beginning balance)
329,853
283,869
259,161
44,751
17,833
53,433
45,545
20,393
55,592
794
2,560
2,159
-
-
-
16,887
63,817
78,141
301,989
329,853
283,869
2. Net Bad Debt Expense
(①－②±③)
① Bad Debt Expense
(Write-off)
② Bad Debt Recovered
③ Others
3. Bad debts expense
4. Allowance for bad debts
(Ending balance)
※ Based on consolidated financial statements.
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A. The guideline for Bad Debts Allowances
(1) Calculation of Bad Debts Allowances
 Bad Debts are calculated based on write-off experiences and future expected bad debts.
(2) Calculation method for write-off experience rate:
 Experience rate of write-off: the actual write-off rate for the average receivables balance of previous 3 years
 Future expected bad debts: Cases of debtor bankruptcy, compulsory execution, death, disappearance are reflected in
the bad debt allowance, ranging from 1% ~ 100% of the balance of trade-other receivable
[Bad Debt Allowance]
Situation
Rate of allowance
Dispute or Conflict
25%
Receivable through utilization of third party collection agency
50%
Receivable under litigation
75%
Customer filed or in the process of filing bankruptcy
100%
(3) Instruction: Write-off is recorded when trade receivables contain the following characteristics:
ㆍ Objective proof of bad debts, such as bankruptcy, compulsory execution, discontinuance of business, debtor’s death
or disappearance
ㆍ Legal action has failed or the right of collection is extinguished.
ㆍ When the collection agency gives as notice that collection is not possible.
ㆍ When the collateral is sold or insurance is received.
ㆍ The collection expenses exceed the amount of receivables.
B. The outstanding period of trade receivables
(Unit : KRW million)
Less than
6 months
Amount
6 months ~
1 year
1 year ~
3 years
More than
3 years
Total
24,720,219
17,714
14,484
9,627
24,762,044
Ratio
99.8%
0.1%
0.1%
0.0%
100.0%
* Receivables amount
on net present value (consolidated)
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2. Inventory
- The inventory status by division over the last three years is as follows:
(Unit: KRW million)
Division
Category
CE
1,868,910
Work In Process
81,926
73,876
72,375
Raw Material
1,595,265
1,435,023
1,468,295
Material In Transit
1,822,766
1,689,040
1,634,797
Total
5,419,018
5,125,723
5,044,377
Finished Goods
2,429,449
2,896,647
3,113,848
Work In Process
304,211
333,109
305,543
2,908,036
3,363,195
2,736,050
890,652
1,026,147
895,088
6,532,348
7,619,098
7,050,529
Finished Goods
914,185
1,219,189
1,317,615
Work In Process
3,319,414
3,022,125
2,461,713
Raw Material
358,642
351,646
486,166
Material In Transit
86,428
89,670
83,312
4,678,669
4,682,630
4,348,806
Finished Goods
446,717
553,108
460,600
Work In Process
541,881
443,611
259,324
Raw Material
265,229
328,955
239,414
Material In Transit
44,943
4,988
63,721
Total
1,298,770
1,330,662
1,023,059
Finished Goods
1,385,603
1,810,852
1,797,309
Work In Process
4,047,846
3,663,346
2,852,724
Raw Material
668,717
726,455
775,434
Material In Transit
135,441
98,897
150,237
Total
6,237,607
6,299,550
5,575,704
Finished Goods
6,491,898
7,429,350
6,837,250
Work In Process
4,433,916
4,070,266
3,230,576
Raw Material
6,359,492
6,809,112
5,081,396
990,758
826,140
2,598,191
18,276,064
19,134,868
17,747,413
8.1%
8.9%
9.8%
6.8
7.5
7.6
Total
DP
DS
Total
Total
Note
1,927,784
Total
DS
2012
1,919,061
Material In Transit
SemiConductor
2013
Finished Goods
Raw Material
IM
June 30, 2014
Material In Transit
Total
Inventory Ratio (%)– Total Assets
[Inventory ÷ Total Assets]
Inventory Turn-over
[ Yearly CGS ÷{(Beginning of Inventory End of Inventory)÷2}]
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A. Inventory Counts
(1) Inspection Date
ㆍ End of May and November (twice a year)
ㆍ Performed check of the existence of inventories included in an accounting books and records on the inspection date
(2) Inspection Method
ㆍ Internal warehouse: Closed & Total Inspection
※ Sample check in semiconductor and DP inventory, SVC materials
ㆍ Outside warehouse
Performed check of the possession confirmation documents and sample tests at third party warehouse and Inventory in
transit
ㆍ External auditors join and observe the inspection and carry out sample test to check the existence and completeness.
B. Inventory Aging and Valuation
Inventories are stated at the lower of cost or net realizable value. Inventory as at June 30, 2014 is as follows:
(Unit : KRW million)
Category
Acquisition
Cost
Inventory
Valuation Reserve
Balance
Note
Finished Goods
6,684,086
192,188
6,491,898
Work In Process
4,708,513
274,597
4,433,916
Raw Material
6,561,213
201,721
6,359,492
990,758
-
990,758
18,944,570
668,506
18,276,064
Material In Transit
Total
※ Prepared on a consolidated basis
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XI. Summary of Significant Accounting Policies
1. Basis of Presentation
The interim consolidated financial statements for the six months ended June 30, 2014, have been prepared in accor
dance with K-IFRS 1034, Interim Financial Reporting. These interim consolidated financial statements have been
prepared in accordance with the K-IFRS standards and interpretations effective or early adopted at the reporting date.
The Company applied the following amended and enacted standards for the annual period beginning on January 1, 2014:
K-IFRS 1032, ‘Financial Instruments: Presentation’
The standard provides that the right to offset must not be contingent on a future event and must be legally enforceable in
all of circumstances; and if an entity can settle amounts in a manner such that outcome is, in effect, equivalent to net
settlement, the entity will meet the net settlement criterion. The adoption of this standard did not have a material impact
on the consolidated financial statements.
K- IFRIC Interpretations 2121, ‘Levies’
The interpretation requires that the liability to pay a levy is recognized when the activity that triggers the payment of the
levy occurs, as identified by the legislation (the obligating event). The adoption of this interpretation did not have a
material impact on the consolidated financial statements.
2. Consolidation
The Company prepares interim consolidated financial statements in accordance with K-IFRS 1110, ‘Consolidated
Financial Statements’
A. Subsidiaries
Subsidiaries are all entities (including special purpose entities) over which the Company has control. The Company
controls the corresponding investee when it is exposed, or has rights, to variable returns from its involvement with the
investee and has the ability to affect those returns through its power over the investee. Consolidation of a subsidiary
begins from the date the Company obtains control of a subsidiary and ceases when the Company loses control of the
subsidiary.
The Company applies the acquisition method to account for business combinations. The consideration transferred is
measured at the fair values of the assets transferred, and identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are initially measured at their fair values at the acquisition date. The
Company recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis in the event of
liquidation at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net
assets. Acquisition-related costs are expensed as incurred.
Goodwill is recognized as the excess of (1) the aggregate of i) the consideration transferred, ii) the amount of any noncontrolling interest in the acquiree and iii) the acquisition-date fair value of the Company’s previously held equity interest
in the acquiree over (2) the net identifiable assets acquired. If the aggregate amount in (1) is less than the fair value of the
acquiree’s net assets in (2), the difference is recognized in profit or loss.
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Balances of receivables and payables, income and expenses and unrealized gains on transactions between the Company
subsidiaries are eliminated. Accounting policies of subsidiaries are changed where necessary to ensure consistency with
the policies adopted by the Company.
B. Changes in ownership interests in subsidiaries without change of control
Transactions with non-controlling interests that do not result in loss of control are accounted for as equity transactions –
that is, as transactions with the owners in their capacity as owners. The difference between fair value of any consideration
paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. Gains or
losses on disposals of non-controlling interests are also recorded in equity.
C. Disposal of subsidiaries
If the Company loses control of a subsidiary, any investment continuously retained in the subsidiary is re-measured at its
fair value at the date when control is lost and any resulting differences are recognized in profit or loss. Such fair value
becomes the initial carrying amount for the subsequent measurement of the retained interest accounted for as an associate,
joint venture, or financial asset. In addition, any amounts previously recognized in other comprehensive income in respect
of such entity are accounted for as if the Company had directly disposed of the related assets or liabilities.
D. Non-controlling interests
Each component of profit or loss and other comprehensive income is attributed to owners of the parent and to noncontrolling interests. Total comprehensive income is attributed to owners of the parent and to non-controlling interests
even if this results in a negative balance of non-controlling interests
E. Associates
Associates are all entities over which the Company has significant influence, generally investees of which from 20% to 50%
of voting stock is owned by the Company. Investments in associates are initially recognized at acquisition cost using the
equity method. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of
the Company’s interest in the associates. If there is any objective evidence that the investment in the associate is impaired,
the Company recognizes the difference between the recoverable amount of the associate and its book value as impairment
loss.
F. Joint arrangements
A joint arrangement of which two or more parties have joint control is classified as either a joint operation or a joint
venture. A joint operator has rights to the assets, and obligations for the liabilities, relating to the joint operation and
recognizes the assets, liabilities, revenues and expenses relating to its interest in a joint operation. A joint venturer has
rights to the net assets relating to the joint venture and accounts for that investment using the equity method.
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3. Foreign Currency Translation
A. Functional and presentation currency
Items included in the financial statements of each of the Company’s entities are measured using the currency of the
primary economic environment in which each entity operates (the “functional currency”). The consolidated financial
statements are presented in Korean won, which is the parent company’s functional and presentation currency.
B. Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of
the transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the
settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in profit or loss.
Exchange differences arising on non-monetary financial assets and liabilities such as equity instruments at fair value
through profit or loss and available-for-sale equity instruments are recognized in profit or loss and included in other
comprehensive income, respectively, as part of the fair value gain or loss.
C. Translation into the presentation currency
The results and financial position of all the foreign entities that have a functional currency different from the presentation
currency of the Company are translated into the presentation currency as follows:
Assets and liabilities for each statement of financial position presented are translated at the closing rate at the end of the
reporting date.
Income and expenses for each statement of income are translated at average exchange rates, unless this average is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income
and expenses are translated at the rate on the dates of the transactions.
All resulting exchange differences are recognized in other comprehensive income.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations are
recognized in other comprehensive income. When a foreign operation is partially disposed of or sold, the exchange
differences that were recorded in equity are reclassified as part of gains and losses on disposition in the statement of
income. When the Company loses control over foreign subsidiaries, the exchange differences that were recorded in equity
are reclassified into profit or loss when such gain or loss on disposition is recognized.
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments are treated as the foreign
operation’s assets and liabilities. Such goodwill is expressed in the foreign operation’s functional currency and is
translated at the closing rate. Exchange differences are recognized in other comprehensive income.
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4. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid
investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in
value.
5. Financial Assets
A. Classification
The Company classifies its financial assets in the following categories: financial assets at fair value through profit or loss,
loans and receivables, available-for-sale financial assets, and held-to-maturity financial assets. The classification depends
on the terms of the instruments and purpose for which the financial assets were acquired. Management determines the
classification of its financial assets at initial recognition.
(1) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this
category if acquired principally for the purpose of selling in the short-term. Derivatives not subject to hedge accounting
and derivatives separated from financial instruments such as embedded derivatives are also categorized as held for trading.
Assets in this category are classified as current assets.
(2) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are included in current assets, except for those with maturities greater than 12 months after the end of
the reporting period which are classified as non-current assets.
(3) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of
the other categories. They are included in non-current assets unless an investment matures or management intends to
dispose of it within 12 months of the end of the reporting period.
B. Recognition and measurement
Regular purchases and sales of financial assets are recognized on the trade date. At initial recognition, financial assets are
measured at fair value plus, in the case of financial assets not carried at fair value through profit or loss, transaction costs.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in the statement of income.
After the initial recognition, available-for-sale financial assets and financial assets at fair value through profit or loss are
subsequently carried at fair value. Loans and receivables and held-to-maturity investments are subsequently carried at
amortized cost using the effective interest method.
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Changes in fair value of financial assets at fair value through profit or loss are recognized in profit or loss and changes in
fair value of available-for-sale financial assets are recognized in other comprehensive income. When the available-for-sale
financial assets are sold or impaired, the fair value adjustments recorded in equity are reclassified into profit or loss.
Interest on available-for-sale financial assets and held-to-maturity financial assets calculated using the effective interest
method is recognized in the statement of income as part of finance income. Dividends on available-for-sale financial
assets are recognized in the statement of income as part of other non-operating income when the Company’s right to
receive payments is established.
C. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is a
legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the
asset and settle the liability simultaneously.
D. De-recognition of financial assets
If the Company transfers a financial asset and the transfer does not result in derecognition because the Company has
retained substantially of all the risks and rewards of ownership of the transferred asset due to a recourse in the event the
debtor defaults, the Company continues to recognize the transferred asset in its entirety and recognizes a financial liability
for the consideration received. The related financial liability is classified as ‘borrowings’ in the statement of financial
position.
6. Impairment of Financial Assets
The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or
group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment loss is
recognized only if there is objective evidence and that loss event (or events) has an impact on the estimated future cash
flows of the financial asset or group of financial assets that can be reliably estimated.
Impairment of loans and receivables is presented as a deduction in an allowance account. Impairment of other financial
assets is directly deducted from their carrying amount. The Company writes off financial assets when the assets are
determined to be no longer recoverable.
The objective evidence that a financial asset is impaired includes significant financial difficulty of the issuer or obligor; a
delinquency in interest or principal payments; or the disappearance of an active market for that financial asset because of
financial difficulties. A decline in the fair value of an available-for-sale equity instrument by more than 20% from its cost
or a prolonged decline below its cost for more than six months is also objective evidence of impairment.
7. Trade Receivables
Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of
business. If collection is expected in one year or less (or in the normal operating cycle of the Company if longer), they are
classified as current assets. If not, they are presented as non-current assets. Trade receivables are recognized initially at
fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
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8. Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the average cost method,
except for materials in transit. The cost of finished goods and work in progress comprises design costs, raw materials,
direct labor, other direct costs and related production overheads (based on normal operating capacity). It excludes costs of
idle plant and abnormal waste. Net realizable value is the estimated selling price in the ordinary course of business, less
applicable variable selling expenses.
Inventories are reduced for the estimated losses arising from excess, obsolescence, and decline in value. This reduction is
determined by estimating market value based on future customer demand. The losses on inventory obsolescence are
recorded as a part of cost of sales.
9. Disposal Group Held-for-Sale
Non-current assets (or disposal group) are classified as assets held-for-sale when their carrying amount is to be recovered
principally through a sale transaction and a sale is considered highly probable. The assets are measured at the lower
amount between their carrying amount and the fair value less costs to sell.
10. Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Historical cost includes expenditures that are directly attributable to the acquisition of the items. Subsequent costs are
included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company and the cost of the item can be measured
reliably. The carrying amount of those parts that are replaced is derecognized and repairs and maintenance expenses are
recognized in profit or loss in the period they are incurred.
Depreciation on tangible assets is calculated using the straight-line method to allocate the difference between their cost
and their residual values over their estimated useful lives. Land is not depreciated. Costs that are directly attributable to
the acquisition, construction or production of a qualifying asset, including capitalized interest costs, form part of the cost
of that asset and are amortized over the estimated useful lives.
The Company’s policy is that property, plant and equipment should be depreciated over the following estimated useful
lives:
Buildings and structures
Machinery and equipment
Other
Estimated useful lives
15, 30 years
5 years
5 years
The depreciation method, residual values and useful lives of property, plant and equipment are reviewed, and adjusted if
appropriate, at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable
amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are
determined by comparing the proceeds with the carrying amount and are recognized within the statement of income as
part of other non-operating income and expenses.
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11. Intangible Assets
Goodwill represents the excess of the cost of an acquisition over the fair value of the group’s share of the net identifiable
assets of the acquired subsidiary, associates, joint ventures and businesses at the date of acquisition. Goodwill on
acquisitions of subsidiaries and businesses is included in intangible assets and goodwill on acquisition of associates and
joint ventures are included in the investments in associates and joint ventures.
Intangible assets, except for goodwill, are initially recognized at their historical cost and carried at cost less accumulated
amortization and accumulated impairment losses.
Internally generated development costs are the aggregate costs recognized after meeting the asset recognition criteria,
including technical feasibility, and determined to have future economic benefits. Membership rights are regarded as
intangible assets with indefinite useful life and not amortized because there is no foreseeable limit to the period over
which the assets are expected to be utilized. Intangible assets with definite useful life such as trademarks and licenses are
amortized using the straight-line method over their estimated useful lives.
The Company’s policy is that intangible assets should be amortized over the following estimated useful lives:
Development costs
Trademarks, licenses and other intangible assets
Estimated useful lives
2 years
5 - 10 years
12. Impairment of Non-Financial Assets
Goodwill or intangible assets with indefinite useful life are not subject to amortization and are tested annually for
impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount
by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s
fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than
goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
13. Financial Liabilities
A. Classification and measurement
Financial liabilities at fair value through profit or loss are financial instruments held for trading. Financial liabilities are
classified in this category if incurred principally for the purpose of repurchasing them in the near term. Derivatives that
are not designated as hedges or bifurcated from financial instruments containing embedded derivatives are also
categorized as held-for-trading.
The Company classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or
loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for
derecognition, as financial liabilities carried at amortized cost and presented as ‘trade payables’, ‘borrowings’, and ‘other
financial liabilities’ in the statement of financial position.
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B. De-recognition
Financial liabilities are removed from the statement of financial position when it is extinguished, for example, when the
obligation specified in the contract is discharged, cancelled or expired or when the terms of an existing financial liability
are substantially modified.
14. Trade Payables
Trade payables are amounts due to suppliers for merchandise purchased or services received in the ordinary course of
business. If payment is expected in one year or less (or in the normal operating cycle of the Company if longer), they are
classified as current liabilities. If not, they are presented as non-current liabilities. Non-current trade payables are
recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
15. Borrowings
Borrowings are recognized initially at fair value, net of transaction costs and are subsequently measured at amortized cost.
Any difference between cost and the redemption value is recognized in the statement of income over the period of the
borrowings using the effective interest method. If the Company has an indefinite right to defer payment for a period
longer than 12 months after the end of the reporting date, such liabilities are recorded as non-current liabilities, otherwise,
they are recorded as current liabilities.
16. Provisions
A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
estimate can be made of the amount of the obligation. Provisions are not recognized for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a
pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.
The increase in the provision due to passage of time is recognized as interest expense.
When it is probable that an outflow of economic benefits will occur due to a present obligation resulting from a past event,
and the amount is reasonably estimable, a corresponding provision is recognized in the financial statements. However,
when such outflow is dependent upon a future event, that is not certain to occur, or cannot be reliably estimated, a
disclosure regarding the contingent liability is made in the notes to the financial statements.
17. Net Defined Benefit Liabilities
The Company has a variety of retirement pension plans including defined benefit or defined contribution plans. A defined
contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. The
Company has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to
pay all employees the benefits relating to employee service in the current and prior periods. For defined contribution plans,
the Company pays contributions to annuity plans that are managed either publicly or privately on a mandatory, contractual
or voluntary basis. The Company has no further future payment obligations once the contributions have been paid. The
contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an
asset to the extent that a cash refund or a reduction in the future payments is available.
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A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined benefit plans define an
amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as
age, years of service and compensation. The liability recognized in the statement of financial position in respect to defined
benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair
value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected
unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future
cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the
benefits will be paid and that have terms to maturity approximating to the terms of the related pension obligation.
Actuarial gains and losses resulting from the changes in actuarial assumptions, and the differences between the previous
actuarial assumptions and what has actually occurred, are recognized in other comprehensive income in the period in
which they were incurred. Past service costs are immediately recognized in profit or loss.
18. Financial Guarantee Contract
Financial guarantee contracts are contracts that require the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payments when due. Financial guarantees are initially recognized in
the financial statements at fair value on the date the guarantee was given. If the amount measured in subsequent periods
exceeds the unamortized balance of the amount initially recognized, the excess is classified as other financial liability.
19. Current and Deferred Tax
The tax expense for the period comprises current and deferred tax. Tax is recognized on the profit for the period in the
statement of income, except to the extent that it relates to items recognized in other comprehensive income or directly in
equity, in which case the tax is also recognized in other comprehensive income or directly in equity, respectively. The tax
expense is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.
Deferred tax is recognized for temporary differences arising between the tax bases of assets and liabilities and their
carrying amounts as expected tax consequences at the recovery or settlement of the carrying amounts of the assets and
liabilities. However, deferred tax assets and liabilities are not recognized if they arise from initial recognition of an asset
or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting
nor taxable profit or loss. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilized.
A deferred tax liability is recognized for taxable temporary differences associated with investments in subsidiaries,
associates, and interests in joint ventures, except to the extent that the Company is able to control the timing of the
reversal of the temporary differences and it is probable that the temporary difference will not reverse in the foreseeable
future. In addition, a deferred tax asset is recognized for deductible temporary differences arising from such investments
to the extent that it is probable the temporary difference will reverse in the foreseeable future and taxable profit will be
available against which the temporary difference can be utilized.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the
balances on a net basis.
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20. Derivative Instruments
All derivative instruments are accounted for at fair value with the resulting valuation gain or loss recorded as an asset or
liability. If the derivative instrument is not designated as a hedging instrument, the gain or loss is recognized in the
statement of income in the period of change.
Fair value hedge accounting is applied to a derivative instrument with the purpose of hedging the exposure to changes in
the fair value of an asset or a liability or a firm commitment (hedged item) that is attributable to a particular risk. Hedge
accounting is applied when the derivative instrument is designated as a hedging instrument and the hedge accounting
criteria have been met.
21. Dividend Distribution
Dividend distribution to the Company’s shareholders is recognized when the dividends are approved.
22. Share Capital
Common shares and preferred shares with no repayment obligations are classified as equity. When the Company
purchases its common shares, the acquisition costs including direct transaction costs are deducted from equity until the
redemption or reissuance of treasury shares. Consideration received on the subsequent sale or issue of treasury shares is
credited to equity.
23. Revenue Recognition
Revenue mainly comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary
course of the Company’s activities. Revenue is shown net of value-added tax, returns, sales incentives and discounts and
after eliminating intercompany transactions.
The Company recognizes revenue when specific recognition criteria have been met for each of the Company’s activities
as described below. The Company bases its estimates on historical results, taking into consideration the type of customer,
the type of transaction and the specifics of each arrangement.
Where multiple-element arrangements exist, the fair values of each element are determined based on the current market
price of each of the elements when sold separately. When the fair values of each element are indeterminable, the fair
values of deliverables which have already been provided are calculated in such way that the fair values of elements, which
are yet to be provided, are subtracted from total contract value of the arrangement.
A. Sales of goods
Sales of products and merchandise are recognized upon delivery when the significant risks and rewards of ownership of
goods have transferred to the buyer, continuing managerial involvement usually associated with ownership and effective
control have ceased, the amount of revenue can be measured reliably, it is probable that the economic benefits associated
with the transaction will flow to the Company and the costs incurred or to be incurred in respect of the transaction can be
measured reliably. The Company records reductions to revenue for special pricing arrangements, price protection and
other volume based discounts. If product sales are subject to customer acceptance, revenue is not recognized until
customer acceptance occurs.
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B. Sales of services
Revenues from rendering services are generally recognized using the percentage-of-completion method, based on the
percentage of costs to date compared to the total estimated costs, contractual milestones or performance.
C. Other sources of revenue
Interest income is recognized using the effective interest method. When a loan and receivable is impaired, the Company
reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original
effective interest rate of the instrument, and continues unwinding the discount as interest income. Royalty income is
recognized on an accruals basis in accordance with the substance of the relevant agreements. Dividend income is
recognized when the right to receive payment is established.
24. Government Grants
Government grants are recognized at their fair values when there is reasonable assurance that the grant will be received
and the Group will comply with the conditions attaching to it. Government grants related to assets are presented by
deducting the grants in arriving at the carrying amount of the assets, and grants related to income are deferred and
presented by deducting the related expenses for the purpose of the government grants.
25. Earnings per Share
Basic earnings per share is calculated by dividing net profit for the period available to common shareholders by the
weighted-average number of common shares outstanding during the year. Diluted earnings per share is calculated using
the weighted-average number of common shares outstanding adjusted to include the potentially dilutive effect of common
equivalent shares outstanding.
26. Reportable Segments
Reportable segments are disclosed in the manner reported to the chief operating decision-maker (please see footnote 33).
The chief operating decision-maker is responsible for making strategic decisions on resource allocation and
performance assessment of the reportable segments. The management committee which makes strategic decisions is
regarded as the chief operating decision-maker.
27. Approval of the Consolidated Financial Statements
These consolidated financial statements were approved by the Board of Directors on July 31st, 2014.
28. Convenience Translation into United States Dollar Amounts
The Company operates primarily in Korean won and its official accounting records are maintained in Korean won. The
US dollar amounts provided in the financial statements represent supplementary information solely for the convenience of
the reader. All Korean won amounts are expressed in US dollars at the rate of KRW 1,014.40 to US $1, the exchange rate
in effect on June 30, 2014. Such presentation is not in accordance with generally accepted accounting principles, and
should not be construed as a representation that the Korean won amounts shown could be readily converted, realized or
settled in US dollars at this or at any other rate.
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[Critical Accounting Estimates and Assumptions]
The Company makes estimates and assumptions concerning the future. The estimates and assumptions are continuously
assessed, considering historical experience and other factors, including expectations of future events that are believed to
be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related
actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are addressed below.
(1) Revenue recognition
The Company uses the percentage-of-completion method in accounting for its fixed-price contracts to deliver installation
services. Use of the percentage-of-completion method requires the Company to estimate the services performed to date as
a proportion of the total services to be performed. Revenues and earnings are subject to significant change, effected by
early steps in a long-term projects, change in scope of a project, cost, period, and plans of the customers.
(2) Provision for warranty
The Company recognizes provision for warranty on products sold. The Company accrues provision for warranty based on
the best estimate of amounts necessary to settle future and existing claims. The amounts are estimated based on historical
data.
(3) Fair value of derivatives and other financial instruments
The fair value of financial instruments that are not traded in an active market is determined by using a variety of methods
and assumptions that are mainly based on market conditions existing at the end of each reporting period.
(4) Net defined benefit liabilities
The net defined benefit liability depends on a number of factors that are determined on an actuarial basis using a number
of assumptions. Any changes in these assumptions will impact the carrying amount of the net defined benefit liability. The
Company, in consideration of the interest rates of high-quality corporate bonds, determines the appropriate discount rate at
the end of each year. This is the interest rate that is used to determine the present value of estimated future cash outflows
expected to be required to settle the net defined benefit liability.
The principal actuarial assumptions associated with the net defined benefit liability are based on the current market
expectations.
(5) Estimated impairment of goodwill
The Company tests at the end of each reporting period whether goodwill has suffered any impairment in accordance with
the accounting policy described in Note 2.12. The recoverable amounts of cash-generating units have been determined
based on value-in-use calculations. These calculations are based on estimates.
(6) Income taxes
Income taxes on the Company’s taxable income from operating activities are subject to various tax laws and
determinations of each tax authority across various countries in the world. There is uncertainty in determining the eventual
tax effects on the taxable income from operating activities. The Company has recognized current tax and deferred tax at
the end of the fiscal year based on the best estimation of future taxes payable as a result of operating activities. However,
the resulting deferred income tax assets and liabilities may not equal the actual future taxes payable and such difference
may impact the current tax and deferred income tax assets and liabilities upon the determination of eventual tax effects.
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[Translation to International Financial Reporting Standards as adopted by the Republic of Korea from Generally
Accepted Accounting Principle in the Republic of Korea]
The Company adopted Korean IFRS from the fiscal year 2010 (the date of first-time adoption to Korean IFRS: January 1,
2010). The comparison year, 2009,is restated in accordance with Korean IFRS 1101, First-time adoption of international
financial reporting standards (the date of transition to Korean IFRS: January 1, 2009).
(1) Significant differences in accounting policies
Significant differences between the accounting policies chosen by the Company under Korean IFRS and under previous
Korean GAAP are as follows:
(A) First time adoption of Korean IFRS
a) Business combination: Past business combinations that occurred before the date of transition to Korean IFRS will
not be retrospectively restated under Korean IFRS 1103, Business combinations.
b) Fair value as deemed cost: The Company elects to measure certain land assets at fair value at the date of transition
to Korean IFRS and use the fair value as its deemed cost. Valuations were made on the basis of recent market
transactions on the arm's length terms by independent values.
c) Cumulative translation differences: All cumulative translation gains and losses arising from foreign subsidiaries
and associates as of the date of transition to Korean IFRS are reset to zero.
d) Employee benefits: The Company elected to use the ‘corridor’ approach for actuarial gains and losses and all
cumulative actuarial gains and losses have been recognized at the date of transition to Korean IFRS.
(B) Employee benefits
Employees and directors with at least one year of service are entitled to receive a lump-sum payment upon termination of
their employment with SEC, its Korean subsidiaries and certain foreign subsidiaries, based on their length of service and
rate of pay at the time of termination. Under the previous severance policy pursuant to Korean GAAP, Accrued severance
benefits represented the amount which would be payable assuming all eligible employees and directors were to terminate
their employment as of the end of the reporting period. However, under Korean IFRS, the liability is determined based on
the present value of expected future payments calculated and reported using actuarial assumptions.
(C) Capitalization of development costs
Under Korean GAAP the Company recorded expenditures related to research and development activities as current
expense. Under Korean IFRS if such costs related to development activities meet certain criteria they are recorded as
intangible assets.
(D) Goodwill or bargain purchase arising from business combinations
Under Korean GAAP, the Company amortizes goodwill or recognizes a gain in relation to bargain purchase (negative
goodwill1) acquired as a result of business combinations on a straight-line method over five years from the year of
acquisition. Under Korean IFRS, goodwill is not amortized but reviewed for impairment annually. Bargain purchase is
recognized immediately in the statement of income. The impact of this adjustment is included within “other” adjustment
in the tables below.
1 Negative goodwill under Korean GAAP is referred to as bargain purchase under Korean IFRS
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(E) Derecognition of financial assets
Under Korean GAAP, when the Company transferred a financial asset to financial institutions and it was determined that
control over the asset has been transferred the Company derecognized the financial asset. Under Korean IFRS, if the
Company retains substantially all the risks and rewards of ownership of the asset, the asset is not derecognized but instead
the related cash proceeds are recognized as financial liabilities.
(F) Deferred Tax
Under Korean GAAP, deferred tax assets and liabilities were classified as either current or non-current based on the
classification of their underlying assets and liabilities. If there are no corresponding assets or liabilities, deferred tax assets
and liabilities were classified based on the periods the temporary differences were expected to reverse. Under Korean
IFRS, deferred tax assets and liabilities are all classified as non-current on the statement of financial position. In addition,
there is a difference between Korean IFRS and Korean GAAP in terms of recognition of deferred tax assets or liabilities
relating to investments in subsidiaries. Under Korean GAAP there is specific criteria as to when deferred tax assets and
liabilities relating to investments in subsidiaries should be recognized, whereas under Korean IFRS, the related deferred
tax assets or liabilities are recognized according to sources of reversal of the temporary differences.
(2) Changes in scope of consolidation
At the date of transition, changes in the scope of consolidation as a result of adoption of Korean IFRS are as follows:
Changes
Description
Newly
added
Under the former ‘Act on External Audit
of Stock companies’ in the Republic of
Korea, companies those whose total
assets are less than 10 billion Korean
Won were not subject to consideration,
but they are subject to consolidation
under Korean IFRS.
Newly
added
Under Korean GAAP, a union is not
regarded as a legal entity and excluded
from scope of consolidation. However,
it is subject to consolidation under
Korean IFRS
Excluded
Under Korean GAAP, entities where the
Company owns more than 30% of
shares and is the largest shareholder
with the largest voting rights were
included in scope of consolidation.
Under Korean IFRS, such entities are
not subject to consolidation unless
control over the entity is established.
Name of Entity
World Cyber Games, Samsung Electronics Football Club,
SEMES America, Samsung Electronics Ukraine,
Samsung Electronics Romania, Samsung Electronics Kazakhstan,
Samsung Electronics Czech and Slovak s.r.o.
Samsung Electronics Levant, Samsung Electronics European Holding,
Batino Realty Corporation, Samsung Telecommunications Malaysia,
Samsung Electronics Shenzhen, Samsung Electronics China R&D Center,
Samsung Electronics Limited, Samsung Electronics Poland Manufacturing,
Samsung Telecoms(UK)
Samsung Venture Capital Union #6, #7 and #14
Samsung Card
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(3) The effects of the adoption of Korean IFRS on financial position, Comprehensive income and cash flows of the
Company
(A) Adjustments to the statement of financial position as of the date of transition, January 1, 2009.
(Unit: KRW million)
Assets
Korean GAAP
105,300,650
Adjustments:
Change in scope of consolidation
(12,972,168)
Fair valuation of land(*)
3,816,293
Derecognition of financial asset
1,807,675
Capitalization of development costs
200,478
Pension and compensated absence
Deferred tax on investments in equity and
(1,434,287)
reclassification to non-current
Effect of the adoption of IFRS for jointly
155,163
controlled entities and associates
Other
(95,064)
Tax-effect on adjustments
(141)
Total
(8,522,051)
Korean IFRS
96,778,599
(*) The adjustment includes the effect of deferred tax
Liabilities
42,376,696
Equity
62,923,954
(10,649,400)
927,141
1,807,675
186,978
(1,332,886)
(2,322,768)
2,889,152
200,478
(186,978)
(101,401)
-
155,163
2,010
(9,058,482)
33,318,214
(95,064)
(2,151)
536,431
63,460,385
(B) The effect of the adoption of Korean IFRS on financial position and comprehensive income of the Company as of and
for the year ended December 31, 2009.
(Unit: KRW million)
Assets
Korean GAAP
118,281,488
Adjustments:
Change in scope of consolidation
(10,120,256)
Fair valuation of land(*)
3,804,404
Derecognition of financial asset
754,969
Capitalization of development costs
214,451
Pension and compensated absence
Deferred tax on investments in equity
(874,056)
and reclassification to non-current
Effect of the adoption of IFRS for
266,742
jointly controlled entities and associates
Other
(143,058)
Tax-effect on adjustments
(4,895)
Total
(6,101,699)
Korean IFRS
112,179,789
(*) The adjustment includes the effect of deferred tax
45,227,196
73,054,292
Comprehensive
income
9,700,671
(7,372,830)
924,525
754,969
153,357
(564,016)
(2,747,426)
2,879,879
214,451
(153,357)
(310,040)
(489,504)
(9,273)
13,973
33,621
(200,099)
-
266,742
111,579
11,386
(6,092,609)
39,134,587
(143,058)
(16,281)
(9,090)
73,045,202
(47,994)
(14,130)
(601,827)
9,098,844
Liabilities
Equity
(C) Adjustments to the statement of cash flows for the year ended December 31, 2009
According to Korean IFRS 1007, Cash Flow Statements, cash flows from interest, dividends received and taxes on
income shall each be disclosed separately. The comparison year, 2009, is restated in accordance with Korean IFRS. There
are no other significant differences between cash flows under Korean IFRS and those under previous Korean GAAP for
the year ended December 31, 2009.
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XII. Supplementary Information
1. Fair Value Evaluation Procedures
A. Financial Assets
(1) Classification
The Company classifies its financial assets in the following categories: financial assets at fair value through profit or loss,
loans and receivables, available-for-sale financial assets, and held-to-maturity financial assets. The classification depends
on the terms of the instruments and purpose for which the financial assets were acquired. Management determines the
classification of its financial assets at initial recognition.
(A) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this
category if acquired principally for the purpose of selling in the short-term. Derivatives not subject to hedge accounting
and derivatives separated from financial instruments such as embedded derivatives are also categorized as held for
trading. Assets in this category are classified as current assets.
(B) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. They are included in current assets, except for those with maturities greater than 12 months after the end of
the reporting period which are classified as non-current assets.
(C) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of
the other categories. They are included in non-current assets unless an investment matures or management intends to
dispose of it within 12 months of the end of the reporting period
B. Financial Liabilities
(1) Classification and measurement
Financial liabilities at fair value through profit or loss are financial instruments held for trading. Financial liabilities are
classified in this category if incurred principally for the purpose of repurchasing them in the near term. Derivatives that
are not designated as hedges or bifurcated from financial instruments containing embedded derivatives are also
categorized as held-for-trading.
The Company classifies non-derivative financial liabilities, except for financial liabilities at fair value through profit or
loss, financial guarantee contracts and financial liabilities that arise when a transfer of financial assets does not qualify for
derecognition, as financial liabilities carried at amortized cost and presented as ‘trade payables’, ‘borrowings’, and ‘other
financial liabilities’ in the statement of financial position.
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(2) Derecognition
Financial liabilities are removed from the statement of financial position when it is extinguished, for example, when the
obligation specified in the contract is discharged, cancelled or expired or when the terms of an existing financial liability
are substantially modified.
C. Derivative Instruments
All derivative instruments are accounted for at fair value with the resulting valuation gain or loss recorded as an asset or
liability. If the derivative instrument is not designated as a hedging instrument, the gain or loss is recognized in the
statement of income in the period of change.
Fair value hedge accounting is applied to a derivative instrument with the purpose of hedging the exposure to changes in
the fair value of an asset or a liability or a firm commitment (hedged item) that is attributable to a particular risk. Hedge
accounting is applied when the derivative instrument is designated as a hedging instrument and the hedge accounting
criteria have been met.
D. Fair value estimation
(1) Carrying amounts and fair values of financial instruments by category as of June 30, 2014 and December 31, 2013 are
as follows:
(Unit: KRW million))
Financial assets
Cash and cash equivalents
Short-term financial instruments
Short-term available-for-sale financial assets
Trade and other receivables
Long-term available-for-sale financial assets2
Other
Total Financial assets
Financial liabilities
Trade and other payables
Short-term borrowings
Debentures
Long-term borrowings
Long-term other payables
Other
Total financial liabilities
1
2
June 30, 2014
Carrying amount
Fair value
December 31, 2013
Carrying amount
Fair value
16,057,574
41,692,883
2,912,533
24,432,856
10,644,223
6,702,087
102,442,156
(*1)
(*1)
(*1)
(*1)
10,231,338
6,668,886
16,284,780
36,722,702
1,488,527
24,988,532
6,238,380
5,472,956
91,195,877
(*1)
(*1)
(*1)
(*1)
5,850,155
5,436,470
15,038,007
9,325,033
1,269,911
2,214,013
2,538,918
8,941,638
39,327,520
(*1)
(*1)
1,288,791
2,123,744
2,623,387
(*1)
16,314,720
6,438,517
1,311,068
985,117
1,023,714
13,288,343
39,361,479
(*1)
(*1)
1,327,569
971,844
1,090,580
(*1)
Assets and liabilities whose carrying amount is a reasonable approximation of fair value are excluded from t
he fair value disclosures.
Amount measured at cost (June 30, 2014: KRW 412,885 million; December 31, 2013: KRW 388,225 million) is
excluded as the range of reasonable fair value estimate is significant and the probabilities of the various esti
mates cannot be reasonably assessed.
(2) The following table presents the assets and liabilities, by level, that are measured at fair value:
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As of June 30, 2014
(Unit: KRW million))
Level 1
Level 2
Level 3
Total balance
Derivatives
Available-for-sale financial assets1
5,418,767
46,608
4,586,312
2,588
3,138,792
49,196
13,143,871
Total assets
5,418,767
4,632,920
3,141,380
13,193,067
Derivatives
-
266,700
-
266,700
Total liabilities
-
266,700
-
266,700
December 31, 2013
(Unit: KRW million))
Level 1
Level 2
Level 3
Total balance
Derivatives
Available-for-sale financial assets1
5,656,806
40,552
1,188,498
493,378
40,552
7,338,682
Total assets
5,656,806
1,229,050
493,378
7,379,234
Derivatives
-
244,172
-
244,172
Total liabilities
-
244,172
-
244,172
1
Amount measured at cost (June 30, 2014: KRW 412,885 million, December 31, 2013: KRW 388,225 million) is excluded as the
range of reasonable fair value estimates is significant and the probabilities of the various estimates cannot be reasonably assessed.
The levels of the fair value hierarchy and its application to financial assets and liabilities are described below.
ㆍLevel 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
ㆍLevel 2: Fair valuation based on inputs that are observable in market
(Other than quoted prices included within level 1)
ㆍLevel 3: Fair valuation based on inputs that are unobservable in market
The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of
financial position date. A market is regarded as active if quoted prices are readily and regularly available from an
exchange, dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by
the Company is the current bid price. These instruments are included in Level 1. Instruments included in Level 1 are listed
equity investments classified as trading securities or available-for-sale financial assets.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives)
is determined by using valuation methods. These valuation methods maximize the use of observable market data where it
is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an
instrument are observable, the instrument is included in Level 2.
If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.
The Company performs the fair value measurements required for financial reporting purposes, including level 3 fair
values and discusses valuation processes and results at least once every quarter in line with the Company’s quarterly
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reporting dates. The Company’s policy is to recognize transfers between levels at the end of the reporting period, if
corresponding events or changes in circumstances have occurred.
Specific valuation methods used to value financial instruments include:
ㆍQuoted market prices or dealer quotes for similar instruments.
ㆍThe fair value of forward foreign exchange contracts is determined using forward exchange rates at the statement of
financial position date, with the resulting value discounted to present value.
Other methods, such as discounted cash flow analysis, are used to determine fair value for the remaining financial
instruments. For trade and other receivables, the book value approximates a reasonable estimate of fair value.
(3) Valuation methods and the inputs
The Company utilizes a present value method to discount future cash flows at a proper interest rate for corporate bonds,
government and public bonds, and bank debentures that are classified as Level 2 in the fair value hierarchy.
The following table presents the valuation method and inputs used for major financial instruments classified as Level 3.
(Unit: KRW million)
Fair
Classification
Value
Long-term available-for-sale financial assets
Samsung Petrochemical
80,347
Samsung General Chemicals
Taewon Electric
Pantech
Samsung Venture Investment
Coming Incorporated
convertible preferred stock
Derivatives
Embedded derivatives
(convertible bonds)
80,653
17,072
53,053
7,021
2,673,583
2,588
Valuation
Method
Discounted
cash flow
Discounted
cash flow
Discounted
cash flow
Discounted
cash flow
Discounted
cash flow
Trinomial
model
Binomial model
Input Range
(Weighted Average)
Level 3 Inputs
Permanent growth rate
Weighted average cost
capital
Permanent growth rate
Weighted average cost
capital
Permanent growth rate
Weighted average cost
capital
Permanent growth rate
Weighted average cost
capital
Permanent growth rate
Weighted average cost
capital
Risk adjusted discount
Price volatility
of
-1.00% ~ 1.00% (0%)
6.37% ~ 8.37% (7.37%)
of
-1.00% ~ 1.00% (0%)
7.01% ~ 9.01% (8.01%)
of
-1.00% ~ 1.00% (0%)
6.06% ~ 8.06% (7.06%)
of
-1.00% ~ 1.00% (0%)
8.81% ~ 10.81% (9.81%)
of
-1.00% ~ 1.00% (0%)
7.69% ~ 9.69% (8.69%)
rate
Discount rate
Stock price volatility
5.57% ~ 7.57% (6.57%)
31.60% ~ 37.60% (34.60%)
6.09% ~ 11.70% (8.58%)
11.90% ~ 16.61% (13.88%)
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(4) Changes in Level 3 instruments:
2014
(Unit: KRW million)
Balance as of January 1
Purchases
Disposals
Amount recognized in profit or loss
Amount recognized in other comprehensive income
Other
Balance as of June 30
2013
493,378
2,473,965
(9,934)
(10,652)
240,041
(45,418)
3,141,380
389,195
106,964
(585)
(4,387)
457
491,644
(5) Sensitivity analysis for recurring fair value measurements categorized within Level 3
A sensitivity analysis of financial instruments is performed to measure favorable and unfavorable changes in the fair value
of financial instruments which are affected by the unobservable parameters, using a statistical technique. When the fair
value is affected by more than two input parameters, the amounts represent the most favorable or most unfavorable.
The results of the sensitivity analysis for the effect on profit or loss (before-tax amount for other comprehensive income or
loss) from changes in inputs for major financial instruments which are categorized within Level 3 and subject to
sensitivity analysis are as follows:
(Unit: KRW million)
Classification
Long-term available for sale financial
assets1
Favorable Changes
Profit or
Equity
Loss
Unfavorable Changes
Profit or
Equity
Loss
-
226,812
-
(214,063)
Embedded derivatives (convertible bonds)2
579
579
(494)
(494)
Total
579
227,391
(494)
(214,557)
1
Changes in fair value are calculated by increasing or decreasing the correlation between volatility (31.60 to 37.60%) and
discount rate for convertible preferred stock. Similarly, for other equity securities, changes in fair value are calculated
with the correlation between growth ratio (-1% to 1%) and discount rate, which are significant unobservable inputs.
2
For equity derivatives, changes in their fair value are calculated by increasing or decreasing the correlation between
stock prices and volatility by 10%.
E. Tangible Assets
No valuations were performed on tangible assets during the reporting period.
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