Professional Documents
Culture Documents
Contents
96
102
104
109
110
Creation and
Distribution of
Economic Value
Transparent
Management
Talent
Management
Social
Contribution
Shared Growth
with Suppliers
112
Green Management
Sustainability Overview
Material Issues
Appendices
In 2013, Samsung Electronics delivered record sales of KRW 228.7 trillion, an increase of 13.7 percent
Sales Increase
from the KRW 201.1 trillion achieved in 2012. The company earned KRW 36.8 trillion in operating prof-
of IM
its, KRW 29.8 trillion in net income, and KRW 53.2 trillion in EBITDA.
(From 2012)
2013
Despite challenges driven by delayed global economic recovery and intensified price competition of
2012
its key products, Samsung Electronics achieved record earnings by affirming market leadership in the
2011
31
138.8
105.8
64.6
37.0
Unit: KRW 1T
2011
2012
2013
Consumer Electronics
228.7
165.0
Unit: KRW 1T
201.1
IT and Mobile
34.9 37.4
Semiconductors
53.2
Sales
228.7
KRW
15.6
trillion
Sales
29.0
36.8
29.8
13.4 23.2
Operating Profits
29.2
44.6
Sales by Regions
EBITDA
Net Profits
Increased sales of key products in the Americas, Asia, Africa, and China contributed to the increase in
Sales by Region
total sales.
18%
10%
Performance by Region
Unit: KRW 1T
Performance by Business
2011
2012
2013
Samsung Electronics has a diverse business portfolio consisting of the Consumer Electronics division,
Korea
26.5
29.2
22.8
Americas
47.5
58.2
69.4
Europe
39.0
49.5
52.7
Asia/Africa
28.8
36.1
43.7
China
23.1
28.2
40.1
which comprises business units that manufacture and sell TVs, monitors, printers, air conditioners,
19%
2013
refrigerators, and medical devices; the IT and Mobile division, which includes businesses that special-
23%
ize in mobile phones like smartphones and tablets, ICT systems, and digital cameras; the Semiconductor division, which includes the business units that manufacture and sell DRAM, NAND Flash, and
Mobile AP; and the Display Panels division, which comprises the business units that produce and sell
display panels for a variety of key products such as TVs, monitors, notebook PCs, and smartphones.
Korea
Americas
Europe
Asia/Africa
30%
China
15%
Consumer Electronics
Semiconductors
16%
12%
23%
IT and Mobile
2012
14%
20%
2013
Display Panels
46%
Consumer
Electronics
54%
IT and Mobile
Unit :%
Product
2011
2012
2013
CTV
19.2
21.1
21.6
Remarks
Global market shares according to
Display Search
(based on product numbers)
Mobile
phones
25.1
27.2
Strategy Analytics
(based on phone numbers)
In Consumer Electronics, Samsung Electronics maintains its global leadership in TV, FPTV, and LCD TV
for the eighth consecutive year, while the IT and Mobile division continues to diversify product lines
Semiconductors
DRAM
42.2
41.0
36.2
Display Panels
26.1
25.4
20.4
from premium smartphones to mass production models. The Semiconductor and Display Panels sectors remain focused on enhancing cost competitiveness through advanced process development,
mass production, and increasing shipments of differentiated products. The trends of sales by division
are as follows:
096
Display Panels
Display Search
(based on sales amount of large models)
097
Sustainability Overview
Material Issues
Appendices
As semiconductor and display panel production are capital-intensive operations, Samsung Electronics
places importance on making timely investments for the future. In 2013, the company invested KRW
24.1 trillion in assets, including the improvement of production line performance.
Sales
Unit: KRW 1T
2011
2012
2013
165.0
201.1
228.7
Other Profit*
11.0
10.4
10.9
Other Cost**
(8.6)
(8.7)
(8.4)
Depreciation Costs***
(13.6)
(15.6)
(16.4)
153.8
187.2
214.8
Facility Investments
Unit: KRW 1T
99%
62%
Proportion
52%
Total investments
Cash flow due to business activities
24.1
23.6
22.6
38.0
46.7
2012
2013
22.9
*** Depreciation costs refer to total depreciation expenses and repayment expenses on intangible assets that are includ
ed in administrative expenses.
2011
**** Economic value created refers to the sum of operating and non-operating income minus expenses that are not distributed to internal and external stakeholders.
Investment for intangible assets has been calculated based on cash flow.
Figures for 2011 and 2012 have been adjusted according to new calculation standards.
launch creative and innovative products and develop future technologies in 2013. As a result of such
In line with the companys belief in shared prosperity, the economic benefits of Samsung Electronics
considerable investments, Samsung Electronics has been able to secure original, next-generation
technologies.
14.8
KRW
6.5%
R&D Investments
Unit: KRW 1T
trillion
Proportion
of sales
6.2%
R&D investments
6.5%
5.9%
214.8
KRW
14.8
Sales
Distributed to Stakeholders
trillion
Employees
Government
Suppliers
Local
Community
Creditors
10.3
165.0
11.9
228.7
Shareholders
Retained
201.1
Unit: KRW 1T
Items
2011
2012
2013
Labor Costs*
14.5
16.9
21.4
4.2
7.0
9.0
120.5
138.7
152.9
CSR****
0.3
0.2
0.5
Interest Expenses
0.6
0.6
0.5
0.8
1.2
2.2
12.9
22.6
28.3
153.8
187.2
214.8
Purchase cost***
Dividends/
Net Buy-back
Earnings
Distributed
Economic Value
* The total sum of salaries, severance payments and fringe benefits included in the cost of sales, R&D costs, and administrative expenses.
** The total sum of consolidated corporate taxes paid, other taxes, and dues calculated on an accrual basis.
*** The total sum of social contribution expenses paid including donations and other expense accounts.
**** The total amount of economic value created.
2011
098
2012
2013
099
Sustainability Overview
Material Issues
Appendices
Employees
Local Communities
Economic value distributed to Samsung Electronics and subsidiary company employees consists of
In 2013, Samsung Electronics and its subsidiaries donated KRW 536.3 billion to local communities.
salaries, retirement settlement packages, and employee benefit expenses. Personnel expenses increased by 26.6 percent from 2012 to 2013.
Personnel Expenses
21.4
KRW
Employees/Personnel
Expenses
Unit: KRW 1T
2011
2012
2013
259
186
422
Korea
Overseas
2011
14.5
2012
Unit: KRW 1B
Total
35
59
114
294
245
536
16.9
201.1
Creditors
2013
21.4
Interest paid by Samsung Electronics and its subsidiaries decreased slightly in 2013. Interest returns
increased by KRW 506.2 billion in 2013 compared to 2012.
Samsung Electronics Interest Revenues, Interest Expenses and Net Interest Expenses
Government
Taxes and dues paid to governments by Samsung Electronics and its subsidiaries in 2013 increased by
Unit: KRW 1B
2011
2012
2013
28.6 percent from 2012. Samsung Electronics paid 61 percent of its total taxes and dues to the Korean
Interest Revenues
706
845
1,352
government, home of its corporate headquarters. The outstanding amount was paid to the govern-
Interest Expenses
644
599
510
ments in Asia, which houses many Samsung manufacturing plants, America, and Europe, where
(62)
(246)
(842)
Unit: KRW 1B
Shareholders/Investors
Dividends paid by Samsung Electronics and its subsidiaries increased in 2013 due to the increase of
Total
Korea
8,967
Corporate Tax
Asia
6,970
Americas/Europe
Others
1%
2011
14%
Net Buy-back
7,890
201.1
6,070
Dividend
Total Pay-out Ratio(*)
24%
Unit: KRW 1B
2013
827
1,207
2,157
6.2%
5.2%
7.2%
* The Total Pay-out Ratio is the rate of cash distributed to shareholders or investors in the form of dividends
2013
2011
61%
3,433
749
2011
100
2012
900
1,077
Dividend
2.2
KRW
2012
(or net buy back) from net profit during the given term (dominant firms equity ownership).
trillion
2013
101