This action might not be possible to undo. Are you sure you want to continue?
The Way We Lead
Message from the CEO About the Board 2008 Financial Summary Performance by Business 2008 at a Glance 01 10 14 16 18 20 22
Digital Media & Communications Business
Product Gallery DS
Device Solution Business
Corporate Citizenship Partner Collaboration Sustainability Financial Statements Investor Information Global Network 40 42 44 47 98 99
THE WAY WE LEAD
At Samsung Electronics, we believe that crises are opportunities for innovation and that change is about action. It takes a different kind of strategy to navigate tough economic times and become one the world’s leading companies. And we have what it takes to get there.
. In the next few pages. we’d like to introduce a few of our exceptional people and the unique ways they’re helping us lead the way in brand marketing. manufacturing. Being able to sustain that leadership is an entirely different one. and design. research and development.HErE’s HoW WE Do IT Knowing how to lead is one thing.
Brand Marketing Group Digital Appliance Division . it’s essential to have detailed data and research on those markets and consumers.and consumer-focused market-sensing capabilities. The reason our front-loading washers with vibration-reduction technology and French-door refrigerators top their respective categories in the US is a direct result of our robust market. And the insights we gain are helping us lead the way to a more convenient.03 Understanding Tomorrow’s Markets And Consumers When it comes to developing premium home appliances for specific regions. Kyu-Hee Lee Assistant Manager. comfortable future.
And the greater synergy this collaboration enables is helping us lead the way to a more productive. Application Engineering Group Global Production Technology Center Digital Media & Communications Business . profitable future.Collaborating For Greater Synergy Since 2007. Gab-Soo Lee General Manager. These remarkable gains have been made possible by close collaboration between each of our departments—from manufacturing and development to marketing and purchasing. we’ve operated an innovative “cell-based” manufacturing system that has doubled productivity for our entire Digital Media & Communications Business product portfolio.
Digital IP Development Team System LSI Division . In addition to significantly lower fabrication costs. and markets. the resulting alldigital solution has the added benefit of easing migration to different platforms. And the ability to step back and challenge the conventional is helping us lead the way to a more secure digital future. That’s what we did when we set out to develop a small but very important component of smart card information security. Ihor Vasyltsov Senior Engineer. technologies.0 55 Thinking Outside The Box The most important principle in any R&D process is thinking outside the box.
And this ability to consistently be first to market is helping us lead the way to a greener. Yong-Il Kim Manager. Development Team 2 Backlight Technology Group 2 LCD Division . Our cutting-edge R&D capabilities enabled us to seize the first-mover advantage in a new product category at CES 2009 when we unveiled a ready-for-production HD LCD TV with edge-lit LED backlighting when others were just showing mockups.Arriving First With Speed And Efficiency The thing that’s helped us rise above our rivals in the ultra-competitive LCD panel industry has been our ability to consistently develop technologies and ship products ahead of the rest. more profitable future.
Angelo Vicari General Manager.07 Connecting With Consumer Lifestyles At the Samsung Experience in downtown New York. Samsung Experience . And those lasting impressions are helping us lead the way to a richer. more enjoyable future. visitors can enjoy an engaging and memorable hands-on experience with over 300 of the latest and greatest Samsung products. Our staff of “brand ambassadors” strives to provide exceptional service to each customer while delving deeper into their needs to help them make the connection with Samsung products that fit their lifestyles.
Southeast Asia Sales & Marketing Group Mobile Communication Division . focused product line and resource allocation choices enabled us to achieve dramatic gains in both sales and brand awareness across Southeast Asia and Oceania.Making Smart Choices That Grow Markets One of our strategic goals in 2008 was to grow our mobile phone market share in emerging markets. And those are the kind of choices that are helping us lead the way in more markets everywhere. While many of our rivals lost ground in last year’s market downturn. a trend we expect to continue in 2009. our smart. Jee-Hyun Dina Lee Manager.
meticulous consideration of each process step. Our sophisticated “liquid crystal” bezel design was the fruit of this exhaustive investigative and collaborative process. Hee-Bong Kim Junior Designer.09 Creating Value That Can’t Be Touched The inspiration for our TV designs comes out of a product development process that includes extensive research on the user experience. and countless development and marketing discussions. And that unique design touch is helping us lead the way in living rooms around the world. Design Group Visual Display Division . transforming our TVs into veritable objects of art.
Message from the CEo .
We actively worked to build shareholder value and promote sustainability. ” THE YEAR IN REVIEW Our core semiconductor. “ Despite the global economic downturn in 2008. exchange rates increased in volatility. pursuing innovative R&D. Despite this challenging business environment. safety. Our non-memory semiconductor businesses delivered dramatic growth despite significantly weakened market demand. Dear Samsung Electronics stakeholder: As the US financial crisis deepen the global economic downturn in 2008. and health as well as reduce energy consumption as part of our growing commitment to sustainability. we earned 3. and falling asset values impacted real income. 2 in the annual patent ranking. mobile phone. and building a strong. our shares faired comparatively better. a 29% increase over 2007 that kept us a solid No. our technical leadership and ongoing cost-reduction efforts enabled us to further extend our lead over our industry rivals. Our LCD business overcame slowing demand and tougher competition in the second half of the year as we maintained our industry-leading net profit margin and extended our lead over the competition in the 40-inch-and-larger TV panel market.11 Our vision of becoming one of the world’s leading companies is coming to life with creative innovation and progressive entrepreneurship. Approximately 40% of our global employees are now involved in R&D as we develop the technologies of tomorrow. flat-panel. Our ongoing efforts to reduce toxic chemicals and improve product recycling were recognized by our second place ranking in Greenpeace’s quarterly Guide to Greener Electronics.and customer-focused brand marketing programs. While DRAM and NAND memory prices dropped sharply in 2008. Even as volatility in financial markets was triggering the global economic downturn. We also launched a number of initiatives to improve workplace environment. While the majority of global bourses and technology stocks lost more than half their value in 2008. and TV businesses enjoyed continued growth. Fueled by creativity. solidifying our position as the undisputed industry leader as we marked our third consecutive year at the top of the LCD. This difficult situation was further aggravated as high oil prices fueled inflation. systematic oversight and effective action enabled us to generate continued growth in our core businesses as we delivered yet another solid financial performance. including our successful role as the official wireless communications equipment partner of the Beijing 2008 Olympic and Paralympic Games.5 trillion. We used creativity to strengthen our foundation for global leadership. and overall TV markets. our ambition to become one of the world’s top companies has driven continuous improvement in every area of our organization thanks to our hard work and success in attracting the best and brightest people. declining just 19% as our IR efforts paid off. We also continued to press forward with a variety of market. Our TV business also overcame adverse conditions to grow shipments by 54% over 2007 as our global market share surpassed 20%. we continued to generate stellar growth as our focus on bolstering our lineup with new smartphones and building market share in emerging markets paid off. distinctive brand. In 2008. LCD panel. systematic oversight and effective action enabled us to post continued growth in our core businesses as we delivered yet another solid financial performance with record consolidated sales of KRW 121. enabling us to ship nearly 200 million phones for the year as we demonstrated our potential to vie for the industry’s top spot. we were actively pushing ahead with investor relations initiatives to improve our stock valuation.515 patents in the US. . In mobile phones. we experienced an extremely challenging year with conditions that recalled those we faced a decade earlier during the 1997 Asian financial crisis.3 trillion and a net profit of KRW 5.
We will enhance our flexibility. and other internal synergies as our departments and divisions closely collaborate in each step of product development from concept to launch. the battle for industry leadership is intensifying as we face some of the biggest challenges in our history. We will strengthen our leadership in core businesses and capabilities in key growth fields. creating yet another opportunity to shape the future of our industry. we are laying the foundation for success in key growth fields such as printers. At the same time. potential for growth. and system air conditioners. we will bolster our unrivaled speed. We are confident that our can-do attitude and creative entrepreneurship will empower us overcome our present challenges. demonstrating our ability to turn adversity into opportunity as we have grown to become a world-class consumer electronics company. and risk management capabilities. differentiating our products through design. we have intelligently weathered countless crises over the years. We aim to leverage our cost leadership to be the top global name in every segment of consumer electronics—from TVs to mobile phones. it’s unclear whether we will see the beginning of a recovery this year. We will simultaneously push forward with value engineering and value innovation initiatives that will enable us to eliminate inefficiency. THE YEAR AHEAD With the global economy limping along in the aftermath of last year’s crisis. We will also upgrade our enterprise-wide risk management system to enhance our ability to monitor and address risk in a timely manner. and expanding our worldwide sales network. notebook PCs.2008 Consolidated sales Breakdown By division DiGiTAL MEDiA 35% TELECOMMUniCATiOn nETWOrkS 28% SEMiCOnDUCTOr 17% 12% 8% LCD Other * Based on 2008 organizational structure “ We will take the next step toward being one of the world’s top companies. This has made demand forecasting and planning extremely difficult. bolstering our global capabilities by expanding our B2B distribution channels. That said. ” . efficiency. From a survival perspective. intelligently rising above the current crisis by strengthening our leadership in core businesses and capabilities in key growth fields as we drive creative innovation. We will pursue value creation in ways our competition will find difficult—if not impossible—to imitate. We also aim to extend our market leadership in components such as semiconductors and LCD panels with cutting-edge technologies and solutions. and waste in our processes as we take our cost-reduction efforts to the next level. At the same time. redundancy.
Southeast Asia. Storage System LCD SAMSUnG ADV AnCED inSTiTUTE OF TEChnOLOGy / nEW BUSinESS TEAM We will actively prepare for the future by driving creative innovation and growing new businesses.13 2009 organizational struCture DMC Digital Media & Communications Business Visual Display. CIS. Latin America. We must create an organizational culture that promotes continuous individual growth and innovation driven by an entrepreneurial spirit that is not afraid of failure as we aggressively develop and use creative methods and tools that our rivals cannot easily imitate. Yoon-Woo Lee Vice Chairman & CEO Samsung Electronics . A decade ago when we marked our 30th anniversary. we are united in our determination to intelligently rise above the present challenges armed with the same “prepared for anything” attitude. Digital Printing. Europe. becoming one of the world’s top companies will require radical changes in our values and the way we think and work. Korea C E O DS Device Solution Business Memory. While sheer determination and passion were sufficient to make us a world-class consumer electronics maker. and creative thinking that have served us so well in the past. As we mark our 40th anniversary in 2009. We look forward to the opportunity of earning your trust and respect over the coming year as we take the next step toward our vision of being one of the world’s leading companies. Telecommunication Systems. System LSI. This foundation will position us to steadily build growth momentum as we continue to identify and develop tomorrow’s technologies and business opportunities. Southwest Asia. Mobile Communication. China. Middle East and Africa. Digital Appliance North America. enterprising spirit. Computer Systems. a radical restructuring for survival enabled us to weather the Asian financial crisis and paved the way for our emergence as a world-class consumer electronics company.
Samsung Electronics CEO.Executive Vice President. Samsung Electronics [2007~2009] . Management Support & Innovation Group. and the Internal Transaction Committee. Management Support Team. North America Operations. It also plays a key role in increasing shareholder value as well as safeguarding shareholder rights and interests. Digital Media Business. and the oversight of senior management performance. Samsung Electronics [1996~1998] 2. Finance Team. Gee-Sung Choi .Head. The board’s scope of responsibility encompasses all matters required by statute.Vice Chairman. Digital Media & Communications Business. Samsung Electronics [2007~2008] . Samsung Electronics [2002~2004] . Management Support Team. Semiconductor Sales Division. Corporate Executive Staff. Samsung Electronics [2009~Present] . Samsung Electronics [2003~2007] . the board has set up and delegated authority to a number of committees staffed by directors with relevant experience and professional knowledge to aid in timely.Executive Vice President. our modern. Management Support Team. As provided for by law.Vice Chairman. In 2008. Samsung Electronics Vice Chairman. Yoon-Woo Lee . Samsung Advanced Institute of Technology [2004~2005] .President. Samsung Electronics [1999~2002] . Samsung Electronics [1998~2009] .Senior Vice President. Samsung Electronics [1996~2004] 3. our board is composed of nine directors.Head. Corporate Executive Staff. Visual Display Division. The board presently operates four committees: the Management Committee. At Samsung Electronics.Head. Samsung Advanced Institute of Technology [2005~2007] . Corporate CTO. Global Collaboration. Samsung Strategic Planning Office [2006~2007] . efficient decision-making. As of May 2009. Ju-Hwa Yoon . The board actively supports top management in effectively managing the company to maximize corporate value. Global ERP Task Force. Global Collaboration. Corporate Executive Staff. Samsung Electronics [2009~Present] . specified in the articles of incorporation. Global Collaboration. Samsung Electronics [1998~2004] .President. five of whom are outside directors. Samsung Electronics [2008~Present] .Head.Vice Chairman & CEO. Outside Director Recommendation Committee. Audit Committee. Corporate Executive Staff.President. Samsung Electronics [1998~2002] .Senior Vice President.Vice President. or delegated by resolution at the general shareholders’ meeting. These matters include the setting of basic management policies.Senior Vice President. 1. Sang-Hoon Lee . Overseas Support Team and Management Infrastructure Task Force. Semiconductor Business.President.Head. Samsung Electronics [2007~2009] . Samsung Reformation Headquarters [2004~2006] . Samsung Electronics [2004~2007] . board-centered corporate governance system ensures transparency and accountability in management.Head. Corporate Management Team. Telecommunication Networks Business.Vice Chairman. Samsung Electronics [1996~1998] 4. the board convened five times to discuss and decide 23 agenda items. Management Support & Innovation Team.Head. Corporate Executive Staff. guidance on strategic business decisions. Management Innovation Team. Samsung Electronics [2009~Present] .President & CEO. Corporate Auditing Team. Samsung Electronics [2008~2009] . Digital Media Business.Vice Chairman & CEO. Device Solution Business President. Management Support Group 2.AbouT THE boArD We are committed to delivering superior corporate and shareholder value through creativity and transparency in management. Samsung Strategic Planning Office [2007~2008] .
15 1 5 2 6 3 7 4 8 9 5. Sungkyunkwan University [1999~2003] . Kim & Chang Law Office [1999~Present] . Kap-Hyun Lee . Boathouse Ltd. GE Asia-Pacific & Senior VP. Monetary Policy Committee.President. Seoul National University [1988~Present] . Chae-Woong Lee .President. College of Business Administration. Korea Chamber of Commerce & Industry [1999~2000] .Professor of Economics. GE [1997~1999] 6. Korean Academy of Management [2002~2003] 7.Outside Director [2001~Present] .President. Social Protection and Rehabilitation Bureau at the Ministry of Justice [1998~1999] .Director. Dong-Min Yoon . Sungkyunkwan University [1982~2007] .Advisor. Oh-Soo Park . Malm . Planning Management Dept. Korean Academy of Business Ethics [2007~2008] .Vice Chairman. College of Business Administration. Korean Academy Society of Business Administration [2008~Present] . The Bank of Korea [1994~1998] . Korean Economic Association [2005~2006] .Outside Director [2006~Present] . Sungkyunkwan University [2007~Present] .Dean.President. Korea Exchange Bank [1999~2000] 8. Seoul National University [2003~2005] .Vice Chancellor & Professor of Economics. Boston Consulting Group [2001~2007] .Outside Director [2006~Present] . Emeritus.Professor of Economics. at the Ministry of Justice [1997~1998] 9.Chief. Dell Computer Asia Pacific & Senior VP.President.CEO & President.Outside Director [2006~Present] .President.Professor.Member. Goran S.Attorney at law.Chairman & CEO.Outside Director [2001~Present] . Dell Computer [1999~2000] . [2000~Present] .
377 62.360 (13.” “foresees.791 (12. all data presented in this report is from our consolidated financial statements.128) 1.934 This annual report includes forward-looking statements which relate to future events and can be generally identified by phrases containing words such as “believes.294 6.972 105. performance.366 33.426 47.889) 14.2008 FInAnCIAL suMMArY Samsung Electronics and Consolidated Subsidiaries [in KRW billions] 2006 2007 2008 InCoME sTATEMEnTs Sales Operating Profit Net Income 85.375 37. .940 93. uncertainties and other factors that may affect our actual results.” “estimates. Unless otherwise specified.081 (11.403 55.” or other words or phrases of similar meaning.926 98.600) 13.526 bALAnCE sHEETs Assets Liabilities Shareholders’ equity 81.301 42.421 121. These forward-looking statements are not guarantees of future performance and may involve known and unknown risks.002) (1.098) (3. achievements or financial position. making them materially different from the actual future results.032 5.129 7.508 8.973 7.924 CAsH FLoWs Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities 15.” “expects. achievements or financial position expressed or implied by these forward-looking statements.835 9.” “anticipates. performance.” “forecasts.
0 2008 Cash Flows from Operating Activities Cash Flows from Investing Activities CAsH FLoWs [in KRW trillions] 15.4 -12.8 9.1 14.0 2007 6.1 2008 .0 2007 -11.17 Sales Operating Profit sALEs AnD opErATIng proFIT [in KRW trillions] 121.1 2006 9.8 13.3 98.5 85.1 2006 -13.
520.06 13.35 2006 2007 -0.347.517. . The 2006 and 2007 results have been restated accordingly to reflect this change for comparative purposes.976.191.346.35 Operating Profit 13.568.094.694.115.52 24.001 2008 LCD [in KRW trillions] [in KRW millions] 2006 2007 2008 21.19 30.40 24.629 21.113.89 2.89 2006 2007 2008 2006 2007 2008 26.246 34.12 0.86 2006 2007 2008 Net Sales 2.183 1.57 22.180 17.885.13 22.98 Net Sales Operating Profit 22. This restructuring saw the operations of the Digital Appliance business merged into the Digital Media and Telecommunication Networks businesses.74 2006 2006 2007 2008 Net Sales Operating Profit 0.827.67 1.968 857.047 * The above presentation reflects the results of an organizational restructuring which took place on May 22.239 22.328 2.11 0.35 Net Sales Operating Profit 22.568 2.174 SEMiCOnDUCTOr [in KRW trillions] [in KRW millions] 2006 2007 2008 22.523 2.989 42.768 396.52 17.354 1.83 5.129.970) 2.pErForMAnCE bY busInEss Net Sales Operating Profit DiGiTAL MEDiA [in KRW trillions] [in KRW millions] 42.548 26.353.70 2.912.359 (1.501 2. 2008.33 22.624 5.331.062.696.205 1.845 22.883 739.09 2007 2008 [in KRW millions] TELECOMMUniCATiOn nETWOrkS [in KRW trillions] 34.892.311 30.677 2.91 2.
we’re also playing a key role in the development and standardization of next-generation 4G network technologies such as Mobile WiMAX and LTE. and MP3 player system-on-chip devices. In addition to our long-standing market leadership in DRAM. audio and video equipment. As our premium designs and unique features propel us ever closer to the top of the global mobile phone market. We also expanded our market base in the telecommunication systems business by delivering Mobile WiMAX network equipment to major operators in the US. our continued investment in product development and manufacturing technology. and digital information display markets. and netbooks as we continue to work on flexible displays and other nextgeneration display technologies. we are the industry’s top supplier of flash memory. printers and multifunction devices. we’re targeting growing demand for 40-inch-and-larger LCD panels. Our home appliances business also led the industry in growth as we continued to win new customers around the globe. Our success was driven by the steady rollout of premium phones with advanced features such as touchscreens with “haptic” tactile feedback and high-resolution cameras of up to 8 megapixels as well as aggressive marketing in key markets. solidifying our position as the global No. and home appliances. 2 in the global laser printer and multifunction printer market. Backed by timely investment in new panel and module production capacity. LED-backlit LCD TVs. In addition to launching new panels for LED-backlit TVs. Japan. In 2008. cameras and camcorders. We are a global leader in LCD panels for the TV. we continued to drive the industry forward with work on flexible displays and other next-generation technologies. monitor. we marked our third consecutive year at the top of the global TV and LCD monitor markets as we continued to deliver products with innovative designs and features. Our product portfolio includes the industry’s widest range of cutting-edge mobile phones and MP3 players as well as turnkey telecommunications network solutions. computers and peripherals. In addition to our global market leadership in TVs and monitors. We are also on the leading edge of development in emerging high-tech market segments such as solid-state drive (SSD) storage and “fusion” or hybrid semiconductor solutions. SRAM. we also expanded our storage systems lineup with external hard drives. Our comprehensive product portfolio includes digital flatpanel TVs and monitors. Our printer business continued to hold steady at No. Today. . 2 maker. we continue to deliver innovative products that combine form and function such as the industry’s thinnest LED TVs and the industry’s most compact color laser printers and multifunction devices. notebook. display driver ICs. We are a global leader in memory. digital information displays.19 busInEss ovErvIEW 2008 HIgHLIgHTs We are a global leader in consumer electronics and premium home appliances. and hard drive storage systems. Russia. we shipped more than 196 million mobile phones worldwide. digital information displays. We are a global leader in mobile phones and telecommunications equipment. kept us solidly at the forefront of the memory industry. In 2008. The successful launch of our first 8th generation LCD line in 2007 and growing demand for 40-inch-and-up LCD TV panels and other high-margin products kept us at the top of the global industry in 2008 for a seventh consecutive year as the industry’s most profitable panel maker. we have now led the industry in sales revenue for seven consecutive years since 2002. and other markets. combined with unrivaled economies of scale. In addition to gaining significant market share in key logic and microprocessor segments. logic semiconductors. Despite rapidly declining DRAM and flash memory prices in 2008. and ultra-highdefinition TVs.
Sponsored the African Cup of Nations in Ghana .Led J.Unveiled the industry’s first bluephase mode LCD panel .Launched the M8800 Pixon touchscreen phone with 8-megapixel camera NOVEMBER .Signed sponsorship deal for Guangzhou 2010 Asian Games .5 GHz certification .Joined the Korea Fair Trade Commission’s Triangle Cooperation Program .Swept top honors at CTIA Wireless 2008 with M800 Instinct phone .D.Launched production of industry’s first 50nm 1Gb DDR2 DRAM .3 GHz certification .Entered the Japanese Mobile WiMAX market .Named “Best Managed Company in Korea” by FinanceAsia .Launched production at a flatpanel TV plant in Russia .Led the global TV market for the third consecutive year .Acquired WiMAX Forum 2.Awarded deployment contracts for Mobile WiMAX service in Taiwan and Kuwait . 1 in large LCD panel market .Signed semiconductor patent cross-licensing agreement with Matsushita FEBRuARY .Hosted Samsung Future Mobile Forum 2008 .Marked 38th consecutive month at global No.Launched the i900 Omnia flagship smartphone .Signed agreement with Sony to build second 8th generation LCD line at S-LCD MAY .Surpassed USD 50 billion in exports .Led the global TV market for the second consecutive year .Shipped 20-millionth E250 mobile phone . Power and Associates customer satisfaction rankings for French door and side-by-side refrigerators for the 4th consecutive year in the US .Launched SyncMaster T series LCD monitors with liquid-crystal styling .Launched first fast-cook oven with steam cooking and cleaning .Led the global A4 color laser multifunction printer market for the first time in Q2 JuLY .Opened Samsung d’light brand showcase at Seoul HQ .Signed semiconductor licensing agreements with ARM and Tensilica .Launched u900 Soul flagship slider phone .Sold 2-millionth flat-panel TV with liquid-crystal styling just seven months after market debut .Launched MultiXpress multifunction printer series with the industry’s fastest A4 color and monochrome print speeds JuNE .Launched production of the industry’s first 50nm 2Gb DDR3 DRAM OCTOBER .Led US mobile phone market in Q3 for the first time .Unveiled the P3 MP3 player with haptic UI .Sold 150-millionth mobile phone in the US .Deployed the first Mobile WiMAX network in Russia .Initiated discussions with Samsung SDI to establish active-matrix OLED venture AuGuST .Hosted 3GPP working group meetings .Launched the first US Mobile WiMAX service with Sprint (Clearwire) .Led European home theater system market in January-to-August sales .Served as the official wireless telecommunications equipment partner of the Beijing 2008 Olympic Games .Sold 10-millionth microwave oven in Russia .Launched SyncMaster T series full-HD-ready LCD monitors .Launched Series 6 full-HD plasma TVs .Unveiled 90nm smart card IC chip .Launched first full-HD LCD TVs with liquid-crystal styling .Launched W420 Haptic touchscreen phone with tactile touch feedback .39 million LCD TVs in Q3 .2008 AT A gLAnCE JANuARY .Launched Korea’s first remote management system for commercial air conditioners APRIL .Launched production of highperformance 256GB solid-state drives DECEMBER .Served as the official wireless telecommunications equipment partner of the Beijing 2008 Paralympic Games .Appointed Yoon-Woo Lee vice chairman and CEO .Launched Armani premium LCD TV series .Launched production of 300mm wafers in Singapore with Siltronic .Shipped an industry record 5.Opened the Samsung Experience brand shop in Dubai .Launched the industry’s first frontload washer with “bubble wash” technology SEPTEMBER .Launched the industry’s first 3D-ready plasma TVs MARCH .Surpassed sales of USD 100 billion in 2007 .Acquired WiMAX Forum 2.Acquired Consumer Complaints Management System certification from the Korea Fair Trade Commission .Launched production at a LCD module plant in Slovakia .Reached agreement with Intel and TSMC on transition to 450mm silicon wafers .
21 DMC Ds Digital Media & Communications Business ViSUAL DiSpLA DiViSiOn y DiGiTAL prinTinG DiViSiOn COMpUTEr SySTEMS DiViSiOn MOBiLE COMMUniCATiOn DiViSiOn TELECOMMUniCATiOn SySTEMS DiViSiOn DiGiTAL AppLiAnCE DiViSiOn Device Solution Business MEMOry DiViSiOn SySTEM LSi DiViSiOn STOrAGE SySTEM DiViSiOn LCD DiViSiOn Series 7 LED TV .
our high-tech. In short. computers. ViSUAL DiSpLA DiViSiOn y DiGiTAL prinTinG DiViSiOn COMpUTEr SySTEMS DiViSiOn MOBiLE COMMUniCATiOn DiViSiOn TELECOMMUniCATiOn SySTEMS DiViSiOn DiGiTAL AppLiAnCE DiViSiOn . beautifully designed products are delivering a whole new kind of satisfaction. printers. we’re creating user experiences that empower consumers to more easily access and enjoy the myriad benefits of digital technology with state-of-the-art visual displays. mobile phones. and home appliances.DMC Digital Media & Communications Business At Samsung Electronics. audio and video equipment.
Our leadership took another leap forward in 2009 as we introduced a new whole new “species” of high-definition television that is sure to be a global hit. professional monitors. 1GB of onboard memory. stylish ultra-slim enclosures. Today.1-channel Blu-ray system is an eye-catching match for our TVs with support for streaming audio and video and Bluetooth wireless audio connectivity. HT-BD7200 Blu-Ray Home Theater System Winner of a Best of CES 2009 award in the home audio category. 120 Hz monitors. an ultra-slim profile of 29. their own home network. 21. and advanced interactivity and connectivity options. our Series 7 LED TVs add a dazzling new dimension to home entertainment. We intend to once again lead the industry in 2009 by rolling out a large number of new products.23 01. we launched a number of premium monitors. including the SyncMaster 70-series with liquid-crystal bezels. Series 7 LED TVs Showcasing our gorgeous liquid-crystal styling. we leveraged our leadership in Blu-ray technology to unveil the industry’s slimmest Blu-ray player to date featuring our sophisticated liquid-crystal styling in a wallmountable unit just 39 mm thick. We also continued to innovate in the video space with an ultra-compact full-HD camcorder featuring a built-in 64GB solid-state drive. The result is exactly what customers want—full-featured TVs with superior picture quality. and advanced interactivity and connectivity options that allow customers to enjoy pictures. SPF-107H Digital Photo Frame This chic 10-inch photo frame with liquidcrystal styling boasts an ultra-slim 23 mm profile. including our SyncMaster T-series with the same liquidcrystal bezel design featured on our LCD TVs to commemorate the 20th anniversary of the SyncMaster brand. 03. movies. brilliant LED backlighting. In the audio and video equipment field. laptop computer monitors. LCD monitors are another field we have led the world in since the third quarter of 2006. and a highresolution 1. we continue to drive innovation in the flat-panel TV market with new ultra-slim plasma TVs and 240 Hz full-HD LCD TVs. delivering the breakthrough products and superior value that will keep us at the forefront of the global TV market. this sleek wall-mountable 2. and large-format digital information displays with ultra-slim bezels for video wall applications. hybrid still/video cameras. . In 2008.9 mm. elegant liquid-crystal bezel styling. and a compact digital camera with a 24 mm wide-angle lens and 10x optical zoom. ultra-slim LED-backlit monitors. and music from the Internet. or even USB devices. 02 01 Visual Display We led the global TV market for the third straight year in 2008 as we continued to win over customers with outstanding picture quality.9% 2008 GLOBAL TV MARKET SHARE 03 02. replacing the conventional cold-cathode fluorescent lamp (CCFL) backlighting with ecofriendly LED backlighting. Our new LED TV lineup is the next evolution in LCD technology. Our Blu-ray and DVD home theater systems took numerous awards in Europe and around the world in 2008. and dramatically lower power consumption.024 x 600-pixel screen that brings precious memories to life.
our new lineup of stylish. MultiXpress C8385ND Color Laser Multifunction Printer The industry’s fastest A4 color laser multifunction printer boasts advanced workgroup features. and battery life. distinctive design. With the launch of third-generation netbooks in 2009 featuring greatly improved design. this notebook segment—one we aim to be a top-three player in—is quickly gaining momentum. our focus on eco-performance earned us the top product award at Korea’s National Environmental Management Excellence Awards as well as the greatest number of German Blue Angel eco-label certifications in the office equipment category. N310 Netbook PC Conceived by award-winning designer Nato Fukasawa. In 2008. 05 . 05. and a number of convenience-enhancing features that give a major boost to office productivity. quality netbooks proved to be exceptionally popular in advanced markets like Europe as well as emerging ones such as the CIS and China. and eco-friendly engineering. In 2008. We will also be focusing on the high-end ultra-light premium notebook market as well as desktop PCs with advanced security and remote management features for the enterprise market. Computer systems We are currently in the process of relaunching our computer business with a focus on mobile computing. catapulting us into the ranks of the world’s top-10 notebook makers. outstanding print quality. Our growing family of workgroup solutions—including the world’s fastest A4 color laser multifunction printer with speeds of up to 38 pages-per-minute—is backed by an organization committed to providing complete professional color printing solutions to the enterprise marketplace.7% 2008 GLOBAL LASER PRINTER AND MULTIFUNCTION PRINTER MARKET SHARE “ 04 Digital printing We are working hard to become the world’s top laser printer maker with an attractive. ease-of-use.13. We’re making life richer and more enjoyable with digital products that offer innovative features. ” 04. energy-efficient lineup that includes the industry’s smallest and sleekest monochrome and color laser printers and multifunction printers. easy-to-use. this elegant and compact netbook packs all the latest features and technology in a package designed for maximum mobility.
we redefined the user experience with a steady parade of innovative phones. We intend to keep the hits coming in 2009 with high-end touchscreen models with features like gorgeous active-matrix OLED screens. and minimalist design. and DJ-style music mixing and scratching. I8910 HD The world’s first mobile phone capable of recording 720p HD video. Our premium lineup of full-touchscreen phones. and high-resolution camera phones enabled us capture the No. highresolution cameras.9 mm full-touchscreen phone features our latest TouchWiz UI. our full-touchscreen phones have taken global markets by storm. 07 16. After beginning the year with the breakthrough Haptic (W420) touchscreen phone featuring our dynamic TouchWiz UI with haptic (vibration) feedback. we went on to add the Innov8 (i8510) smartphone with 8-megapixel camera and the Omnia (i900) flagship touchscreen smartphone. During the year. 07. smartphones. DNSe™ 3. We continue to deliver unique.7-inch active-matrix OLED touchscreen and a high-resolution 8-megapixel camera.0 sound engine. In 2008. 1 market share crown in France and the US. we shipped over 196 million phones worldwide as we held steady at No.7% 2008 GLOBAL MOBILE PHONE MARKET SHARE .25 mobile CommuniCation Our mobile phones have the world talking. including a stunning 3. Bluetooth. the latter market in which we shipped our 150-millionth phone to date during the year. 2 in global market share. a 3-megapixel camera with video recording. selling over 20 million units based on features like our sophisticated TouchWiz UI. 06 06. HD video recording. We also saw a number of our entry-level phones exceed sales of 10 million units in emerging markets as our full-range phone lineup continued to attract new customers to the Samsung brand. this upgrade to the original Omnia smartphone features a long list of high-tech features. physical keypads. Samsung Star This sleek 11. and a host of other multimedia features that are helping it take the mid-range market by storm. In their first 18 months on the market. premium phones that wow customers around the globe with compelling design and cutting-edge features.
0 sound engine. YP-P3 MP3 Player Winner of a Best of CES 2009 award in the MP3 and video player category. Our current lineup includes the flagship P3 touchscreen media player with haptic feedback.08 “ We’re transforming life on the go with mobile phones that shine with advanced multimedia features. and home network set-top box solutions. and uniquely stylish design. Since we unveiled the world’s first commercial Mobile WiMAX service in 2006. Our MP3 player business continues to aggressively compete in global markets with a full lineup of products that ranges from premium media players to voice recorders. the touch with VibeWoofer™ bass vibration.0 sound engine.16m) solution that promises to more than quadruple data rates. this modular system features separate radio and digital processing units for maximum flexibility in installation. we continue to lead the way in developing and delivering total solutions for tomorrow’s 4G Mobile WiMAX and Long Term Evolution (LTE) mobile telecommunications networks that will make mobile broadband a ubiquitous part of life in the coming years. our flagship full-touchscreen media player dazzles the ears with its DNSe™ 3. and the eyes with our upgraded MP3 TouchWiz UI with vibration feedback. Today.5 GHz certification. 09. we demonstrated the industry’s first Mobile WiMAX II (802. ” teleCommuniCation systems We continued to achieve remarkable growth with a wide range of products including Mobile WiMAX. You can expect us to continue to deliver a steady stream of uniquely Samsung mobile phones and MP3 players designed to meet the needs of today’s fast-changing marketplace as we deliver value and enjoyment that far exceeds consumer expectations. Japan. u-RAS Flexible Mobile WiMAX Base Station 09 The first Mobile WiMAX product to win WiMAX Forum 3. we will be focusing on generating both qualitative and quantitative growth as we expand our leadership in the premium market as well as our presence and marketing in emerging markets. . the Q1 and Q2 players with our latest DNSe™ 3. user interfaces that deliver tactile feedback. and Russia. 08. and the VP1 voice recorder. we have led the industry with system and equipment deliveries to 23 major operators in 19 countries around the globe. enterprise PBX solutions. As we look ahead to 2009 and beyond. including the US. In 2008. CDMA and HSPA wireless equipment.
11. our vacuum lineup includes models with the industry’s quietest bagless technology and steam cleaning capability as well as advanced robot vacuums. Digital applianCe We are a leading home appliances maker known for delivering products with innovative technology. exceptional design. Our washing machines have features like “bubble wash” technology that improves cleaning performance while cutting washing time in half. Our room air conditioners have advanced energy-saving features as well as the ability to automatically monitor and control room temperature and humidity while simultaneously cleaning the air. energy savings. AQV12ABBN Wall-Mounted Air Conditioner This split-system air conditioner with inverter-driven compressor combines sophisticated styling with a host of advanced cleaning and bacteria-killing features to deliver cooling that is as refreshing as it is hygienic. RFG297AARS French Door Refrigerator This stainless steel beauty features our latest Twin Cooling Plus System™ with independent cooling and humidity control of each compartment to keep food fresher. Our commercial air conditioner lineup now boasts the industry’s most-powerful outdoor units and designer indoor units featuring many of the design and health-enhancing features of our home units. Our side-by-side refrigerators feature our patented Twin Cooling System™ for independent cooling and humidity control of each compartment to keep food at its freshest. ” 10. and a diamond-textured stainless steel drum that is gentler on fabrics. ecology. an external ice and water dispenser. Last. Our latest home appliances continue to win praise and customers around the world for their innovative features and attractive designs. we also continued to pursue and win new customers in emerging markets with products designed to match local lifestyles. and health. Our new line of fast-cook ovens adds steam cooking and cleaning. and plenty of flexible storage options for larger items with one of the largest capacities in its category. and health. doors that automatically close when left slightly open. and outstanding ease-of-use. In the coming years. In 2008.27 10 “ We’re working hard to bring more beauty and convenience home with appliances that lead the way in esthetics. As we burnished our premium brand image in advanced markets with our everpopular high-end front-load washing machines and side-by-side refrigerators. we will be working even harder to fill the lives of our customers with beauty and convenience as we deliver appliances that lead the way in promoting esthetics. we saw shipments steadily rise worldwide despite the global economic downturn as we posted the highest growth rates in the industry. ecology. 11 . but not least. advanced vibration-reduction technology. energy savings.
12 12. high-resolution 8-megapixel camera. sharper action scenes. 13. It also supports wireless networking for instant access to the latest Blu-ray features as well as streaming audio and video via both the Internet and home networks. . this sophisticated player is the industry’s slimmest to date at just 39 mm. BD-P4600 Blu-Ray Player Endowed with liquid-crystal styling. sophisticated liquid-crystal styling. and improved interactivity and connectivity features. 14. 750 Series LCD TVs With a 240 Hz refresh rate for smoother.8-inch active-matrix OLED screen. this TV family will keep you more than entertained. and a host of other sophisticated multimedia features. ultra TOuCH This premium full-touchscreen phone will dazzle with a brilliant 2.
29 13 14 A .
Shanghai. TouchWiz UI. powerful deep-steam cleaning. and other design innovations are playing a major role in growing our market share and enhancing our brand image. and dramatically lower water and electricity requirements. Milan. Los Angeles. and a unique design story. Tokyo. our outstanding capabilities are recognized at some of the world’s most prestigious design competitions. our quest continues to develop the innovative designs that will create compelling new user experiences that will keep our customers on the cutting edge of technology and style. In 2008. and Delhi. Each year. We are also actively involved in nurturing tomorrow’s world-class designers through the Samsung Art & Design Institute (SADI) and the Samsung Design Membership program for college and university design majors. We also topped the corporate and creative categories in the iF Ranking based on our performance at the iF Design Awards over the past three years. 15.15 DESiGn At Samsung Electronics. Our elegant liquid-crystal styling. Anchored by the Corporate Design Center in Seoul. we had another outstanding year as we marked our fifth straight appearance at the top of the overall corporate rankings at the Industrial Design Excellence Awards based on our five-year award performance. superior usability. WF448 Front-Load Washer This 2009 CES Eco-Design Award winner is gentler on clothing as well as the environment with the category’s largest load capacity. our global design network includes centers in London. our design philosophy focuses on creating an “emotional journey” for our customers by delivering a holistic user experience that encompasses distinctive product styling. whisper-quiet vibration reduction technology. . Today.
and an eSATA/USB combo port. vivid images with a 50.0 sound engine. 18. this speedy laser can print up to 24 pages a minute. this powerful notebook delivers a powerful combination of multimedia performance and portability. a sleek 30 mm profile. dedicated 3D graphics. 19. this music-focused handset jams with stereo speakers and DJ-style mixing and scratching on a brilliant 2. A convenient “print screen” button makes it easy to get a hard copy of whatever is on the computer screen. a 16:9 LED-backlit display. Q320 Notebook PC Boasting chic minimalist styling. Beat DJ Featuring audio by Bang & Olufsen ICEpower and our own advanced DNSe™ 3. 17. SyncMaster 70 Series LCD Monitors Showcasing our eye-catching and ecofriendly liquid-crystal styling. these premium monitors deliver sharp. ML-2525 Monochrome Laser Printer Despite its compact size. .8-inch active-matrix OLED touchscreen display.16 17 18 19 16.000:1 dynamic contrast ratio and speedy 2 ms response time. wireless networking. and improved power-saving features.
20 22 A b 21 C .
In 2008.100 researchers are hard at work on tomorrow’s paradigm-shifting technologies and products. . and a Mobile WiMAX II (802.9 trillion—9. And as we continue to expand our investment in core technologies and cutting-edge growth businesses. LED TV Panels Our ultra-slim 10. and much more with an ultra-efficient power envelope.r&D At Samsung Electronics. these stylish 3. We recently reorganized our global R&D network for greater agility. 90nm high-performance smart card chip.5TB. In 2009.5% of parent company sales—resulted in technological breakthroughs like a 256GB solid-state drive. 23 20. energy-. and 14 overseas centers. 21. and user interfaces. In addition to the Samsung Advanced Institute of Technology—the global hub of our R&D organization—this network includes the centers operated by our business divisions. supporting standard-definition video compression and playback. and efficiency.8 trillion in R&D to enhance the competitiveness of our core businesses and develop tomorrow’s technologies. we plan to invest approximately KRW 7. games. sharper images with significantly lower power consumption. this module uses 72 of our low-power 50nm 4Gb DDR3 DRAM chips arranged in nine quad-die packages on each side of the module to boost performance and lower power requirements. 22. Today. the Mechatronics and Manufacturing Technology Center. our ongoing commitment to technology leadership has enabled us to consistently deliver innovative products that enhance and enrich life. our investment of KRW 6. high-performance 3D maps. we are ensuring our global technology leadership grows stronger with each passing year. Story Station External Hard Drives Available in capacities of up to 1.8 mm panels featuring high-quality edge-lit LED backlighting and 120 Hz and 240 Hz refresh rates deliver truer colors and brighter.16m) solution. 32GB DDR3 RDIMM The highest-capacity memory solution for servers and workstations to date. flexibility. 82-inch 120 Hz quadHD-resolution TV panel. our over 42. It also enabled us to ship innovations like front-load washers with time-.5-inch external drives are an ideal desktop PC storage expansion or backup solution. 23. 800MHz Mobile Application Processor This advanced processor gives mobile devices a powerful multimedia punch. and wear-saving “bubble wash” technology and the industry’s most compact color laser printers.
our high-tech components are the building blocks that will help hasten the arrival of an era in which information is truly ubiquitous. In short. and cost competitiveness. enables us to deliver the high-tech semiconductors. our global leadership in technology. combined with highly collaborative customer relationships. production capabilities. LCD panels. and other core components that are driving the rapid evolution of the global electronics and infotech industries. MEMOry DiViSiOn SySTEM LSi DiViSiOn STOrAGE SySTEM DiViSiOn LCD DiViSiOn 24 .Ds Device Solution Business At Samsung Electronics.
We are also at the forefront in developing markets for high performance products such as solid-state drives. 32GB moviNAND™ eMMC Solution The industry’s highest-density embedded storage solution to date. Today. multimedia-savvy mobile devices. In the DRAM segment. we showed remarkable resilience in the face of significantly weakened market demand by continuing to grow sales revenues.and 2. timely advances in production technology and an innovative.35 25 Our industry-leading technologies. In the logic semiconductor field. this “fusion memory” chip combines eight of our 30nm-class 32Gb NAND chips in a multi-layer package that’s a perfect match for today’s high-performance. We are now mass producing a 32GB moviNAND™ chip. In the SSD segment.5-inch hard drives. and close collaborative relationships with key customers have made us a global leader in memory and logic semiconductors as well as a powerhouse in leading-edge hard drives. SRAM.8. S Series Portable External Hard Drives By integrating a USB controller onto 1. Despite challenging market conditions. lighter. 24. memory We have held the number one position in worldwide memory sales since 1993. and flash memory products. we extended our leadership in high-end markets by being the first to offer nextgeneration DRAM products with superior power-saving characteristics. In the memory field. We also increased the competitiveness of our product mix by expanding our lineup to include SSDs designed for server and highperformance PC applications and more attractive “fusion” memory devices such as an improved OneDRAM™ chip and a higher-capacity moviNAND™ chip. and next-generation PRAM. expanding product lineup have enabled us to cut costs and expand market share while continuing to offer the most comprehensive business portfolio in the industry. SecretZone™ encrypted storage. fusion memory devices. 25. and SafetyKey™ password protection. . we will begin mass production of even higher-performance. we are leading the way in providing advanced hybrid memory solutions for high-capacity mobile applications. we have created a series of external drives that are significantly smaller. higher-capacity drives in 2009. In the NAND segment. the industry’s first high-capacity storage solution to use 30nm-class NAND. We plan to strengthen our eco-friendly offerings in 2009 by commencing mass production of a 40nm-class 2Gb DDR3 that consumes one-fourth the energy of today’s mainstay 60nmclass products. both double the capacity of previous offerings. as well as 1Gb OneDRAM™ and 40nm 8Gb Flex-OneNAND™. state-of-the-art production capabilities. we continue to lead the industry in developing new technologies and manufacturing processes for DRAM. we continue to maintain our industry leadership with the world’s smallest 50nmclass 2Gb DRAM. spurring the creation of the next-generation of flash-based storage products and applications. and more energy efficient than the competition with unique data-protection features such as automatic backup.
Our recent accomplishments have been extensive. and low-noise characteristics. We have developed EEPROM-embedded 90nm smart card chips as well as highperformance. mobile TV SoCs. Multi-Mode Mobile TV Receiver SoC The industry’s first solution to combine a multi-mode RF tuner and channel decoder on a single chip. . and enterprise markets. flash memory controllers. In late 2008.3-. home.1% 2008 GLOBAL DRAM MARKET SHARE “ We’re leading the global semiconductor industry into the future with advanced technology.5inch drives with capacities ranging from 40GB to 1. this system-on-chip solution supports mobile TV reception around the world at speeds of up to 280 km/h.5-inch Story Station external drive series for desktop PCs.8-.30. ultra-portable 1. ” 26 26. CMOS image sensors. and strong partnerships. storage system We are a leading producer of high-capacity hard drive storage solutions for the mobile. superior production capabilities. 1. and optical storage SoCs. application processors. 2.5-.8-inch S1 Mini and 2. low power consumption. followed in early 2009 by the 3. Today. We also showed our commitment to the development and design of “greener” products in early 2009 with the launch of our EcoGreen series of 3. we entered the external hard drive market with our ultra-light.5-inch S2 Portable drives.5TB. low-power application processors for mobile devices and the industry’s top-performing wireless USB SoC solution incorporating both a baseband processor and flash memory controller. system lsi We are the industry leader in display driver ICs and MP3 system-on-chip (SoC) solutions as well as a major producer of smart card chips. we continue to drive convergence at the chip level to help our customers deliver products with increasingly powerful and efficient levels of user functionality. and 3.5-inch drives featuring eco-friendly components. Our comprehensive lineup includes 1.
In 2009. we generated an operating income of over KRW 2 trillion for the very first time as we pulled further ahead of our competition as the industry’s most profitable maker. Despite the global economic downturn. Backed by the superb image quality of our S-PVA technology with 240 Hz refresh rates. 27. this 46-inch digital information display is the building block of a virtually seamless video wall solution with one of the narrowest bezel spaces available on the market. This enabled us to capture 25.7% 2008 GLOBAL TFT-LCD PANEL MARKET SHARE . production capabilities.7% of the global market as we marked our 7th consecutive year at the top of the industry.3 mm gap between live screen areas. 25. we focused investment on adding a second 8th generation production line at S-LCD—our joint venture with Sony—as we targeted highly profitable market segments such as the 40-inch-and-up TV panel market. We continued to drive the industry forward in 2008 by unveiling the first 82-inch 120 Hz quad-HD TV panel with four-times the resolution of today full-HD panels. and cost competitiveness.37 27 lCD We are the world’s leading manufacturer of LCD panels backed by the industry’s most-advanced technology. we began shipping the industry’s first 240 Hz ultra-slim TV panels with edge-lit LED backlighting. 46-inch DID with Super-Narrow Bezel With a mere 7. In 2008. significantly lowering power consumption while eliminating a significant source of mercury pollution. we now lead the full-HD TV display market with panels ranging from 26 inches all the way up to 70 inches.
followed by a module plant in Slovakia in 2008 and our second 8th generation line at S-LCD in 2009. In addition to TV panels. ” 28 28. expanding customer base. this digital information display with advanced local-dimming LED backlighting delivers a bright. we produce high-resolution LCD panels in a variety of sizes in both 16:9 and 16:10 aspect ratios for computer monitors and notebook displays that feature wide color gamuts and ultra-thin designs that make it easier to manufacture ultra-slim. and a 14. a 4. We are also innovating in the digital signage market with 46-inch DID panels featuring ultra-narrow 7. .3-inch color e-paper solution. In addition to producing the industry’s first LCD panels with built-in touchscreen features and demonstrating the industry’s first blue-phase-mode LCD that is compatible with refresh rates of 240 Hz and above. we continue to innovate with a 52-inch full-HD 3D panel. Combined with our growing lineup of premium products. ongoing R&D. Today.3 mm bezels for tiled video wall applications and high-brightness 46-inch (1. our market-driven investment paradigm ensures our industry leadership will continue to grow in the years ahead.3-inch flexible plastic LCD panel. the industry’s largest OLED TV panel (40 inches).000 nits) panels for sunlight-readable outdoor applications. 70-inch DID with 2. ultra-portable multimedia devices.“ We’re delivering a brighter. and pursuit of new business opportunities. We launched production at our first 8th generation line at S-LCD in Korea and a module plant in China in 2007. clear picture in even bright outdoor environments with significantly lower power consumption. Strategic expansion of our production capabilities goes hand-in-hand with our ongoing efforts to optimize production processes for greater yields and cost competitiveness. we are leading the way in developing tomorrow’s display technologies. Our current focus is on leading the market for 20-inch-and-larger panels and 16:9 widescreen panels as we step up development of panels for the fast-growing netbook market.500 nits) and 70-inch (2.000-Nit Output Boasting up to four times the brightness of a standard LCD TV. As we look ahead to the future. sharper lineup of LCD panels that satisfies every customer need from picture quality and form factor to ecofriendliness. we plan to expand our 7th and 8th generation lines to meet growing demand for larger panel sizes.
we’re making life a little brighter as we share the hopes of local communities around the world. And as we continue to fulfill our responsibilities as a global corporate citizen. . We’re making the world a little greener as we practice the principles of sustainability. we’ll be bringing the dream of a sustainable future a step closer to reality.39 39 Csr COrpOrATE CiTizEnShip pArTnEr COLLABOrATiOn SUSTAinABiLiTy Corporate Social responsibility At Samsung Electronics. We’re building a better tomorrow as we grow and prosper together with our partners.
Serving to make a world of difference At Samsung Electronics. and economics. we’re committed to making a difference in our local communities. but not least. financial literacy. and regular visitation programs. Brand Marketing Team Samsung Electronics America CorporATE CITIzEnsHIp We’re earning global respect as we share local hopes. and environmental conservation. after-school study programs. we established the CSR Liaison Office within our Partner Collaboration & Enhancement Office in early 2009 to serve as a single point of contact for all internal and external CSR initiatives. the National Students’ Creativity Olympiad. Supporting programS that change liveS Our social contribution initiatives focus on three broad areas. Last. song festivals. we’re involved in a diverse range of community service programs and initiatives spanning the gamut from volunteer service and social welfare to culture and the arts. . We intend to continually expand the scope and effectiveness of our activities in the years ahead as we pursue our vision of becoming one of the world’s most trusted and respected companies. we sponsor events such as the Students’ Science Olympics. our community activities focus on children and youth. academics and education. At home and abroad. and special classes covering science. And the most rewarding part of my job is the smiles I help make.“ In North America. As part of our efforts to more systematically meet our responsibilities. For young students. ” Kris Narayanan Director. our divisions strive to make a difference in ways that have a meaningful connection with their businesses such as supporting a dementia prevention center for the elderly (Memory Division) and programs for the hearing-impaired (Telecommunication Systems Division) and the sight-impaired (LCD Division). Our assistance for the children of lowincome families includes college scholarships for students with disabled parents.
I’ve been a fan ever since my dad and I ran in a Samsung Running Festival. It’s awesome that Samsung does so many cool things for kids!
Merrill Lilly Future Samsung Customer
Working hard for needy neighbors We’ve been meeting the needs of local communities across Korea since 1995 when we formally launched our service organization. Today, Samsung Community Relations oversees approximately 1,500 volunteer teams serving at community welfare centers as well through a broad range of programs benefitting shut-in seniors, child-headed families, the disabled, natural disaster victims, and other needy and underprivileged members our communities. Our in-house fundraising efforts to benefit worthy local charities and causes include a matching grant program as well as biannual 5 km “love runs”, a perennially popular event that attracted over 88,000 employee and partner participants in 2008.
Thinking globally by acTing locally Our commitment to helping local communities prosper is a global one. Our partnership with the Korean National Commission for UNESCO (KNCU) through the Samsung-KNCU Education Fund promotes literacy and basic education in developing nations by underwriting information and communication technology projects. Our Samsung Running Festival fun-runs help raise money for worthy local causes around the world. We are also reaching out to meet the needs of children, schools, and local communities around the globe through major initiatives like our Four Seasons of Hope programs in the US, Adopt-aVillage program in China, and the Samsung Digital Hope program in Southeast Asia.
Whether it’s boosting competitiveness or serving the community, we’re laying the foundation for mutual prosperity with our partners.
Seung-Heon Lee Manager, Partner Collaboration & Enhancement Office
We’re building partnerships of trust to lead the world.
Building winning partnerships At Samsung Electronics, we provide extensive consulting and training support to help our partners improve their technical and manufacturing processes as part of a comprehensive, long-term strategy to foster win-win partnerships. In 2008, we established the Partner Collaboration & Enhancement Office under the direct control of the CEO. We also joined the Korea Fair Trade Commission’s Triangle Cooperation Program—an initiative that provides guidelines to facilitate fair trade; provisions for supplier financing, technical support, and training; and incentives to improve quality and lower costs—to better meet the needs of our more than 1,300 partners. These initiatives, combined with annual partner case study seminars and award events, are just part of our ongoing efforts to create winning partnerships. investing in partner competitiveness We systematically support our partners to ensure their technical, manufacturing, and management capabilities are globally competitive. We help them secure technical competitiveness by supporting the localization of semiconductor fabrication equipment and key components as well as the development of new production methods. We offer opportunities for technical exchanges and benchmarking with industry leaders to keep them abreast of technology and equipment trends. We help them improve manufacturing competitiveness by providing inhouse and independent consultants to facilitate innovations in manufacturing technology and productivity. We also help them improve their managerial capabilities by supporting ERP system implementation and supply chain integration.
Our organic collaboration with Samsung Electronics provided the crucial support we needed to develop our worldclass computer peripherals.
Sung-Il Cho Assistant Manager, S&J Co., Ltd.
Fostering world-class partners We operate over 30 online and offline training programs focusing on executive development, CEO grooming, and specialist training to help our business partners improve the efficiency and effectiveness of their workforces. The executive development courses share management know-how through a variety of workshops and seminars. The one-year CEO-grooming course helps prepare partner CEO candidates for future leadership. The specialist training programs provide coaching in group value engineering, Six Sigma quality management, CAD engineering, ERP systems, manufacturing, and quality control. We also offer numerous technology courses in collaboration with major Korean universities.
collaborating For success We actively collaborate with partners on new technologies, products, and business opportunities as we work together to take our global competitiveness to the next level and deliver a steady stream of best-selling products. One example of this is the dualinjection molding technology we co-developed with seven injection-molding and three mold-making firms to create the sensuous liquid-crystal bezel design that helped us maintain our position as the global TV market leader for a third consecutive year in 2008. Another example is our collaboration to localize production of semiconductor fabrication equipment that has enabled our partner to emerge as the industry’s top equipment maker.
We have also worked to shrink GHG emissions by signing a voluntary agreement with the Korea Energy Management Corporation to cut energy consumption at our manufacturing facilities. the greening of management. products. safety. workplaces. Over the years. and health (ESH) management systems at each of our eight Korean manufacturing facilities. Making sustainability top priority At Samsung Electronics. we established the Environment Strategy Team within our Customer Satisfaction Environment Center to support and enhance our sustainability strategy and execution capabilities. 94% of our global manufacturing network had an internationally certified ESH system in place. . In early 2009. and communities has been our top priority since we launched our sustainability strategy in 1996. low-carbon growth. we have implemented ISO 14001. and we expect the entire network to be certified by the end of 2009.“ We’re working harder to create a healthy. we are focusing on developing highly energy-efficient products and components that will enable us to achieve a standby energy consumption of under 1 watt for our entire product portfolio. Today. processes. Products Environment Group ” susTAInAbILITY We’re helping usher in an era of sustainable.and OHSAS 18001-certified integrated environment. Launched in 2002 as part of our efforts to voluntarily reduce greenhouse gas (GHG) emissions. Hye-Jin Lee Manager. Cooperating to Mitigate CliMate Change We are actively involved in a number of initiatives to mitigate climate change. As of the end of 2008. our Catch CO2 project has enabled us to progressively lower the carbon footprint of each manufacturing process. sustainable world where everyone can dream of a brighter tomorrow.
and disposal of hazardous materials. In 2008. we won two Innovations Eco-Design Awards. more energy-efficient manufacturing processes and technologies as we work to maximize resource and energy efficiency and minimize waste. . including the EU Ecolabel and US EPEAT systems. and eco-label certification. At the CES 2009 show in the US. earninG the riGht to be called “Green” In addition to operating our own eco-labeling program to effectively communicate the eco-friendly features of our products to consumers. handling. We are also striving to reduce GHG emissions over the entire product life-cycle—from design to manufacturing. I hope Samsung makes a lot of good things that will help it get better soon. and disposal—by developing and implementing an eco-design strategy across our operations. ecodesign assessment. sharing the limelight for the most awards earned in the category. and mobile phones made with corn-based bioplastics. we have created an international take-back program to facilitate efficient reuse of resources as well as reduce waste and pollution for a cleaner environment. We also continued to win awards and great reviews from consumers and NGOs for green products such as our LCD TVs with liquid-crystal styling.45 “ Mommy says the world is sick now. we led the global electronics industry’s green revolution by acquiring eco-label certification for over 1. We also comply with increasingly stringent international rules and regulations on the usage. Yoon-Hwan Shin Future Samsung Customer ” GreeninG the product life-cycle We are adopting cleaner. This strategy includes eco-certification of our supply chain. we certify our products under six major international eco-labels. front-load washers with “bubble wash” technology.900 products. usage. Beyond our ongoing efforts to make our supply chain more environmentally friendly.
AnD THE LEADErsHIp goEs on… Creative innovation and progressive entrepreneurship are the strategies that will keep us at the forefront of the global electronics industry. . And with each passing day. they bring us a step closer to our vision of becoming one of the world’s most trusted and respected companies.
47 FINANCIAL STATEMENTS RepoRt of Independent AudItoRs 48 ConsolIdAted fInAnCIAl stAtements Balance SheetS StatementS of Income StatementS of changeS In equIty StatementS of caSh flowS fIve-year fInancIal Summary 50 52 53 55 57 notes to the ConsolIdAted fInAnCIAl stAtements 59 .
these financial statements are the responsibility of the company’s management. 2008 and 2007. and 25% and 24% of the consolidated total sales for the years then ended. an audit includes examining. the consolidated financial statements referred to above present fairly. in all material respects.. expressed in Korean won. respectively. an audit also includes assessing the accounting principles used and significant estimates made by management. we conducted our audits in accordance with auditing standards generally accepted in the republic of Korea. and our opinion expressed herein. In our opinion. as well as evaluating the overall financial statement presentation. and its subsidiaries (collectively referred to as the “company”) as of December 31. lTd. those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. ltd. and the results of their operations. we believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion. respectively. and the related consolidated statements of income. whose financial statements represent 21% and 20% of the consolidated total assets as of December 31. and its subsidiaries as of December 31. evidence supporting the amounts and disclosures in the financial statements. based on our audits and the reports of the other auditors. changes in equity and cash flows for the years then ended. Samil Pricewaterhousecoopers is the Korean member firm of Pricewaterhousecoopers. ltd. each of which is a separate and independent legal entity. 2008 and 2007. we have audited the accompanying consolidated balance sheets of Samsung electronics co. . the changes in their equity and their cash flows for the years then ended in conformity with accounting principles generally accepted in the republic of Korea.. the financial position of Samsung electronics co. we did not audit the financial statements of certain subsidiaries including Samsung card co. “Pricewaterhousecoopers” refers to the network of member firms of Pricewaterhousecoopers International limited. on a test basis.. ltd. insofar as it relates to the amounts included for those companies.. our responsibility is to express an opinion on these financial statements based on our audits.RepoRt of Independent AudItoRs To The Board of direcTors and shareholders of samsung elecTronics co.. 2008 and 2007. those statements were audited by other auditors whose reports thereon have been furnished us. is based solely on the reports of the other auditors.
have been translated on the basis set forth in note 3 to the accompanying consolidated financial statements. dollars. Seoul. in which as discussed. the ultimate effect of this matter on the company’s consolidated financial statements can not be reasonably determined. Box 266.49 samil Pricewaterhousecoopers a menber firm of www. accordingly. the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances. the accompanying consolidated financial statements are not intended to present the financial position. In addition. the procedures and practices used in the republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries. certain subsequent events or circumstances.’s creditors is uncertain as of date of this report. the amount of company’s obligation arising from the suit filed by Samsung motors Inc.o. Korea (yongsan P. accounting principles and auditing standards and their application in practice vary among countries. 2009.com Kukje center Building 191 hangangno 2-ga yongsan-gu. results of operations. changes in their equity and cash flows in conformity with accounting principles and practices generally accepted in countries and jurisdictions other than the republic of Korea. the audit report date. provided solely for the convenience of the reader.samil. 140-702. we draw your attention to note 19 to the accompanying consolidated financial statements. Seoul. . accordingly. this report and the accompanying consolidated financial statements are for use by those who are informed about Korean accounting principles or auditing standards and their application in practice. which may occur between the audit report date and the time of reading this report. 2009 this report is effective as of february 27. accordingly. the amounts expressed in u. 140-600) without qualifying our opinion.S. Korea february 27. if any. could have a material impact on the accompanying consolidated financial statements and notes thereto.
262 334.466.838 560.ConsolIdAted BAlAnCe sheets deCemBeR 31.173 3. dollars (note 3)) 2008 asseTs current assets cash and cash equivalents Short-term financial instruments (note 4) Short-term available-for-sale securities (note 5) trade accounts and notes receivable.644 3.496.650 37.968.888.249.078 3.132 989.901.803 5.087 787.337 982.026.080 301.136 33. net of accumulated depreciation (note 11) long-term available-for-sale securities (note 9) long-term held-to-maturity securities (note 9) equity-method investments (note 10) Deferred income tax assets (note 25) Intangible assets. net (note 8) Short-term deferred income tax assets (note 25) Prepaid expenses and other current assets Total current assets Property.043.264 41.061.979 1.505 2.609 4.460 4.S. 2008 And 2007 (In millions of Korean won and in thousands of u.607 6.618.140 3.558.435.006 1.375.831.947.814.070 781.297.862 379.168 1.698.681 7.292 2. net of allowance for doubtful accounts (note 8) long-term deposits and other assets (note 13) Total assets ￦ 8.279 9.400 29.287 3.857.319 117.687 $ 4.067 12.249 3.069 48.543 3.316.080 211.575.989 $ 7.413 266.956.591.118 continued .084.512 2.771.989 $ 74.125.322 147.292 1. net of allowance for doubtful accounts (note 6) other accounts and notes receivable.071 ￦ 105.799.278 9.712.155 8. including revaluations.807.594 ￦ 93.334.782.541 4. net of accumulated amortization (note 12) long-term financing receivables.946 2.311 2.266.380.898 922. net of allowance for doubtful accounts (note 6) Inventories (note 7) Short-term financing receivables.968.945 266.336.143 7.850.953.655.239.082.704.955 1.339.796 4.300.527 1.556 5.356.223.551.792 1.009.492.035 1.737.059 38.441 2.967 734.537.982 2.068 4.682 $ 83.985.744 33.639. plant and equipment.680.012.284.627 3.329 1.638 2007 2008 2007 ￦ 5.135.726 2.280 704.908 6.014 42.581.543 786.023.562 3.833 11.581 626.
755.908 ￦ 93.492) 410.233 1.760 46.724.954 ￦ 105. dollars (note 3)) 2008 liaBiliTies and equiTy current liabilities trade accounts and notes payable Short-term borrowings (note 14) current maturities of long-term debts (notes 15 and 16) other accounts and notes payable accrued expenses Income taxes payable other current liabilities Total current liabilities long-term debts (note 15) foreign currency notes and bonds (note 16) long-term accrued expenses (note 18) accrued severance benefits (note 17) Deferred income tax liabilities (note 25) other long-term liabilities Total liabilities commitments and contingencies (note 19) equity capital stock (note 20) Preferred stock common stock capital surplus capital adjustments treasury stock (note 23) others accumulated other comprehensive income (note 27) retained earnings (note 21) Total shareholders’ equity minority interests Total equity Total liabilities & equity (8.370 37.949 9.814 141.861 778.181.641 41.009 4.491.137 2007 2008 2007 ￦ 6.153 1.843.593.866 3.135) 313.197 675.419.571 58.632.041 618.165 1.392.165.122 3.486.023.806.047 6.735 (7.665.425.907.286.587.976 3.306.795.385 51.065.693 3.467 $ 95.580.622.174 51.408 1.196) 326.400 $ 95.531 537.808.995 (9.936 1.343.038 3.621 4.207.169 $ 74.088.102.704.037.971 5.148 3.285.114.172 4.658 43.496 44.103 3.072.555 1.185.212 588.061.661 6.945 62.868 6.118 778.076 55.S.111 1.433 1.971.136 the accompanying notes are an integral part of these consolidated financial statements.182.298.696 8.047 6.005 739.728 228.413) 249.682 42.915 1.287 1.908 34.712.574.334.263.234.465.650 ￦ 119.290.606 32.377 3.392 6. .624.467 ￦ 5.376.777.630 2.069.800.941 1.263 1.088.090 1.221 55.327 29.528.803.068.442 310.864 $ 4.444.241.490.029.141 50.588.693 177.070 5.230.923.366 29.774 850.566 $ 4.773.157.861.858 181.427 676.403.904 33.810 25.399 1.771.652 1.820 1.125 5.819 7.957 390.099 1.453.51 (In millions of Korean won and in thousands of u.875.228 ￦ 119.910.117.687 4.704 (7.834 $ 83.567 7.953 40.041 618.380 5.987.971 5.517 23.058.936 1.792 44.824.026.375.300.553 1.057.284.
295 $ 6.S.777 3. 2008 And 2007 (In millions of Korean won and in thousands of u.930 4.278.754 7.439 7.951 21.924 .047.38 $ 38.92 6.340 7.232.653.618 2007 $ 78.849.637 444.675 520.286.031.144.388.303.310 ￦ 37.903.895 5.709.973.729 1.922.495.640 933.730 3.319 89.231 274.775 687.912 27.661 353.502 ￦ 48.ConsolIdAted stAtements of InCome YeARs ended deCemBeR 31.S.626.224 1.916 546.824. 2007 ￦ 98.831.083 71.500 1.049.409.904 364.500.150 10.652 ￦ 121.360.561 ￦ 5.702 5.762.772.684 $ 39.404 399.905 18.420.891 652.088 5.619 8.967 8.604 1.352 9.095 20.880.577.S.873 1.684 ￦ 37.402 ￦ 49.629 127.238.825 $ 29.271 7.839.743 519.685.892 ￦ 7.367.396 56.396.156.105 289.101 6.856 8.044.981 533.515 1.978.863 70.467 218.874 654.597.477 4.307 10.383 1.357 867.485.294.553 689.231 6. dollars) Diluted earnings per share (note 26) (in Korean won and u.297.445 14.525.531.270 non-operating expenses Interest expense foreign exchange losses loss on foreign currency translation (note 31) loss on valuation of equity method investments (note 10) others 670.890. dollars) the accompanying notes are an integral part of these consolidated financial statements.986 $ 4.485 590.939 508. dollars (note 3)) 2008 sales (note 28) cost of sales (note 28) gross profit selling.143 101.611.663.940 209.264 742.470.749 833.798.867 2.358 net income before income tax Income tax (note 25) net income attributable to: controlling interests minority interests Basic earnings per share (note 26) (in Korean won and u.315 4.758.579 502.085.138.114 1.457.507.286 483.093 834.988 25.71 469.355 31.98 $ 29.632.002 116. general and administrative expenses operating profit non-operating income Interest and dividend income foreign exchange gains gain on foreign currency translation (note 31) gain on valuation of equity method investments (note 10) others 639.991 166.663 1.793 7.176.781 1.214 5.193 384.817 2008 $ 96.964 92.964 25.454.
303.922.514 ￦ 6.012 $ 5.933) 555.683 ￦ 2.138.456 ￦ 47.445 (593.103) (4.747.963) 47.367 55.793) (751.970 (5.214 7.825.867 - - - - (746.994.395 90.875.503 496.210) retained earnings minority interests Total ￦ 897.754 418.094 1.564.425.503 (50.675.322 (58. 2007 ￦ 897.719 23.174 ￦ 4.089 (101.306.050 145.568 (21.296 6.184) 149. in thousands of u.825.403 (79.641 $ 3.552) 889.364.947 (61.230.830 17.S.169 continued $ 714.939.463.339 145.670) $ 44. dollars) capital stock Balance at January 1.165) $ (6.296 (4.420.717.904 (94.995 $ 714.958.372.882 $ 35.624. 2007 cash dividends appropriated in prior year retained earnings after appropriations Interim cash dividends change in ownership interests.509 2.704 $ 1.801) Balance at december 31.536) 34.455) (1.066 116.711 29. 2007 capital surplus accumulated other capital adjustments comprehensive income ￦ (6.604 ￦ 532.503 525.955) (51.402 190.514 ￦ 6.560 115.971.279 115.608 (73.465 502.490 71.820 ￦ 44.538 (127.187.53 ConsolIdAted stAtements of ChAnges In equItY foR the YeARs ended deCemBeR 31.220) 37.128. 2007 cash dividends appropriated in prior year retained earnings after appropriations Interim cash dividends change in ownership interests.981 (1.528.208) - $ 423.970 7.036) (5.829) - 185.452.385 ￦ 51.579 23 879.779. including new stock issues by consolidated subsidiaries Disposal of equity-method investments cumulative effects of changes in scope of consolidation net income acquisition of treasury stock Disposal of treasury stock Stock option activities available-for-sale Securities equity-method investments translation of foreign currency financial statements others Balance at december 31.858 $ 2.329 - ￦ (8.440) - 147.684 151.576 44.908 $ (5.337) $ 38.792 .978) 2.063.098 (75.395) 187.574.995 1.395) 181.381) ￦ 1.123.754 394.746 (48.757) 1.912 (63.075) 43.184) 144.967) 707.365 17.491.088 (1.903.762 5.925 (63.540.065.029 1.879) (41.404 18 699.764) (1.318 (598.014 14.762 145.221 ￦ 55.170 847.761 (17.669.452.953 $ 40.064.012 $ 5.888) 2. including new stock issues by consolidated subsidiaries Disposal of equity-method investments cumulative effects of changes in scope of consolidation net income acquisition of treasury stock Disposal of treasury stock Stock option activities available-for-sale Securities equity-method investments translation of foreign currency financial statements others Balance at January 1.889 14.684) 2.472 1.125 399.746) 698. 2008 And 2007 (In millions of Korean won.
771.955 (253) 4.525.083 (41.571 ￦ 4.425.953 $ 40. 2008 cash dividends appropriated in prior year retained earnings after appropriations Interim cash dividends change in ownership interests.419.167) $ (6.624.792 (873.157) 4.839) (1.192) Balance at december 31.812 (13.729 3.361) 249 2.169 (954.954 $ (6.890.527.574.704 - ￦ (8. 2008 And 2007 (In millions of Korean won.105 2 176.849) 247.039 2.945 ￦ 62.592) $ 50. 2008 $ 714.875.997 (69.747.288) 207.204.735.141 .806.128 (81.962) 313 2.994) (6.514 ￦ 6.588.370 4.076 (73.S.381) ￦ 1.746) $ 5.930 199.524) 205.306 (29.908 - - - - (1.514 ￦ 6.573.310) (460.841) 43.411) (102.685.516 (318) 364.917 (64.239) (7.839.995 ￦ (8.328 (91.214 251.ConsolIdAted stAtements of ChAnges In equItY foR the YeARs ended deCemBeR 31. in thousands of u.010.241.835 (23.250) - 37.851) 249 2.824.402) (81.750) (578.255) 3.056) 258.029.012 $ 3.385 ￦ 51.076 ￦ 55.138) 4.861 $ 714.641 $ 3.760 $ 3.058.751.971.886 (318) 5. including new stock issues by consolidated subsidiaries cumulative effects of changes in scope of consolidation net income Disposal of treasury stock Stock option activities available-for-sale Securities equity-method investments translation of foreign currency financial statements others capital surplus other capital adjustments comprehensive income retained earnings minority interests Total ￦ 897.175.537 (27.013) ￦ 3.396.834 Balance at december 31. 2008 ￦ 897.674) 313 2.098) 49. dollars) accumulated capital stock Balance at January 1.735 196.226 (253) 289.230.904 2 221.923.687) - 29.174 ￦ 4.159) (556.490) 165.967.098.088.597.586) 39.933) (699.200.537 (33. including new stock issues by consolidated subsidiaries cumulative effects of changes in scope of consolidation net income Disposal of treasury stock Stock option activities available-for-sale Securities equity-method investments translation of foreign currency financial statements others Balance at January 1.012 $ 5.491.825 (96.105 (21.055 (58.784 (70.221 ￦ 55.357 (89.306.539) 5.285) $ 44.591 (16.396 (86.310 (121.213 1.958.528.672 (115. 2008 cash dividends appropriated in prior year retained earnings after appropriations Interim cash dividends change in ownership interests.496 $ 44.933) - $ 1.236) 54.344.808.065.
237) 634.583 (1.313) 166.518 (356.601) 798.178 43.400) (207.941) $ 11.930 $ 6.075 ￦ 5.885) 209.706 911.685.790.573) 408.137) (1.542) 122.922.873 changes in operating assets and liabilities Increase in trade accounts and notes receivable Increase in inventories Decrease (Increase) in trade accounts and notes payable Increase (Decrease) in accrued expenses Increase (Decrease) in income taxes payable Payment of severance benefits Increase in financing receivables Increase in long-term accrued expenses others net cash provided by operating activities (86.597 (128.560) (551.756 continued .301.031.812 (68. dollars (note 3)) 2008 cash flows from oPeraTing acTiviTies net income adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization Provision for severance benefits Bad debt expenses loss on disposal of property.553 (595.288.035.465) 369.358 (447.962) 1.881) (751.146.384) (398.667 (269. plant and equipment loss on foreign currency translation gain on foreign currency translation loss on valuation of equity-method investments gain on valuation of equity-method investments Deferred income taxes others 10.675 (296.615) (1.628.191 543.580) 464.355. plant and equipment gain on disposal of property.313.497.040 14.720 1.586 172.239) (99.426 8.178 432.133) (79.003) (1.947) (240.827 71.554) 97.275) 851.870 14.360.528 615.180) (693.435) 1.324 (64.638) 198.070.078.981 $ 4.719) ￦ 14.601 (546.619) (301.556 (88.229.980 532.580) 274.540 (1.165 489.836 34.026.726 137.995 (434.514.119) 1.357 (748.025.492 57.571 49.607) $ 10.398) (500.870) ￦ 13.760.291) 218.169) 157.214 2007 2008 2007 ￦ 7. 2008 And 2007 (In millions of Korean won and in thousands of u.379) (597.964 (107.303.768.887) (1.890.429 62.766.55 ConsolIdAted stAtements of CAsh flows foR the YeARs ended deCemBeR 31.088 8.S.773) (165.531 (102.761 423.016 6.874 (372.095.732 17.453) (1.840 (51.204.885.576 (338.879) (1.165) (1.006) 324.251 (85.031 17.712) (1.289.135.045.292 (110.
392 39.222.518 1.826.680) 23.962 (1.110) (1.178) 295.989 4.649 ￦ 1.701 (12.016 1.251.452.184 2.477 (1.514) (101.025) (393.280.404 477.465.825.596 2.337 1.383 (1.639.760 379.046.012.259) (191.027 ￦ 5.457.812) 419.687) 234.348 491.349) (330.409.207.360) 29.358.002.059) (819.538.187 2.548.527.028.130) $ 1.201.170 (9.234 16. plant and equipment acquisition of property.150.472 (20.514 3.756 (16.638 4.445.860) (415.604 1.348 391.982.424) 3.797 5.134 (2.528) 531.934.444.088.602) (495.814.845. plant and equipment Proceeds from sale of long-term available-for-sale securities Proceeds from sale of long-term held-to-maturity securities Proceeds from sale of equity-method investments acquisition of long-term available-for-sale securities acquisition of equity-method investments others net cash used in investing activities cash flows from financing acTiviTies Payment of dividends acquisition of treasury stock net proceeds from short-term borrowings repayment of current maturities of long-term debts repayment of long-term debts Proceeds from long-term debts others net cash provided by (used in) financing activities effect of exchange rate changes on cash and cash equivalents net increase in cash and cash equivalents from changes in consolidated subsidiaries net increase in cash and cash equivalents cash and cash equivalenTs Beginning of year end of the year (1.309.639.486 (12.729 (1.128.184) 634.198 49.914 (11.212) (13.951 (2.055 1.436 (3.290 (1.251) $ (1. dollars (note 3)) 2008 cash flows from invesTing acTiviTies Decrease (Increase) in short-term financial instruments Proceeds from sale of short-term available-for-sale securities acquisition of short-term available-for-sale securities Decrease (Increase) in deposits and loans Proceeds from disposal of property.315.S.ConsolIdAted stAtements of CAsh flows foR the YeARs ended deCemBeR 31.576.831.263 2.221 813.848.989 ￦ 8.124 184.080) 20.570) 2.275) 4.370) 3.000) (506.005 2.537) 82.177) 3.372.184) 188.812 $ 4.098) 16.272.827 24.599.831.609 $ 7.746.287 (14.767.461) 2.784) 149.486) 668.646.842.639) (1.848 13.682 (12.723) 333.964) (10.760 647.271 (10.696 677.758) (127.332 31. 2008 And 2007 (In millions of Korean won and in thousands of u.193 (1.216 (2.346.644) 2.766 (1.395) 798.453.010.781 2007 2008 2007 ￦ (1.648) 65.580.479) (152.051) (402.609.297 (9. .080 146.896 539.441 3.832 (651.609 the accompanying notes are an integral part of these consolidated financial statements.
376 15.301 12.932 7.4% 17.218 733 7.969 37.633 9.8% 1.397 5.773 30.514 55.640 9.010 35.804 32.865 32.089 6.802 7.654 8.5% 2006 85.627 28% 18.5% 1.462 8.790 13.493 42.2% 16.57 ConsolIdAted fIve-YeAR fInAnCIAl summARY ConsolIdAted BAse ConsolIdAted BAlAnCe sheet (In billions of Korean won) 2004 assets cash & cash eq.4% 688 (364) 5.294 89.532 26% 25.455 62.526 4.926 9.377 17.5% 820 70 520 0 9.125 7.4% 550 66 342 0 8.634 (268) 7.125 10.508 70.008 10.421 7.963 52.953 29.1% 2.059 9.432 41.1% 660 171 378 0 9.973 9.1% 1.non operating Income (expense) Interest Payment (net) equity method gain (loss) .378 31.366 7.894 923 11.426 59.6% continued . marketable Securities a/r Inventory liabilities Debt stockholder’s equity 69.761 14.766 9.375 10.0% 546 (56) 838 0 6.726 2.477 47.881 27. etc.3% 2007 98.207 621 10.400 2005 74.710 (502) 7.575 9.minority Interests. (net) net income (margin) 81.774 5.144 1.406 982 12.5% 2008 121.630 55.940 2007 93.extra gain (loss) income before tax (margin) .500 6.2% 2005 80.972 2008 105.828 11.753 33.108 2.868 6.426 14.cogS gross Profit (margin) .250 11.Sg&a operating Profit (margin) .252 25.607 2006 81.604 17.Income tax expense .3% 615 192 496 0 12.044 9.005 8.5% 17.854 16.403 14.652 25.032 5.762 31.578 5.924 ConsolIdAted InCome stAtement (In billions of Korean won) 2004 sales .654 36.
252) (1. 16.002) (12.7% 6.498 (12.813) 46 139 2007 14.74 30.4% 0.7 % 0.08 1.149) (64) 953 2006 15.13 1.3% 49.020 (9.983 ConsolIdAted fInAnCIAl RAtIos (In billions of Korean won) 2004 roe Profitability (net Income / Sales) asset turnover (Sales / asset) leverage (asset / equity) debt / equity net debt / equity earnings per share (Krw) 32.315 0 817 2.5% 15.67 27.8% 49.13 1.5% 18.098) (11.12 1.3% 0.497) (9.2% 9.266) (849) (2.68 25.329 7.8% 52.10 1.22 1.6% 0.934 1.640 6.926 6.046) (11.684 .916 2005 19.880 2007 14.09 1.096 (13.596) (3.790 5.3% 67.841) 81 (996) 2005 13.744 10.610 2008 13.088) 1.825) 421 1.600) (819) (1.06 48.09 1.526 10.20 2.738) (3.9% 4.639) (1.873 (11.969 2006 17.84 39.081 7.ConsolIdAted fIve-YeAR fInAnCIAl summARY ConsolIdAted BAse ConsolIdAted CAsh flow stAtement (In billions of Korean won) 2004 cash flow from operating activities net Income Depreciation & armortization cash flow from investing activities acquisition of PP&e cash flow from financing activities Dividend rights Issuance / Stock repurchase consolidation adjustments increase in cash & cash eq.791 7.421 8.183) (10.128) (14.502 2008 9.05 1.185 (8.889) (832) (1.540) (3.360 5.3% 0.5% 37.
a columbia mexico argentina continued 3.00 100. digital media products.00 100.559.a u.a u. Consolidated Financial Statements.59 notes to the ConsolIdAted fInAnCIAl stAtements deCemBeR 31.00 100.941 Percentage of ownership (%) 94.00 100.162 7.a u. Sec’s shares are listed on the Korea Stock exchange. (In millions of Korean won) subsidiaries Samsung gwangju electronics Samsung card Steco SemeS Secron Samsung electronics Service living Plaza Samsung electronics logitech S-lcD Samsung electronics hainan fiberoptics Korea (Sehf-K) Samsung electronics canada (Seca) Samsung electronics america (Sea) Samsung receivables (Src) Samsung Semiconductor (SSI) Samsung austin Semiconductor (SaS) Samsung Information Systems america (SISa) Samsung International (SII) Samsung mexicana (SameX) Samsung telecommunications america (Sta) Samsung electronics latinoamerica (Zona libre) (Sela) Samsung electronics latinoamerica miami (SemI) Samsung electronica columbia (Samcol) Samsung electronics mexico (Sem) Samsung electronics argentina (SeaSa) Primary Business home appliances manufacturing consumer financing Semiconductor equipment manufacturing Semiconductor equipment manufacturing Semiconductor equipment manufacturing Service center for electronic goods Sales Distribution lcD manufacturing optical cable manufacturing Sale of electronic goods Sale of electronic goods financing Semiconductor sales Semiconductor manufacturing Information system research and development manufacturing and sale of electronic goods manufacturing and sale of electronic goods mobile phone sales and research and development Sale of electronic goods Sale of electronic goods and mobile phone Sale of electronic goods manufacturing and sale of electronic goods Sale of electronic goods capital ￦ 725.00 100.29 51. ltd.034 64.00 100.00 100. 2008 And 2007 1.00 100.822. Samsung card in accordance with the Statement of Korean financial accounting Standards (“SKfaS”) no.87 50.00 63. (“Sec”) was incorporated under the laws of the republic of Korea to manufacture and sell semiconductors.00 location Korea Korea Korea Korea Korea Korea Korea Korea Korea Korea canada u.S.909 199.S.689.33 100.829 305. The Company Samsung electronics co.00 100. consolidaTed suBsidiaries the consolidated financial statements include the accounts of Sec and its controlled subsidiaries (collectively referred to as “the company”).a Panama u.564 2.731 3. lcDs..613 58. 2008.769.540 395. Percentage of ownership is the sum of the percentage of direct and indirect ownership.679.00 100. the consolidated financial statements include the accounts of the consumer financing subsidiary. as of December 31.S. the following table sets forth certain information with regard to consolidated subsidiaries as of December 31. 2008.a u.671 56.953 46.S.00 100.574 92.145 30. telecommunication products.25 35.25.a u.211 34. controlled subsidiaries generally include majority-owned entities and entities in which Sec owns more than 30% of the total outstanding voting stock and is the largest shareholder.00 100.00 100.305 12.00 50.256 3.270 60.858 38.890 58.00 100.a mexico u. and its global depository receipts are listed on the london and luxembourg Stock exchange.954 2.S.467 39.S.442 .964 133.S.00 100.S.63 83.164 107.00 100.
111 366.032 112.374 32.00 100.00 99.454 70.019 30.00 100.00 50. u. germany germany germany austria Italy netherlands netherlands Slovakia Israel russia Poland South africa Slovakia netherlands russia russia latvia russia ukraine Kazakhstan Japan Japan australia malaysia arab emirates Indonesia Indonesia malaysia India India Singapore Philippines Singapore vietnam 143.583 112.00 100.00 100.00 100.00 100.472 406.00 100.565 92.966 397.916 23.00 80.00 100.00 100.493 Percentage of ownership (%) 100.00 100.396 21.787 368.360 35.212 80.00 100.953 33.00 100.K.00 100.018 14.234 38.00 100.K.00 100.790 438.00 100.707 194.981 155.229 82.844 515.00 100.00 100.96 100.00 100.notes to the ConsolIdAted fInAnCIAl stAtements ContInued (In millions of Korean won) subsidiaries Samsung electronica da amazonia (SeDa) Samsung electronics Iberia (SeSa) Samsung electronics nordic (Sena) Samsung electronics hungarian (Seh) Samsung electronica Portuguesa (SeP) Samsung electronics france (Sef) Samsung electronics (uK) (SeuK) Samsung Semiconductor europe (SSel) Samsung electronics holding (Sehg) Samsung Semiconductor europe gmbh (SSeg) Samsung electronics gmbh (Seg) Samsung electronics austria (Seag) Samsung electronics Italia (SeI) Samsung electronics europe logistics (SelS) Samsung electronics Benelux (SeBn) Samsung electronics lcD Slovakia (SelSK) Samsung Semiconductor Israel r&D center (SIrc) Samsung electronics rus (Ser) Samsung electronics Polska (SePol) Samsung electronics South africa (SSa) Samsung electronics Slovakia (SeSK) Samsung electronics overseas (Seo) llc Samsung electronics rus (Serc) llc Samsung russia Service center (SrSc) Samsung electronics Baltics (SeB) Samsung electronics rus Kaluga (SerK) Samsung electronics ukraine company (Seuc) Samsung electronics KZ and central asia (SeKZ) Samsung Japan corporation (SJc) Samsung yokohama research Institute (SyrI) Samsung electronics australia (Seau) Samsung electronics (m) (Sema) Samsung gulf electronics (Sge) Samsung electronics Indonesia (SeIn) Samsung telecommunications Indonesia (StIn) Samsung electronics Display (m) (SDma) Samsung India electronics (SIel) Samsung India Software operations (SISo) Samsung asia (SaPl) Samsung electronics Philippines (SePco) Samsung electronics asia holding (Seah) Samsung vina electronics (SavIna) Primary Business Sale and manufacturing of electronic goods Sale of electronic goods Sale of electronic goods ctv manufacturing and sales Sale of electronic goods Sale of electronic goods Sale of electronic goods Semiconductor sales holding company (financing) Semiconductor sales Sale of electronic goods Sale of electronic goods Sale of electronic goods logistics Distribution and sale of electronic goods lcD manufacturing research center marketing Sale of electronic goods and telephone Sale of electronic goods monitor manufacturing Sale of electronic goods Sale of electronic goods Service Sale of electronic goods ctv manufacturing Sale of electronic goods Sale of electronic goods Sale research center Sale of electronic goods home appliances manufacturing Sale of electronic good a/v manufacturing and sale of electronic goods Installation of telecom systems monitor manufacturing ctv manufacturing and sale of electronic goods research and development Sales Sale of electronic goods holding company manufacturing and sale of electronic goods capital ￦ 324.842 31.00 location Brazil Spain Sweden hungary Portugal france u.168 487.622 4.720 66.00 100.981 125.00 100.593 16.00 100.677 146.155 94.99 99.920 5.00 100.00 100.738 71.00 100.299 2.00 100.785 317.016 1.00 100.00 100.00 100.830 488.00 100.436 9.00 100.256 81.332 241.388 1.00 70.00 100.00 100.00 100.761 continued .00 100.
233 2.857 108. printer and telecommunication products mobile phone manufacturing computer manufacturing lcD manufacturing mobile phone manufacturing Semiconductor sales research center optical cable manufacturing research center manufacturing of electronic goods Semiconductor sales capital ￦ 316.447 202.273 58.96 79.00 100.365 7.184 242.00 100.00 99.455 Percentage of ownership (%) 91.387 515.00 100.396) 90.551 337.00 100.00 100.086 116.527 180.61 (In millions of Korean won) subsidiaries thai Samsung electronics (tSe) Samsung electronics Philippines manufacturing (SePhIl) Samsung malaysia electronics (Sme) Samsung electronics vietnam (Sev) Samsung telecommunications Japan (StJ) Samsung electronics hong Kong (SehK) Samsung electronics taiwan (Set) Samsung electronics Suzhou Semiconductor (SeSS) Samsung (china) Investment (ScIc) tianjin tongguang Samsung electronics (ttSec) Samsung electronics (Beijing) Service (SBSc) Samsung electronics huizhou (SehZ) tianjin Samsung electronics Display (tSeD) Suzhou Samsung electronics (SSec) tianjin Samsung electronics (tSec) Samsung electronics (Shandong) Digital Printing (SSDP) tianjin Samsung telecom technology (tStc) Samsung electronics Suzhou computer (SeSc) Samsung electronics Suzhou lcD (SeSl) Shenzhen Samsung Kejian mobile telecommunication technology (SSKmt) Shanghai Samsung Semiconductor (SSS) Samsung Semiconductor (china) r&D (SScr) Samsung electronics hainan fiberoptics (Sehf) Beijing Samsung telecom r&D center (BSt) Samsung Suzhou electronics export (SSec-e) Samsung electronics Shanghai telecommunications (SStc) Primary Business ctv and washing machine manufacturing and sales oDD manufacturing Semiconductor and lcD sales mobile phone manufacturing Sales of telecommunication products and maintenance Sales Semiconductor sales and sale of electronic goods Semiconductor manufacturing holding company ctv manufacturing Service a/v manufacturing monitor manufacturing home appliances manufacturing a/v manufacturing manufacturing and sales of facsimile.00 100.391 252.02 100.00 100.00 100.00 100.00 96.321 10.95 88.00 100.885 78.300 13.00 100.428 171.00 60.550 58.00 100.00 china china china china china china china china china china .928 324.722 22.778 46.00 location thailand Philippines malaysia vietnam Japan china taiwan china china china china china china china china china 79.805 9.28 91.00 100.00 100.00 100.83 100.058 604.07 100.328 52.772 111.909 (1.
471.163) 16. 2008.833 14.143.714 7.453 (284.073.084.463 132.852 861.488.241 1.126.252 57.840 7.730 .446 831.notes to the ConsolIdAted fInAnCIAl stAtements ContInued a summary of financial information of subsidiaries as of and for the year ended December 31.006 557.366 3.010.722 11.359 5.391.414.130 780.129.724 3.860 1.340.334 1.953 344.062.750 964.353 2.133.880.560) 45.272.817.335 liabilities ￦ 184.354 5.445 9.825 5.298 916.115 32.926.850.313 7.663 1.433.508.885 52.268.083 10.846 3.951 967.839) 847.457.223 8.750 1.098 689.104.426 1.913 205.240 net income (loss) ￦ 6.859 16.593.564.926 1.427 4.724 838.408 1.139 87.295 1.180 2.390 (5.173 872.635 5.948.442 2.471.094 3.591. included in the consolidated financial statements follows: (In millions of Korean won) subsidiaries Samsung gwangju electronics Samsung card S-lcD corporation Samsung electronics america (Sea) Samsung Semiconductor (SSI) Samsung austin Semiconductor (SaS) Samsung electronica da amazonia (SeDa) Samsung electronics hungarian (Seh) Samsung electronics france (Sef) Samsung electronics (uK) (SeuK) Samsung electronics europe logistics (SelS) Samsung electronics Slovakia (SeSK) Samsung Japan (SJc) Samsung telecommunications america (Sta) Samsung electronics gmbh (Seg) Samsung electronics Italia (SeI) Samsung (china) Investment (ScIc) Samsung electronics huizhou (SehZ) tianjin Samsung telecom technology (tStc) llc Samsung electronics rus (Serc) others assets ￦ 910.979.979.873.886 76.708.902 19.728) 112.064 2.745 4.482.769 1.839 15.526 54.394 sales ￦ 2.249 3.737.295 28.601 1.664 4.370 18.548 2.613 884.328.117 (55.024.495.720 1.787 (30.816.261.865 360.012 901.945 737.478 715.204.870 2.600 297.486 885.002.236 104.664.396 882.454 758.
00 100.00 100. the following subsidiaries were excluded from consolidation as of December 31. u.00 100.S.a chile mexico mexico russia turkey ukraine netherlands Kazakstan romania france Italy Sweden u.00 100.00 100.00 100.00 location u.00 100.00 99. 25.00 100. 2008: location china asia name of subsidiaries hangzhou Samsung eastcom network technology (hSen) Samsung telecommunications India (StI) remark liquidation completed merged . are as follows: location china name of subsidiaries Beijing Samsung telecom r&D center (BSt) Samsung Suzhou electronics export (SSec-e) Samsung electronics Shanghai telecommunications (SStc) Samsung electronics Baltics (SeB) Samsung electronics rus Kaluga (SerK) Samsung electronics ukraine company (Seuc) Samsung electronics KZ and central asia (SeKZ) Samsung electronics vietnam (Sev) Samsung telecommunications Japan (StJ) remark Increase in total assets newly incorporated Increase in shares Increase in total assets Increase in total assets newly incorporated newly incorporated newly incorporated newly incorporated europe asia (b) the following subsidiaries were deconsolidated for the year ended December 31.00 38. 2008.99 100.00 100.00 99.90 100. 2008.63 In accordance with the SKfaS no.K.00 100. Philippines china china Korea changes in scoPe of consolidaTion (a) Details of subsidiaries newly included in consolidation for the year ended December 31.000 million: subsidiaries SemeS america Samsung electronics chile Samsung Semiconductor International Samsung Semiconductor mexico Samsung-crosna Joint Stock Samsung electronics Istanbul marketing & trading Samsung electronics ukraine Samsung telecom Benelux Samsung electronics Kazakhstan Samsung electronics romania Samsung Semiconductor france Samsung Semiconductor Italia Samsung Semiconductor Sweden Samsung electronics limited Samsung telecoms (uK) Batino realty corporation Samsung electronics china r&D center Samsung electronics Shenzhen Samsung electronics football club Primary Business Service marketing and service holding company Semiconductor sales telecom (switchboard) marketing marketing Installation and service of telecom systems marketing marketing Semiconductor sales Semiconductor sales Semiconductor sales real-properties lease research Semiconductor sales Sports services Percentage of ownership (%) 100.00 100. because their total assets at the prior fiscal year end were less than ￦7.99 100. Consolidated Financial Statements.00 67.K.
and charged to shareholders’ equity and minority interests. depending on the acquisition and holding purpose. all significant intercompany transactions and balances have been eliminated during consolidation. to the controlling companies. although these estimates are based on management’s best knowledge of current events and actions that the company may undertake in the future. has been restated to reflect this change. these financial statements are intended for use by those who are informed about Korean accounting principles and practices. including incidental costs. and such differences are amortized over five years using the straight-line method. however. 25. available-for-sale securities are stated at fair value. or equity-method investees. or equity-method investees. invesTmenT in securiTies Investments in equity securities or debt securities are classified into trading securities. the accompanying consolidated financial statements have been condensed. available-for-sale securities and held-to-maturity securities. under the equity method. or sales between consolidated subsidiaries. results of operations or cash flows or changes in equity. including SKfaS no. are eliminated. note 29 to consolidated financial statements as of and for the year ended December 31. arising from sales by the consolidated subsidiaries. minority interests in consolidated subsidiaries are presented within equity and identified separately from shareholders’ equity in the consolidated balance sheet.notes to the ConsolIdAted fInAnCIAl stAtements ContInued 2. property. restructured and translated into english from the Korean language consolidated financial statements. is not presented in the accompanying consolidated financial statements. based on the percentage of ownership. as a result of intercompany transactions. the difference between the acquisition cost after amortization using the effective interest rate method and the fair value is reported in equity as a component of accumulated other comprehensive income. while non-marketable equity securities are stated at cost. equlTy-meThod invesTmenTs Investments in business entities in which the company has the ability to exercise significant influence over the operating and financial policies are accounted for using the equity method of accounting. certain information attached to the Korean language consolidated financial statements. use of esTimaTes the preparation of the financial statements requires management to make estimates and assumptions that affect amounts reported therein. accordingly. unrealized profits. depending on the nature of the underlying change in the net book value. In accor- dance with the SKfaS no. the original investment is recorded at cost and adjusted by the company’s share in the net book value of the investee with a corresponding charge to current operations. Differences in accounting policies between the Sec and its consolidated subsidiaries are adjusted during consolidation. net of amortization is recognized in current operations. aPPlicaTion of The sTaTemenTs of Korean financial accounTing sTandards the company’s consolidated financial statements were prepared in conformity with accounting principles generally accepted in Korea. certain accounting principles applied by the company that conform with financial accounting standards and accounting principles in the republic of Korea may not conform with generally accepted accounting principles in other countries. Related Party Disclosures. actual results may differ from those estimates. unrealized holding gains and losses on available-for-sale securities are reported in equity under accumulated other comprehensive income. which are to be included in current operations upon the disposal or impairment of the securities. plant and equipment and other assets. Summary of SignifiCanT aCCounTing poliCieS the significant accounting policies followed by the company in the preparation of its consolidated financial statements are summarized below: Basis of financial sTaTemenT PresenTaTion the company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language in conformity with accounting principles generally accepted in the republic of Korea. the Sec and its consolidated subsidiaries follow the same fiscal year end. new accounTing sTandards and accounTing changes the company has changed the scope of its related parties in accordance with revision of SKfaS no. and is determined using the average cost method. 25. 1 through no. are fully eliminated. unrealized profits included in inventories. 2007 presented herein for comparative purpose. except those securities that mature or are certain to be disposed of within one year. In the case of available-for-sale debt securities. trading securities are classified as current assets while available-for-sale securities and held-to-maturity securities are classified as long-term investments. PrinciPles of consolidaTion the company records differences between the investment account and corresponding capital account of subsidiaries as goodwill or negative goodwill. but not required for a fair presentation of the company’s financial position. and are not included in the determination of the results of operations. a separate component of equity. which are classified as current assets. or retained earnings. all significant . differences which occur from additional investments acquired in consolidated subsidiaries are reported in a separate component of equity. cost is measured at the market value upon acquisition. Impairment resulting from a significant or prolonged decline in fair value of the security below its acquisition cost. 20. Consolidated Financial Statements.
except for certain assets subject to upward revaluation in accordance with the asset revaluation law of Korea. as of the effective date of revaluation. amortization of the discount or premium is treated as part of interest expense. adjustments resulting from the translation process are reported as accumulated other comprehensive income in a separate component of equity. the discount or premium is reported as a direct deduction from or addition to the face value of the debenture in the balance sheet. PlanT and equiPmenT. accrued interest is recognized over the lease period using the effective interest rate method. discounTs and Premiums on deBenTures the difference between the face value and the proceeds on issuance of the debenture is treated as either a discount or premium on the debenture. Differences between the investment amounts and corresponding capital amounts of the investees at the date of acquisition of the investment are recorded as part of investments and are amortized over five years using the straight-line method. revenues from operating lease assets are recognized on a basis that reflects the patterns of benefits over the lease term. neT of accumulaTed dePreciaTion Property. and land at the prevailing market price. is first applied to offset accumulated deficit and deferred foreign exchange losses.65 unrealized profits arising from intercompany transactions between the company and its equity-method investees are eliminated. while income and expense are translated at average rates for the period. plant and equipment are stated at cost. cost is determined using the average cost method. if any. losses on valuation of inventories and losses on inventory obsolescence are recorded as part of cost of sales. ProPerTy. which is amortized over the term of the debenture using the effective interest rate method. certain equity-method investments are accounted for based on unaudited or unreviewed financial statements as the audited or reviewed financial statements of these entities are not available as of the date of this audit report. accrued severance BenefiTs employees and directors with at least one year of service are entitled to receive a lump-sum payment upon termination of their . assets and liabilities of the company’s foreign investees are translated at current exchange rates. and are not included in the determination of the results of operations. 30 years 15 years 5 years 5 years 5 years mainTenance and rePairs routine maintenance and repairs are charged to expense as incurred. the revaluation presents production facilities and other buildings at their depreciated replacement cost. operating lease assets are included in property. invenTory Inventories are stated at the lower of cost or net realizable value. a new basis for calculating depreciation is established for revalued assets. the remainder may be credited to capital surplus or transferred to raise common stock. except for materials-in-transit which are stated at actual cost as determined using the specific identification method. inTangiBle asseTs Intangible assets are amortized on a straight-line basis over the following estimated useful lives: estimated useful lives goodwill Intellectual property rights other intangible assets 5 years 10 years 5 years leases a lease which has substantially non-cancelable terms and transfers the benefits and risks incidental to ownership from lessor to lessee is classified as a finance lease. expenditures which enhance the value or extend the useful life of the related asset are capitalized. the revaluation increment. Depreciation is computed using the straight-line method over the following estimated useful lives: estimated useful lives Buildings and auxiliary facilities Structures machinery and equipment tools and fixtures vehicles 15. all other leases are classified as operating leases. plant and equipment and depreciated using the same depreciation method used for other similar assets. net of revaluation tax. allowance for douBTful accounTs the company provides an allowance for doubtful accounts and notes receivable based on the aggregate estimated collectibility of the receivables. finance lease receivables are recorded at the present value of minimum lease payments.
and whose amount is reasonably estimable. tax assets related to tax credits and exemptions are recognized to the extent of the company’s certain taxable income. cash flow hedge accounting is applied to a derivative instrument with the purpose of hedging the exposure to variability in expected future cash flows of an asset or a liability or a forecasted transaction . a disclosure regarding the contingent liability is made in the notes to the financial statements. 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. the balance sheet distinguishes the current and non-current portions of the deferred tax assets and liabilities. the difference between the nominal value and present value of the long-term receivables and payables are amortized using the effective interest rate method with interest income or expense adjusted accordingly.. is not certain to occur.notes to the ConsolIdAted fInAnCIAl stAtements ContInued employment with the company based on their length of service and rate of pay at the time of termination. accrued severance benefits represent the amount which would be payable assuming all eligible employees and directors were to terminate their employment as of the balance sheet date. however. long-Term receivaBles and PayaBles long-term receivables and payables that have no stated interest rate or whose interest rate are different from the market rate are recorded at their present values using the market rate of discount. derivaTive insTrumenTs all derivative instruments are accounted for at fair value with the resulting valuation gain or loss recorded as an asset or liability. revenue recogniTion Sales of products and merchandise are recognized upon delivery when the significant risks and rewards of ownership of goods are transferred to the buyer. In translating the foreign currency financial statements of these subsidiaries into Korean won. both on the hedging derivative instrument and on the hedged item attributable to the hedged risk. ltd. a portion of the accrued severance benefits of the company are funded through a group severance insurance plan with Samsung life Insurance co. the gain or loss is recognized in earnings in the period of change. or cannot be reliably estimated. Deferred income tax assets and liabilities are computed on such temporary differences by applying statutory tax rates applicable to the years when such differences are expected to be reversed. when such outflow is dependent upon a future event. resulting translation gains or losses are recorded as other comprehensive income presented as part of equity.. revenue from rendering services is recognized using the percentage-of-completion method. foreign currency convertible debentures are translated at the exchange rate that will be used at the time of conversion as prescribed in the terms of such debentures. is reflected in current operations. 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. the gain or loss. income and expenses are translated at the average rate for the year and assets and liabilities are translated at the rate prevailing on the balance sheet date. and operating loss and tax credit carryforwards. TranslaTion of foreign oPeraTions accounts of foreign subsidiaries are maintained in the currencies of the countries in which they operate. whose balances are offset against each other by tax jurisdiction. earnings Per share Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the year. Provisions and conTingenT liaBiliTies when there is a probability that an outflow of economic benefits will occur due to a present obligation resulting from a past event. a certain portion of the accrued severance benefits is deposited with the national Pension fund and deducted from the accrued severance benefits liability. In accordance with the national Pension act. foreign currency TranslaTion assets and liabilities denominated in foreign currencies are translated into Korean won at the rate of exchange in effect as of the balance sheet date. sTocK-Based comPensaTion the company uses the fair-value method in determining compensation costs of stock options granted to its employees and directors. with a corresponding increase in a separate component of equity. gains and losses resulting from the translation are reflected as either income or expense for the period. the compensation cost is estimated using the Black-Scholes option-pricing model and is accrued and charged to expense over the vesting period. and the amounts funded under this insurance plan are classified as a deduction from the accrued severance benefits liability. If the derivative instrument is not designated as a hedging instrument. deferred income TaX asseTs and liaBiliTies Deferred income tax assets and liabilities are recognized based on estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. a corresponding amount of provision is recognized in the financial statements.
the effective portion of the gain or loss on a derivative instrument designated as a cash flow hedge is recorded as a accumulated other comprehensive income and the ineffective portion is recorded in current operations. 2008 and 2007. and should not be construed as a representation that the won amounts shown could be readily converted. the decline in value is deducted from the book value and recognized as an asset impairment loss in the current period. 3.067 financial institution bonds ￦ 982. provided herein. have been restated to reflect the exchange rate in effect on December 31.257 to uS$1. CaSh SuBJeCT To WiThdraWal reSTriCTionS cash deposits subject to withdrawal restrictions as of December 31. 2008. represent supplementary information solely for the convenience of the reader.S.548 ￦ 70. the u. (In millions of Korean won) 2008 call loan certificates of deposit Bonds time deposits others ￦ 157 2007 ￦ 9.S. dollars at the rate of ￦1. which were previously expressed at ￦938 to uS$1. consist of the following: (In millions of Korean won) 2008 Short-term financial instruments government-sponsored research and development projects other activities long-term deposits and other assets Special deposits other activities ￦ 24.505 2007 ￦ 35. includes accrued interest income amounting to ￦2.307 131 270. dollar amounts. the rate in effect on December 31. the exchange rate in effect on December 31. Such presentation is not in accordance with generally accepted accounting principles in either the republic of Korea or the united States. ShorT-Term aVailaBle-for-Sale SeCuriTieS Short-term available-for-sale securities as of December 31.S.882 .067 147. consist of the following.561 622. consist of the following: (In millions of Korean won) 2008 Beneficiary certificates ¹ ² 2007 ￦ 775. physical damage. 2008 and 2007.180 ￦ 19 9 ￦ 69 374 ￦ 393 5.151 231. or the decline in the fair value of the asset.493 maturity within 1 year within 1 year ￦ 982. uniTed STaTeS dollar amounTS the company operates primarily in Korean won and its official accounting records are maintained in Korean won. 2008 and 2007. the gain or loss recognized as accumulated other comprehensive income is added to or deducted from the asset or the liability.733 ￦ 60 34. all won amounts are expressed in u. dollar amounts. Beneficiary certificates as of December 31.340 ￦ 922.911 127.632 36.67 that is attributable to a particular risk.500 1. the 2007 u. 2007. the Balance as of December 31.677 million. realized or settled in u.833 1. 4. 2007. 2008. dollars at this or at any other rate.S. 2. If the hedged transaction results in the acquisition of an asset or the incurrence of a liability. asseT imPairmenT when the book value of an asset is significantly greater than its recoverable value due to obsolescence.228 ￦ 60.414 101.546 392. the effective portion of the gain or loss recorded as accumulated other comprehensive income is reclassified to current operations in the same period during which the hedged forecasted transaction affects earnings.
133. 2008 and 2007.861 (55. 2007 ￦ 9. changes in valuation gain or loss on short-term available-for-sale securities are as follows: (In millions of Korean won) valuation gain on available-for-sale securities 2008 Beneficiary certificates financial institution bonds Deferred income tax Balance at January 1.143 as of December 31.814) ￦ 12. 2008 ￦- ￦ 5.510) ￦ 3. 2007 ￦ 5. are as follows: (In millions of Korean won) 2008 trade accounts and notes receivable less: allowance for doubtful accounts other accounts and notes receivable less: allowance for doubtful accounts Discounts on present value ￦ 12.147 (196) ￦ (196) - (196) ￦ (196) ￦- (In millions of Korean won) valuation gain on available-for-sale securities 2007 Beneficiary certificates financial institution bonds Deferred income tax Balance at January 1.979 ￦ 1.067 included in earnings ￦ 5.582.493 included in earnings ￦ 9.466) ￦ 11.558.125. 2007 ￦- valuation amount ￦ 5.043.801 (24.493 ￦ 9.067 (2. and their allowance for doubtful accounts as of December 31. 2008 and 2007.010.483) (99) ￦ 1.notes to the ConsolIdAted fInAnCIAl stAtements ContInued for the years ended December 31.493 (1. 2008 ￦- valuation amount ￦ 12.067 ￦ 5.493 valuation loss on available-for-sale securities Balance at January 1.085 valuation loss on available-for-sale securities Balance at January 1.279 (21.085 5.085 ￦ 5.180.493 12.493 Balance at december 31.085 Balance at december 31.920) ￦ 9. . 2008.600) (58) ￦ 989. 2007 ￦ - ￦ 9. 2008 ￦ 12. aCCounTS and noTeS reCeiVaBle accounts and notes receivable.493 ￦ 12.067 valuation amount ￦- included in earnings ￦- Balance at december 31. the company has credit insurance with Korea export Insurance and overseas insurance companies against its export accounts receivable with their approved foreign customers.983 (580) ￦ (580) (196) ￦ (196) (580) ￦ (580) (196) (196) 53 ￦ (143) 6.132 ￦ 1.493 valuation amount ￦- included in earnings ￦- Balance at december 31.598 (89.793 2007 ￦ 11. 2008 ￦ 5.
066 2. losses on valuation of inventories.968.935 3. 2008 and 2007. including current portions.270 million and ￦4.623.131 as a consolidation entry to account for the sale of subsidiaries’ receivables.041 567. 2008 and 2007. consist of the following: (In millions of Korean won) 2008 finished goods and merchandise Semi-finished goods and work-in-process raw materials and supplies materials-in-transit ￦ 3.853. the company has recognized borrowings of ￦3. inVenTorieS Inventories.418 2007 ￦ 4.113. .770 1.384.980 1.834 2007 ￦ 2.735 2007 ￦ 1. Samsung card transferred credit card receivables and financial assets to SangrokSoo 1st Securitization Specialty.296 million (2007: ￦258.795.067.511 2. 2008 and 2007.022 discount ￦ 13.275 ￦ 9. are as follows: (In millions of Korean won) 2008 asset-backed securities with recourse trade accounts receivable with recourse trade accounts receivable without recourse ￦ 1.340.396.083 million).055.301 357.787 million). are as follows: (In millions of Korean won) accounts long-term loans and other receivables long-term payables and other payables face value ￦ 169. Badbank harmony and Badbank heemang moah Securitization Specialty in accordance with the “personal credit rehabilitation” program in exchange for cash.5 ~ 2014.790. as of December 31.695.7 444.258.320 ￦ 3.261 Period 2004.121 843.885 from 2003 to 2005. while the subordinated bonds are recorded as held-to-maturity securities.049.492. net of valuation losses. 2008 (2007: ￦6. the preferred stock is recorded as available-for-sale securities. the outstanding balances of financing receivables sold to financial institutions as of December 31.261.3 7. respectively.1 ~ 8.761 Present value ￦ 155.301 2002.563 1.206. as of December 31.11 weighted-average interest rate (%) 3.246 ￦ 7.607 1.7 7.7 ~ 8.783 million as of December 31. 2008.380. accounts that are valued at present value under long-term installment transactions.037.12 ~ 2017.049. are as follows: (In millions of Korean won) 2008 asset-backed securities with limited recourse ￦ 3. amounted to ￦651. 2008 and 2007.602 87. preferred stock and subordinated bonds.803 Inventories are insured against fire and other casualty losses for up to ￦7.888 446.032 ￦ 2.69 the outstanding balance of trade accounts and notes receivable sold to financial institutions as of December 31.380 million as of December 31.309.
as of December 31.232 6..272 259.896.266.311.221 569.087 4.575.193. 2008.942) 5.523 .374.592 182.110 10.910) 6.863 428.332 232.619 547.594 68.000. ltd.987 (192.084 193.228 358.395 406. 2008 and 2007.848 78.964 (33.221 general loans ￦ 569. as of December 31.169 156.870 698. follows: (In millions of Korean won) year 2009 2010 2011 2012 2013 thereafter installment finance ￦ 306.274 804 62.466 Present values ￦ 25.171 198.959 423.852) 3.045.523 234.477 24.notes to the ConsolIdAted fInAnCIAl stAtements ContInued 8.636 438.904 88.422 (455. Samsung card co.601 506 ￦ 730.630 ￦ 997.691 ￦ 315.704.195) 3.722. finanCing reCeiVaBleS financing receivables of the consumer financing subsidiary.948 (441.420 348.215 6.027 20.845.783 143.790 557.225 minimum lease Payment ￦ 26.898 306.955 ￦ 9.006 2.016. are as follows: (In millions of Korean won) 2008 minimum lease Payment within one year from one year to five years more than five years unguaranteed residual value Present value adjustment financing lease receivables ￦ 29.792 ￦ 9.906 1.799. are as follows: (In millions of Korean won) accounts short-term financing receivables credit card assets lease assets Installment finance general loans call loans and others less: allowance for doubtful accounts long-term financing receivables credit card assets lease assets Installment finance general loans trust assets and others less: allowance for doubtful accounts 2008 ￦ 5.069.961 collection schedule of installment finance and general loans as of December 31.332 470.088 3. 2008 and 2007.137 2.503 maturities of finance lease.272 385.318 221.973 2007 Present values ￦ 29.441) ￦ 315.043 507.199 ￦ 493..388 801.807 (245.557 639 54.304 141.971.739 2007 ￦ 4.512 1.667 (64.395) ￦ 493.
712.002 3.268 ￦ 3.186 679.597 195.602 3.497 ￦ 2. properties under operating leases are classified as follows: (In millions of Korean won) 2008 automobiles electronic system less: accumulated depreciation accumulated impairment losses operating lease assets ￦ 993.71 the minimum lease receipts relating to operating lease agreements as of December 31.935.641 ￦ 682.712 2007 ￦ 867.052 462.546 879.010 12.703 270.168 1.497 ￦ 1.722 2007 recorded Book value ￦ 1.970 ￦ 607.322 1.618. 2008 and 2007.272 ￦ 454.561 ￦ 410. are as follows: (In millions of Korean won) 2008 within one year from one year to five years ￦ 242. exclude equity-method investees.967 3.033. 2008 and 2007.157 6.027.565 9.325 2007 ￦ 214. .707 212.471 2. long-Term aVailaBle-for-Sale SeCuriTieS and long-Term held-To-maTuriTy SeCuriTieS (1) long-teRm AvAIlABle-foR-sAle seCuRItIes long-term available-for-sale securities as of December 31.163 recorded Book value ￦ 3. consist of the following: (In millions of Korean won) 2008 detail listed equities ¹ non-listed equities ¹ government and public bonds and others (1) (2) acquisition cost ￦ 566. 2008 and 2007.000.268 as of December 31.122 315.410 1.262 682.
677 119.186 32.690 433.512.575 7.432 2.737 90.66 12.164 2. except for the number of shares and percentage) 2008 number of shares owned Samsung heavy Industries Samsung fine chemicals hotels Shilla cheil worldwide Samsung fire & marine Insurance Samsung Securities S1 corporation Samsung engineering cheil Industries Korea Information Service Saehan media tomen Device others 40.135.427 recorded Book value ￦ 5.112 19.339 797 1.374 18.112 8.195 400.505 50.900 5.560 2.320 6.027.900 15.629 98.588 514.991 500.900 5. these investments in affiliated companies were not valued using the equity method of accounting due to immateriality of their total asset balances or the company’s inability to exercise significant influence over the operating and financial policies.629 98. 2) non-lISteD equItIeS non-listed equities as of December 31.143 92. 2008 and 2007.123 1. consist of the following: (In millions of Korean won.90 100.26 2.299 2007 market value of investee ￦ 919.112 8.896 256.864 92. except for the number of shares and percentage) 2008 number of shares owned allat corporation ¹ Beijing t3g technology Bluebird Soft imarketKorea Kihyup technology Banking corporation Korea Digital Satellite Broadcasting Pusan newport renault Samsung motors Samsung electronics football club ¹ Samsung everland ¹ Samsung general chemicals Samsung life Insurance Samsung Petrochemical Samsung venture Investment corporation Symbian tu media yong Pyong resort others 300.730 2.00 25.864 92. 2008 and 2007.91 0.052 ￦ 1.713 107.23 acquisition cost ￦ 258.839 15.000 5.143.000 3.076 1.900 31.244 194.000 Percentage of ownership (%) 17.65 4.915 73.869 81.00 14.452 13.015.330 8.186 32.64 3.000 Percentage of ownership (%) 30.040 4.900 114.000 3.427 47.602 9.178 recorded Book value ￦ 5.163 ￦ 1.402 40.580 259.575 4.603 324.90 2.935.369 ￦ 859.330 8.251 131.000 256.478 1.32 12.120 1.673 6.478 1.698 ￦ 682.060 704.604 25. a separate component of equity.949 2.76 4.045 128.153 30.869 142.000 641.000 5.00 17.690 433. as of December 31.900 15.298.000 1.05 acquisition cost ￦ 1.000.969.35 5.000 3.85 4.512 1.000 64.040 4.002 1.432 1.861 33.24 0.523 378 11.635.746 9.000 380.000 400.104 2. 2008.306 581.142 ￦ 566.441 1.023 ￦ 3.074 10.523 378 11.878 39.207 9.677 143.377 3.076 1.112 8.452 13.915 1.51 6.360 119.161 61.535 ￦ 462.269 recorded Book value ￦ 919.000 1.70 1.449.000 140.505 50.000 600.307 17.716 2.217 1.900 130.notes to the ConsolIdAted fInAnCIAl stAtements ContInued 1) lISteD equItIeS listed equities as of December 31.018 18.194 16.489 285.153 30.344 5.163 the differences between the acquisition cost and fair value of the investment is recorded under accumulated other comprehensive income.441 1.000 3.500 2007 net Book value/ market value of investee ￦ 5.935.641 2.586 14.914.194 725.675.967 2.389 100.91 1.893 66.269 recorded Book value ￦ 1.61 11.677 87.412 ￦ 679.199 1.62 1.10 17.076 1.579 832.347 16.040 4.443 57.878 39.172 980.840 1.96 16.33 5. .869 140.529.529 11.668 56.722 114.900 5.15 19.244 194. consist of the following: (In millions of Korean won.472 2.71 1.
207) (2) long-teRm held-to-mAtuRItY seCuRItIes long-term held-to-maturity securities as of December 31.244. 2007 ￦ 1.701 ￦ 756.181 valuation amount ￦ (1.357 542 ￦ (1. a gain of ￦6. the maturities of long-term held-to-maturity securities as of December 31. 2008 ￦ (2.700 million.181 valuation amount ￦ (897) included in earnings ￦ (1.665) Deferred income tax and minority interest (1.581 Balance at december 31. the realizable value subsequently dropped and a loss of ￦3. 2007 ￦ (2.086) valuation amount ￦ 1.722) gain and loss on evaluation of available-for-sale securities for 2007 are as follows: (In millions of Korean won) valuation gain on available-for-sale securities Balance at January 1. consist of the following: (In millions of Korean won) maturity from one year to five years recorded book value government and public bonds ￦ 97 aBs subordinated securities ￦ 334.287 the subordinate bonds of SangrokSoo 1st Securitization Specialty were previously impaired by ￦404.885 million for the year ended December 31.363 ￦ 334.122 ￦ 147.318) Balance at december 31.460 face value ￦ 165 572. gain and loss on valuation of available-for-sale securities for 2008 are as follows: (In millions of Korean won) valuation gain on available-for-sale securities valuation loss on available-for-sale securities Balance at January 1.519. the company’s investments in Pusan newport are pledged as collateral against the investee’s debt.483 million was recognized during 2008.823 458 ￦ (1. 2008 ￦ (1.550) ￦ 843.441.077. as of December 31.798 2007 recorded Book value ￦ 97 334. 2008. 2008. as the subordinate bonds of Badbank heemang moah Securitization Specialty recovered.274) included in earnings ￦- Balance at december 31.460 . the subordinate bonds of Badbank heemangmoah Securitization Specialty were also previously impaired by ￦20. consist of the following: (In millions of Korean won) 2008 face value government and public bonds aBS subordinated securities ￦ 97 756.426.358) ￦ 1.374 valuation loss on available-for-sale securities Balance at January 1. 2007 ￦ 2.538 million was recognized in 2008. 2008 (2007: ￦6.406 ￦ 572. 2008 and 2007.363 Total ￦ 334.388 included in earnings ￦ 11.583 million.571 recorded Book value ￦ 165 147.234 million). 2008 ￦ 1.907 Balance at January 1.092.264) Deferred income tax and minority interest (598.665) valuation amount ￦ (599) included in earnings ￦- Balance at december 31. 2008 ￦ 2.519.286. 2007 ￦ (1.73 Impairment losses on cost-method investments resulting from the decline in realizable value below the acquisition cost amounted to ￦2.
consist of the following: (In millions of Korean won.833 223.413 .427) 3.084 19.614 894.152 210.726 12.746) 412.68 22.939 184.271 1.617 ￦ 11.27 42.362 202.175 other increase (decrease) ￦ (26.807) - 445.165 135.246.751) ￦ 104.188 50.936 (13. 2008.46 21. 2007.753 17.000 195.000 19.237 211.notes to the ConsolIdAted fInAnCIAl stAtements ContInued 10.419 Samsung SDI Samsung electromechanics Samsung techwin Samsung SDS Samsung corning Precision glass Samsung thales Siltronic Samsung wafers others ￦ (131.726 12.00 ￦ 423.766) (5.895 ￦ 3.500.753 297.867 ￦ (263.205 258.020 184.771.846.020 13.604.246.801 116.118 125.753 17.27 42.376 1.290 247.394 448.830 397.708 19.790 1.531 275.873.123 1.411 178.165 13.657 Balance at Beginning of year ￦ 920.770 7.134 447.500.413 (35.695 ￦ 2.978 427.302.123 1.000 445.045 184.268 (40.079 Samsung SDI Samsung electromechanics Samsung techwin Samsung SDS Samsung corning Precision glass Samsung thales Siltronic Samsung wafers others 359.393.217 ￦ 837.512.782.753 297.693.205 258.135) 445.970 34.938 Balance at Beginning of year ￦ 893.879 394. equiTy-meThod inVeSTmenTS equity-method investments as of December 31.254 11.00 ￦ 423.710 128.80 25.418) ￦ 4. except for the number of shares and percentage) investee number of Percentage of acquisition shares ownership (%) cost owned 9.722 net Book value of investee ￦ 911.970 445.714 48.254 11.54 50.570 261.54 50.084 19.862 equity-method investments as of December 31.710 128.091) 116.165 13.282.101.512.68 22.592 (6.209 146.956 264.062.693.695 ￦ 2.819 433.00 50.000 19.977.00 50.356.626 15.604.410 210.473.669) (4.830 447.770 7.000 11.977. except for the number of shares and percentage) investee number of Percentage of acquisition shares ownership (%) cost owned 9.751 647.515) Balance at end of year ￦ 874.755 146.411 178.781 359.320 758.237 211.282.975 ￦ 3.419 earnings (losses) from equity -method investments ￦ 7.899 216. consisted of the following: (In millions of Korean won.46 21.170 ￦ 3.720 49.948 5.075 77.828 ￦ 3.389 earnings (losses) from equity -method investments other increase (decrease) Balance at end of year ￦ 893.224 (57.147) (35.244 272.165 135.226 (165.278 ￦ 4.067) (233.782.773 128.80 25.306 18.722 net Book value of investee ￦ 892.945 (9.034) 61.285 409.140) ￦ 377.265 408.
303 280.100 2.615 826.946 794.840) 3.874 ￦ 6.199 132. are as follows: (In millions of Korean won) 2008 inventories Samsung SDI Samsung electro-mechanics Samsung techwin Samsung SDS Samsung corning Precision glass others ￦ (645) 2007 Total ￦ (475) Property.236) Total ￦ (12.219) 312 ￦ (5.355 1.936.411 .534 112.595. Plant and equipment and intangible assets ￦ 170 inventories ￦ 1.349 1.455 605.240.080 73.145 2.196 2.810 Property. are as follows: (In millions of Korean won) 2008 market value of investee Samsung SDI Samsung electro-mechanics Samsung techwin ￦ 510. follows: (In millions of Korean won) 2008 investee Samsung SDI Samsung electromechanics Samsung techwin Samsung SDS Samsung corning Precision glass Samsung thales Siltronic Samsung wafers others assets liabilities sales net income (loss) assets 2007 liabilities sales net income (loss) ￦ (592.900.244 272.146 market value information of publicly listed investees as of December 31.828.977. recognized as part of equity earnings (losses) from equity method investments.303 recorded Book value ￦ 893.419 589.690.75 eliminated unrealized gains and losses as of December 31.851 (70.599.287 1.847 (18.904 ￦ 3.931 7126.96.36.1993 869.593 239 194 500 (4.319 445.348 480.064) 128.133 455 767 (35.951) 443 ￦ (17.519.125 345 (12) (28.570.683 536.300 1.425 3.738 218.176 (7.179 974.204 2.551 2007 recorded Book value ￦ 874.827 588. 2008 and 2007.974 3.678) 395 ￦ (25.987 4. Plant and equipment and intangible assets ￦ (14.880 1.755 (2.818 3.243.627 37.088 1.519 ￦ 1.946.100 1.299 575.129 265.584 1.407) 676 (2.833 634.440.434 2.099.736.465 3.973 1.721 445.707.465 ￦ 38.232 23.431 3.293) 95.071 ￦ 1.191.649.218) amounts in the table represent eliminated unrealized gains and losses for the years ended December 31.731 646.390.959 873.690 3.968.128 3.792. 2008 and 2007.079 market value of investee ￦ 617.350 558.244.446.183) ￦ 5.821 3.789 203. 2008 and 2007.189.223.623 232.811) 8.587 674.033 767.310) 8.141) 139 ￦ 6.796.231 ￦ 4.180 558.426) 3.910.852.897) 707 ￦ (31.213) 1.470) 8 110 779 (7.092) 582 ￦ (11.205 258.968 1. financial information of investees as of and for the years ended December 31.209 226.308. 2008 and 2007.516 (2.142 48.441 3.
or are in the process of liquidation. 2.031.875) 5.887 (43.576) 67. consist of the following: (In millions of Korean won) 2008 Balance at January 1. 2008 and 2007.890) (9.250 million and ￦1.365.297.017) ￦ 243.00 45. January 1.574 as of December 31. share of equity-method investees’ other comprehensive income and loss included the tax effect of ￦48.337 (43.158 machinery and equipment ￦ 21.986 (58. 2008 and 2007.887) ￦ 98.062. respectively.476) 845.S.354.330 Buildings and structures ￦ 7.notes to the ConsolIdAted fInAnCIAl stAtements ContInued Share of equity-method investees’ other comprehensive income or loss as of December 31. 2008 Share of equity. 2007 ￦ 251.462 12.031 (26.190.071 33.64 30.727.269.380.212.644 22.737 ￦- ￦ 257.094 45. 11.707 Total ￦ 37.038 - 3.003) ￦ (266) (579) ￦ (579) (13.629 (245.method investees’ other comprehensive income Share of equity-method investees’ other comprehensive loss valuation amount Balance at included in Balance at earnings december 31.027.729) .327) (632.439) (290.574 (6.479 ￦ 143.60 reason absence of significant influence absence of significant influence limited assets limited assets under liquidation limited assets Samsung electronic ticaret a.278) 91. are as follows: (In millions of Korean won) 2008 Balance at January 1.387 ￦ 3.507.035.826 14.910.168.092 265.893 1.862. in accordance with the monopoly regulations and fair trade law no.021 constructionin-Progress/ machineryin-Transit ￦ 3.075.741 (65.496.162. these investments are excluded from the application of equity method of accounting either because their total assets at the prior fiscal year end were less than ￦7.112 (2.681 (95.249) (606. 11. ² 1.853 1.428 Tools and vehicles ￦ 1.243) 456.035. properTy.092 - 12. planT and equipmenT changes in property.038 455.616. 2008 acquisition cost accumulated depreciation 3.609) (8.040 (49.006 (10.150.800.154.189.00 28.855. the company has not applied the equity method of accounting for following investees: location Korea subsidiaries Samsung everland ¹ allat ¹ International cyber marketing asia future technology & Service ² ² Percentage of ownership (%) 25.212.633 ￦- ￦ 251.391) ￦ (2.462 ￦ 1. Investments are excluded from the application of equity method of accounting because the company does not have the ability to exercise significant influence over the operating and financial policies.188 million.705) 48.975 172.921.141.017) ￦ 243.421 ￦ 9.000 million.957) ￦ 5.958 ￦ 109.441) ￦ 243. plant and equipment for the years ended December 31. 2008 2007 2007 valuation amount included in Balance at earnings december 31.591 (8.475.591 ￦ 5.529) 1.457 ￦ 42. 2008.144 ￦ 24.917.701 8.311 Balance at december 31.104 (2.00 20. 2008 acquisition transfer Disposal Depreciation others 1 land ￦ 3.810) 82.469 (3.328 ￦ 141.391) (8.
274 .025. a component of equity.051.683) ￦ 3.834.326 million.516 ￦ 787.437.141.921.380.007 (248.644.249 2007 ￦ 26. as of December 31. the value of land owned by the Sec and its domestic subsidiaries based on the posted price issued by the Korean tax authority amounted to ￦4.585 thousand and ￦5.166.987 (11. Samsung card. in accordance with the asset revaluation law.516 (43. were credited to capital surplus. 1999.376 million (2007: ￦4.354.643 ￦ 37.095 (34. Property. plant and equipment by ￦63.995) (51.848 371. 2008. 2007 acquisition cost accumulated depreciation land ￦ 2.021 11. 2008 and 2007. were credited to capital surplus.194.191.631.556) 56.680 ￦ 21. Sec revalued a substantial portion of its property.629 (140.564.661 83.031 (2.686.154.109 ￦ 3.046.597 thousand.354. equipment are insured against fire and other casualty losses.173 ￦ 196.493 million (2007: ￦22.819 Buildings and structures ￦ 6.976.330 - 10.800.327 123.801 2007 ￦ 30.078 million) and ￦22. the remaining revaluation increments amounting to ￦62.200 ￦ 239.154.784. as of December 31.707 1. 2008 and 2007.391 9.537 (469. Samsung gwangju electronics. on January 1.975) (7. net of revaluation tax.731 million) of operating lease assets.594) (516.774 76.589 213.537 constructionin-Progress/ machineryin-Transit ￦ 4. also. 2008 and 2007. equipment and investments in equity securities by ￦3. 2008 and 2007. In accordance with the asset revaluation law.301. and business interruption losses of up to ￦85. 1982.707 12. is allocated to following accounts: (In millions of Korean won) account Production costs Selling and administrative expenses research and development expenses 2008 ￦ 32. 12. plant.954) 1.919 ￦ 1.615 8. plant.618 ￦ 7.872 million.074) 3.598 (39. net of revaluation tax.675. credits to deferred foreign currency translation losses and others. the remaining revaluation increments amounting to ￦1.627 amortization expense of the intangible assets for the years ended December 31. cancellation lease assets and prepaid finance lease assets acquired through the lease financing business (note 8).251. an Sec subsidiary. 1980.901 363.158 604.148) 31.863 303.124.082 ￦ 704.637.885 405.574 million) as of December 31. a certain portion of overseas subsidiaries’ property.324) 77.098 Total ￦ 33. 2000.083) (8.068) 114.644 3.428 291.292.342.119 Tools and vehicles ￦ 1. recorded ￦690.424) (492. an Sec subsidiary.714 (2.737.301) 43.619) 85.662 89.090) 5.428 - 3.330 151. inTangiBle aSSeTS Intangible assets as of December 31. 2008. 2007 acquisition transfer Disposal Depreciation others 1 Balance at december 31.185 million (2007: ￦69.042 machinery and equipment ￦ 19.145 million. respectively as of December 31.187 million (2007: ￦626.764.424. respectively is pledged as collaterals for various loans from financial institutions.251 million equivalent to uS$5. on october 1. a component of equity. plant and equipment amounting to ￦5. revalued a portion of its property.612 million.644 314.766 million equivalent to uS$4. consist of the following: (In millions of Korean won) 2008 goodwill Intellectual property rights others ￦ 9.77 (In millions of Korean won) 2007 Balance at January 1.342.843 (36. 1998 and april 1.150.454.816.885 million).208. others include amounts from changes in scope of consolidation and changes in foreign currency exchanges rates.
274 13.726 others ￦ 389.774 76.630 567.662 89.160 4.022 ￦ 9.391.564 (3.0 ~ 3. 2008 general term loans from commercial banks notes discounted usance financing.7 lIBor +2. 2008 and 2007.069 Total ￦ 658.173 ￦ 196. others include amounts from changes in scope of consolidation and changes in foreign currency exchange rates.779. 2007 acquisition Disposal amortization others 2 1 goodwill ￦ 6.160 million) and current maturities of long-term debts of ￦2.274) 4.885 million) as of December 31.8 ~ 8.627 Balance at december 31.127.0 2008 ￦ 1.426 million (2007: ￦1.346 4. as of December 31. the above short-term borrowings include those of Samsung. including document against acceptance loans incurred from intercompany transactions Short-term borrowings of overseas subsidiaries 3.712 489.164) (196.026.878.500 2007 ￦ 1.594 14.280 ￦ 704. a consumer financing subsidiary. 2008 and 2007. 2008 and 2007.189.776 negative goodwill ￦ (186) intellectual Property rights ￦ 262.243.329) (41) ￦ 314.145) (134.327 123.082 244.0 0.370 ￦ 1.680.200 ￦ 239. the amortization expense of intangible assets for the years ended December 31. In addition.644 186 ￦- 113.099 certain bank deposits and property. acquisitions include amounts transferred from other accounts such as construction-in-progress.875 363.552 ￦ 8. In addition. 2007 the changes in intangible assets for the years ended December 31. long-Term depoSiTS and oTher aSSeTS long-term deposits and other assets as of December 31.071 42.notes to the ConsolIdAted fInAnCIAl stAtements ContInued (In millions of Korean won) 2007 Balance at January 1.453.500 million and ￦1. is allocated to the following accounts: (In millions of Korean won) account Production costs Selling and administrative expenses research and development expenses 2008 ￦ 32.762 million (2007: ￦2.181) 219 ￦ 26.901 108.109. Sec guarantees repayment of substantially all short-term borrowings of overseas subsidiaries (note 19).933.000 674.8 ~ 8. net long-term prepaid expenses others ￦ 895. 2008 and 2007 consist of the following: (In millions of Korean won) annual interest rates (%) as of december 31.000 million. plant and equipment are pledged as collaterals for the above borrowings.385 22.387 1.019) (58.616.600 368.177.245 2007 ￦ 793.655. 2008 and 2007 overdraft facilities of the company amount to ￦930. consist of the following: (In millions of Korean won) 2008 long-term guarantee deposits long-term trade receivables.4 5.661 83.006 (3. 2. .801 2007 ￦ 30.351 ￦ 1.950) 4.830 (3.6 ~ 26.102 ￦ 363.400 (6. are as follows: 1.737 27. ShorT-Term BorroWingS Short-term borrowings as of December 31. 2008.775 354.065.762 3. amounting to ￦1.
985) ￦ 4.5 4.4 2008 ￦383.337.826.292 234.346.633.602.916.728 as of December 31.117) (2.902 (10.3 1.158 (c) Debentures outstanding as of December 31.843.663 (B) long-term debts denominated in foreign currencies as of December 31.638 151.7 ~ 10 2008 ￦ 68 (In millions of Korean won) 2007 ￦ 282 97. and property. consist of the following: annual interest rates (%) as of december 31.257.678) ￦ 3. certain bank deposits.682 ￦ 1.920.498 million) as of December 31.031.328 (2.881 471.638 2007 ￦ 623.7 ~ 4.550 278.179 5.564 962.000 (3.568 ￦ 768.119 million (2007: ￦836. 2008 and 2007.406 (1.982.4 ~ 8.4 ~ 9. 2008.532 8. 2008 Korea energy management corporation Samsung Shinhan 4th Special Purpose company others 4.773.500 ￦ 623.002 671.2 2008 ￦ 5. 2008 Shinhan Bank and others royal Bank of Scotland and others foreign financial institutions (overseas subsidiaries) 2. consist of the following: annual interest rates (%) as of december 31.468) ￦ 5. Included in the long-term debts are the borrowings of Samsung card with an aggregate amount of ￦867.000 5.371) ￦ 5. In addition. plant and equipment are pledged as collaterals for the above long-term debts (notes 4 and 11).379 43.722 ￦ 569.532 265.564 4. 2008. 2008 non-guaranteed debentures Subordinated convertible bonds add: Premium for non-executed rights less: conversion rights Discounts 4.346. Sec guarantees repayment of substantially all long-term debt of overseas subsidiaries (note 19).000 (In millions of Korean won) 2007 ￦ 4.633.79 15. 2008 and 2007 consist of the following: (In millions of Korean won) reference Korean won loans foreign currency denominated loans Debentures less: current maturities (a) (B) (c) 2008 ￦ 768.476 (In millions of Korean won) 2007 ￦ 56. consist of the following: annual interest rates (%) as of december 31. 2008 and 2007. long-Term deBTS long-term debts as of December 31. 2008 and 2007.158 5. (a) Korean won loans as of December 31.663 1.379 4.920.179 .916.957 569.
will be repaid at their maturities.511 23.700) 396.158 2.000 ￦ 5.463 2007 ￦ 93.034.750 733.866 701.638 230. (C) overseas subsidiaries overseas subsidiaries’ bonds will be repaid at maturities with the biannual interest payments over the terms of the bonds.850 2.980.186 ￦ 402.470) ￦ 228.000 Total ￦ 2.009) ￦ 390. 2008 and 2007.257.504 foreign currency loans ￦ 268.notes to the ConsolIdAted fInAnCIAl stAtements ContInued maturities of long-term debts outstanding. with repayments to be made annually for 20 years after a ten-year grace period from the date of issuance. consist of the following: (In millions of Korean won) reference sec and domestic subsidiary uS dollar denominated straight bonds uS dollar floating rate notes overseas subsidiaries uS dollar denominated fixed rate notes uS dollar denominated fixed rate notes less: Discounts current maturities (a) (B) (c) (c) due date october 1.063 31.132.402 .000 40. one of Sec’s domestic subsidiaries. (B) us dollar floating rate notes uS dollar floating rate notes issued by Samsung card.460 ￦ 8. excluding premiums and discounts on debentures.796 16. foreign CurrenCy noTeS and BondS unsecured foreign currency notes and bonds as of December 31.468.402 (5. as of December 31.288 157.702 (6.680. 2008.422 21. outstanding as of December 31.693 98.438 31.000 20.362 debentures ￦ 1. 2027. Interests will be paid every quarter. are as follows: (In millions of Korean won) for the years ending december 31 2009 2010 2011 2012 thereafter local currency loans ￦ 9.658 (A) us dollar denominated straight bonds on october 2. 2010 april 1. Sec issued straight bonds in the amount of uS$100 million at 99.352 6.000 3.594 112.346.85% of face value.854 54.113) 233. maturities of foreign currency notes and bonds. Sec has provided guarantees over the overseas subsidiaries’ bonds.604 2.000 1. 2027 august 28.820 220.272 63.288 6.7% per annum and will mature on october 1.920. 2030 2008 ￦ 119.164 92. 2027 april 1.455 23.460 ￦ 1.455 239.200. are as follows: (In millions of Korean won) for the years ending december 31 2009 2010 2011 2012 thereafter foreign currency notes and Bonds ￦ 6.128 (4. 1997. the bonds bear interest at 7. 2008.288 226.241 (6.430 ￦ 768.438 402.
based on historical experience and terms of guarantees (1 ~ 4 years). are as follows: (In millions of Korean won) 2008 reference warranty reserves royalty expenses long-term incentives Point reserves allowance for undrawn commitment (a) (B) (c) (D) (e) January 1.099 232.994 decrease ￦ 1. the company funded 60% of severance payable through severance insurance deposits with Samsung life Insurance and Samsung fire & marin Insurance.041.342. 2007 ￦ 703.349 - 12. .194) (61.587 157.326.769. 2008 ￦ 1.077 975.880 (In millions of Korean won) 2007 reference warranty reserves royalty expenses long-term incentives Point reserves (a) (B) (c) (D) January 1.329 173.077 increase ￦ 1.238 274.605 2.887 163.384 220.545 2.391. 2008.870 706.126.81 17. consist of the following: (In millions of Korean won) 2008 Balance at the beginning of the year Provision for severance benefits actual severance payments others 1 less: cumulative deposits to the national Pension fund Severance insurance deposits retirement pension operating assets Balance at the end of the year ￦ 2.239.980 (286. retirement pension operating assets as of December 31.638 - 1.692 1. as of December 31. (a) the company accrues warranty reserves for estimated costs of future service. others include amounts from changes in scope of consolidation and changes in foreign currency exchange rates.147 40. aCCrued SeVeranCe BenefiTS change in accrued severance benefits for the years ended December 31.644 december 31.932 39.467) (1.423 (10.445 340.713 2007 ￦ 1.145 146.880 691.903 - 1.488 decrease ￦ 938.233 615. 2007 ￦ 929.041.313.239 176.875 - 661. 18. 2008 consist mostly of financial instruments.852 others1 ￦ 37.385 543.803) 3.358 124.440 1.852 december 31. the timing of payment depends on the settlement of agreement. Samsung card. (B) the company makes provisions for estimated royalty expenses related to technical assistance agreements that have not been settled. aCCrued eXpenSe changes in main liability provisions for the years ended December 31.806) ￦ 850.797 increase ￦ 1.145 146. implemented a defined benefit pension plan with Samsung life Insurance in accordance with employee retirement Benefit Security act.635 156.747) ￦ 739.848 134.342. others include amounts from changes in consolidated subsidiaries and foreign currency exchange rates. (c) the company introduced long-term incentive plans for its executives based on a three-year management performance criteria and has made a provision for the estimated incentive cost for the accrued period.875) 14.875 1.573 232. 2008 and 2007.231 others1 ￦ 146. 2008 ￦ 929. repairs and recalls.563) (50.343.586 (346.551 178. In addition.932 39.489.328 455. one of Sec’s domestic subsidiaries.756. 2008 and 2007.936 1.713 (11.190) (1.
857 million (2007: ￦41. 2008.297 89.323 million. (e) Samsung card. assets recorded under finance lease agreements are included in property.866 70. 2008.549) ￦ 72. the company uses derivative instruments. principally for related parties.564 ￦ 72. 19. accrues allowance for undrawn commitment based on credit conversion factor and forwardlooking criteria according to regulations on supervision of credit-specialized financial business. CommiTmenTS and ConTingenCieS (a) as of December 31.045 38.787 million). in relation to its payment to ameX. Depreciation expense for the finance lease assets amounted to ￦5. one of Sec’s foreign subsidiaries. Sec is contingently liable for guarantees of indebtedness.240 32.379 25. are as follows: (In millions of Korean won) 2008 minimum lease Payments within one year from one year to five years more than five years Present value adjustment financing lease liabilities ￦ 10. 2008. and the foreign currency swap and interest rate swap contacts as cash flow hedges. the company has technical assistance agreements with certain companies requiring payment for use of the technology or from sales of products manufactured using such technology. approximating ￦10.314 million. plant and equipment under various finance lease arrangements.132 million for employees’ housing rental deposits. the company’s overseas subsidiaries enter into “cash Pooling arrangement” contracts and “Banking facility” agreements with overseas financial institutions to provide mutual guarantees of indebtedness. 2008 and 2007.644 million (2007: ￦2.678 55. Sec is contingently liable for guarantees of indebtedness up to a limit of ￦250.928 (41.507) ￦ 58.403 113. a domestic subsidiary.770 minimum lease Payments ￦ 7. 2008.notes to the ConsolIdAted fInAnCIAl stAtements ContInued (D) Samsung card. Sec is contingently liable for guarantees amounting to uS$21. accrues point reserves based on estimated expenses of future service to reward loyal members and expand customer base.305 (e) In accordance with its risk management policy.659 2007 Present values ￦ 8. the company designates the forward exchange contracts as fair value hedges.812 (31. plant and equipment with a net book value of ￦52. as of December 31. In addition. the minimum lease payments under finance lease agreements and their present value as of December 31. Sec and its domestic subsidiaries have been insured against future contract commitments of up to ￦143.297 million on drawn facilities which have a maximum limit of uS$4.379 26. as of December 31. primarily forward exchange contracts. (c) as of December 31. as of December 31. (D) the company leases certain property.837 Present values ￦ 6. Sec is providing a uS$23 million guarantee for Samsung electronics hungarian relating to the investment incentive contract with the hungarian government. 2008.312 million in loans and uS$2. 2008. . area europe asia Participating subsidiaries SeuK and 18 other subsidiaries SaPl and 7 other subsidiaries financial institutions citibank and another bank Bank of america (B) as of December 31.576 31. Samsung card has been provided with a guarantee amounting to uS$3 million from woori Bank.305 20.6 million undertaken by citibank relating to the guarantees for Samsung electronics latinoamerica.489 ￦ 58. 2008. In addition.986 million) for the year ended December 31. foreign currency swap and interest rate swap contracts to hedge foreign currency exchange rate risks and floating interest rate exposures. a domestic subsidiary. as of December 31. 2008.
the conclusion of these matters will not have a material adverse effect on financial position of the company. a separate amount for breach of the agreement. Dram. following the investigation by the Justice Department. If the proceeds from sale of Shares are not sufficient to satisfy their obligations.383 asset (liability) ￦ 14.825 (62. the effects of this matter on the company’s financial statements can not be reasonably determined.105 2007 gain (loss) on valuation (equity) ￦- gain (loss) on valuation (i/s) ￦ 58.385 ￦ 131. 2008. Kun hee lee. and as the plaintiff in legal actions against 4 overseas companies including on Semiconductor corporation for alleged patent infringements. have trade notes receivable discounting facilities with financial institutions. In addition to cases mentioned above.032) of the amounts charged to accumulated other comprehensive income in equity from the valuation of derivative instruments. including the company. the second trial for this case is pending at Seoul high court. (f) the united States Department of Justice antitrust Division (the Justice Department). mr.149 - - (14.645) (5.045 shares of Samsung life Insurance (the “Shares”) donated by mr.000 million and a trade financing agreement with 23 banks including woori Bank for up to uS$9. several civil class actions were filed against the company in the united States. (g) Based on the agreement entered on august 24. and an amount for default interest.’s (“SmI”) bankruptcy proceedings.000 million. Sea and eight other overseas subsidiaries have agreements with financial institutions to sell certain eligible trade accounts receivable under which. european commission and other countries’ antitrust authorities initiated an investigation into alleged anti-trust violations by sellers of tft-lcD.634 billion to the creditors by disposing 2.000 million). In relation to the credit sales facility agreement with woori Bank (up to ￦70.83 a summary of derivative transactions as of and for the year ended December 31.165. although the outcome of these matters is uncertain. In addition. Sram and flash memory. the company also has loan facilities with accounts receivable pledged as collaterals with four banks. (h) as of December 31. other Samsung group affiliates. Seoul administrative court made the ruling on this case. including woori Bank. 1999. . excluding 1. a maximum of uS$1. the creditors have sought ￦2. and currently. with respect to Samsung motor Inc.711 million can be sold. on January 31. under the suit. the ultimate outcome of this case can not be determined at this time.717) ￦ 122. including Shinhan Bank with a combined limit of up to ￦718. 2009. a loss of ￦3.832 (39. former chairman of the company. Samsung group affiliates were ordered to pay default interest on ￦1. 2008.603 million will be realized by December 31. as of balance sheet date.888) ￦- ￦- (9. Sec has a credit sales facility agreement with two banks. Sec has recourse obligations on the receivables where the extensions have been granted on the credit periods.000 million.216) ￦ - (3.634 billion at 6% per annum for the period from January 1. the company has been named as a defendant in legal actions filed by 25 overseas companies including Sharp corporation. 2008 and 2007. the ultimate effect of this matter on the financial position of the company cannot be determined. Samsung group affiliates were obligated to satisfy the shortfall by either participating in the creditors’ equity offering or purchasing subordinated debentures issued by the creditors. on an ongoing basis.955 shares already sold by the creditors.044) ￦ 2. one of Sec’s domestic subsidiaries. follows: (In millions of Korean won) 2008 Type forward exchange Interest rate swap currency swap asset (liability) ￦ 59. Samsung motor Inc. 2008. the company’s management believes that. ( I ) as of December 31.774 million. 2001. and 28 Samsung group affiliates including the company under joint and several liability for failing to comply with such agreement. the company. lee. to the date of settlement.000 million) and Kookmin Bank (up to ￦200. under the ruling.334. 2008.’s creditors (“the creditors”) filed a civil action against mr. Since the amount of company’s obligation is uncertain. Sec and living Plaza. and the creditors all have appealed the ruling. In addition. lee.450 billion for loss of principal on loans extended to SmI. the outcome of the investigation and civil actions is uncertain and accordingly.417) ￦ 13. the company has been involved in various claims and proceedings pending in the normal course of business as of December 31.942) ￦ 502 (61. for up to ￦875. Samsung group affiliates were ordered to pay approximately ￦1. including woori Bank and an accounts receivable factoring agreement with Korea exchange Bank for up to ￦150.898 (39.
which do not have a direct adverse effect on the operations or financial position of the company. participating preferred stock that are non-voting and entitled to a minimum cash dividend at 9% of par value.795. as of December 31. 2008.716 . and are entitled to an additional cash dividend of 1% of par value over common stock. 1997.833. ￦3. other than current shareholders.500 billion and ￦500 billion are assigned to common stock and preferred stock. 20. to financial institutions as collaterals for bank borrowings and for the fulfillment of certain contracts. 2008 and 2007.Share of gDr 3. respectively. to retire treasury stock in accordance with applicable laws up to the maximum amount of certain undistributed earnings. urgent financing with financial institutions. subject to the Board of Directors’ approval.570 17. the Samsung card is obliged to redeem the issued securities. the number of outstanding gDr as of December 31.000 billion. were all issued on or before february 28. Sec is also authorized.000 billion and ￦1. 2008. Sec is authorized to issue to investors. and strategic alliance.575. subject to the Board of Directors’ approval. with the Board of Directors’ approval. of which 100 million shares are cumulative.000 million.874 8. Sec’s domestic subsidiaries have provided a blank note and two notes amounting to ￦30. including Kookmin Bank. the transfer is with recourse and was completed through a Special Purpose entity (“SPe”) issued securities.000 million with Korean banks. 147.885 million) remain uncollected and outstanding with the financial institutions. to issue shares of common or preferred stock to investors other than current shareholders for issuance of depository receipts.744 common stock non-voting Preferred stock 2007 common stock 10. while the debentures with warrants amounting to ￦1.000 billion are assigned to common stock and preferred stock. respectively.000 per share. a transfer of the financial assets has been recognized as a sale.427 shares of preferred stock have been issued.000 billion and ￦2.000 million with Korean banks.037.299. exclusive of retired stocks. 8.750 million). CapiTal SToCK under its articles of Incorporation.323. general public subscription. ( J ) as of December 31. including hana Bank.Share of Stock .016 million for the year ended December 31. are as follows: 2008 non-voting Preferred stock outstanding gDr . 2008 (2007: ￦852. ( K ) a domestic subsidiary of the company.937 6. In the event of non-performance of those transferred financial assets within certain measurement criteria noted in the transfer agreement.000 shares of common stock and 1. 2008.629. the par value of capital stock differs from paid-in capital as the retirement of capital stock was recorded as a deduction from retained earnings.060.000 shares of non-voting preferred stock had been retired over three trenches. the preferred stock shares which are non-cumulative and non-voting.notes to the ConsolIdAted fInAnCIAl stAtements ContInued In addition.805. SemeS and two other domestic subsidiaries have credit purchase facility agreements of up to ￦117.661.358 21. as of December 31. Sec is authorized to issue 500 million shares of capital stock with a par value of ￦5. respectively. and S-lcD and two other domestic subsidiaries have general term loan facilities of up to ￦170. convertible debentures and debentures with warrants with face values up to ￦4.337 shares of common stock and 22. 2008. as of December 31. and accordingly has been derecognized from the financial statements. Sec is authorized.459.872 6. total financial assets transferred amounted to ￦1.418 million (2007: ￦4. the convertible debentures amounting to ￦3. In addition.310.258. Samsung card transferred certain eligible financial assets in accordance with the act on asset Backed Securitization of the republic of Korea to several financial institutions (“fIs”).140 3.919. Sec has issued global depositary receipts (“gDr”) to overseas capital markets.402.
174 1.419.261 ￦ 735.789 2007 ￦ 450.864.549 5.439 43.065.816. diVidendS Sec declared cash dividends to shareholders of common stock and preferred stock as interim dividends for the six-month periods ended June 30.555.853.968. with the ratification of the shareholders.512.734 shares 100% 101% ￦ 635.85 21.749 3.714.098. Details of interim dividends and year-end dividends are as follows: (A) Interim dividends 2008 number of shares eligible for dividends Dividend rate Dividend amount common stock Preferred stock common stock Preferred stock 126.982 26. an amount equal to a minimum of 10% of annual cash dividends declared.734 shares 150% 151% ￦ 948.815 8. but may be transferred to capital stock through a resolution of the Board of Directors or used to reduce accumulated deficit.099 . the reserve is not available for the payment of cash dividends.734 shares 10% ￦ 63.550.982 22. 2008 and 2007.484 9. reTained earningS retained earnings as of December 31.905 49.571 ￦ 450. 2008 and 2007.035. and as year-end dividends for the years ended December 31.610 shares 19.411 (In millions of Korean won and number of shares) 2007 126.908 shares 19.458 167. consist of the following: (In millions of Korean won) 2008 Appropriated legal reserve: earned surplus reserve 1 discretionary reserve: reserve for improvement of financial structure reserve for business rationalization reserve for overseas market development reserve for overseas investment losses reserve for research and human resource development reserve for export losses reserve for loss on disposal of treasury stock reserve for capital expenditure unappropriated Total 204. 22.896 ￦ 1.351.000 8.750 164. until the reserve equals 50% of its issued capital stock.734 shares 10% ￦ 63.936.101 510.036 (B) Year-end dividends (In millions of Korean won and number of shares) number of shares eligible for dividends Dividend rate Dividend amount common stock Preferred stock common stock Preferred stock common stock Preferred stock 2008 127.936.815 188.8.131.527 ￦ 73.441 2007 126. if any.749 2.750 164.022 ￦ 55.853.000 8. the commercial code of the republic of Korea requires the company to appropriate as a legal reserve.427.200 shares 19.101 510.076 shares 19.789 204.109 9.458 167.512.083 7.927 ￦ 73.853.853.203 149.100.091 ￦ 51. 2008 and 2007.180 100.
000 730.709.250 1.715 ￦ 272.792 56.099. 2000 total grants forfeitures and exercises prior to 2008 exercised during 2008 outstanding stock options exercise price 1 exercise period from the date of the grant 2 1.500 february 28.78% (d) dividend Yield Ratio 2008 common stock Dividend per share market price 1 2007 Preferred stock ￦ 5. the average closing price for a week before 2 trading days prior to closing date of shareholders’ list.171.561 (95.815 ￦ 197.061 12.146 2007 ￦ 1. december 20.429 common shares and 2.644 247.890 ￦ 342.680 165.852 (In millions of Korean won) 2007 ￦ 1. all options currently in issue are fully vested.800 167. 2002 121. 2008 and 2007.700 3 ~10 years 3 ~10 years 2 ~10 years 2 ~10 years 2 ~10 years 2 ~10 years 2 ~ 4 years 2 ~10 years 1.892 .200 ￦ 460.442 ￦ 288. 25. SToCK-BaSed CompenSaTion the company has a stock option plan that provides for the granting of stock purchase options to employees or directors who have contributed or are expected to contribute to the management and technological innovation of the company.524) (27.978 34.500.979. 2008.89% dividend yield ratio 1. 2008 is as follows: date of the grant march 16.800 7. the exercise price can be adjusted in the case of the issuance of new shares.000 october 15. 2004 2005 10.notes to the ConsolIdAted fInAnCIAl stAtements ContInued (C) dividend payout Ratio 2008 Dividends net income dividend payout ratio ￦ 808. a summary of the terms and the number of outstanding stock options as of December 31.681 104.796 176.000 10.050 ￦ 5.300 2.700 1.068 524.135 5.889 925.000 march 25. 2. 2001 3. 2004 590.800 53. 2002 988. or stock mergers.904 14.000 march 7.500 464.700 1.087 (507.016 15.100 457.963) (2.000 march 9.693 preferred shares as treasury stocks.833.550 common stock ￦ 8.525.18% 278.99% 566.425.000 Preferred stock ￦ 8.641 521.871 ￦ 580. 23. consists of the following: (In millions of Korean won) 2008 current income taxes Deferred income taxes Items charged directly to equity ￦ 1.500 10.263.64% 7.622) ￦ 687. stock splits. stock dividends.41% 426.996.198.562 425.600 1.757 ￦ 329. the company holds 20. 2003 368.000 ￦ 606.318 25.625 1.200 38. 24.671) ￦ 1. inCome TaX Income tax expense for the years ended December 31.100 april 16. TreaSury SToCK as of December 31.
520 115.709 113.833 8.858) (4.473 (1.487 2.268 ￦ 1.605) 3.840 139.692 263.673) (57.064) 754.003) ￦ 72.5% 33.402 486.443 486.219 20. are as follows: (In millions of Korean won) Temporary differences Beginning Balance Special reserves appropriated for tax purposes equity-method investments and others Depreciation capitalized interest expense accrued income allowance (technical expense.709.894) ￦ 1.707) 310.120 (2.548) (501.507) ￦ 603.280) ￦ 104.513 154. others) Deferred foreign exchange gains foreign currency translation Impairment losses on investments others deferred income Tax asset (liabilities) Beginning Balance increase (decrease) ending Balance current non-current increase (decrease) ending Balance deferred tax arising from temporary differences ￦ (1.718) (209.541 (87.444) (355.416 ￦ 101.124 1.534) (58.995 (54.779 5.115 ￦ 306.9% 2.920) 101.903 1.892) 841.758) ￦ 1.630 85.172) 77.890 30.102 deferred tax assets arising from the carryforwards undisposed accumulated deficit tax credit carryforwards 258.150 5.226.193) deferred tax relating to items charged to equity ￦ (3.325 ￦ (755.823 48.294) ￦ (400.282.715) (123.485. 2008 and 2007: (In millions of Korean won) 2008 Income before tax Statutory tax rate expected taxes at statutory rate tax credit changes in tax rates others.130) (70.959 508.587 .978 (1.923 (596.929 5.025.656) (508.933 113.850.988 3.252) ￦ (1.823 522.852) ￦ (2.775 2007 ￦ 9.129) ￦ (154. 2008.611 ￦ (772.157) ￦ 687.311) (34.480 1.831 178.982 3.323 ￦ (127.933 (25.577.504 ￦ 1.126.084.242) (49.240.562.107.051.615.394 ￦ 2.873 32.258 28.270 ￦ (1.827) (369.097.222.892 17.498) (9.271) ￦ (141.816 ￦ (621.691 (13.253 595.463) (44. net actual taxes effective tax rate ￦ 6.064) 846.544 (682.485) (13.773 (531.464 931.053 7.453.151 ￦ (296.561 10.8% Deferred income tax assets and liabilities from tax effect of temporary differences including available tax credit carryforwards and undisposed accumulated deficit as of December 31.393) ￦ (5.561 ￦ (8.577) 691.219 ￦ 142.588) ￦ 1.632.808 734.852) ￦ 2.124.028 (981.415) 68.177.326.951 933.224 473.193.430.372) ￦ 791.685) (54.132.342.578 ￦ 3.87 the following table reconciles the expected amount of income tax expense based on statutory rates to the actual amount of taxes recorded by the company for the years ended December 31.039 7.833 516.501) ￦ (1.027) (223.564) ￦ 173.685) 91.503) (9.838 (5.071 15.424 (679.680 115.718) (596.455.130) (54.150 1.713) 2.1% 3.958 1.115.161.
157) 653.353.941 ￦ (126.807.083) (13.242) (49. taxable temporary differences land revaluation1 equity-method investments and others 2 others ￦ 588. It is uncertain that the temporary differences arising from the revaluation of the land are realizable as it is uncertain that the land will be disposed in the foreseeable future.190 (735.117) ￦ (399.786) (223.251) ￦ (127.827) (369.330) ￦ 1. whose deferred tax effects were not recognized due to the uncertainty regarding ultimate realizability such assets.028) (34.817) (126.337) 496.060 ￦ 60.538) (1.049.485.283.718) (209.122 ￦ (196.414) 2.947) ￦ (2.924.003) 20.275) the company periodically assesses its ability to recover deferred income tax assets.756 413.116 89.notes to the ConsolIdAted fInAnCIAl stAtements ContInued Deferred income tax assets and liabilities from tax effect of temporary differences including available tax credit carryforwards and undisposed accumulated deficit as of December 31.713) 2.547) ￦ 988. such as proceeds from the disposal of.840 139.569 472 425 169. In the event of a significant uncertainty regarding the company’s ultimate ability to recover such assets.278.959 508.155) 648.659 deferred tax assets arising from the carryforwards undisposed accumulated deficit tax credit carryforwards ￦ 3.219 (755. 2007.042.701 128.485) (13.307 ￦ (1.351) (201) 2.502 726. the company does not expect cash inflows.501) ￦ 334.223 ￦ (1. Deductible temporary differences equity-method investments and others 2 undisposed accumulated deficit tax credit carryforwards others Ⅱ.323 791. others) Deferred foreign exchange gains Impairment losses on investments others deferred income Tax asset (liabilities) Beginning Balance increase (decrease) ending Balance current non-current increase (decrease) ending Balance deferred tax arising from temporary differences ￦ (2.199.308 (398.575 77.948) 4.758) ￦ (246. as of December 31.533.916) 66.597 24.580 37.068 13.929 (1.227 50.226.627. a valuation allowance is recorded to reduce the assets to its estimated realizable value.051. .866) (61.188 1. are as follows: (In millions of Korean won) 2008 Ⅰ.967) ￦ 3.783 2007 ￦ 422.715) (123.903) ￦ (355.506 149.032 ￦ 1.784) ￦ 161.240.470.611 ￦ 246.368 139.235.966 161.554) ￦ (3.268 ￦ (101.048 (112.356. temporary differences.341.097. were as follows: (In millions of Korean won) Temporary differences Beginning Balance Special reserves appropriated for tax purposes equity-method investments and others Depreciation capitalized interest expense accrued income allowance (technical expense.886) deferred tax relating to items charged to equity ￦ (1.923) (256.290 (753.667) ￦ (363.233 3.792) 132.601 (666) (9.066 1.644 (508.166) ￦ 237.924.112 532.280) ￦ (36.196) (344) 1.489 254.978 (395. 2008 and 2007.755 (4.219 20.562.850) ￦ 587.715) (125.115.153) (23.490) (865.150 5.581 5.577) 691.455.673) (57.622 (3.383 (397.359) (1.235 ￦ 1.985) (2.150 1.692 (8.700.399) ￦ (2.673) (422) 42.598 (57.549 6.263 306.507) 1.744 (508.543 21.613) (2.504 ￦ (400.541 258.090 787.193 3.286 ￦ (1. or receipts of dividends from earnings arising from certain subsidiaries and equity method investments within the foreseeable future.564) ￦ (561.465 305.456) 286. 2.
130 number of shares 1.168.265.607) 6.580. is calculated as follows: (In millions. 2008 and 2007.340 6.909 the number of dilutive shares of outstanding stock options is calculated by applying the treasury stock method.904 2007 ￦ 7.702 ￦ 37. income tax expense gain on sale of treasury stock and others ￦ (682.172) ￦ (2.160 4. deferred income tax assets and liabilities gain (loss) on valuation of available-for-sale securities and others Ⅱ.265.267 ￦ 49.494.684 (159. is included in the denominator in calculating diluted earnings per share.572 ￦ 37. except per share amounts) 2008 net income available for common stock adjustment: compensation expense for stock options net income available for common stock and common equivalent shares weighted-average number of shares of common stock and common shares equivalent 1 diluted earnings per share (in Korean won) 1.075.924 2008 Stock options 2007 Stock options number of shares 1.160 126.987 126. .963.556) 4.265.795.525. the incremental number of shares which is the difference between the number of shares assumed to be issued and the number of shares assumed to be purchased.003) ￦ (27. under the treasury stock method. are as follows: (In millions of Korean won) 2008 Ⅰ. is calculated as follows: (In millions. common shares equivalent 2007 ￦ 6.622) 2007 ￦ (755.778.778.671) 26.420. except per share amounts) 2008 net income as reported on the statements of income adjustments: Dividends for preferred stock undeclared participating preferred stock dividend excess payment for preferred shares over carrying value net income available for common stock weighted-average number of common shares outstanding Basic earnings per share (in Korean won) ￦ 5.176 ￦ 48. 2008 and 2007.494.579 (110.987 128.823) (825.188) (637. 2008 and 2007. earningS per Share Basic earnings per share were computed using the weighted average number of shares of common stock outstanding during the period. Basic earnings per share for the years ended December 31.160 127. Diluted earnings per share include the additional dilutive effect of the company’s potentially dilutive securities including stock options.502 Diluted earnings per share for the years ended December 31.909 weight 366/366 weight 365/365 common stock equivalent 1.162) (169. the proceeds from the exercise of the stock options are assumed to be used to purchase common stock at the average market price.89 Deferred income tax assets and liabilities and income tax expense charged directly to equity as of and for the years ended December 31.778.168.987 ￦ 4.130 common stock equivalent 1.
687) (28.599 million) changes in share of equity-method investees’ accumulated other comprehensive loss.735.128 (46. 2015 quantity 524.541.802 million (2007: ￦2.538 5.214 2007 ￦ 7.889.799) 5. 2007 ~ December 20. net of tax of ￦13.856 778.595 941.871 shares 10. net of related income taxes of ￦371.633 35. 2008 and 2007.261 ￦ 7.981 (660.424) 2.870 525.890.059 million (2007: ￦13.notes to the ConsolIdAted fInAnCIAl stAtements ContInued Potential common stock shares that could potentially dilute basic earnings per share in the future.541. 2014 December 21.202 million) consolidated comprehensive income attributable to: controlling interests minority interests ￦ 5.737 (5. 2008. but were not included in the calculation of diluted earnings per share for the year ended December 31.679 ￦ 8.889. 2006 ~ april 16.828 million) gain (loss) on valuation of derivative instruments.856 ￦ 7.922.300 ￦ 606. ConSolidaTed ComprehenSiVe inCome consolidated comprehensive income for the years ended December 31.313) ￦ 7.349 million (2007: ￦60. consist of: (In millions of Korean won) 2008 net income changes in accumulated gain on valuation of available-for-sale securities. because they are anti-dilutive.458. net of related income taxes of ￦729 million (2007: ￦459 million) foreign currency translation adjustment. are as follows: exercise Period Stock options Stock options april 17. net of tax of ￦324.763. net of related income taxes of ￦12.648 248 109.761 ￦ 9.144 431. net of related income taxes of ￦30 million (2007: ￦211 million) changes in share of equity-method investees’ accumulated other comprehensive income.700 27.759 million (2007: ￦338.535 ￦ 9.679 .000 shares exercise Price (Per share) ￦ 580.645 million) changes in accumulated loss on valuation of available-for-sale securities.
Include the sale of subsidiaries’ receivables to third party financial institutions as of December 31.476 43.056.458 16.121 561. .213 999.750 490.141 61.251.643 361.175 1.210 1 Payables 2008 ￦ 48.881 10.111 785.204 ￦ 5.604.272.339 24.078 196 67.401.646 55.556.122.062 1.741 99.683 31.710 305.915 14.473 14.155 16. are as follows: (In millions of Korean won) subsidiaries SJc SlcD Sta Set SSI SaPl SehK Sea SSeg Seo SeuK Sef SSel SII SeI SelS tStc SeSc others sales 2008 ￦ 4.442 568.299 25.180 240.026 5.432.051 46.770 72.602.341 ￦ 5.602 681.950 1.428 33.345 67.818 3.131 192.001 1.401 ￦ 15.773 547.878.816.459 ￦ 3.106 38.437 212.495.969 210.375.309 561.949 19.900 618.566 737.039.652 1.811.786 1.055.395 182. 2008 and 2007.689.936.209 292.795 10.545 5.311.610 5.189 33.793 1.980 5.130 68.351 1.613 1. for the years ended December 31.405 Purchases 2007 2008 ￦ 2.825 259.923 2.626 2.684.588.275.555 5.307 12.400 8.165 2.483 55.142 166.466 3.257 2.185 2.928 58.261 291.947 578.438 11.811 15. and the related receivables and payables as of December 31.183 48.544 537.506.060 30.536 943.800 9.545.168 ￦ 26.378 14.042 6.718 462.968 4.673.305 926.900.090.123 6.973.086 24.070 270.235 1.879 56.780 24.672 2007 ￦ 266.956 160.466 1.898 697.224 81. 2008 and 2007.339.793 295.179 418.554 100.982 ￦ 49.259 ￦ 2.149.749 566.510.880 4.679 529.137.322 128.334 2.228 8 320 26.735 5.416.144 128.578 478.586.998 ￦ 59.209 1.393 1.833 7.957 389.285.204 574 1.232 97.315.808. inTer-Company TranSaCTionS (a) Significant transactions between Sec and its consolidated subsidiaries.178 26.112 1.179 5.078 68.347.958 43.597 1.295.855 21.280 749.507 131.846.250 receivables 2007 2008 ￦ 93.249 868.163 163.687.342 1.977.456 ￦ 1.067 2007 ￦ 164.878 1.712 13.91 28.683.603 ￦ 1. which have been eliminated during consolidation.077.628 123.577 2.042. 2008 and 2007.794 163.413 100.879.930 329.175.872 683.260 136.480.717 63.522 1.666.220 1.087 46.573 32.588 6.867 1.134 2.351 861.
notes to the ConsolIdAted fInAnCIAl stAtements
(B) Significant transactions among subsidiaries for the years ended December 31, 2008 and 2007, and the related receivables as of December 31, 2008 and 2007, are as follows: seller SeSK SII Seh tStc SelS SelS SSI SSKmt SSeg Set tSeD Set SelS SelS Set others Purchaser SelS Sea SelS Sta SeuK Sef SII Sta SeSK SeSK ScIc Seh Seg SeI tSeD sales 2008
(In millions of Korean won)
5,117,141 2,656,769 57,826 1,602,037 1,427,862 2,087,497 383,475 1,437,963 1,041,481 556,563 1,073,728 1,203,847 1,131,029 721,469 31,808,159
3,180,049 1,800,663 1,216,822 1,171,582 1,147,339 1,017,949 988,373 943,860 917,890 845,589 822,217 815,416 784,213 693,862 23,811,663
8,142 162,888 66 11,523 13,414 105,602 159,960 5,536 55,270 9,902 46,878 8,986 16,983 3,417,233
106,428 157,534 22,088 16,292 13,920 70,869 75,713 81,362 113,318 63,120 92,878 32,299 9,760 74,450 2,814,220
the significant intercompany loans among subsidiaries for the year ended December 31, 2008, amount to ￦3,414,022 million (2007: ￦1,516,374 million). 29. relaTed parTy TranSaCTionS (a) Significant transactions between Sec and equity-method investees for the years ended December 31, 2008 and 2007, and the related receivables and payables as of December 31, 2008 and 2007, are as follows: equity-method investees Samsung SDI Samsung SDS Samsung electro-mechanics Samsung corning Precision glass Samsung techwin Seoul commtech others sales 2008 60,166 17,540 71,940 77,804 9,488 126,854 2007 33,563 32,109 132,233 66,099 9,868 115,354
￦ 91,363 ￦ 120,793
(In millions of Korean won)
933,386 1,172,753 1,369,370 507,263 137,616 353,786
726,661 1,126,395 865,935 448,501 127,668 252,222
8,549 2,281 22,248 24,985 4,550 29,534
12,368 2,664 12,562 22,520 5,807 37,844
243,765 62,025 126,680 88,973 42,809 86,137
158,481 64,529 47,330 31,413 32,633 43,650
￦ 455,155 ￦ 510,019 ￦ 5,043,857 ￦ 4,407,580
￦ 94,978 ￦ 103,548
(B) Significant transactions between Sec subsidiaries and equity-method investees for the years ended December 31, 2008 and 2007, and the related receivables as of December 31, 2008 and 2007, are as follows: seller Samsung SDI SJc Samsung SDI SJc SJc Samsung SDI Samsung techwin Samsung SDI Samsung SDI Samsung techwin others Purchaser SII Samsung SDI SeSK Samsung electro-mechanics Samsung techwin SDma SelS SeSc SJc Sea sales 2008
(In millions of Korean won)
230,836 212,763 141,404 87,224 82,969 81,024 79,484 78,506 64,845 3,195,064
236,834 292,685 109,669 87,960 53,971 28,824 54,019 2,728,863
52,276 3,398 13,282 15,409 4,928 2,507 28,255 544 383,856
20,248 16,142 11,925 25,980 1,434 10,480 11,852 302,826
30. reSearCh and deVelopmenT CoSTS research and development costs incurred and expensed for the years ended December 31, 2008 and 2007, consist of the following:
(In millions of Korean won)
2008 research expenses ordinary development expenses
4,380,095 ￦ 7,057,910
31. aSSeTS and liaBiliTieS denominaTed in foreign CurrenCieS as of December 31, 2008 and 2007, assets and liabilities denominated in foreign currencies are as follows:
(In millions of Korean won and foreign currencies)
foreign companies account foreign currency 2008 foreign currency amount 1,072 3,954 356 Korean won (equivalent)
domestic companies 2007 Korean won (equivalent)
2008 foreign currency amount 708 10,000 Korean won (equivalent)
2007 Korean won (equivalent)
cash and cash equivalent, and financial instruments
uSD JPy eur others uSD JPy eur others uSD JPy eur others
55,110 632,326 1,929,356 3,964,983 920,706 1,303,857 3,433,126 5,149,734 10,807,423 488,873 381,956 164,146 916,842 1,951,817
13,012 623,082 1,372,737 2,836,363 1,368,286 973,027 2,332,303 4,951,467 9,625,083 261,912 251,022 150,645 331,463 995,042
139,389 1,029,773 247,613 35,778 147,685 20,644 451,720 482,825 105,990 120,970 6,069 715,854
93,225 56,967 338 835,094 503,871 27,148 30,961 2,558 564,538 298,564 20,870 41,253 6,676 367,363
trade accounts and notes receivable
732 93,541 1,933
197 2,567 83
389 27,402 92
384 7,604 68
Total foreign currency assets
notes to the ConsolIdAted fInAnCIAl stAtements
foreign companies account foreign currency 2008 foreign currency amount 377 66,231 100 Korean won (equivalent)
domestic companies 2007 Korean won (equivalent)
2008 foreign currency amount 678 18,820 6 Korean won (equivalent)
2007 Korean won (equivalent)
uSD trade accounts and notes payable JPy eur others Short-term borrowings (including document against acceptance) uSD other current liabilities JPy eur others long-term other accounts payable uSD others
923,185 178,380 2,227,443 3,802,906
956,493 166,883 2,664,612 4,651,220
262,333 10,341 9,664 1,134,676
275,803 3,489 468 711,493
4,109,022 822 11,903 919 1,033,153 165,918 1,632,028 2,247,139 5,078,238 50 62,876 97,827 160,703
1,878,552 624,631 65,491 1,180,168 1,532,585 3,402,875 93,820 102,433 196,253 253 2,867 21,729 280
2,990,203 3,605,604 302,878 496,861 148,339 4,553,682 318,078 4,608 322,686
4,323,095 1,367,549 164,699 581,541 90,843 2,204,632 293,824 24,618 318,442
foreign currency notes and bonds (including current portions) long-term debts (including current maturities)
uSD uSD JPy others
50 512 5,560
62,875 644,090 77,500 241,091 962,681
46,910 42,943 48,533 187,246 278,722
274 250 4,957
344,808 314,375 69,101 383,476
192,331 290,842 290,842
Total foreign currency liabilities
monetary assets and liabilities of overseas subsidiaries after eliminating intercompany transactions are translated at the foreign exchange rate in effect as of the balance sheet date. foreign currency translation gains and losses for the year ended December 31, 2008, amounted to ￦447,885 million and ￦1,070,358 million, respectively.
420. telecommunications .877 4.711 1.483 645.463 5.426.998 (In millions of Korean won) consolidated statements of income by industry non-financial Business financial Business 2008 Sales cost of sales Selling. SegmenT informaTion a summary of consolidated financial data by industry as of December 31.507 ￦ 10.410 24.555.587.409 69.482. • • . • Digital media . and • others .940. 2008 and 2007.976 ￦ 24.493.175 ￦ 531.712.tv.492.791 369.367.017 1.727.318 685.860.346 1.681.220 505.409 5.366.153 45.013 ￦ 4.287 88.976 48.697.133 37.861.464.565 2008 ￦ 2.579 167. system lSI and hDD.169 ￦ 8.526.433.336.141.410 ￦ 12. software.001 71. printers and digital appliances.393 ￦ 14.296 5.310.364 45.994 1.959 ￦ 6.431 ￦ 82.817 8.473 ￦ 5.95 32.317.liquid crystal display panel.217 ￦ 28.750 42.589 the company has following major business segments: Semiconductor .094 ￦ 4. network system and computers.307 184.108.40.206.529 ￦ 35.717 ￦ 7.255.570 10.090.323 4.376.424 3.memory.926.708.448.313.819.230 68.882 616.415 ￦ 7.943 205. monitors.525. • lcD .697. and for the years then ended. general and administrative expenses operating profit non-operating income non-operating expenses Income before income tax Income tax expense net income attributable to: controlling interests minority interests ￦ 118.601 4.568 6.562.467 323.976.505 ￦ 5.financing.934.704 3.764 154.832 741.468.157.handsets.437.963 ￦ 40.247 1. are follows: (In millions of Korean won) consolidated Balance sheets by industry non-financial Business 2008 assets current assets Investments Property.785 financial Business 2008 2007 2007 7.394.276 2007 ￦ 96.468.497.345. plant and equipment Intangible assets other non-current assets Total assets liabilities current liabilities non-current liabilities Total liabilities ￦ 27.587.714 2007 ￦ 2.143.316 9.119 ￦ 31. etc.880 10.409 981.994 7.088 ￦ 297.095 3.635 5.405.658 183.570.664.425 17.100 59.904 171.035 ￦ 8.429 197.465.230 5.562 22.913 939.850 ￦ 92.803.
965.218.499.961 Total assets ￦ (37.294.228 144.319 ￦ 121.523 ￦ 2.760.433.054.631) ￦ 19.465.520.221) ￦ 22.458) ￦ 42.694.677 ￦ 2.804.559 ￦ 18.186.605.294.469.680) ￦ 34.699 ￦ 9.030 ￦ 301. operating profit of each segment is inclusive of all consolidation eliminations.190.183 ￦ 32.107.364 (20. operating profit of each segment is inclusive of all consolidation eliminations.441. the presentation and classification of 2007 was revised for comparability with 2008 presentation.677 ￦ (144.759.544) ￦ 34.347.191.446 ￦ (8.230.051.278) ￦ 17.865 ￦ 94.367.517.841) consolidated ￦ 121.207.294. 2008: (In millions of Korean won) 2008 summary of Business by geographic area Korea domestic gross sales Intersegment sales net sales operating profit (5.074.246.189.568.085.438.359 ￦ (1.806) 103.887.568 ￦ 2.319 ￦ 121.687.863 ￦ 105.531 operating profit 2 Total assets 1.346.053.294.892.976.984.796) ￦ 9.824.998.115.293.443.817 ￦ 8.328 ￦ 2.973.777 europe ￦ 54.645 elimination ￦ (110.970) ￦ 38.759. 2008: (In millions of Korean won) 2008 summary of Business by segment digital media gross sales Intersegment sales net sales 1 operating profit 2 Total assets ￦ 90. operating data of entities classified according to geographic area as of and for the year ended December 31.150 (19.381 (16.954.629 ￦ 17.927. 2.112.440 ￦ 7.161.062.353.841) ￦ 105.098.375.230) ￦ 15.300.863 ￦ 21.507.707. 2.594) ￦ 8.319 ￦ 6.035.816 (20.031.427) ￦ 21.221 (30.013.872.094.notes to the ConsolIdAted fInAnCIAl stAtements ContInued operating data according to business segment as of and for the year ended December 31.936) ￦ 25.580 (19.084) 135.649) ￦ 22.802.664 ￦ 404.246 ￦ 25.648.473 ￦ 4.407.047 ￦ 22.007) ￦￦ (25.507.448 (19.286 ￦ 93.581 others ￦ 20.226 (48.251.674.239 ￦ 35.036) ￦ 26.989 ￦ 23.416.013) ￦ 18.462.799 ￦ (6.183 ￦ 16.585 ￦ 315.976.205 ￦ 1.676.084 ￦￦ 324.136 ￦ 66.599.638) ￦￦ (37.759.995 (21.808 elimination ￦ (144. 2007: (In millions of Korean won) 2007 summary of Business by segment digital media gross sales Intersegment sales net sales 1 Telecommunications ￦ 47. net sales include intersegment sales of Sec and foreign subsidiaries.248 Telecommunications ￦ 64.679 lcd ￦ 32.650 .073 ￦ 69.380.379) ￦ 7. operating data according to business segment as of and for the year ended December 31.843 export (60.661 (10.457) ￦ 30.827 ￦ 13.840.165 others ￦ 26.500.429 ￦ 26.750.728 ￦ 46.835 semiconductor ￦ 41.174 ￦ 24.319 ￦ 6.398.168 china elimination consolidated ￦ 121.331.242.907.801 (15.591) consolidated ￦ 98.907.134 americas ￦ 45.765.501 ￦ 2.646 (12.922.267 ￦ 523.935.650 1.768 ￦ 396.136 ￦ 261.084) (27.536.435 lcd ￦ 42.291 semiconductor ￦ 41.031.662 (35.357 asia ￦ 29.512 ￦ 90.836. net sales include intersegment sales of Sec and foreign subsidiaries.817 ￦ 98.300.083.
111 6.702 956.387 109.706 Total assets the presentation and classification of 2007 was revised for comparability with 2008 presentation.083. 2008.111 ￦ 57.461 ￦ 206.414. plant and equipment accounts current maturities of other long-term liabilities current maturities of long-term advances received current maturities of long-term accrued expenses ￦ 502. TranSaCTion noT affeCTing CaSh floWS Significant transactions not affecting cash flows for the years ended December 31.136 ￦ 18.243 2007 ￦ 483.817 ￦ 8.458.906 ￦ (110.819.914 168.551 ￦ 10.774 china elimination consolidated ￦ 98.507.806) (20.449. 33.239 europe ￦ 41.887 (7. one of Sec domestic subsidiary issued unguaranteed bonds amounting to ￦310.465 10.549 ￦ 10. Samsung card.812 71.817 ￦ 98.139 14.591) ￦ 6.834.593.751.788.298 1.076.026 ￦ 329. 2007: (In millions of Korean won) 2007 summary of Business by geographic area Korea domestic gross sales Intersegment sales net sales operating profit (4.350) ￦ 19.383 433.650 1.656 3.173.806 ￦￦ 252.507. are as follows: (In millions of Korean won) 2008 write-off of accounts receivables and others Increase (decrease) in gain on valuation of available-for-sale securities Increase in loss on valuation of available-for-sale securities Decrease in gain on valuation of available-for-sale securities due to disposal Decrease in loss on valuation of available-for-sale.904 export (50.184.657.865 ￦ 35.916 asia ￦ 23.965.870 168.220) ￦ 15.703.490 ￦ 84.374 171.841 656. .568.092 110.375.686 ￦ 723.686 ￦ 7.943 34.677) ￦ 26.798. 2008 and 2007.668.014.089.367.983 143 7.366 ￦ 641.286 ￦ 93.374 americas ￦ 31. SuBSequenT eVenT Subsequent to December 31.268 72.108.043 (14.740.97 operating data of entities classified according to geographic area as of and for the year ended December 31.877.685 ￦ 5.650 270.491) ￦ 6.207) ￦ 14.325 ￦ (25.951.083.928.securities due to disposal Increase in share of equity-method investees’ accumulated other comprehensive income Decrease in share of equity-method investees’ accumulated other comprehensive loss current maturities of long-term prepaid expenses current maturities of long-term debts reclassification of construction-in-progress and machinery-in-transit to other property.297.633 35.962.000 million(bond issue number 1811 through 1820) as of the date of this report.973.520 11.439 303.703 28.811 (12.995 304.309 217.861) ￦ 15.
570 common shares.337 common and 22. and future events. our preferred gDrs are also traded on the luxemburg Stock exchange under the symbol SamDr. for more information about our gDrs. we have also issued global depository receipts. hangangno 2-ga.550.500 and a preferred share dividend of Krw 5. accordingly. In no event will we or any of our subsidiaries. we currently have a total of 17.samsung. all shares have a par value of Krw 5. expectations. or similar damages. we declared a common share dividend of Krw 5.000.samsung. or by e-mail at citibank@shareholders-online. In light of slowing revenues and growing uncertainty brought on by the global economic downturn. If you have additional inquiries.InvestoR InfoRmAtIon shares our shares are traded on the Korea exchange under the symbol 005930 for common stock and 005935 for preferred stock. 21st floor 191. uncertainties. dividends In 2008. yongsan-gu. indePendenT audiTors Samil Pricewaterhousecoopers Kukje center Building. or employees be liable before any third party. addiTional informaTion we invite you to visit www.833.com/ir has all the latest investor news and information.com for the latest Samsung product information and news. we made the decision to suspend our ongoing share repurchase program. the total dividend payout was Krw 808.299. objectives. our investor relations site at www. representing 8. special. please contact citibank Shareholder Services in the uS at 877-248-4237 (inside the uS). please contact us via the online form at our site. 1-781-575-4555 (outside the uS). estimates. affiliates. and intentions we express in this annual report. 2008. .9 billion. officers. representing a dividend payout ratio of 14. invesTing in samsung Investors residing outside of Korea have the option of investing in us through any Korean securities firm or by purchasing global depository receipts on major international markets. for any investment or business decision made or action taken based on information and statements contained in this annual report or for any consequential. including investors.661. for the convenience of international investors. we repurchased no shares during the year. we had a total of 147. agents.140 gDrs outstanding. respectively.64%. businesses. Please understand that these statements are subject to a number of risks.323. Korea 82-2-709-0800 invesTmenT disclaimer this report may contain certain forward-looking statements that reflect our current views and expectations with respect to our performance.427 preferred shares issued and outstanding. Seoul 140-702.com. any of which could cause actual results to materially differ from the plans. directors. our common and preferred gDrs are traded on the london Stock exchange under the symbols SmSn lI and SmSD. and assumptions. as of December 31.
Suwon gyeonggi-do tel: 82-31-200-1114 fax: 82-31-200-1530 gumi 1st Plant 259. Suzhou tel: 86-512-6253-0188 . 2 Dong huan nan lu. ltd. uK southeast asia Samsung electronics Southeast asia & oceania headquarters 3 church Street. avenida das nacoes unidas 12901. 8° andar. hainan tel: 86-0898-6683-2001 Samsung electronics Suzhou computer (SeSc). Seocho 2-dong Seocho-gu. torre oeste Brooklin novo. 1320-10. cheonan chungcheongnam-do tel: 82-41-529-7114 fax: 82-41-529-6049 gwangju Plant 217. Surrey. Brasil europe Samsung electronics europe headquarters Samsung house.samsung. 1000 hillswood Drive chertsey. Buksu-ri Baebang-myeon. concord tower 19f al Soufouh rd. cIS & Baltics headquarters floor 5. Samsung electronics Bldg. B. gumi gyeongsangbuk-do tel: 82-54-460-2114 fax: 82-54-460-2111 gumi 2nd Plant 94-1. myeongam-ri tangjeong-myeon. gongdan-dong. IfcI tower 61 nehru Place new Delhi 100-019. maetan-3-dong. oseon-dong gwangsan-gu. 103009. #26-01 Samsung hub Singapore 049483 china Samsung electronics china headquarters 23/f china merchants tower no. yeongtong-gu. (SeSl). chao yang District Beijing. russia middle east and africa Samsung electronics middle east & africa headquarters Po Box 500047. uae southwest asia Samsung electronics Southwest asia headquarters 7th & 8th floor.com cis Samsung electronics co. asan chungcheongnam-do tel: 82-41-535-1114 fax: 82-41-535-1117 cheonan Plant 510. Korea tel: 82-2-2255-0114 fax: 82-2-2255-0117 www. ltd. uSa latin america Samsung electronics latin america headquarters Samsung electronica da amazonia ltda. gumi gyeongsangbuk-do tel: 82-54-479-5114 fax: 82-54-479-5058 giheung complex San-24. nongseo-dong giheung-gu. ceP 04578-000 Sao Paulo. asan chungcheongnam-do tel: 82-41-540-7114 fax: 82-41-540-7049 Tangjeong Plant 200. gyeonggi-do tel: 82-31-209-7114 fax: 82-31-208-6798 onyang Plant San-74. moscow. Banweol-dong hwaseong. gnezdnikovsky Pereulok 1 Stroenie 2. ltd. Dubai media city Dubai. SP. Kt16 0PS. ridgefield Park nJ 07660. huizhou tel: 86-752-316-6777 Samsung electronics hainan fiberoptics (Sehf).99 gloBAl netwoRk headquarTerS gloBal headquarTers samsung electronics co. Seoul 137-857. India hwaseong Plant San-16.. yongin gyeonggi-do tel: 82-31-209-7114 fax: 82-31-209-7049 asia Pacific china Samsung electronics huizhou company (SehZ). gwangju tel: 82-62-950-6114 fax: 82-62-950-6019 regional headquarTers north america Samsung electronics north america headquarters 105 challenger road. Imsu-dong... Suzhou tel: 86-512-6253-8988 (6688) Samsung electronics Suzhou lcD co. china 100022 ProducTion neTworK Korea suwon complex 416.. Seongseong-dong.
ho chi minh city tel: 84-8-896-5500 Samsung electronics vietnam (Sev).r. (SeDa-P(m)). noida tel: 91-120-256-8251 Samsung telecommunications India Private ltd. guangzhou tel: 86-20-8888-8199 euroPe hungary Samsung electronics hungarian of Production co.a. (SDma). Klang tel: 60-3-3176-2050 Philippines Samsung electronics Philippines manufacturing corp. Bhd. Bac ninh city tel: 84-241-856-000 norTh & souTh america Brazil Samsung electronica Da amazonia ltda... Zhongshan tel: 86-760-830-4848(219) Samsung electronics Shandong Digital Printing co. ltd. Sydney tel: 61-2-9763-9700 china Samsung electronis Beijing Sales co. galanta tel: 421-31-7882-111 .t. (SSDP).. ltd. (SameX). (SegZ). manaus tel: 55-92-4009-1010 Samsung eletronica Da amazonia ltda (SeDa-P(c)). weihai tel: 86-631-562-6868 Shenzhen Samsung Kejian mobile telecommunication technology co. (tSe-P). ltd. (SSec). (SeBJ). chengdu tel: 86-28-8665-8855 Samsung electronics guangzhou Sales co. (StI). ltd. Beijing tel: 86-10-6522-1855 Samsung electronics chengdu (SecD). campinas tel: 55-19-4501-2001 mexico Samsung electronics mexico (Sem-P). Jaszfenyszaru tel: 36-57-522-214 slovakia Samsung electronics Slovakia. (Sema)... (SavIna). llc (SaS).. ltd.v. ltd. tianjin tel: 86-22-2396-1234 china Printed Board assembly (tSeD). queretaro tel: 52-442-296-9003 Samsung mexicana S.o. S. (SeSK). (SePhIl). Bangkok tel: 66-38-320-555 vietnam Samsung vina electronics co. cikarang tel: 62-21-8983-7130 malaysia Samsung electronics Display (m) Sdn. Shenzhen tel: 86-755-2699-0888 Suzhou Samsung electronics co. haryana tel: 91-124-436-8000 indonesia P.Samsung electronics Suzhou Semiconductor co. ltd. (SeSS).. Seremban tel: 60-6-678-7914 Samsung electronics malaysia Sdn.. ltd. laguna calamba tel: 63-49-545-1144 Thailand thai Samsung electronics of Production co. (SSKmt). tianjin tel: 86-22-8396-9600 tianjin tongguang Samsung electronics company (ttSec). ltd. Bhd. Samsung electronics Indonesia of Production (SeIn-P). Suzhou tel: 86-512-6258-1234 india Samsung India electronics of Production ltd. de c. tijuana tel: 1-619-671-1669 united states Samsung austin Semiconductor.. (Seh-P). tianjin tel: 86-22-2396-1234 tianjin Samsung telecommunication (tStc). austin tel: 1-512-672-1000 sales neTworK asia Pacific australia Samsung electronics australia Pty ltd. (Seau). Suzhou tel: 86-512-6761-1121 tianjin Samsung electronics company (tSec). tianjin tel: 86-22-2532-1234 tianjin Samsung electronics Display (tSeD). (SIel-P).
ltd. co..a. Samsung electronics Indonesia (SeIn-S).K. Shanghai tel: 86-21-5258-2211 Samsung electronics Shenyang (SeSy). warsaw tel: 48-22-607-4405 Portugal Samsung electronica Portuguesa S. (Bucharest Branch) voluntari tel: 40-31-620-8155 italy Samsung electronics Italia Spa (SeI). S. athens tel: 30-210-689-6235 hungary Samsung electronics hungarian Private co. ltd. (SeP). Shenyang tel: 86-24-2281-3838 hong Kong Samsung electronics h..t. moscow tel: 7-095-797-2344 ukraine Samsung electronics ukraine company (Seuc).101 Samsung electronics Shanghai Sales co. (SeSa).. (She-S). athens Branch. haryana tel: 91-124-436-8000 indonesia P. ltd. Delft tel: 31-15-219-6100 Poland Samsung electronics Polska (SePol). Kuala lumpur tel: 60-3-2263-6600 Philippines Samsung electronics Philippines co. almaty tel: 7-3272-585-965 latvia SeB tel: 371-6750-8500 euroPe austria Samsung electronics austria gmbh (Seag). (Serc). Schwalbach tel: 49-6196-6660 Samsung Semiconductor europe gmbh (SSeg). manila tel: 63-2-722-7777 singapore Samsung asia Pte. madrid tel: 34-91-714-3700 cis & BalTics russia Samsung electronics russia ltd.v. (SehK-Set).. Bangkok tel: 66-2-695-9000 vietnam Samsung vina electronics co.. ltd.. Porto Salvo tel: 351-21-425-1000 spain Samsung electronics Iberia. milan tel: 39-02-921-41800 netherlands Samsung electronics Benelux B. (tSe-S). Budapest tel: 36-1-453-1180 rumania Samsung electronics co. Paris tel: 33-1-4921-7000 germany Samsung electronics gmbh (Seg). ltd.a. (SIel-S).. (SavIna). Jakarta tel: 62-21-5299-1777 Japan Samsung Japan corporation (SJc). ltd. (SaPl) tel: 65-6833-3106 Taiwan Samsung electronics taiwan co. (SeBn). ltd. Shanghai tel: 86-21-5464-4777 Shanghai Samsung Semiconductor (SSS). tokyo tel: 81-3-6234-2111 malaysia Samsung malaysia electronics (Sme-Set) Sdn.. taipei tel: 886-2-6603-5168 Thailand thai Samsung electronics co. vienna tel: 43-1-516-15 Samsung electronics (vienna Branch) vienna tel: 43-1-516-15 .. ltd. ltd. (StI). hong Kong tel: 852-2862-6300(6900) india Samsung India electronics ltd. Bhd. ho chi minh city tel: 84-8-896-5500 france Samsung electronics france (Sef). (SeSh). ltd. (Set-Set). (SePco). noida tel: 91-11-5151-1234 Samsung telecommunications India Private ltd. eschborn tel: 49-6196-66-3300 greece Samsung electronics co. Kiev tel: 380-44-390-5333 uzbekistan Samsung electronics co. tashkent office tel: 82-2-751-6079 Kazakhstan Samsung electronics KZ llP (SeKZ)..
(Sea). casablanca Branch tel: 212-22-335-383 algeria Samsung electronics co. tunis Branch tel: 216-1-860-275/234 Kenya Samsung electronics co. (SeaSa). (Sela). Istanbul tel: 90-212-288-5638 iran Samsung electronics co. ltd.. (Seca). S. ltd. (Sela-miami). (SSel). ltd.... Bogota tel: 57-1-487-0707 Panama Samsung electronics latino america S. chertsey tel: 44-193-245-5000 Samsung Semiconductor europe ltd. weybridge tel: 44-193-282-3500 morocco Samsung electronics co. (Samcol). lagos Branch tel: 234-1-461-7611 Samsung Semiconductor. ltd. ltd.a. ltd.. ltd.a. mexico city tel: 52-55-5747-5100 united states Samsung electronics america. miami tel: 1-305-594-1090 . lahore Branch tel: 92-21-279-0281 nigeria Samsung electronics co. Panama city tel: 507-210-1122 Peru Samsung electronics co. (SeuK).a. San Jose tel: 1-408-544-4000 Samsung telecommunications america (Sta).. Santiago office (Sech) tel: 56-2-485-8500 colombia Samsung electronics colombia S. (SSa). algiers Branch tel: 213-21-59-1029~30 Tunisia Samsung electronics co. ltd. Buenos aires tel: 54-11-4109-4000 Brazil Samsung electronica da amazonia ltda. ltd. lima Branch tel: 51-1-221-4134 middle easT & africa united arab emirates Samsung gulf electronics co. ridgefield Park tel: 1-201-229-4000 Samsung electronics latino america miami Inc. ltd. upplands väsby tel: 46-8-555-05700 united Kingdom Samsung electronics u. Johannesburg tel: 27-11-463-5678 Turkey Samsung electronics turkey ltd. Dallas tel: 1-972-761-7000 laTin america argentina Samsung electronics argentina. amman Branch tel: 962-6-551-0071~2 norTh america canada Samsung electronics canada Inc....sweden Samsung electronics nordic aB (Sena)... (SetK). (Sge). ltd. ltd. (SeDa-S).K. ltd. Jeddah l/Branch tel: 966-2-665-0940 Jordan Samsung electronics co. toronto tel: 1-905-542-3535 mexico Samsung electronics mexico Sales (Sem-S). Dubai tel: 971-4-364-8600 south africa Samsung electronics South africa (Pty) ltd. Inc. tel-aviv Branch tel: 972-77-902-6276/16 saudi arabia Samsung electronics co. Inc.. Sao Paulo tel: 55-11-5644-6400 chile Samsung electronics co. tehran Branch tel: 98-21-875-8551 israel Samsung electronics co. (SSI). ltd. nairobi Branch tel: 254-2-273-0434 Pakistan Samsung electronics co..
Published by samsung electronics Produced by Cheil Worldwide Designed by the third age www.com .samsung.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.