Samsung aims to achieve sustainable growth and maximize management effectiveness. It plans to enhance its competitive edge through investments in R&D, patents, marketing and HR. It will also pursue growth through M&A opportunities. Samsung works to strengthen its brand and utilizes its global ERP system to achieve operational excellence. While Samsung has increased profits and ROE, its stock valuation metrics like PBR and PER have declined.

1. Invest in our future
Sang-hoon Lee

2. Disclaimer
The materials in this report include forward-looking statements which can generally be identified by phrases such as
Samsung Electronics (SEC) or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or
other words or phrases of similar implications. Similarly, such statements that describe the company's business strategy,
outlook, objectives, plans, intentions or goals are also forward-looking statements. All such statements are subject to
certain risks and uncertainties that could cause actual results to differ materially from those in the presentation files
above.
For us, particular uncertainties which could adversely or positively affect our future results include:
· The behavior of financial markets including fluctuations in exchange rates, interest rates and commodity prices
· Strategic actions including dispositions and acquisitions
· Unanticipated dramatic developments in our major businesses including CE (Consumer Electronics),
IM (IT & Mobile communications), DS (Device Solutions)
· Numerous other matters at the national and international levels which could affect our future results
These uncertainties may cause our actual results to be materially different from those expressed in this report.

3. Sustainable Growth
& Profitability
Enhance Competitive Edge
Capex
R&D
Patent
Mkt.
HR
M&A
Maximize Mgmt Effectiveness
Finance
Risk
Management
Systems
(ERP/SCM)

4. Sustainable Growth
& Profitability
Enhance Competitive Edge
Capex
R&D
Patent
Mkt.
HR
M&A
Maximize Mgmt Effectiveness
Finance
Risk
Management
Systems
(ERP/SCM)

5. Continuous growth
211*
188
136
143
16%
CAGR
Billion USD
2010
* 2013(E) : Bloomberg Consensus
2011
2012
2013(E) *

6. Balanced structure
DP
Semi
Component
Others
20 %
Domestic
Device
2010
2013(E) *
* 2013(E) : Fn Guide Consensus
28 %
11%
CE
IM
America
China
18 %
EU / CIS
23 %
2013.1H

7. Strong improvement
OP margin
17 %
14
35 *
11
9
27
32%
CAGR
15
14
2010
2011
Billion USD
* 2013(E) : Bloomberg Consensus
2012
2013(E) *

8. Increase in premium product sales
have boosted profits
34
23
37
40 %
32
23
23
23 %
21
20
25 %
2012
2013.3Q
14
2010
2011

9. Improved equity ratios
50
54
49
46 %
12
14
12
8%
2010
2011
2012
2013.3Q

10. Delivered asset efficiency to
minimize working capital increase
15
33. 2
10
*
9.9 %
5
Billion USD 0
2010
2011
Working Capital Increase
* Working Capital Increase to Cash flow from Operation
2012
2013.1H

11. Sustainable Growth
& Profitability
Enhance Competitive Edge
Capex
R&D
Patent
Mkt.
HR
M&A
Maximize Mgmt Effectiveness
Finance
Risk
Management
Systems
(ERP/SCM)

12. Sustainable Growth
& Profitability
Enhance Competitive Edge
Capex
R&D
Patent
Mkt.
HR
M&A
Maximize Mgmt Effectiveness
Finance
Risk
Management
Systems
(ERP/SCM)

13. Key source of sustainable growth & competitive edge
**
50
41
EBITDA
24
19
25
20
21
22 *
Billion USD
2010
* Annual Budget
** Bloomberg Consensus
2011
2012
2013(E)

14. Manage under strict principles and guidelines
Principles
Guidelines
• Differentiate technology
and Profitability
• Execution within C/F
• Flexible planning to reduce
risk
• Payback period
• IRR

15. New focus
Technology,
New Market
Capacity,
M/S
21 %
15
2010
2011
2012
2013(E)

16. Continuous investing for growth
Overseas
2013
Domestics
Overseas
Domestics
50K
2010
8
$ B
Global R&D investment ranking #2 in 2013, Booz&Co.

17. Key strategic shifts
New focus
H/W
In-house
New directions
Comp.
• Effective use of global R&D
resources
• Soft competitive edge
S/W
Open
Innovation
Set
• New growth engine

18. Persistent increase in IP risk
Threats
Changes
patent troll
and
competitors
regulations
in major countries

19. Reinforcing IP competitive edge
IP Centers
• 600
In-house
experts
Patent
Experts
• HQ
• 3 Regional
Early
Engagement
• Product
planning stage

20. Global top 10 brand value
8 th
9 th
$19.5 B
1
No. Brand
Awareness
17 th
• Smart phone
• TV
19 th
Samsung GMO, Brand Awareness Survey
2010
* Interbrand
2011
2012
2013

21. Utilize strong brand assets
Brand ideal
• “Accelerating discoveries
and possibilities”
• Fully integrated
with all business activities
Differentiated strategy
• Experiential
• Interactive
• Localized

22. ‘People’ as one of our core values
Overseas
Domestics
2013
Domestics
190K
Overseas
2010
11B
$

23. Strategic directions for HR
Securing talent
Talent
Creative
Lab
Open
Innovation
S/W

24. 14 companies, over $1B invested
CSR
Organic
Growth
Medison
mSpot

25. Growth objectives via M&A

26. Sustainable Growth
& Profitability
Enhance Competitive Edge
Capex
R&D
Patent
Mkt.
HR
M&A
Maximize Mgmt Effectiveness
Finance
Risk
Management
Systems
(ERP/SCM)

27. Sustainable Growth
& Profitability
Enhance Competitive Edge
Capex
R&D
Patent
Mkt.
HR
M&A
Maximize Mgmt Effectiveness
Finance
Risk
Management
Systems
(ERP/SCM)

28. Real-time monitoring under rules & processes
Monitoring system
Rules & processes

29. ☞ Increase of government regulations globally
Compliance
Manual / System
Employee
Education
Compliance
Team
Monitoring

30. All employees access Real-time data managed
by One system at Any time
Non-standardized
One Global ERP
54 Countries, 115 Systems
ERP
ERP
ERP
ERP
ERP
ERP
ERP
Standardization
Process / Data
ERP
• Lack of process standardization
For different working places
• Complicated system interface
ERP

31. Operational excellence
Speed
Flexibility
• Weekly decision making
• Production flexibility (CELL)
• Global logistics Hub
* S & OP : Sales and Operation Plan
• Global S&OP *
• Customer collaboration(CPFR)
• Retail & channel SCM

33. PBR & PER declined
despite increased ROE and profits
2,000
2.4 x
Operating
profit
12.3
35
2.0 x
1,500
27
PBR
1.6 x
1.6 x
1,000
1.2 x
PER
15
’10
’11
7.0 x
14
10
0.8x
500
0 Thousand KRW
’ 09
’10
Billion USD
’11
’12
’13.9
’ 09
’12
’13(E)