Samsung Electronics

September, 2001



Company Overview
Divisional Highlights
Contents
Q2 2001 Results
Company Overview
Vice Chairman & CEO (Yun, Jong Yong)
CFO (Choi, Doh Seok) CTO (Yun, Jong Yong)
Organizational Structure
Semiconductor
Lee, Yoon Woo
Memory
System LSI
TFT LCD
Info. & Comm
Lee, Ki Tae
Handsets
Network
Fiber Optics
Digital Media Sys.
Chin, Daeje
Monitor
PC / PC Peripherals
DTV / DVDP
Living Appliances
Han, Yong Oe
Microwave Oven
Refrigerator
Air Conditioner
Global Market Share
No. 1 26 %
CDMA Handsets
No. 1
No. 1
21 %
23 %
DRAM
SRAM
No. 1 21 %
TFT - LCD
Telecommunication
Semiconductor
No. 1
No. 2
15 %
19 %
Color Monitor
ODD
DVDP
No. 1 23 %
Microwave Oven
Digital Media
Home Appliances
14 %
No. 3
Leading Products (00)
Q2 2001 Results
Sales by Quarter Operating Incomes by Quarter
Revenue and Earnings
Digital Media Telecommunication
Semiconductor Home Appliances
0
2
4
6
8
10
Q3 '00 Q4 '00 Q1 '01 Q2 '01
0.0
0.5
1.0
1.5
2.0
2.5
Q3 '00 Q4 '00 Q1 '01 Q2 '01
8.8
9.1
8.6
8.0
2.2
1.5
1.6
0.6
43%
36%
35%
27%
19%
23%
22%
29%
89%
88%
64%
43%
8%
14%
14%
50%
31%
35%
34%
27%
7% 9%
17%
2%
14%
8%
9%
6%
Revenue and Earnings
Our Well-Balanced Business Portfolio is Paying-off
0
2
4
6
8
10
Q3 '00 Q4 '00 Q1 '01 Q2 '01
Sales by Quarter Operating Incomes by Quarter
0.0
0.5
1.0
1.5
2.0
2.5
Q3 '00 Q4 '00 Q1 '01 Q2 '01
1H 01 2000 1999
Net Debt / Equity 10% 9% 32%
Debt / Capitalization 16% 20% 30%
Coverage Ratio* 94x 56x 14x

ROE** 24% 41% 31%
Profitability (Net Income / Sales) 0.13 0.18 0.12
Asset Turnover (Sales / Asset) 1.23 1.33 1.15
Leverage (Asset / Equity) 1.56 1.75 2.24

* Coverage Ratio = EBITDA / Net Interest Expense. ** Annualized for 1H 01
Financial Analysis
Net Income 2.1
Depreciation 1.5
Sale of Marketable Securities 0.5
Others 0.7

Total 4.8
(Unit: Trillion, KRW)
Source of Fund Use of Fund
Capex 3.0
Increase in W/C 0.7
Debt Redemption 0.4
Dividend 0.4
Others 0.7
Total 5.2
Cash Balance
Beginning : 1.9 Net decrease : 0.4 End : 1.5
Cash Balance = Cash&Cash Equivalent + Short-term Financial Instrument
Cash Flow of 1H 2001
Revised CAPEX for 2001
0
1
2
3
4
5
6
7
8
Original 1st Revision 2nd Revision
Semiconductor
Telecommunication
Others
7.3
6.1
5.1
(Unit : Trillion, KRW)
CAPEX Plan - EBITDA vs. CAPEX
EBITDA has been always larger than CAPEX
(Unit : Trillion, KRW)
0
2
4
6
8
10
12
1997 1998 1999 2000
EBITDA
CAPEX
4.3
2.5
4.3
1.6
7.2
3.4
10.1
5.2
Divisional Highlights

- Semiconductor Division
DRAM Demand and Supply
800
900
1000
1100
1200
1300
1400
1500
1600
1700
Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02
-6%
-4%
-2%
0%
2%
4%
6%
8%
Demand
Supply
Sufficiency
rate
( Unit : Million )
( Source : Company Data )
Balance is delayed by one quarter : Q3 01 Q4 01
Expected demand drivers
-XP, Brookdale, New applications (S-T Box, 3G Handsets, Game machines)
Original Forecast
DRAM Demand and Supply
800
900
1000
1100
1200
1300
1400
1500
1600
Q1 '01 Q2 '01 Q3 '01 Q4 '01 Q1 '02
-6%
-4%
-2%
0%
2%
4%
6%
8%
Demand
Supply
Sufficiency
rate
( Unit : Million )
( Source : Company Data )
Balance is delayed by one quarter : Q3 01 Q4 01
Expected demand drivers
-XP, Brookdale, New applications (S-T Box, 3G Handsets, Game machines)
Revised Forecast
Demand and Supply
- Oversupply of 10% for 01 but expects shortage from Q3 02
Outlook for TFT-LCD Market
( Source : Company Data )
25
20
15
10
5
15%
10%
5%
0%
-5%
-10%
Q1
01
Q2
01
Q3
01
Q4
01
Q1
02
Q2
02
Q3
02
Q3
02
Q1
03
Q2
03
Q3
03
Q4
03
Flexible product mix
- Monitor portion : 17% in 2000 37% in 2001
- Niche market (Small size LTPS for HHP, PDA) : 1M in 2001
Continual cost reduction
- Number of components : 120 ~ 150 vs. SEC under 100
- Mask steps : 5 ~ 6 vs. SEC 4 ~ 5
- Mother glass size : 680 x 880 vs. SEC 730 x 920

Competitiveness
Mother Glass 730x920 680x880
Panel (Samsung) (Others)
14 9 panels 6 panels
15 6 panels 6 panels
17 6 panels 4 panels
Divisional Highlights

- Telecommunication Division
Revised Forecast
(July 01)
Previous Forecast
(March 01)
480 M units
Global Handset Market
Revised global handset shipment in 2001
- Global economy slowdown, Lack of new applications and contents,
Reduction of handset subsidies
Asia
23%
Americas
25%
Europe
38%
China
14%
410 M units
Asia
25%
Americas
24%
Europe
36%
China
16%
1H 2001
12.5million units
CDMA
53%
GSM
47%
Achievements in 1H
Outstanding sales in the midst of deteriorating market

- Sustain ASP by targeting mid to high-end segment

- Timely introduction of new models

- Domestic sales growth of cdma2000 1x handset
2001(F)
28million units
CDMA
55%
GSM
43%
Business Outlook
Expect continuous growth in 2H 01

- Increasing adoption rate of 1x handset in domestic market
- Explore new business opportunities with
new service providers

Maintain original target sales of 28M units


TDMA
2%
Recent achievements in 1H 01
- Strong presence in 1x system market
- CDMA contracts in China and Puerto Rico
2H 01 Outlook
- Domestic: 2.5G System expansion and upgrade to 1x EV-DO
- Overseas: Increasing adoption of CDMA technology
* China, Japan, Brazil, India, Israel, etc.

Current macro environment remains challenging
Wireless systems
Divisional Highlights

- Digital Media Division
Global Market Share Trends
Rank M / S
1 15%
2 12%
6 13%
5 8%
3 12%
Product 1999 2000 2001 (F)
Digital Media
Rank M / S
1 19%
2 15%
3 16%
4 9%
2 15%
Rank M / S
1 19%
2 14%
2 15%
3 9%
1 16%

Monitors
ODD
DVD Players
Color TVs
VCRs
Network
Convergence
Broadcasting STB
Home Gateway
PDA
Web PAD
New
Business
Networking Solutions
Establishing global competition
Extend P2P connectivity
PC
Server
Printer
Monitor
ODD
Computing
Home solution
based on DTV
A/V
Consumer
DTV
DVDP
CDP
VCR
DVC
MP3
Convergence Vision
THANK YOU