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Shareholder Return

We are committed to delivering sustainable value to our shareholders

Shareholder
return policy

Background
  • In addition to efforts to strengthen business competitiveness, the company announced a three-year(2015~2017) shareholder return program in 2015 under the principle of proactive shareholder return in the mid to long-term. In November 2016, we made enhancements to our shareholder return program, demonstrating the company’s further commitments to enhancing shareholder value.
  • In 2016 and 2017, we will use 50% of Free Cash Flow for shareholder return in the form of dividend and share repurchase/cancellation.
Dividend
  • Our aim is to consistently increase dividend on a gradual basis.
  • We will make quarterly dividend payments starting from 2017 which will provide more evenly distributed dividends to our shareholders.
Share Repurchase/Cancellation
  • We will use the remaining portion of Free Cash Flow after the dividend payouts for our share repurchase program and all repurchased shares will be cancelled. This will greatly contribute to increasing long-term per share value.
Shareholder return history for the recent 5 years

(Unit : KRW 100 M)

Shareholder Return
2012 2013 2014 2015 2016
Total Payout Common 10,467 18,721 26,045 26,772 34,981
Preferred 1,598 2,849 3,955 3,915 4,937
Total 12,066 21,570 30,000 30,687 39,919
Payout Ratio 5.2% 7.2% 13.0% 16.4% 17.8%
Amount of Shares Purchased Common - - 21,892 28,763 59,313
Preferred - - 2,567 13,765 12,080
Total - - 24,459 42,528 71,393
Total Shareholder Return 12,066 21,570 54,459 73,216 111,312
Net Income 231,854 298,212 230,825 186,946 224,157
Total Shareholder Return Ratio 5.2% 7.2% 23.6% 39.2% 49.7%

Net income : Profit attributable to owners of the parent

The amount of shares purchased in 2015 is based on the completion of 1st phase of 2015 special buyback program.
(Duration of the buyback program : October 30th, 2015 ~ January 12th, 2016)

Shareholder return details by year/2012 Year Total shareholder return 1,206,600,000,000won. Net income 231,854,000,0000won. Total payout ratio 5.2% / 2013 Year Total shareholder return 2,157,000,000,000won. Net income 298,212,000,0000won. Total payout ratio 7.2% / 2014 Year Total shareholder return 3,000,000,000,000won. Net income 230,825,000,0000won. Total payout ratio 23.6% / 2015 Year Total shareholder return 3,068,700,000,000won. Net income 186,946,000,0000won. Total payout ratio 39.2% / 2016 Year Total shareholder return 3,991,900,000,000won. Net income 224,157,000,0000won Shareholder return details by year/2012 Year Total shareholder return 1,206,600,000,000won. Net income 231,854,000,0000won. Total payout ratio 5.2% / 2013 Year Total shareholder return 2,157,000,000,000won. Net income 298,212,000,0000won. Total payout ratio 7.2% / 2014 Year Total shareholder return 3,000,000,000,000won. Net income 230,825,000,0000won. Total payout ratio 23.6% / 2015 Year Total shareholder return 3,068,700,000,000won. Net income 186,946,000,0000won. Total payout ratio 39.2% / 2016 Year Total shareholder return 3,991,900,000,000won. Net income 224,157,000,0000won

Total Shareholder Return Ratio : Total Shareholder Return/Net Income

Dividends

Second quarter Cash Dividend Resolution

Under the BOD resolution dated July 27, 2017, Samsung Electronics completed the second quarter dividend payment as follows:

2017 Second quarter Dividend Details
  • Type of dividend: Cash
  • Dividend per share:
    • - KRW 7,000 per common share
    • - KRW 7,000 per preferred share
  • Dividend yield: 0.3% for common share, 0.4% for preferred share.

    The dividend yield was calculated as follows : (Dividend per share) divided by (the average of ending prices of the stock for the week leading up to two days prior to the record date) multiplied by 100

  • Record date: June 30, 2017
  • Total payout: KRW 965 billion
  • Dividend pay date: August 16, 2017
Dividend breakdown by year/2012 Year Total payout 12,066won. payout ratio 5.2%. / 2013 Year Total payout 21,570won. payout ratio 7.2%. / 2014 Year Total payout 30,000won. payout ratio 13.0%. / 2015 Year Total payout 30,687won. payout ratio 16.4% / 2016 Year Total payout 39,919won. payout ratio 17.8% Dividend breakdown by year/2012 Year Total payout 12,066won. payout ratio 5.2%. / 2013 Year Total payout 21,570won. payout ratio 7.2%. / 2014 Year Total payout 30,000won. payout ratio 13.0%. / 2015 Year Total payout 30,687won. payout ratio 16.4% / 2016 Year Total payout 39,919won. payout ratio 17.8%
Dividend payment history for the recent 5 years

(Unit : KRW 100 M)

Dividend payment history for the recent 5 years
2012 2013 2014 2015 2016
Net income 231,854 298,212 230,825 186,946 224,157
Payout ratio 5.2% 7.2% 13.0% 16.4% 17.8%
Dividend per share
(KRW)
Common 8,000 14,300 20,000 21,000 28,500
Preferred 8,050 14,350 20,050 21,050 28,550
Total payout Common 10,467 18,721 26,045 26,772 34,981
Preferred 1,598 2,849 3,955 3,915 4,937
Total 12,066 21,570 30,000 30,687 39,919

Net income : Profit attributable to owners of the parent

Repurchase/
Cancellation

Buyback/Cancellation of treasury shares for 2017

Samsung Electronics plans to implement a share repurchase program with a total worth of 9.3 trillion won this year. This is the sum of 0.8 trillion won, the remaining amount of shareholders’ return resources from 2015, and 8.5 trillion won, the remaining portion after dividend payouts in 2016. Taking into consideration the daily trading volume and other factors, the share repurchases will be carried out over 3 to 4 phases. All repurchased shares will be cancelled. We have completed the first phase of the share repurchase program with 1.02 million common shares and 255,000 preferred shares as of April 12, 2017. And we have also completed the second phase of the share repurchase program with 0.90 million common shares and 225,000 preferred shares as of July 24, 2017. Currently, we are on the third phase of the share repurchase program with 670,000 common shares and 168,000 preferred shares.

[Number of treasury shares after the completion of the second phase of the buyback program]
  • Common Shares :
    • 8,990,843 (6.9% of outstanding shares of common stock)
  • Preferred Shares :
    • 1,614,846 (8.8% of outstanding shares of preferred stock)
Cancellation of treasury shares

Samsung Electronics has decided to cancel treasury shares as a way of enhancing shareholder value. The board of directors has resolved to cancel 50% of common and preferred shares held in treasury on April 27, 2017. We have cancelled 8,990,843 common shares and 1,614,847 preferred shares as of May 2, and the remaining shares will be cancelled by resolution of the board of directors in 2018.

Treasury stock by year/2012 Year Amount of shares purchased 0. Net income 231,854,000,0000won / 2013 Year Amount of shares purchased 0. Net income 298,212,000,0000won / 2014 Year Amount of shares purchased 2,445,900,000won. Net income 230,825,000,0000won / 2015 Year Amount of shares purchased 4,252,800,000won. Net income 186,946,000,0000won / 2016 Year Amount of shares purchased 7,139,300,000won. Net income 224,157,000,0000won Treasury stock by year/2012 Year Amount of shares purchased 0. Net income 231,854,000,0000won / 2013 Year Amount of shares purchased 0. Net income 298,212,000,0000won / 2014 Year Amount of shares purchased 2,445,900,000won. Net income 230,825,000,0000won / 2015 Year Amount of shares purchased 4,252,800,000won. Net income 186,946,000,0000won / 2016 Year Amount of shares purchased 7,139,300,000won. Net income 224,157,000,0000won
Share buyback history for the recent 5 years

(Unit : KRW 100 M, thousands shares)

Share buyback history for the recent 5 years
2012 2013 2014 2015 2016
Net Income 231,854 298,212 230,825 186,946 224,157
Amount of Shares Purchased Common - - 21,892 28,763 59,313
Preferred - - 2,567 13,765 12,080
Total - - 24,459 42,528 71,393
Number of Shares Purchased Common - - 1,650 2,230 4,390
Preferred - - 250 1,240 1,080
Number of Treasury Shares Outstanding Common 16,451 16,384 17,987 17,982 17,982
Preferred 2,980 2,980 3,230 3,230 3,230

Net income : Profit attributable to owners of the parent

The amount of shares purchased in 2015 is based on the completion of 1st phase of 2015 special buyback program.
(Duration of the buyback program : October 30th, 2015 ~ January 12th, 2016)