January 16, 2002 in Social Responsibility News

SAMSUNG Electronics Record Third Consecutive Net Income ('00, KRW 6 Trillion, '99, KRW 3.1 Trillion)

SEOUL, Korea # Jan 16, 2002 # Today, Samsung Electronics held a performance briefing to its investors, announcing the company achieved KRW 32.3804 trillion in total sales, KRW 2.2953 trillion in operating income, and KRW 2.9469 trillion in income after taxes during 2001. Fourth Quarter performance figures were KRW 8.4828 trillion in total sales, KRW 69 billion in operating income, and KRW 402.5 billion in net income after taxes.

Sales by business sector and operating income were of special interest at the briefing. For the year, the Digital Media Division recorded KRW 9.4384 trillion in sales (29.1% of the company’s total sales revenue), the Information & Telecommunications Division achieved KRW 9.0335 trillion (27.9%), and the Semiconductor Division earned KRW 8.8836 trillion (27.4%). The Home Appliances Division made up 9.6% of the total annual sales with a KRW 3.0267 trillion performance.

Company-wide operating income in 2001 came to KRW 2.2953 trillion. This figure breaks down into KRW 292.8 billion for Digital Media, KRW 1.3741 trillion for Information & Telecommunications, KRW 698.3 billion for Semiconductors and KRW 182.9 billion for Home Appliances. Thus, each division showed significant operating income during a business downturn. Importantly, mobile phone sales for the Information &
Telecommunications Division overpass a net income of KRW I trillion, the first time ever for Samsung to reach the KRW 1 trillion net income milestone for a single product category.

In total sales and operating income decrease in 2001 compare to the previous year from KRW 34.2838 trillion to KRW 32.3804 trillion in total sales with 5.6% decrease, and from KRW 6.0145 trillion to KRW 2.9469 trillion in income after tax with an approximate KRW 3 trillion decrease.
Compared to the fourth quarter’s result to the third quarter, the sales total increased by 17.3% from KRW 7.2344 trillion in third quarter to KRW 8.4828 trillion and profit after tax made a slight decrease of KRW 22.3 billion from KRW 424.9 billion to KRW 402.6 billion. This has reflected the lowest price ever of chip price in last November.

As for fiscal soundness, Samsung Electronics proactively prepared for the external business conditions experienced in 2001 by revising investment strategies and rearranging investment resources. As a result, the debt-to-equity ratio at the end of 2001 was down to 43.4%, while shareholders’ equity to net assets was 69.7%, borrowings were KRW 2.7 trillion and return on equity stood at 17%. These figures compare with a debt-to-equity ration of 296%, shareholders’ equity to net assets of 34%, borrowings of KRW 13 trillion, and a return on equity of 2% when Korea’s financial crisis hit at the end of 1997. Thus, Samsung Electronics has greatly improved fiscal soundness during the past four years.

Most important, it is sure that Samsung is one of the top ten manufacturing company in the world with the best operation profit as well as in fiscal soundness. Even debt-to-equity ratio is lower than any top-ranking company’s average ratio and shareholder’s equity to net assets surpass the average, positioning the company with a solid financial status.

The price earnings ratio and performance results have enabled Samsung Electronics to pay out a total of KRW 338.5 billion in dividends for the year (KRW 254.2 billion at year’s end), a dividend rate of 40% that included a 10% interim dividend payment.

During 2001, Samsung Electronics significantly strengthened technological expertise, product marketability and brand power. The company’s share of the world memory chip market increased 6% year on year to reach 29% in 2001. Samsung also produced 22% of the TFT-LCDs, 7% of the HHP(CDMA No 1), 21% of the monitors, and 23% of the microwave ovens sold around the world during the year.

[About Samsung Electronics]

Samsung Electronics Co. Ltd. is a global leader in semiconductors, the consumer electronics industry, and digital convergence technology. Samsung employs approximately 64,000 people in 47 countries. The company is the world’s largest producer of memory chips, TFT-LCDs, CDMA mobile phones and monitors and the fifth-largest manufacturer of mobile phones. Samsung Electronics consists of four main business units: Digital Media, Semiconductor, Information & Communications, and Home Appliance Businesses. For more information, please visit http://www.samsungelectronics.com

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