Letter to Shareholders

Letter to
Shareholders To Our Valued Shareholders,

The year 2025 tested our resilience as we navigated numerous challenges across the internal and external landscape, including ongoing trade issues. Through it all, we delivered. Samsung achieved its highest-ever annual revenue, and the stock price rose substantially, leading our market capitalization to surpass KRW 1,000 trillion, a first for Korean companies.

We extend our deepest gratitude to our shareholders for their unwavering support and encouragement, and we are pleased to share the key highlights of 2025.

Highest-ever results despite challenging environment

Samsung Electronics grew revenue by 11% year-on-year to KRW 333.6 trillion, a new all-time high, while operating profit surged by 33% year-on-year to KRW 43.6 trillion.

The Memory business capitalized on the AI-driven industry transition, delivering a significant improvement in results as demand surged. We brought globally competitive products to market—HBM4 and GDDR7—while strengthening our technological foundation by opening a next-generation semiconductor R&D complex and investing in facilities to meet the rapidly growing AI demand. Together, these moves position us to lead the AI era.

The Foundry Business advanced its gate-all-around (GAA) process technology and refined its mature technology offerings, sharpening our competitive edge. We also expanded our customer portfolio to include AI and high-performance computing (HPC) applications and secured major customers for 2-nano processes, building a sturdy foundation for mid- to long-term growth.

The System LSI Business elevated the core competitiveness of its SoC offerings and strengthened its differentiated capabilities in image sensors, further solidifying our market leadership.

The Display Business reinforced its OLED leadership through its differentiated technologies. Beyond smartphones, we are expanding into IT, automotive electronics, and other new growth areas, steadily building a broader, more stable business portfolio. Large QD-OLED displays are also gaining ground in the premium TV and monitor market.

The Mobile Business grew revenue year-on-year by expanding flagship sales, driven by strengthened leadership in AI technologies and innovations in slimmer form factors and lightweight design. The foldable series posted strong growth, while the A series, tablets, and wearables held steady, showing solid momentum across the product lineup.

The Network Business enhanced its 5G competitiveness through software-driven communication technologies while expanding its customer base.

The TV Business launched the world’s first Micro RGB TV, redefining next-generation picture quality. In premium TVs, we led the market through continued Neo QLED and OLED innovation and expanded influence in the AI-powered screen market with more distinctive and personalized screen experiences with Vision AI, our customized AI solution unveiled last September.

The Digital Appliance Business targeted the AI-based appliance market by strengthening connected experiences and delivering hyper-personalized solutions built on robust security technologies. We also strengthened the foundation for comprehensive HVAC solutions by accelerating growth in the HVAC business, securing mid- to long-term momentum.

Harman laid the groundwork to become a global top-tier automotive solutions provider by acquiring an ADAS business and building on its industry-leading in-vehicle experience capabilities in digital cockpit and car audio. In consumer audio, Harman continues to solidify its leading position through product differentiation and a strengthened premium brand portfolio.

Samsung Electronics remained committed to the future by investing KRW 37.7 trillion in R&D in 2025, our highest ever annual total.

These efforts helped drive the Samsung Electronics brand value to USD 90.5 billion in 2025, as estimated by Interbrand, ranking us as the world’s fifth most valuable brand for the sixth consecutive year.

Enhancing value through shareholder returns

Under the current three-year shareholder return policy for 2024–2026, the annual, regular dividend for 2025 totals KRW 9.8 trillion. In addition, to meet market expectations and align with the government’s initiative to promote cash dividends to revitalize the domestic stock market and real economy, the Company will pay an additional dividend of KRW 1.3 trillion. Accordingly, the total annual dividend per share for the year 2025 amounts to KRW 1,668 for common stock and KRW 1,669 for preferred stock, including quarterly dividends already paid.

Near the end of 2024, we announced a share repurchase program worth KRW 10 trillion, and the full acquisition was completed by September 2025 through three phases. Of the shares acquired, KRW 3 trillion worth has already been cancelled. For the remainder, excluding those reserved for employee compensation, the cancellation schedule will be finalized by the Board and disclosed publicly within the first quarter of 2026. Through these actions, we remain committed to faithfully implementing the shareholder return policy.

Committed to sustainable growth

Samsung’s New Environmental Strategy has been in place for over three years, a testament to our role in shaping a more sustainable future through cutting-edge technology. Our goal is to reach carbon neutrality by 2030 for the DX Division and across all operations by 2050.

In line with this, we continue to invest in reducing direct carbon emissions, including the expansion of our in-house regenerative catalytic system (RCS), an innovative technology for treating process gases at our facilities, and we are actively exploring additional competitive renewable energy generation projects.

Furthermore, our ultra-low-power memory chips reduce the carbon footprint in the product-use stage; and our energy efficient technology is featured in flagship models across our top seven product lines. Likewise, SmartThings AI Energy mode helps customers realize even more opportunities to reduce energy consumption in their daily lives.

Amid the full-scale advancement of AI technology innovation, we have established and applied AI ethical principles centered on fairness, transparency, and accountability. Guided by these principles, we are creating human-centric devices that are safe, helpful, and accessible anytime and anywhere.

Samsung Electronics remains committed to keeping all our stakeholders, including shareholders, informed of our progress and key milestones in sustainability management.

Dear shareholders,

Looking ahead to 2026, with global trade barriers and geopolitical risks showing no signs of subsiding, we will remain proactive and move decisively to stay ahead of external shifts.

The DS Division will continually secure technological leadership in the AI semiconductor market by drawing on our unique position as the world’s only semiconductor company capable of delivering a true ‘one stop solution’—logic, memory, foundry and advanced packaging.

The DX Division will expand AI-driven product leadership and integrate AI technologies across all products, features and service ecosystems, delivering the best experience to our customers as we lead the era of AI transformation.

We ask for and look forward to your continued support as we pursue sustained growth and success.

We wish all our shareholders a successful 2026, filled with health and happiness for you and your loved ones.

Thanks