Earnings Release Q4 2014 Samsung Electronics January 2015 The financial information in this document are consolidated earnings results based on K-IFRS. This document is provided for the convenience of investors only, before the external audit on our Q4 2014 financial results is completed. The audit outcomes may cause some parts of this document to change. This document contains forward-looking statements - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as expects”, anticipates”, intends”, plans”, believes”, seeks” or will . “Forward-looking statements by their nature address matters that are, to different degrees, uncertain. 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 Secured profitability through 10nm-class migration S.LSI : Earnings improved QoQ led by increased 20nm AP and LSI product sales 15 Outlook DRAM: Expect solid server DRAM demand growth to continue; Mobile DRAM demand to increase driven by new OS and higher resolution display adoption in smartphones NAND: Expect server/PC SSD and high-density mobile storage demand to increase S.LSI: Expect earnings to improve driven by 14nm FinFET supply and sales of high value-added products (e.g. high-pixel CIS) 15 Q1 Outlook Memory: Expect strong DDR4/LPDDR4 demand and solid SSD demand to continue despite low seasonality S.LSI : Expect volume ramp of 14nm ; supply for customers new set product to begin while demand for existing applications to slow down under seasonality Q4 Results OLED:Earnings improved led by increased new premium products shipments LCD: Premium TV Panels such as UHD/Curved/60”+ shipments and ASP increased driven by year-end seasonal demands - TV panel : Shipments decreased by low single-digit % QoQ increased by mid single-digit % YoY 15 Outlook OLED:Expect shipments to increase due to expansion of customer base; Focus on earnings improvement Secure future growth driver by increasing flexible panel sales LCD: Expect solid supply and demand condition to continue led by trend towards UHD and larger size panel 15 Q1 Outlook OLED:Expect shipments to grow as demand increases for new products; Focus on enhancing profitability LCD: Address TV set makers demand for Chinese New Year and new products with profitability-driven product mix Q4 Results and15 Outlook by Business Units C E 4 I M Q4 Results IM: Despite slight decline in smartphone shipments QoQ, earnings improved due to efficient cost management and increase in revenue from improved product mix - Sales trend Smartphone: ASP improved due to increase of high-end product portion, mainly driven by global expansion of Note4 Tablet: Shipments increased QoQ with Tab4 sales growth - Efficiency of marketing expenses improved as inventory stabilized Network : Revenue increased due to overseas carriers expansion of LTE network 15 Outlook Market : Expect smartphone competitions to intensify amid the demand growth driven by LTE and emerging market - Expect tablet growth to continue with mid to low-end demand Samsung : Focus on increasing smartphone shipments and securing profitability with new product portfolio 15 Q1 Outlook Market : Expect decrease in smartphone and tablet demand under weak seasonality Samsung : Strive to improve earnings with smartphone shipments growth due to the expansion of A series, etc. Q4 Results TV : Under strong year-end seasonality in US and European market, earnings improved QoQ led by increased premium product sales - Higher shipments growth QoQ from peak-season demand LCD TV QoQ 46% - Shipments of new premium products continued to increase Curved TV QoQ 78%, UHD TV QoQ 46% Digital Appliances : Earnings improved QoQ driven by increased sales of fridge/washing machine in US market - Increased premium refrigerator model shipments FDR/FSR Sales QoQ 16%/ YoY 25% FDR: French Door Refrigerator, FSR: Food Showcase Refrigerator 15 Outlook Expect TV demand to grow driven by UHD expansion and competition over new display technology Demand for digital appliances to increase in US market, premium product demand to grow 15 Q1 Outlook Expect TV demand to decrease QoQ entering weak seasonality; Focus on successful new product launch Appendix 1 Statement of Financial Position (K-IFRS) (Unit : KRW Billion) Dec 31, 2014 Sep 30, 2014 Dec 31, 2013 Dec 31, 2014 Sep 30, 2014 Dec 31, 2013 Current Assets 115,146.0119,811.3110,760.3115,146.0119,811.3110,760.3 - Cash * 61,817.366,951.254,496.0 - A/R 24,694.624,069.524,988.5 - Inventories 17,317.518,872.719,134.9 - Other