Samsung Electronics‘ Operating Profit Surpasses KRW 4 Trillion

(Auszug aus der Pressemitteilung)

SEOUL, Korea , April 16, 2004 – Samsung Electronics Co., Ltd. announced its

revenue and income results for the first quarter of 2004. Sales revenue
reached KRW 14.41 trillion, while operating income and net income were KRW
4.01 and KRW 3.14 trillion, respectively, for the quarter. In particular,
operating margins were at an impressive 27.8%. Samsung recorded
quarter-on-quarter growth in operating income and revenue of 52.6% (4Q03:
KRW 2.63 trillion) and 11.9% (4Q03: KRW 12.89 trillion), respectively.
Compared to figures from the same period last year, operating income and
revenue grew by 197% (1Q03: KRW 1.35 trillion) and 50.1% (1Q03: KRW 9.60
trillion), respectively.

The Telecommunications Network (TN) Business accounted for 34% of sales with
operating profits of KRW 1.26 trillion on sales of KRW 4.85 trillion. While
29% of the sales revenue is attributed to the Semiconductor Business with
operating profits of KRW 1.78 trillion on sales of KRW 4.12 trillion, 16% of
sales came from the LCD Business, which recorded operating profits of KRW
840 billion on sales of KRW 2.37 trillion. The Digital Media (DM) Business
recorded operating profits of KRW 140 billion on sales of KRW2.17 trillion,
thus contributing 15% to total sales revenue. The Digital Appliance (DA)
Business with operating profits of KRW60 billion on sales of KRW800 billion
accounted for 6% of the company’s total sales.

The Semiconductor Business turned in notable performances. Increased sales
of flash memory, rising price of DRAMs, advancements in its shrink
technology, growing competitiveness of the System LSI business contributed
to a quarter-on-quarter growth of 5.6% and 17.4% in sales and operating
profit, respectively.

Due to increased demand with the growth of the LCD-TV market and rising
sales price, the LCD Business closed the quarter with an impressive
performance of 21% and 66% quarter-on-quarter growth in revenue and
operating profit, respectively.

The TN Business recorded growth of 23% and 72% in sales and operating
profit, respectively. With the launch of premium products, such as the color
phone, camera phone and camcorder phone, volume sales of its mobile phones
surpassed 20 million units attesting to the worldwide popularity of the
company’s high value-added mobile phones.

The DM Business experienced outstanding growth in the first quarter due to
the strength of its digital TV business. 420 thousand units were sold in
the first quarter and Samsung expects digital TVs to take a cash-cow role in
the future with the growth of the world-wide digital TV market. Despite the
lull in domestic demand, the DA Business showed a remarkable turn-around
from KRW 80 billion loss to KRW 60 billion operating gain.

In addition to its impressive earning figures, Samsung Electronics‘
financial structure improved as assets grew from KRW 39.2 trillion to KRW
42.18 trillion, liability increased by KRW 610 billion and shareholders‘
equity reached to KRW 2.36 trillion. Compared to last year’s 15%,
return-on-equity increased to 41%, on an annualized basis.