Samsung Electronics Reports 2005 Fourth Quarter Results: Record Quarterly Revenue of 15.52 trillion won

(Auszug aus der Pressemitteilung)

Seoul, Korea – January 13, 2006 – Samsung Electronics Co., Ltd. today

announced its financial results for 2005 fourth quarter ended December
31, 2005. The company posted net income of 2.56 trillion won, on revenue
of 15.52 trillion won. Operating income for the fourth quarter was 2.14
trillion won, compared with 2.13 trillion in the previous quarter.
Net income in the fourth-quarter increased 36% compared with the
previous quarter, while revenue jumped 7% compared to the previous
quarter.

“Despite challenging market conditions, we achieved strong profit growth
in the fourth quarter driven by healthy, solid results in our key
business units and overseas subsidiaries,” said Dr. Woosik Chu, senior
vice president and head of Samsung Electronics’ investor-relations team.
“This is a result of our competitiveness and focus on innovation.”
Revenue and operating income growth for the quarter were driven by
continued strength in the Semiconductor and LCD businesses. Operating
profit increased slightly in the fourth quarter from the previous
quarter even though the company set-aside provisions for a newly adopted
long-term, incentive-based compensation structure after the decision to
abolish stock-options.

The company also announced revenue of 57.46 trillion won for the fiscal
year ended December 31, 2005. Net income for the fiscal year 2005 was
7.64 trillion won and operating income was 8.06 trillion won.
Sales and net income of the Semiconductor Business increased to 5.09
trillion won and 1.62 trillion won, respectively, as demand for NAND
Flash chips used in MP3 players and mobile phones remained robust.
Migration to the finer process technology in NAND Flash helped reduce
manufacturing costs and boost profitability. Operating profit margins
stood at 32% in the fourth-quarter, a 3%-point increase from the
previous quarter.

Samsung expects solid momentum heading into 2006, as demand for value
added, “specialty DRAMs” used in graphic-focused products and 8Gb NAND
Flash is expected to increase.

The Telecommunication Network Business posted revenue of 4.95 trillion
won, and operating income of 380 billion won. Samsung sold 27.2 million
phones in the fourth quarter, the highest number of units on a quarterly
basis. Demand for D600, 3G phones, and high-end premium phones, remained
strong in the fourth quarter in Europe.
Samsung expects global demand for mobile phones to increase 5%-10% in
2006, and the company is confident to keep market leadership with the
expansion of the high-end premium handset portfolio including 3G phones
and WiBro.

The LCD Business reported revenue and operating income of 3.01 trillion
won and 400 billion won, respectively. The full ramp up of the latest
seventh-generation production line helped Samsung Electronics post solid
results and shore up profit margins in the fourth quarter. Margins in
the fourth quarter was 13%, up 2% points from the previous quarter.

The seventh generation line processes glass sheets that measure 187
centimeters by 220 centimeters on which eight 40-inch panels or six
46-inch panels can be made with little waste. In January 2006, Samsung
opened a second production line, or 7-2, and began shipping the first
panels off the line. The two production lines are expected give further
cost advantages to Samsung Electronics.

Digital Media Business sales decreased to 1.58 trillion won and posted a
20 billion won operating loss. Sales of its Digital Appliance Business
dropped 12% to 750 billion won and operating loss of 6 billion won.