Samsung Electronics 1st Quarter Performance Results Are in

(Auszug aus der Pressemitteilung)

Seoul, Korea – April 19, 2003 – On April 18, Samsung Electronics announced its first quarter figures, which show a strong performance despite economic instability in both the domestic and overseas markets. The main operating results are W9.6 trillion in sales, W1.35 trillion in operating income and W1.1 trillion in net income. Sales were 10.5% down quarter on quarter, while net income was also 10.5% lower than in for the last quarter of 2002.

The sales figures for Samsung Electronics‘ four mainstay businesses were W3.52 trillion for the Device Solution Network (semiconductors and LCD), W3.33 trillion for the Telecommunication Network (information and communications), W1.87 trillion for Digital Media Network (audio visual appliances and computers), and W800 billion for Digital Appliance Network (home appliances). As for operating income, the Device Solution Network achieved W570 billion, the Telecommunication Network posted W680 billion, Digital Media Network showed W100 billion and Digital Appliance Network came in with W10 billion.

First quarter performance highlights include a 19% sales growth for TFT-LCDs, 17% higher operating income for system LSI devices, an increase of 4.8% in mobile phone sales, and a 20% higher operating margin for the Telecommunication Network. The company’s overall operating margin of 14% remained the same quarter on quarter.

A breakdown of the sales figures for the Device Solution Network shows W1.79 trillion for memory chips, W770 billion for LCDs, and W450 billion for system LSI devices, while mobile phones accounted for W3.04 trillion out of the total sales for the Telecommunication Network.

Meanwhile, the Device Solution Network amounted to 37% of total sales; the Telecommunication Network, 35%; the Digital Media Network, 20%; the Digital Appliance Network, 8%; and other new business areas, 1%. Operating margin by sector was 16% for the Device Solution Network, 20% for the Telecommunication Network, 5% for the Digital Media Network, and 1% for the Digital Appliance Network. The Digital Media Network and the Digital Appliance Network, which both posted losses in the last quarter of 2002, were solidly in the black for the first quarter of 2003.

Turning to financial soundness and profitability indicators, liabilities fell W1.4347 trillion quarter on quarter and the debt-to-equity ratio was 34.4% at quarter’s end. The interest-bearing debt-to-equity ratio was 7.5%, while ROE was 18% and gross margin was 30%.

Samsung Semiconductor Europe