Samsung 2001 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2001 Samsung annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 71

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71

Communications unit that pushed its portion of overall sales to 28%, right between the
Digital Media unit’s 29% and the Semiconductor unit’s 27%. The latter figure was down
from 38% of overall sales in 2000 as unit sales plunged 32% year-on-year along with the
collapsing memory market. The Home Appliances unit also enjoyed solid 12% year-on-
year growth, providing nearly 10% of total sales revenue.
So where do we stand today on our key 2005 goals of 80 trillion won in sales and
a brand equity of US$31 billion? While sales slipped nearly 5.6% to 32.4 trillion won in
2001, our debt-to-equity ratio fell from 66% to just over 43% as we continued to pay off
loans in a timely manner. Virtually unheard of in our industry, this extremely low
ratio indicates we now have a solid foundation for long-term profitability. Another
important fact to remember is that as our competitors in the memory business were
facing huge losses or bankruptcy in 2001, we were cutting costs, shifting production to
higher-margin products, and expanding R&D to system-on-chip devices and other
non-memory areas. At year-end, our staying power had boosted our global market
share in DRAM another 4% to 27%, solidifying our leadership in a field that is poised
to significantly rebound in 2002 and beyond as well as providing a powerful boost to
both sales and income going forward.
Financial facts and figures provide important insights into our business performance,
but I’d like to take a few moments to step back and share with you the “big picture”
of where Samsung is headed and how we intend to get there.
In November 2000, we embarked on the mission of transforming our organization
into a “Digital- Company” capable of achieving our vision of leading the digital con-
vergence revolution. I talked about Digital- Company in a strategy context last year,
but it is more than just something we are doing. It is something we are becoming.
Businesses W1,918.2 Sales Distribution by Unit
+18.69% Digital Appliance Network W3,107 +13.17%
million DRAM chips ship in March Apr 3 Part of side-by-side fridge sales donated to UNICEF Apr 4 Flip-chip BGA package debuts 09