Samsung 2004 Annual Report Download - page 48

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> Refrigerators >> Microwave Ovens >> Washing Machines >> Dishwashers >
SH12BPH Air Conditioner
This premium wall-mounted air conditioner features
a silver ion-based filtration system that kills airborne
bacteria and fungi in just minutes.
R&D INVESTMENT 2004 $147.7million
$130.4million
2003
DIGITAL APPLIANCE BUSINESS
The global appliance market was valued at around $165 billion in 2004 as it continued to steadily grow at an
annual rate of about 3%. During the year, our sales fell 4% to $3.1 billion as demand in our home market of
Korea remained stagnant and revenues from our microwave business dried up with the transfer of our
microwave production facilities to subsidiaries in Southeast Asia. We also recorded a $51.5 million operating
loss primarily due to the poor performance of our air conditioner business. Despite this disappointing overall
performance, 2004 saw a number of key developments that will positively impact our performance going for-
ward. In April, we successfully wrapped up a three-year, $10 million R&D project with the introduction of new
air conditioner, refrigerator, and washing machine products featuring our revolutionary Silver Nano™Health
System technology with silver nano-particle surface coatings and silver ion generators to safely and effectively
kill disease-causing fungi, germs, and up to 650 types of bacteria. The year also saw us win Homevita™total
home network solution orders for 17,000 apartment units as we completed the world’s largest home net-
work project to date covering 480 units in Daegu, Korea and took the next step in promoting Homevita™as a
03 SALES 04
$3.3billion $3.1billion
03 OPERATING PROFIT 04
-$106.2million -$51.5 million
FINANCIAL HIGHLIGHTS
Entered a strategic five-year alliance with
home appliance powerhouse Maytag to bring
high-end drum washing machines to
the US market.
FEBRUARY
Joined forces with Philips to launch the
Universal Home API initiative for TVs, set-top
boxes, and other home electronics.
JANUARY
Won best new product award for
the RH2777AT HomePAD™refrigerator at
the 2004 Kitchen/Bath Industry Show &
Conference in Chicago.
APRIL