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    2007 Samsung electronics annual report
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    ... networks digital appliance semiconductor LCD 34 38 42 46 50 thinking more of you corporate citizenship co-prosperity green management financial statements investor information global network 56 58 60 63 130 131
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    ... Highlights Samsung Electronics and Consolidated Subsidiaries [in billions of KRW ] Income Statement Sales ... 2006 85,426 9,008 7,926 2007 98,508 8,973 7,421 Balance .... All the financial data in this report comes from the consolidated financial statements. Samsung electronics annual ...
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    ... millions of KRW ] 26.5 17.7 Digital Media 0.7 2006 20.8 2005 2006 2007 1.06 Net sales Operating profit (loss) \ 17,656...KRW ] 2006 2007 [in millions of KRW ] 2005 2006 2007 Digital Appliance 5.6 5.5 6.9 Net sales \ 5,617,708 (29,102) \ 5,538,837 (71,213) \ 6,854,578 ...
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    ... for a sixth consecutive year. In ongoing efforts to enhance our leadership, we also have begun mass producing the world's first touch-screen-enabled LCD. Samsung electronics annual report 2007 03
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    Message from the CEO By increasing management prowess and embracing innovation at every opportunity, Samsung Electronics will become one of the most profitable and most revered global companies.
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    ..., we focused on increasing our R&D workforce to strengthen its future contribution to our company and, as a result, the number of R&D engineers reached 39,000. Samsung electronics annual report 2007 05
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    ... the prospect of high added value in such segments as printers, System LSI, and Mobile WiMAX. To capitalize on the rapid growth of emerging markets, we will develop locally customized products and implement a much higher level of differentiated ...
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    SALES REVENUE BY DIVISION [As of the end of 2007] 25% 23% Digital Media Telecommunication Networks Digital... company, admired by customers worldwide. I would like to welcome the encouragement and support of customers ... Officer Samsung Electronics Co., Ltd. Samsung electronics annual report 2007 07
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    ... and sound management. Samsung Electronics has enthusiastically established a global standard of corporate ...company stock. We also organized our third Analyst Day to help our investors ... an unparalled global electronics leader, actively practicing creative management with consistent innovation in our ...
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    ... of Technology [2005-May 2008] •  Vice Chairman, Global Collaboration, Samsung Electronics Co., Ltd CEO, Samsung Advanced Institute of Technology [2004-... [2003-2005] • Chairman, Korean Human Resources Management Institute [2002-2003] • Samsung electronics annual report 2007 09
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    ...the previous year. We have continued our first-mover status in global market share since we first achieved the world-leading sales revenue mark in 2002. The Best Smartphone of CTIA 2007 S a m s u n g's B l a c k J a c k II wa s h o n o re d a ...
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    ...-chip RFID reader for C mobile devices for the first time  urpassed monthly US$2 billion LCD panel S sales total for the first time • • • • Samsung electronics annual report 2007 11
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    ... in today's market. To stay relevant in this ever-changing world, we must keep one step ahead of our customers. That's why we have dedicated ourselves to exceed the needs of our customers through the production and sale of world-class products and, most importantly, by ...
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    ahead of you Samsung electronics annual report 2007 13
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    thinking North America _ Samsung Electronics' premium products-all built with the latest in cutting-edge technology- are loved by consumers across North ... digital TV, smart phone, music phone, video MP3 player, side-by-side refrigerator and drum washing machine. Supported by a...
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    ... high image quality of our LCD TV with the latest Blu-ray player. And, watch your favorite movies for the first time as a completely new, high definition experience. Samsung electronics annual report 2007 15
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    thinking Europe _ Satisfying our European customers' sophisticated sensibilities is a top priority. Our premium products include the TOC monitor, Armani TV, J-Series refrigerator by Jasper Morrison, and a ... and stylish design, our innovative premium products will increase customer loyalty and pave ...
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    .... b Monitor (T260) Our beautifully designed monitors provide you with the power and features to help drive your business well into the future. c...(SGH-i617) Boost productivity whether you're in the office or on the road with the award-winning BlackJack II. Samsung electronics annual report 2007 17
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    thinking Emerging Markets _ The dynamic growth in emerging markets, including China, is a major opportunity for Samsung Electronics. With aggressive marketing and locally customized products, including digital media, mobile phones and home appliances, we are providing a ...
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    ... trend in washing machines is our silent, but powerful, drum washing machine. From an attractive design to top-notch performance, this washing machine has it all. Samsung electronics annual report 2007 19
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    thinking thinking
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    ... of customers worldwide, which will propel our company and our brand well into the future. company in its annualInfo Tech 100. company in its annualInfo Tech 100. Samsung electronics annual report 2007 21
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    ... activities through systematic cooperation with leading global brands. Strategic marketing and technology alliance with Time Warner Samsung Electronics partnered with Time Warner Cable, the second largest cable company in the U.S., to sell its TVs ...
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    ...our customers. Providing a Wide Range of Benefits for Worldwide Tourists Outstanding displays by Samsung Electronics ... technology. Samsung Experience at Time Warner Center in New York City Located in New... the most beloved brand in the world. M arketing Samsung electronics annual report 2007 O ffice...
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    ... category, we supplied cutting-edge mobile devices, starting with the 2004 Athens Summer Games, to assist successful management of the event. During ... club sponsor of the Chelsea Football Club, Samsung Electronics will play a key part in its global development. Both brands share the same passion for ...
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    ... lobal H 2008 Beijing Olympic Sponsorship Event Samsung Electronics has been a proud sponsor of the Olympic Games since 1998, and is pleased to ... our passion with the world and contribute to the betterment of society. er ,C orporate Samsung electronics annual report 2007 Communications Team 25
  • Page 28
    ...capability is critical for Samsung Electronics' continued march toward becoming a leading global company. Through ...within one or two years. Samsung Electronics operates six R&D centers in Korea and a total... of our customers. At the end of 2007, 39,000 people were involved in the development of Samsung...
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    ... paper (e-paper), delivering undistorted images even when the surface is bent. This flexible display does not require any electricity. 14.3-inch e-paper b c c Samsung electronics annual report 2007 27
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    a b
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    ... built-in Content Library. YP-S5 MP3 Player At only 14.9mm thick, the YP-S5 is an extremely portable multimedia device. Its full color screen makes .... The device attaches to a mobile network connection and is designed to enhance coverage for the home. b c Samsung electronics annual report 2007 29
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    ... comes fully equipped with a five megapixel camera and a 3.2-inch, 16:9 wide touch screen. Plus, it is built with Samsung's award-winning Croix user interface, enabling greater convenience and ease of use. Ultra Edition 10.9, SGH-U600 The ...
  • Page 33
    ... era of digital convergence. Global Design Network to Satisfy Every Customer Samsung Electronics operates seven design centers: the Corporate Design Center in Seoul along with centers in ... Se [W ni or ireless D es i Unit gn er ], Corporate Samsung electronics annual report 2007 Design 31 Center
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    ... be a given. thinking Like modern-day pioneers, Samsung Electronics has opened doors to new worlds through our innovative products and our ... fostering more strategic alliances, and delivering an unrivaled customer experience, Samsung has catapulted itself to the forefront of efforts ...
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    smarter for you Samsung electronics annual report 2007 33
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    digital media
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    ... products, such as LCD monitors, digital audio-visual products, laser printers and notebook PCs. Sales increased to KRW26.51 ... dominance of the flat panel TV market helped us to maintain No. 1 market share in both sales revenue and units sold for two consecutive years and seven consecutive quarters, ...
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    .... In 2007, we ranked No. 1 in the global LCD monitor market and were selected as the best U.S. monitor brand for the fifth year in a...(UMPC), and a Blu-ray-enabled notebook PCs, we will penetrate the emerging markets of China, Eastern Europe and the Commonwealth of Independent States (CIS, the former ...
  • Page 39
    ... of the Year" in the Display Technology category of the VARBusiness Annual Report Card (ARC), recognizing Samsung's innovation, partnership relationships and... According to DisplaySearch, Samsung Electronics remained the global leader in the world TV market, both in sales revenue and units sold, as of...
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    telecommunication networks
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    ... included. 2006 2007 2.76 1.93 2006 2007 GLOBAL MOBILE PHONE MARKET SHARE IN 2007 [KRW trillion] SALES [KRW hundreds of billion]... a steady flow of new customers into emerging markets, according to Strategy Analytics, a market research firm. In Korea, the market surged 25%...
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    .... Fashioning the Mobile Customer Worldwide Launching premium products, as well as rapidly penetrating emerging markets, enabled Samsung Electronics to become world's second-largest mobile phone maker last year. Following this strategy, we ...
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    ... such as mobile blogging, and a web browser. Ultimate Choice for Mobile Lifestyles In 2008, the global mobile phone market is expected to slow, due to ... will further bolster our mobile communication brand as the industry takes mobility to the next level. Samsung electronics annual report 2007 41
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    digital appliance
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    .... In Korea, we also placed first in the 2007 National Customer Satisfaction Index (NCSI) in the refrigerator, washing machine and air conditioner categories. Samsung electronics annual report 2007 43
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    ...Korea in 1997, Samsung Electronics has led the premium refrigerator market, debuting such innovations ... refrigerators its "Highest Customer Satisfaction" rating for the third straight year. In 2008, Samsung Electronics'... efforts in emerging markets such as China, Central Asia and the CIS countries. We...
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    .... Less water consumption Less energy consumption 25% 20% Robot Vacuum Cleaner Samsung's innovative robot vacuum enables faster and more efficient cleaning, with a...function to the conventional oven, grill and microwave, as well as dry heat and fermenting. Samsung electronics annual report 2007 45
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    semiconductor
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    ... with continued market dominance in most areas of the memory business, including strong sales in DRAM, SRAM, MCPs, flash memory and fusion memory devices. Samsung electronics annual report 2007 47
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    ... became the first company to mass produce 16Gb NAND Flash memory chips-the largest capacity on the market today. This ...previous industry leader, GDDR4. Unwavering Memory Leadership In 2007, Samsung Electronics easily held on to its No. 1 position in the memory industry with 28% overall market share. ...
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    ... LSI Division solidified a strong base for further growth by increasing sales of Display Drive ICs (DDIs), CMOS image sensors and media player chips. Specific ... them lighter, more durable, quieter, and more energy efficient. Samsung electronics annual report 2007 49
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    LCD
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    ... in a wide variety of applications. In 2007, Samsung Electronics was ranked No. 1 in display panels for TVs, desktop monitors and notebook PCs, achieving a ... consecutive years, ensuring our continued leadership in the LCD industry. Samsung electronics annual report 2007 51
  • Page 54
    ...- and Mid-sized Panels We are producing a wide range of AMOLED sizes for premium mobile multimedia devices. The displays use Samsung's proprietary amorphous silicon gate technology and their production has reduced the mobile panel circuitry footprint ...
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    ... of next-generation display panels and thin-film solar cells. With such aggressive expansion efforts, we will consolidate our status as the world's leading LCD producer. Samsung electronics annual report 2007 53
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    ... local communities through corporate social responsibility and co-prosperity initiatives. Samsung has also remained steadfast when it comes to supporting education initiatives, helping of the disadvantaged and efforts to stop the ...
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    more of you Samsung electronics annual report 2007 55
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    ... value. In 1995, Samsung Electronics launched the Social Contribution Corps to encourage employees to participate in community service. In 2006, ..., One Village Sisterhood Ties" for helping farming communities, in addition to offering computer training for the blind. Samsung Running Festival Linking ...
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    ... disease prevention campaign. Sharing Love and Hope around the World Samsung Electronics' social contribution work extends beyond our ... communities they served. In 2007, the Guangming Daily awarded Samsung Electronics, for the third year in a row, with one of its Public Benefit Prizes in recognition ...
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    ... their ability to improve business management controls internally by sharing transaction information with Samsung Electronics in real time. In addition, ...at the right time at the right price, paving the way for win-win partnerships. Samsung Partners' Day The annual Samsung Partners' Day was held in ...
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    ... days by 30% and bookkeeping time by 50%. 2007 Innovation Case Studies of Partner Companies On November 15, 2007, we organized our "Innovation Case ... ideas to sharpen our mutual leadership in technology while enhancing the cohesiveness of our partnerships. Samsung electronics annual report 2007 59
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    ... certification continues to expand worldwide. Eco-partner Certification Program In 2004, Samsung Electronics established the Eco-partner Certification Program to manage hazardous substances... have taken steps to promote eco-friendly supply chain management, operate recycling centers that...
  • Page 63
    ...an active leader of environment initiatives to address global warming, Samsung Electronics introduced the "Catch CO2 Project" in 2002, a voluntary initiative to reduce our ... on our product-related environmental policies .and programs. Samsung electronics annual report 2007 61
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    ...Flows Consolidated Five-year Financial Summary 66 68 69 73 75 Notes to the Consolidated Financial Statements 77 Investor Information Global Network 132 133 Samsung electronics annual report 2007 63
  • Page 66
    ... sheets of Samsung Electronics Co., Ltd. and its subsidiaries (collectively referred to as the "Company") as of December ...We did not audit the financial statements of Samsung Card Co., Ltd. and certain... 18 to the accompanying consolidated financial statements, Samsung Electronics Co., Ltd. ("SEC") and...
  • Page 67
    ... should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any. Samsung electronics annual report 2007 65
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    ...Short-term financial instruments (Note 4) Short-term available-for-sale securities (Note 5) Short-term held-to-maturity securities (Note 5) Trade accounts and notes receivable, net of allowance for doubtful accounts (Note ...
  • Page 69
    ... dollars (Note 3)) Liabilities and Shareholders' Equity Current liabilities Trade accounts and notes payable Short-term borrowings (Note 13)... $ 86,744,356 The accompanying notes are an integral part of these consolidated financial statements. Samsung electronics annual report 2007 67
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    ... Income Years Ended December 31, 2007 and 2006 (In millions of Korean won and in thousands of U.S. dollars (Note 3)) SALES (Note 27) Cost of sales (Note 27) Gross profit Selling, general and administrative expenses Operating profit Non-Operating Income Interest...
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    ...,574 20,082 355,350 ₩ 897,514 ₩ 6,364,604 ₩ (6,994,210) ₩ 532,820 ₩ 44,463,683 ₩ 2,675,456 ₩ 47,939,867 continued Samsung electronics annual report 2007 69
  • Page 72
    ...Shareholders' Equity Years Ended December 31, 2007 and 2006 (In millions of Korean won)...stock Disposal of treasury stock Stock options Gain on valuation of available-for-sale securities Loss on valuation of available-for-sale securities Gain on valuation of equity-method investments Loss...
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    ... 378,838 $  956,838 $   6,785,292 $ (7,456,514) $  568,038 $ 47,402,647 $  2,852,299 $ 51,108,600 continued Samsung electronics annual report 2007 71
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    ...' Equity Years Ended December 31, 2007 and 2006 (In thousands of U.S. dollars (Note ... stock Disposal of treasury stock Stock options Gain on valuation of available-for-sale securities Loss on valuation of available-for-sale securities Gain on valuation of equity-method investments Loss ...
  • Page 75
    ...,398 (1,646,130) 3,028,477 (1,842,360) 564,016 3,718,317 (3,718,158) (1,754,936) 3,228,654 (1,964,136) 601,296 3,964,091 (3,963,921) continued Samsung electronics annual report 2007 73
  • Page 76
    ... property, plant and equipment Acquisition of property, plant and equipment Proceeds from sale of long-term available-for-sale ... Acquisition of treasury stock Others Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in...
  • Page 77
    ... 70 520 0 9,828 11.5% 1,634 (268) 7,926 9.3% 2007 98,508 70,881 27,627 28% 18,654 8,973 9.1% 660 171 378 0 9,633 9.8% 1,710 (502) 7,421 7.5% continued Samsung electronics annual report 2007 75
  • Page 78
    ... 0.09 1.10 1.74 30.2% 9.8% 52,880 2007 14.3% 0.08 1.13 1.68 25.9% 4.8% 49,502 The numbers are adjusted for the latest change in Korean GAAP and thus may be different from those in audited financial statements. Financial sectors are included in the ...
  • Page 79
    ... and sell semiconductors, LCD, telecommunication products, digital appliances and digital media products. SEC's shares of stock are publicly traded, and all issued and outstanding shares are listed on the Korea Stock Exchange. As of December 31, ...
  • Page 80
    ...) Manufacturing and sale of electronic goods Samsung Telecommunications America, LLC (STA) Mobile phone sales and research and development Samsung Electronics Latinoamerica (...of SEC's domestic subsidiaries, has listed its issued and outstanding shares on the Korea Stock Exchange.
  • Page 81
    ... (SER) Marketing Samsung Electronics Polska Sp.zo.o. (SEPOL) Samsung Electronics South Africa (Pty) Ltd. (SSA) Sale of electronic goods ...South Africa 100.00 Slovakia continued Samsung Electronics Slovakia s.r.o. (SESK) Monitor manufacturing Samsung electronics annual report 2007 79
  • Page 82
    ... (SEO) LLC Samsung Electronics Rus Company (SERC) LLC Samsung Russia Service Center (... Institute (SYRI) Research center Samsung Electronics (M) Sdn.Bhd. (SEMA) Home appliances manufacturing ....00 100.00 100.00 Samsung Electronics Display (M) Sdn.Bhd. (SDMA) Monitor manufacturing ...
  • Page 83
    (In millions of Korean won) Subsidiaries Samsung Electronics Hong Kong Co., Ltd. (SEHK) ...(SSS) Semiconductor sales Samsung Semiconductor (China) R&D Co., Ltd. (SSCR) Research center Samsung Electronics Hainan ... 100.00 China 70.00 China Samsung electronics annual report 2007 81
  • Page 84
    ... financial statements follows: (In millions of Korean won) Subsidiaries Assets Liabilities Samsung Gwangju Electronics Co... Asia Private Ltd. (SAPL) Samsung Electronics Hong Kong Co., Ltd. (SEHK) Samsung Electronics Taiwan Co., Ltd. (SET) Samsung (China) Investment ...
  • Page 85
    ... R&D Center Research Samsung Electronics China R&D Center Research Samsung Electronics Shenzhen Co., Ltd. Semiconductor sales In accordance with consolidation ... Name of Subsidiaries Remark Korea Bluetek Co., Ltd. Liquidation completed Samsung electronics annual report 2007 83
  • Page 86
    ... (Financial Industry), Samsung Card Co., Ltd., one of SEC's domestic subsidiaries, changed its account classification.... share. A s e x p l a i n e d i n N o t e 2 4 , i n a c c o rd a n c e w i t h t h e K o r e a Accounting Institute Opinion 06-2 announced on December 29, 2006, the Company changed ...
  • Page 87
    ...if any. The remainder may be credited to other capital surplus or transferred to common stock. A new basis for calculating depreciation is established for revalued assets. Samsung electronics annual report 2007 85
  • Page 88
    ... is deposited with the National Pension Fund and deducted from the accrued severance benefits liability. Revenue Recognition Sales of products and merchandise are recognized upon delivery when the significant risks and rewards of ownership of the ...
  • Page 89
    ... abrupt decline in the market value of the asset, the decline in value is deducted from the book value and recognized as an asset impairment loss in the current period. Samsung electronics annual report 2007 87
  • Page 90
    ... States Dollar Amounts The Company operates primarily in Korean won and its official accounting records are... Government-sponsored research and development projects Other activities Long-term financial ... Short-term available-for-sale securities as of December 31, 2007 and 2006, consist of...
  • Page 91
    ... of December 31, 2007 and 2006, consist of the following: (In millions of Korean won) Government and public bonds ₩ 2007 130 ₩ 2006 248 Samsung electronics annual report 2007 89
  • Page 92
    ... 31, 2007 and 2006, are as follows: (In millions of Korean won) Trade accounts and...,837 As a consolidation entry to account for the sale of subsidiaries' receivables, the Company has recognized borrowings... recourse ₩ 2007 4,037,885 ₩ 2006 4,002,923 From 2003 to 2005, Samsung Card...
  • Page 93
    ...). 8. FINANCING RECEIVABLES Financing receivables of the consumer financing subsidiary, Samsung Card Co., Ltd., as of December 31, 2007 and 2006, are as follows: (In millions of ...,802 624,094 352,049 606,330 247,291 4,255,566 (449,031) 3,806,535 8,393,507 Samsung electronics annual report 2007 91
  • Page 94
    ...31, 2007, follows: (In millions of Korean won) Year 2008 2009 2010 2011 2012...,158 355,351 As of December 31, 2007 and 2006, properties under operating... as follows: (In millions of Korean won) Automobiles Electronic system Less: Accumulated depreciation Accumulated...
  • Page 95
    ... investments would not be recoverable, and recorded an impairment loss of ₩13,349 million under non-operating expenses for the year ended December 31, 2006. Samsung electronics annual report 2007 93
  • Page 96
    ...number of shares and percentage) 2007 Number of Shares Owned Related parties Samsung Petrochemical Co., Ltd. 514,172 Samsung General... International Cyber Marketing, Inc 1 Samsung Everland Co., Ltd. 1 Allat Corporation1 LLC Samsung Electronics Rus Kaluga1...
  • Page 97
    ... Co., Ltd. declined significantly, the difference between the book value and recoverable amount amounting to ₩20,700 million was charged to impairment loss. Samsung electronics annual report 2007 95
  • Page 98
    ... Inc. Samsung Lions Co., Ltd. MEMC Electronic Materials Korea, Inc. Samsung Corning Precision Glass Co., Ltd. ...Telecommunication Equipments Manufacturing Establishment Co., Ltd. Shanghai Bell Samsung Mobile Communications Co., Ltd. eSamsung Greater China Co., Ltd. TSST...
  • Page 99
    ... - - 294 49.00 49.00 49.03 ₩ 2,061 7,742 150,451 1,911,229 3,683 4,458 19,926 ₩ 3,445,782 3,356 3,233 50,518 ₩ 3,393,617 Samsung electronics annual report 2007 97
  • Page 100
    ... Seoul Commtech Co., Ltd Samsung Corning Precision Glass Co., Ltd. eSamsung Greater China Co., Ltd. TSST... ₩ (11,040) Samsung Corning Precision Glass Co., Ltd. Shanghai Bell Samsung Mobile Communications Co., Ltd. Others ₩   6,593 ₩   (...
  • Page 101
    ...,614 49,285 3,224 178,123 79,187 44,981 1,446 125,614 Samsung Corning Co., Ltd. 233,484 (53,220) (180,264) - ... 3,393,617 ₩ 377,626 ₩ 11,170 ₩ 3,782,413 ₩ 2,923,314 ₩ 519,661 ₩   Samsung electronics annual report 2007 99
  • Page 102
    ... Investee Assets Liabilities Sales Assets Liabilities Sales Net Income Samsung SDI ₩ 4,907,...22,489 Market value information of publicly listed investees as of December 31, 2007 and ..., which are included in the shareholders' equity. On December 28, 2007, Samsung Corning Co., Ltd. merged ...
  • Page 103
    ... Cyber Marketing ² America Content Management License Administrator LLC ² Asia Samsung Electronic Ticaret A.S. ² Future Technology & Service Corporation ² SSJ Vina ...(6,696,162) 11,932 (242,078) ₩ 1,166,098 ₩ 33,784,615 Samsung electronics annual report 2007 101
  • Page 104
    ... with the Asset Revaluation Law, on October 1, 2000, Samsung Gwangju Electronics Co., Ltd., an SEC subsidiary, revalued a portion of its property, plant and equipment by...₩ 3,654,206 million). As of December 31, 2007 and 2006, Samsung Card Co., Ltd., an SEC subsidiary, recorded ...
  • Page 105
    ... (2006: ₩1,557,976 million) and current maturities of long-term debts of ₩1,933,885 million (2006: ₩2,722,010 million) as of December 31, 2007. Samsung electronics annual report 2007 103
  • Page 106
    ... of the following: (In millions of Korean won) Annual Interest Rates (%) as of December 31, 2007 Korea Energy Management Corporation Samsung Shinhan 4th Special Purpose Company Shinhan Bank and others 4.5 - 5.8 ~ 6.1 ₩ ...
  • Page 107
    ...,371 4,831 64,303 497,260 ₩ 1,455,000 890,000 370,000 10,000 - 2,725,000 ₩ 1,752,645 1,611,300 400,199 17,261 64,303 3,845,708 Samsung electronics annual report 2007 105
  • Page 108
    ...at 7.7% per annum and will mature on October 1, 2027, with repayments to be made annually for 20 years after a ten-year grace period from the ... of issuance. (B) US dollar floating rate notes US dollar floating rate notes issued by Samsung Card Co., Ltd., one of SEC's domestic subsidiaries, will ...
  • Page 109
    ... currency exchange rates. As of December 31, 2007, the Company funded 60.7% of severance payable through severance insurance deposits with Samsung Life Insurance Co., Ltd. and Samsung...,328 455,848 134,440 1,638 - - 929,077 1,342,932 39,145 146,875 Samsung electronics annual report 2007 107
  • Page 110
    ...liable for guarantees amounting to $21.6 million undertaken by Citi Bank relating to the guarantees for Samsung Electronics Latinoamerica (Zona Libre), S.A., one.... As of December 31, 2007, SEC is providing a US$25 million guarantee for Samsung Electronics Hungarian RT. Co., Ltd. relating to ...
  • Page 111
    ...Insurance Corporation. ( G) As of December 31, 2007, the Company has forward exchange contracts to manage the exposure to changes in currency exchanges rates in accordance with its ...the impact of changes in the fair-value risk on fixed rate long-term debt. Samsung electronics annual report 2007 109
  • Page 112
    ...Ltd., Wistron Corporation, International Printer Corp., Premier International Associates, LLC., Saxon Innovations, LLC., Innovative... mentioned above and various other claims and proceedings pending as of December 31, 2007, the Company's management believes that, although the outcome of these matters ...
  • Page 113
    ... for bank borrowings and for the fulfillment of certain contracts, which do not have a direct adverse effect on the operations or financial position of the Company. Samsung electronics annual report 2007 111
  • Page 114
    Notes to the Consolidated Financial Statements continued (N) A domestic subsidiary of the Company, Samsung Card Co., Ltd. ..., subject to the Board of Directors' approval, to issue shares of common or preferred stock to investors other ... Number of Shares of GDR 7,695,272 4,251,339 15,390,544 8,502,...
  • Page 115
    ..., the Regulation was amended and as result the Company is no longer required to further accumulate reserve and removed the restrictions on the usage of the existing reserve. Samsung electronics annual report 2007 113
  • Page 116
    ... stock Preferred stock 2007 (In millions of Korean won and number of shares) 2006 128,758,... Stock Common Stock Preferred Stock Dividend per share Market price 1 Dividend yield ratio... 486,000 1.14% 1. The average closing price for the prior week from two trading days before closing...
  • Page 117
    ...periods. As of December 31, 2007, Samsung Card Co,. Ltd., a domestic subsidiary, has granted 120,472 shares including 45,472 shares, which ... to SEC's ownership ratio are included in a separate component of shareholders' equity as other capital adjustments. Samsung electronics annual report 2007 115
  • Page 118
    ...to the Consolidated Financial Statements continued 24. Income Tax The statutory income tax rate applicable to the Company, including resident surtax, is 27.5%. Income tax ... to the actual amount of taxes recorded by the Company for the years ended December 31, 2007 and 2006: (In ...
  • Page 119
    ... ₩ (399,886) (755,003) (1,456) (753,547 334,032 ₩ 1,533,307 ₩ (1,199,275) 306,323 791,219 20,090 787,929 286,233 3,290 Samsung electronics annual report 2007 117
  • Page 120
    ...308) (352,809 632,899 ₩ 1,462,134 ₩ (829,235) The Company periodically assesses its ability to recover deferred income tax assets. In the event of a significant uncertainty regarding the Company's ultimate ability to recover such assets, a valuation allowance ...
  • Page 121
    ...,117) (7,394) In accordance with the Korea Accounting Institute Opinion 06-2 announced on December 29, 2006, the Company changed its method of recognizing deferred ..., have not been restated as permitted under the Korea Accounting Institute Opinion 06-2. Samsung electronics annual report 2007 119
  • Page 122
    ...and number of shares) Net income as reported on the statements of income Adjustments: Dividends for preferred stock...52,120 ₩ ₩ 1. Common equivalent shares: 2007 Number of shares Stock options 1,494,909 Weight Common Stock Equivalent 365/365 1,494,909 2006 Number...
  • Page 123
    ... 20,082 (156,147) (3,734) ₩ 9,541,679 ₩ 8,314,380 ₩ 8,763,144 ₩ 8,013,574 778,535 300,806 ₩ 9,541,679 ₩ 8,314,380 Samsung electronics annual report 2007 121
  • Page 124
    ..., are as follows: (In millions of Korean won) Sales Subsidiaries 2007 2006 SJC SLCD STA...179 418,026 5,689,401 1 Payables 2007 2006  164,459 ₩ 244,467... ₩   1,883,354 1. Include the sale of subsidiaries' receivables as of December 31, 2007 and 2006...
  • Page 125
    ... 86,296 ₩ 127,143 ₩ 406,364 ₩ 356,168 ₩ 4,395,838 ₩ 4,842,841 ₩ 92,145 ₩ 94,321 ₩ 462,717 ₩ 473,930 Samsung electronics annual report 2007 123
  • Page 126
    ... won) Seller Purchaser 2007 Sales Receivables 2006 2007 2006 ₩ ₩ 415,381 ₩ 413,178 Samsung SDI Co., Ltd.... millions of Korean won) Others Samsung Corporation iMarketKorea Inc. Samsung Life Insurance Co., Ltd. Sales 2007 2006 62,371 62,796 ...
  • Page 127
    ... Card Co., Ltd. a domestic subsidiary, purchased defined benefit pension plan from Samsung Life Insurance Co., Ltd. (Note 16). As of ... officers who have the authority and responsibility in the planning, directing and controlling of Company operations. Samsung electronics annual report 2007 125
  • Page 128
    ...millions of Korean won and foreign currencies in thousands) Foreign Companies Domestic Companies 2007 2006 Account Foreign Foreign Currency Korean ...561,432 EUR 451,097 Others 2,836,363 Trade accounts and US$ 1,458,416 notes receivable...
  • Page 129
    ... date. Foreign currency translation gains and losses for the year ended December 31, 2007, amounted to ₩128,577 million and ₩122,597 million, respectively. Samsung electronics annual report 2007 127
  • Page 130
    ...Balance Sheets by Industry Non-financial Business Financial Business 2007 2006 2007 2006 96,090,565 69,940,425 17,...₩ ₩ The above consolidated financial statements of the non-financial business include the financial service subsidiary which is accounted for using the equity method.
  • Page 131
    ... profit of each segment is inclusive of all consolidation eliminations. The presentation and classification of 2006 was revised for comparability with 2007 presentation. Samsung electronics annual report 2007 129
  • Page 132
    ... Geographic Area Korea Domestic Export Gross sales Intersegment sales Net sales Americas Europe Asia China Elimination Consolidated ...Intersegment sales Net sales Operating profit Total assets Americas Europe Asia China Elimination Consolidated ...
  • Page 133
    ...Financial Statements The consolidated financial statements as of and for the year ended December 31, 2007, were approved by SEC's Board of Directors on March 4, 2008. Samsung electronics annual report 2007 131
  • Page 134
    Investor Information SHARES Samsung Electronics shares are traded on the Korea Exchange under code "005930" for common stock and "005935" for p re f e r re d s t o c k . A s o f D e c e m b e r 3 1 , 2 0 0 7 , t h e re w e re 147,299,337 common and 22,833,427 preferred shares issued and ...
  • Page 135
    ...-gu Seoul 100-742 Korea Tel: 82-2-751-7114 Fax: 82-2-727-7892 www.samsung.com China Samsung Electronics China Headquarters 23/F China Merchants Tower No.2, Dong Huan Nan Lu, ... 94-1, Imsu-dong, Gumi Gyeongsangbuk-do Tel: 82-54-479-5114 Fax: 82-54-479-5058 Samsung electronics annual report 2007 133
  • Page 136
    ASIA PACIFIC China Samsung Electronics Huizhou Company (SEHZ), Huizhou Tel: 86-...: 86-512-6253-8988 (6688) Samsung Electronics Suzhou LCD Co., Ltd.... Samsung Electronics Company (TTSEC), Tianjin Tel: 86-22-2396-1234 China ...-672-1000 SALES NETWORK ASIA PACIFIC Australia Samsung Electronics Australia Pty...
  • Page 137
    ...Shenyang (SESY), Shenyang Tel: 86-24-2281-3838 Hong Kong Samsung Electronics H.K. Co., Ltd. (SEHK), Hong Kong Tel: 852-2862-6300(6900) India Samsung India Electronics Ltd. (SIEL), ... Kazakhstan LLP (SEK), Almaty Tel: 7-3272-585-965 Samsung electronics annual report 2007 135
  • Page 138
    ...: 213-21-59-1029~30 Tunisia Samsung Electronics Co., Ltd. Tunis Office Tel:...57-1-642-0555 Panama Samsung Electronics Latino America S.A. (SELA), Panama City Tel: 50-7-210-1122 Peru Samsung Electronics Co., Ltd...: 905-542-3535 Mexico Samsung Electronics Mexico S.A. de C.V. (SEM), Mexico City Tel: 52-55-...
  • Page 139
    Published by Samsung Electronics Produced by Cheil Communications Created by The Third Age www.samsung.com
  • Page 140


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  • Samsung 2007 Annual Report - Page 1
    2007 Samsung electronics annual report
  • Samsung 2007 Annual Report - Page 2
    ... networks digital appliance semiconductor LCD 34 38 42 46 50 thinking more of you corporate citizenship co-prosperity green management financial statements investor information global network 56 58 60 63 130 131
  • Samsung 2007 Annual Report - Page 3
    ... Highlights Samsung Electronics and Consolidated Subsidiaries [in billions of KRW ] Income Statement Sales ... 2006 85,426 9,008 7,926 2007 98,508 8,973 7,421 Balance .... All the financial data in this report comes from the consolidated financial statements. Samsung electronics annual ...
  • Samsung 2007 Annual Report - Page 4
    ... millions of KRW ] 26.5 17.7 Digital Media 0.7 2006 20.8 2005 2006 2007 1.06 Net sales Operating profit (loss) \ 17,656...KRW ] 2006 2007 [in millions of KRW ] 2005 2006 2007 Digital Appliance 5.6 5.5 6.9 Net sales \ 5,617,708 (29,102) \ 5,538,837 (71,213) \ 6,854,578 ...
  • Samsung 2007 Annual Report - Page 5
    ... for a sixth consecutive year. In ongoing efforts to enhance our leadership, we also have begun mass producing the world's first touch-screen-enabled LCD. Samsung electronics annual report 2007 03
  • Samsung 2007 Annual Report - Page 6
    Message from the CEO By increasing management prowess and embracing innovation at every opportunity, Samsung Electronics will become one of the most profitable and most revered global companies.
  • Samsung 2007 Annual Report - Page 7
    ..., we focused on increasing our R&D workforce to strengthen its future contribution to our company and, as a result, the number of R&D engineers reached 39,000. Samsung electronics annual report 2007 05
  • Samsung 2007 Annual Report - Page 8
    ... the prospect of high added value in such segments as printers, System LSI, and Mobile WiMAX. To capitalize on the rapid growth of emerging markets, we will develop locally customized products and implement a much higher level of differentiated ...
  • Samsung 2007 Annual Report - Page 9
    SALES REVENUE BY DIVISION [As of the end of 2007] 25% 23% Digital Media Telecommunication Networks Digital... company, admired by customers worldwide. I would like to welcome the encouragement and support of customers ... Officer Samsung Electronics Co., Ltd. Samsung electronics annual report 2007 07
  • Samsung 2007 Annual Report - Page 10
    ... and sound management. Samsung Electronics has enthusiastically established a global standard of corporate ...company stock. We also organized our third Analyst Day to help our investors ... an unparalled global electronics leader, actively practicing creative management with consistent innovation in our ...
  • Samsung 2007 Annual Report - Page 11
    ... of Technology [2005-May 2008] •  Vice Chairman, Global Collaboration, Samsung Electronics Co., Ltd CEO, Samsung Advanced Institute of Technology [2004-... [2003-2005] • Chairman, Korean Human Resources Management Institute [2002-2003] • Samsung electronics annual report 2007 09
  • Samsung 2007 Annual Report - Page 12
    ...the previous year. We have continued our first-mover status in global market share since we first achieved the world-leading sales revenue mark in 2002. The Best Smartphone of CTIA 2007 S a m s u n g's B l a c k J a c k II wa s h o n o re d a ...
  • Samsung 2007 Annual Report - Page 13
    ...-chip RFID reader for C mobile devices for the first time  urpassed monthly US$2 billion LCD panel S sales total for the first time • • • • Samsung electronics annual report 2007 11
  • Samsung 2007 Annual Report - Page 14
    ... in today's market. To stay relevant in this ever-changing world, we must keep one step ahead of our customers. That's why we have dedicated ourselves to exceed the needs of our customers through the production and sale of world-class products and, most importantly, by ...
  • Samsung 2007 Annual Report - Page 15
    ahead of you Samsung electronics annual report 2007 13
  • Samsung 2007 Annual Report - Page 16
    thinking North America _ Samsung Electronics' premium products-all built with the latest in cutting-edge technology- are loved by consumers across North ... digital TV, smart phone, music phone, video MP3 player, side-by-side refrigerator and drum washing machine. Supported by a...
  • Samsung 2007 Annual Report - Page 17
    ... high image quality of our LCD TV with the latest Blu-ray player. And, watch your favorite movies for the first time as a completely new, high definition experience. Samsung electronics annual report 2007 15
  • Samsung 2007 Annual Report - Page 18
    thinking Europe _ Satisfying our European customers' sophisticated sensibilities is a top priority. Our premium products include the TOC monitor, Armani TV, J-Series refrigerator by Jasper Morrison, and a ... and stylish design, our innovative premium products will increase customer loyalty and pave ...
  • Samsung 2007 Annual Report - Page 19
    .... b Monitor (T260) Our beautifully designed monitors provide you with the power and features to help drive your business well into the future. c...(SGH-i617) Boost productivity whether you're in the office or on the road with the award-winning BlackJack II. Samsung electronics annual report 2007 17
  • Samsung 2007 Annual Report - Page 20
    thinking Emerging Markets _ The dynamic growth in emerging markets, including China, is a major opportunity for Samsung Electronics. With aggressive marketing and locally customized products, including digital media, mobile phones and home appliances, we are providing a ...
  • Samsung 2007 Annual Report - Page 21
    ... trend in washing machines is our silent, but powerful, drum washing machine. From an attractive design to top-notch performance, this washing machine has it all. Samsung electronics annual report 2007 19
  • Samsung 2007 Annual Report - Page 22
    thinking thinking
  • Samsung 2007 Annual Report - Page 23
    ... of customers worldwide, which will propel our company and our brand well into the future. company in its annualInfo Tech 100. company in its annualInfo Tech 100. Samsung electronics annual report 2007 21
  • Samsung 2007 Annual Report - Page 24
    ... activities through systematic cooperation with leading global brands. Strategic marketing and technology alliance with Time Warner Samsung Electronics partnered with Time Warner Cable, the second largest cable company in the U.S., to sell its TVs ...
  • Samsung 2007 Annual Report - Page 25
    ...our customers. Providing a Wide Range of Benefits for Worldwide Tourists Outstanding displays by Samsung Electronics ... technology. Samsung Experience at Time Warner Center in New York City Located in New... the most beloved brand in the world. M arketing Samsung electronics annual report 2007 O ffice...
  • Samsung 2007 Annual Report - Page 26
    ... category, we supplied cutting-edge mobile devices, starting with the 2004 Athens Summer Games, to assist successful management of the event. During ... club sponsor of the Chelsea Football Club, Samsung Electronics will play a key part in its global development. Both brands share the same passion for ...
  • Samsung 2007 Annual Report - Page 27
    ... lobal H 2008 Beijing Olympic Sponsorship Event Samsung Electronics has been a proud sponsor of the Olympic Games since 1998, and is pleased to ... our passion with the world and contribute to the betterment of society. er ,C orporate Samsung electronics annual report 2007 Communications Team 25
  • Samsung 2007 Annual Report - Page 28
    ...capability is critical for Samsung Electronics' continued march toward becoming a leading global company. Through ...within one or two years. Samsung Electronics operates six R&D centers in Korea and a total... of our customers. At the end of 2007, 39,000 people were involved in the development of Samsung...
  • Samsung 2007 Annual Report - Page 29
    ... paper (e-paper), delivering undistorted images even when the surface is bent. This flexible display does not require any electricity. 14.3-inch e-paper b c c Samsung electronics annual report 2007 27
  • Samsung 2007 Annual Report - Page 30
    a b
  • Samsung 2007 Annual Report - Page 31
    ... built-in Content Library. YP-S5 MP3 Player At only 14.9mm thick, the YP-S5 is an extremely portable multimedia device. Its full color screen makes .... The device attaches to a mobile network connection and is designed to enhance coverage for the home. b c Samsung electronics annual report 2007 29
  • Samsung 2007 Annual Report - Page 32
    ... comes fully equipped with a five megapixel camera and a 3.2-inch, 16:9 wide touch screen. Plus, it is built with Samsung's award-winning Croix user interface, enabling greater convenience and ease of use. Ultra Edition 10.9, SGH-U600 The ...
  • Samsung 2007 Annual Report - Page 33
    ... era of digital convergence. Global Design Network to Satisfy Every Customer Samsung Electronics operates seven design centers: the Corporate Design Center in Seoul along with centers in ... Se [W ni or ireless D es i Unit gn er ], Corporate Samsung electronics annual report 2007 Design 31 Center
  • Samsung 2007 Annual Report - Page 34
    ... be a given. thinking Like modern-day pioneers, Samsung Electronics has opened doors to new worlds through our innovative products and our ... fostering more strategic alliances, and delivering an unrivaled customer experience, Samsung has catapulted itself to the forefront of efforts ...
  • Samsung 2007 Annual Report - Page 35
    smarter for you Samsung electronics annual report 2007 33
  • Samsung 2007 Annual Report - Page 36
    digital media
  • Samsung 2007 Annual Report - Page 37
    ... products, such as LCD monitors, digital audio-visual products, laser printers and notebook PCs. Sales increased to KRW26.51 ... dominance of the flat panel TV market helped us to maintain No. 1 market share in both sales revenue and units sold for two consecutive years and seven consecutive quarters, ...
  • Samsung 2007 Annual Report - Page 38
    .... In 2007, we ranked No. 1 in the global LCD monitor market and were selected as the best U.S. monitor brand for the fifth year in a...(UMPC), and a Blu-ray-enabled notebook PCs, we will penetrate the emerging markets of China, Eastern Europe and the Commonwealth of Independent States (CIS, the former ...
  • Samsung 2007 Annual Report - Page 39
    ... of the Year" in the Display Technology category of the VARBusiness Annual Report Card (ARC), recognizing Samsung's innovation, partnership relationships and... According to DisplaySearch, Samsung Electronics remained the global leader in the world TV market, both in sales revenue and units sold, as of...
  • Samsung 2007 Annual Report - Page 40
    telecommunication networks
  • Samsung 2007 Annual Report - Page 41
    ... included. 2006 2007 2.76 1.93 2006 2007 GLOBAL MOBILE PHONE MARKET SHARE IN 2007 [KRW trillion] SALES [KRW hundreds of billion]... a steady flow of new customers into emerging markets, according to Strategy Analytics, a market research firm. In Korea, the market surged 25%...
  • Samsung 2007 Annual Report - Page 42
    .... Fashioning the Mobile Customer Worldwide Launching premium products, as well as rapidly penetrating emerging markets, enabled Samsung Electronics to become world's second-largest mobile phone maker last year. Following this strategy, we ...
  • Samsung 2007 Annual Report - Page 43
    ... such as mobile blogging, and a web browser. Ultimate Choice for Mobile Lifestyles In 2008, the global mobile phone market is expected to slow, due to ... will further bolster our mobile communication brand as the industry takes mobility to the next level. Samsung electronics annual report 2007 41
  • Samsung 2007 Annual Report - Page 44
    digital appliance
  • Samsung 2007 Annual Report - Page 45
    .... In Korea, we also placed first in the 2007 National Customer Satisfaction Index (NCSI) in the refrigerator, washing machine and air conditioner categories. Samsung electronics annual report 2007 43
  • Samsung 2007 Annual Report - Page 46
    ...Korea in 1997, Samsung Electronics has led the premium refrigerator market, debuting such innovations ... refrigerators its "Highest Customer Satisfaction" rating for the third straight year. In 2008, Samsung Electronics'... efforts in emerging markets such as China, Central Asia and the CIS countries. We...
  • Samsung 2007 Annual Report - Page 47
    .... Less water consumption Less energy consumption 25% 20% Robot Vacuum Cleaner Samsung's innovative robot vacuum enables faster and more efficient cleaning, with a...function to the conventional oven, grill and microwave, as well as dry heat and fermenting. Samsung electronics annual report 2007 45
  • Samsung 2007 Annual Report - Page 48
    semiconductor
  • Samsung 2007 Annual Report - Page 49
    ... with continued market dominance in most areas of the memory business, including strong sales in DRAM, SRAM, MCPs, flash memory and fusion memory devices. Samsung electronics annual report 2007 47
  • Samsung 2007 Annual Report - Page 50
    ... became the first company to mass produce 16Gb NAND Flash memory chips-the largest capacity on the market today. This ...previous industry leader, GDDR4. Unwavering Memory Leadership In 2007, Samsung Electronics easily held on to its No. 1 position in the memory industry with 28% overall market share. ...
  • Samsung 2007 Annual Report - Page 51
    ... LSI Division solidified a strong base for further growth by increasing sales of Display Drive ICs (DDIs), CMOS image sensors and media player chips. Specific ... them lighter, more durable, quieter, and more energy efficient. Samsung electronics annual report 2007 49
  • Samsung 2007 Annual Report - Page 52
    LCD
  • Samsung 2007 Annual Report - Page 53
    ... in a wide variety of applications. In 2007, Samsung Electronics was ranked No. 1 in display panels for TVs, desktop monitors and notebook PCs, achieving a ... consecutive years, ensuring our continued leadership in the LCD industry. Samsung electronics annual report 2007 51
  • Samsung 2007 Annual Report - Page 54
    ...- and Mid-sized Panels We are producing a wide range of AMOLED sizes for premium mobile multimedia devices. The displays use Samsung's proprietary amorphous silicon gate technology and their production has reduced the mobile panel circuitry footprint ...
  • Samsung 2007 Annual Report - Page 55
    ... of next-generation display panels and thin-film solar cells. With such aggressive expansion efforts, we will consolidate our status as the world's leading LCD producer. Samsung electronics annual report 2007 53
  • Samsung 2007 Annual Report - Page 56
    ... local communities through corporate social responsibility and co-prosperity initiatives. Samsung has also remained steadfast when it comes to supporting education initiatives, helping of the disadvantaged and efforts to stop the ...
  • Samsung 2007 Annual Report - Page 57
    more of you Samsung electronics annual report 2007 55
  • Samsung 2007 Annual Report - Page 58
    ... value. In 1995, Samsung Electronics launched the Social Contribution Corps to encourage employees to participate in community service. In 2006, ..., One Village Sisterhood Ties" for helping farming communities, in addition to offering computer training for the blind. Samsung Running Festival Linking ...
  • Samsung 2007 Annual Report - Page 59
    ... disease prevention campaign. Sharing Love and Hope around the World Samsung Electronics' social contribution work extends beyond our ... communities they served. In 2007, the Guangming Daily awarded Samsung Electronics, for the third year in a row, with one of its Public Benefit Prizes in recognition ...
  • Samsung 2007 Annual Report - Page 60
    ... their ability to improve business management controls internally by sharing transaction information with Samsung Electronics in real time. In addition, ...at the right time at the right price, paving the way for win-win partnerships. Samsung Partners' Day The annual Samsung Partners' Day was held in ...
  • Samsung 2007 Annual Report - Page 61
    ... days by 30% and bookkeeping time by 50%. 2007 Innovation Case Studies of Partner Companies On November 15, 2007, we organized our "Innovation Case ... ideas to sharpen our mutual leadership in technology while enhancing the cohesiveness of our partnerships. Samsung electronics annual report 2007 59
  • Samsung 2007 Annual Report - Page 62
    ... certification continues to expand worldwide. Eco-partner Certification Program In 2004, Samsung Electronics established the Eco-partner Certification Program to manage hazardous substances... have taken steps to promote eco-friendly supply chain management, operate recycling centers that...
  • Samsung 2007 Annual Report - Page 63
    ...an active leader of environment initiatives to address global warming, Samsung Electronics introduced the "Catch CO2 Project" in 2002, a voluntary initiative to reduce our ... on our product-related environmental policies .and programs. Samsung electronics annual report 2007 61
  • Samsung 2007 Annual Report - Page 64
  • Samsung 2007 Annual Report - Page 65
    ...Flows Consolidated Five-year Financial Summary 66 68 69 73 75 Notes to the Consolidated Financial Statements 77 Investor Information Global Network 132 133 Samsung electronics annual report 2007 63
  • Samsung 2007 Annual Report - Page 66
    ... sheets of Samsung Electronics Co., Ltd. and its subsidiaries (collectively referred to as the "Company") as of December ...We did not audit the financial statements of Samsung Card Co., Ltd. and certain... 18 to the accompanying consolidated financial statements, Samsung Electronics Co., Ltd. ("SEC") and...
  • Samsung 2007 Annual Report - Page 67
    ... should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any. Samsung electronics annual report 2007 65
  • Samsung 2007 Annual Report - Page 68
    ...Short-term financial instruments (Note 4) Short-term available-for-sale securities (Note 5) Short-term held-to-maturity securities (Note 5) Trade accounts and notes receivable, net of allowance for doubtful accounts (Note ...
  • Samsung 2007 Annual Report - Page 69
    ... dollars (Note 3)) Liabilities and Shareholders' Equity Current liabilities Trade accounts and notes payable Short-term borrowings (Note 13)... $ 86,744,356 The accompanying notes are an integral part of these consolidated financial statements. Samsung electronics annual report 2007 67
  • Samsung 2007 Annual Report - Page 70
    ... Income Years Ended December 31, 2007 and 2006 (In millions of Korean won and in thousands of U.S. dollars (Note 3)) SALES (Note 27) Cost of sales (Note 27) Gross profit Selling, general and administrative expenses Operating profit Non-Operating Income Interest...
  • Samsung 2007 Annual Report - Page 71
    ...,574 20,082 355,350 ₩ 897,514 ₩ 6,364,604 ₩ (6,994,210) ₩ 532,820 ₩ 44,463,683 ₩ 2,675,456 ₩ 47,939,867 continued Samsung electronics annual report 2007 69
  • Samsung 2007 Annual Report - Page 72
    ...Shareholders' Equity Years Ended December 31, 2007 and 2006 (In millions of Korean won)...stock Disposal of treasury stock Stock options Gain on valuation of available-for-sale securities Loss on valuation of available-for-sale securities Gain on valuation of equity-method investments Loss...
  • Samsung 2007 Annual Report - Page 73
    ... 378,838 $  956,838 $   6,785,292 $ (7,456,514) $  568,038 $ 47,402,647 $  2,852,299 $ 51,108,600 continued Samsung electronics annual report 2007 71
  • Samsung 2007 Annual Report - Page 74
    ...' Equity Years Ended December 31, 2007 and 2006 (In thousands of U.S. dollars (Note ... stock Disposal of treasury stock Stock options Gain on valuation of available-for-sale securities Loss on valuation of available-for-sale securities Gain on valuation of equity-method investments Loss ...
  • Samsung 2007 Annual Report - Page 75
    ...,398 (1,646,130) 3,028,477 (1,842,360) 564,016 3,718,317 (3,718,158) (1,754,936) 3,228,654 (1,964,136) 601,296 3,964,091 (3,963,921) continued Samsung electronics annual report 2007 73
  • Samsung 2007 Annual Report - Page 76
    ... property, plant and equipment Acquisition of property, plant and equipment Proceeds from sale of long-term available-for-sale ... Acquisition of treasury stock Others Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in...
  • Samsung 2007 Annual Report - Page 77
    ... 70 520 0 9,828 11.5% 1,634 (268) 7,926 9.3% 2007 98,508 70,881 27,627 28% 18,654 8,973 9.1% 660 171 378 0 9,633 9.8% 1,710 (502) 7,421 7.5% continued Samsung electronics annual report 2007 75
  • Samsung 2007 Annual Report - Page 78
    ... 0.09 1.10 1.74 30.2% 9.8% 52,880 2007 14.3% 0.08 1.13 1.68 25.9% 4.8% 49,502 The numbers are adjusted for the latest change in Korean GAAP and thus may be different from those in audited financial statements. Financial sectors are included in the ...
  • Samsung 2007 Annual Report - Page 79
    ... and sell semiconductors, LCD, telecommunication products, digital appliances and digital media products. SEC's shares of stock are publicly traded, and all issued and outstanding shares are listed on the Korea Stock Exchange. As of December 31, ...
  • Samsung 2007 Annual Report - Page 80
    ...) Manufacturing and sale of electronic goods Samsung Telecommunications America, LLC (STA) Mobile phone sales and research and development Samsung Electronics Latinoamerica (...of SEC's domestic subsidiaries, has listed its issued and outstanding shares on the Korea Stock Exchange.
  • Samsung 2007 Annual Report - Page 81
    ... (SER) Marketing Samsung Electronics Polska Sp.zo.o. (SEPOL) Samsung Electronics South Africa (Pty) Ltd. (SSA) Sale of electronic goods ...South Africa 100.00 Slovakia continued Samsung Electronics Slovakia s.r.o. (SESK) Monitor manufacturing Samsung electronics annual report 2007 79
  • Samsung 2007 Annual Report - Page 82
    ... (SEO) LLC Samsung Electronics Rus Company (SERC) LLC Samsung Russia Service Center (... Institute (SYRI) Research center Samsung Electronics (M) Sdn.Bhd. (SEMA) Home appliances manufacturing ....00 100.00 100.00 Samsung Electronics Display (M) Sdn.Bhd. (SDMA) Monitor manufacturing ...
  • Samsung 2007 Annual Report - Page 83
    (In millions of Korean won) Subsidiaries Samsung Electronics Hong Kong Co., Ltd. (SEHK) ...(SSS) Semiconductor sales Samsung Semiconductor (China) R&D Co., Ltd. (SSCR) Research center Samsung Electronics Hainan ... 100.00 China 70.00 China Samsung electronics annual report 2007 81
  • Samsung 2007 Annual Report - Page 84
    ... financial statements follows: (In millions of Korean won) Subsidiaries Assets Liabilities Samsung Gwangju Electronics Co... Asia Private Ltd. (SAPL) Samsung Electronics Hong Kong Co., Ltd. (SEHK) Samsung Electronics Taiwan Co., Ltd. (SET) Samsung (China) Investment ...
  • Samsung 2007 Annual Report - Page 85
    ... R&D Center Research Samsung Electronics China R&D Center Research Samsung Electronics Shenzhen Co., Ltd. Semiconductor sales In accordance with consolidation ... Name of Subsidiaries Remark Korea Bluetek Co., Ltd. Liquidation completed Samsung electronics annual report 2007 83
  • Samsung 2007 Annual Report - Page 86
    ... (Financial Industry), Samsung Card Co., Ltd., one of SEC's domestic subsidiaries, changed its account classification.... share. A s e x p l a i n e d i n N o t e 2 4 , i n a c c o rd a n c e w i t h t h e K o r e a Accounting Institute Opinion 06-2 announced on December 29, 2006, the Company changed ...
  • Samsung 2007 Annual Report - Page 87
    ...if any. The remainder may be credited to other capital surplus or transferred to common stock. A new basis for calculating depreciation is established for revalued assets. Samsung electronics annual report 2007 85
  • Samsung 2007 Annual Report - Page 88
    ... is deposited with the National Pension Fund and deducted from the accrued severance benefits liability. Revenue Recognition Sales of products and merchandise are recognized upon delivery when the significant risks and rewards of ownership of the ...
  • Samsung 2007 Annual Report - Page 89
    ... abrupt decline in the market value of the asset, the decline in value is deducted from the book value and recognized as an asset impairment loss in the current period. Samsung electronics annual report 2007 87
  • Samsung 2007 Annual Report - Page 90
    ... States Dollar Amounts The Company operates primarily in Korean won and its official accounting records are... Government-sponsored research and development projects Other activities Long-term financial ... Short-term available-for-sale securities as of December 31, 2007 and 2006, consist of...
  • Samsung 2007 Annual Report - Page 91
    ... of December 31, 2007 and 2006, consist of the following: (In millions of Korean won) Government and public bonds ₩ 2007 130 ₩ 2006 248 Samsung electronics annual report 2007 89
  • Samsung 2007 Annual Report - Page 92
    ... 31, 2007 and 2006, are as follows: (In millions of Korean won) Trade accounts and...,837 As a consolidation entry to account for the sale of subsidiaries' receivables, the Company has recognized borrowings... recourse ₩ 2007 4,037,885 ₩ 2006 4,002,923 From 2003 to 2005, Samsung Card...
  • Samsung 2007 Annual Report - Page 93
    ...). 8. FINANCING RECEIVABLES Financing receivables of the consumer financing subsidiary, Samsung Card Co., Ltd., as of December 31, 2007 and 2006, are as follows: (In millions of ...,802 624,094 352,049 606,330 247,291 4,255,566 (449,031) 3,806,535 8,393,507 Samsung electronics annual report 2007 91
  • Samsung 2007 Annual Report - Page 94
    ...31, 2007, follows: (In millions of Korean won) Year 2008 2009 2010 2011 2012...,158 355,351 As of December 31, 2007 and 2006, properties under operating... as follows: (In millions of Korean won) Automobiles Electronic system Less: Accumulated depreciation Accumulated...
  • Samsung 2007 Annual Report - Page 95
    ... investments would not be recoverable, and recorded an impairment loss of ₩13,349 million under non-operating expenses for the year ended December 31, 2006. Samsung electronics annual report 2007 93
  • Samsung 2007 Annual Report - Page 96
    ...number of shares and percentage) 2007 Number of Shares Owned Related parties Samsung Petrochemical Co., Ltd. 514,172 Samsung General... International Cyber Marketing, Inc 1 Samsung Everland Co., Ltd. 1 Allat Corporation1 LLC Samsung Electronics Rus Kaluga1...
  • Samsung 2007 Annual Report - Page 97
    ... Co., Ltd. declined significantly, the difference between the book value and recoverable amount amounting to ₩20,700 million was charged to impairment loss. Samsung electronics annual report 2007 95
  • Samsung 2007 Annual Report - Page 98
    ... Inc. Samsung Lions Co., Ltd. MEMC Electronic Materials Korea, Inc. Samsung Corning Precision Glass Co., Ltd. ...Telecommunication Equipments Manufacturing Establishment Co., Ltd. Shanghai Bell Samsung Mobile Communications Co., Ltd. eSamsung Greater China Co., Ltd. TSST...
  • Samsung 2007 Annual Report - Page 99
    ... - - 294 49.00 49.00 49.03 ₩ 2,061 7,742 150,451 1,911,229 3,683 4,458 19,926 ₩ 3,445,782 3,356 3,233 50,518 ₩ 3,393,617 Samsung electronics annual report 2007 97
  • Samsung 2007 Annual Report - Page 100
    ... Seoul Commtech Co., Ltd Samsung Corning Precision Glass Co., Ltd. eSamsung Greater China Co., Ltd. TSST... ₩ (11,040) Samsung Corning Precision Glass Co., Ltd. Shanghai Bell Samsung Mobile Communications Co., Ltd. Others ₩   6,593 ₩   (...
  • Samsung 2007 Annual Report - Page 101
    ...,614 49,285 3,224 178,123 79,187 44,981 1,446 125,614 Samsung Corning Co., Ltd. 233,484 (53,220) (180,264) - ... 3,393,617 ₩ 377,626 ₩ 11,170 ₩ 3,782,413 ₩ 2,923,314 ₩ 519,661 ₩   Samsung electronics annual report 2007 99
  • Samsung 2007 Annual Report - Page 102
    ... Investee Assets Liabilities Sales Assets Liabilities Sales Net Income Samsung SDI ₩ 4,907,...22,489 Market value information of publicly listed investees as of December 31, 2007 and ..., which are included in the shareholders' equity. On December 28, 2007, Samsung Corning Co., Ltd. merged ...
  • Samsung 2007 Annual Report - Page 103
    ... Cyber Marketing ² America Content Management License Administrator LLC ² Asia Samsung Electronic Ticaret A.S. ² Future Technology & Service Corporation ² SSJ Vina ...(6,696,162) 11,932 (242,078) ₩ 1,166,098 ₩ 33,784,615 Samsung electronics annual report 2007 101
  • Samsung 2007 Annual Report - Page 104
    ... with the Asset Revaluation Law, on October 1, 2000, Samsung Gwangju Electronics Co., Ltd., an SEC subsidiary, revalued a portion of its property, plant and equipment by...₩ 3,654,206 million). As of December 31, 2007 and 2006, Samsung Card Co., Ltd., an SEC subsidiary, recorded ...
  • Samsung 2007 Annual Report - Page 105
    ... (2006: ₩1,557,976 million) and current maturities of long-term debts of ₩1,933,885 million (2006: ₩2,722,010 million) as of December 31, 2007. Samsung electronics annual report 2007 103
  • Samsung 2007 Annual Report - Page 106
    ... of the following: (In millions of Korean won) Annual Interest Rates (%) as of December 31, 2007 Korea Energy Management Corporation Samsung Shinhan 4th Special Purpose Company Shinhan Bank and others 4.5 - 5.8 ~ 6.1 ₩ ...
  • Samsung 2007 Annual Report - Page 107
    ...,371 4,831 64,303 497,260 ₩ 1,455,000 890,000 370,000 10,000 - 2,725,000 ₩ 1,752,645 1,611,300 400,199 17,261 64,303 3,845,708 Samsung electronics annual report 2007 105
  • Samsung 2007 Annual Report - Page 108
    ...at 7.7% per annum and will mature on October 1, 2027, with repayments to be made annually for 20 years after a ten-year grace period from the ... of issuance. (B) US dollar floating rate notes US dollar floating rate notes issued by Samsung Card Co., Ltd., one of SEC's domestic subsidiaries, will ...
  • Samsung 2007 Annual Report - Page 109
    ... currency exchange rates. As of December 31, 2007, the Company funded 60.7% of severance payable through severance insurance deposits with Samsung Life Insurance Co., Ltd. and Samsung...,328 455,848 134,440 1,638 - - 929,077 1,342,932 39,145 146,875 Samsung electronics annual report 2007 107
  • Samsung 2007 Annual Report - Page 110
    ...liable for guarantees amounting to $21.6 million undertaken by Citi Bank relating to the guarantees for Samsung Electronics Latinoamerica (Zona Libre), S.A., one.... As of December 31, 2007, SEC is providing a US$25 million guarantee for Samsung Electronics Hungarian RT. Co., Ltd. relating to ...
  • Samsung 2007 Annual Report - Page 111
    ...Insurance Corporation. ( G) As of December 31, 2007, the Company has forward exchange contracts to manage the exposure to changes in currency exchanges rates in accordance with its ...the impact of changes in the fair-value risk on fixed rate long-term debt. Samsung electronics annual report 2007 109
  • Samsung 2007 Annual Report - Page 112
    ...Ltd., Wistron Corporation, International Printer Corp., Premier International Associates, LLC., Saxon Innovations, LLC., Innovative... mentioned above and various other claims and proceedings pending as of December 31, 2007, the Company's management believes that, although the outcome of these matters ...
  • Samsung 2007 Annual Report - Page 113
    ... for bank borrowings and for the fulfillment of certain contracts, which do not have a direct adverse effect on the operations or financial position of the Company. Samsung electronics annual report 2007 111
  • Samsung 2007 Annual Report - Page 114
    Notes to the Consolidated Financial Statements continued (N) A domestic subsidiary of the Company, Samsung Card Co., Ltd. ..., subject to the Board of Directors' approval, to issue shares of common or preferred stock to investors other ... Number of Shares of GDR 7,695,272 4,251,339 15,390,544 8,502,...
  • Samsung 2007 Annual Report - Page 115
    ..., the Regulation was amended and as result the Company is no longer required to further accumulate reserve and removed the restrictions on the usage of the existing reserve. Samsung electronics annual report 2007 113
  • Samsung 2007 Annual Report - Page 116
    ... stock Preferred stock 2007 (In millions of Korean won and number of shares) 2006 128,758,... Stock Common Stock Preferred Stock Dividend per share Market price 1 Dividend yield ratio... 486,000 1.14% 1. The average closing price for the prior week from two trading days before closing...
  • Samsung 2007 Annual Report - Page 117
    ...periods. As of December 31, 2007, Samsung Card Co,. Ltd., a domestic subsidiary, has granted 120,472 shares including 45,472 shares, which ... to SEC's ownership ratio are included in a separate component of shareholders' equity as other capital adjustments. Samsung electronics annual report 2007 115
  • Samsung 2007 Annual Report - Page 118
    ...to the Consolidated Financial Statements continued 24. Income Tax The statutory income tax rate applicable to the Company, including resident surtax, is 27.5%. Income tax ... to the actual amount of taxes recorded by the Company for the years ended December 31, 2007 and 2006: (In ...
  • Samsung 2007 Annual Report - Page 119
    ... ₩ (399,886) (755,003) (1,456) (753,547 334,032 ₩ 1,533,307 ₩ (1,199,275) 306,323 791,219 20,090 787,929 286,233 3,290 Samsung electronics annual report 2007 117
  • Samsung 2007 Annual Report - Page 120
    ...308) (352,809 632,899 ₩ 1,462,134 ₩ (829,235) The Company periodically assesses its ability to recover deferred income tax assets. In the event of a significant uncertainty regarding the Company's ultimate ability to recover such assets, a valuation allowance ...
  • Samsung 2007 Annual Report - Page 121
    ...,117) (7,394) In accordance with the Korea Accounting Institute Opinion 06-2 announced on December 29, 2006, the Company changed its method of recognizing deferred ..., have not been restated as permitted under the Korea Accounting Institute Opinion 06-2. Samsung electronics annual report 2007 119
  • Samsung 2007 Annual Report - Page 122
    ...and number of shares) Net income as reported on the statements of income Adjustments: Dividends for preferred stock...52,120 ₩ ₩ 1. Common equivalent shares: 2007 Number of shares Stock options 1,494,909 Weight Common Stock Equivalent 365/365 1,494,909 2006 Number...
  • Samsung 2007 Annual Report - Page 123
    ... 20,082 (156,147) (3,734) ₩ 9,541,679 ₩ 8,314,380 ₩ 8,763,144 ₩ 8,013,574 778,535 300,806 ₩ 9,541,679 ₩ 8,314,380 Samsung electronics annual report 2007 121
  • Samsung 2007 Annual Report - Page 124
    ..., are as follows: (In millions of Korean won) Sales Subsidiaries 2007 2006 SJC SLCD STA...179 418,026 5,689,401 1 Payables 2007 2006  164,459 ₩ 244,467... ₩   1,883,354 1. Include the sale of subsidiaries' receivables as of December 31, 2007 and 2006...
  • Samsung 2007 Annual Report - Page 125
    ... 86,296 ₩ 127,143 ₩ 406,364 ₩ 356,168 ₩ 4,395,838 ₩ 4,842,841 ₩ 92,145 ₩ 94,321 ₩ 462,717 ₩ 473,930 Samsung electronics annual report 2007 123
  • Samsung 2007 Annual Report - Page 126
    ... won) Seller Purchaser 2007 Sales Receivables 2006 2007 2006 ₩ ₩ 415,381 ₩ 413,178 Samsung SDI Co., Ltd.... millions of Korean won) Others Samsung Corporation iMarketKorea Inc. Samsung Life Insurance Co., Ltd. Sales 2007 2006 62,371 62,796 ...
  • Samsung 2007 Annual Report - Page 127
    ... Card Co., Ltd. a domestic subsidiary, purchased defined benefit pension plan from Samsung Life Insurance Co., Ltd. (Note 16). As of ... officers who have the authority and responsibility in the planning, directing and controlling of Company operations. Samsung electronics annual report 2007 125
  • Samsung 2007 Annual Report - Page 128
    ...millions of Korean won and foreign currencies in thousands) Foreign Companies Domestic Companies 2007 2006 Account Foreign Foreign Currency Korean ...561,432 EUR 451,097 Others 2,836,363 Trade accounts and US$ 1,458,416 notes receivable...
  • Samsung 2007 Annual Report - Page 129
    ... date. Foreign currency translation gains and losses for the year ended December 31, 2007, amounted to ₩128,577 million and ₩122,597 million, respectively. Samsung electronics annual report 2007 127
  • Samsung 2007 Annual Report - Page 130
    ...Balance Sheets by Industry Non-financial Business Financial Business 2007 2006 2007 2006 96,090,565 69,940,425 17,...₩ ₩ The above consolidated financial statements of the non-financial business include the financial service subsidiary which is accounted for using the equity method.
  • Samsung 2007 Annual Report - Page 131
    ... profit of each segment is inclusive of all consolidation eliminations. The presentation and classification of 2006 was revised for comparability with 2007 presentation. Samsung electronics annual report 2007 129
  • Samsung 2007 Annual Report - Page 132
    ... Geographic Area Korea Domestic Export Gross sales Intersegment sales Net sales Americas Europe Asia China Elimination Consolidated ...Intersegment sales Net sales Operating profit Total assets Americas Europe Asia China Elimination Consolidated ...
  • Samsung 2007 Annual Report - Page 133
    ...Financial Statements The consolidated financial statements as of and for the year ended December 31, 2007, were approved by SEC's Board of Directors on March 4, 2008. Samsung electronics annual report 2007 131
  • Samsung 2007 Annual Report - Page 134
    Investor Information SHARES Samsung Electronics shares are traded on the Korea Exchange under code "005930" for common stock and "005935" for p re f e r re d s t o c k . A s o f D e c e m b e r 3 1 , 2 0 0 7 , t h e re w e re 147,299,337 common and 22,833,427 preferred shares issued and ...
  • Samsung 2007 Annual Report - Page 135
    ...-gu Seoul 100-742 Korea Tel: 82-2-751-7114 Fax: 82-2-727-7892 www.samsung.com China Samsung Electronics China Headquarters 23/F China Merchants Tower No.2, Dong Huan Nan Lu, ... 94-1, Imsu-dong, Gumi Gyeongsangbuk-do Tel: 82-54-479-5114 Fax: 82-54-479-5058 Samsung electronics annual report 2007 133
  • Samsung 2007 Annual Report - Page 136
    ASIA PACIFIC China Samsung Electronics Huizhou Company (SEHZ), Huizhou Tel: 86-...: 86-512-6253-8988 (6688) Samsung Electronics Suzhou LCD Co., Ltd.... Samsung Electronics Company (TTSEC), Tianjin Tel: 86-22-2396-1234 China ...-672-1000 SALES NETWORK ASIA PACIFIC Australia Samsung Electronics Australia Pty...
  • Samsung 2007 Annual Report - Page 137
    ...Shenyang (SESY), Shenyang Tel: 86-24-2281-3838 Hong Kong Samsung Electronics H.K. Co., Ltd. (SEHK), Hong Kong Tel: 852-2862-6300(6900) India Samsung India Electronics Ltd. (SIEL), ... Kazakhstan LLP (SEK), Almaty Tel: 7-3272-585-965 Samsung electronics annual report 2007 135
  • Samsung 2007 Annual Report - Page 138
    ...: 213-21-59-1029~30 Tunisia Samsung Electronics Co., Ltd. Tunis Office Tel:...57-1-642-0555 Panama Samsung Electronics Latino America S.A. (SELA), Panama City Tel: 50-7-210-1122 Peru Samsung Electronics Co., Ltd...: 905-542-3535 Mexico Samsung Electronics Mexico S.A. de C.V. (SEM), Mexico City Tel: 52-55-...
  • Samsung 2007 Annual Report - Page 139
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  • Samsung 2007 Annual Report - Page 140