Samsung 2009 Annual Report Download

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2009 SAMSUNG ELECTRONICS ANNUAL REPORT
ANNUAL REPORT
SAMSUNG
ELECTRONICS
2009

Table of contents

  • Page 1
    ... o rg a n i z e d . a f fo r d a bl e. d i f fe r e nt i at i n g . s t ri k i n g . pu rpos e f u l . functional. refined. wow. 2009 i n s i g ht f u l . c o oSAMSUNG l s i mpl e. ELECTRONICS ingenious. ANNUAL REPORT stylish. lasting. br i l l i a nt . handy. 2009 SAMSUNG ELECTRONICS ANNUAL REPORT

  • Page 2
    ... Relentless Passion Message from the CEO About the Board Inspire the World, Create the Future Business Overview Financial Statements Global Network Shareholders' Equity 01 02 10 14 16 28 39 94 CASH FLOWS Cash Flows from Operating Activities Cash Flows from Investing Activities Cash Flows from...

  • Page 3
    ... the world, people dream, communicate and update their stories of human history. At Samsung Electronics, we are finely tuned to tracking those next exciting leaps, to intuiting the change-agent shifts, to finding ways to make global citizens healthier and happier. Living life at full tilt, with...

  • Page 4
    .... INSIGHTFUL. WOW. REFINED. Every innovation must honor yesterday, meet today's demands and elegantly inform tomorrow. As a global trendsetter, Samsung Electronics harmonizes the sensitivities of the old and the new, balancing culture and technology, comfort and cutting-edge, the excitement...

  • Page 5
    ... REAL. UNEXPECTED. FRIENDLY. ARTISTIC. INVITING. BENEFICIAL. INCLUSIVE. REWARDING. In the new world of everheightened senses, where seeing, touching, feeling is expressed instantly, our shared memories shine with a vivid light. Samsung Electronics imbues technology with emotion so people's lives are...

  • Page 6
    IMAGINATIVE. CONTEMPORARY. OPTIMISTIC. PASSIONATE. EVERYONE. EVERYWHERE. SAMSUNG. As change becomes a constant of our time, Samsung is leading the way toward a brighter future

  • Page 7
    ...Our concerted focus to increase our market share in the emerging markets also yielded outstanding results. We attained a worldwide market share of 20%. In the TV business, we solidified our position in the LCD TV market by releasing a full range of LED TVs, and leading the 3D TV market. In 2009, we...

  • Page 8
    ...Appliances Business Mobile Communications Business Telecommunication Systems Business Digital Imaging Business C E O Semiconductor Business LCD Business North America, Europe, China, Southeast Asia, Southwest Asia, CIS, Middle East, Africa, Latin America, Korea Beginning the journey of Vision 2020...

  • Page 9
    ... Electronics Head, Mobile Communications Division Head, Corporate Design Center (2007~2009) - Head, Digital Media Business, Samsung Electronics (2003~2007) - Head, Visual Display Division, Samsung Electronics (1998~2003) - Head, Memory Sales and Marketing, Semiconductor Business, Samsung Electronics...

  • Page 10
    ... doors to tomorrow First movers point the way to new civilizations as humans evolve and advance. As a lifestyle architect, Samsung Electronics has pioneered technological advances and transformed global markets, developing creative solutions that inspire and shape the world we will live in tomorrow.

  • Page 11
    ... with the research community. We are restructuring our business to focus on life solutions. Building on our advanced hardware expertise, we are pursuing research and development into technology solutions and software that improve and enrich daily lives, including medical services and biotechnology...

  • Page 12
    ... re-making the user experience. Whatever your vision, we make it come true. People love our products because we offer exceptional and joyful experiences-we're making the Samsung Electronics brand irresistible." Kisuk Park Assistant Manager, IMC Part, Marketing Group, Mobile Communications Business

  • Page 13
    ... and succeeds in the marketplace. We plan and design our systems, products and services from the consumer's vantage point, ensuring that every user interaction is rewarding. Continuous technological advances and multi-functionality options in digital devices are a two-edged sword. On the one hand...

  • Page 14
    ... spirit, a clear sense of goals and flexible creativity, would like working at Samsung Electronics." Jaeho Lee Global Training Group, Human Resource Development Center Alexandra Sipos Content Service Team, Media Solution Center Wasim Abbas Engineer, Advanced R&D Group, Digital Appliances Business

  • Page 15
    ... product market. In 2009, Samsung Electronics attracted praise for releasing a variety of eco-friendly products, including more energy-efficient LED TVs, solar-powered mobile phones and monitors manufactured from recycled plastic. These environmentally sound efforts-and smart business investments...

  • Page 16
    ...PATH, Visual Display Business IT Solutions Business Digital Appliances Business Mobile Communications Business Telecommunication Systems Business Digital Imaging Business Semiconductor Business LCD Business BROADEN THE CHOICES Pioneering differentiated products through continuous innovation In the...

  • Page 17
    ... mobile computing. In the printer business-a strategic next-generation arena-we unveiled a mono laser printer and a multifunction printer with innovative one-touch print screen features. We also released a robust and high-speed A4 digital copier optimized for Managed Print Service (MPS) by corporate...

  • Page 18
    ... markets. As a result, in 2009, Samsung Electronics recorded robust sales of 227 million units around the world, consolidating our standing as the world's second largest mobile phone player. We did particularly well in the full touchscreen phone category: Star, our worldwide hit, attracted global...

  • Page 19
    ... Systems Business Mobile WiMAX (WiBRO), developed by Samsung Electronics and adopted as the worldwide technology standard in 2007, has been growing dramatically in leading mobile communications markets around the globe. Since we successfully provided full-blown commercial mobile WiMAX services...

  • Page 20
    ... product quality. In 2009, we strengthened that position by introducing such new products and technologies as Edge-Lit LED LCD panels and SuperWide DID panels, which earned a 27.6% share of the world market. Strong sales not only came from mature markets such as North America and Europe, but also in...

  • Page 21
    ...THE POSSIBILITIES We are creating the businesses of tomorrow Samsung Electronics is a pioneer in building new markets. As we look to the future, we aim to grow by creating products and services that move and motivate consumers worldwide, instilling satisfaction, trust and excitement as we contribute...

  • Page 22
    ...the accompanying consolidated balance sheets of Samsung Electronics Co., Ltd. and its subsidiaries (collectively referred to as the "Company") as of December 31, 2009 and 2008, and the related consolidated statements of income, changes in equity and cash ï¬,ows for the years then ended, expressed in...

  • Page 23
    ... 27) Inventories (Note 7) Total current assets Property, plant and equipment, net of accumulated depreciation (Note 11) Long-term available-for-sale securities (Note 9) Long-term held-to-maturity securities (Note 9) Equity-method investments (Note 10) Deferred income tax assets (Note 27) Intangible...

  • Page 24
    ...047,313 Disposal of treasury stock Stock option activities Market value adjustments for available-for-sale securities, net Change in share of equity method investees accumulated other comprehensive income, net Translation of foreign currency financial statements Others Balance at December 31, 2008...

  • Page 25
    ... stock Stock option activities Market value adjustments for available-for-sale securities, net Change in share of equity method investees accumulated other comprehensive income, net Translation of foreign currency financial statements Others Balance at December 31, 2009 Balance at January 1, 2009...

  • Page 26
    ... Consolidated Financial Statements. The following table sets forth certain information with regard to consolidated subsidiaries as of December 31, 2009. Subsidiaries Samsung Gwangju Electronics Primary Business Home appliances manufacturing Consumer financing Semiconductor equipment manufacturing...

  • Page 27
    ...(TSMD) Primary Business Research and development Sales Sale of electronic goods Holding company Manufacturing and sale of electronic goods CTV and washing machine manufacturing and sales ODD Manufacturing Semiconductor and LCD sales Mobile phone manufacturing Sales of telecommunication products and...

  • Page 28
    ...858,156 Korea China America Europe SEMES America Samsung Electronics Ukraine Subsidiaries Primary Business Service Marketing Marketing Marketing Sales Holding company Sales Manufacturing Holding company Marketing Real-properties lease Sales Research Semiconductor sales Sports services Percentage...

  • Page 29
    ... countries. Accordingly, these financial statements are intended for use by those who are informed about Korean accounting principles and practices. The accompanying consolidated financial statements have been condensed, restructured and translated into English from the Korean language consolidated...

  • Page 30
    ... as an asset impairment loss in the current period. 2009 Call loan Certificates of deposit Bonds Time deposits Others â,© 8,670 118,689 1,569,532 390,738 16,791 2008 â,© 157 231,561 622,911 127,307 131 Stock-Based Compensation The Company uses the fair-value method in determining compensation...

  • Page 31
    ...6,266,512 6. Receivables and Payables Accounts and notes receivable, and their allowance for doubtful accounts as of December 31, 2009 and 2008, are as follows: (In millions of Korean won) Credit card assets Installment finance General loans Lease assets Call loans and others 2009 Trade accounts...

  • Page 32
    60 61 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (1) Collection schedule of installment finance and general loans as of December 31, 2009, follows: (In millions of Korean won) 9. Long-Term Available-For-Sale Securities and Long-Term Held-To-Maturity Securities (1) Long-Term Available-For-...

  • Page 33
    ...519,181 Valuation Loss on Available-For-Sale Securities Balance at January 1, 2008 â,© (1,665) 2009 Number of Shares Owned Allat Corporation 1 iMarketKorea Kihyup Technology Banking Corporation Korea Digital Satellite Broadcasting Pusan Newport Renault Samsung Motors 2 Samsung Electronics Football...

  • Page 34
    ... Inventories ￦ (645) 3,125 345 (12) (28,678) 395 â,© (25,470) Property, Plant and Equipment and Intangible Assets ￦ 170 8 110 779 (7,219) 312 â,© (5,840) Total ￦ (475) 3,133 455 767 (35,897) 707 â,© (31,310) Samsung SDI Samsung Electro- Mechanics Samsung Techwin Samsung SDS Samsung Corning...

  • Page 35
    ...the lease financing business (Note 8). Allat 1 International Cyber Marketing 2 30.0 45.0 28.6 Absence of significant inï¬,uence Limited assets Limited assets Asia Future Technology & Service 2 1. Investments are excluded from the application of equity method of accounting because the Company...

  • Page 36
    68 69 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The amortization expense of intangible assets for the years ended December 31, 2009 and 2008, is allocated to the following accounts: (In millions of Korean won) 15. Long-Term Debts Long-term debts as of December 31, 2009 and 2008 consist of ...

  • Page 37
    ...defined benefit pension plan with Samsung Life Insurance in accordance with Employee Retirement Benefit Security Act. Retirement pension plan assets as of December 31, 2009 consist primarily of cash and cash equivalents (95.2%) and securities (2.7%). 18. Accrued expense Changes in main liability...

  • Page 38
    ...-trust violations by sellers of TFT-LCD, DRAM, SRAM and Flash Memory, including the Company. Following the investigation by the Justice Department and European Commission, several civil class actions were filed against the Company and its subsidiaries in the United States and Europe. As of balance...

  • Page 39
    ...0.0577663 shares of the Company's common stock for each share of Samsung Digital Imaging Co., Ltd, common stock owned on the closing date. A transfer of the financial assets has been recognized as a sale, and accordingly has been derecognized from the financial statements. Total financial assets...

  • Page 40
    ...Dividend rate 2009 Appropriated Legal reserve: Earned surplus reserve 1 Discretionary reserve: Reserve for improvement of financial structure Reserve for business rationalization Reserve for overseas market development Reserve for overseas investment losses Reserve for research and human resource...

  • Page 41
    ... TO THE CONSOLIDATED FINANCIAL STATEMENTS 25. Treasury Stock As of December 31, 2009, the Company holds 19,027,950 common shares and 2,979,693 preferred shares as treasury stocks. Deferred income tax assets and liabilities from tax effect of temporary differences including available tax credit...

  • Page 42
    ... Balance Increase (Decrease) Ending Balance Beginning Balance Deferred Income Tax Asset (Liabilities) Increase (Decrease) Ending Balance Current NonCurrent â... . Deductible temporary differences Equity-method investments and others 2 Undisposed accumulated deficit Tax credit carryforwards 2009...

  • Page 43
    ... Changes in accumulated loss on valuation of available-for-sale securities, net of related income taxes of â,©246 million (2008: â,©30 million) 673 â,© 10,229,921 204,192 2008 â,© 5,890,214 (660,687) 2009 Net income as reported on the statements of income Adjustments: Dividends for preferred stock...

  • Page 44
    ... NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30. Inter-Company transactions (A) Significant transactions between SEC and its consolidated subsidiaries, which have been eliminated during consolidation, for the years ended December 31, 2009 and 2008, and the related receivables and payables as of...

  • Page 45
    ... Account Foreign Currency 2009 Foreign Currency Amount 1,035 2 731 1,649,691 Domestic Companies 2008 2009 Foreign Currency Amount 314 6,227 81 Equity-method Investees Samsung SDI Samsung SDS Samsung Electro-Mechanics Samsung Corning Precision Glass Samsung Techwin Seoul Commtech Others Sales 2009...

  • Page 46
    ... of Digital Media and Telecommunications reporting segments, and mainly manufactures and sells handsets, networking system and other consumer electronics (TV, monitor, printer, computer and home appliances). ㆍ Device Solution ('DS') - The DS division is composed of Semiconductor and LCD reporting...

  • Page 47
    ... assets Export Americas Europe Asia China Elimination Consolidated 121,294,319 121,294,319 â,© 6,031,863 Preparation and implementation of Korean IFRS adoption The Company formed a task force to prepare for its transition from Generally Accepted Accounting Principle in the Republic of Korea...

  • Page 48
    ... Korea, companies those whose total assets are less than 10 billion Korean won were not subject to consideration, but they are subject to consolidation under Korean IFRS. Samsung Electronics Levant, Samsung Electronics European Holding, Batino Realty Corporation, Samsung Telecommunications Malaysia...

  • Page 49
    ...-7114 Europe Samsung Electronics Europe Headquarters Samsung House, 1000 Hillswood Drive, Chertsey, Surrey, KT16 0PS, UK Korea Samsung Electronics Korea Headquarters 22nd Floor, Samsung Life Bldg., 1321-15 Seocho 2-dong, Secho-gu, Seoul 137-955, Korea Philippines Samsung Electronics Philippines...

  • Page 50
    ...: 30-210-689-6235 Singapore Samsung Asia Pte. Ltd. (SAPL), Singapore Tel: 65-6833-3106 United Kingdom Samsung Electronics U.K. Ltd. (SEUK), Chertsey Tel: 44-1932-455-000 Samsung Semiconductor Europe Ltd. (SSEL), Weybridge Tel: 44-1932-823-500 Mexico Samsung Electronics Mexico (SEM-P), Querétaro...

  • Page 51
    ...-6-577-7457 Mexico Samsung Electronics Mexico Sales (SEM-S), Mexico City Tel: 52-55-5747-5100 Morocco Samsung Electronics Co., Ltd. (SEMRC), Casablanca Tel: 212-22-335-383 United States Samsung Electronics America, Inc. (SEA), Ridgefield Park Tel: 1-201-229-4000 Samsung Semiconductor, Inc. (SSI...