Samsung Mobile Vision & Strategies

Nov. 6th, 2013 JK Shin

Disclaimer

The materials in this report include forward-looking statements which can generally be identified by phrases such as Samsung Electronics (SEC) or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar implications. Similarly, such statements that describe the company's business strategy, outlook, objectives, plans, intentions or goals are also forward-looking statements. All such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in the presentation files above. For us, particular uncertainties which could adversely or positively affect our future results include: The behavior of financial markets including fluctuations in exchange rates, interest rates and commodity prices Strategic actions including dispositions and acquisitions Unanticipated dramatic developments in our major businesses including CE (Consumer Electronics), IM (IT & Mobile communications), DS (Device Solutions) Numerous other matters at the national and international levels which could affect our future results These uncertainties may cause our actual results to be materially different from those expressed in this report.

Contents
Business Highlights Market Opportunities Samsung Strategies Vision

Business Highlights

Smartphone 2011Handset 2012-

Smartphone 2013
Handset 2013

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Strategy Analytics, 2013. 2Q (Shipments)

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16.6

17.6

5.8 1.5M units

2010
Strategy Analytics

2011

2012

2013. 1H

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2012.1H
* M/S growth YoY

2012.2H

2013.1H

Strategy Analytics (Shipments)

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2010

2011

2012

2013.1H

Brand Attitude Survey conducted by TNA, requested from Samsung GMO

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Intel Intel HP Nokia HP HP Intel

Nokia

Nokia

2010
Interbrand

2012

2013

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Mobile

53%

Mobile

73%

Mobile

77%

2010
Interbrand

2012

2013

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Market Opportunities

1.0B units
Smartphone Penetration rate in 2013

1.3

1.5

2013
Strategy Analytics

2015

2017

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1,030 860 630M units

63%* 66% 69%

2013
* Portion of emerging market in smartphone market Strategy Analytics

2015

2017

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Market Forecasts
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Samsung's Perspective

680
500
38% 45%

270M units
27%*

2013
* LTE share in smartphone market Strategy Analytics

2015

2017

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Strategy Analytics

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Big Data Flexible Device Wearable Device IoT

Convergence

1990's

2000's

Near Future

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1990's

2000's

Near Future

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Opportunity

Threat

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16/46

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Samsung Strategies

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S Family

Companion Device

S Series

Note Series

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2010

2013

2014-

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GALAXY Round Note & S Pen

GALAXY Gear

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Large Display

Portability

Handwriting

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1999 Watch Phone

2013 Companion Device

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WORLDS FIRST

VoLTE Multi Carrier Carrier Aggregation Dual Mode (FDD-TDD) LTE-A

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SECURITIES

VERTICAL

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H/W

S/W

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Iconic & Innovative Design Premium CMF

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Partners Content & Services

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Big Data Platform

User Data

Intelligent Services

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2011
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2012

2013

Expand experience coverage and enhance engagement in real life environments

Fashion Week

Beyond preferred brand...

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Based on Handset

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Vision

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Thank You