Samsung Electronics Co., Ltd.

Company Background

Samsung Electronics is South Korea's largest company, with its core business semiconductors and electronic products. The company has an overwhelming presence in South Korea and exerts a strong influence over every sector. The success of its smartphone business has boosted the Samsung brand power overseas. In 2012, Samsung was ranked ninth in U.S. company Interbrand's best global brands survey. It was the highest ranking among Asian companies, overtaking Toyota Motor.

The business was founded in 1969 as part of the Samsung group, which had started out as a trading and textile company. Last year the company's owner and chairman, Lee Kun-hee, a son of the founder, collapsed from a heart attack. His son, Lee Jae-yong, who is vice chairman, took over the management of the company. As Jae-yong has no brothers, he is expected to succeed his father as chairman.

Samsung group's structure is complicated, with its companies holding each other's shares. The largest shareholder of Samsung Electronics is Samsung Life Insurance, but Cheil Industries, the top shareholder of Samsung Life Insurance, is considered to be the de facto holding company of the group. As of the end of 2014, Vice Chairman Lee Jae-yong owned 23.23% of Cheil Industries, indicating a generational shift has fairly progressed in terms of ownership.

While the semiconductor business continues to generate high profits, the smartphone operation, which has been behind the company's rapid growth over the past several years, fares poorly these days. The company still makes high profits as a manufacturer, but needs to explore new businesses to get its growth back on track.

Business Summary

Samsung Electronics Co., Ltd. engages in the manufacturing and selling of electronics and computer peripherals. The company operates through following business divisions: Consumer Electronics, Information Technology & Mobile Communications and Device Solutions. The Consumer Electronics business division provides cable television, monitor, printer, air-conditioners, refrigerators, washing machines and medical devices. The Information Technology & Mobile Communications business division offers handheld products, communication systems, computers and digital cameras. The Device Solutions business division comprises of memory, system large scale integrated circuit and light emitting diode. The company was founded on January 13, 1969 and is headquartered in Suwon, South Korea.

Financial Highlights

Dec 2022	KRW	USD
Revenue	302,231.36B	233,906.81M
Gross Profit	109,950.48B	85,094.30M
Operating income	43,376.63B	33,570.60M
Income before tax	45,349.83B	35,097.72M
Net income	54,730.01B	42,357.36M
EBITDA	82,484.28B	63,837.30M
Diluted EPS	8,057.21	6.23
Dividends Per Share	1,444	1.11
Total Assets	448,424.50B	354,625.93M
Total liabilities	93,674.90B	74,080.58M
Total equity	345,186.14B	272,982.31M
Operating cash flow	62,181.34B	48,124.19M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	243,771.41B	230,400.88B	236,806.98B	279,604.79B	302,231.36B
Gross Profit	108,494.11B	79,383.04B	88,194.79B	108,951.12B	109,950.48B
Operating income	58,886.66B	27,768.50B	35,993.87B	51,632.80B	43,376.63B
Income before tax	61,159.95B	30,019.22B	35,838.58B	52,622.21B	45,349.83B
Net income	43,890.87B	21,505.05B	26,090.84B	39,243.79B	54,730.01B
EBITDA	85,368.70B	57,366.14B	66,329.49B	85,880.16B	82,484.28B
Diluted EPS	6,460.72	3,165.92	3,841.02	5,777.37	8,057.21
Dividends Per Share	1,416	1,416	1,416	1,444	1,444
Total Assets	339,357.24B	352,564.49B	378,235.71B	426,621.15B	448,424.50B
Total liabilities	91,604.06B	89,684.07B	102,287.70B	121,721.22B	93,674.90B
Total equity	240,068.99B	254,915.47B	267,670.33B	296,237.69B	345,186.14B
Operating cash flow	67,031.86B	45,382.91B	65,287.00B	65,105.44B	62,181.34B

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	221,506.05M	197,568.15M	200,702.96M	244,162.35M	233,906.81M
Gross Profit	98,584.58M	68,070.74M	74,748.45M	95,140.58M	85,094.30M
Operating income	53,508.13M	23,811.42M	30,506.18M	45,087.87M	33,570.60M
Income before tax	55,573.78M	25,741.41M	30,374.57M	45,951.87M	35,097.72M
Net income	39,882.01M	18,440.52M	22,112.98M	34,269.28M	42,357.36M
EBITDA	77,571.38M	49,191.32M	56,216.77M	74,994.07M	63,837.30M
Diluted EPS	5.87	2.71	3.25	5.04	6.23
Dividends Per Share	1.28	1.21	1.20	1.26	1.11
Total Assets	304,138.05M	304,867.92M	348,187.14M	358,882.16M	354,625.93M
Total liabilities	82,097.20M	77,551.19M	94,161.55M	102,394.30M	74,080.58M
Total equity	215,154.13M	220,429.31M	246,405.51M	249,201.01M	272,982.31M
Operating cash flow	60,909.37M	38,915.73M	55,333.23M	56,852.74M	48,124.19M

Valuation Measures

Dec 2022
PER	6.86
ROA	12.50%
ROE	17.06%
Operating margin	14.35%
Profit margin	18.10%

Key executives

Vice Chairman & Co-Chief Executive Officer: Jong-Hee Han
Co-Chief Executive Officer & Executive Director: Kye Hyun Kyung
Chief Financial Officer: Hee-Chan Roh
Executive Director & Head-Compliance Team: Sang-Ju Lee
Head-Compliance Management: Sang-Gyun Kim

Shareholders

Samsung Life Insurance Co., Ltd. (8.5%)
National Pension Service of Korea (7.6%)
Samsung C&T Corp. (5.0%)
The Vanguard Group, Inc. (2.1%)
HONG RA HEE (1.9%)
BlackRock Fund Advisors (1.7%)
LEE JAE-YONG /SAMSUNG ELECTRONICS/ (1.6%)
Norges Bank Investment Management (1.5%)
Samsung Fire & Marine Insurance Co., Ltd. (1.4%)
Fidelity Management & Research Co. LLC (1.0%)

Contact Details

Website:http://www.samsung.com
Address: 129 Samsung-ro, Yeongtong-gu, Suwon, 16677, South Korea
Phone: +82.31.200.1114

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Competitors

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Canon Inc.
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United Microelectronics Corp.

Last Updated on 28 Mar, 2023