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Technology Services

Samsung SDS Co., Ltd.

Company Background

Samsung SDS, a systems development company established in 1985 under Samsung Electronics, is mainly responsible for systems operations for group companies.

The company, which has been expanding through buying out group companies specializing in information technology, debuted on the Korean exchange in November 2014.

A number of IT leaders have been produced by the company, including the founder of South Korea's Naver, developer of the Line free message application highly popular in Japan and other Asian countries.

The company's current goal is to push up the sales to 20 trillion won by 2020. It hopes to significantly expand business with outside customers by tapping into the know-how and expertise accumulated through relations with group companies assisting with matters such as enhancing productivity through system improvements.

It also focuses on contract logistics systems operations and security technologies to be used to link a fingerprint authentication system for mobile headset.

Its main shareholders include not only group companies such as Samsung Electronics but also Lee Jae-yong, vice chairman of Samsung Electronics and the third-generation leader of the founding family. It is one of the few group companies where the founding family directly owns stock. The business, therefore, is recognized not just as another operation, but as a possible core unit for reorganizing the entire group.

Business Summary

SAMSUNG SDS CO., LTD. engages in the provision of information and communication technology services. It operates through the Information Technology (IT) Services and Logistics Business Process Outsourcing (BPO) business divisions.. The IT Services business offers IT consulting and system integration services. The Logistics BPO business provides logistics planning and execution solutions. The company was founded on May 1, 1985 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2019 KRWUSD
Revenue10,719.63B9,192.05M
Gross Profit1,756.83B1,506.48M
Operating income989,443.22M848.44M
Income before tax1,033.20B885.97M
Net income736,457.95M631.51M
EBITDA1,431.80B1,227.76M
Diluted EPS9,521.088.16
Dividends Per Share2,4002.05
Total Assets9,021.23B7,800.80M
Total liabilities2,296.07B1,985.45M
Total equity6,545.79B5,660.24M
Operating cash flow893,786.64M766.41M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 7,853.45B 8,180.18B 9,299.20B 10,034.21B 10,719.63B
Gross Profit 1,302.93B 1,405.93B 1,474.60B 1,650.50B 1,756.83B
Operating income 586,125.19M 627,176.39M 731,457.83M 877,350.50M 989,443.22M
Income before tax 649,120.79M 751,861.73M 752,095.70M 956,530.74M 1,033.20B
Net income 439,020.11M 463,858.32M 530,347.61M 629,399.57M 736,457.95M
EBITDA 974,697.95M 992,083.05M 1,064.13B 1,185.62B 1,431.80B
Diluted EPS 5,676 5,997 6,856 8,137 9,521.08
Dividends Per Share 500 750 2,000 2,000 2,400
Total Assets 6,331.67B 6,842.00B 7,277.76B 8,013.84B 9,021.23B
Total liabilities 1,554.82B 1,550.87B 1,558.33B 1,865.29B 2,296.07B
Total equity 4,588.76B 5,140.69B 5,558.27B 5,982.45B 6,545.79B
Operating cash flow 864,766.04M 622,817.96M 834,847.19M 1,196.53B 893,786.64M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 6,938.88M 7,050.73M 8,225.67M 9,117.72M 9,192.05M
Gross Profit 1,151.20M 1,211.81M 1,304.36M 1,499.74M 1,506.48M
Operating income 517.86M 540.58M 647.01M 797.21M 848.44M
Income before tax 573.52M 648.05M 665.27M 869.16M 885.97M
Net income 387.89M 399.81M 469.12M 571.91M 631.51M
EBITDA 861.19M 855.10M 941.28M 1,077.32M 1,227.76M
Diluted EPS 5.01 5.16 6.06 7.39 8.16
Dividends Per Share 0.44 0.64 1.76 1.81 2.05
Total Assets 5,399.92M 5,664.84M 6,798.15M 7,182.15M 7,800.80M
Total liabilities 1,326.02M 1,284.05M 1,455.63M 1,671.71M 1,985.45M
Total equity 3,913.48M 4,256.24M 5,191.98M 5,361.58M 5,660.24M
Operating cash flow 764.06M 536.82M 738.46M 1,087.24M 766.41M

Valuation Measures

Dec 2019
PER20.42
ROA8.64%
ROE11.75%
Operating margin9.23%
Profit margin6.87%

Key executives

  • President, Chief Executive Officer & Director: Won-Pyo Hong
  • Director, VP, Head-Operations & IT Business: Hak-Kyu Park
  • Managing Director & Head-Finance: Song-Gi Jo
  • Managing Director & Head-Finance: Min-Sik Kim
  • Managing Director & Head-IT Operations: Jin-Wu Mun

Shareholders

  • Samsung Electronics Co., Ltd. (22.5%)
  • Samsung C&T Corp. (17.0%)
  • LEE JAE-YONG /SAMSUNG ELECTRONICS/ (9.1%)
  • National Pension Service of Korea (6.4%)
  • LEE BU-JIN (3.9%)
  • LEE SEO-HYUN (3.9%)
  • The Vanguard Group, Inc. (1.2%)
  • BlackRock Fund Advisors (0.9%)
  • Norges Bank Investment Management (0.7%)
  • Mirae Asset Global Investments Co., Ltd. (0.3%)

Contact Details

  • Website:http://www.sds.samsung.com
  • Address: Samsung SDS Tower, 125 Olympic-ro 35-gil, Seoul, 05510, South Korea
  • Phone: +82.2.6155.3114

Related Companies

  • Samsung SDS India Pvt Ltd.
  • Samsung SDS Global SCL Beijing Co., Ltd.
  • Samsung SDS Latin America Solucoes em Tecnologia Ltda.
  • Samsung SDS Mexico SA de CV
  • S Core Co. Ltd.
  • Samsung Sds Co. Ltd. Esoa
  • Samsung SDS (China) Co., Ltd.
  • TmaxCore Co., Ltd.
  • e-Samsung International Co., Ltd.
  • With Pharm Co. Ltd.
  • Samsung SDS America, Inc.
  • Samsung SDS Europe Ltd.
  • Miracom, Inc.

Competitors

  • International Business Machines Corporation
  • Accenture Plc Class A
  • Expeditors International of Washington, Inc.
  • Kuehne & Nagel International AG
  • Deutsche Post AG
  • United Parcel Service, Inc. Class B
  • CJ Corporation
  • DB Inc.
  • KL-Net Corp
  • Samhwa Paint Industrial Co., Ltd.
  • Taekwang Industrial Co., Ltd.
Last Updated on 20 Oct, 2020

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