Samsung Analyst Day 2013: CE BK Yoon Samsung CE Strategy

1. Samsung CE Strategy
- Sustainable Growth and Value Creation -

2. 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.

4. Consumer Electronics
Closely Tied to People’s Daily Lives

5. Consumer Electronics
Imagine Your Home Without CE Products

6. Consumer Electronics
Brand Reliability Comes First
Product Replacement Cycle
14.0
15.9
7.2
5.0
1.8 years
Mobile
※ Source : IMS Research(USA), Internal Analysis
Note PC
TV
Refrigerator
Washer

7. Consumer Electronics
Potential to Lock-in Customers
The First
Purchase
Additional
Purchase
Full Package

8. Consumer Electronics
Experience Samsung Brand Everywhere!
Kitchen
Laundry Room
Living Room
Portable

10. Key Questions
Is TV biz able to generate sustainable growth?
Can HA biz turn into the Samsung’s next driver?

11. Business Opportunity - TV
TV Demand Growing Consistently
114
Analog
Switch-off
105
98
96
Pull-in Effect
83
$67B
‘06
‘07
‘08
※ Source : Display Search FPTV (Revenue)
‘09
‘10
‘ 11
‘ 12
‘ 13
‘ 14
‘ 15
‘ 16

12. Business Opportunity - TV
UHD TV Market Ready to Explode
17.1
Full Line-up
11.1
5.6
1.2M Units
‘ 13
※ Source : Display Search
5X
‘ 14
‘15
‘ 16

13. Business Opportunity - TV
Fast Growing Premium Segment
60”↑ FPTV
1.9M
(28%)
Emerging
Developed
※ Source : Display Search (Unit)
4.8M
6.7M
5.5M
9.1M
(60%)
(72%)
‘ 13
‘ 16
3.6M
(40%)

14. Business Opportunity - TV
Fast Growing Premium Segment
Smart TV
32M
(30%)
107M
25M
Emerging
(34%)
73M
Developed
※ Source : Display Search (Unit)
(70%)
48M
(66%)
‘ 13
75M
‘ 16

15. Business Opportunity - TV
Emerging Market, Driving New Momentum
Analog Switch-off Plan
for Over 15 Countries
65
+α
66
61
$39B
‘ 09
‘ 10
※ Source : Display Search FPTV (Revenue)
‘ 11
‘ 12
‘ 13
‘ 14
‘ 15
‘ 16

16. Business Opportunity - HA
Continuously Growing Market
306
264
$188B
‘06
‘07
‘08
※ Source : Euromonitor, GfK, BSRIA, Internal Analysis
‘09
‘10
‘11
‘12
‘13
‘14
‘15
‘16

17. Business Opportunity - HA
Increasing Appetite for Value-added Products
Better
Quality of Life
Growing Desire for
Premium Product
Increasing
Average Price

18. Business Opportunity - HA
Increasing Appetite for Value-added Products
High End
Large Capacity
Energy Efficiency
70
47
Market
Portion
33
15
25%
20%
4%
‘10
57
26
‘13
‘15
* REF priced over $2,000 (USA)
※ Source : Traqline, GfK, JARN, Internal Analysis (Revenue)
‘10
‘13
Future
* Washer over 8kg (Germany)
‘10
‘13
‘15
* Inverter A/C (China)

19. Business Opportunity - HA
Fragmented Market with Regional Players

20. Business Opportunity - CE Total
Tremendous
Addressable Opportunities

23. CE Strategy - TV
Samsung TV Seized the Initiative

24. CE Strategy - TV
Leading the Industry Trend
2006 Bordeaux
2009 LED TV
2011 Smart TV
2012 Smart Interaction

25. World’s Largest
Timeless Design
- 25 -

26. Evolution Kit
- 26 -

27. Unparalleled
Picture Quality
Curved Design

28. CE Strategy - TV
Global No.1 for 8 Consecutive Years
31
19%
Company A 18
13%
Company B
8
11%
‘06
※ Source : GfK, NPD (Revenue)
‘08
‘10
‘12
‘13.1H

29. CE Strategy - TV
No.1 Market Share on Key Regions
38%
Europe
21%
29%
N. America
36%
M. East & Africa
※ Source : GfK, NPD (Revenue) ‘13.1H
Asia Pacific
30%
L. America

30. CE Strategy - TV
Leading the Premium Market
Market Share of 60”↑
48
37
38
37
28%
23%
CompanyA
28
26
CompanyB
18%
18%
‘09
Market Share of $2,000↑
‘10
‘11
※ Source : GfK, NPD (Revenue) ‘13.3Q Cumulative
‘12
‘13
‘09
12
17
‘10
‘11
‘12
‘13

31. CE Strategy - TV
The Most Preferred TV Brand
2013
Rank Company Preference
1 Samsung 32.7
2
Company A
22.0
3
D
12.1
4
B
7.0
…
…
…
(Most Preferred Single Answer)
※ Source : Internal Analysis, TNS

32. CE Strategy - TV
Recent Challenges Surrounding TV Business
Major TV
Competitors
2nd-Tier
TV Set Makers
IT Companies
with New Devices

33. CE Strategy - TV
Lead the UHD Category
Highest Picture Quality
Size Leadership
Multiple Form Factors

34. CE Strategy - TV
Reinforce Our Core Competencies
Cutting-edge Technology
Innovative Design
Various Line-ups

35. CE Strategy - TV
Bring New Experience
Easier & Faster User Interface
Differentiated Content & Service

36. CE Strategy - TV
Provide Best Shopper Experiences
Story Zone
(In-store Display)
Culture Marketing
(France Nuit Blanche Festival)

37. CE Strategy - TV
Future
TV

39. CE Strategy - HA
Home Appliances Industry is …
Analog
Local Preference
Heavy Investment
14.0
Replacement
Cycle
x2 Investment
Europe
Asia
America
1.8 years
Mobile
Refrigerator
TV
Refrigerator

40. CE Strategy - HA
Slow Moving Industry
Few Technology Breakthrough in the past
Refrigerator
Washer
Air-conditioner

41. Time to Change
the

42. CE Strategy - HA
Innovate the Marketplace
Boost up Customer Desire
14.0 years
Enlarge Market Size
15.9
+α
Refrigerator Washer
Demand
Samsung’s Innovative Products

43. CE Strategy - HA
A Quantum Leap through Innovation

44. Samsung’s

45. CE Strategy - HA
Refrigerator
Create a New Premium Category
New!
1990
2003
2012
2013
2014~
?
Side-by-side
French-door
T-type
Food Showcase Future REF

46. Capacity Innovation
Same Frame, More Space
T9000

47. Smart Storage Solution
Incase
Showcase
Unorganized
Food Showcase

48. New Embedded Feature
Sparkling
Refrigerator

49. CE Strategy - HA
Washing Machine
Lead the Green Technology Paradigm
Performance
Upgrade
Energy
Water

50. CE Strategy - HA
Washing Machine
Lead the Green Technology Paradigm
?
2014
W9000

51. CE Strategy - HA
Air-conditioner
Provide Total Air Solutions
Commercial
Indoor Air Quality
Residential
Cooling/
Heating

52. Design Innovation
Spring
Air-purifier
Q9000
55%↓
Summer
Cooling
Fall
Q9000
Winter
Conventional
Virus Doctor Humidifier

53. Unlimited Applications
Easy Installation
Energy Leadership
with Inverter Technology
Largest Capacity
Shopping Mall
Stadium
Airport
Resort
Office Building
(Hungary)
(Germany)
(China)
(Turkey)
(Qatar)

54. CE Strategy - HA
Vacuum Cleaner
Create Cutting-edge Products
Canister/Upright
Motion Sync Design

55. CE Strategy - HA
Vacuum Cleaner
Create Cutting-edge Products
Robot Cleaner

56. CE Strategy - HA
Kitchen Appliances
Deliver the Premium Kitchen Package
Large Market Potential
Core of a Premium Brand
Total Market
$70B
(Refrigerator $80B)
Built-in Premium
Home
Package Appliances

57. CE Strategy - HA
Kitchen Appliances
Deliver the Premium Kitchen Package
Oven
Microwave Oven
Hood
Cooktop
New Cooking Experience
Dual Cook
Oil-free Fry
Dish Washer

58. CE Strategy - HA
Establishing a Global Business Foundation
7 manufacturing sites in 2008
12 manufacturing sites in 2013
Russia
Poland
China
Malaysia
India
Korea
Mexico
Vietnam
Thailand
Brazil

59. CE Strategy - HA
Discovering Deep Local Insights
5 Lifestyle Research Lab
London
Beijing
San Jose
New Delhi
Singapore

60. CE Strategy - HA
Premium Marketing to Raise Value
Club des Chefs
Collaboration Marketing
(with Furniture Company)

61. CE Strategy - HA
Premium Marketing to Raise Value

62. CE Strategy - HA
Excellent Reviews across the World
“Best of the year 2013”
Side-by-side
French Door
Sparkling REF
Dryer
(Electric/Gas)
1 Samsung 76
1 Samsung 84
2 Company A 75
3
B 74
2 Company A 83
2
B 83
※ Source : Consumer Report (Nov 2013)
Picked as
Spotlight
Excellent
Grade

63. CE Strategy - HA
Excellent Reviews across the World
Top Ranked
for 5-Consecutive Year
Washer
Samsung
822
Company A
818
B
C
※ Source : J.D.Power 2013 Laundry Appliances Satisfaction Study (Aug 2013)
808
783

64. CE Strategy - HA
HA Business will Jump Up to No.1
Performance
Innovation to Influence
People’s Lifestyle!
Speed of Innovation
Time

66. Highlight of Samsung CE

67. Samsung CE Vision