SAMSUNG ELECTRONICS Co., Ltd. 
`Interim Business Report 
`For the quarter ended March 31, 2015
`
` 
`
`                                                 
`
`Note about forward-looking statements
`
`Certain statements in the document, other than purely historical information, including estimates, projections, statements relating to our business
`plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.”
`Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual
`results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and
`events to differ materially from such forward-looking statements is included in our financial reports available on our website.
`See, also, 『Note on Forward-Looking Statements』 in preamble of 『II. Business Overview』.
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`Gold Charm Ex. 2001
`Samsung v. Gold Charm
`IPR2015-01416
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`Table of Contents
`
`
`Certification ................................................................................................................................................................................ 3
`I. Corporate Overview ............................................................................................................................................................... 4
`II. Businesses Overview ......................................................................................................................................................... 20
`III. Financial Affairs .................................................................................................................................................................. 55
`IV. Auditor’s Report ............................................................................................................................................................... 111
`V. Management Discussion and Analysis ........................................................................................................................... 114
`VI. Corporate Governance .................................................................................................................................................... 115
`VII. Information on Shareholders ......................................................................................................................................... 124
`VIII. Executives and Employees ........................................................................................................................................... 130
`IX. Affiliates and Subsidiaries .............................................................................................................................................. 136
`X. Related Party Transactions .............................................................................................................................................. 164
`XI. Other Information Related to Investor Protection ........................................................................................................ 167
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`
`Certification
`
`
`
`Letter of Certification
`
`
`
`We, Oh-Hyun Kwon and Sang-Hoon Lee, respectively, as CEO and director of the company in charge of
`reporting, certify that we have reviewed the annual business report of Samsung Electronics Co., Ltd. for the
`quarter ended March 31, 2015.
`
`To our knowledge, this report does not contain any untrue statement of a material fact or omit to state a material
`fact necessary that would be misleading with respect to the period covered by this report.
`
`To our knowledge, the financial statements, and other financial information included in the report, fairly present
`in all materials respects the financial condition, results of operations and cash flows of the company as of, and
`for, the periods presented in this report.
`
`We confirm that Samsung Electronics operates an Internal Accounting Management System, responsible for
`establishing and maintaining disclosure controls and procedures and internal controls over financial reporting,
`as defined in Article 2.2 and 2.3 of the External Audit Act. We have disclosed our most recent evaluation of
`internal controls over financial reporting to the Company’s auditors and to the audit committee of the
`Company’s board of directors.
`
`
`
`Date: 2015. 5. 29
`
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`I. Corporate Overview
`
`
`1. Overview
`
`A. Legal, Commercial Name:
`
`
`- Samsung Electronics Co., Ltd.
`
`
`B. Date of Establishment:
`
`
`- Samsung Electronics (“SEC” or `“The Company”) was established as Samsung Electronics Industry Co., Ltd.
`on January 13, 1969, and held an initial public offering on June 11, 1975.
`
` -
`
` The Company changed its name from Samsung Electronics Industry Co., Ltd. to Samsung Electronics Co., Ltd.
`following a the resolution passed at the Annual General Meeting of Shareholders on February 28, 1984.
`
`
`C. Address, Phone Number, and English Language Website of the Corporate Headquarter
`
`
`- Address: 129, Samsung-ro, Yeongtong-gu, Suwon, Gyeonggi-do, Korea
`- Phone Number: 82-31-200-1114
`- Website: http:// www.samsung.com/us
`
`
`D. The Company is not subject to Article 2 of the Framework Act on Small and Medium Enterprises.
`
`E. Core Businesses
`
`
`- The Company separately manages three independent self-determining divisions (each a “Division”), CE (Consumer
`Electronics), IM (Information Technology & Mobile Communications), and DS (Device Solutions).
`
`
`Products in each Division are presented below:
`
`
`Division
`CE
`IM
`DS
`
`Products
`TV, Monitor, Printer, Air Conditioner, Refrigerator, Washing Machine, Medical Devices, etc.
`HHP, Network System, Computer, Digital Camera, etc.
`DRAM, NAND Flash, Mobile AP, LCD panel, OLED panel, LED, etc.
`
`
`The Company is a global electronics company comprised of the headquarters in Korea and 161 subsidiaries across the
`world including nine (9) regional headquarters for the CE and IM Divisions and five (5) regional headquarters for the DS
`Division.
`
`[CE Division]
`
`The CE Division is leading the global digital era by continuously offering new products with innovative technology,
`unique design, and enhanced value propositions.
`
`TV is the core product of CE. The Company has maintained its market leadership position for the past nine (9)
`consecutive years by leveraging competitive advantages in hardware such as LCD and LED TVs as well as software
`driven product features within our Smart TV product portfolio.
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`[IM Division]
`
`
`The IM Division is leading mobile lifestyle innovation with consumer-friendly products such as the premium ‘GALAXY’
`branded series of smartphones and tablets, while driving the paradigm shift in the market beyond mobile convergence to
`focus on software.
`
`The IM Division is focused on meeting market demands by enhancing mobile product differentiation through seamless
`integration of key features from various product categories.
`
`In addition to handheld phone (“HHP”) products including smartphones, the IM Division is also leading technological
`development and standardization in the global networks system market including Long Term Evolution (“LTE”).
`
`
`
`[DS Division]
`
`The DS Division is comprised of the semiconductor sub-division and the display panel business. The semiconductor
`sub-division (“Semiconductor Sub-Division”) is further divided into the memory business and system LSI business. The
`Company’s memory business unit (“Memory” or “Memory Business Unit”) manufactures and sells DRAM and NAND
`products. The Company’s system LSI business unit (“System LSI”) manufactures mobile application processors (“Mobile
`APs” or “APs”) and various sensors including CMOS imaging sensors (“CIS”). The display business (“DP Business
`Unit”) through its Samsung Display subsidiary, manufactures and sells display panels (“DP”), including TFT-LCDs and
`OLEDs.
`
`The Memory Business Unit produces differentiated products and has maintained the number one position in the global
`memory market by continuously applying the latest advanced process technology ahead of the competition with each
`technological iteration. System LSI is leading the industry shift from PCs to mobile. The Company’s DP Business Unit is
`leading the market with technological innovations and investment resulting in superior quality and cost competitiveness in
`TFT-LCDs and by increasing the application of OLED panels in various IT products.
`
` ☞
`
` See 『II. Businesses Overview』, for more details about each Division.
`
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`F. Affiliates
`
`
`
`The Company is an affiliate of the Samsung group as defined under Korea’s Monopoly Regulation and Fair Trade Act
`(“Samsung Group”).
`
`As of March 31, 2015, Samsung Group had a total of sixty-seven (67) domestic affiliates, reduction of two (2) affiliates
`(RAY, Songdo Land Mark City) when compared to December 31, 2014. Among the Samsung Group’s sixty seven (67)
`domestic affiliates, eighteen (18) affiliates including Samsung Electronics are listed, and forty-nine (49) affiliates are
`unlisted.
`
`
`[As of March 31, 2015]
`
`
`
`No. of
`affiliates
`
`Listed
`
`18
`
`Unlisted
`
`49
`
`Name of affiliates
`
`Samsung C&T, Samsung Electronics, Samsung SDI, Samsung Techwin, SEMCO, Samsung Heavy Industries,
`Samsung Card, Samsung Life Insurance, Hotel Shilla, Samsung Fire & Marine Insurance, Samsung
`Securities, Samsung Fine Chemicals, Samsung Engineering, S1, Cheil Worldwide, Cheil Industries, Samsung
`SDS, CREDU
`
`Samsung General Chemicals, Samsung Total Petrochemicals, Samsung Lions, SERI, STECO, Samsung
`Thales, SEMES, Samsung Electronics Sales, Samsung Electronics Service, Samsung Electronics Logitech,
`Hantok Chemicals, CVnet Corporation, Allat., SECUI, Open Tide Korea, Samsung Futures, Samsung Venture
`Investment Corporation, Samsung Asset Management, Saengbo, SD Flex, Samsung Claim Adjustment
`Service, Samsung Fire & Marine Insurance Service, Suwon Samsung Bluewings FC, S-Core, Human TSS, S-
`1CRM, OpenHands, S-EnPol, Samsung Medison, Samsung Biologics, STM, Nuri Solution, Colombo Korea,
`Samsung Life Service, Miracom, SU Materials, Natural9, Samsung Display, Samsung Bioepis, Samsung
`Corning Advanced Glass , Daejung Offshore Wind Power Co., Ltd., Samsung SRA Asset Management,
`Samsung Welstory, Jeongahm Wind Power, Samsung SGL Carbon Composite Materials, Samsung Card
`Customer Service, Seoul Lakeside CC, Shilla Stay, Samoo Architects & Engineers
`
`Total
`
`67
`
`
`
` ☞
`
` See 『IX. Corporate Governance and Affiliates』 for more details about domestic and overseas affiliates.
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`G. Subsidiaries Subject to Consolidated Financial Statements
`
`As of March 31, 2015, Samsung Electronics’ consolidated subsidiaries totaled 161 with the addition of seven(7) newly
`established and acquired subsidiaries and the subtraction of four(4) subsidiaries through mergers, dispositions or other
`reorganization, when compared to December 31, 2014. Below is the list of consolidated subsidiaries.
`
`Date of
`Establishment
`
`Major business
`
`Dec 31,
`2014
`Assets
`
`Sale of electronic goods
`
`10,697,787
`
`%
`ownership
`
` (Unit: KRW million)
`Classified as
`major
`subsidiary
`(Y/N)
`Y
`
`Over 50%
`
`Name of Subsidiaries
`
`Samsung Electronics America Inc.
`
`Samsung Receivables Corporation
`
`Samsung Semiconductor Inc.
`
`Samsung Electronics Canada Inc.
`Samsung Research America, Inc
`
`Grandis, Inc.
`
`Samsung International Inc.
`
`Samsung Mexicana S.A. de C.V
`
`Samsung Austin Semiconductor LLC.
`
`Samsung Electronics Mexico S.A. De C.V.
`
`SEMES America Inc.
`
`Samsung Electronics Digital Appliance Mexico, SA de CV
`
`Samsung Electronics Latinoamerica Miami, Inc.
`
`Nvelo, Inc.
`
`1978.07
`
`1998.03
`
`1983.07
`
`1980.07
`
`1988.10
`
`2002.06
`
`1983.10
`
`1988.03
`
`1996.02
`
`1995.07
`
`1998.10
`
`2012.12
`
`1995.05
`
`2010.05
`
`Receivable management
`Sale of semiconductors and
`display panels
`Sale of electronic goods
`
`R&D
`
`R&D
`
`3,527,023
`
`Over 50%
`
`7,577,935
`
`Over 50%
`
`529,348
`
`Over 50%
`
`238,690
`
`Over 50%
`
`107,943
`
`Over 50%
`
`Production of TVs and monitors
`
`33,506
`
`Over 50%
`
`Production of electronic goods
`
`871,462
`
`Over 50%
`
`Production of semiconductors
`
`6,503,003
`
`Over 50%
`
`Sale of electronic goods
`
`795,138
`
`Over 50%
`
`Semiconductor equipment
`
`717
`
`Over 50%
`
`Production of electronic goods
`
`443,745
`
`Over 50%
`
`Sale of electronic goods
`
`126,017
`
`Over 50%
`
`Software
`
`1,774
`
`Over 50%
`
`Sale of electronic goods
`
`347,502
`
`Over 50%
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`N
`
`Y
`
`Y
`
`Y
`
`N
`
`Y
`
`Y
`
`N
`
`Y
`
`Samsung Electronics Latinoamerica (Zona Libre)
`
`Samsung Electronics Venezuela, C.A.
`
`Samsung Electronica Colombia S.A.
`
`Samsung Electronics Panama. S.A.
`
`Samsung Electronica da Amazonia Ltda.
`
`Samsung Electronics Argentina S.A.
`
`Samsung Electronics Chile Limitada
`
`Samsung Electronics Peru S.A.C.
`
`Samsung Electronics (UK) Ltd.
`
`Samsung Electronics(London) Ltd.
`
`Samsung Electronics Holding GmbH
`
`Samsung Semiconductor Europe GmbH
`
`Samsung Electronics GmbH
`
`Samsung Electronics Iberia, S.A.
`
`Samsung Electronics France S.A.S
`
`Samsung Electronics Hungarian Private Co. Ltd.
`
`1989.04
`
`2010.05
`
`1997.03
`
`2012.07
`
`1994.10
`
`1996.06
`
`2002.12
`
`2010.04
`
`1995.07
`
`1999.01
`
`1982.02
`
`1987.12
`
`1984.12
`
`1989.01
`
`1988.01
`
`1989.10
`
`Marketing and services
`
`8,344
`
`Over 50%
`
`Sale of electronic goods
`
`287,792
`
`Over 50%
`
`Consulting
`Production and sale of
`electronic goods
`Marketing and services
`
`8,973
`
`Over 50%
`
`4,174
`
`Over 50%
`
`52,003
`
`Over 50%
`
`Sale of electronic goods
`
`262,414
`
`Over 50%
`
`Sale of electronic goods
`
`199,308
`
`Over 50%
`
`Sale of electronic goods
`
`1,235,239
`
`Over 50%
`
`Holding company
`
`Holding company
`Sale of semiconductors and
`display panels
`Sale of electronic goods
`
`7,515
`
`Over 50%
`
`840,716
`
`Over 50%
`
`1,186,942
`
`Over 50%
`
`1,142,897
`
`Over 50%
`
`Sale of electronic goods
`
`665,617
`
`Over 50%
`
`Sale of electronic goods
`Production and sale of
`electronic goods
`
`1,031,342
`
`Over 50%
`
`1,287,972
`
`Over 50%
`
`N
`
`Y
`
`N
`
`N
`
`N
`
`Y
`
`Y
`
`Y
`
`N
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
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`Name of Subsidiaries
`
`Date of
`Establishment
`
`Major business
`
`Dec 31,
`2014
`Assets
`
`%
`ownership
`
`Samsung Electronics Czech and Slovak s.r.o.
`
`Samsung Electronics Italia S.P.A.
`
`Samsung Electronics Europe Logistics B.V.
`
`Samsung Electronics Benelux B.V.
`
`Samsung Display Slovakia s.r.o.
`
`Samsung Electronics Romania LLC
`
`Samsung Electronics Polska, SP.Zo.o
`
`Samsung Electronics Portuguesa S.A.
`
`2010.01
`
`1991.04
`
`1991.05
`
`1995.07
`
`2007.03
`
`2007.09
`
`1996.04
`
`1982.09
`
`Sale of electronic goods
`
`153,708
`
`Over 50%
`
`Sale of electronic goods
`
`759,637
`
`Over 50%
`
`Logistics
`
`1,621,583
`
`Over 50%
`
`Sale of electronic goods
`
`1,207,723
`
`Over 50%
`
`Display panel processing
`
`225,826
`
`Over 50%
`
`Sale of electronic goods
`
`153,259
`
`Over 50%
`
`Sale of electronic goods
`
`419,043
`
`Over 50%
`
`Sale of electronic goods
`
`136,282
`
`Over 50%
`
`Classified as
`major
`subsidiary
`(Y/N)
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Samsung Electronics Nordic Aktiebolag
`
`Samsung Nanoradio Design Center
`
`Samsung Semiconductor Europe Ltd.
`
`Samsung Electronics Austria GmbH
`
`Samsung Electronics Slovakia s.r.o
`
`Samsung Electronics Europe Holding Cooperatief U.A.
`
`Samsung Electronics Poland Manufacturing SP.Zo.o
`
`Samsung Electronics Greece S.A.
`
`Nanoradio Hellas AE
`
`1992.03
`
`2004.02
`
`1997.04
`
`2002.01
`
`2002.06
`
`2008.10
`
`2010.02
`
`2010.04
`
`2007.11
`
`Sale of electronic goods
`
`467,393
`
`Over 50%
`
`R&D
`Sale of semiconductors and
`display panels
`Sale of electronic goods
`
`21,112
`
`Over 50%
`
`104,308
`
`Over 50%
`
`290,346
`
`Over 50%
`
`Production of TVs and monitors
`
`1,869,697
`
`Over 50%
`
`Holding company
`
`7,022,746
`
`Over 50%
`
`Production of home appliances
`
`331,949
`
`Over 50%
`
`Sale of electronic goods
`
`84,289
`
`Over 50%
`
`R&D
`
`21,112
`
`Over 50%
`
`21,408
`
`Over 50%
`
`N
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`N
`
`N
`
`Samsung Denmark Research Center ApS
`
`Samsung France Research Center SARL
`
`Samsung Cambridge Solution Centre Limited
`
`Samsung Electronics Baltics SIA
`
`Samsung Electronics Overseas B.V.
`
`Samsung Electronics Rus LLC
`
`Samsung Electronics Rus Company LLC
`
`Samsung Electronics Ukraine LLC
`
`Samsung Electronics Ukraine Company LLC
`
`2012.09
`
`2012.10
`
`2012.09
`
`2001.10
`
`1997.01
`
`1999.03
`
`2006.10
`
`2004.01
`
`2008.09
`
`R&D
`
`R&D
`
`R&D
`
`21,275
`
`Over 50%
`
`130,113
`
`Over 50%
`
`Sale of electronic goods
`
`52,840
`
`Over 50%
`
`Sale of electronic goods
`
`176,271
`
`Over 50%
`
`Marketing
`
`8,067
`
`Over 50%
`
`Sale of electronic goods
`
`796,220
`
`Over 50%
`
`Marketing
`
`3
`
`Over 50%
`
`Sale of electronic goods
`
`254,000
`
`Over 50%
`
`10,048
`
`Over 50%
`
`N
`
`Y
`
`N
`
`Y
`
`N
`
`Y
`
`N
`
`Y
`
`N
`
`Samsung R&D Institute Rus LLC
`
`Samsung Electronics Kazakhstan LLP
`
`Samsung Electronics Central Eurasia LLP
`
`Samsung Electronics Rus Kaluga LLC
`
`Samsung Russia Service Centre LLC
`
`Samsung Electronics West Africa
`
`Samsung Electronics East Africa
`
`Samsung Gulf Electronics Co., Ltd.
`
`Samsung Electronics Egypt S.A.E
`
`2011.11
`
`2006.07
`
`2008.09
`
`2007.07
`
`1997.11
`
`2010.03
`
`2011.12
`
`1995.05
`
`2012.07
`
`R&D
`
`Marketing
`
`1,046
`
`Over 50%
`
`Sale of electronic goods
`
`154,438
`
`Over 50%
`
`Production of TVs
`
`785,584
`
`Over 50%
`
`Service
`
`Marketing
`
`Marketing
`
`Sale of electronic goods
`Production and sale of
`electronic goods
`
`29,243
`
`Over 50%
`
`59,933
`
`Over 50%
`
`32,929
`
`Over 50%
`
`921,338
`
`Over 50%
`
`512,426
`
`Over 50%
`
`N
`
`Y
`
`Y
`
`N
`
`N
`
`N
`
`Y
`
`Y
`
`
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`Name of Subsidiaries
`
`Date of
`Establishment
`
`Major business
`
`Dec 31,
`2014
`Assets
`
`%
`ownership
`
`4,724
`
`Over 50%
`
`2,129
`
`Over 50%
`
`1,943
`
`Over 50%
`
`Marketing
`
`Marketing
`
`Marketing
`
`Samsung Electronics Israel Ltd.
`
`Samsung Electronics Tunisia S.A.R.L
`
`Samsung Electronics Pakistan(Private) Ltd.
`
`Samsung Electronics South Africa(Pty) Ltd.
`
`Samsung Electronics Turkey
`
`Samsung Semiconductor Israel R&D Center Ltd.
`
`Samsung Electronics Levant Co.,Ltd.
`
`2012.09
`
`2012.09
`
`2012.11
`
`1994.06
`
`1984.12
`
`2007.10
`
`2009.07
`
`2009.11
`
`Sale of electronic goods
`
`712,489
`
`Over 50%
`
`Sale of electronic goods
`
`563,363
`
`Over 50%
`
`R&D
`
`30,036
`
`Over 50%
`
`Sale of electronic goods
`
`508,983
`
`Over 50%
`
`Sale of electronic goods
`
`92,576
`
`Over 50%
`
`Classified as
`major
`subsidiary
`(Y/N)
`N
`
`N
`
`N
`
`Y
`
`Y
`
`N
`
`Y
`
`Y
`
`Samsung Electronics Morocco SARLAU
`
`Samsung Japan Corporation
`
`Samsung R&D Institute Japan Co. Ltd
`
`Samsung Electronics Japan Co., Ltd.
`
`Samsung Electronics Display (M) Sdn. Bhd.
`
`Samsung Electronics (M) Sdn. Bhd.
`
`Samsung Vina Electronics Co., Ltd.
`
`Samsung Asia Private Ltd.
`
`Samsung India Electronics Private Ltd.
`
`Samsung R&D Institute India-Bangalore Private Ltd.
`
`1975.12
`
`1992.08
`
`2008.09
`
`1995.03
`
`1989.09
`
`1995.01
`
`2006.07
`
`1995.08
`
`2005.05
`
`Sale of electronic goods
`
`831,649
`
`Over 50%
`
`R&D
`
`Sale of electronic goods
`Production and sale of
`electronic goods
`Production of home appliances
`Production and sale of
`electronic goods
`Sale of electronic goods
`Production and sale of
`electronic goods
`R&D
`
`160,614
`
`Over 50%
`
`612,675
`
`Over 50%
`
`278,239
`
`Over 50%
`
`129,214
`
`Over 50%
`
`219,356
`
`Over 50%
`
`3,110,433
`
`Over 50%
`
`2,949,605
`
`Over 50%
`
`190,104
`
`Over 50%
`
`Over 50%
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`Samsung Electronics Australia Pty. Ltd.
`
`PT Samsung Electronics Indonesia
`
`PT Samsung Telecommunications Indonesia
`
`Thai Samsung Electronics Co., Ltd.
`
`Samsung Electronics Philippines Corporation
`
`Samsung Malaysia Electronics (SME) Sdn. Bhd.
`
`Samsung R&D Institute BanglaDesh
`
`Samsung Electronics Vietnam Co., Ltd.
`
`Samsung Telecommunications Malaysia Sdn. Bhd.
`
`Samsung Display Dongguan Co., Ltd.
`
`1987.11
`
`1991.08
`
`2003.03
`
`1988.10
`
`1996.03
`
`2003.05
`
`2010.08
`
`2008.03
`
`2009.08
`
`2001.11
`
`Sale of electronic goods
`Production and sale of
`electronic goods
`Sale of telecom systems and
`services
`Production and sale of
`electronic goods
`Sale of electronic goods
`
`437,351
`
`806,451
`
`Over 50%
`
`17,850
`
`Over 50%
`
`1,654,988
`
`Over 50%
`
`126,256
`
`Over 50%
`
`Sale of electronic goods
`
`328,645
`
`Over 50%
`
`R&D
`
`Production of electronic goods
`Sale of telecom systems
`and services
`Display panel production
`
`7,590
`
`Over 50%
`
`6,553,628
`
`Over 50%
`
`1,170
`
`Over 50%
`
`1,101,846
`
`Over 50%
`
`Y
`
`N
`
`Y
`
`Y
`
`Y
`
`N
`
`Y
`
`N
`
`Y
`
`Samsung Display TianJin Co., Ltd.
`
`Samsung Electronics Hong Kong Co., Ltd.
`
`Suzhou Samsung Electronics Co., Ltd.
`
`Samsung Suzhou Electronics Export Co., Ltd.
`
`Samsung (CHINA) Investment Co., Ltd.
`
`Samsung Mobile R&D Center, China-Guangzhou
`
`Samsung Tianjin Mobile Development Center
`
`Samsung Electronics Suzhou Semiconductor Co., Ltd.
`
`2004.06
`
`1988.09
`
`1995.04
`
`1995.04
`
`1996.03
`
`2010.01
`
`2010.08
`
`1994.12
`
`Display panel production
`
`836,806
`
`Over 50%
`
`Sale of electronic goods
`
`984,732
`
`Over 50%
`
`Production of home appliances
`
`689,430
`
`Over 50%
`
`Production of home appliances
`
`370,904
`
`Over 50%
`
`Sale of electronic goods
`
`9,603,679
`
`Over 50%
`
`R&D
`
`R&D
`
`43,117
`
`Over 50%
`
`22,927
`
`Over 50%
`
`Semiconductor processing
`
`749,914
`
`Over 50%
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`N
`
`N
`
`Y
`
`
`
`Samsung Electronics Interim Business Report 9 / 170
`
` 
`
`9
`
`9
`
`9
`
`9
`
`

`
`Name of Subsidiaries
`
`Date of
`Establishment
`
`Major business
`
`Dec 31,
`2014
`Assets
`
`%
`ownership
`
`Samsung Electronics (Shandong) Digital Printing Co., Ltd.
`
`Samsung Electronics Huizhou Co., Ltd.
`
`Tianjin Samsung Electronics Co., Ltd.
`
`Samsung Electronics Taiwan Co., Ltd.
`
`Beijing Samsung Telecom R&D Center
`
`Tianjin Samsung Telecom Technology Co., Ltd.
`
`Shanghai Samsung Semiconductor Co., Ltd.
`
`Samsung Electronics Suzhou Computer Co., Ltd.
`
`1993.03
`
`1992.12
`
`1993.04
`
`1994.11
`
`2000.09
`
`2001.03
`
`2001.10
`
`2002.09
`
`Production of printers
`
`777,128
`
`Over 50%
`
`Production of electronic goods
`
`4,966,486
`
`Over 50%
`
`Production of TV and monitors
`
`933,487
`
`Over 50%
`
`Sale of electronic goods
`
`1,583,027
`
`Over 50%
`
`R&D
`
`Production of telecom products
`Sale of semiconductor and display
`panels
`Production of electronic goods
`
`55,424
`
`Over 50%
`
`2,316,054
`
`Over 50%
`
`2,560,852
`
`Over 50%
`
`812,755
`
`Over 50%
`
`Classified as
`major
`subsidiary
`(Y/N)
`Y
`
`Y
`
`Y
`
`Y
`
`N
`
`Y
`
`Y
`
`Y
`
`Samsung Display Suzhou Co., Ltd.
`
`Samsung Suzhou LCD Co., Ltd
`
`Shenzhen Samsung Electronics Telecommunication Co., Ltd.
`
`Samsung Electronics Shanghai Telecommunication Co., Ltd.
`
`Samsung Semiconductor (China) R&D Co., Ltd.
`
`Samsung Electronics China R&D Center
`
`Samsung (China) Semiconductor Co., Ltd.
`
`Samsung Electronics (Beijing) Service Company Ltd.
`
`2002.09
`
`2011.07
`
`2002.02
`
`2001.11
`
`2003.04
`
`2004.05
`
`2012.09
`
`2005.01
`
`Display panel processing
`
`550,429
`
`Over 50%
`
`Display panel production
`
`1,831,794
`
`Over 50%
`
`Sale of telecom products
`Sale of telecom
`and network products
`R&D
`
`R&D
`
`146,482
`
`Over 50%
`
`124
`
`Over 50%
`
`20,548
`
`Over 50%
`
`30,629
`
`Over 50%
`
`Semiconductor production
`
`6,765,278
`
`Over 50%
`
`Services
`
`LED production
`
`163,455
`
`Over 50%
`
`411,558
`
`Over 50%
`
`Y
`
`Y
`
`Y
`
`N
`
`N
`
`N
`
`Y
`
`Y
`
`Y
`
`Tianjin Samsung LED Co., Ltd.
`
`Tianjin Samsung Opto-Electronics Co., Ltd.
`
`Samsung Display
`
`SU Materials
`
`STECO
`
`SEMES
`
`Samsung Electronics Service
`
`Samsung Electronics Sales
`
`Samsung Electronics Logitech
`
`SVIC #6 Venture Capital Union
`
`2009.05
`
`1994.02
`
`2012.04
`
`2011.08
`
`1995.06
`
`1993.01
`
`1998.10
`
`1996.07
`
`1998.04
`
`2005.07
`
`Camera/camcorder production
`
`177,394
`
`Over 50%
`
`Display panel sales and production
`Display panel component
`production
`Semiconductor component
`production
`Semiconductor/FPD manufacturing
`equipment
`Electronics goods repair services
`
`37,939,965
`
`Over 50%
`
`21,978
`
`Over 50%
`
`93,819
`
`Over 50%
`
`692,721
`
`Over 50%
`
`330,185
`
`Over 50%
`
`Sales of electronic goods
`
`603,933
`
`Over 50%
`
`150,390
`
`Over 50%
`
`42,633
`
`Over 50%
`
`57,146
`
`Y
`
`Y
`
`N
`
`Y
`
`Y
`
`Y
`
`Y
`
`Y
`
`N
`
`SVIC #14 Venture Capital Union
`
`SVIC #20 Venture Capital Union
`
`SVIC #21 Venture Capital Union
`
`SVIC #22 Venture Capital Union
`
`SVIC #23 Venture Capital Union
`
`Hi Pioneer Private Securities Investment Trust 1
`
`Samsung Medison
`
`SonoAce Deutschland GmbH
`
`Samsung Medison Shanghai Medical Instrument Co., Ltd.
`
`2009.05
`
`2011.03
`
`2011.11
`
`2011.11
`
`2012.10
`
`2011.08
`
`1985.07
`
`2001.10
`
`1992.11
`
` 
`
`Total logistics services
`Investment in venture firms
`and new technologies
`Investment in venture firms
`and new technologies
`Investment in venture firms
`and new technologies
`Investment in venture firms
`and new technologies
`Investment in venture firms
`and new technologies
`Investment in venture firms
`and new technologies
`Investment in venture firms
`and new technologies
`Medical equipment
`
`Medical equipment
`
`Medical equipment
`
`Over 50%
`
`26,858
`
`Over 50%
`
`130,290
`
`Over 50%
`
`145,501
`
`Over 50%
`
`34,843
`
`Over 50%
`
`19,179
`
`Over 50%
`
`326,260
`
`Over 50%
`
`113
`
`Over 50%
`
`10,639
`
`Over 50%
`
`N
`
`N
`
`Y
`
`Y
`
`N
`
`N
`
`Y
`
`N
`
`N
`
`
`
`Samsung Electronics Interim Business Report 10 / 170
`
`10
`
`10
`
`10
`
`10
`
`

`
`Name of Subsidiaries
`
`Samsung Medison India Private Ltd.
`
`NexusDX Inc.
`
`NeuroLogica Corp.
`
`Samsung Electronics Vietnam THAINGUYEN Co., Ltd.
`Samsung R&D Institute China-Shenzhen
`(formerly Samsung Network R&D Center, China-Shenzhen)
`Samsung Electronics Switzerland GmbH
`
`Samsung R&D Institute China-Xian
`
`SEMES (XIAN) Co., Ltd.
`
`Samsung Electronics New Zealand Limited
`
`RT SV CO-INVEST, LP
`
`Samsung Display Bac Ninh
`
`Date of
`Establishment
`
`2009.01
`
`2009.07
`
`2004.02
`
`2013.03
`
`2013.03
`
`2013.05
`
`2013.07
`
`2013.07
`
`2013.09
`
`2014.02
`
`2014.07
`
`Major business
`
`Medical equipment
`
`Medical equipment
`
`Medical equipment
`
`Dec 31,
`2014
`Assets
`
`%
`ownership
`
`32
`
`Over 50%
`
`15,470
`
`Over 50%
`
`199,807
`
`Over 50%
`
`Production of telecom products
`
`3,957,700
`
`Over 50%
`
`R&D
`
`12.770
`
`Over 50%
`
`Sale of electronic goods
`
`133,921
`
`Over 50%
`
`R&D
`
`Semiconductor equipment
`
`Sale of electronic goods
`
`Investment in venture firms
`
`9.306
`
`Over 50%
`
`538
`
`Over 50%
`
`70,253
`
`Over 50%
`
`13,046
`
`Over 50%
`
`Display panel production
`
`128,662
`
`Over 50%
`
`Production of TV and monitors
`
`18,735
`
`Over 50%
`
`Classified as
`major
`subsidiary
`(Y/N)
`N
`
`N
`
`Y
`
`Y
`
`N
`
`Y
`
`N
`
`N
`
`N
`
`N
`
`Y
`
`N
`
`Samsung Electronics South Africa Production (pty) Ltd.
`
`Quietside LLC
`
`SmartThings, Inc.
`
`PrinterOn Inc.
`
`PrinterOn America Corporation
`
`2014.07
`
`2001.07
`
`2012.04
`
`2000.04
`
`1986.04
`
`Sale of Air-conditioner
`
`15,581
`
`Over 50%
`
`Sale of smart-home devices
`
`196,910
`
`Over 50%
`
`Sale of printing solutions
`
`Sale of printing solutions
`
`N
`
`Y
`
`N
`
`N
`
`N
`
`N
`
`N
`
`N
`
`Y
`N
`
`N
`
`N
`
`N
`
`N
`
`7,271
`
`Over 50%
`
`22
`
`45
`
`Over 50%
`
`Over 50%
`
`5,898
`
`Over 50%
`
`2,418
`
`Over 50%
`
`20,057
`
`Over 50%
`
`133,442
`0
`
`Over 50%
`Over 50%
`
`16,821
`
`Over 50%
`
`0
`
`0
`
`Over 50%
`
`Over 50%
`
`37,701
`
`Over 50%
`
`PrinterOn Europe Limited
`
`SVIC #27 Venture Capital Union
`
`Samsung Electronics Caucasus Co., Ltd.
`
`SVIC #26 Venture Capital Union
`
`Simpress Comercio, Locacao e Servicos S.A.
`Samsung Electronics HCMC CE Complex Co. Ltd,.
`
`LoopPay, Inc.
`
`Beijing Integrated Circuit Industry International Fund, L.P
`
`SVIC #28 Venture Capital Union
`
`Sale of printing solutions
`Investment in venture firms
`and new technologies
`Marketing
`Investment in venture firms
`and new technologies
`Sale of printing solutions
`Production of CE goods
`Develop and service mobile
`payment
`Investment in venture firms
`Investment in venture firms
`and new technologies
`LED display panel production and
`2007.10
`YESCO Electronics LLC
`sales
`※ Companies with over KRW75 billion in total assets as of December 31, 2014, are classified as major subsidiaries.
`※ See 『II. Businesses Overview』 for additional information about major business segments.
`
`
`2013.11
`
`2014.09
`
`2014.10
`
`2014.11
`
`2005.02
`2015.02
`
`2006.03
`
`2014.12
`
`2015.02
`
` 
`
`Samsung Electronics Interim Business Report 11 / 170
`
`
`
`11
`
`11
`
`11
`
`11
`
`

`
`(Changes in Subsidiaries)
`
`
`
`AMER
`
`Europe/
`MEA/
`CIS
`
`Asia
`
`China Domestic
`
`Total
`
`Increase
`
`Decrease
`
`Dec 31,
`2012
`
`30
`
`61
`
`23
`
`32
`
`20
`
`166
`
`
`
`Dec 31,
`2013
`
`25
`
`55
`
`22
`
`33
`
`18
`
`153
`
`[Americas: 2]
`NeuroLogica Corp.,
`Intellectual Keystone Technology LLC.
`[Europe/MEA/CIS: 1]
`Samsung Electronics Switzerland GmbH
`[Asia: 2]
`Samsung Electronics Vietnam THAINGUYEN Co., Ltd.,
`Samsung Electronics New Zealand Ltd.
`[China: 3]
`Samsung Network R&D Center China-Shenzhen,
`Samsung R&D Institute China-Xian, SEMES (XIAN) Co.,
`Ltd.
`
`
`
`[Domestic: 2]
`Secron, GES
`[Americas: 7]
`Newton Sub. Corp., mSpot, Inc., Deltapoint
`Cardiac Diagnostics, Inc., Samsung Medison
`America, Inc., Intellectual Keystone Technology
`LLC., Samsung Medison Brasil Ltda., Samsung
`Electronics Corporativo, SA de CV
`[Europe/MEA/CIS: 7]
`Samsung Telecoms (UK) Ltd., Samsung LCD
`Netherlands R&D Center B.V, Samsung LCD
`Netherlands R&D Center (UK) Limited,
`General RF Modules AB, Samsung Medison
`France S.A.S., Samsung Opto-Electronics
`GmbH, Samsung Medison Italia S.r.l.
`[Asia: 3]
`Samsung Electronic Philippines Manufacturing
`Corp., Batino Realty Corporation, TNP
`Small/Medium Size & Venture Enterprises Growth
`Promotion Investment Limited
`Partnership(TSUNAMI)
`[China: 2]
`Samsung LCD Netherlands R&D Center
`(HK)Limited, Medison (shanghai) Co., Ltd.
`
`[Domestic : 2]
`SVIC #26 Venture Capital Union
`SVIC #27 Venture Capital Union
`[America: 6]
`RT SV CO-INVEST, LP, Quietside LLC,
`SmartThings,
`Inc., PrinterOn
`Inc., PrinterOn America
`Corporation, 1397011 Ontario Ltd.
`[Europe/MEA/CIS: 3]
`PrinterOn Europe Limited, Samsung Electronics South
`Africa Production(pty) Ltd., Samsung Electronics Caucasus
`Co., Ltd.
`[Asia : 1]
`Samsung Display Bac Ninh
`[Domestic : 1]
`SVIC #28 Venture Capital Union
`SVIC #27 Venture Capital Union
`[America: 5]
`Simpress Comercio, Locacao e Servicos S.A., LoopPay,
`Inc., YESCO Electronics LLC, Paymate Global, Inc. Beijing
`Integrated Circuit Industry International Fund, L.P.
`[Asia : 1]
`Samsung Electronics HCMC CE Complex Co. Ltd.
`※ AMER = America; MEA = Middle East and Africa, CIS = Commonwealth of Independent States
`
`[Domestic: 2]
`Samsung Blue Wings, World Cyber Games
`[America: 1]
`1397011 Ontario Ltd.
`[Europe: 2]
`Samsung Medison Europe B.V
`Nanogen Recognomics GmbH
`[Asia: 1]
`Medison Medical Systems India Private Ltd.
`[China: 1]
`Medison Medical Equipment Shanghai Co., Ltd..
`
`[Domestic: 1]
`RAY
`[America: 2]
`Samsung Telecommunications America LLC.,
`Paymate Global, Inc.
`[China: 1]
`Samsung Electronics Hainan Fiberoptics Co.,Ltd
`
`Dec 31,
`2014
`
`30
`
`56
`
`22
`
`32
`
`18
`
`158
`
`Mar 31,
`2015
`
`33
`
`56
`
`23
`
`31
`
`18
`
`161
`
`Samsung Electronics Interim Business Report 12 / 170
`
`
`
`
`
` 
`
`12
`
`12
`
`12
`
`12
`
`

`
`H. Credit Rating
`
`The Company’s credit rating is assessed by two external credit ratings agencies. As of March 31, 2015, the Company’s
`credit ratings are: A1 and investment outlook is stable, as rated by Moody’s; and A+ and investment outlook is stable, as
`rated by S&P.
`
`
`Ratings
`
`Credit Rating Agency
`
`Rating Range
`
`Note
`
`
`
`Annual
`Review
`
`A+
`
`A1
`
`A+
`
`A1
`
`S&P (USA)
`
`Moody’s (USA)
`
`S&P (USA)
`
`Moody’s (USA)
`
`(AAA ~ D)
`
`(Aaa ~ C)
`
`(AAA ~ D)
`
`(Aaa ~ C)
`
`Securities
`
`Corporate bond
`
`Corporate bond
`
`Corporate bond
`
`Corporate bond
`
`Date
`
`’13.08
`
`’13.12
`
`’14.08
`
`’14.10
`
`
`
`2. Company History
`
`
`(The Information disclosed below outlines major changes to the Company such as asset transfers, M&A, and security offerings)
`
`2011.01.01 Merged with Samsung Electronics Gwangju
`2011.02.16 Acquired shares of Prosonic (100%) and Medison (43.5%)
`2011.04.19 Signed a comprehensive partnership contract (including HDD business transfer) with Seagate
`2011.04.29 Acquired additional shares of Medison (22.3%)
`2011.07.01 Transferred solar cell business to Samsung SDI
`2011.07.22 A