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.
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
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)
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)
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
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
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)
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