Message from the CEO 04 05 Dear Samsung Electronics Stakeholder: Enriching brand value with astute marketing In 2011, Samsung Electronics achieved record-breaking Around the world, the Samsung Electronics brand is sales despite the worldwide recession and increased gaining strength and value. By launching judicious and pressure from competitors. We realized sales revenue of consistent marketing campaigns, particularly with sports KRW 165 trillion and operating profit of KRW 16 trillion and promotions and social contributions, we have elevated the maintained a strong financial structure, with a liability ratio brand. Our reputation and growth was confirmed by the of 32.1% and capital adequacy ratio of 75.7%. Interbrand Best 100 Global Brands 2011, which ranked Samsung Electronics 17th, with an estimated brand value Creating greater value brings us closer to you Robust performances across our business areas of USD 23.4 billion. Last year, we maintained strong synergy between our set and component business areas while also expanding brand by launching market-specific innovative products market share with differentiated premium product lines in that deliver new and exciting customer experiences. In our core areas, including mobile phones, TVs and memory addition, our sponsorships at the London 2012 Olympics chips. Led by growth in the AP and sensor segments, we will provide strong profile and brand power. We expect to add further value to the Samsung also saw good performances in our emerging business lines, such as the System LSI Business. Well loved by customers and partners alike The vitality of the Samsung Electronics brand and products The stellar Samsung GALAXY S II sold more than 10 million units worldwide, helping us to achieve the No. 1 comes from the continued trust and appreciation of our global market share for smartphones. In addition, we customers, from shared social values and our sustained the top share in the worldwide TV market for the companywide ethical principles. We believe in “shared sixth year in a row. In the Memory Business, we developed growth.” We establish programs and comply with laws and a 20-nano-class product and expanded our line of highly ethical standards that will safeguard healthy markets. profitable products, such as DRAMs for mobile devices Guided by “right path” management, we are committed to and servers, again securing our No. 1 market share making Samsung Electronics loved and respected by our position. customers and communities. We expect to continue our dominance while maintaining robust growth and performance. In 2012, Samsung Electronics will continue to bring greater value to our customers, communities and employees. Our ultimate goal is to build more prosperity From cutting-edge hardware to strengthened software and a brighter future for everyone. capability Having achieved unmatched global competitiveness in Thank you. hardware, we have been focusing on enhancing our software capabilities in user interface, user experience, design and brand awareness. Those efforts are paying off. Samsung Electronics again won the German iF Design Awards and a total of seven IDEA 2011 awards from the Industrial Designers Society of America. We also ranked second on the list of top US patent assignees, registering a total of 4,894 patents in 2011. Looking ahead in 2012, we expect to further enhance our software capabilities, develop additional competitive business models and offer a trendsetting range of content for business and consumer solutions and services by building distinctive platforms and ecosystems. Geesung Choi Vice Chairman & CEO Samsung Electronics