Earnings Release 4Q 2003
15 Janeiro 2004 - 5:45AM
UK Regulatory
RNS Number:2623U
Samsung Electronics Co. Ld
15 January 2004
January 15, 2004
Earnings Release 4Q 2003
Samsung Electronics
Disclaimer
This report includes 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 import.
Similarly, such statements that describe the companys business strategy,
outlook, objectives, plans, intentions or goals also are forward-looking
statements.
All such statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those in this material.
The financial results for 4Q of 2003 have been prepared on an
un-audited basis, and may be subject to change during the
independent auditing process.
Sales and Profits
(Unit : Trillion KRW) Q4 03 Q3 03 Growth FY 2003
Sales 12.89 11.26 14.4% 45.38
Domestic 2.53 2.34 7.7% 9.35
Export 10.36 8.92 16.2% 34.23
(us$, Bn) 8.76 7.59 15.31% 28.7
Profit
Operating Profit 2.63 2.05 27.9% 7.19
Net Profit 1.86 1.84 1.1% 5.96
Q4 Results Analysis (Q-on-Q)
Memory
> Sales & Profits Continue to Grow
- Increased shipment of highly profitable Flash
*66 mil. --> 82 mil. 512M. Eq
. - Greater revenue contribution of Flash
*32% --> 37%
> DRAM Blended ASP up
- Year 03.4Q Low $6 (256M eq.)
- Declining DDR prices since Nov. due to slow demand
. - Strong Sync prices
*Healthier Server, Network, Consumer demand
> 12" Ramp-up (as of 04.Jan., wafer-in)
- Line 11 (MPS) : 10K/Month, DDR (0.10 um)
- Line 12 : 25K/Month, DDR (0.10 um), NAND (0.09um)
LCD
> Sales & Profits Improving :
- Shipment : Large panels 6.4Mil. (24%up)
*N/B panels 3.1 Mil (21%up)
*TV panels above 22" 144K (122%up)
- Price : Healthy pricing driven by strong N/B panel demand
*14.1" (Sep $185 --> Dec. $215, 16%up)
> 5G Lines : Successful Ramp-up
- Line5 : Full capacity of (100K) in Aug.
- Line6 : Faster ramp-up and higher yields (Dec. Capa : 35K)
System LSI
> Sales & Profits Improving
- Display Driver IC (DDI) revenue : (35%up)
*Strong large size and HHP panel demand
- System On a Chip (SOC) revenue : (24%up)
*Expanding high-end business with 533MHz MAP
Telecommunication
> Handsets
- Shipments: 15.5M (4%up)
*Highest quarterly shipment
*Seasonality & successful new model launching
--> Stronger European & US sales
* Higher shipment volume in GSM (14%)
- ASP: Export 2% up & Domestic 6% down
*Export: Better sales of new high-end models
*Domestic: Price competition on the rise
- Sales increased but profits flat due to
higher marketing expenses
> Network
- Increased SKT, KTF EV-DO system supply
- Continued supply of CDMA 1x to Indonesia Mobile 8/ PT Telkom,
Japan KDDI, and China Unicom
Digital Media
> Sales (14%up) and Profits (47%up) Increasing
: Year-end Seasonality
> Overseas production: Year 02. 70% --> Year 03. 80%
> Progress by Product
- Digital TV : Strong DLP/ LCD/ PDP shipment (Y-on-Y 107%up)
*Market leader in >$3,000 high-end segment in US
- Monitor : Keeping market leadership with 17% share
- Printer : Growth mainly coming from own branded Lasers
(Y-on-Y 30%up)
Home Appliances
> Sales Increased by 11%
> Intensifying Business Strategy based on Premium Products
- Hauzen, side-by-side refrige, and drum washing machine
Sales by Division
(Unit : Trillion KRW) Q4 03 (Weight) Q3 03 (Weight) Growth
Semiconductor 5.86 (46.0%) 4.76 (42.0%) 23.3%
Memory 3.02 (23.4%) 2.55 (22.6%) 18.4%
TFT-LCD 1.96 (15.2%) 1.38 (12.2%) 42.3%
System LSI 0.51 (4.0%) 0.44 (3.9%) 16.3%
Telecommunication 3.94 (31.0%) 3.74 (33.0%) 5.4%
Wireless Handsets 3.60 (27.9%) 3.41 (30.3%) 5.4%
Digital Media 2.13 (16.0%) 1.87 (17.0%) 14.0%
Home Appliances 0.86 (7.0%) 0.77 (7.0%) 11.2%
Total 1289 (100%) 11.26 (100%) 14.4%
Operating Profit by Division
(Unit: Trillion KRW) Q4 03 (Profit Q3 03 (Profit FY Q3 (Profit
Margin) Margin) Margin)
Semiconductor 2.02 34.5% 1.35 28.4% 4.50 25.2%
Telecommunication 0.73 18.5% 0.75 19.9% 2.70 19.0%
Digital Media 0.003 0.1% 0.002 0.1% 0.15 1.9%
Home Appliances - 0.08 -8.8% - 0.05 -6.0% -0.11 -3.3%
Total 2.63 20.4% 2.05 18.2% 7.19 16.5%
Financial Analysis
(Unit: Trillion KRW) End of Dec. 03 End of Sept. 03 Change
Assets 39.20 36.39 2.81
Liabilities 9.79 8.50 1.29
(Debt) (1.16) (1.16) No Change
Shareholders Equity 29.41 27.89 1.52
(Paid-in Capital) (0.90) (0.89) (0.3 Bn)
Net Debt / Equity Ratio -23% -21% - 2% point
Q4 03 Q3 03 Change
R O E* 26.0% 27.3% -1.3% point
Profitability (Net Income/ Sales) 0.14 0.16 -0.02
Asset Turnover (Sales / Asset) 1.36 1.28 0.08
Leverage (Asset / Equity) 1.32 1.30 0.02
* Annualized
Profitability Analysis
(Unit: Trillion KRW) Q4 03 Q3 03 Growth (Change)
Sales 12.89 11.26 14.4%
Gross Profit 4.74 3.65 29.7%
(%) (37%) (33%) (5% point)
SG & A 2.11 1.60 32.1%
(%) (16%) (14%) (2% point)
Operating Profit 2.63 2.05 27.9%
(%) (20%) (18%) (2% point)
Net Profit 1.86 1.84 1.1%
(%) (14%) (16%) (-2% point)
Cash Flow
(Unit: Trillion KRW) Q4 03 Q3 03
Cash* (Beginning of period) 7.07 4.97
Cashflow from Operation 3.49 3.46
Net Profit 1.86 1.84
Depreciation 1.06 0.97
Loss from Equity method 0.10 0.04
decrease in Working Capital 0.47 0.61
(Inventory, A/R, Accrued Expenses)
Cashflow from Investment (2.24) (1.36)
CAPEX (1.90) (1.42)
Cashflow from Financing (0.33) (0.002)
Decrease in Debt 0.66 0.13
Dividends - (0.08)
Repurchase of Shares (1.00) -
Net decrease in cash 0.92 2.09
Cash (End of period) 7.99 7.07
* Cash = cash + cash equivalent + short-term financial instruments + marketable
securities
Capex Plan
(Unit: Trillion KRW) 2004 2003 Change/Growth
Sales 46.34 43.58 6.3%
Capex 7.92 6.74 1.18
Semiconductor 6.97 6.05 0.92
Telecommunication 0.30 0.26 0.04
Others 0.65 0.43 0.22
R&D 8.5% 8.1% 0.4% point
This information is provided by RNS
The company news service from the London Stock Exchange
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