Samsung Electronics Announces Major Business Goals for the Future

Samsung Electronics Co., Ltd. invited analysts to present the company's mid- and long-term visions in the largest-scale Analyst Day event ever hosted by an Asian corporation. The company announced five major goals : - to be one of the top three electronics companies in the world in quantity and in quality by 2010; - to more than double its 2004 sales revenue by the year 2010; - to have 20 number one market share products in the world by 2010 (currently the company has eight number one market share products); - to identify eight growth engines for Samsung's business including their Digital Television (DTV) products and printers and; - to pursue innovation throughout all six main areas of the company's business operations. Samsung Electronics also presented its vision to lead the digital convergence revolution. First, by 2007 Samsung Electronics aspires to be one of the top three companies in the world in terms of new patent holdings. Second, in the semiconductor sector, Samsung plans on achieving 61 billion US dollars in sales with 24 domestic Fabrication Plants (FABs) by 2012. Third, Samsung intends to become the leading producer of all-in-one mobile phones in the Information Technology (IT) sector. Fourth, Samsung will aim to reach 20 billion US dollars in Liquid Crystal Display (LCD) sales by 2010. Finally, for its Digital Media Business (DM), Samsung intends on leading the expansion of the digital consumer world by achieving 30 billion US dollars in sales by 2008. With aggressive business plans tailored for each sector, Samsung Electronics pledged to do what is necessary to increase its value for shareholders. Samsung Electronics hosted their first Analyst Day event on Thursday, November 3, conducting the largest Analyst Day event ever held by an individual company in the Asian region. Samsung Electronics briefed around 300 guests on its current management situation and presented its mid- and long-term visions and business strategies for each individual sector. Among the guests were analysts, institutional investors and IT market experts. 184 of the guests came from overseas, while 105 were from South Korea. Vice Chairman Jong Yong Yun of Samsung Electronics announced that the company will be "one of the top three electronics companies in the world in quantity and in quality by 2010, by increasing the number of our leading market share products from the current eight to more than 20 products and also by more than doubling our 2004 sales." Vice Chairman Yun then identified eight growth engines which Samsung will focus on. They are; large storage memory chips, next generation displays, next generation mobile telecommunications, digital TVs, next generation printers, system LSI, next generation mass storage and finally, air control system. To help stimulate growth in the above eight growth engines, Vice Chairman Yun emphasized that Samsung would aggressively pursue innovation of six main aspects: Products, Technologies, Marketing, Process, Global Operation and Organizational Culture. Significance of Samsung Electronics' first Analyst Day Samsung Electronics' first Analyst Day was aimed at increasing the confidence shareholders have in Samsung by clearly presenting to them and to the world Samsung's aggressive and forward-looking business plan, and will ultimately act as a catalyst in sparking growth which will increase the shareholder value of Samsung Electronics. Senior Vice President WooSik Chu of the Investor Relations (IR) Team said, "Analyst Day is an opportunity for investors and market interest holders to better understand Samsung Electronics' mid- and long-term visions, strategies and futuristic technologies." Chu added that Samsung Electronics will "aggressively engage in investor relations to improve communication with shareholders, demonstrating their importance to Samsung as well as improving the transparency of Samsung's business management process." The event will continue on Friday, November 4, when the participants will attend seminars on forward-reaching technologies and products of Samsung Electronics. The participants will also have the opportunity to visit the company's factories in Kihung and Tangjung. Through various IR strategies, Samsung Electronics has introduced its business management activities to investors as well as to the general public. As a result, Samsung Electronics was named the company that enhanced shareholder value the most in Asia by CFO Asia magazine last October. Samsung Electronics also received Korea's Best Corporate Governance Award from Asset magazine in March. Additionally, Finance Asia magazine named Samsung Electronics Asia's best managed company and IR Magazine named Samsung Electronics the best Asian company with IR activities in the United States.