Wireless Market TrendsWireless Market TrendsWireless Market TrendsWireless Market Trends

AchievementsAchievementsAchievementsAchievements

SAMSUNG MOBILE1

Market share

SAMSUNG MOBILE2

Nokia(35.1%)

Motorola(14.8%)

Ericsson(6.7%)

Siemens(7.4%)

Others(25%)

Panasonic(3.9%)

399M units

Samsung(7.1%)

Nokia(35.1%)

Motorola(15.6%)

Samsung(9.5%)

Siemens(8.5%)

Ericsson(5.9%)

Others(22.1%)

Panasonic(3.3%)

193M units

Samsung showed big growth

<Source : Gartner Dataquest>

Samsung(5.0%)

413M units

Nokia(30.6%)

Motorola(14.6%)

Ericsson(10%)

Siemens(6.5%)

Others(28.1%)

Panasonic(5.2%)

Y2000 Y2001 Y2002. 1H

Sales & Revenue

SAMSUNG MOBILE3

19987.5M unitsU$ 2.2 bil.

199917M unitsU$ 4.1 bil.

200022M unitsU$ 4.7 bil.

200129M unitsU$ 5.5 bil.

5.0 bil

4.0 bil

3.0 bil

2.0 bil

1.0 bil

0U$1995 1996 1997 1998 1999 2000 2001 2002

6.0 bil

Domestic

Export

Brand Equity

SAMSUNG MOBILE4

6.3SAP43

6.6Canon41

1.0Siemens98

3.8Motorola66

......

...

6.4Samsung Electronics42

15.0SONY20

35.0NOKIA5

52.8IBM3

65.0Microsoft2

1

Rank

67.0Coca-Cola

ValueCompany

Unit: U$ bil.

< Source: Interbrand >

7.37NIKE35

9.1MERCK33

3.4Motorola74

3.5ERICSSON71

......

...

8.31Samsung Electronics34

13.9SONY21

29.9NOKIA6

51.2IBM3

64.0Microsoft2

1

Rank

69.4Coca-Cola

ValueCompany

Unit: U$ bil.

< Source: Interbrand >

As of 2001 As of 2002

Samsung As a Fastest Growing Brand 2001: 422001: 42ndnd 6.4 6.4 bil bil �������� 2002: 342002: 34thth 8.3 8.3 bilbil

Device Solution Network38%

DigitalMedia Network

31%

TelecommunicationNetwork

22%

9%

Year : 2000Year : 2000

Digital ApplianceNetwork

Digital ApplianceNetwork

Device Solution Network27%

11%DigitalMedia Network

34% TelecommunicationNetwork

28%

Year : 2001Year : 2001

Revenue Breakdown

SAMSUNG MOBILE5

SamsungSamsungSamsungSamsung’s s s s StrengthStrengthStrengthStrength

SAMSUNG MOBILE6

Unique Design

• Slimmer, Lighter, Smaller • Satisfying Sophisticated Market Need

Technology Leadership• First in the Market • Watch Phone, TV Phone, Dual Screen Phone, Camera PhoneCDMA2000 1X, PDA Phone.

Top Quality Control

• 6 Sigma Program• Quality control (TL 9000)

Marketing Excellency

• Enhance brand image• CRM• Sports Marketing

Samsung Strength

7 SAMSUNG MOBILE

In-house Synergy• Leading the DigitalConvergence Revolution

• Memory, System LSI, TFT-LCDOptical Component …..

1. Technology Leadership

SAMSUNG MOBILE8

Watch Phone (1999.12) TV Phone (2000.01) Dual Screen Phone (2000.03)

Camera Phone (2000.07) Palm Powered Phone (2001.09)Cdma2000 1x (2000.12)

2. Unique Design

SlimmerSlimmerSlimmer

LighterLighterLighter

SmallerSmallerSmaller

Leading Edge Technology

SatisfyingSophisticated

MarketNeeds

Flip & Bar Folder Advanced

9 SAMSUNG MOBILE

3. Top Quality Control

SAMSUNG MOBILE10

[Rate of Repair, Germany, 2002. 6]

“ … Products in the below list are not credible because of their frequent troubles in average, but Samsung products are exceptional”

“ … Samsung mobile phones’ average repair rate is 10 times lower than that of NOKIA…”

Successful Top Quality Control Based On 6 Sigma Program“Repair Report” in CONNECT Magazine in Germany

Focus On Mid/High-end Product for Pursuit Premium BrandProducts developed to meet various consumer's needs

The Market can be divided into six distinctive lifestyle segments

4. Marketing Excellency (Consistent Marketing Strategy)

Business

Laggard UtilitarianR210S

N100

N500

R200S

TechieStylish

S100T100

N620

A100/A110

A400

A500

N400

Q200

A300

V100

FashionInformation at your fingertipsEfficiency Organization

Technology for technology's sakeTechnological innovation

Ubiquitous accessGadgets

Culture Style & Elegance

Aesthetics Latest trends in technology

11 SAMSUNG MOBILE

5. In-house Synergy

SAMSUNG MOBILE12

Home Network• DTV• Home Gateway• Home Server• DVDP

Mobile Network• HHP• N/B PC• Digital Audio• Wireless PDA

Office Network• Display• IP Terminal• Printer• PC

Memory

Wireless

System LSI

Precision Mechatronics

TFT - LCD

Optical Component

Core Components

Leading the Digital Convergence Revolution. Core Components (Memory, LCD, LSI, Chips, etc.). Consumer Electronics (A/V, Computer, etc.). Telecom N/W and S/W Center Digital Convergence Solution

Market ForecastMarket ForecastMarket ForecastMarket Forecast

SAMSUNG MOBILE13

Market Forecast

SAMSUNG MOBILE14

Global Handset Shipments

2002 415 M 2002 415 M �������� 2003 2003 435 435 M (5%M (5%��������))Because ;

1. Service Carriers Low Level Investment in New Services 2. On-Going World-Wide Economic Recession 3. Absences of Major Replacement Demand Drivers Differentiation

* There are Still Remain Downward in Size of the Market

2.5G (GPRS, 1X / EV-DO)

- Increase in Multimedia Phones (Color, Camera etc.)

Regional Market Trends

SAMSUNG MOBILE15

Domestic- Boosting Demand on Color, Mobile Internet, Camera Phones

. Color Device Sales will be Dominant in the Market in 2003

. EV-DO will be Genuine Driver to Increase the Data Services

OverseasMarket will be Driven By Replacement Demand

.Penetration : 2001: 70% 2002: 76% 2003 : 79% (Gartner Estimate)

. Increase Demand on High-end, High Functional Up-Market

. GPRS, MMS, Color, Camera etc.

Rising Competition Between CDMA & GSM Operators. TDMA Operators’ System Transition to GSM / GPRS / EDGE. CDMA Operators’ System Up-grade to CDMA 1X

Keep High Growth in 2003 (India - CDMA, China – 1X, GPRS). Market will be Driven By Low-end Product

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Increase in Color Device Shipments 2002 17% ���� 2003 38%Replacement Demand Driver

Increase in Camera Device Shipments 2002 3.7% ���� 2003 6.4% Intensify MMS Functionality

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Future Applications – Demand Driver

SAMSUNG MOBILE16

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Strategic Direction & VisionStrategic Direction & VisionStrategic Direction & VisionStrategic Direction & Vision

SAMSUNG MOBILE17

Leading Color / Camera- Intensify Product Differentiation (Functionality)- Increase Mid / High-end Market Volume- Maintain High Operating Profit Margin

Leading Position in Emerging Market- China, Russia, Indonesia etc. - Keep Price Competitive Advantages in the Market

Leading Position in Multimedia Devices- Strategic Co-operation with C/P, Solution Makers etc.

Near Term Strategic Direction

SAMSUNG MOBILE18

- World Best, Leading Product : Color, Polyphonic, GPS, VOD e.t.c.���� Keep High ASP and Profit Margin

Samsung Preparation..

TFT Color LCD GPRS / Color Built-in Camera Multimedia

65K40 PolyWAP1.2

65K UFB-LCD40 PolyWAP1.2Java, EMSIrDA

TFT-LCD40 PolyWAP2.0Java, MMSDigital Camera

65K,TFT-LCD40 PolyWAP2.0MMS, IrDADigital Camera

SAMSUNG MOBILE19

Mobile Multimedia Leader & Premium Brand

OperatorOperatorGrowing revenue

Increasing air timeEnhancingperceived value

End UserEnd User

Technology Leadership Design Leadership Mobile Contents Service

Global Operation Capability

Vision

SAMSUNG MOBILE20