This presentation material is prepared for investors reference based on data that have not been filed to financial supervisory commission. Business projection data have been extracted from internal market estimate and publicly available sources. Actual business performance may not necessarily be consistent with the projections herein as a result of unexpected changes in the market environment and other conditions. This material is unrelated with any solicitation to purchase Samsung Electro-Mechanics issued securities. The financial information in this document are consolidated earnings results based on K-IFRS.
4Q '13 Results Overview (Billion KRW) 4Q '12 3Q '13 4Q '13 QoQ YoY Sales 2,074.1 2,118.2 1,710.1 408.1 364.0 Quarterly Sales (Unit : Billion KRW) Gross Profit Operating Profit 397.3 428.4 235.1 193.3 162.2 145.0 164.3-35.9 200.2 180.9 2,074.1 2,118.2 19% 1,710.1 (7.0%) (7.8%) (-2.1%) (9.9%p ) (9.1%p ) Pre-tax Profit 149.0 158.8-66.7 225.5 215.7 Net Income 97.0 120.1-49.6 169.7 146.6 (4.7%) (5.7%) (-2.9%) (8.6%p ) (7.6%p ) EBITDA Margin 14.5% 15.4% 6.3% 9.1%p 8.2%p ROE 16.2% 15.4% -6.5% 21.9%p 22.7%p Net income attributable to owners of the parent 4Q '12 3Q '13 4Q '13
2013 Results Overview (Billion KRW) 2012 2013 YoY Yearly Sales Sales 7,912.8 8,256.6 343.8 Gross Profit 1,519.4 1,547.3 27.9 7,912.8 4% (Unit : Billion KRW) 8,256.6 Operating Profit 580.5 464.0 116.5 (7.3%) (5.6%) (1.7%p ) Pre-tax Profit 583.4 436.0 147.4 Net Income 440.8 330.2 110.6 (5.6%) (4.0%) (1.6%p ) EBITDA Margin 14.6% 13.2% 1.4%p ROE 14.9% 10.6% 4.3%p 2012 2013 Net income attributable to owners of the parent
2013 Financial Analysis (Billion KRW) End of 2012 3Q '13 End of 2013 QoQ YoY Total Assets 6,891.5 7,411.5 7,185.3 226.2 293.8 Current Assets 2,631.2 2,782.7 2,650.8 131.9 19.6 * (Cash) (683.5) (607.2) (738.5) (131.3 ) (55.0 ) Non Current Assets 4,260.3 4,628.8 4,534.5 94.3 274.2 Total Liabilities 2,925.8 3,117.7 2,927.3 190.4 1.5 * Debts (Net Debts) 1,521.1 (837.6) 1,634.8 (1,027.6) 1,605.9 (867.4) 28.9 (160.2 ) 84.8 (29.8 ) Total Shareholder s Equity 3,965.7 4,293.8 4,258.0 35.8 292.3 Current Ratio 134.3% 140.0% 148.3% 8.3%p 14.0%p Capital Adequacy Ratio 57.5% 57.9% 59.3% 1.4%p 1.8%p Debt Ratio 73.8% 72.6% 68.7% 3.9%p 5.1%p Net Debts Ratio 21.1% 23.9% 20.4% 3.5%p 0.7%p Cash = Cash + Deposit Net debts = Debts - Cash
1. LCR Quarterly Sales 4Q 13 Results 448.2 EMC / Chip-R 498.5 (Billion KRW) 418.1 MLCC - Sales decreased due to inventory adjustments by customers - Sales portion by application : Mobile 60%, PC 21%, Display 19% MLCC (91%) (86%) (85%) EMC/Chip-Resistor - EMC : Sales decreased due to weak demand of mobile device - Chip-Resistor : Shipments increased for memory module, 4Q '12 3Q '13 4Q '13 while sales for mobile decreased Yearly Sales 1,806.0 EMC/ Chip-R MLCC (91%) 1,894.5 (86%) 2012 2013 2013 Achievements Expansion of global market share by expanding value-added product - Solution product grew such as acoustic noise and soft-termination - Specialized product development by internalization of raw materials and manufacturing process Build the basis of growth by technology leadership - Development of core materials such as ferrite sheet, etc
2. ACI Quarterly Sales 4Q 13 Results 489.4 HDI 482.8 (Billion KRW) 440.1 PKG - Sales of FC-CSP declined due to inventory adjustments by customer - FC-BGA sales decreased slightly due to weak demand HDI PKG (67%) (56%) (53%) - Sales for smartphone decreased by year-end inventory adjustments - Rigid-Flex sales increased due to solid demand for tablet PC 4Q '12 3Q '13 4Q '13 Yearly Sales 2,001.8 HDI PKG (66%) 1,864.5 (60%) 2012 2013 2013 Achievements Market share extended and new technology strengthened - BGA sales grew led by increasing sales of Embedded FC-CSP - Obtained differentiated technology by internalization of raw materials and production facilities Growth driver by application diversification - Rigid-Flex development for wearable devices and Sub-Board
3. CDS Quarterly Sales 4Q 13 Results 461.0 Power 424.5 (Billion KRW) 389.3 WS - WiFi : Sales decreased due to year-end SET inventory adjustments - ESL : Shipments for Europe expanded and gained new market ( Electronic Shelf Label) WS (53%) (55%) 1,656.4 1,700.6 Power (53%) 4Q '12 3Q '13 4Q '13 Yearly Sales Power - TV : Sales increased by peak season and strong UHD TV demand - Adapter : Earnings down led by inventory adjustments and ASP drop 2013 Achievements Shipments for mobile increased and competitiveness strengthened - Sales of WiFi module and adapter grew - Internalized IC, S/W, and material and reinforced product line-up WS (53%) (57%) 2012 2013 Expanded new business base through technology convergence - ESL, Power module for LED lighting and server, WPT, etc ( Wireless Power Transmitter)
4. OMS Quarterly Sales 4Q 13 Results 569.2 Motor 681.9 (Billion KRW) 453.4 Camera Module - Earnings decreased due to inventory adjustments by major customer - Increasing design-in activities for overseas customers (Chinese, etc) Camera Module (75%) (80%) (70%) Motor - HDD : Sales of 3.5" new product and 2.5" slim product increased - Mobile : Sales decreased due to inventory adjustments 4Q '12 3Q '13 4Q '13 Yearly Sales 2,068.4 Motor Camera Module (75%) 2,649.6 (79%) 2012 2013 2013 Achievements Camera module achieved 2 trillion won in sales - Strengthened internalization ability of lens and actuator, etc - Increased high-resolution camera module (8MP ) sales; Expanded global market share Constructed basis of HDD motor growth - Enhanced small size/slim (5mm, 7mm) product line-up
Market Outlook (2014) MLCC - Solution MLCC demand to increase - Small product for wearable device to grow EMC/Chip-Resistor - EMC demand to grow due to requests for noise reduction from SET makers HDI - Demand of Regid-Flex substrate to increase for wearable and flexible device PKG - Embedded and China market to grow high - New CPU substrate demand to increase WS - Market to increas led by CT development ( Communication Technology) - ESL demand to grow (Europe, North America) Power - Demand for premium TV (UHD, curved, etc) to grow - Resonant WPT market to open Camera Module - High resolution market (16MP ) to grow - Adoption of new features to expand (OIS, etc) Motor - High-capacity HDD to grow by data center, etc - Demand for mobile and CE to increase ( Consumer Electronics)
[Appendix 1] Income Statement (Billion KRW) 4Q '12 3Q '13 4Q '13 QoQ YoY Sales 2,074.1 2,118.2 1,710.1 408.1 364.0 Cost of Sales 1,676.8 1,689.8 1,475.0 214.8 201.8 Gross Profit 397.3 (19.2%) 428.4 (20.2%) 235.1 (13.7%) 193.3 (6.5%p ) 162.2 (5.5%p ) SG&A 252.3 264.1 271.0 6.9 18.7 Operating Profit 145.0 164.3-35.9 200.2 180.9 (7.0%) (7.8%) (-2.1%) (9.9%p ) (9.1%p ) Non-operating Profit and Loss 4.0-5.5-30.8 25.3 34.8 Pre-tax Profit 149.0 158.8-66.7 225.5 215.7 (7.2%) (7.5%) (-3.9%) (11.4%p ) (11.1%p ) Income Taxes 46.1 35.1-18.2 53.3 64.3 Net Income 97.0 120.1-49.6 169.7 146.6 (4.7%) (5.7%) (-2.9%) (8.6%p ) (7.6%p ) Net income is the income attributable to controlling interest
[Appendix 2] Statement of Financial Position (Billion KRW) End of 2012 3Q '13 End of 2013 QoQ YoY Total Assets 6,891.5 7,411.5 7,185.3 226.2 293.8 Current Assets 2,631.2 2,782.7 2,650.8 131.9 19.6 Quick Assets 1,793.2 1,940.3 1,762.7 177.6 30.5 Inventory Assets 838.0 842.4 888.1 45.7 50.1 Non Current Assets 4,260.3 4,628.8 4,534.5 94.3 274.2 Investments 1,368.2 1,419.3 1,264.6 154.7 103.6 Tangible Assets 2,586.2 2,892.6 2,949.8 57.2 363.6 Others 305.9 316.9 320.1 3.2 14.2 Total Liabilities 2,925.8 3,117.7 2,927.3 190.4 1.5 Current Liabilities 1,959.1 1,988.3 1,787.4 200.9 171.7 Non Current Assets 966.7 1,129.4 1,139.9 10.5 173.2 Total Equity 3,965.7 4,293.8 4,258.0 35.8 292.3 Capital Stock 388.0 388.0 388.0 - -