Becoming the most admired brand in the world requires the unified vision of an entire company.

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Since day one, SCD5000 DuoCam Samsung Electronics has committed itself to becoming a leader in every facet SCD5000 DuoCam SECof its marketworlds first 70nm chip design develops the initiatives. The result is the growth of develops the worlds first 70nm chip design SEC a brand thats synonymous with impeccable standards, process. BusinessWeek ranksand an unwavering dedication to the customer. Through continuous creativity process. BusinessWeek ranks SEC the worlds high quality products SEC the worlds number one Info-Tech company in its annualInfo number one Info-Tech company in its annualInfo and the development of highly innovative products, Samsung has captured the hearts and Tech 100. the worlds number one Info-Tech Tech 100. the worlds number one Info-Tech minds of customers worldwide, which will propel our company and Tech brand well into the future. our 100. company in its annualInfo Tech 100. company in its annualInfo
Samsung electronics annual report 2007

brand marketing

To become the brand most appreciated by people all around the world, Samsung Electronics is carrying out consistent and aggressive brand marketing. We will grow into a premium brand that elicits exceptional pride from those who own our products, through our commitment to innovative customer-focused marketing.

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US$16.9 Billion

BusinessWeek/Interbrand survey of Best Global Brands
BIGGEST GLOBAL BRAND VALUE
Growing Along with Global Enterprises in Electronics and IT We have established solid partnerships and are closely cooperating with major global leaders in various industrial sectors, including Sony, IBM, Microsoft, EMC, Intel, TSMC and Time Warner. In 2007, we partnered with Time Warner to provide bidirectional digital cable broadcasting service in the U.S. We also aligned with major Internet portal sites such as Google and Yahoo in launching phones that can utilize mobile Internet services through these portals. With IBM, we began joint development of a 32-nm logic process. We also concluded a patent crosslicense agreement with Microsoft and agreed with EMC on establishing a global cooperative system in the area of enterprise content management solutions. Looking ahead, we are continuing our efforts to create a solid foundation for future collaboration initiatives. In 2008, we formed partnerships with Intel and TSMC to prepare a next-generation global standard for semiconductor wafers. By establishing a consortium with LG Electronics, Hynix Semiconductor and Sony-Ericsson, we will develop interface technology standards for mobile DRAM. Accordingly, we will continue to strengthen partnerships with major global companies and improve our brand position in the global market. Enhancing Cooperation with Global Premium Brands Our design and marketing alliances are another step toward becoming a premium brand. By introducing unprecedented premium products and developing products with world-renowned designers, we deliver new experiences to our customersproducts they can be proud to own. We collaborated with Giorgio Armani, one of the worlds top fashion designers, in launching mobile phone and LCD TV lines, and worked with the world-famous industrial designer Jasper Morrison in designing mobile phones, side-by-side refrigerators and electric ranges. In addition, we jointly developed a premium music phone with Bang & Olufsen and launched a new concept sports phone with Adidas. Our brand image was further upgraded thanks to our engagement in cooperative marketing campaigns with a number of premium brands that promote quality living, such as BMW and Cartier. We will continue to renew ourselves as a widely admired premium brand by introducing innovative products and marketing activities through systematic cooperation with leading global brands.

Presenting Unique Experiences with Cutting-Edge Digital Products We understand the importance of our customers experiences with our products. To increase product visibility, we operate showrooms where our customers can see, touch and experience the newest digital products firsthand in a number of countries, including the U.S., Russia, Brazil, China and Chile. Samsung Experience, a digital showcase at the Time Warner Center in New York City, has become a new digital attraction, visited by more than a million customers since it opened in 2004. The successful operation of Samsung Experience was evaluated as an exemplary case of experience marketing by major newspapers such as The New York Times and academic institutions such as Columbia University. Gallery Samsung, our digital showroom in Moscow, also is rapidly growing in popularity by providing the best digital experience in Russia, with over 500,000 people already having viewed it. We will further expand our trendsetting showrooms to share new and fascinating digital experiences with our customers. Providing a Wide Range of Benefits for Worldwide Tourists Outstanding displays by Samsung Electronics are attracting the eyes of tourists traveling around the world. For the convenience of global travelers, we have installed LCDs and PDPs in major international airports, including Dallas-Fort Worth International Airport in the U.S., Comodoro Arturo Merino Benitez International Airport in Santiago, Chile, Hong Kong International Airport in China, Murtala Muhammed International Airport in Lagos, Nigeria, London Heathrow Airport in the U.K., Amsterdam Airport Schiphol in the Netherlands, and Mexico City International Airport in Mexico. We also installed mobile phone sculptures in more than 20 international airports such as Charles de Gaulle International Airport in France, Sheremetyevo International Airport in Moscow, Russia, Cairo International Airport in Egypt, Ataturk International Airport in Istanbul, Turkey, and Toronto Pearson International Airport in Canada. In addition, Samsung Mobile Stations are set up at New Yorks JFK International Airport and L.A. International Airport to enable tourists to recharge their digital devices, including mobile phones and notebook PCs, free of charge, where electrical receptacles are lacking. Actively promoting our on-site marketing initiatives, we maintain our brand leadership position by being the brand our customers think of first.
Strategic marketing and technology alliance with Time Warner Samsung Electronics partnered with Time Warner Cable, the second largest cable company in the U.S., to sell its TVs and set-top box products with opencable-application platforms, allowing more customers to use interactive broadcasting services.

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Strategic design alliance with Giorgio Armani Through a groundbreaking alliance with Giorgio Armani, Samsungs portable and home consumer electronics will include a signature line of Armani-designed products. The alliance will combine Armanis iconic design aesthetic with Samsungs advanced technology. Samsung Experience at Time Warner Center in New York City Located in New York Citys Time Warner Center, Samsung Experience is the ultimate showroom for Samsungs digital products. It has attracted more than 1 million visitors since it opened in September 2004.
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Entrepreneurship for the growth of mankind. A vision to become a renowned global leader. A commitment to our customers. These are the pillars in which Samsung Electronics has built its brand value. We are pushing our limits to become the most beloved brand in the world.

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sponsorship

As a global corporate citizen, Samsung Electronics contributes to worldwide sports, culture and academic development through a robust range of programs. We will continue to share the dynamic energy of sporting activities and the emotional experiences of cultural events with our customers, thereby enhancing global harmony and our customers quality of life.

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An Official Partner for the Olympic Games With consistent sponsorship for the Olympic Games, we contribute to humanity while promoting major sporting events. Since signing The Olympic Partner ( TOP) agreement with the International Olympic Committee (IOC) in 1997, Samsung Electronics has sponsored the 1998 Nagano Winter Games, the 2000 Sydney Summer Games, the 2002 Salt Lake City Winter Games, the 2004 Athens Summer Games and the 2006 Turin ( Torino) Winter Games as a Worldwide Partner in the Wireless Communications category. We are also participating as an official partner in the Beijing Olympic Games and Paralympic Games to be held in 2008. As an official partner for the Olympic Games in the Wireless Communications category, we supplied cutting-edge mobile devices, starting with the 2004 Athens Summer Games, to assist successful management of the event. During the event, we provided our unique Wireless Olympic Works ( WOW ) service, a communications system designed to bring the power of mobile wireless technologies to the Games. The system enabled officials and staff to access critical data and to transmit results and special information about the Olympic Games. We have also set up Olympic Rendezvous @ Samsung (OR@S) since the 2000 Sydney Summer Games and provided a resting space where athletes and fans can experience state-of-the-art wireless telecommunications technologies. In addition, we have been an official partner for the Olympic Torch Relay since the 2004 Athens Summer Games and have promoted the excitement of the Olympic Games throughout the world. We concluded a long-term sponsorship agreement with IOC in April 2007, to maintain our support for the event through the 2016 Summer Games. Active Sponsorship for Local Sports We have sponsored a wide range of sports reflecting regional characteristics and sentiments around the world. Since 1998, we have been an official sponsor for the Asian Games, a sports festival for all Asians. Recently, we participated in the 2006 Doha Asian Games and will maintain our official sponsorship for the 2010 Guangzhou Asian Games. In 2007, we provided our first official sponsorship for the Pan American Games, in which 42 countries from the American continents participated, and for the accompanying torch rally held throughout Brazil.

Chelsea FC, 2nd Place in 2008 UEFA Champions League As the official club sponsor of the Chelsea Football Club, Samsung Electronics will play a key part in its global development. Both brands share the same passion for success, as seen by Chelseas second place showing in the 2008 UEFA Champions League. 39th WorldSkills Competition As part of our commitment to social responsibility, we have supported the biennial International Apprentices ( WorldSkills) Competition since 2007. Worldskills is a not-for-profit membership association that promotes vocational education and training.
Soccer, the favorite sport in most countries of the world, is one of our main sponsored sports. We supported major soccer championship games in each continent and acted as a sponsor for some highly renowned soccer clubs. Since 2000, we have been the title sponsor for K-League, held by the Korean Professional Football Association, and have supported the world-famous Chelsea Football Club of the English Premier League since 2005. In 2008, the African Nations Cup and various games of the Asian Football Confederation became Samsung sponsored events. Chivas Football Team in Mexico registered as one of our sponsored teams as well. Other noteworthy sports organizations and events include the International Hockey Federation (FIH) and the World Taekwondo Federation ( WTF ), in addition to World Cup Short Track of the International Skating Union (ISU), and the Cycling Center of the Union Cycliste Internationale (UCI). Each year, we also serve as the Worldwide Sponsor of the World Cyber Games ( WCG), the worlds largest online gaming sport tournament, which was initiated in 2000. To promote e-sports, we operate Samsung Khan, a professional online game team. Nurturing Culture and Education Sponsoring a wide range of cultural and academic activities represents our contribution in nurturing culture and science along with our global neighbors. In this relation, we have been supporting the biennial International Apprentices (WorldSkills) Competition since 2007, and recently agreed to sponsor the Nobel Museums Global Exhibition of the Nobel Foundation from 2008 through 2010. In March 2008, we also supported the Crufts Dog Show, the worlds most prestigious dog show, held in the U.K. By participating as a sponsor for numerous cultural events, we share an emotionally-charged passion for popular competitive events around the globe.

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2008 Beijing Olympic Sponsorship Event Samsung Electronics has been a proud sponsor of the Olympic Games since 1998, and is pleased to continue that tradition at Beijing. Our passion for the Olympics is evidenced through the diverse range of events, like the Dreams of Dragon at the China Millennium Movement, to encourage a friendly, festive atmosphere.

Our wide range of sponsorships around the world is our way of showing our gratitude for our customers in a meaningful way. Through these sponsorships, were able to support local communities on a global scale, while sharing in the spectacle of sport. In 2008, as an official worldwide sponsor of the Beijing Summer Games, we will continue to share our passion with the world and contribute to the betterment of society.

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Communications

R&D

Possessing an innovative R&D capability is critical for Samsung Electronics continued march toward becoming a leading global company. Through strategic investments in R&D and a strong commitment to creative talent development, we will continue to deliver cutting-edge technologies and solutions that will advance us well into the future.

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R&D INVESTMENT [in trillions of KRW ]

5.3492 5.5851 5.9047

R&D HUMAN RESOURCE
2007 [Unit: employee] [Including employees overseas]

32,000 36,000 39,300

Ongoing R&D Investment for Technology Leadership By focusing our R&D efforts on our core businesses and future technology development, we hope to deliver diverse and outstanding achievements, including: the worlds first 50nm-class1Gb DDR2 memory; first 30nm-class 64Gb NAND FlashTM; the worlds smallest and lightest allin-one color laser printer; a drum washing machine boasting the worlds lowest noise and vibration levels; commercialization of the worlds largest (14.3-inch) color e-paper, the worlds largest LCD panel (70-inch) for Full-HD TV; and selection of our Mobile WiMAX as the IMT-2000 standard along with WCDMA and CDMA-2000. Special efforts have been made to manage intellectual property rights, which include our patents. In the U.S., our aggregate patent portfolio totaled approximately 20,600 by the end of 2007. In 2007, we registered 2725 patents in the U.S. alone, which was the second most of any company. Systematic R&D Structure for the Next Generation In May 2008, Samsung Electronics revamped its R&D organization to focus on greater efficiency and future technology development. The new organization is systematically structured in three layers. The Corporate Technology Office (CTO), the synergistic creator of technology, leverages proprietary technology to drive innovation across current business units and enhance core technologies for new business opportunities. The R&D centers of each business focus on the development technology that is expected to deliver the most promising long-term results. In the meantime, the development teams within each product division are responsible for commercializing products scheduled to hit the market within one or two years. Samsung Electronics operates six R&D centers in Korea and a total of 16 centers in eight countries, including the U.S., the U.K., Russia, Israel, India, Japan and China. These centers are tasked with developing best-in-class products and proprietary technology. We have also built a global R&D network encompassing the worlds leading companies, research centers and universities. These research facilities are closely linked, and develop strategic technologies for the future as well as unique technologies that will establish new market trends. Our greatest asset is the extensive pool of talented people who develop value-added, marketleading products that are enhancing the lives of our customers. At the end of 2007, 39,000 people were involved in the development of Samsung products for tomorrow. There are now 3200 PhDs in our talent pool. Through solid alliances with global R&D networks and an efficient support system for our R&D workforces, we will continue to lead the company into the future with many of the worlds most innovative products and technologies. Leading Future Technology Initiatives Our goal is to be the clear leader in future technology development, rising above any challenges in the business environment. We will enhance our technology and market leadership in our current core businesses, while taking aim at future-oriented fields, such as the solutions business, new IT devices, energy resources, the environment, bio-technology and health. Our R&D investment will be further increased to strengthen our proprietary technology leadership in nurturing future growth engines.

Our researchers are working very closely with R&D, proud to be a part of creating the future. Combining our ability with unbridled passion, we will enhance the lives of our customers through the development of the newest, groundbreaking technology.
8.4 Megapixel CMOS Image Sensor At 8.4 megapixels, the latest CMOS Image Sensor from Samsung is the worlds smallest in terms of pixel size. Its high resolution was achieved by implementing advanced light-sensing features and minimized noise levels. Flex-OneNAND For the first time, this new fusion semiconductor enables the use of two types of NAND FlashTM memory in a single device, allowing for greater flexibility and signifying the increasing importance of semiconductors in the design of digital devices. Samsung Electronics developed a 14.3-inch (A4-sized), color electronic paper (e-paper), delivering undistorted images even when the surface is bent. This flexible display does not require any electricity. 14.3-inch e-paper

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Series LCD HDTV The ultra-advanced Series 7 is a major achievement in both technology and design. Its Crystal Rose exterior houses some of the worlds more advanced features, such as InfoLink, WiseLink and a built-in Content Library. YP-S5 MP3 Player At only 14.9mm thick, the YP-S5 is an extremely portable multimedia device. Its full color screen makes watching videos a pleasure while its fold-out speakers are powered by Samsungs DNSe technology to produce rich sound. Its also Bluetooth enabled. CDMA UbiCell The CMDA UbiCell is the worlds first ultra-small CDMA base station. The device attaches to a mobile network connection and is designed to enhance coverage for the home.

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design
Building upon our unique customer-focused design philosophy, Samsung Electronics has continued to push the limits of excellence in becoming a globally acclaimed design powerhouse. Our innovative designs focus on the integration of sophisticated style, versatile convenience and emotional reactions from our customers to create a more enjoyable and fulfilling user experience.
Customer-Focused Design Focusing on designs that satisfy both the experiential and emotional needs of the user, we have taken a more intuitive, holistic approach to product development. Since 1996, we have concentrated on enhancing our product images, particularly the element of uniqueness. In 2007, we launched a holistic design initiative: Create an Emotional Journey. We are designing products that are highly attractive and undeniably stylish, products that have an intuitive user interface and distinctively enhance the sensory experience, clearly distinguishing our products in the era of digital convergence. Global Design Network to Satisfy Every Customer Samsung Electronics operates seven design centers: the Corporate Design Center in Seoul along with centers in London, Milan, Los Angeles, Shanghai, Tokyo and Delhi. Our experts at the six geographically dispersed locations analyze local culture, lifestyles and industry trends, providing input critical to the Corporate Design Center, which conducts global research projects that results in the creation of products that satisfy every consumer and business need. As design becomes a crucial component in driving the profitability and popularity of consumer electronics, we encourage our designers to push the limits of their creativity in order to continue delivering some of the worlds most innovative design solutions. Effective Programs that Nurture Design Expertise We offer a broad range of design-related training programs in order to cultivate a greater number of world-class designers, while improving our overall design competitiveness. The Samsung Design Membership (SDM) program nurtures student designers and promotes the exchange of creative ideas around the world. Our SDM program attracts students around the world who major in design, cultivates their skills and encourages interaction through the exchange of ideas and a great deal of creative brainstorming. At the same time, we operate the Samsung Art & Design Institute (SADI), which is changing the global design education paradigm with one of the worlds most advanced curricula including a special emphasis on practical applications. Excellent Design Acclaimed by Numerous Awards Admired by customers around the world, our outstanding design capabilities have received increasingly frequent validation in several of the industrys prestigious design awards every year. In 2007, the iF Product Design Awards from International Forum Design Hanover honored 26 Samsung products, including LCD TVs, mobile phones, note PCs, and laser printers. We also received 27 prizes at Japans Good Design Awards, including the Gold Prize for our side-byside refrigerator. Samsungs Ultra Edition II mobile phone and portable DMB TV received Best of the Best awards in 2007 along with 21 other awards at the Red Dot Design awards. Our triple-hinge design of the Mobius LCD monitor also won the Industrial Design Excellence Award (IDEA) last year from the Industrial Designers Society of America.

Our approach to design begins with the customer and ends with the customer. With their total experience in mind, we try to create a design thats both beautiful and convenient, providing a sense of comfort, fun, pleasure and interactivity.
SGH-F490 Samsungs SGH-F490 is the phone for people who want to use the Internet whenever, wherever. This powerful multimedia device comes fully equipped with a five megapixel camera and a 3.2-inch, 16:9 wide touch screen. Plus, it is built with Samsungs award-winning Croix user interface, enabling greater convenience and ease of use. Ultra Edition 10.9, SGH-U600 The highly efficient Ultra Edition mobile phone has a 2.2-inch screen display and is a mere 10.9mm thick. Housed in a sleek, modern casing, the Ultra Edition boasts advanced features such as a 3.2-megapixel camera, video recorder, MP3 player and Bluetooth. TOUCHWIZ SGH-F480 The pocket-friendly SGHF480 from Samsung boasts a 2.8-inch touch screen and its new TOUCHWIZ user interface allows for a more rewarding and enjoyable experience through a drag and drop widget system. Built with a strong and versatile set of multimedia features, the SGHF480 also has a five megapixel camera and MPEG4 video recording and editing functions.
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