[컨콜 종합] Samsung Electronics “Enhancing Shareholder Value… Expanding Facility Investment and Promoting M&A”

Samsung Electronics announced a shareholder return policy from 2021 to 2023 that will raise the regular dividend to 9.8 trillion won per year. In addition, it plans to expand strategic facility investment and engage in M&A (mergers and acquisitions).

In the 4Q 2020 earnings conference call held on the morning of the 28th, Samsung Electronics said, “We will actively use our own resources to expand strategic facility investment and promote M&A.” “Environmental, social and governance (ESG) management and compliance We will improve shareholder value by making achievements in the field as well.”

Samsung Electronics maintains a policy of returning 50% of free cash flow (FCF) to shareholders for the next three years as before, and decided to raise the regular dividend to 9.8 trillion won per year.

In addition, a one-time special dividend of 1.07 trillion won (1578 won per share) is to be paid, and the special dividend combined with regular dividends for the fourth quarter is 1932 won per common share and 1933 won per preferred stock. Accordingly, the total dividend amount is about 13,124.3 billion won.

Samsung Electronics’ head of management support office Yunho Choi (President) explained, “Even in the midst of many difficulties such as Corona 19, all stakeholders, including employees and partners, have worked hard to pay special dividends.”

Along with this, Samsung Electronics expected to achieve solid results this year thanks to an increase in overall demand.

Samsung Electronics said, “The demand for memory semiconductors is expected to increase due to the increase in demand for sets and the spread of mid- to low-end 5G models.” .

In the foundry business, strong demand will continue and supply shortage issues will continue in the short term.

Samsung Electronics said, “We will operate flexibly in response to strong EUV 7-nano demand and continue our efforts to secure leadership through 3-nano development,” he said. “Through these efforts, we expect to realize power savings and maximize carbon savings.”

Accordingly, Samsung Electronics plans to accelerate the conversion of 1z nano DRAM and 6G V-NAND, while enhancing cost competitiveness and market leadership by expanding EUV application. System LSI will actively respond with differentiated products in the 5G SoC and high-pixel sensor market, and the foundry will accelerate its growth through expansion of EUV 5 nano mass production and diversification of applications.

Samsung Electronics said, “We will continue to strengthen cost competitiveness, quality, and performance through 1a DRAM production using EUV technology. We will abuse the 6G V NAND production and introduce double stack technology for the next 7G NAND. “I said.

Along with this, Samsung Electronics is planning to actively pursue 5G and expand the popularization of foldable phones.

Samsung Electronics said, “Based on 5G technology, we are conducting trials with major telecommunications companies in the world. We will continue to discover new business opportunities in Latin America and Europe.”

He added, “We are considering various form factors in the mid to long term by continuing to apply new technologies following the Galaxy Z Fold and Flip,” he added. “We will actively engage in abuse of popularization of foldable phones.”

Meanwhile, Samsung Electronics recorded 9.5 trillion won in operating profit in the fourth quarter of last year, up 26.3% from the same period last year. Sales amounted to 61.5 trillion won, an increase of 2.7% over the same period. Annually, the company generated sales of 23.69 trillion won and operating profit of 35.99 trillion won.