The Samsung Town, major office park in Seocho-gu in Seoul, which serves as the IT and electronics hub for the multinational corporation Samsung. (image: Wikimedia Commons)
SEOUL, Korea, March 14, 2014 (Korea Bizwire) – Samsung Electronics Co., Ltd, convened its 45th Annual General Meeting of Shareholders on March 14 at its headquarter in Seocho-dong, Seoul. The meeting was attended by shareholders and institutional investors. Agenda items included approval for the Consolidated Statements of Financial Position, Income, and Cash Flow. Dividends for shareholders and remuneration for the Board of Directors were also voted on.
At the meeting, Samsung Electronics reported its business performance for 2013. Its consolidated revenue for full year 2013 reached KRW 228.69 trillion, a 14% increase from 2012, and its consolidated operating profit increased by or 27%, or more than KRW 7 trillion, to KRW 36.79 trillion. To prepare for future business, KRW 23.8 trillion was executed in capital expenditure and R&D investment totaled KRW 14.32 trillion.
Oh-Hyun Kwon, Vice Chairman and CEO of Samsung Electronics, said, “Despite a challenging business environment in 2013, the company was able to achieve record revenue and profit and maintain its leadership in the global IT industry. This was possible thanks to the dedication of our employees and the continued trust and support of our shareholders.”
Vice Chairman Kwon added, “Although macro uncertainties are expected to continue in 2014 and competition will intensify in the marketplace, we will strive to turn these challenges into opportunities and improve our business results to bring increased value to our shareholders.”
At the meeting, the Board recommended a total dividend per share of KRW 14,300 for common shares and KRW 14,350 for preferred shares, including the interim dividend of KRW 500 per share paid in August 2013. This marked a 79% increase in dividend per share for 2013. In 2014, the Board will determine the amount of shareholder return through a comprehensive review of the business environment with a goal to significantly increase the percent of FCF allocated to the shareholder return in comparison to 2013.
A total remuneration ceiling for Directors of KRW 48 billion was also put forward by the Board in the meeting.
The company’s management direction for 2014 as follows.
Increasing profitability through enhanced competitiveness and sound management
Samsung Electronics aims to solidify its leadership in core business areas, including mobile devices, TVs, memory and other semiconductor products, through premium product development and technological differentiation.
In growth businesses such as home appliances, network equipment, and system LSI, Samsung will focus on developing key technologies and expanding the customer base for future growth.
The company will also improve the efficiency of company-wide resource management, including investment, and continue efforts to enhance its global supply chain management capability.
Strengthening risk management and future competitiveness for sustainable growth
To continue growth momentum in the mid to long term, Samsung will enhance its ability to respond promptly to uncertainties and challenges in the business environment, while taking preventive measures to thoroughly manage risk related to potential compliance issues.
Maximizing the competitive advantages of its value chain and pursuing technological innovation to reinforce its market leadership will continue as priorities for sustained growth. In the set business, Samsung will continue to innovate and develop new product categories, such as future mobile communications, UHD, and energy efficient technologies. For components, Samsung will focus on future technologies such as cutting-edge process, packaging, and multi-processing solutions in semiconductors, and flexible OLED.
At the same time, the company will continue efforts to develop and secure advanced electronics materials that will become major sources of competitiveness in future growth engines such as the enterprise business.
Samsung will also seek to enhance communication with various stakeholders while continuing to make social contributions to communities a priority.
Delivering shareholder-focused management
Samsung is committed to the principle that strong business performance ultimately enhances value for shareholders. In 2014, Samsung will continuously strive to deliver robust business performance.
Additionally, the company will cultivate stronger communications with its shareholders and the investor community at large to proactively share its vision for sustainable future growth.
News Source: Samsung Electronics
Web Site: http://www.sec.co.kr
