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2006 Annual Report 34 2006. 1. 1 ~ 2006. 12. 31

Contents 02 04 08 10 18 20 22 24 26 30 32 34 35 36 37 37 37 38 38 38 38 The 1nside Edge that shapes the Future 2010 3 40 44 46 48 49 50 51 R&D 3 R&D 8

SAMSUNG ELECTROMECHANICS Our Possibility The 1nside Edge that shapes the Future. 02 03

CEO s Message The 1nside Edge that shapes the Future SAMSUNG ELECTROMECHANICS 2006 Annual Report 04 05

SAMSUNG ELECTROMECHANICS CEO s Message The 1nside Edge that shapes the Future 2006 Annual Report 06 07

Company History SAMSUNG ELECTROMECHANICS 1973 ~ 2006 1973~1974 1977~1980 1983~1991 1993~2001 1973 03 03 11 Tuner, DY, FBT, 11 11.1 1974 03 1996 10 1977 05 1979 01 4.5 15 02 1980 10 1983 03 1987 02 06 500 1 5,000 1 1988 05 1989 04 1991 11 5 1993 06 Tuner, DY, FBT, 1994 05 Tuner, Head, Drum, Drum Motor 05 Tuner, DY, FBT, MLCC, Speaker 1995 11 10 2 10 ISO 14001 12 ISO 14001 12 1997 07 DY 1 11 27 2 11 1 1998 03 ISO 14001 05 2 08 08 2 BGA 1999 04 6SIGMA 06 07 Y2K 08 www.samsungparts.com 10 MLB, MLCC 2000 02 06 11 20 12 2001 03 2002~ 05 06 08 10 12 TL9000 2004 02 30 05 06 06 08 2005 03 WinWin 05 KAIST 06 07 11 ITSOC 2002 04 05 07 2 11 11 2003 04 Single PPM 05 07 3 08 ISO14001 09 ISO14001 10 11 6SIGMA 2006 05 06 3 1 06 08 WinWin 09 True Company 12 08 09

2,171,000,000 Digital Players 1 HDI 21 7 Review of product

2006 Annual Report Materials Technology Materials Technology HDI/PKG MLCC PRECISION MOTOR Inside SAMSUNG ELECTROMECHANICS HDI/PKG High Density Interconnection / Package HDI BuildUp HDI 1 PKG CSP FCBGA MLCC MultiLayer Ceramic Chip Capacitor MLCC MultiLayer Ceramic Capacitor, 150 300 LCD TV 700 MLCC MLCC 0402(0.4mm 0.2mm) MLCC PC PCS Camera TV VCR PRECISION MOTOR PDA 12 13

2006 Annual Report RF Technology RF Technology DIGITAL TUNER/DMB TUNER MOBILE RF/NETWORK MODULE POWER Inside SAMSUNG ELECTROMECHANICS DIGITAL TUNER/DMB TUNER DTV STB DVD TV Front End DMB HHP PDA TV CD DMB DigitalTV DigitalSTB DVDR/W VCR HHP PDA Car Navigation N/BPC MOBILE RF DATA SAW TCXO Crystal Antenna FEM PDA NETWORK MODULE LAN AP Bluetooth POWER LCD TV PDP TV Display SMPS PDP TV LCD TV LCD 14 15

2006 Annual Report Optic Technology Optic Technology ISM LED LED BLU Inside SAMSUNG ELECTROMECHANICS ISM Image Sensor Module 07 1 PDA OA LED Light Emitting Diode LED LCD 2010 4 LED LED AV Back Light PDA LED BLU Back Light Unit LED BLU CCFL Hg CCFL BLU LCD LCD TV LCD 16 17

At a Glance 6,587,000,000 Global People

Major Business Activities 05 May > SAMSUNG ELECTROMECHANICS < 04 Apr 2006 01 Jan PCB PCB 3,805 2006 Major Business Activities > 06 Jun < 06 Jun 12 Dec > 02 Feb 258 2007 03 Mar 2 1nside Edge 04 Apr 05 May 06 Jun 06 Jun 3 1 07 Jul PCB 3,805 08 Aug WINWIN 12 Dec 12 Dec 08 Aug > 1 PCB PCB 2 258 04 3 258 4 5 6 3 1 7 PCB 3,805 2008 3,805 PCB 2,600 12 20 21

Research & Development 06 Jun > SAMSUNG ELECTROMECHANICS < 05 May 2006 03 Mar 0402 MLCC MLCC New Products & Technologies 04 Apr > 06 Jun > > 06 Jun Digital Top Leader 04 Apr MLCC 04 Apr 05 May 0402 MLCC 06 Jun UMTS FEM 06 Jun LED SUNNIX 09 Sep LCD TV LED BLU 09 Sep CSP 09 Sep 10 Oct 1.7 LED 11 Nov MLCC < 09 Sep 3 3 XM Satellite XM Passport ODM 4 5mm 5mm 200 200 7.8 8.0 4.5 130 7.5 7.5 4.2 30 4.7 5.0 5mm 3 5 0402 MLCC 0.4mm 0.2mm 0402 90 1 Cu 6 UMTS FEM FEM GSM 30% 9 LCD TV LED BLU LCD TV LED BLU LED BLU 40 LCD TV 9 CSP CSP Chip Scale Package 8,000 2008 20,000 1 10 1.7 LED LCD LCD LED 22 23

Social Contributions 04 Apr > SAMSUNG ELECTROMECHANICS < 03 Mar < 07 Jul 09 Sep > > 04 Apr 2006 Social Contributions 06 Jun > 03 Mar 04 Apr 04 Apr 06 Jun 07 Jul 09 Sep 2006 3 1 4 4 35 2 100 4 26 11 6 3 1 7 9 2006 9 True Company True Company 24 25

Global Network SAMSUNG ELECTROMECHANICS 8 Global 3 5 5 5 26 27

Pioneers Heart Financial Review

SAMSUNG ELECTROMECHANICS 31 72 32 34 72 72 72 35 36 72 72 37 72 72 38 72 72 72 3 LCR WS OS 4 MD(Mechanical Device) 2 3 LED Tuner MobileRF Power8 Staff R&D Center PKG 1 3 21 Global R&D 3 314 PKG581 PKG HDI MLCC 16232 HDI PKG Chip 4599 6 The 1nside Edge that shapes the Future 3,711 946 4,657 2,684 3,187 5,871 1,665 471 2,136 8,060 4,604 12,664 30 31

74,693,696 373,468,480 96.25% 2,906,984 14,534,920 3.75% 77,600,680 388,003,400 100.00% 1996. 01. 25 24,489 122,445 109,408,445 BW 1996. 02. 09 20,407 102,035 109,510,480 BW 1996. 02. 22 418,960 2,094,800 111,605,280 1996. 02. 29 10,203 51,015 111,656,295 BW 1996. 03. 28 3,800,000 19,000,000 130,656,295 1996. 03. 28 2,329,272 11,646,360 142,302,655 1996. 03. 28 187,363 936,815 143,239,470 1998. 06. 13 11,600,000 58,000,000 201,239,470 1998. 09. 18 10,000,000 50,000,000 251,239,470 1999. 03. 12 10,700,000 53,500,000 304,739,470 1999. 06. 18 15,000,000 75,000,000 379,739,470 1999. 07. 15 124,033 620,165 380,359,635 CB 1999. 07. 17 6,177 30,885 380,390,520 CB 1999. 07. 20 4,429 22,145 380,412,665 CB 1999. 07. 30 11,074 55,370 380,468,035 CB 1999. 08. 03 11,074 55,370 380,523,405 CB 1999. 08. 03 126,637 633,185 381,156,590 CB 1999. 08. 04 39,866 199,330 381,355,920 CB 1999. 08. 04 216,211 1,081,055 382,436,975 CB 1999. 08. 06 30,887 154,435 382,591,410 CB 1999. 08. 12 4,429 22,145 382,613,555 CB 1999. 09. 04 9,266 46,330 382,659,885 CB 1999. 09. 06 11,074 55,370 382,715,255 CB 1999. 09. 07 159,997 799,985 383,515,240 CB 1999. 09. 09 46,331 231,655 383,746,895 CB 1999. 09. 11 1,544 7,720 383,754,615 CB 1999. 09. 14 89,573 447,865 384,202,480 CB 1999. 09. 15 11,074 55,370 384,257,850 1999. 09. 15 10,810 54,050 384,311,900 1999. 09. 17 1,107 5,535 384,317,435 1999. 09. 22 11,074 55,370 384,372,805 1999. 09. 23 1,107 5,535 384,378,340 1999. 11. 10 12,181 60,905 384,439,245 1999. 11. 11 14,396 71,980 384,511,225 1999. 11. 16 1,107 5,535 384,516,760 1999. 11. 16 30,887 154,435 384,671,195 1999. 11. 17 7,752 38,760 384,709,955 1999. 11. 24 30,887 154,435 384,864,390 1999. 11. 29 11,074 55,370 384,919,760 1999. 12. 01 31,007 155,035 385,074,795 1999. 12. 02 5,537 27,685 385,102,480 1999. 12. 03 356,594 1,782,970 386,885,450 1999. 12. 07 16,611 83,055 386,968,505 1999. 12. 10 22,148 110,740 387,079,245 1999. 12. 14 7,721 38,605 387,117,850 2000. 02. 10 44,297 221,485 387,339,335 2000. 03. 07 3,088 15,440 387,354,775 2000. 04. 12 61,774 308,870 387,663,645 2000. 04. 19 6,177 30,885 387,694,530 2000. 05. 19 61,774 308,870 388,003,400 12 31 1 1 1 31 1, 5, 10, 50, 100, 500, 1000, 10000 64 2004. 08. 11 200,000 200,000 4.00% 2 28 200,000 200,000 2007. 08. 11 CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB CB 32 33

34 33 LCR 245,017 219,334 OS 397,332 317,349 WS 269,274 332,973 P&M 154,620 172,977 933,805 786,104 2,000,048 1,828,737 34 33 LCR 324,928 261,354 OS 402,227 355,348 WS 337,812 416,121 P&M 203,980 224,162 1,124,698 974,219 2,393,645 2,231,204 Samsung ElectroMechanics America Inc. 16,025[USD 18,800,000.00] 18,800 100.00% Samsung ElectroMechanics Germany, GmbH 3,090[EUR 2,556,459.41] 100.00% Samsung ElectroMechanics Hungary Inc. 10,634[EUR 10,022,775.00] 39,305 100.00% Samsung ElectroMechanics Thailand Co., Ltd. 13,131[THB 424,250,000.00] 3,181,869 75.00% Samsung ElectroMechanics Philippines, Corp. 59,574[USD 50,000,000.00] 4,046,711 93.68% Samsung ElectroMechanics Pte Ltd. 1,216[USD 1,000,000.00] 1,760,200 100.00% Samsung ElectroMechanics Indonesia, Pt 8,766[IDR 55,800,000.000] 3,600 100.00% 64,656[CNY 471,459,301.30] 80.96% 60,346[CNY 439,825,443.80] 100.00% Samsung ElectroMechanics HongKong Co., Ltd. 3,787[HKD 23,310,000.00] 23,310,000 100.00% 25,838[CNY 169,022,802.81] 95.00% Calamba Premier Realty Corp. 3[PHP 100,000.00] 398 39.80% Samsung Portugal Produtos ElectroMechanicos S.A. 10,592[PTE 1,724,580,000.00] 1,304,389 75.85% Samsung ElectroMecanico Mexicana, S.A. de C.V. 9,119[MXN 78,155,556.82] 100.00% FC BGA CAPA 1,076 MLCC CAPA BGA CAPA 525 115 2,994 LED 40 1,238 2,994 2,994 34 35

34 33 32 2,393,645 2,231,204 2,687,444 1,962,638 1,902,409 2,267,529 431,007 328,795 419,915 420,956 368,937 419,347 OS 10,051 ()40,142 568 175,211 85,317 156,171 69,636 162,796 83,690 115,626 ()117,621 73,049 115,626 ()117,621 73,049 17,662 ()50,330 ()22,370 97,964 ()67,291 95,419 34 33 32 674,409 550,593 460,536 2,388,711 2,223,527 2,152,056 3,063,120 2,774,120 2,612,592 847,284 544,522 339,172 428,092 553,680 629,380 1,275,376 1,098,202 968,552 388,003 388,003 388,003 1,080,285 1,080,285 1,080,285 273,918 175,983 281,473 45,538 31,647 ()105,721 1,787,744 1,675,918 1,644,040 3,063,120 2,774,120 2,612,592 17,693,084 22.80% 4,340,506 5.59% NPC 2,707,417 3.49% 823,870 604,090 1.06% 0.78% 36 37

SAMSUNG ELECTROMECHANICS Samsung ElectroMechanics America Inc. 18,800 100.00% Samsung ElectroMechanics Germany, GmbH 100.00% Samsung ElectroMechanics Hungary Inc. 39,305 100.00% Samsung ElectroMechanics Thailand Co., Ltd. 3,181,869 75.00% Samsung ElectroMechanics Philippines, Corp. 4,046,711 93.68% Samsung ElectroMechanics Pte Ltd. 1,760,200 100.00% Samsung ElectroMechanics Indonesia, Pt 3,600 100.00% 80.96% 100.00% Samsung ElectroMechanics HongKong Co., Ltd. 23,310,000 100.00% 95.00% Calamba Premier Realty Corp. 398 39.80% Samsung Portugal Produtos ElectroMechanicos S.A. 1,304,389 75.85% 1,440,000 30.00% 2,856,000 23.80% 1,020,000 17.00% 360,000 13.36% 13.33% 25,000 12.50% 2,338,460 11.50% 900,000 11.25% 30,000 11.19% MIR E&DS 112,000 10.81% 5,158,443 10.53% Samsung ElectroMecanico Mexicana, S.A. de C.V 1,563,111 100.00% 40 44 46 50,000 200,000 100,000 150,000 The 1nside Edge that shapes the Future 38 39

34 33 34 33 1. 2. 3. 4. 225,081,145,878 ()8,918,955,436 5. 50,686,023,171 ()1,265,673,125 6. 7. 8. 9. 10. 11. 1. 18,909,412,887 ()1,819,682,241 2. 58,815,258,350 ()6,010,225,579 3. 45,336,716,478 ()4,698,019,283 4. 5. 26,119,288,706 ()1,756,228,113 6. 7. 674,408,571,697 514,742,856,919 184,360,649,383 9,685,207,052 42,540,000 216,162,190,442 49,420,350,046 1,188,064,319 2,447,985,803 90,323,065 7,947,176,261 32,759,176 43,365,611,372 159,665,714,778 17,089,730,646 52,805,032,771 40,638,697,195 7,400,198,637 24,363,060,593 12,496,760,843 4,872,234,093 183,261,294,268 ()9,019,549,989 44,709,663,503 ()1,194,274,353 21,943,260,374 ()1,691,691,526 46,804,331,089 ()3,509,175,230 38,231,165,833 ()1,941,062,858 27,991,712,561 ()564,181,233 550,593,402,137 403,997,502,944 150,933,665,832 5,366,000,321 120,390,000 174,241,744,279 43,515,389,150 164,367,100 429,908,481 105,503,139 5,104,412,218 1,086,635,162 22,929,487,262 146,595,899,193 20,251,568,848 43,295,155,859 36,290,102,975 3,455,578,959 27,427,531,328 8,913,727,121 6,962,234,103 2,388,711,096,112 1,026,695,354,104 1. 26,500,000 2. 310,517,095,701 3. 518,585,781,463 4. 200,255,000 5. 23,245,400,000 ()8,413,146,530 14,832,253,470 6. 235,837,000 ()2,358,370 233,478,630 7. 2,135,408,784 8. 23,064,707,258 9. 124,811,746,042 10. 32,288,127,756 1,352,397,746,184 1. 169,956,343,849 2. 744,943,243,217 ()152,197,547,297 592,745,695,920 3. 45,542,481,420 ()15,439,399,033 30,103,082,387 4. 1,359,121,156,074 ()3,697,709,233 ()937,765,181,704 ()1,720,970,137 415,937,295,000 5. 5,674,592,072 ()4,077,786,061 1,596,806,011 6. 89,365,073,488 ()69,319,858,494 20,045,214,994 7. 104,582,414,439 8. 17,430,893,584 9,617,995,824 1. 644,421,517 2. 1,202,690,380 3. 7,770,883,927 3,063,119,667,809 21,284,634,703 ()8,552,237,538 5,962,079,780 ()29,810,398 736,362,730,035 ()473,676,208 ()135,747,701,458 42,075,771,418 ()13,462,932,286 1,195,002,611,653 ()4,510,887,696 ()795,445,833,722 ()220,113,257 6,087,492,997 ()4,313,399,319 86,666,939,915 ()62,589,880,498 2,223,526,942,289 968,803,295,280 32,500,000 232,518,114,846 499,928,366,723 228,980,000 12,732,397,165 5,932,269,382 17,218,096,735 170,324,116,330 29,888,454,099 1,247,050,234,183 170,089,628,737 600,141,352,369 28,612,839,132 394,825,776,978 1,774,093,678 24,077,059,417 21,740,762,025 5,788,721,847 7,673,412,826 757,980,972 2,312,221,456 4,603,210,398 2,774,120,344,426 40 41

34 33 34 33 1. 2. 3. 4. 5. 6. 7. 8. 9. 400,000,000,000 ()655,996,250 10. 11. 1. 2. 3. 4. 5. 152,161,561,800 ()28,409,944,801 ()1,621,824,543 847,283,983,842 148,577,988,433 228,935,456,949 1,218,485,880 3,945,216,420 153,280,000 57,424,538,582 980,457,600 5,364,596 399,344,003,750 5,912,985,186 786,206,446 428,091,768,018 300,000,000,000 3,962,885,559 1,999,090,003 122,129,792,456 1,275,375,751,860 200,000,000,000 ()487,769,329 200,000,000,000 ()1,662,992,364 126,856,078,150 ()23,233,807,650 ()1,886,320,643 544,521,531,148 138,436,104,302 155,612,202,537 2,297,790,317 5,311,605,034 181,500,000 38,863,030,747 88,676,813 11,012,266 199,512,230,671 3,359,634,084 847,744,377 553,680,159,185 198,337,007,636 250,000,000,000 3,607,201,692 101,735,949,857 1,098,201,690,333 1. 2. 1. 2. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. 388,003,400,000 373,468,480,000 14,534,920,000 1,080,284,485,124 931,477,699,397 148,806,785,727 273,918,507,565 33,880,491,000 31,537,766,472 5,814,000,000 7,895,000,000 95,968,000,000 98,823,250,093 45,537,523,260 ()13,919,324,930 4,566,848,571 ()48,372,672,408 72,412,807,307 ()965,064,247 31,814,928,967 1,787,743,915,949 3,063,119,667,809 388,003,400,000 373,468,480,000 14,534,920,000 1,080,284,485,124 931,477,699,397 148,806,785,727 175,983,324,760 33,880,491,000 31,537,766,472 5,814,000,000 7,895,000,000 162,968,000,000 ()66,111,932,712 31,647,444,209 ()13,919,324,930 2,473,485,728 ()40,415,418,172 53,195,732,773 ()1,299,702,606 31,612,671,416 1,675,918,654,093 2,774,120,344,426 42 43

34 33 34 33 2,393,645,358,585 1. 1,984,575,627,110 2. 409,069,731,475 1,962,638,015,168 1. 43,295,155,859 2. 20,251,568,848 3. 1,272,511,745,728 4. 492,259,743,544 5. 212,870,191,831 2,041,188,405,810 6. ()8,655,627,225 7. ()52,805,032,771 8. ()17,089,730,646 431,007,343,417 420,956,580,749 1. 40,093,912,848 2. 24,896,077,135 3. 8,564,625,031 4. 11,237,662,415 5. 19,138,408,070 6. 3,429,815,326 7. 1,367,060,709 8. 3,453,222,679 9. 2,801,154,552 10. 21,658,638,993 11. 2,151,715,675 12. 4,851,739,585 13. 5,463,522,587 14. 13,181,312,537 15. 6,340,968,011 16. 1,923,434,671 17. 5,717,343,753 18. 629,167,259 19. 1,699,589,500 20. 2,538,500,893 21. 7,481,153,215 22. 551,893,548 23. 1,037,243,796 24. 1,065,596,702 25. 705,052,217 26. 8,651,657,866 27. 189,536,005,174 28. 50,844,721 29. 943,558,912 30. 1,291,083,450 31. 512,404,651 32. 20,956,673,591 33. 6,935,501,239 34. 100,039,438 1,861,642,590,211 369,561,592,503 52,340,133,765 28,219,435,425 1,213,205,910,873 497,067,294,687 183,290,124,468 1,974,122,899,218 ()8,166,804,622 ()43,295,155,859 ()20,251,568,848 40,694,455,362 24,758,356,355 7,261,962,360 9,913,455,829 13,986,751,301 3,233,454,859 1,368,425,896 3,118,989,437 2,967,140,188 23,911,497,938 1,641,149,546 3,501,134,992 4,374,595,320 13,314,698,333 6,622,274,501 969,534,291 5,253,102,159 626,362,705 1,420,809,132 2,873,298,417 7,690,344,975 490,200,891 908,410,282 1,146,541,858 552,074,947 8,179,063,118 148,869,764,319 220,213,823 1,178,028,673 576,187,544 604,720,498 20,156,813,963 6,272,245,473 280,386,620 2,231,204,182,714 1,902,409,369,889 328,794,812,825 368,936,445,905 1. 9,539,681,501 2. 14,921,258,264 3. 5,875,646,758 4. 61,537,931 5. 20,895,856,283 6. 5,172,556,177 7. 96,272,871,676 8. 70,848,814 9. 3,909,616,317 10. 228,164,000 11. 1,918,000 12. 174,836,363 13. 18,085,894,245 1. 32,001,480,454 2. 816,725,084 3. 18,667,551,295 4. 1,429,966,248 5. 2,748,682,810 6. 5,481,501,404 7. 653,201,333 8. 76,799,605 9. 10. 5,922,546 11. 165,000,000 12. 517,426,399 13. 100,658,851 14. 15. 30,234,584 16. 6,940,255,024 10,050,762,668 175,210,686,329 69,635,405,637 115,626,043,360 115,626,043,360 17,662,423,229 97,963,620,131 7,552,060,548 12,754,328,225 10,204,178,812 180,635,193 15,032,761,410 5,925,543,196 10,355,190,252 123,580,006 6,039,648,892 17,149,428,867 34,148,532,106 6,808,216,021 14,370,351,358 2,394,963,994 2,384,613,618 4,949,631,702 59,273,503,515 13,550,167 7,473,081,130 4,510,887,696 498,962,335 1,992,526,170 23,977,501,991 ()40,141,633,080 85,317,355,401 162,796,321,803 ()117,620,599,482 ()117,620,599,482 ()50,330,014,301 ()67,290,585,181 44 45

SAMSUNG ELECTROMECHANICS 34 33 1. 888,067,288 2. ()28,437,326 3. 97,963,620,131 1. 1. 3,900,000,000 2. 55,400,000,000 3. 38,728,164,200 98,823,250,093 98,028,164,200 795,085,893 649,772,276 528,880,193 ()67,290,585,181 67,000,000,000 ()66,111,932,712 67,000,000,000 888,067,288 48 49 50 51 The 1nside Edge that shapes the Future 46 47

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