) Tel: Fax: Annual Report

206 3 314) Tel: 0312105114 Fax: 0312106363 2007 Annual Report

The 1nside Edge that shapes the Future

imagination ; the future ;

CEO S MESSAGE 04 05

06 07

1nto the Future imagination ; today for the future ;

COMPANY HISTORY 1973 2007 >> Birth >> Progress >> Forward >> Stability >> Leap Forward 1973 >> 1974 1973 03 11 Tuner, DY, FBT, 11.1 1974 03 1977 >> 1980 1977 05 1979 01 4.5 15 02 1980 10 1983 >> 1991 1983 03 1987 02 06 (500 /1 5,000 /1 ) 1988 05 1989 04 1991 11 5 1993 >> 2001 1993 06 (Tuner, DY, FBT, ) 1994 05 (Tuner, Head, Drum, Drum Motor) 05 (Tuner, DY, FBT, MLCC, Speaker) 1995 11 10 1996 10 2 10 ISO14001 12 ISO14001 2 1997 07 DY 1 11 2 1 1998 03 ISO14001 05 2 08 2 (BGA ) 1999 04 6SIGMA 06 07 Y2K 08 (www.samsungparts.com) 10 MLB, MLCC 2000 02 06 11 20 12 2001 03 05 06 08 10 12 TL9000 2002 >>> 2002 05 07 (2 ) 11 11 2003 04 Single PPM 05 07 (3 ) 08 ISO14001 09 ISO14001 10 11 6SIGMA 2004 02 05 06 06 08 2005 03 WinWin 05 KAIST, 06 07 11 ITSOC 2006 05 06 06 08 WinWin 09 (True Company ) 12 2007 03 Ansoft MLCC 04 PQS 04 KAIST, 04 08 LED 08 10 11

; imagination ; lifestyle innovator

REVIEW OF PRODUCTS Components for Mobile Precision Motor Mobile RF Camera Module HDI High Density Interconnection 14

Components for Mobile Precision Motor Camera Module HDI Mobile RF open your thinking

Components for Display Digital Tuner LED Back Light Unit Power open your thinking 16

Components for Display LED Back Light Unit Digital Tuner Power open your eyes

Components for Computer Light Emitting Diode MLCC MultiLayer Ceramic Chip Capacitor Package Substrate Network Module open your eyes 18

Components for Computer Light Emitting Diode LED Back Light Unit Package Substrate MLCC Network Module open your mind

open your mind our imagination continues

;

3 Major Business Activities 3 4 4 4 8 8 9 11 8 11 22

3 3 4 4 5 6 8 5 Research & Development 9 9 10 11 10 24 11

Social Contributions 3 6 7 9 10 28 26 27 3 5 6 7 9 10

ASIA & EUROPE >>> Global Network AMERICAS >>> 28 29

SAMSUNG ELECTROMECHANICS 2007 ANNUAL REPORT 31 34 35 36 36 37 37 38 38 38 38 3,790 2,493 1,646 7,929 991 2,762 471 4,224 4,781 5,255 2,117 12,153 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% 1999. 11. 10 1999. 11. 11 1999. 11. 16 12,181 14,396 1,107 60,905 71,980 5,535 384,439,245 384,511,225 384,516,760 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 1998. 06. 13 11,600,000 58,000,000 201,239,470 1999. 12. 01 31,007 155,035 385,074,795 1998. 09. 18 10,000,000 50,000,000 251,239,470 1999. 12. 02 5,537 27,685 385,102,480 1999. 03. 12 1999. 06. 18 1999. 07. 15 1999. 07. 17 1999. 07. 20 1999. 07. 30 1999. 08. 03 1999. 08. 03 1999. 08. 04 1999. 08. 04 10,700,000 15,000,000 124,033 6,177 4,429 11,074 11,074 126,637 39,866 216,211 53,500,000 75,000,000 620,165 30,885 22,145 55,370 55,370 633,185 199,330 1,081,055 304,739,470 379,739,470 380,359,635 380,390,520 380,412,665 380,468,035 380,523,405 381,156,590 381,355,920 382,436,975 1999. 12. 03 1999. 12. 07 1999. 12. 10 1999. 12. 14 2000. 02. 10 2000. 03. 07 2000. 04. 12 2000. 04. 19 2000. 05. 19 356,594 16,611 22,148 7,721 44,297 3,088 61,774 6,177 61,774 1,782,970 83,055 110,740 38,605 221,485 15,440 308,870 30,885 308,870 386,885,450 386,968,505 387,079,245 387,117,850 387,339,335 387,354,775 387,663,645 387,694,530 388,003,400 1999. 08. 06 30,887 154,435 382,591,410 1999. 08. 12 1999. 09. 04 1999. 09. 06 1999. 09. 07 1999. 09. 09 1999. 09. 11 1999. 09. 14 1999. 09. 15 1999. 09. 15 4,429 9,266 11,074 159,997 46,331 1,544 89,573 11,074 10,810 22,145 46,330 55,370 799,985 231,655 7,720 447,865 55,370 54,050 382,613,555 382,659,885 382,715,255 383,515,240 383,746,895 383,754,615 384,202,480 384,257,850 384,311,900 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 32 33

279,888 245,017 460,956 214,636 241,625 1,021,796 2,218,901 397,332 269,274 154,620 933,805 2,000,048 3,420 [USD 5,000,000.00] 3,090 [EUR 2,556,459.41] 5,000 100.00% 100.00% 494,953 59,468 266,894 58,034 2,478 [EUR 3,519,000.00] 13,131 [THB 424,250,000.00] 59,574 [USD 50,000,000.00] 1,216 [USD 1,000,000.00] 13,800 3,181,869 4,046,711 1,760,200 100.00% 75.00% 93.68% 100.00% 554,421 324,928 8,766 [IDR 55,800,000,000] 3,600 100.00% 366,484 328,671 71,402 [CNY 526,814,543.49] 81.10% 65,663 432,147 218,957 46,650 73,556 402,227 280,834 56,978 62,575 [CNY 458,387,678.49] 3,787 [HKD 23,310,000.00] 33,419 [CNY 230,753,917.81] 23,310,000 100.00% 100.00% 95.00% 265,607 337,812 3 [PHP 100,000.00] 398 39.80% 243,883 172,157 10,592 [PTE 1,724,580,000.00] 1,304,389 75.85% 30,794 31,823 274,677 203,980 982,020 936,019 181,559 1,163,579 188,679 1,124,698 2,306,297 1,984,575 384,134 409,070 2,690,431 2,393,645 652 159 43 46 1,316 2,461 245 2,461 2,461 34 35

2,690,431 2,167,546 522,885 434,423 88,462 142,791 75,690 2,393,645 1,965,930 427,715 422,181 5,534 175,211 65,119 2,231,204 1,914,638 316,566 373,607 57,041 85,317 145,897 155,563 115,626 117,621 42,760 17,662 50,330 112,803 97,964 67,291 1,461 1,268 905 1,461 1,268 905 720,207 674,409 550,594 2,469,791 2,402,106 2,230,688 3,189,998 473,412 749,176 1,222,588 388,003 1,080,789 4,852 3,076,515 847,284 428,092 1,275,376 388,003 1,080,284 17,896 2,781,282 544,522 553,680 1,098,202 388,003 1,080,285 17,694 17,693,084 5,710,325 1,704,099 1,036,608 591,111 22.80% 7.36% 2.20% 1.34% 0.76% 155,476 41,037 21,115 347,994 273,919 175,983 1,967,410 1,801,139 1,683,080 3,189,998 3,076,515 2,781,282 36 37

5,000 13,800 3,181,869 4,046,711 1,760,200 3,600 23,310,000 398 1,304,389 1,440,000 2,856,000 1,020,000 360,000 25,000 900,000 112,000 5,158,443 100.00% 100.00% 100.00% 75.00% 93.68% 100.00% 100.00% 81.10% 100.00% 100.00% 95.00% 39.80% 75.85% 30.00% 23.80% 17.00% 13.36% 13.33% 12.50% 11.25% 10.81% 10.53% 100.00% SAMSUNG ELECTROMECHANICS 2007 ANNUAL REPORT 40 50,000 250,000 200,000 50,000 100,000 44 46 38

720,206,800,295 498,900,922,225 674,408,571,697 514,742,856,919 196,842,572,822 14,077,465,564 73,935,000 184,360,649,383 9,685,207,052 42,540,000 204,938,436,011 225,081,145,878 (8,828,448,062) (8,918,955,436) 36,653,992,680 50,686,023,171 (1,224,705,824) (1,265,673,125 ) 1,635,168,953 1,188,064,319 1,099,832,869 2,447,985,803 144,367,040 90,323,065 11,391,871,675 7,947,176,261 81,445,286 32,759,176 42,014,988,211 43,365,611,372 221,305,878,070 159,665,714,778 48,116,543,160 18,909,412,887 (1,807,483,616) (1,819,682,241) 79,608,549,052 58,815,258,350 (8,477,614,246) (6,010,225,579) 47,625,268,074 45,336,716,478 (4,761,416,268) (4,698,019,283) 5,305,247,622 7,400,198,637 35,652,121,920 26,119,288,706 (1,747,119,599) (1,756,228,113) 13,775,589,463 12,496,760,843 8,016,192,508 4,872,234,093 2,469,791,632,877 2,402,106,343,325 1,022,262,755,911 844,135,385,634 376,957,468,429 629,040,511,288 158,795,000 310,517,095,701 518,585,781,463 200,255,000 24,489,900,000 23,245,400,000 (8,383,918,806) (8,413,146,530) 1,313,606,491,178 1,352,528,052,672 169,956,343,849 169,956,343,849 826,405,430,142 744,943,243,217 (171,371,194,635) (152,197,547,297) 51,185,261,068 45,542,481,420 (17,649,264,250) (15,439,399,033) 1,520,165,390,935 1,359,121,156,074 (3,137,432,495) (1,099,112,862,900) (3,697,709,233) (937,765,181,704) (2,758,804,384) (1,522,617,126) 4,776,441,001 5,674,592,072 (3,874,135,796) 100,763,846,288 (81,506,109,164) (4,077,786,061) 89,365,073,488 (69,319,858,494) (58,028,281) (68,046,523) 9,904,710,017 104,582,414,439 9,916,899,783 17,430,893,584 8,793,020,820 9,487,689,336 532,667,807 644,421,517 445,959,656 1,202,690,380 8,086,664,861 7,770,883,927 (272,271,504) (130,306,488) 125,129,364,968 195,955,215,683 26,500,000 26,500,000 235,837,000 (2,358,370) 2,335,772,930 2,135,408,784 26,386,496,028 23,064,707,258 65,411,115,869 30,969,480,141 138,206,993,255 32,288,127,756 3,189,998,433,172 3,076,514,915,022 40 41

473,411,981,459 847,283,983,842 213,979,505,580 148,577,988,433 139,014,504,550 228,935,456,949 128,191,670 1,218,485,880 4,779,331,153 3,945,216,420 320,650,000 153,280,000 55,255,140,933 57,424,538,582 992,395,154 980,457,600 8,194,616 5,364,596 50,000,000,000 400,000,000,000 (655,996,250) 8,177,452,009 5,912,985,186 756,615,794 786,206,446 749,176,015,602 428,091,768,018 600,000,000,000 300,000,000,000 5,031,439,338 3,962,885,559 5,580,000,000 1,999,090,003 172,430,720,930 (32,495,458,623) (1,370,686,043) 152,161,561,800 (28,409,944,801) (1,621,824,543) 1,222,587,997,061 1,275,375,751,860 388,003,400,000 388,003,400,000 373,468,480,000 373,468,480,000 14,534,920,000 14,534,920,000 1,080,789,233,951 1,080,284,485,124 931,477,699,397 931,477,699,397 149,311,534,554 148,806,785,727 (4,851,657,413) 17,895,604,037 (36,264,687,553) (13,919,324,930) 31,413,030,140 31,814,928,967 155,475,706,293 41,037,166,436 13,577,829,026 4,889,555,767 (19,750,064,767) (35,300,132,391) 161,647,942,034 72,412,807,307 (965,064,247) 347,993,753,280 273,918,507,565 37,780,491,000 39,694,491,000 196,614,766,472 135,400,766,472 113,598,495,808 98,823,250,093 1,967,410,436,111 3,189,998,433,172 1,801,139,163,162 3,076,514,915,022 42 43

2,306,297,145,526 384,134,224,528 52,805,032,771 17,089,730,646 1,334,608,420,241 593,724,814,008 294,329,831,592 2,292,557,829,258 (7,571,540,342) (71,130,934,806) (46,309,059,544) 46,856,356,011 28,242,542,315 10,758,745,648 15,561,466,744 22,008,188,134 3,784,774,420 1,616,466,217 1,722,062,335 3,257,235,187 22,610,220,126 2,644,775,721 5,441,249,654 4,493,243,830 16,212,390,316 4,495,693,279 2,047,340,499 6,811,616,707 505,557,284 1,718,964,125 2,350,566,471 8,338,617,189 512,356,990 995,536,567 1,166,724,987 903,484,259 8,004,591,812 176,622,987,901 1,055,587,056 389,701,160 780,500,947 22,663,691,306 9,850,007,895 2,690,431,370,054 2,167,546,294,566 522,885,075,488 434,423,243,092 1,984,575,627,110 409,069,731,475 43,295,155,859 20,251,568,848 1,275,804,232,908 492,259,743,544 212,870,191,831 2,044,480,892,990 (8,655,627,225) (52,805,032,771) (17,089,730,646) 40,093,912,848 24,896,077,135 8,564,625,031 12,461,693,915 19,138,408,070 3,429,815,326 1,367,060,709 3,453,222,679 2,801,154,552 21,658,638,993 2,151,715,675 4,851,739,585 5,463,522,587 13,181,312,537 6,340,968,011 1,923,434,671 5,717,343,753 629,167,259 1,699,589,500 2,538,500,893 7,481,153,215 551,893,548 1,037,243,796 1,065,596,702 705,052,217 8,651,657,866 189,536,005,174 50,844,721 943,558,912 1,291,083,450 512,404,651 20,956,673,591 6,935,501,239 100,039,438 2,393,645,358,585 1,965,930,502,348 427,714,856,237 422,180,612,249 7,888,155,155 6,447,774,599 4,866,250,022 82,501,765 29,590,652 18,320,116,560 2,701,492,326 68,571,504,900 3,336,617,439 6,056,231,303 1,000,441,957 23,490,566,144 32,462,288,344 8,508,322,454 1,456,674,329 18,966,145,678 5,814,966,562 617,324,925 1,780,934,828 11,200,000 420,221,275 50,225,594 5,601,764,132 88,461,832,396 142,791,242,822 75,690,068,121 155,563,007,097 42,759,597,182 112,803,409,915 1,461 1,461 9,539,681,501 14,921,258,264 5,875,646,758 61,537,931 20,895,856,283 5,172,556,177 96,272,871,676 70,848,814 3,909,616,317 228,164,000 1,918,000 174,836,363 18,085,894,245 32,001,480,454 5,481,501,404 816,725,084 18,667,551,295 1,429,966,248 2,748,682,810 653,201,333 76,799,605 5,922,546 165,000,000 517,426,399 100,658,851 30,234,584 2,423,736,344 5,534,243,988 175,210,686,329 65,118,886,957 115,626,043,360 17,662,423,229 97,963,620,131 1,268 1,268 44 45

795,085,893 112,803,409,915 3,900,000,000 70,400,000,000 38,529,164,200 113,598,495,808 112,829,164,200 888,067,288 (28,437,326) 97,963,620,131 3,900,000,000 55,400,000,000 38,728,164,200 98,823,250,093 98,028,164,200 SAMSUNG ELECTROMECHANICS 2007 ANNUAL REPORT 769,331,608 795,085,893 48 49 50 51 46

1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8 48 49

50 51

Global Network Tel: 0312105114 Fax:0312106363 Tel: 0418611214 Fax:0418611333 Tel: 0519707114, 8114 Fax:0519708702 Tel: 0237067821~25 Fax:027528125 (DSEM) Hengkeng Management Area Liaobu Town, Dongguan City, Guangdong Province, China 523413 Tel: +867693305000 Fax:+867693305001 (TSEM) 27, Heiniucheng Road, Tianjin, China 300210 Tel: +862228303333 Fax:+862228307436, 28316600 (STEM) Xiqing Dist. MicroElectronics Industrial Park, Jingang Highway, Tianjin, China 300485 Tel: +862223979000 Fax:+862223962532 (SEMPHIL) Block No. 5, Calamba Premiere International Park, Barangay Batino, Calamba, Laguna, The Philippines Tel: +63495456001 Fax: +63495452348 (SEMT) Wellgrow Industrial Estate,93 Moo 5T. Bangsamak, A. Bangpakong, Chacheungsao 24180, Thailand Tel: +6638562000 Fax: +6638562177~9 3345 Michelson Drive Suite 350, Irvine, CA. 92612, U.S.A Tel: +19497978000~8059 Fax: +19497978060~8062 85W Tasman Drive, San Jose, CA. 95134 U.S.A Tel: +14085445274 Fax: +14085444967 1880 W. Winchester Rd., Suite 112, Libertyville, IL 60048, U.S.A Tel: +18475499421~4 Fax: +18475499419 105 Challenger Rd., 5th Floor Ridgefield Park, NJ. 07660 U.S.A. Tel: +12012296092~4 Fax: +12012296096 4505E. Chandler Blvd., Suite 115, Phoenix, AZ. 85048 U.S.A. Tel: +14805920180 Fax: +14805920186 04578910 Av. Das Nações Unidas, 12901 Torre Oeste 6 andar Brooklin Novo Sao Paulo, Brasil Tel: +551151055352~5 Fax: +551151055356 Samsung Haus, Am Kronberger Hang 6, 65824 Schwalbach/TS, Germany Tel: +496196667250, 7265, 7254 Fax: +496196667744, 7766, 7755 H2310 Leshegy u.24 Szigetszentmiklos, Hungary Tel: +3624551144 Fax:+3624551104 Samsung House 1000, Hillswood Drive, Chertsey Surrey KT16 OPS, U.K. Tel: +441932455480, 5483 Fax: +441932455484 Harman Caddesi, Polat Plaza BBlock No.4, Kat4 Levent80640 Istanbul, Turkey Tel: +902123240856~8 Fax: +902122700077 C.A. La Boursidiere, RN 186, BAT. Champagne, BP202 92357 Le Plessis, Robinson, France Tel: +33146313940 Fax: +33146318934 02151 P.O.Box 302 (Tekniikantie 12) Espoo, Finland Tel: +358925172255 Fax: +358925172258 8/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong, China Tel: +85228626340, 6350, 6360 Fax: +85228626362~4 Rm 4501, 45/F, New World Center, Yitian Road, Futian District, Shenzhen, China 518026 Tel: +8675586085581 Fax: +8675586085566 Suchuan #17D Industrial Square, o.428 Xinlong Street, Suzhou Industrial Park, Suzhou, China215021 Tel: +8651287169898(Ext.100) Fax :+8651287169896 21F, China Merchants Tower, No. 118, Jianguolu, Chaoyang District, Beijing 100022, China Tel: +861065668150 Fax: +861065668146 Rm. 1408, 14th Fl., Shanghai International Trade Center No.2200 Yan An(W) Rd., Shanghai, China 200335 Tel: +862162704168(Ext.200) Fax: +862162196640 Room 1201, Growne Plaza Qingdao, 76 Xiang Gang Zhong Road, Qingdao, China 266071 Tel: +865325759102 Fax: +865325756909 Room 1202, Bank Center, No.189, Xiahe Road, Xiamen, China Tel: +865925164490 Fax: +865925164490 18F Senmao Bldg., 147 Zhongshan Road, Dalian, China 116011 Tel: +8641183602231 Fax: +8641183607722 9F1, 399, Rueiguang Road, Neihu, Taipei, Taiwan R.O.C Tel: +886226568350 Fax: +886226568388 17th Fl., Roppongi TCube Building, 311, Roppongi, Minatoku, Tokyo 1068532, Japan Tel: +81362342576 Fax: +81362342568 6th Fl., Crystal Tower, 1227, Shiromi Chuoku, Osaka 5406006, Japan Tel: +81669493406~9 Fax: +81669493047 3 Church Street Samsung Hub #2302, Singapore 049483 Tel: +6568333215~31 Fax: +6568333243~4 23rd Floor, Lake Rajada Office Complex, 193/89 Rachadapisek Road, Khet Klongtoey, Bangkok 10110, Thailand Tel:+6626618004~5 Fax: +6626618006 3B97, Level 9, Block 3B, Plaza Sentral, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia Tel: +60322636684 Fax: +60322636680 11700 2216, Plaza Ivory, Halaman Bukit Gambir, Gelugor Penang, Malaysia Tel: +6046606120~2 Fax: +6046606123 Unit 801, 8th Fl., Alabang Business Tower, 16 Acacia Avenue, Muntinlupa City, Metro Manila, The Philippines Tel: +6328092873~4 Fax: +6328091365 IFCI Tower, 9th Floor, 61 Nehru Place, New Delhi, India Tel: +911146590976 Fax: +911142493609