Kinam Kim, Ph.D CEO, Samsung Display

US NAE Foreign Associate, IEEE Fellow

Market Perspective & Strategy

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Disclaimer

The materials in this report include forward-looking statements which can generally be identified by phrases such as

Samsung Electronics (SEC) or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or

other words or phrases of similar implications. Similarly, such statements that describe the company's business strategy,

outlook, objectives, plans, intentions or goals are also forward-looking statements. All such statements are subject to

certain risks and uncertainties that could cause actual results to differ materially from those in the presentation files

above.

For us, particular uncertainties which could adversely or positively affect our future results include:

· The behavior of financial markets including fluctuations in exchange rates, interest rates and commodity prices

· Strategic actions including dispositions and acquisitions

· Unanticipated dramatic developments in our major businesses including CE (Consumer Electronics),

IM (IT & Mobile communications), DS (Device Solutions)

· Numerous other matters at the national and international levels which could affect our future results

These uncertainties may cause our actual results to be materially different from those expressed in this report.

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Growth Engine : IT→ TV → Mobile

Display Market History

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SDC has been continuously outperforming

SDC Excellence : Revenue & Profit

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SDC has been operating the capacity efficiently

SDC Excellence : Operation

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SDC is the No.1 in 4 major applications

SDC Excellence : Market Leadership

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SDC Excellence : Technology Leadership

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SDC Excellence : Technology Leadership

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Business Portfolio

SDC evolves to well-balanced portfolio

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AMOLED drives the growth of the company

Technology Portfolio

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Everyone and everything are connected seamlessly

Hyper Connected

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Key Elements of Hyper Connected World

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Display is the key component of smart devices in the cloud environment

Cloud

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Network revolution → Multimedia experience : High performance display

High Speed Connectivity

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Trillion devices will be connected, display is the window

Device to Device

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Display is the window for the world. "5 Every..."

Display Centric World

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SDC Core Competency

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Distinguished track record in display and semiconductor

Legacy

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Advanced Technology ①

World largest AMOLED & Flexible IP portfolio

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Technology readiness for flexible AMOLED

Advanced Technology ②

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SDC has proven capability to bring the new technology to the large scale mass production

Operational Capability

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Organize AMOLED ecosystem through JVs & capital investment

Ecosystem

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Strategy Framework

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Competition : Color → Resolution → Design Innovation

Trend : Smartphone

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H/E value up with Flexible, M/E penetration with AMOLED

Strategy : Smartphone

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High resolution and low power display for various usages

Trend : Tablet

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Cover all segments : AMOLED for H/E, Oxide for M/E, a-Si for L/E

Strategy : Tablet

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Real Image, Large size and Immersive Design

Trend : TV

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Dominate market with leading edge technology

Strategy : TV

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Continuously expanding to different applications

Create New Opportunities

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Trend : Wearable

Wearable usage increase in always connected world

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Create wearable market with Flexible and sensor integration

Strategy : Wearable

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In the near future, AMOLED will replace TFT LCD

Trend : Automotive

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Enter the market with AMOLED based differentiation from 2016

Strategy : Automotive

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E-textbook will evolve to Vook, rapidly replacing paper book

Trend : Education

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Create video book market with AMOLED

Strategy : Education

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Strategic investment will secure growth momentum

Investment Strategy

SDC Vision

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Final Remarks

Thank You