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‘Dividend bonus’ to 2.14 million ants… Samsung Electronics “Big M&A Promise within 3 Years”

Dividend-investment reinforcement with good performance ahead

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The number of small individual shareholders (less than 1 billion won) who benefited from Samsung Electronics’ “large dividend” on the 28th increased by 279% compared to 2019 (568,000 people) last year to about 2.145,000. . Small individual shareholders receive an average of 350,000 won (based on common stock). In the business world, it is evaluated that Samsung Electronics is positioning itself as a’national democratic stock’ from the’large market stock’ in the Korean stock market.

Samsung Electronics has been paying dividends of about 9.6 trillion won each year from 2018 to 2020, and a total of 28.900 trillion won by quarter. The amount paid is 354 won per share (based on common stock). The special dividend of about 1.07 trillion won (1932 won per share) announced by Samsung Electronics on the day is in accordance with the policy to return additional cash in the event of any residual cash, excluding regular dividends from the free cash flow (FCF).

As of the end of last year, the National Pension System, which owned more than 10% of Samsung Electronics’ common stock, 638.69 million shares and 8.5 million preferred shares, also held a trillion-unit dividend feast. The National Pension Plan is expected to earn a total of 1.25 trillion won through this dividend. In addition, the value of Samsung Electronics’ shares held by the National Pension Service over the past two years has increased by nearly 30 trillion won from 2018 (23 trillion won) to 52 trillion won.

○ Main business’even performance’

On this day, Samsung Electronics also disclosed the final results in the fourth quarter of last year (October to December). In spite of the new coronavirus infection (Corona 19), semiconductors, displays, consumer electronics, and mobiles were all active, increasing operating profit by 29.62% compared to the previous year. Future growth engine businesses also achieved results. A representative example is that the foundry (consigned semiconductor production) business recorded the largest sales in the fourth quarter last year. Last year, drastic investments were also continued, such as spending about 38.5 trillion won in facility investment centered on system semiconductors and displays. This is a 43% increase from 2019. An electronics industry official said, “There is a high possibility that the’semiconductor supercycle (super booming period)’ will start this year, and the global smartphone industry is also expected to recover, and it is highly likely to achieve good results.” The CE division, which is in charge of the home appliance business, achieved the most remarkable results. Annual operating profit exceeded 3 trillion won for the first time, achieving 3.5 trillion won. Although the global smartphone and tablet market was stagnant, the IM business division in charge of smartphones achieved KRW 11.4 trillion, an increase of KRW 2.2 trillion from the previous year due to efforts to improve the cost structure. The DS business, which leads the semiconductor business, is also predicting growth this year. This year, it is expected that the demand for memory semiconductors will continue to increase in the data center and PC markets due to telecommuting, teleworking, and online shopping.

○ Samsung “M&A within 3 years”

Samsung Electronics also announced an active merger and acquisition (M&A) to secure new growth engines in the future. Samsung Electronics has not had a large-scale M&A since it acquired Harman, an automobile parts company in 2016. On that day, Yunho Choi, head of the management support office, said, “It is difficult to specify the timing due to uncertain internal and external circumstances, but we are positively evaluating the possibility of realizing a meaningful M&A within 3 years.” (To shareholders) I promise again.”

It promised to achieve results in ESG (environmental, social, governance) and compliance, which are recently drawing attention as the topic of business management. On this day, Samsung Electronics announced that it has upgraded the Sustainability Management Council, a company-wide consultative body that discusses the company’s sustainability management strategy, under the leadership of the CFO, so that sustainability management can be reflected in a higher ranking in the overall management decision-making process.

Reporter Seo Dong-il [email protected] Go to reporter page>

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