3Q 2024 Pre-Earnings Guidance

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD), on October 8, 2024, announced its earnings guidance for the third quarter of 2024.

∙ Consolidated sales: Approximately 79 trillion Korean won

∙ Consolidated operating profit: Approximately 9.1 trillion Korean won

The above estimates are based on K-IFRS. Please note that Korean disclosure regulations do not allow earnings estimates to be offered as a range. To comply with such regulations, the above figures represent the median of the estimate ranges provided below.

∙ Sales: 78 trillion to 80 trillion Korean won

∙ Operating profit: 9.0 trillion to 9.2 trillion Korean won

※ The above information is provided for the convenience of our investors before the external audit on the financial results of our headquarters, subsidiaries and affiliates is completed. The statements contained herein include statements of future expectations and other forward-looking statements that are based on management's current views, expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in Samsung Electronics Co., Ltd's ("SEC") core businesses and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events, (iii) currency exchange rates, (iv) changing levels of competition, (v) changes in laws and regulations, (vi) general competitive factors, in each case on a local, regional, national and/or global basis. The matters discussed herein may also be affected by risks and uncertainties described from time to time in SEC's filings with the Korea Stock Exchange (KRX), FSS (Korea), and Samsung Website. Further information about risks and uncertainties affecting Samsung Electronics Co., Ltd. is included throughout our most recent annual and interim reports, as well as our most recent earnings release, which are available on https://www.samsung.com/global/ir. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of SEC may vary materially from those described in the relevant forward-looking statement, and all such statements are subject to certain risks and uncertainties that could cause our actual results to be materially different from those expressed herein. The company assumes no obligation to update any forward-looking statement.

Explanatory note to the 3Q24 provisional results

In 3Q24, we recorded the highest quarterly revenue since 1Q22, but operating profit likely fell short of market expectations. This explanatory note is provided to assist in the understanding of the factors behind the lower-than-forecast provisional results and alleviate uncertainties prior to the release of our full results in the 3Q24 earnings call.

The performance of the DS Division declined sequentially due to various one-offs, including the provisioning for incentives.

-       Despite strong HBM/server demand, the Memory Business recorded a decrease in results due to inventory adjustments by some mobile customers and an increase in the supply of legacy products from memory companies in China. One-off expenses and currency effects also impacted the performance.

In HBM, the start of the HBM3E business to a major customer was delayed relative to our expectations. 

The DX Division and SDC both recorded improved results, the former thanks to strong sales of flagship smartphones and the latter to launch effects of new products by major clients.