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SAMSUNG ELECTRONICS 3Q 2026 Earnings Call ※ Background image is of the Samsung Electronics Digital City(Suwon), located in South Korea
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The financial information in this document are consolidated earnings results based on K-IFRS. This document is provided for the convenience of investors before the external review on our 3Q 2026 financial results is completed. The review outcomes may cause some parts of this document to change. This document contains "forward-looking statements" - that is statements related to future, not past events. In this context, "forward-looking statements" often address our expected future business and financial performance and often contain words such as "expects" "anticipates" "intends" "plans" "believes" "seeks" or "will". "Forward-looking statements" by their nature address matters that are to different degrees uncertain. 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 DX (Digital eXperience) and 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 document. Disclaimer ※ Background image is of a Semiconductor Fab in South Korea
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PRESENTERS 3Q 2026 FINANCIAL RESULTS APPENDICES Index RESULTS & OUTLOOK BY BUSINESS SEGMENT ※ Background image is of DSR (Device Solutions Research) Tower of Samsung's Hwaseong Campus in South Korea
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Presenters Device eXperience (DX)Device Solutions (DS) Jaejune Kim EVP Memory Jason Shin EVP System LSI Sukchae Kang EVP Foundry Charles Hur EVP Samsung Display Company Wonwoo Kim VP Visual Display Daniel Oh EVP Investor Relations Sooncheol Park EVP Chief Financial Officer Speakers Moderator Daniel Araujo VP Mobile eXperience
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3Q 2026 Results Based on consolidated financial statements Revenue Operating Profit R&D Investment KRW 195.3T KRW 107.4T KRW 14.4T Became the first global tech company ever to exceed KRW 100T in quarterly operating profit • We have reached new highs in both revenue and operating profit for the fourth consecutive quarter, backed by our differentiated technologies and nimble response to market changes, demonstrating our ability to sustain growth, despite rapidly shifting global market conditions Our efforts remain fully focused on developing next-generation technologies and further advancing our leadership in the global market YoY +127%QoQ +14% YoY +783%QoQ +20% YoY +63%QoQ -10% EPS KRW11,462 (QoQ 6%↑, YoY 536%↑) *Common 5
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Total Operating Profit (OP) 107.4 T OP Margin 55.0% Business Unit Sales (QoQ) Op. Profit (% of revenue) Key Updates DS Semiconductor 147.1 T +15% 106.5 T 72% • Memory achieved record earnings by significantly ramping up HBM4 sales on the strength of product competitiveness and proactively meeting growing demand for server SSDs • Continued earnings improvement driven by higher Foundry utilization and strong advanced-node demand DX Mobile / TV / Home Appliances 52.1 T +8% -0.8 T SDC Display 8.0 T 1.1 T • QoQ performance improved driven by strong sales of smartphone OLED panels • Expansion of large-size Gaming monitor market supported sales increase Harman Automotive / Lifestyle 4.3 T 0.6 T Results by Business Segment KRW Trillion -2% 14% 14% Earnings Per Share KRW11,462(Common), KRW11,492(Preferred) 147.1 52.1 8.0 4.3 195.3 Total KRW Trillion +7% -5% * DS: Device Solutions, DX: Device eXperience, SDC: Samsung Display Corporation * Harman’s sales and operating profit figures are based on Samsung Electronics’ fiscal year and acquisition related expenses are reflected. * Sales and operating profit of each business stated above reflect the organizational structure as of December 2021 and the sales of business units include intersegment sales. QoQ + 20% QoQ + 2.8%p 3Q 2026 Sales by Business Segment 6 • Achieved revenue growth, driven by higher ASP and new model launches, including Galaxy Z Fold 8 • Minimized earnings decline through a higher premium mix, operational efficiency and disciplined cost management • Sustained solid sales of automotive and audio products • Non-recurring factors, including U.S. tariff refunds, contributed positively to earnings
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Memory 4Q 20263Q 2026 Results AI infrastructure investment to continue backed by industry-wide competition for AI leadership • Further memory demand growth centered on products for new CPU/GPU platforms • Surging QLC SSD demand linked to the expansion of personal AI Agent services Maintain AI application focused sales strategy • Further increase sales of HBM, Server DRAM and SSDs • Increase supply of high-speed Server DDR5and QLC Another record-breaking quarterly revenue and operating profit • Managed product-mix with focus on AI products amid limited capacity constraints • Market price increased across all applications, led by strong demand momentum for servers Continued robust demand driven by AI applications • Significantly scaled up HBM4 sales backed by industry-leading product competitiveness • Proactively addressed growing demand for server SSDs Results Outlook DS Results ※ Image : Samsung HBM4/E, DDR5 RDIMM, SOCAMM2, V9 eSSD Sales (Mem) OP (DS) Sales (DS) 33.1 127.5 147.1 26.7 120.8 140.7 7.0 89.2 106.5 3Q 25 2Q 26 3Q 26 ~~ Unit: KRW trillion 7 2027 AI infra CapEx to accelerate as AI ecosystem expands • Surging AI-driven demand likely to further tighten supply shortages compared with CY26 Solidify competitiveness via technology leadership and P-Mix optimization aligned with market trends and VoC • Lead high-end market & sharpen AI server driven portfolio • Build a stable sales base through long-term contracts and ensure timely readiness of new products tailored to requirements for AI applications
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S.LSI / Foundry 3Q 2026 Results Results DS Results S.LSI • Revenue growth driven by SoC and image sensor mass production in new models launched in 2H • Secured Custom SoC projects by establishing new customer partnerships Foundry • Substantial revenue and earnings improvement on HBM B-Die sales growth and expanded advanced-node sales • Continued order wins centered on 2nm HPC customers, including major hyperscalers S.LSI • Stable production and sales of flagship SoC and 200MP sensors Foundry • Double-digit revenue growth and continued earnings improvement on 2nm 2nd Gen. new mobile products, 4nm NPU mass production ramp, and expanded memory product sales ※ Image : Samsung Exynos SOC, Image Sensor, Silicon Wafer Sales(DS) 33.1 127.5 147.1 3Q 25 2Q 26 3Q 26 ~~ Outlook 8 4Q 2026 2027 S.LSI • Expanding flagship SoC sales and strengthening partnerships with Custom SoC customers • Accelerating flagship high-resolution sensor sales and diversifying into non-mobile applications Foundry • Revenue growth led by 4nm/2nm advanced nodes on strong AI/HPC demand • Strengthen global supply capabilities with the start of operations at the first fab in Taylor, U.S. Unit: KRW trillion
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SDC 3Q 2026 Results Results Outlook SDC Results OP Sales8.1 7.5 8.0 1.2 0.7 1.1 ~~ ※ Image : Flexible OLED display 3Q 25 2Q 26 3Q 26 Expect year-end seasonal demand and new product launches, but external factors may affect earnings improvement Small & Medium • Expand sales by actively responding to customer demand Large • Improve profitability through expanding sales of gaming monitors Small & Medium • Revenue and profit increased driven by timely panel supply for customers' new products Large • Earnings improved on high-end product sales and cost reduction 9 4Q 2026 2027 Market demand is likely to be weak with ongoing uncertainties Small & Medium • Expand our premium smartphone product mix and increase sales volume through 8.6G IT OLED line ramp-up Large • Strive to enhance profitability with high-value-added products Unit: KRW trillion
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MX / NW 3Q 2026 Results Results Outlook MX/NW Results OP Sales Sales (MX)34.1 33.2 37.7 33.5 32.3 37.3 3.6 -0.7 -0.6 ~~ MX • Revenue increased QoQ/YoY, driven by new flagship launches including foldables • Earnings declined YoY on cost pressures, but improved QoQ with a higher flagship mix NW • Earnings declined QoQ/YoY due to lower North American and software sales ※ Image : Galaxy Z Flip8, Galaxy Z Fold8 Ultra, Galaxy Z Fold8 3Q 25 2Q 26 3Q 26 MX • Drive year-end peak-season sales of S26 series, foldables and new Ecosystem products • Mitigate profitability risks through efficiency improvements across all business processes NW • Secure profitability through revenue growth in North America, Korea and Japan 10 4Q 2026 2027 MX • Maintain mobile leadership via 3 strategic priorities Improve product mix centered on flagships with differentiated experiences by customer segment Enhance desirability and deliver tangible value through hardware and form factor innovation Minimize profit declines with agile market responses and operational efficiency NW • Drive profitable growth by securing new orders amid telco investment headwinds Unit: KRW trillion
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VD / DA / Harman VD • Capture peak-season demand with stronger channel partnerships; expand premium product sales DA • Strengthen business fundamentals and profitability Harman • Sustain growth and solid profitability, supported by the peak season for audio and automotive sales conversion 3Q 2026 Results VD • Revenue declined after major sporting event, but premium product sales and cost efficiency efforts helped mitigate profitability decline DA • Earnings declined due to higher raw material and logistics costs, despite stronger domestic marketing and B2B/subscription growth Harman • Solid automotive and audio product sales, and one-off U.S. tariff refunds drove a larger earnings improvement Results Outlook VD/DA Results Harman Results OP Sales Sales (VD) OP Sales 13.9 14.5 13.9 7.3 7.7 7.2 -0.1 -0.01 -0.2 4.0 4.6 4.3 0.4 0.4 0.6 ~~ ~~ ※ Image : 85-inch Micro RGB TV, Bespoke AI Laundry Combo 3Q 25 2Q 26 3Q 26 3Q 25 2Q 26 3Q 26 Unit: KRW trillion Unit: KRW trillion 11 4Q 2026 2027 VD • Deliver differentiated TV experiences and focus on growing the services and platform businesses DA • Secure profitability by increasing sales of innovative AI products and expanding high-margin businesses Harman • Strengthen automotive business competitiveness; extend audio leadership through portfolio enhancements and continued technology innovation
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Key Profitability Indicators Appendix 1: 3Q 2026 Results & Financial Data Based on consolidated financial statements Sales and Operating Profit 86.1 171.5 195.3 12.2 89.5 107.4 Sales Operating profit 127% YoY (KRW trillion) KRW trillion 3Q 25 % of sales 2Q 26 % of sales 3Q 26 % of sales Sales 86.1 100.0% 171.5 100.0% 195.3 100.0% Cost of sales 52.6 61.1% 52.2 30.4% 60.0 30.7% Gross profit 33.5 38.9% 119.3 69.6% 135.3 69.3% SG&A expenses 21.3 24.8% 29.8 17.4% 27.8 14.2% R&D expenses 8.8 10.3% 16.0 9.3% 14.4 7.4% Operating profit 12.2 14.1% 89.5 52.2% 107.4 55.0% Other non-operating income/expenses (0.1) - (0.01) - 0.2 - Equity method gain/loss 0.3 - 0.2 - 0.4 - Finance income/expenses 1.2 - 4.7 - (9.5) - Profitbefore income tax 13.5 15.7% 94.4 55.1% 98.5 50.5% Income tax 1.3 - 22.8 - 23.4 - Net profit 12.2 14.2% 71.6 41.8% 75.1 38.5% Profitattributable to owners of the parent 12.0 14.0% 71.3 41.6% 75.2 38.5% EPS(KRW) ※ Common stock 1,802 10,849 11,462 3Q 25 2Q 26 3Q 26 ROE 12% 56% 57% Profitability (net profit/sales) 0.14 0.42 0.38 Asset turnover (sales/asset) 0.66 1.03 1.15 Leverage (asset/equity) 1.27 1.31 1.29 EBITDA margin 28% 60% 62% 3Q 25 2Q 26 3Q 26 ~~
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Appendix 2: Results by Business Segment Operating ProfitSales KRW trillion 3Q 25 2Q 26 3Q 26 Difference(%) QoQ YoY Total 86.1 171.5 195.3 14%↑ 127%↑ DX 48.4 48.0 52.1 8%↑ 8%↑ MX / NW 34.1 33.2 37.7 14%↑ 11%↑ MX 33.5 32.3 37.3 15%↑ 11%↑ VD / DA 13.9 14.5 13.9 4%↓ 0.1%↓ VD 7.3 7.7 7.2 6%↓ 1%↓ DS 33.1 127.5 147.1 15%↑ 344%↑ Memory 26.7 120.8 140.7 16%↑ 427%↑ SDC 8.1 7.5 8.0 7%↑ 1%↓ Harman 4.0 4.6 4.3 5%↓ 9%↑ KRW trillion 3Q 25 2Q 26 3Q 26 Difference(Amount) QoQ YoY Total 12.2 89.5 107.4 17.9↑ 95.3↑ DX 3.5 (0.8) (0.8) 0.01↓ 4.3↓ MX / NW 3.6 (0.7) (0.6) 0.1↑ 4.2↓ VD / DA (0.1) (0.01) (0.2) 0.2↓ 0.1↓ DS 7.0 89.2 106.5 17.3↑ 99.5↑ SDC 1.2 0.7 1.1 0.4↑ 0.1↓ Harman 0.4 0.4 0.6 0.2↑ 0.2↑ * Sales and operating profit of each business stated above reflect the organizational structure as of December 2021 and the sales of business units include intersegment sales. * The DX Division provides earnings call materials based on the business structure before the reorganization to prevent confu sion and to improve understanding among investors. * DX: Device eXperience MX: Mobile eXperience DS: Device Solutions * Sales and operating profit of VD/DA include the results of Health & Medical Equipment business. * Harman’s sales and operating profit figures are based on Samsung Electronics’ fiscal year and acquisition related expenses are reflected.
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Appendix 3: Financial Position (Summary) KRW billion 30.Sep.25 30.Jun.26 30.Sep.26 Assets 523,659.6 759,480.5 791,841.9 Cash* 108,463.8 189,999.0 214,822.9 A/R 50,538.8 96,409.0 106,097.4 Inventories 50,332.4 71,389.1 71,995.2 Investments 38,345.3 104,824.5 97,241.6 PP&E 204,861.1 224,372.0 234,009.3 Intangible assets 26,469.1 29,386.5 27,067.0 Other assets 44,649.1 43,100.4 40,608.5 Total assets 523,659.6 759,480.5 791,841.9 Liabilities 110,158.1 180,170.8 177,730.3 Debts 16,672.3 22,408.7 17,191.2 Trade accounts and N/P 14,417.4 17,204.7 16,647.4 Other accounts and N/P & accrued expenses 43,313.5 53,642.2 67,064.8 Current income tax liabilities 6,189.6 30,303.1 24,387.8 Unearned revenue & other advances 2,953.8 4,466.5 3,810.2 Other liabilities 26,611.5 52,145.6 48,628.9 Shareholder equity 413,501.5 579,309.7 614,111.6 Capital stock 897.5 897.5 897.5 Total liabilities & shareholder equity 523,659.6 759,480.5 791,841.9 * Cash = Cash and Cash equivalents Short-term financial instruments Short-term financial assets at amortized cost, etc. 30.Sep.25 30.Jun.26 30.Sep.26 Current ratio* 263% 283% 310% Liability/equity 27% 31% 29% Debt/equity 4% 4% 3% Net debt/equity (22%) (29%) (32%) * Current ratio = current assets/current liabilities
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Appendix 4: Cash Flow (Summary) Current State of Net Cash (Net Cash = Cash* - Debts) KRW trillion 3Q 25 2Q 26 3Q 26 Cash (beginning of period)* 100.7 147.4 190.0 Cash flows from operating activities 22.6 105.1 98.6 Net profit 12.2 71.6 75.1 Depreciation 11.0 12.1 11.9 Cash flows from investing activities (13.0) (47.3) (35.2) Purchase of PP&E (10.8) (14.1) (26.9) Cash flows from financing activities (4.2) (17.9) (24.0) Increase in debts 2.1 (6.1) (4.6) Acquisition of treasury stock (3.9) (5.6) (12.5) Payment of dividends (2.5) (6.2) (2.5) Increase in cash 7.7 42.6 24.8 Cash (end of period)* 108.5 190.0 214.8 * Cash = Cash and cash equivalents short-term financial instruments short-term financial assets at amortized cost, etc. KRW trillion 30.Sep.25 30.Jun.26 30.Sep.26 Net Cash 91.8 167.6 197.6 * Cash = Cash and cash equivalents short-term financial instruments short-term financial assets at amortized cost, etc. • Total cash dividends for the third quarter amount to KRW 30 trillion (KRW 4,601 per common share and KRW 4,601 per preferred share) • Of the estimated KRW 90~110 trillion in total shareholder returns for 2026, and with KRW 35 trillion already planned or completed, we anticipate the remaining funds to be KRW 55~75 trillion • The return of the remaining funds will include a substantial share repurchase and cancellation program, along with cash dividends • The Company recognizes the growing market interest in the price gap between common and preferred shares, and we are committed to actively considering and adjusting the proportion of preferred shares in our share repurchase and cancellation program based on market conditions • The next shareholder return policy, along with the final amount of shareholder returns and the specific execution plans for the remaining funds for 2026, will be finalized at the Board meeting scheduled for late January 2027, with an announcement to follow Shareholder Return Update
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Thank you ※ Background image is of the Samsung Electronics Digital City(Suwon), located in South Korea