[IR] Samsung Electronics (005930) – Q1 2024 Earnings Presentation / 2024-04-30

💡 3-Second Summary

In Q1 2024, Samsung Electronics posted consolidated revenue of KRW 71.92T and operating profit of KRW 6.61T, supported by a return to profitability in the memory business via high-value product mix and robust sales of the Galaxy S24 series. Looking ahead, the company plans to accelerate mass production of 8-layer/12-layer HBM3E and 1b-nm 32Gb DDR5 modules, while advancing 2nd-generation 3nm GAA and 2nm capabilities to address Generative AI demand and expand market leadership.

📊 1. [Key Guidance & Quantitative Roadmap Summary]

[Q1 2024 Historical Performance (Confirmed Financials)]

• Consolidated Revenue: KRW 71.92T (+6% QoQ, +13% YoY)
• Operating Profit: KRW 6.61T (+KRW 3.78T QoQ, +KRW 5.97T YoY)
• Net Profit: KRW 6.75T (Net Margin: 9.4%, ROE: 7%)
• R&D Expenses: KRW 7.82T (10.9% of total revenue)
• Division Financial Breakdown (Revenue / Operating Profit):
  • DS (Device Solutions): KRW 23.14T (+68% YoY) / KRW 1.91T (Turned profitable YoY +KRW 6.50T)
    • Memory: KRW 17.49T (+96% YoY)
  • DX (Device eXperience): KRW 47.29T (+2% YoY) / KRW 4.07T
    • MX / Network: KRW 33.53T / KRW 3.51T
    • VD / Digital Appliances: KRW 13.48T / KRW 0.53T
  • SDC (Samsung Display): KRW 5.39T / KRW 0.34T
  • Harman: KRW 3.20T / KRW 0.24T
• Balance Sheet & Cash Flow Highlights:
  • Net Cash Position: KRW 81.89T (Increased from KRW 79.72T at FY2023 year-end)
  • Acquisition of Tangible Assets (Capex): KRW 13.42T executed in Q1 ’24
  • Key Financial Ratios: Current Ratio 255%, Debt-to-Equity Ratio 27%

[Quantitative & Strategic Roadmap (Forward-Looking)]

• Q2 2024 Roadmap:
  • Memory: Mass production of 8-layer and 12-layer HBM3E to address Generative AI demand ; commence mass production and shipping of 1b-nm 32Gb DDR5-based high-density products.
  • Foundry: Expect double-digit revenue growth QoQ on gradual market recovery ; completed development of 2nm design infrastructure and prepared 3DIC-compatible 4nm process.
• H2 2024 Roadmap:
  • Memory: Accelerate ramp-up of industry-first 12-layer HBM3E ; solidify high-density DDR5 leadership via 1b-nm 32Gb chips ; commence mass production of industry-first V9 NAND.
  • Foundry: Initiate mass production of 2nd-generation 3nm GAA ; improve 2nm process maturity to expand AI/HPC orders ; target 2024 annual revenue growth to exceed market average.
  • MX: Expand AI experience across flagships and tablets, improve foldable products, and drive annual smartphone revenue growth.

🚀 2. [Business Strategies & Future Plans]

• Device Solutions (Memory / System LSI / Foundry):
  • Memory: Responding to surging demand for Generative AI, servers, and storage by scaling production and sales of 8-layer/12-layer HBM3E and 1b-nm 32Gb DDR5 high-density modules. Expanding market leadership through leading-edge technologies such as V9 NAND mass production.
  • System LSI: Ensuring stable supply of flagship SoCs to capture On-device AI growth, enhancing sensor supply responsiveness via Fab-lite logic sourcing , and adjusting SoC, sensor, and DDI pricing/mix strategies.
  • Foundry: Starting mass production of 2nd-generation 3nm GAA, advancing 2nm process maturity and design infrastructure, and utilizing 3DIC-ready 4nm capabilities to secure AI/HPC customer orders.
• Samsung Display (SDC):
  • Small- and medium-sized panel business plans to expand Flexible OLED sales through power-saving and durability technologies , while accelerating Rigid OLED cost reduction to replace LCDs. Large QD-OLED business aims to expand capacity without additional investment via production efficiency and improve product mix to grow revenue.
• Device eXperience (MX / VD / Digital Appliances / Harman):
  • MX: Enhancing Galaxy AI features on the S24, expanding AI experiences across device portfolios, and strengthening the ecosystem through improved foldables, Galaxy Ring, and new wearables.
  • VD / Digital Appliances: VD focuses on expanding premium strategic lineups (Neo QLED, OLED) and strengthening TV Plus platform services. Appliances will expand Bespoke AI globally and accelerate B2B business structure improvements via HVAC and built-in systems.
  • Harman: Securing new orders in automotive display/HUD solutions and expanding consumer audio lineups centered on TWS.

📝 Editor’s Comment (Management Perspective)

① Analysis of Management’s Core Growth Logic Management views the market as experiencing strong demand for high-performance DDR5, storage, and HBM driven by Generative AI adoption alongside continuous memory price increases and conventional server demand recovery. To capitalize on this environment, the company’s core strategy is to accelerate leading-edge node transitions—specifically ramping up 8-layer and industry-first 12-layer HBM3E, shipping 1b-nm 32Gb DDR5 high-density server modules, and introducing industry-first V9 NAND—to address Generative AI demand and expand market leadership. Simultaneously, the Foundry business aims to outperform market growth by commencing mass production of 2nd-generation 3nm GAA and maturing its 2nm design infrastructure to secure high-growth AI/HPC orders.

② Key Tracking Points

To evaluate whether management’s leading-edge memory and advanced foundry strategies translate into verified business execution, the primary tracking points include:

• HBM3E 8-Layer/12-Layer Ramp-Up & 1b-nm 32Gb DDR5 Shipments: Progress in the mass production ramp-up of 12-layer HBM3E and shipment expansion of 1b-nm 32Gb-based high-density server modules in subsequent quarterly earnings presentations and official IR materials.
• Foundry 2nd-Gen 3nm GAA Mass Production & 2nm Process Maturity: Execution of 2nd-gen 3nm GAA mass production in H2 2024 and AI/HPC order acquisition progress driven by 2nm process maturity improvements through subsequent IR materials and statutory filings.

📢 Disclaimer & Source Information

Source: This content was structured and generated based on official financial fact data from the company’s IR presentations and regulatory press releases.

Investment Risk Warning: This content is provided solely for informational and linguistic reference purposes. Forward-looking guidance contained in IR materials represents corporate estimates and does not guarantee future financial performance. Under no circumstances does this constitute financial advice or a recommendation to buy/sell specific securities. All investment decisions and financial liabilities rest entirely with the investor.

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