Samsung Electronics (005930) investor relations material

Executive summary

• Achieved record quarterly revenue of KRW 134 trillion and operating profit of KRW 57.2 trillion, with operating margin expanding to 43%, driven by AI technology innovation and a high value-added product portfolio.

• Demonstrated technological leadership and maintained market leadership through continuous innovation despite macroeconomic uncertainties.

• Net profit reached KRW 47.2 trillion, 2.4 times the previous quarter; EPS at KRW 7,123 (common) and KRW 7,124 (preferred).

Financial highlights

• Revenue rose 43% quarter-over-quarter and 69% year-over-year; operating profit surged 185% QoQ and 756% YoY.

• Memory business posted its second consecutive quarterly earnings record, with server DRAM and NAND shipments growing in the low teens and low 20% range quarter-over-quarter.

• Blended ASP rose by low 90% for DRAM and high 80% for NAND quarter-over-quarter.

• CapEx for Q1 was KRW 11.2 trillion, down KRW 9.2 trillion sequentially; most allocated to DS Division.

• Gross margin improved to 61.2%, EBITDA margin reached 51%, and ROE increased to 41%.

Outlook and guidance

• Semiconductor demand expected to remain strong in Q2, with memory prices on an upward trend due to AI infrastructure expansion.

• Foundry to improve earnings via advanced process sales and 2nm technology orders; S.LSI and Foundry targeting earnings improvement with advanced node utilization and new customer expansion.

• DX Division expects profit decline in Q2 due to rising costs, but aims to mitigate through premium product launches and cost efficiencies.

• SDC to pursue premium product growth amid market uncertainty.

• Full-year CapEx anticipated to increase substantially year-on-year, driven by AI-related demand.