Trading Performance
For the year ended December 31,
2016 2015 2014
KRW KRW KRW
Revenue 201,866,745 200,653,482 206,205,987
Cost of Sales 120,277,715 123,482,118 128,278,800
Gross Profit 81,589,030 77,171,364 77,927,187
Total Operating
Expenses
52,348,358 50,757,922 52,902,116
Operating Profit 29,240,672 26,413,442 25,025,071
Other non-operating
income
3,238,261 1,685,947 3,801,357
Other non-operating
expense
2,463,814 3,723,434 2,259,737
Share of profit of
associates and joint
ventures
19,501 1,101,932 342,516
Financial income 11,385,645 10,514,879 8,259,829
Financial expense 10,706,613 10,031,771 7,294,002
Profit before income
tax
30,713,652 25,960,995 27,875,034
Income tax expense 7,987,560 6,900,851 4,480,676
Profit for the year 22,726,092 19,060,144 23,394,358
Other 310,437 365,516 311,859
Net Income 22,415,655 18,684,628 23,082,499
Profit attributable to
owners of the parent
22,415,655 18,694,628 23,082,499
Profit attributable to
non-controllable
interests 310,437 365,516 311,859
Earnings per share
profit attributable to
owners of the parents:
-Basic
-Diluted
157,967
157,967
126,305
126,303
153,105
153,096
Samsung Electronic’s revenue was observed to be the highest in 2014, out of the three years
observed above, being that of ?206,205,987. It then decreased to ?200,653,482 in 2015 and
increased again in 2016 to ?201,866,745. In 2015, though Samsung expanded sales of its highend
smartphones, including the Galaxy Edge series with curved displays, consumers flocked to
cheaper smartphones, driving down its overall profit. The sales recorded in 2015 were also
supported by the semiconductor business, which logged ?2.8 trillion solely in the 4th quarter. The
increase in 2016 in total revenue was generated mainly thanks to Samsung’s component
businesses. These businesses are responsible for memory chips and display panels, which were
the stellar performers with revenue rising 77% to $4.25 billion in the fourth quarter of 2016. The
cost of sales kept decreasing over the years, thus 2016 having the lowest cost of sales and 2014
having the highest cost of sales. These cost of goods sold include depreciation and amortisation of
intangibles amongst other costs. Because of this, we can conclude that the gross profit decreased
from 2014 (?77,927,187) to 2015 (?77,171,364), but was at it’s highest in 2016 with a total of
?81,589,030 gross profit.
The total operating expenses decreased from 2014 to 2015, but increased again in 2016 – almost
as much as they were in 2014. In 2014, they totalled to ?52,902,116. These include ?14,111,381
in research and development, ?24,171,604in sales, general and administrative expenses, and
?14,605,373in other operating expenses. In 2015, they totalled to ?50,757,922.These include
?13,705,695 in research and development, ?22,827,216 in sales, general and administrative
expenses, and ?14,225,011 in other operating expenses. In 2016, they totalled to ?52,348,358
which include ?14,111,381 in research and development, ?24,171,604 in sales, general and
administrative expenses and ?14,065,373 in other operating expenses.
Other non-operating income decreased drastically from 2014 which totalled to ?3,801,357 to
2015, which totalled to ?1,685,947. However, it increased to ?3,238,261 again in 2016. This nonoperating
income includes dividends on available-for-sale financial assets as well as gains on
disposals. Other non-operating expenses increased from ?2,259,737 in 2014, to ?3,723,434 in
2015, and decreased again to ?2,463,814 in 2016. These other non-operating expenses include
losses on disposals. The financial income increase from ?8,259,829 in 2014, to ?10,514,879 in
2015 to ?11,385,645 in 2016, thus we can say that it kept increasing throughout the years. This
includes interest on available-for-sale assets as well as held-to-maturity financial assets calculated
using the effective interest method. However, financial expenses also increase to reach their
highest in 2016, totalling to ?10,706,613. This shows a significant increase of ?674,842 from
2015. The amount of ?10,031,771 in 2015 shows a big increase of ?2,737,769 from that in 2014.
Like the gross profit and the operating profit, the biggest figure representing the profit before
income tax is that of ?30,713,652 in 2016.
The income tax expense increased by a lot from 2014 to, and again from 2015 to 2016 where it
reached it’s highest at ?7,987,560. The difference between the income tax expense in 2016 and
in 2014 is that of ?3,506,884. This income tax expense includes current and deferred tax. This
results in 2014 having the highest profit for the year of ?23,394,358, and 2016 having a close
second highest profit of ?22,726,092. 2015 resulted in the lowest profit amongst these 3 years of
?19,060,144. There were some other deductions: ?311,859 in 2014, ?365,516 in 2015 and
?310,437 in 2016. This results in the net income being the highest in 2014, totalling to
?23,082,499, second highest in 2016 totalling to ?22,415,655 and being the least in 2015,
totalling to ?18,684,628.
The basic earnings per share for profit decreased from ?153,105 in 2014, to ?126,305 in 2015.
In 2016, the basic earnings per share increased to ?126,305.
Note: All amounts mentioned above are in millions of Korean won.