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1、 SAMSUNG ELECTRONICS CO.,LTD.AND ITS SUBSIDIARIES Interim Consolidated Financial Statements June 30,2023 and 2022 (With Independent Auditors Review Report Thereon)Contents Page Independent Auditors Review Report 1 Interim Consolidated Statements of Financial Position 3 Interim Consolidated Statement

2、s of Profit or Loss 6 Interim Consolidated Statements of Comprehensive Income 7 Interim Consolidated Statements of Changes in Equity 8 Interim Consolidated Statements of Cash Flows 12 Notes to the Interim Consolidated Financial Statements 14 152,Teheran-ro,Gangnam-gu,Seoul 06236(Yeoksam-dong,Gangnam

3、 Finance Center 27th Floor)Republic of Korea Independent Auditors Review Report Based on a report originally issued in Korean To the Board of Directors and Shareholders Samsung Electronics Co.,Ltd.:Reviewed Financial Statements We have reviewed the accompanying interim consolidated financial stateme

4、nts of Samsung Electronics Co.,Ltd.and its subsidiaries(“the Group”),expressed in Korean won,which comprise the interim consolidated statement of financial position as of June 30,2023,the interim consolidated statements of profit or loss and comprehensive income for the three-month and six-month per

5、iods ended June 30,2023,and the interim consolidated statements of changes in equity and cash flows for the six-month period ended June 30,2023,and notes,comprising material accounting policy information and other explanatory information.Managements Responsibility for the Interim Consolidated Financ

6、ial Statements Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with Korean International Financial Reporting Standard No.1034,Interim Financial Reporting,and for such internal control as management determines is nec

7、essary to enable the preparation of interim consolidated financial statements that are free form material misstatement,whether due to fraud or error.Auditors Responsibility Our responsibility is to express a report on these interim consolidated financial statements based on our review.We conducted o

8、ur review in accordance with the Review Standards for Quarterly and Semiannual Financial Statements established by the Security and Futures Commission of the Republic of Korea.A review of interim financial information consists principally of making inquiries,primarily of persons responsible for fina

9、ncial and accounting matters,and applying analytical and other review procedures.A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matte

10、rs that might be identified in an audit.Accordingly,we do not express an audit opinion.Conclusion Based on our review,nothing has come to our attention that causes us to believe that the interim consolidated financial statements referred to above are not presented fairly,in all material respects,in

11、accordance with Korean International Financial Reporting Standard No.1034,Interim Financial Reporting.Other matters The interim consolidated statements of profit or loss and comprehensive income for the three-month and six-month periods ended June 30,2022,and the interim consolidated statements of c

12、hanges in equity and cash flows for the six-month period ended June 30,2022,presented for comparative purposes,were reviewed by other auditors whose report thereon dated August 12,2022,expressed that nothing came to their attention that caused them to believe that the accompanying interim consolidat

13、ed financial information as of June 30,2022 was not prepared,in all material respects,in accordance with Korean International Financial Reporting Standard No.1034,Interim Financial Reporting.The consolidated statement of financial position of the Group as of December 31,2022,and the related consolid

14、ated statements of comprehensive income,changes in equity and cash flows for the year then ended,which are not accompanying this review report,were audited by other auditors,whose report thereon dated February 15,2023,expressed an unqualified opinion.The accompanying statement of financial position

15、of the Group as of December 31,2022,presented for comparative purposes,is not different from that audited by other auditors in all material respects.The procedures and practices utilized in the Republic of Korea to review such interim consolidated financial statements may differ from those generally

16、 accepted and applied in other countries.The accompanying interim consolidated financial statements as of June 30,2023 and December 31,2022 and for the three-month and six-months periods ended June 30,2023 and 2022 have been translated into United States dollars solely for the convenience of the rea

17、der.We have reviewed the translation and nothing came to our attention that cause us to believe that the interim consolidated financial statements expressed in Korean won have not been translated into dollars on the basis set forth in note 2.3 to the interim consolidated financial statements.-2-Seou

18、l,Korea August 11,2023 This report is effective as of August 11,2023,the review report date.Certain subsequent events or circumstances,which may occur between the review report date and the time of reading this report,could have a material impact on the accompanying interim consolidated financial st

19、atements and notes thereto.Accordingly,the readers of the review report should understand that the above review report has not been updated to reflect the impact of such subsequent events or circumstances,if any.Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF FINA

20、NCIAL POSITION The above interim consolidated statements of financial position should be read in conjunction with the accompanying notes.-3-(In millions of Korean won,in thousands of US dollars(Note 2.3)June 30,December 31,June 30,December 31,Notes 2023 2022 2023 2022 KRW KRW USD USD Assets Current

21、assets Cash and cash equivalents 3,25 79,919,775 49,680,710 61,700,345 38,354,925 Short-term financial instruments 3,25 17,180,130 65,102,886 13,263,550 50,261,284 Short-term financial assets at amortized cost 3,25-414,610-320,091 Short-term financial assets at fair value through profit or loss 3,4,

22、25 25,310 29,080 19,540 22,451 Trade receivables 3,25 36,104,142 35,721,563 27,873,427 27,578,065 Non-trade receivables 3,25 5,822,772 6,149,209 4,495,346 4,747,365 Prepaid expenses 3,214,408 2,867,823 2,481,615 2,214,041 Inventories 5 55,504,798 52,187,866 42,851,287 40,290,521 Other current assets

23、 3,25 6,204,038 6,316,834 4,789,694 4,876,776 203,975,373 218,470,581 157,474,804 168,665,519 Non-current assets Financial assets at fair value through other comprehensive income 3,4,25 10,308,125 11,397,012 7,958,166 8,798,818 Financial assets at fair value through profit or loss 3,4,25 1,573,457 1

24、,405,468 1,214,754 1,085,061 Investments in associates and joint ventures 6 11,334,699 10,893,869 8,750,711 8,410,377 Property,plant and equipment 7 177,869,942 168,045,388 137,320,667 129,735,831 Intangible assets 8 23,430,234 20,217,754 18,088,809 15,608,683 Net defined benefit assets 11 5,143,048

25、 5,851,972 3,970,580 4,517,889 Deferred income tax assets 5,527,377 5,101,318 4,267,293 3,938,363 Other non-current assets 3,25 8,838,297 7,041,145 6,823,417 5,435,965 244,025,179 229,953,926 188,394,397 177,530,987 Total assets 448,000,552 448,424,507 345,869,201 346,196,506 Samsung Electronics Co.

26、,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION The above interim consolidated statements of financial position should be read in conjunction with the accompanying notes.-4-(In millions of Korean won,in thousands of US dollars(Note 2.3)June 30,December 31,June 30,Dece

27、mber 31,Notes 2023 2022 2023 2022 KRW KRW USD USD Liabilities and Equity Current liabilities Trade payables 3,25 11,744,005 10,644,686 9,066,707 8,218,001 Short-term borrowings 3,9,25 3,557,360 5,147,315 2,746,383 3,973,874 Other payables 3,25 15,020,336 17,592,366 11,596,128 13,581,808 Advances rec

28、eived 14 1,165,583 1,314,934 899,863 1,015,167 Withholdings 3,25 756,934 1,298,244 584,375 1,002,281 Accrued expenses 3,14,25 25,402,072 29,211,487 19,611,124 22,552,101 Current income tax liabilities 2,601,584 4,250,397 2,008,497 3,281,428 Current portion of long-term liabilities 3,9,10,25 1,263,84

29、1 1,089,162 975,721 840,864 Provisions 12 6,861,551 5,844,907 5,297,313 4,512,435 Other current liabilities 3,14,25 2,407,372 1,951,354 1,858,560 1,506,501 70,780,638 78,344,852 54,644,671 60,484,460 Non-current liabilities Debentures 3,10,25 554,625 536,093 428,186 413,879 Long-term borrowings 3,9,

30、25 3,763,250 3,560,672 2,905,336 2,748,940 Long-term other payables 3,25 5,358,916 2,753,305 4,137,236 2,125,630 Net defined benefit liabilities 11 429,242 268,370 331,387 207,189 Deferred income tax liabilities 3,485,352 5,111,332 2,690,791 3,946,094 Long-term provisions 12 2,271,470 1,928,518 1,75

31、3,640 1,488,871 Other non-current liabilities 3,14,25 2,381,433 1,171,761 1,838,534 904,633 18,244,288 15,330,051 14,085,110 11,835,236 Total liabilities 89,024,926 93,674,903 68,729,781 72,319,696 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

32、 The above interim consolidated statements of financial position should be read in conjunction with the accompanying notes.-5-(In millions of Korean won,in thousands of US dollars(Note 2.3)June 30,December 31,June 30,December 31,Notes 2023 2022 2023 2022 KRW KRW USD USD Equity attributable to owners

33、 of the parent company Preference shares 15 119,467 119,467 92,232 92,232 Ordinary shares 15 778,047 778,047 600,674 600,674 Share premium 4,403,893 4,403,893 3,399,931 3,399,931 Retained earnings 16 338,310,655 337,946,407 261,185,471 260,904,262 Other components of equity 17 5,430,351 1,938,328 4,

34、192,387 1,496,444 349,042,413 345,186,142 269,470,695 266,493,543 Non-controlling interests 9,933,213 9,563,462 7,668,725 7,383,267 Total equity 358,975,626 354,749,604 277,139,420 273,876,810 Total liabilities and equity 448,000,552 448,424,507 345,869,201 346,196,506 Samsung Electronics Co.,Ltd.an

35、d its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF PROFIT OR LOSS The above interim consolidated statements of profit or loss should be read in conjunction with the accompanying notes.-6-(In millions of Korean won,in thousands of US dollars(Note 2.3)For the three-month periods ended June 30,For t

36、he six-month periods ended June 30,Notes 2023 2022 2023 2022 2023 2022 2023 2022 KRW KRW USD USD KRW KRW USD USD Revenue 26 60,005,533 77,203,607 46,325,982 59,603,386 123,750,904 154,985,105 95,539,226 119,652,920 Cost of sales 18 41,647,190 46,269,748 32,152,818 35,721,565 87,654,283 93,341,805 67

37、,671,606 72,062,535 Gross profit 18,358,343 30,933,859 14,173,164 23,881,821 36,096,621 61,643,300 27,867,620 47,590,385 Selling and administrative expenses 18,19 17,689,796 16,836,814 13,657,027 12,998,500 34,787,896 33,424,846 26,857,248 25,804,934 Operating profit 26 668,547 14,097,045 516,137 10

38、,883,321 1,308,725 28,218,454 1,010,372 21,785,451 Other non-operating income 20 201,176 463,971 155,314 358,199 705,471 1,164,164 544,644 898,768 Other non-operating expense 20 169,057 600,393 130,517 463,521 373,039 1,053,503 287,997 813,334 Share of net profit of associates and joint ventures 6 1

39、99,941 259,229 154,360 200,132 413,782 491,706 319,452 379,611 Financial income 21 4,056,928 5,371,885 3,132,064 4,147,248 8,684,977 8,874,074 6,705,050 6,851,038 Financial expense 21 3,244,540 5,130,979 2,504,877 3,961,262 7,200,541 8,164,297 5,559,023 6,303,070 Profit before income tax 1,712,995 1

40、4,460,758 1,322,481 11,164,117 3,539,375 29,530,598 2,732,498 22,798,464 Income tax expense(income)22(10,576)3,361,953(8,165)2,595,523 241,204 7,107,165 186,216 5,486,934 Profit for the period 1,723,571 11,098,805 1,330,646 8,568,594 3,298,171 22,423,433 2,546,282 17,311,530 Profit attributable to:O

41、wners of the parent company 1,547,018 10,954,515 1,194,342 8,457,198 2,948,270 22,083,609 2,276,148 17,049,176 Non-controlling interests 176,553 144,290 136,304 111,396 349,901 339,824 270,134 262,354 Earnings per share(in Korean won,in US dollars)23 -Basic 228 1,613 0.18 1.25 434 3,251 0.34 2.51-Di

42、luted 228 1,613 0.18 1.25 434 3,251 0.34 2.51 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME The above interim consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.-7-(In millions of Korean

43、 won,in thousands of US dollars(Note 2.3)For the three-month periods ended June 30,For the six-month periods ended June 30,Notes 2023 2022 2023 2022 2023 2022 2023 2022 KRW KRW USD USD KRW KRW USD USD Profit for the period 1,723,571 11,098,805 1,330,646 8,568,594 3,298,171 22,423,433 2,546,282 17,31

44、1,530 Other comprehensive income(loss)Items that will not be reclassified subsequently to profit or loss:Gain(loss)on valuation of financial assets at fair value through other comprehensive income,net of tax 17 475,009(1,195,764)366,720(923,164)1,471,490(1,799,944)1,136,032(1,389,608)Share of other

45、comprehensive income(loss)of associates and joint ventures,net of tax 17(7,191)(15,627)(5,552)(12,064)22,697(11,875)17,523(9,168)Remeasurement of net defined benefit assets,net of tax 17(102,927)(34,481)(79,463)(26,620)(350,551)(97,369)(270,635)(75,171)Items that may be reclassified subsequently to

46、profit or loss:Share of other comprehensive income(loss)of associates and joint ventures,net of tax 17(50,332)295,429(38,858)228,080 85,428 34,846 65,953 26,902 Foreign currency translation,net of tax 17(403,003)4,919,214(311,130)3,797,773 4,653,884 7,356,247 3,592,931 5,679,232 Gain on valuation of

47、 cash flow hedge derivatives 17 4,700 1,567 3,630 1,209 12,808 7,909 9,888 6,106 Other comprehensive income(loss)for the period,net of tax (83,744)3,970,338(64,653)3,065,214 5,895,756 5,489,814 4,551,692 4,238,293 Total comprehensive income for the period 1,639,827 15,069,143 1,265,993 11,633,808 9,

48、193,927 27,913,247 7,097,974 21,549,823 Comprehensive income attributable to:Owners of the parent company 1,474,638 14,890,896 1,138,463 11,496,196 8,761,401 27,498,046 6,764,052 21,229,276 Non-controlling interests 165,189 178,247 127,530 137,612 432,526 415,201 333,922 320,547 Samsung Electronics

49、Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY The above interim consolidated statements of changes in equity should be read in conjunction with the accompanying notes.-8-(In millions of Korean won)For the six-month period ended June 30,2022 Notes Preference shares

50、 Ordinary shares Share premium Retained earnings Other components of equity Equity attributable to owners of the parent company Non-controlling interests Total Balance as of January 1,2022 119,467 778,047 4,403,893 293,064,763(2,128,473)296,237,697 8,662,234 304,899,931 Profit for the period -22,083

51、,609-22,083,609 339,824 22,423,433 Loss on valuation of financial assets at fair value through other comprehensive income,net of tax 17-(26,456)(1,756,494)(1,782,950)(16,994)(1,799,944)Share of other comprehensive income of associates and joint ventures,net of tax 17-22,729 22,729 242 22,971 Foreign

52、 currency translation,net of tax -7,264,141 7,264,141 92,106 7,356,247 Remeasurement of net defined benefit liabilities(assets),net of tax 17-(97,392)(97,392)23(97,369)Gain on valuation of cash flow hedge derivatives 17-7,909 7,909-7,909 Total comprehensive income for the period -22,057,153 5,440,89

53、3 27,498,046 415,201 27,913,247 Dividends declared -(4,905,131)-(4,905,131)(1,457)(4,906,588)Capital transactions under common control -(404)(404)Others -478 478 Total transactions with owners -(4,905,131)-(4,905,131)(1,383)(4,906,514)Balance as of June 30,2022 119,467 778,047 4,403,893 310,216,785

54、3,312,420 318,830,612 9,076,052 327,906,664 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY The above interim consolidated statements of changes in equity should be read in conjunction with the accompanying notes.-9-(In thousands of US dollars(No

55、te 2.3)For the six-month period ended June 30,2022 Notes Preference shares Ordinary shares Share premium Retained earnings Other components of equity Equity attributable to owners of the parent company Non-controlling interests Total Balance as of January 1,2022 92,232 600,674 3,399,931 226,254,353(

56、1,643,242)228,703,948 6,687,492 235,391,440 Profit for the period -17,049,176-17,049,176 262,354 17,311,530 Loss on valuation of financial assets at fair value through other comprehensive income,net of tax 17-(20,425)(1,356,063)(1,376,488)(13,120)(1,389,608)Share of other comprehensive income of ass

57、ociates and joint ventures,net of tax 17-17,547 17,547 187 17,734 Foreign currency translation,net of tax -5,608,124 5,608,124 71,108 5,679,232 Remeasurement of net defined benefit liabilities(assets),net of tax 17-(75,189)(75,189)18(75,171)Gain on valuation of cash flow hedge derivatives 17-6,106 6

58、,106-6,106 Total comprehensive income for the period -17,028,751 4,200,525 21,229,276 320,547 21,549,823 Dividends declared -(3,786,901)-(3,786,901)(1,125)(3,788,026)Capital transactions under common control -(312)(312)Others -369 369 Total transactions with owners -(3,786,901)-(3,786,901)(1,068)(3,

59、787,969)Balance as of June 30,2022 92,232 600,674 3,399,931 239,496,203 2,557,283 246,146,323 7,006,971 253,153,294 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY The above interim consolidated statements of changes in equity should be read in c

60、onjunction with the accompanying notes.-10-(In millions of Korean won)For the six-month period ended June 30,2023 Notes Preference shares Ordinary shares Share premium Retained earnings Other components of equity Equity attributable to owners of the parent company Non-controlling interests Total Bal

61、ance as of January 1,2023 119,467 778,047 4,403,893 337,946,407 1,938,328 345,186,142 9,563,462 354,749,604 Profit for the period -2,948,270-2,948,270 349,901 3,298,171 Gain(loss)on valuation of financial assets at fair value through other comprehensive income,net of tax 17-2,321,108(897,106)1,424,0

62、02 47,488 1,471,490 Share of other comprehensive income of associates and joint ventures,net of tax 17-104,471 104,471 3,654 108,125 Foreign currency translation,net of tax -4,622,266 4,622,266 31,618 4,653,884 Remeasurement of net defined benefit liabilities(assets),net of tax 17-(350,415)(350,415)

63、(136)(350,551)Gain on valuation of cash flow hedge derivatives 17-12,807 12,807 1 12,808 Total comprehensive income for the period -5,269,378 3,492,023 8,761,401 432,526 9,193,927 Dividends declared -(4,905,130)-(4,905,130)(61,116)(4,966,246)Capital transactions under common control -(825)(825)Other

64、s -(834)(834)Total transactions with owners -(4,905,130)-(4,905,130)(62,775)(4,967,905)Balance as of June 30,2023 119,467 778,047 4,403,893 338,310,655 5,430,351 349,042,413 9,933,213 358,975,626 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Th

65、e above interim consolidated statements of changes in equity should be read in conjunction with the accompanying notes.-11-(In thousands of US dollars(Note 2.3)For the six-month period ended June 30,2023 Notes Preference shares Ordinary shares Share premium Retained earnings Other components of equi

66、ty Equity attributable to owners of the parent company Non-controlling interests Total Balance as of January 1,2023 92,232 600,674 3,399,931 260,904,262 1,496,444 266,493,543 7,383,267 273,876,810 Profit for the period -2,276,148-2,276,148 270,134 2,546,282 Gain(loss)on valuation of financial assets

67、 at fair value through other comprehensive income,net of tax 17-1,791,961(692,590)1,099,371 36,661 1,136,032 Share of other comprehensive income of associates and joint ventures,net of tax 17-80,655 80,655 2,821 83,476 Foreign currency translation,net of tax -3,568,521 3,568,521 24,410 3,592,931 Rem

68、easurement of net defined benefit liabilities(assets),net of tax 17-(270,530)(270,530)(105)(270,635)Gain on valuation of cash flow hedge derivatives 17-9,887 9,887 1 9,888 Total comprehensive income for the period -4,068,109 2,695,943 6,764,052 333,922 7,097,974 Dividends declared -(3,786,900)-(3,78

69、6,900)(47,183)(3,834,083)Capital transactions under common control -(637)(637)Others -(644)(644)Total transactions with owners -(3,786,900)-(3,786,900)(48,464)(3,835,364)Balance as of June 30,2023 92,232 600,674 3,399,931 261,185,471 4,192,387 269,470,695 7,668,725 277,139,420 Samsung Electronics Co

70、.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS The above interim consolidated statements of cash flows should be read in conjunction with the accompanying notes.-12-(In millions of Korean won,in thousands of US dollars(Note 2.3)For the six-month period ended June 30,Notes 2

71、023 2022 2023 2022 KRW KRW USD USD Operating activities Profit for the period 3,298,171 22,423,433 2,546,282 17,311,530 Adjustments 24 21,958,025 28,057,798 16,952,221 21,661,420 Changes in assets and liabilities arising from operating activities 24(8,273,365)(19,427,200)(6,387,273)(14,998,353)Cash

72、generated from operations 16,982,831 31,054,031 13,111,230 23,974,597 Interest received 2,429,443 706,755 1,875,599 545,635 Interest paid (441,850)(264,834)(341,121)(204,459)Dividends received 52,618 229,806 40,623 177,417 Income tax paid (4,561,353)(7,136,623)(3,521,495)(5,509,678)Net cash from ope

73、rating activities 14,461,689 24,589,135 11,164,836 18,983,512 Investing activities Net decrease(increase)in short-term financial instruments 43,879,546(906,942)33,876,261(700,185)Net decrease in short-term financial assets at amortized cost 416,095 2,198,246 321,237 1,697,109 Net decrease(increase)i

74、n short-term financial assets at fair value through profit or loss 3,770(14,748)2,911(11,386)Disposal of long-term financial instruments 4,491,705 5,343,921 3,467,724 4,125,659 Acquisition of long-term financial instruments (534)(4,326,888)(412)(3,340,481)Disposal of financial assets at fair value t

75、hrough other comprehensive income 3,750,752 484,094 2,895,687 373,734 Acquisition of financial assets at fair value through other comprehensive income (20,013)(15,385)(15,451)(11,878)Disposal of financial assets at fair value through profit or loss 38,818 157,878 29,969 121,886 Acquisition of financ

76、ial assets at fair value through profit or loss (69,368)(76,726)(53,554)(59,235)Disposal of investments in associates and joint ventures 17,839 6,933 13,772 5,352 Acquisition of investments in associates and joint ventures (65,182)(903,758)(50,322)(697,727)Disposal of property,plant and equipment 67

77、,844 105,839 52,378 81,711 Acquisition of property,plant and equipment (29,373,990)(20,157,775)(22,677,558)(15,562,377)Disposal of intangible assets 11,253 19,036 8,688 14,696 Acquisition of intangible assets (1,620,300)(1,576,361)(1,250,918)(1,216,996)Cash outflow from business combinations -(31,38

78、3)-(24,229)Cash outflow from other investing activities (505,671)(235,248)(390,392)(181,618)Net cash from(used in)investing activities 21,022,564(19,929,267)16,230,020(15,385,965)Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS The above interim consolid

79、ated statements of cash flows should be read in conjunction with the accompanying notes.-13-(In millions of Korean won,in thousands of US dollars(Note 2.3)For the six-month period ended June 30,Notes 2023 2022 2023 2022 KRW KRW USD USD Financing activities Net decrease in short-term borrowings (1,50

80、3,980)(668,224)(1,161,115)(515,888)Increase in long-term borrowings 193,279 73,224 149,217 56,531 Repayment of debentures and long-term borrowings (543,400)(955,802)(419,520)(737,906)Dividends paid (4,905,792)(4,906,518)(3,787,411)(3,787,972)Net decrease in non-controlling interests (827)(323)(640)(

81、250)Net cash used in financing activities (6,760,720)(6,457,643)(5,219,469)(4,985,485)Effect of foreign exchange rate changes 1,515,532 2,349,501 1,170,033 1,813,887 Net increase in cash and cash equivalents 30,239,065 551,726 23,345,420 425,949 Cash and cash equivalents Beginning of the period 49,6

82、80,710 39,031,415 38,354,925 30,133,365 End of the period 79,919,775 39,583,141 61,700,345 30,559,314 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -14-As of June 30,2023 and December 31,2022,and for the three-month and six-month periods ende

83、d June 30,2023 and 2022 1.General Information 1.1 Company Overview Samsung Electronics Co.,Ltd.(“SEC”)was incorporated under the laws of the Republic of Korea in 1969 and listed its shares on the Korea Stock Exchange in 1975.SEC and its subsidiaries(collectively referred to as the“Company”)operate f

84、our business divisions:DX,DS,SDC and Harman.DX(Device eXperience)division comprises businesses for digital TVs,refrigerators,mobile phones and communication systems.DS(Device Solutions)division comprises businesses for memory,foundry,and system LSI.SDC includes display panels products.Harman divisio

85、n includes connected car systems,audio and visual products,enterprise automation solutions and connected services.SEC is domiciled in the Republic of Korea and is located in Suwon,the Republic of Korea.These consolidated financial statements have been prepared in accordance with Korean International

86、 Financial Reporting Standards(“Korean IFRS”)1110,Consolidated Financial Statements.SEC,as the controlling company,consolidates its 233 subsidiaries,including Samsung Display and Samsung Electronics America.The Company also applies the equity method of accounting for its 38 associates and joint vent

87、ures,including Samsung Electro-Mechanics Co.,Ltd.1.2 Consolidated Subsidiaries The consolidated subsidiaries as of June 30,2023 are as follows:Area Subsidiaries Industry Percentage of ownership(%)(*)America Samsung Electronics America,Inc.(SEA)Sale of electronic devices 100.0 Samsung International,I

88、nc.(SII)Manufacture of electronic devices 100.0 Samsung Mexicana S.A.de C.V(SAMEX)Manufacture of electronic devices 100.0 Samsung Electronics Home Appliances America,LLC(SEHA)Manufacture of home appliances 100.0 Samsung Research America,Inc.(SRA)R&D 100.0 Samsung Next LLC(SNX)Management of overseas

89、subsidiaries 100.0 Samsung Next Fund LLC(SNXF)Technology business,venture capital investments 100.0 NeuroLogica Corp.Manufacture and sale of medical equipment 100.0 Samsung HVAC America,LLC Sale of air conditioning products 100.0 Joyent,Inc.Cloud services 100.0 SmartThings,Inc.Sale of smart home ele

90、ctronics 100.0 TeleWorld Solutions,Inc.(TWS)Installation of network devices 100.0 Samsung Semiconductor,Inc.(SSI)Sale of semiconductor and display panels 100.0 Samsung Federal,Inc.(SFI)R&D 100.0 Samsung Austin Semiconductor LLC.(SAS)Manufacture of semiconductors 100.0 Samsung Oak Holdings,Inc.(SHI)M

91、anagement of overseas subsidiaries 100.0 SEMES America,Inc.Semiconductor equipment 100.0 Emerald Intermediate,Inc.Management of overseas subsidiaries 100.0 Emerald Merger Sub,Inc.Management of overseas subsidiaries 100.0 Samsung Electronics Canada,Inc.(SECA)Sale of electronic devices 100.0 AdGear Te

92、chnologies Inc.Digital advertising platforms 100.0(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -15-Area Subsidiaries Industr

93、y Percentage of ownership(%)(*)America Samsung Electronica da Amazonia Ltda.(SEDA)Manufacture and sale of electronic devices 100.0 Samsung Electronics Mexico S.A.de C.V.(SEM)Sale of electronic devices 100.0 Samsung Electronics Digital Appliance Mexico,S.A.de C.V.(SEDAM)Manufacture of home appliances

94、 100.0 Samsung Electronics Latinoamerica(Zona Libre),S.A.(SELA)Sale of electronic devices 100.0 Samsung Electronics Latinoamerica Miami,Inc.(SEMI)Sale of electronic devices 100.0 Samsung Electronica Colombia S.A.(SAMCOL)Sale of electronic devices 100.0 Samsung Electronics Argentina S.A.(SEASA)Market

95、ing and services 100.0 Samsung Electronics Chile Limitada(SECH)Sale of electronic devices 100.0 Samsung Electronics Peru S.A.C.(SEPR)Sale of electronic devices 100.0 Samsung Electronics Venezuela,C.A.(SEVEN)Marketing and services 100.0 Samsung Electronics Panama.S.A.(SEPA)Consulting 100.0 Harman Int

96、ernational Industries,Inc.Management of overseas subsidiaries 100.0 Harman Becker Automotive Systems,Inc.Manufacture and sale of audio products,R&D 100.0 Harman Connected Services,Inc.Connected service provider 100.0 Harman Connected Services Engineering Corp.Connected service provider 100.0 Harman

97、da Amazonia Industria Eletronica e Participacoes Ltda.Manufacture and sale of audio products 100.0 Harman de Mexico,S.de R.L.de C.V.Manufacture of audio products 100.0 Harman do Brasil Industria Eletronica e Participacoes Ltda.Sale of audio products,R&D 100.0 Harman Financial Group LLC Management co

98、mpany 100.0 Harman International Industries Canada Ltd.Sale of audio products 100.0 Harman International Mexico,S.de R.L.de C.V.Sale of audio products 100.0 Harman KG Holding,LLC Management of overseas subsidiaries 100.0 Harman Professional,Inc.Sale of audio products,R&D 100.0 Beijing Integrated Cir

99、cuit Industry International Fund,L.P Venture capital investments 61.4 China Materialia New Materials 2016 Limited Partnership Venture capital investments 99.0(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,L

100、td.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -16-Area Subsidiaries Industry Percentage of ownership(%)(*)Europe/CIS Samsung Electronics(UK)Ltd.(SEUK)Sale of electronic devices 100.0 Samsung Electronics Ltd.(SEL)Management of overseas subsidiaries 100.0 Samsung Semic

101、onductor Europe Limited(SSEL)Sale of semiconductor and display panels 100.0 Samsung Electronics GmbH(SEG)Sale of electronic devices 100.0 Samsung Electronics Holding GmbH(SEHG)Management of overseas subsidiaries 100.0 Samsung Semiconductor Europe GmbH(SSEG)Sale of semiconductor and display panels 10

102、0.0 Samsung Electronics France S.A.S(SEF)Sale of electronic devices 100.0 Samsung Electronics Italia S.P.A.(SEI)Sale of electronic devices 100.0 Samsung Electronics Iberia,S.A.(SESA)Sale of electronic devices 100.0 Samsung Electronics Portuguesa,Unipessoal,Lda.(SEP)Sale of electronic devices 100.0 S

103、amsung Electronics Hungarian Private Co.,Ltd.(SEH)Manufacture and sale of electronic devices 100.0 Samsung Electronics Europe Logistics B.V.(SELS)Logistics 100.0 Samsung Electronics Benelux B.V.(SEBN)Sale of electronic devices 100.0 Samsung Electronics Europe Holding Cooperatief U.A.(SEEH)Management

104、 of overseas subsidiaries 100.0 Samsung Electronics Nordic Aktiebolag(SENA)Sale of electronic devices 100.0 Samsung Electronics Slovakia s.r.o(SESK)Manufacture of TV and monitors 100.0 Samsung Display Slovakia,s.r.o.,v likvidacii(SDSK)Toll processing of display panels 100.0 Samsung Electronics Polsk

105、a,SP.Zo.o(SEPOL)Sale of electronic devices 100.0 Samsung Electronics Poland Manufacturing SP.Zo.o(SEPM)Manufacture of home appliances 100.0 Samsung Electronics Romania LLC(SEROM)Sale of electronic devices 100.0 Samsung Electronics Austria GmbH(SEAG)Sale of electronic devices 100.0 Samsung Electronic

106、s Switzerland GmbH(SESG)Sale of electronic devices 100.0 Samsung Electronics Czech and Slovak s.r.o.(SECZ)Sale of electronic devices 100.0 Samsung Electronics Baltics SIA(SEB)Sale of electronic devices 100.0 Samsung Electronics Greece S.M.S.A(SEGR)Sale of electronic devices 100.0 Samsung Electronics

107、 Air Conditioner Europe B.V.(SEACE)Sale of air conditioning products 100.0 Samsung Nanoradio Design Center(SNDC)R&D 100.0 Samsung Denmark Research Center ApS(SDRC)R&D 100.0 Samsung Cambridge Solution Centre Limited(SCSC)R&D 100.0 SAMSUNG Zhilabs,S.L.Development and sale of network solutions 100.0 FO

108、ODIENT LTD.R&D 100.0 Samsung Electronics Rus Company LLC(SERC)Sale of electronic devices 100.0 Samsung Electronics Rus Kaluga LLC(SERK)Manufacture of TV 100.0 Samsung Electronics Ukraine Company LLC(SEUC)Sale of electronic devices 100.0 Samsung R&D Institute Ukraine(SRUKR)R&D 100.0 Samsung Electroni

109、cs Central Eurasia LLP(SECE)Sale of electronic devices 100.0 Samsung Electronics Overseas B.V.(SEO)Sale of electronic devices 100.0 Samsung R&D Institute Rus LLC(SRR)R&D 100.0 Samsung Electronics Caucasus Co.,Ltd.(SECC)Marketing 100.0 Samsung Electronics Uzbekistan Ltd.(SEUZ)Sale of electronic devic

110、es 100.0(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -17-Area Subsidiaries Industry Percentage of ownership (%)(*)Europe/CIS

111、 AKG Acoustics GmbH Manufacture and sale of audio products 100.0 Apostera UA,LLC Connected Service Provider 100.0 Harman Audio Iberia Espana Sociedad Limitada Sale of audio products 100.0 Harman Automotive UK Limited Manufacture of audio products 100.0 Harman Becker Automotive Systems GmbH Manufactu

112、re and sale of audio products,R&D 100.0 Harman Becker Automotive Systems Italy S.R.L.Sale of audio products 100.0 Harman Becker Automotive Systems Manufacturing Kft Manufacture of audio products,R&D 100.0 Harman Belgium SA Sale of audio products 100.0 Harman Connected Services AB.Connected service p

113、rovider 100.0 Harman Finland Oy Connected service provider 100.0 Harman Connected Services GmbH Connected service provider 100.0 Harman Connected Services Poland Sp.zoo Connected service provider 100.0 Harman Connected Services UK Ltd.Connected service provider 100.0 Harman Consumer Nederland B.V.Sa

114、le of audio products 100.0 Harman Deutschland GmbH Sale of audio products 100.0 Harman Finance International GP S.a.r.l Management of overseas subsidiaries 100.0 Harman France SNC Sale of audio products 100.0 Harman Holding GmbH&Co.KG Management company 100.0 Harman Hungary Financing Ltd.Financing c

115、ompany 100.0 Harman Inc.&Co.KG Management of overseas subsidiaries 100.0 Harman International Estonia OU R&D 100.0 Harman International Industries Limited Sale of audio products,R&D 100.0 Harman International Romania SRL R&D 100.0 Harman Finance International,SCA Financing company 100.0 Harman Manag

116、ement GmbH Management of overseas subsidiaries 100.0 Harman Professional Kft Manufacture of audio products,R&D 100.0 Harman Professional Denmark ApS Sale of audio products,R&D 100.0 Red Bend Software S.A.S Software design 100.0 Studer Professional Audio GmbH Sale of audio products,R&D 100.0 Harman C

117、onnected Services OOO Connected service provider 100.0 Harman RUS CIS LLC Sale of audio products 100.0(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATE

118、D FINANCIAL STATEMENTS -18-Area Subsidiaries Industry Percentage of ownership (%)(*)Middle East&Africa Samsung Gulf Electronics Co.,Ltd.(SGE)Sale of electronic devices 100.0 Samsung Electronics Turkiye(SETK)Sale of electronic devices 100.0 Samsung Electronics Industry and Commerce Ltd.(SETK-P)Manufa

119、cture of electronic devices 100.0 Samsung Electronics Levant Co.,Ltd.(SELV)Sale of electronic devices 100.0 Samsung Electronics Maghreb Arab(SEMAG)Sale of electronic devices 100.0 Samsung Electronics Egypt S.A.E(SEEG)Manufacture and sale of electronic devices 100.0 Samsung Electronics Israel Ltd.(SE

120、IL)Marketing 100.0 Samsung Electronics Tunisia S.A.R.L(SETN)Marketing 100.0 Samsung Electronics Pakistan(Private)Ltd.(SEPAK)Marketing 100.0 Samsung Electronics Saudi Arabia Ltd.(SESAR)Sale of electronic devices 100.0 Samsung Semiconductor Israel R&D Center,Ltd.(SIRC)R&D 100.0 Corephotonics Ltd.R&D 1

121、00.0 Samsung Electronics South Africa(Pty)Ltd.(SSA)Sale of electronic devices 100.0 Samsung Electronics South Africa Production(Pty)Ltd.(SSAP)Manufacture of TV and monitors 100.0 Samsung Electronics West Africa Ltd.(SEWA)Marketing 100.0 Samsung Electronics East Africa Ltd.(SEEA)Marketing 100.0 Globa

122、l Symphony Technology Group Private Ltd.Management of overseas subsidiaries 100.0 Harman Connected Services Morocco Connected service provider 100.0 Harman Industries Holdings Mauritius Ltd.Management of overseas subsidiaries 100.0 Red Bend Ltd.Manufacture of audio products 100.0 Asia(Excluding Chin

123、a)Samsung Asia Pte.Ltd.(SAPL)Management of overseas subsidiaries 100.0 Samsung Electronics Singapore Pte.Ltd.(SESP)Sale of electronic devices 100.0 Samsung Malaysia Electronics(SME)Sdn.Bhd.(SME)Sale of electronic devices 100.0 Samsung Electronics Display(M)Sdn.Bhd.(SDMA)Manufacture of electronic dev

124、ices 100.0 Samsung Electronics(M)Sdn.Bhd.(SEMA)Manufacture of home appliances 100.0 Samsung Vina Electronics Co.,Ltd.(SAVINA)Sale of electronic devices 100.0 Samsung Electronics Vietnam Co.,Ltd.(SEV)Manufacture of electronic devices 100.0 Samsung Electronics Vietnam THAINGUYEN Co.,Ltd.(SEVT)Manufact

125、ure of communication equipment 100.0 Samsung Electronics HCMC CE Complex Co.,Ltd.(SEHC)Manufacture and sale of electronic devices 100.0 Samsung Display Vietnam Co.,Ltd.(SDV)Manufacture of display panels 100.0 DOWOOINSYS VINA COMPANY LIMITED Manufacture of display components 100.0 PT Samsung Electron

126、ics Indonesia(SEIN)Manufacture and sale of electronic devices 100.0 PT Samsung Telecommunications Indonesia(STIN)Sale of electronic devices and services 100.0 Thai Samsung Electronics Co.,Ltd.(TSE)Manufacture and sale of electronic devices 91.8 Laos Samsung Electronics Sole Co.,Ltd(LSE)Marketing 100

127、.0 Samsung Electronics Philippines Corporation(SEPCO)Sale of electronic devices 100.0 Samsung Electronics Australia Pty.Ltd.(SEAU)Sale of electronic devices 100.0 Samsung Electronics New Zealand Limited(SENZ)Sale of electronic devices 100.0 Samsung India Electronics Private Ltd.(SIEL)Manufacture and

128、 sale of electronic devices 100.0 Red Brick Lane Marketing Solutions Pvt.Ltd.Marketing 100.0 Samsung Display Noida Private Limited(SDN)Manufacture of display panels 100.0 Samsung R&D Institute India-Bangalore Private Limited(SRI-Bangalore)R&D 100.0 Samsung R&D Institute BanglaDesh Limited(SRBD)R&D 1

129、00.0 Samsung Nepal Services Pvt,Ltd(SNSL)Service 100.0 Samsung Japan Corporation(SJC)Sale of semiconductor and display panels 100.0(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,Ltd.and its subsidiaries NOT

130、ES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -19-Area Subsidiaries Industry Percentage of ownership (%)(*)Asia(Excluding China)Samsung R&D Institute Japan Co.Ltd.(SRJ)R&D 100.0 Samsung Electronics Japan Co.,Ltd.(SEJ)Sale of electronic devices 100.0 Harman Connected Services Corp.India Pvt.Ltd

131、.Connected service provider 100.0 Harman International(India)Private Limited Sale of audio products,R&D 100.0 Harman International Industries PTY Ltd.Management of overseas subsidiaries 100.0 Harman International Japan Co.,Ltd.Sale of audio products,R&D 100.0 Harman Singapore Pte.Ltd.Sale of audio p

132、roducts 100.0 China Samsung(CHINA)Investment Co.,Ltd.(SCIC)Sale of electronic devices 100.0 Samsung Electronics Hong Kong Co.,Ltd.(SEHK)Sale of electronic devices 100.0 Samsung Electronics Taiwan Co.,Ltd.(SET)Sale of electronic devices 100.0 Tianjin Samsung Electronics Co.,Ltd.(TSEC)Manufacture of T

133、V and monitors 91.2 Suzhou Samsung Electronics Co.,Ltd.(SSEC)Manufacture of home appliances 88.3 Samsung Suzhou Electronics Export Co.,Ltd.(SSEC-E)Manufacture of home appliances 100.0 Samsung Electronics Suzhou Computer Co.,Ltd.(SESC)R&D 100.0 Tianjin Samsung Telecom Technology Co.,Ltd.(TSTC)Manufac

134、ture of communication equipment 90.0 Beijing Samsung Telecom R&D Center(SRC-Beijing)R&D 100.0 Samsung Electronics China R&D Center(SRC-Nanjing)R&D 100.0 Samsung Mobile R&D Center China-Guangzhou(SRC-Guangzhou)R&D 100.0 Samsung R&D Institute China-Shenzhen(SRC-Shenzhen)R&D 100.0 Shanghai Samsung Semi

135、conductor Co.,Ltd.(SSS)Sale of semiconductor and display panels 100.0 Samsung(China)Semiconductor Co.,Ltd.(SCS)Manufacture of semiconductors 100.0 Samsung SemiConductor Xian Co.,Ltd.(SSCX)Sale of semiconductor and display panels 100.0 Samsung Electronics Suzhou Semiconductor Co.,Ltd.(SESS)Toll proce

136、ssing of semiconductors 100.0 Tianjin Samsung LED Co.,Ltd.(TSLED)Manufacture of LED 100.0 Samsung Semiconductor(China)R&D Co.,Ltd.(SSCR)R&D 100.0 Samsung Display Dongguan Co.,Ltd.(SDD)Manufacture of display panels 100.0 Samsung Display Tianjin Co.,Ltd.(SDT)Manufacture of display panels 95.0 SEMES(XI

137、AN)Co.,Ltd.Semiconductor equipment services 100.0 Samsung Semiconductor Investment L.P.Technology business,Venture capital investments 99.0 Harman(China)Technologies Co.,Ltd.Manufacture of audio products 100.0 Harman(Suzhou)Audio and Infotainment Systems Co.,Ltd.Sale of audio products 100.0 Harman A

138、utomotive Electronic Systems(Suzhou)Co.,Ltd.Manufacture of audio products,R&D 100.0 Harman Commercial(Shanghai)Co.,Ltd.Sale of audio products 100.0 Harman Connected Services Solutions(Chengdu)Co.,Ltd.Connected service provider 100.0 Harman Holding Limited Sale of audio products 100.0 Harman Internat

139、ional(China)Holdings Co.,Ltd.Sale of audio products,R&D 100.0 Harman Technology(Shenzhen)Co.,Ltd.Sale of audio products,R&D 100.0(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES

140、 TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -20-Area Subsidiaries Industry Percentage of ownership (%)(*)Domestic Samsung Display Co.,Ltd.Manufacture and sale of display panels 84.8 SU Materials Manufacture of display components 50.0 STECO Co.,Ltd.Manufacture of semiconductor components 70.0 S

141、EMES Co.,Ltd.Manufacture and sale of semiconductor/FPD 91.5 Samsung Electronics Service Co.,Ltd.Repair services for electronic devices 99.3 Samsung Electronics Service Customer Satisfaction Co.,Ltd.Call center for repair services for electronic devices 100.0 Samsung Electronics Sales Co.,Ltd.Sale of

142、 electronic devices 100.0 Samsung Electronics Logitech Co.,Ltd.General logistics agency 100.0 Samsung Medison Co.,Ltd.Manufacture and sale of medical equipment 68.5 Stella Forest of Hope Manufacture of food 100.0 Mirero System Co.,Ltd.Development and supply of semiconductor process defect and qualit

143、y control software 99.9 Dowooinsys Co.,Ltd.Manufacture of display components 69.0 Gf-System Co.,Ltd.Manufacture of display components 100.0 Harman International Korea Software development and supply 100.0 Samsung Venture Capital Union#21 Technology business,Venture capital investments 99.0 Samsung V

144、enture Capital Union#22 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#26 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#28 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#29 Technology busines

145、s,Venture capital investments 99.0 Samsung Venture Capital Union#32 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#33 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#37 Technology business,Venture capital investments 99.0 Samsung

146、 Venture Capital Union#40 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#42 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#43 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#45 Technology busin

147、ess,Venture capital investments 99.0 Samsung Venture Capital Union#48 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#52 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#55 Technology business,Venture capital investments 99.0 Samsu

148、ng Venture Capital Union#56 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#57 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#62 Technology business,Venture capital investments 99.0 Growth type private equity trust specialized in

149、 semiconductors Investment on semiconductor industry 66.7 System LSI Mutual benefit private equity trust Investment on semiconductor industry 62.5(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,Ltd.and its s

150、ubsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -21-1.3 Summary of Financial Data of Major Consolidated Subsidiaries Summary of financial data of major consolidated subsidiaries is as follows:(1)2023 As of June 30,2023 June 30,2023(In millions of Korean won)For the three-month per

151、iod ended For the six-month period ended Major subsidiaries(*1)Assets Liabilities Sales Profit(loss)Sales Profit(loss)Samsung Display Co.,Ltd.59,206,888 6,470,299 5,444,771 871,621 11,035,413 2,404,779 Samsung Electronics America,Inc.(SEA)38,938,571 12,063,696 9,157,280 79,508 19,977,552 294,772 Sam

152、sung Asia Pte.Ltd.(SAPL)23,579,581 1,186,112 -333,661 -6,966,849 Harman and its subsidiaries(*2)17,628,070 6,154,046 3,488,999 205,076 6,651,475 285,899 Samsung(China)Semiconductor Co.,Ltd.(SCS)15,957,741 1,346,950 2,440,992 203,913 5,011,167 530,735 Samsung Electronics Vietnam THAINGUYEN Co.,Ltd.(S

153、EVT)14,327,372 2,734,691 6,729,383 870,408 15,346,957 1,166,442 Samsung Semiconductor,Inc.(SSI)11,686,283 5,001,617 5,113,436 55,475 10,076,971 182,461 Samsung Austin Semiconductor LLC.(SAS)11,545,027 2,512,400 1,136,235 148,327 2,091,445 252,445 Samsung(CHINA)Investment Co.,Ltd.(SCIC)9,821,955 8,40

154、7,678 702,653 12,754 1,574,264 177,969 Samsung Electronics Europe Holding Cooperatief U.A.(SEEH)9,693,632 4,624,422 -23,610 -32,085 Samsung Electronics Vietnam Co.,Ltd.(SEV)9,526,085 1,890,857 4,337,615 447,372 10,033,911 910,213 Samsung India Electronics Private Ltd.(SIEL)7,396,505 3,478,642 3,499,

155、445 235,083 7,313,363 568,363 Samsung Display Vietnam Co.,Ltd.(SDV)7,237,305 1,889,058 5,025,494 120,439 10,213,581 570,535 Samsung Eletronica da Amazonia Ltda.(SEDA)5,290,815 1,439,082 1,738,745 32,413 3,654,447 164,645 Samsung Electronics HCMC CE Complex Co.,Ltd.(SEHC)4,029,275 821,791 1,598,461 1

156、53,715 3,095,852 352,241 Shanghai Samsung Semiconductor Co.,Ltd.(SSS)3,785,339 3,202,972 3,669,230 50,856 6,589,203 114,934 Samsung International,Inc.(SII)2,981,785 830,750 1,912,341 403,181 3,668,330 768,771 Thai Samsung Electronics Co.,Ltd.(TSE)2,918,991 534,692 1,183,524 96,887 2,402,275 185,939

157、Samsung Electronics(UK)Ltd.(SEUK)2,552,143 1,722,261 1,323,540 14 2,850,876 72,364 Samsung Electronics Europe Logistics B.V.(SELS)2,438,051 2,019,758 3,802,880 42,336 8,045,329 226,763 Samsung Electronics Mexico S.A.De C.V.(SEM)2,251,383 1,193,458 909,620 23,765 1,752,163 83,052 SEMES Co.,Ltd.2,147,

158、494 603,152 683,383 58,675 1,409,736 82,958 Samsung Display Dongguan Co.,Ltd.(SDD)2,117,019 191,384 348,339 33,691 757,767 62,505 Samsung Electronics GmbH(SEG)2,013,641 1,891,158 1,407,255 (5,306)3,049,199 54,982 Samsung Electronics Benelux B.V.(SEBN)1,782,683 635,257 630,333 26,455 1,462,038 132,67

159、2 (*1)Summary of financial information is based on separate financial statements of each subsidiary.(*2)Consolidated financial data of an intermediate company that includes Harman International Industries,Inc.and its subsidiaries.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM

160、CONSOLIDATED FINANCIAL STATEMENTS -22-(2)2022 As of December 31,2022 June 30,2022(In millions of Korean won)For the three-month period ended For the six-month period ended Major subsidiaries(*1)Assets Liabilities Sales Profit(loss)Sales Profit(loss)Samsung Display Co.,Ltd.57,302,567 7,282,718 6,845,

161、875 791,204 13,946,851 1,817,837 Samsung Electronics America,Inc.(SEA)37,883,156 12,258,315 12,333,476 316,721 23,673,944 271,086 Samsung Asia Pte.Ltd.(SAPL)26,894,611 2,678,285 -2,505,351 -2,516,913 Harman and its subsidiaries(*2)17,102,324 6,380,456 2,986,052 36,184 5,648,793 126,028 Samsung(China

162、)Semiconductor Co.,Ltd.(SCS)17,095,000 2,970,835 2,453,729 165,104 4,869,323 321,642 Samsung Electronics Vietnam THAINGUYEN Co.,Ltd.(SEVT)15,718,299 2,358,140 9,983,377 971,650 20,552,811 1,934,576 Samsung(CHINA)Investment Co.,Ltd.(SCIC)13,830,988 9,764,636 528,784 (43,273)1,361,932 63,608 Samsung S

163、emiconductor,Inc.(SSI)12,199,102 5,930,369 12,742,094 33,503 23,653,098 75,744 Samsung Electronics Vietnam Co.,Ltd.(SEV)10,931,037 1,408,387 5,919,010 499,274 11,739,681 928,374 Samsung Electronics Europe Holding Cooperatief U.A.(SEEH)10,841,515 6,272,800 -21,517 -28,482 Samsung Austin Semiconductor

164、 LLC.(SAS)9,301,017 828,494 836,674 (12,167)1,625,295 (14,589)Samsung Display Vietnam Co.,Ltd.(SDV)7,471,680 1,608,448 5,142,739 56,185 10,814,792 187,691 Samsung India Electronics Private Ltd.(SIEL)6,772,537 3,571,863 3,488,909 114,899 7,688,929 317,183 Shanghai Samsung Semiconductor Co.,Ltd.(SSS)5

165、,067,891 2,858,382 6,504,147 62,530 13,054,783 138,258 Samsung Eletronica da Amazonia Ltda.(SEDA)4,600,508 1,342,517 1,971,171 (45,838)3,890,800 68,690 Samsung Electronics HCMC CE Complex Co.,Ltd.(SEHC)3,732,057 980,448 1,602,862 125,102 3,554,895 327,308 Thai Samsung Electronics Co.,Ltd.(TSE)3,263,

166、473 486,820 1,297,116 22,286 2,711,163 5,686 Samsung Electronics(UK)Ltd.(SEUK)2,819,792 1,708,064 1,349,597 (24,169)2,881,511 (5,105)Samsung Electronics Benelux B.V.(SEBN)2,377,730 597,044 612,857 (13,563)1,420,327 (6,661)Samsung Electronics Hungarian Private Co.Ltd.(SEH)2,374,317 452,628 881,554 42

167、,573 2,205,901 123,503 Samsung Electronics Europe Logistics B.V.(SELS)2,194,975 2,021,491 3,663,321 60,139 8,262,182 300,226 Samsung Display Dongguan Co.,Ltd.(SDD)2,135,132 265,835 788,603 33,918 1,595,752 83,548 SEMES Co.,Ltd.2,065,558 602,323 740,885 54,932 1,466,317 128,901 Samsung Electronics Gm

168、bH(SEG)1,968,273 1,907,132 1,485,197 (75,712)3,186,298 (133,174)Samsung Electronics Mexico S.A.De C.V.(SEM)1,816,895 996,002 880,155 17,403 1,556,318 52,569 (*1)Summary of financial information is based on separate financial statements of each subsidiary.(*2)Consolidated financial data of an interme

169、diate company that includes Harman International Industries,Inc.and its subsidiaries.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -23-1.4 Changes in Consolidation Scope Changes in consolidation scope during the six-month period ended June 30

170、,2023 are as follows:Change Area Subsidiary Description Included Domestic Samsung Venture Capital Union#62 Establishment America Samsung Federal,Inc.(SFI)Establishment Emerald Intermediate,Inc.Establishment Emerald Merger Sub,Inc.Establishment Excluded America Dacor Holdings,Inc.Merger Dacor,Inc.Mer

171、ger Europe/CIS Red Bend Software Ltd.Liquidation 2.Significant Accounting Policies 2.1 Basis of Presentation The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language(Hangul)in accordance with International Financial Reporting Stand

172、ards as adopted by the Republic of Korea(“Korean IFRS”).The accompanying interim consolidated financial statements have been condensed,restructured and translated into English from the Korean language financial statements.The interim consolidated financial statements for the six-month period ended J

173、une 30,2023 have been prepared in accordance with Korean IFRS 1034,Interim Financial Reporting.These interim consolidated financial statements have been prepared in accordance with the Korean IFRS which is effective as of June 30,2023.(A)New and amended standards adopted by the Company The Company a

174、pplied the following amended standards for the first time for the annual reporting period commencing January 1,2023:Amendments to Korean IFRS 1001,Presentation of Financial Statements The amendments require companies to define and disclose their material accounting policy information instead of its

175、significant accounting policies.The amendments explain how an entity can identify material accounting policy information.The application of amendments does not have a significant impact on the Companys interim consolidated financial statements.Amendments to Korean IFRS 1008,Accounting Policies,Chang

176、es in Accounting Estimates and Errors The amendments clarify the definition of a change in accounting estimates and specify how to distinguish it from a change in accounting policies.The application of amendments does not have a significant impact on the Companys interim consolidated financial state

177、ments.Amendments to Korean IFRS 1012,Income Taxes The amendments add to the initial recognition exemption that the initial recognition exemption does not apply to transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition.The application of amend

178、ments does not have a significant impact on the Companys interim consolidated financial statements.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -24-(B)New and amended standards not yet adopted by the Company The amended accounting standard i

179、ssued that is not yet effective for the annual reporting period commencing January 1,2023 and has not been early adopted by the Company is as follows:Amendments to Korean IFRS 1001,Presentation of Financial Statements The amendments to Korean-IFRS 1001 clarify that the classification of liabilities

180、as current or non-current should be based on rights that are in existence at the end of the reporting period and that the classification is unaffected by managements intentions or expectations about whether an entity will exercise its right to defer settlement of a liability.The amendments also intr

181、oduce a definition of settlement to make clear that settlement includes the transfer to the counterparty of the entitys own equity instruments,however,it would be excluded if an option to settle the liability by the transfer of the entitys own equity instruments is recognized separately from the lia

182、bility as an equity component of a compound financial instrument.The amendments are applied retrospectively for annual periods beginning on or after January,1 2024,with early application permitted.2.2 Accounting Policies Material accounting policies and method of computation used in the preparation

183、of the interim consolidated financial statements are consistent with those of the annual financial statements for the year ended December 31,2022,except for the changes due to the application of amendments of standards described in Note 2.1 and as described below.Income tax expense Income tax expens

184、e for the interim period is recognized based on managements best estimate of the weighted average annual income tax rate expected for the full financial year.The estimated average annual effective income tax rate is applied to the pre-tax income of the interim period.2.3 Convenience Translation into

185、 United States Dollar Amounts The US dollar amounts provided in the consolidated financial statements represent supplementary information solely for the convenience of the reader.All Korean won amounts are expressed in US dollars at the rate of W 1,295.3 to$1,the average exchange rate for the six-mo

186、nth period ended June 30,2023.Such presentation is not in accordance with generally accepted accounting principles and should not be construed as a representation that the Korean won amounts shown could be readily converted,realized or settled in US dollars at this or at any other rate.2.4 Material

187、Accounting Estimates and Assumptions In preparing the interim consolidated financial statements,the management of the Company makes judgements,estimates and assumptions on matters which affect the application of policies and reported amounts of assets,liabilities,income and expenses.Estimates and as

188、sumptions are continually evaluated and are based on historical experience and other factors,including expectations of future events that are believed to be reasonable under the circumstances.The resulting accounting estimates,by definition,seldom equal the related actual results Material accounting

189、 estimates and assumptions made in the preparation of the interim consolidated financial statements are consistent with those applied in the preparation of the annual consolidated financial statements for the year ended December 31,2022,except for the estimates used to determine the income tax expen

190、se.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -25-3.Financial Instruments by Category (A)Categorizations of financial assets and liabilities as of June 30,2023 and December 31,2022 are as follows:(1)As of June 30,2023 (In millions of Korea

191、n won)Financial assets measured at amortized cost Financial assets measured at fair value through other comprehensive income Financial assets measured at fair value through profit or loss Other financial assets(*)Total Financial assets Cash and cash equivalents 79,919,775-79,919,775 Short-term finan

192、cial instruments 17,180,130-17,180,130 Short-term financial assets at amortized cost-Short-term financial assets at fair value through profit or loss-25,310-25,310 Trade receivables 36,104,142-36,104,142 Financial assets at fair value through other comprehensive income -10,308,125-10,308,125 Financi

193、al assets at fair value through profit or loss -1,573,457-1,573,457 Other 10,472,509-448,027 76,182 10,996,718 Total 143,676,556 10,308,125 2,046,794 76,182 156,107,657 (*)Other financial assets include derivatives designated as hedging instruments which are not subject to categorizations.(In millio

194、ns of Korean won)Financial liabilities measured at amortized cost Financial liabilities measured at fair value through profit or loss Other financial liabilities(*)Total Financial liabilities Trade payables 11,744,005-11,744,005 Short-term borrowings 473,326-3,084,034 3,557,360 Other payables 13,443

195、,741-13,443,741 Current portion of long-term liabilities 299,158-964,683 1,263,841 Debentures 554,625-554,625 Long-term borrowings 33,756-3,729,494 3,763,250 Long-term other payables 4,890,945-4,890,945 Other 10,421,841 297,833 24,105 10,743,779 Total 41,861,397 297,833 7,802,316 49,961,546 (*)Other

196、 financial liabilities include collateralized borrowings,lease liabilities and derivatives designated as hedging instruments,which are not subject to categorizations.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -26-(2)As of December 31,2022

197、(In millions of Korean won)Financial assets measured at amortized cost Financial assets measured at fair value through other comprehensive income Financial assets measured at fair value through profit or loss Other financial assets(*)Total Financial assets Cash and cash equivalents 49,680,710-49,680

198、,710 Short-term financial instruments 65,102,886-65,102,886 Short-term financial assets at amortized cost 414,610-414,610 Short-term financial assets at fair value through profit or loss-29,080-29,080 Trade receivables 35,721,563-35,721,563 Financial assets at fair value through other comprehensive

199、income -11,397,012-11,397,012 Financial assets at fair value through profit or loss -1,405,468-1,405,468 Other 9,945,209-334,263 61,404 10,340,876 Total 160,864,978 11,397,012 1,768,811 61,404 174,092,205 (*)Other financial assets include derivatives designated as hedging instruments which are not s

200、ubject to categorizations.(In millions of Korean won)Financial liabilities measured at amortized cost Financial liabilities measured at fair value through profit or loss Other financial liabilities(*)Total Financial liabilities Trade payables 10,644,686 -10,644,686 Short-term borrowings 1,577,958 -3

201、,569,357 5,147,315 Other payables 16,328,237 -16,328,237 Current portion of long-term liabilities 215,143 -874,019 1,089,162 Debentures 536,093 -536,093 Long-term borrowings 33,846 -3,526,826 3,560,672 Long-term other payables 2,289,236 -2,289,236 Other 12,047,761 334,415 27,353 12,409,529 Total 43,

202、672,960 334,415 7,997,555 52,004,930 (*)Other financial liabilities include collateralized borrowings,lease liabilities and derivatives designated as hedging instruments,which are not subject to categorizations.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANC

203、IAL STATEMENTS -27-4.Financial Assets at Fair Value (A)Details of financial assets at fair value as of June 30,2023 and December 31,2022 are as follows:(1)Financial assets at fair value through other comprehensive income (In millions of Korean won)June 30,2023 December 31,2022 Non-current Equity ins

204、truments 10,308,125 11,397,012 (2)Financial assets at fair value through profit or loss (In millions of Korean won)June 30,2023 December 31,2022 Current Debt instruments 25,310 29,080 Non-current Equity instruments 904,192 773,063 Debt instruments 669,265 632,405 Subtotal 1,573,457 1,405,468 Total 1

205、,598,767 1,434,548 (B)Details of listed equity securities of financial assets at fair value as of June 30,2023 and December 31,2022 are as follows:(In millions of Korean won,number of shares and percentage)June 30,2023 December 31,2022 Number of shares owned Percentage of ownership(*)(%)Acquisition

206、cost Carrying amount(Market value)Carrying amount(Market value)Samsung Heavy Industries.Co,Ltd.134,027,281 15.2 932,158 893,962 684,879 Hotel Shilla Co.,Ltd,2,004,717 5.1 13,957 147,146 166,592 iMarketKorea Inc.647,320 1.9 324 6,402 6,538 SFA Engineering Corporation 2,100,000 5.8 22,050 75,600 132,6

207、42 Wonik Holdings,Co.,Ltd.3,518,342 4.6 30,821 13,352 11,945 Wonik IPS Co.,Ltd.3,701,872 7.5 32,428 121,421 91,621 ASML Holding N.V 2,750,072 0.7 158,517 2,601,025 4,287,121 Wacom Co.,Ltd.8,398,400 5.3 62,013 44,789 46,750 Corning Incorporated 80,000,000 9.4 3,980,636 3,680,041 3,238,205 Other 594,3

208、91 999,767 855,452 Total 5,827,295 8,583,505 9,521,745 (*)Ownership represents the Companys ownership of the total ordinary shares issued by each entity.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -28-5.Inventories Inventories as of June 30

209、,2023 and December 31,2022 are as follows:June 30,2023 December 31,2022(In millions of Korean won)Gross amount Valuation allowance Carrying amount Gross amount Valuation allowance Carrying amount Finished goods 16,909,611 (1,823,192)15,086,419 17,526,178 (1,493,952)16,032,226 Work in process 27,960,

210、258 (3,784,518)24,175,740 21,612,965 (1,535,446)20,077,519 Raw materials and supplies 16,304,014 (1,324,533)14,979,481 16,268,974 (1,289,694)14,979,280 Materials in transit 1,263,158 -1,263,158 1,098,841 -1,098,841 Total 62,437,041 (6,932,243)55,504,798 56,506,958 (4,319,092)52,187,866 6.Investments

211、 in Associates and Joint Ventures (A)Changes in investments in associates and joint ventures for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)2023 2022 Balance as of January 1 10,893,869 8,932,251 Acquisition 65,182 1,002,798 Disposal(18,357)(6,913)Shar

212、e of profit 413,782 491,706 Other(*)(19,777)(36,904)Balance as of June 30 11,334,699 10,382,938 (*)Other consists of dividends,impairment,and reclassification.(B)Major investments in associates and joint ventures as of June 30,2023 are as follows:(1)Investments in associates Investee Nature of relat

213、ionship Percentage of ownership(%)(*1)Principal business location Fiscal period-end Samsung Electro-Mechanics Co.,Ltd.Manufacture and supply electronic components including passive components,circuit boards,and modules 23.7 Korea December Samsung SDS Co.,Ltd.Provide IT services including computer pr

214、ogramming,system integration and management and logistical services 22.6 Korea December Samsung Biologics Co.,Ltd.Investment in new business 31.2 Korea December Samsung SDI Co.,Ltd.(*2)Manufacture and supply electronics including secondary cell batteries 19.6 Korea December Cheil Worldwide,Inc.Adver

215、tising agency 25.2 Korea December (*1)Ownership represents the Companys ownership of the total ordinary shares issued by each entity.(*2)The Companys ownership of ordinary shares outstanding is 20.6%.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEME

216、NTS -29-(2)Investments in joint ventures Investee Nature of relationship with joint venture Percentage of ownership(%)(*)Principal business location Fiscal period-end Samsung Corning Advanced Glass LLC Manufacture and supply industrial glass devices 50.0 Korea December (*)Ownership represents the Co

217、mpanys ownership of the total ordinary shares issued by each entity.(C)Details of investments in associates and joint ventures as of June 30,2023 and December 31,2022 are as follows:(1)Investments in associates (In millions of Korean won)June 30,2023 Investee Acquisition cost Net asset value of equi

218、ty shares(*)Carrying amount Samsung Electro-Mechanics Co.,Ltd.359,237 1,789,744 1,789,544 Samsung SDS Co.,Ltd.147,963 1,905,359 1,918,426 Samsung Biologics Co.,Ltd.1,424,358 2,906,481 2,911,314 Samsung SDI Co.,Ltd.1,242,605 3,540,877 2,816,234 Cheil Worldwide,Inc.506,162 349,678 650,157 Other 693,83

219、9 795,017 1,042,491 Total 4,374,164 11,287,156 11,128,166 (*)The Companys portion of net asset value of associates is based on the Companys percentage of ownership.(In millions of Korean won)December 31,2022 Investee Acquisition cost Net asset value of equity shares(*)Carrying amount Samsung Electro

220、-Mechanics Co.,Ltd.359,237 1,765,507 1,764,249 Samsung SDS Co.,Ltd.147,963 1,857,481 1,870,338 Samsung Biologics Co.,Ltd.1,424,358 2,804,547 2,808,673 Samsung SDI Co.,Ltd.1,242,605 3,318,875 2,691,223 Cheil Worldwide,Inc.506,162 347,510 649,161 Other 645,255 718,801 907,333 Total 4,325,580 10,812,72

221、1 10,690,977 (*)The Companys portion of net asset value of associates is based on the Companys percentage of ownership.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -30-(2)Investments in joint ventures (In millions of Korean won)June 30,2023

222、Investee Acquisition cost Net asset value of equity shares(*)Carrying amount Samsung Corning Advanced Glass LLC 215,000 136,279 136,297 Other 259,994 71,044 70,236 Total 474,994 207,323 206,533 (*)The Companys portion of net asset value of joint ventures is based on the Companys percentage of owners

223、hip.(In millions of Korean won)December 31,2022 Investee Acquisition cost Net asset value of equity shares(*)Carrying amount Samsung Corning Advanced Glass LLC 215,000 137,727 137,745 Other 259,994 67,632 65,147 Total 474,994 205,359 202,892 (*)The Companys portion of net asset value of joint ventur

224、es is based on the Companys percentage of ownership.(D)Details of the changes in the book value of investments in associates and joint ventures using the equity method are as follows:(1)For the six-month period ended June 30,2023 (In millions of Korean won)Balance as of January 1 Share of profit(los

225、s)Share of other comprehensive income(loss)Other(*)Balance as of June 30 Samsung Electro-Mechanics Co.,Ltd.1,764,249 56,192 6,258 (37,155)1,789,544 Samsung SDS Co.,Ltd.1,870,338 84,939 19,059 (55,910)1,918,426 Samsung Biologics Co.,Ltd.2,808,673 102,673 (32)-2,911,314 Samsung SDI Co.,Ltd.2,691,223 1

226、01,539 37,340 (13,868)2,816,234 Cheil Worldwide,Inc.649,161 29,823 4,567 (33,394)650,157 Samsung Corning Advanced Glass LLC 137,745 (1,448)-136,297 Other 972,480 40,064 40,933 59,250 1,112,727 Total 10,893,869 413,782 108,125 (81,077)11,334,699 (*)Other consists of acquisitions,disposals,dividends,i

227、mpairment,and reclassification.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -31-(2)For the six-month period ended June 30,2022 (In millions of Korean won)Balance as of January 1 Share of profit Share of other comprehensive income(loss)Other(

228、*)Balance as of June 30 Samsung Electro-Mechanics Co.,Ltd.1,556,386 143,913 24,503 (37,156)1,687,646 Samsung SDS Co.,Ltd.1,652,155 100,037 26,499 (41,933)1,736,758 Samsung Biologics Co.,Ltd.1,577,664 93,678 (1,888)981,164 2,650,618 Samsung SDI Co.,Ltd.2,529,650 91,076 20,729 (13,462)2,627,993 Cheil

229、Worldwide,Inc.621,292 30,141 7,828 (28,747)630,514 Samsung Corning Advanced Glass LLC 135,580 3,277 -138,857 Other 859,524 29,584 (54,700)76,144 910,552 Total 8,932,251 491,706 22,971 936,010 10,382,938 (*)Other consists of acquisitions,disposals,dividends,impairment,and reclassification.(E)Summary

230、of the financial information of major associates and joint ventures (1)Summary of financial information of major associates and dividends received from associates as of June 30,2023 and December 31,2022,and for the six-month periods ended June 30,2023 and 2022 are as follows:2023(In millions of Kore

231、an won)Samsung Electro-Mechanics Co.,Ltd.Samsung SDS Co.,Ltd.Samsung Biologics Co.,Ltd.Samsung SDI Co.,Ltd.Cheil Worldwide,Inc.1.Condensed financial information Condensed statements of financial position:Current assets 4,989,963 7,873,234 5,222,084 10,437,387 1,979,357 Non-current assets 6,196,663 4

232、,078,928 10,479,717 22,465,431 564,032 Current liabilities 2,643,685 2,210,196 3,590,808 9,489,196 1,110,927 Non-current liabilities 736,124 996,079 2,799,969 4,961,003 201,884 Non-controlling interests 164,835 310,735 -864,153 10,974 Condensed statements of comprehensive income:Revenue 4,242,517 6,

233、691,688 1,587,107 11,195,427 1,913,000 Profit from continuing operations,net of tax(*)237,527 375,102 326,641 899,767 104,081 Other comprehensive income(loss)(*)36,158 84,377 (91)271,927 19,952 Total comprehensive income(*)273,685 459,479 326,550 1,171,694 124,033 2.Dividends from associates Dividen

234、ds 37,155 55,911 -13,867 33,394 (*)Profit(loss)attributable to owners of the investee Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -32-2022(In millions of Korean won)Samsung Electro-Mechanics Co.,Ltd.Samsung SDS Co.,Ltd.Samsung Biologics Co.

235、,Ltd.Samsung SDI Co.,Ltd.Cheil Worldwide,Inc.1.Condensed financial information Condensed statements of financial position:Current assets 4,888,319 8,005,764 6,457,657 9,651,702 2,193,979 Non-current assets 6,108,852 3,946,660 10,124,394 20,605,823 557,466 Current liabilities 2,525,123 2,493,323 4,18

236、1,542 8,006,939 1,335,643 Non-current liabilities 778,563 992,132 3,416,034 5,033,084 194,373 Non-controlling interests 154,991 243,777-731,779 9,388 Condensed statements of comprehensive income:Revenue 5,089,065 8,786,676 1,162,727 8,790,200 1,922,981 Profit from continuing operations,net of tax(*)

237、604,625 464,770 298,983 747,915 105,224 Other comprehensive income(*)106,251 110,958 1,476 148,171 28,644 Total comprehensive income(*)710,876 575,728 300,459 896,086 133,868 2.Dividends from associates Dividends 37,155 41,933-13,463 28,748 (*)Profit attributable to owners of the investee.Samsung El

238、ectronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -33-(2)Summary of financial information of major joint ventures and dividends received from joint ventures as of June 30,2023 and December 31,2022,and for the six-month periods ended June 30,2023 and 2022 a

239、re as follows:Samsung Corning Advanced Glass,LLC(In millions of Korean won)2023 2022 Condensed financial information Condensed statements of financial position:Current assets 108,663 170,103 Non-current assets 186,867 125,507 Current liabilities 21,507 19,794 Non-current liabilities 1,466 363 Conden

240、sed statements of comprehensive income:Revenue 50,320 75,043 Profit(Loss)from continuing operations,net of tax(2,896)6,553 Other comprehensive income-Total comprehensive income(2,896)6,553 Dividends from joint ventures Dividends-(3)Profit(loss)attributable to owners of the parent company from associ

241、ates and joint ventures which are not individually material for the six-month periods ended June 30,2023 and 2022 are as follows:2023 2022(In millions of Korean won)Associates Joint ventures Associates Joint ventures Profit from continuing operations 38,861 1,203 28,633 951 Other comprehensive incom

242、e(loss)40,789 144 (51,498)(3,202)Total comprehensive income(loss)79,650 1,347 (22,865)(2,251)(F)Details of marketable investments in associates as of June 30,2023 and December 31,2022 are as follows:(In millions of Korean won and number of shares)June 30,2023 December 31,2022 Number of shares held M

243、arket value Market value Samsung Electro-Mechanics Co.,Ltd.17,693,084 2,556,651 2,308,947 Samsung SDS Co.,Ltd.17,472,110 2,147,322 2,149,070 Samsung Biologics Co.,Ltd.22,217,309 16,529,678 18,240,411 Samsung SDI Co.,Ltd.13,462,673 9,006,528 7,956,440 Cheil Worldwide,Inc.29,038,075 526,460 669,328 Sa

244、msung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -34-(G)Other matters On July 12,2018,the Korea Securities and Futures Commission determined an initial measure following an investigation relating to Samsung Biologics Co.,Ltd.,an associate of the C

245、ompany,and its accounting for its investment in Samsung Bioepis Co.,Ltd,a joint venture between Biogen Therapeutics Inc.and Samsung Biologics Co.,Ltd.This measure included a recommendation to dismiss the director in charge,prosecution charges,and external auditor designation by the regulator,on the

246、basis that the Joint Venture Agreement was not disclosed in the notes to the financial statements.On November 14,2018,the Korea Securities and Futures Commission determined a second measure which included a penalty of W 8,000 million,a recommendation to dismiss the CEO,a requirement to restate its f

247、inancial statements,and further prosecution charges.To prove justification of its accounting treatment,Samsung Biologics Co.,Ltd.filed a suit for cancellation of the aforementioned measures to the Seoul Administrative Court,which is currently in progress.On September 24,2020,the Seoul Administrative

248、 Court announced a decision to cancel the first measure charged by the Korea Securities and Futures Commission and suspended its execution until the final rulings of appeal.On October 16,2020,the Korea Securities and Futures Commission appealed the decision and the litigation is in progress at Seoul

249、 High Court.Samsung Biologics Co.,Ltd.also filed for suspending the execution of the initial and second measures.On January 22,2019 and February 19,2019,the Seoul Administrative Court pronounced decisions to suspend the second and initial measures,respectively,until the final rulings.The Korea Secur

250、ities and Futures Commission immediately appealed against the decisions but the appeals were dismissed by the Seoul High Court on May 13,2019 and May 24,2019,in relation to the second and first measures,respectively.On May 23,2019 and June 10,2019,the Korea Securities and Futures Commission re-appea

251、led against the dismissals relating to the second and first measures,respectively.On September 6,2019 and October 11,2019,the Supreme Court of Korea dismissed the Korea Securities and Futures Commissions re-appeal relating to the second and first measures,respectively,and confirmed the decision to s

252、uspend the execution of these measures.Although the future outcome of the administrative litigation cannot be estimated,should Samsung Biologics Co.,Ltd.be required to restate its financial statements to amend its historical accounting treatment relating to its investment in Samsung Bioepis Co.,Ltd.

253、,the Companys share of profit or loss relating to its equity method investment,the amount of investment in associates,and retained earnings,for the years ended December 31,2015 and onwards,and the profit on disposal of investment for the year ended December 31,2016,may be impacted.Given the timing o

254、f completion and the final result of the administrative litigation between Samsung Biologics Co.,Ltd.and the Korea Securities and Futures Commission is uncertain and cannot currently be estimated,it is not possible for the Company to recognize the effects of these proceedings in the current period c

255、onsolidated financial statements.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -35-7.Property,Plant and Equipment(A)Changes in property,plant and equipment for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of K

256、orean won)2023 2022 Balance as of January 1 168,045,388 149,928,539 Acquisition and capital expenditures 26,299,312 20,754,405 Depreciation(17,568,639)(18,077,845)Disposals/scrap/impairment(209,921)(164,773)Other(*)1,303,802 1,814,250 Balance as of June 30 177,869,942 154,254,576 (*)Other includes e

257、ffects of changes in foreign currency exchange rates and effects of the offset of government grants.(B)Details of depreciation of property,plant and equipment for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)2023 2022 Cost of sales 15,643,321 16,292,066

258、 Selling and administrative expenses and other 1,925,318 1,785,779 Total 17,568,639 18,077,845 (C)Right-of-use assets as of June 30,2023 amount to W 5,479,379 million(December 31,2022:W 4,917,609 million).During the six-month periods ended June 30,2023 and 2022,newly recognized right-of-use assets a

259、mount to W 1,040,012 million and W 502,506 million,respectively,with relevant depreciation of W 589,402 million and W 469,474 million,respectively.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -36-8.Intangible Assets(A)Changes in intangible a

260、ssets for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)2023 2022 Balance as of January 1 20,217,754 20,236,244 External acquisitions 4,324,670 859,818 Amortization(1,576,451)(1,543,029)Disposals/scrap/impairment(25,652)(27,801)Other(*)489,913 571,694 Ba

261、lance as of June 30 23,430,234 20,096,926 (*)Other includes the cumulative effect of changes in foreign currency exchange rates and business combinations.(B)Details of amortization of intangible assets for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)20

262、23 2022 Cost of sales 1,109,423 1,070,464 Selling and administrative expenses and other 467,028 472,565 Total 1,576,451 1,543,029 9.Borrowings Details of the carrying amounts of borrowings as of June 30,2023 and December 31,2022 are as follows:(In millions of Korean won)Financial institutions Intere

263、st rates(%)as of June 30,2023 June 30,2023 December 31,2022 Short-term borrowings Collateralized borrowings(*1)Woori Bank and others 0.117.7 3,084,034 3,569,357 Non-collateralized borrowings Citibank and others 0.162.2 473,326 1,577,958 Total 3,557,360 5,147,315 Current portion of long-term borrowin

264、gs Bank borrowings BNP and others 36.761.5 292,688 208,915 Lease liabilities(*2)CSSD and others 4.1 964,683 874,019 Total 1,257,371 1,082,934 Long-term borrowings Bank borrowings Industrial Bank of Korea and others 2.56.7 33,756 33,846 Lease liabilities(*2)CSSD and others 4.1 3,729,494 3,526,826 Tot

265、al 3,763,250 3,560,672 (*1)Collateralized borrowings are secured by trade receivables.(*2)Interest expenses arising from the lease liabilities for the six-month periods ended June 30,2023 and 2022 amounted to W 94,075 million and W 61,932 million,respectively,which were determined using the weighted

266、 average incremental borrowing rate.The right-of-use assets are pledged as collateral to the lessor in the event of default.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -37-10.Debentures Details of the carrying amounts of debentures as of Ju

267、ne 30,2023 and December 31,2022 are as follows:(In millions of Korean won)Issue date Due date Interest rates(%)as of June 30,2023 June 30,2023 December 31,2022 US dollar denominated straight bonds(*1)1997.10.2 2027.10.1 7.7 32,820 31,683 (US$25 million)(US$25 million)US dollar denominated debentures

268、(*2)2015.5.11 2025.5.15 4.2 525,120 506,920 (US$400 million)(US$400 million)Less:Discounts (467)(543)Add:Premium 3,622 4,261 Less:Current portion (6,470)(6,228)Total 554,625 536,093 (*1)US dollar denominated straight bonds are repaid annually for twenty years after a ten-year grace period from the d

269、ate of issuance.Interest is paid semi-annually.(*2)Harman International Industries,Inc.issued US dollar denominated debentures.These debentures are repaid on the maturity and interest is paid semi-annually.11.Net Defined Benefit Liabilities(Assets)(A)Details of net defined benefit liabilities(assets

270、)recognized in the statements of financial position as of June 30,2023 and December 31,2022 are as follows:(In millions of Korean won)June 30,2023 December 31,2022 Present value of funded defined benefit obligations 14,408,258 13,639,460 Present value of unfunded defined benefit obligations 277,253

271、370,848 Subtotal 14,685,511 14,010,308 Fair value of plan assets(19,399,317)(19,593,910)Total(4,713,806)(5,583,602)(B)The components of defined benefit costs recognized in profit or loss for the six-month periods ended June 30,2023 and 2022 relating to defined benefit plans are as follows:(In millio

272、ns of Korean won)2023 2022 Current service cost 634,643 684,929 Net interest income(176,734)(49,382)Past service cost(581)56 Other 15,865 3,417 Total 473,193 639,020 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -38-(C)The expenses related to

273、 defined benefit plans recognized in the statements of profit or loss for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)2023 2022 Cost of sales 189,349 273,388 Selling and administrative expenses and other 283,844 365,632 Total 473,193 639,020 12.Provisi

274、ons Changes in the provisions for the six-month period ended June 30,2023 are as follows:(In millions of Korean won)Warranty(A)Royalty expenses(B)Long-term incentives(C)Other(D,E)Total Balance as of January 1 2,309,726 1,546,606 783,263 3,133,830 7,773,425 Charged to profit or loss 1,237,011 344,251

275、 140,071 1,464,674 3,186,007 Payment(1,131,980)(188,844)(44,421)(597,610)(1,962,855)Other(*)66,854 39,497 5,490 24,603 136,444 Balance as of June 30 2,481,611 1,741,510 884,403 4,025,497 9,133,021 (*)Other includes effects of changes in foreign currency exchange rates.(A)The Company accrues warranty

276、 reserves for estimated costs of quality assurance,exchanges,repairs,recalls,and future services based on historical experience and terms of warranty programs.(B)The Company recognizes provisions for the estimated royalty expenses that are under negotiation with counterparties.The timing and amount

277、of payment depend on the settlement of the negotiations.(C)The Company has a long-term incentive plan for its executives based on a three-year management performance criteria and recognizes a provision for the estimated incentive cost.(D)The Company records provisions for future expenses expected to

278、 be incurred for products that have been discontinued from manufacturing and sales.(E)The Company makes provisions for the emission in excess of the emission rights held by the Company for the applicable years.Details of emission rights and liabilities as of June 30,2023 are as follows:(1)The amount

279、 of emission rights allocated free of charge in the current commitment period and the estimated volume of emission as of June 30,2023 are as follows:(In ten thousand metric tons)June 30,2023 Emission rights allocated free of charge 1,710 Estimated volume of emission 1,903 Samsung Electronics Co.,Ltd

280、.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -39-(2)Changes in the emission rights for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)2023 2022 Balance as of January 1 19,567 46,074 Increase 1,272 1,871 Utilization(225)-Bal

281、ance as of June 30 20,614 47,945 (3)Changes in emissions liabilities for the six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)2023 2022 Balance as of January 1 32,838 45,049 Charged to profit or loss-23,365 Utilization(14)-Balance as of June 30 32,824 68,414 13

282、.Commitments and Contingencies (A)Litigation As of June 30,2023,the Company is involved in various claims,disputes,and investigations conducted by regulatory bodies that arose during the normal course of business with numerous entities.Although the outflow of resources and timing of these matters ar

283、e uncertain,the Company believes the outcome will not have a material impact on the financial position of the Company.(B)Other commitments As of June 30,2023,the Company has commitments for the acquisition of tangible and intangible assets that have not yet been incurred of W 17,119,756 million.14.C

284、ontract Liabilities The Company has recognized contract liabilities related to contracts with customers as follows:(In millions of Korean won)June 30,2023 December 31,2022 Contract liabilities(*)12,787,097 13,255,682 (*)Contract liabilities include advances received,accrued expenses,other current li

285、abilities and others.15.Share Capital As of June 30,2023,the Companys total number of authorized shares is 25,000,000,000 shares(W 100 per share).The Company has issued 5,969,782,550 shares of ordinary shares and 822,886,700 shares of preference shares as of June 30,2023,excluding retired shares.As

286、of June 30,2023,the number of shares outstanding is the same as the number of shares issued above,and no changes were made to the number of shares outstanding during the six-month periods ended June 30,2023 and 2022.Due to the retirement of shares,the total par value of the shares issued is W 679,26

287、7 million(ordinary shares of W 596,978 million and preference shares of W 82,289 million),which does not agree with paid-in capital of W 897,514 million.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -40-16.Retained Earnings (A)Retained earnin

288、gs as of June 30,2023 and December 31,2022 consist of the following:(In millions of Korean won)June 30,2023 December 31,2022 Discretionary reserve,etc.208,019,306 192,294,496 Unappropriated retained earnings 130,291,349 145,651,911 Total 338,310,655 337,946,407 (B)Details of interim dividends are as

289、 follows:Interim dividends(Record date:March 31 and June 30,2023 and 2022)(In millions of Korean won and number of shares)2023 2022 1st Quarter Number of shares eligible for dividends Ordinary shares 5,969,782,550 5,969,782,550 Preference shares 822,886,700 822,886,700 Dividend rate(based on par val

290、ue)Ordinary/Preference 361%361%Dividend amount Ordinary shares 2,155,092 2,155,092 Preference shares 297,062 297,062 Total 2,452,154 2,452,154 2nd Quarter Number of shares eligible for dividends Ordinary shares 5,969,782,550 5,969,782,550 Preference shares 822,886,700 822,886,700 Dividend rate(based

291、 on par value)Ordinary/Preference 361%361%Dividend amount Ordinary shares 2,155,092 2,155,092 Preference shares 297,062 297,062 Total 2,452,154 2,452,154 17.Other Components of Equity Other components of equity as of June 30,2023 and December 31,2022 are as follows:(In millions of Korean won)June 30

292、,2023 December 31,2022 Gain on valuation of financial assets at fair value through other comprehensive income 1,852,003 2,749,109 Share of other comprehensive income of associates and joint ventures 219,458 114,987 Foreign currency translation,net of tax 5,661,463 1,039,197 Remeasurement of net defi

293、ned benefit liabilities(assets)(2,402,025)(2,051,610)Other 99,452 86,645 Total 5,430,351 1,938,328 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -41-18.Expenses by Nature Expenses by nature for the three and six-month periods ended June 30,20

294、23 and 2022 consist of the following:(In millions of Korean won)2023 2022 3 Months 6 Months 3 Months 6 Months Changes in finished goods,work in process,and other (935,654)(3,152,414)(4,439,969)(6,998,972)Raw materials used,merchandise purchased,and other 21,190,339 48,387,259 28,865,165 56,931,407 W

295、ages and salaries 8,090,473 15,991,639 7,528,038 15,260,987 Post-employment benefit 273,221 551,510 341,528 692,424 Depreciation 8,767,744 17,568,639 9,068,814 18,077,845 Amortization 790,853 1,576,451 772,552 1,543,029 Welfare 1,740,173 3,281,449 1,738,929 3,140,865 Utilities 1,771,378 3,632,488 1,

296、383,458 2,782,026 Outsourcing 1,729,937 3,410,856 1,652,475 3,135,008 Advertising 1,073,439 2,218,782 1,397,480 2,865,181 Sales promotion 1,568,835 3,241,787 1,536,956 3,360,354 Other 13,276,248 25,733,733 13,261,136 25,976,497 Total(*)59,336,986 122,442,179 63,106,562 126,766,651 (*)Equal to the su

297、m of cost of sales and selling and administrative expenses in the consolidated statements of profit or loss.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -42-19.Selling and Administrative Expenses Selling and administrative expenses for the t

298、hree and six-month periods ended June 30,2023 and 2022 are as follows:(In millions of Korean won)2023 2022 3 Months 6 Months 3 Months 6 Months Selling and administrative expenses Wages and salaries 2,102,067 4,174,476 1,884,465 3,879,818 Post-employment benefit 70,645 140,157 72,706 150,000 Commissi

299、ons 2,070,654 4,174,578 1,806,907 3,537,298 Depreciation 419,353 822,999 382,702 761,443 Amortization 172,647 341,586 163,203 331,697 Advertising 1,073,439 2,218,782 1,397,480 2,865,181 Sales promotion 1,568,835 3,241,787 1,536,956 3,360,354 Transportation 420,198 834,603 984,085 1,841,718 Service c

300、harges 1,088,395 2,110,131 837,018 1,730,562 Other 1,505,008 2,951,508 1,516,418 2,789,669 Subtotal 10,491,241 21,010,607 10,581,940 21,247,740 Research and development expenses Research and development 7,198,555 13,777,289 6,254,874 12,177,106 Total 17,689,796 34,787,896 16,836,814 33,424,846 Samsu

301、ng Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -43-20.Other Non-Operating Income and Expenses Details of other non-operating income and expenses for the three and six-month periods ended June 30,2023 and 2022 are as follows:2023 2022(In millions of

302、 Korean won)3 Months 6 Months 3 Months 6 Months Other non-operating income Dividend income 48,894 96,788 62,400 330,909 Rental income 36,963 74,905 34,914 69,498 Gain on disposal of property,plant and equipment 20,598 55,047 63,780 114,200 Other 94,721 478,731 302,877 649,557 Total 201,176 705,471 4

303、63,971 1,164,164 2023 2022(In millions of Korean won)3 Months 6 Months 3 Months 6 Months Other non-operating expenses Loss on disposal of property,plant and equipment 10,611 20,003 19,911 24,107 Donations 29,710 102,793 85,866 175,426 Other 128,736 250,243 494,616 853,970 Total 169,057 373,039 600,3

304、93 1,053,503 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -44-21.Financial Income and Expenses Details of financial income and expenses for the three and six-month periods ended June 30,2023 and 2022 are as follows:2023 2022(In millions of K

305、orean won)3 Months 6 Months 3 Months 6 Months Financial income Interest income:1,152,273 2,212,719 487,194 856,226 Interest income from financial assets measured at amortized cost 1,152,212 2,212,592 487,130 856,097 Interest income from financial assets measured at fair value through profit or loss

306、61 127 64 129 Foreign exchange differences 2,758,603 5,878,615 4,490,804 7,099,407 Gains from derivatives 146,052 593,643 393,887 918,441 Total 4,056,928 8,684,977 5,371,885 8,874,074 2023 2022(In millions of Korean won)3 Months 6 Months 3 Months 6 Months Financial expenses Interest expense:286,893

307、578,570 123,064 272,295 Interest expense from financial liabilities measured at amortized cost 176,050 327,906 31,904 106,567 Other financial liabilities 110,843 250,664 91,160 165,728 Foreign exchange differences 2,556,359 5,932,237 4,675,575 7,136,257 Losses from derivatives 401,288 689,734 332,34

308、0 755,745 Total 3,244,540 7,200,541 5,130,979 8,164,297 The Company recognizes foreign exchange gains and losses arising from foreign currency transactions and translation as financial income and expenses.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL ST

309、ATEMENTS -45-22.Income Tax Expense Income tax expense is recognized based on managements best estimate of the weighted average annual income tax rate expected for the full financial year.The average annual tax rate expected as of June 30,2023 to be effective for the year ended December 31,2023 is 6.

310、8%.23.Earnings per Share (A)Basic earnings per share Basic earnings per share for the three and six-month periods ended June 30,2023 and 2022 are calculated as follows:(1)Ordinary shares 2023 2022(In millions of Korean won,thousands of number of shares)3 Months 6 Months 3 Months 6 Months Profit for

311、the period attributable to owners of the parent company 1,547,018 2,948,270 10,954,515 22,083,609 Profit for the period available for ordinary shares 1,359,607 2,591,107 9,627,448 19,408,327 Weighted-average number of ordinary shares outstanding 5,969,783 5,969,783 5,969,783 5,969,783 Basic earnings

312、 per ordinary share(in Korean won)228 434 1,613 3,251 (2)Preference shares 2023 2022(In millions of Korean won,thousands of number of shares)3 Months 6 Months 3 Months 6 Months Profit for the period attributable to owners of the parent company 1,547,018 2,948,270 10,954,515 22,083,609 Profit for the

313、 period available for preference shares 187,411 357,163 1,327,067 2,675,282 Weighted-average number of preference shares outstanding 822,887 822,887 822,887 822,887 Basic earnings per preference share(in Korean won)228 434 1,613 3,251 (B)Diluted earnings per share The Company does not have dilutive

314、potential ordinary shares and as a result,basic earnings per share and diluted earnings per share are the same for the six-month periods ended June 30,2023 and 2022.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -46-24.Statements of Cash Flows

315、 The Company used the indirect method to present cash flows from operating activities.Adjustments and changes in assets and liabilities arising from operating activities for the six-month periods ended June 30,2023 and 2022 are as follows:-Adjustments (In millions of Korean won)2023 2022 Adjustments

316、:Income tax expense 241,205 7,107,165 Financial income(3,619,551)(3,033,105)Financial expense 2,601,229 2,516,133 Post-employment benefits 551,510 692,424 Depreciation 17,568,639 18,077,845 Amortization 1,576,451 1,543,029 Bad debt expense 76,054 24,421 Dividend income(96,788)(330,909)Share of profi

317、t of associates and joint ventures(413,782)(491,706)Gain on disposal of property,plant and equipment(55,047)(114,200)Loss on disposal of property,plant and equipment 20,003 24,107 Loss on valuation of inventories 3,569,456 1,934,530 Other(61,354)108,064 Total 21,958,025 28,057,798 -Changes in assets

318、 and liabilities arising from operating activities (In millions of Korean won)2023 2022 Changes in assets and liabilities:Decrease in trade receivables 727,124 383,614 Decrease(increase)in other receivables 990,666 (656,444)Increase in prepaid expenses(449,776)(323,801)Increase in inventories(5,846,

319、100)(10,473,730)Increase(decrease)in trade payables 635,101 (3,479,374)Increase(decrease)in other payables 589,905 (2,076,950)Increase(decrease)in advances received(181,346)13,502 Decrease in withholdings(562,980)(563,671)Decrease in accrued expenses(4,485,803)(1,705,600)Increase in provisions 1,223

320、,152 326,635 Payment of post-employment benefits(323,060)(295,378)Other(590,248)(576,003)Total(8,273,365)(19,427,200)For the six-month periods ended June 30,2023 and 2022,cash outflows from principal portion of lease liabilities(financial activities)amount to W 538,783 million and W 485,458 million,

321、respectively,and cash outflows due to interest expenses(operating activities)in relation to the lease liabilities amount to W 94,075 million and W 61,932 million,respectively.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -47-25.Financial Risk

322、 Management The Companys financial risk management focuses on minimizing market risk,credit risk,and liquidity risk arising from operating activities.To mitigate these risks,the Company implements and operates a financial risk policy and program that closely monitors and manages such risks.In additi

323、on,the Company uses derivatives to hedge certain risk exposure.The finance team mainly carries out the Companys financial risk management.After implementing the global financial risk management policies,the finance team periodically measures,evaluates,and hedges financial risks.The Company also mana

324、ges foreign exchange risk by monitoring foreign exchange rate fluctuations through local financial centers in the major regions(United States,United Kingdom,Singapore,China,Brazil,and Russia),which act as an agent for the subsidiaries in each region to manage foreign exchange transactions.In additio

325、n,local finance centers in the major regions manage liquidity risk through a globally integrated financial structure.The Companys financial assets that are under financial risk management are comprised of cash and cash equivalents,short-term financial instruments,financial assets at amortized cost,t

326、rade receivables and others.The Companys financial liabilities under financial risk management are comprised of trade payables,borrowings,and others.(A)Market risk (1)Foreign exchange risk The Company is exposed to foreign exchange risk arising from its global operations performed in currencies othe

327、r than its functional currency.The major currencies that the Company is exposed to foreign exchange risk are the US dollar,Euro,and Indian Rupee.The Company focuses on minimizing the impact of foreign exchange fluctuation by maintaining matching levels of assets and liabilities denominated in each f

328、oreign currency.To minimize exchange position,the Companys foreign exchange management policy requires normal business transactions,including import and export,as well as financing transactions such as depositing and borrowing,to be in local currency or match as closely as possible cash inflows and

329、outflows incurred in the respective foreign currencies.Moreover,the Company periodically evaluates and monitors the foreign exchange risk to efficiently mitigate such risk,and the speculative foreign exchange transactions are strictly prohibited.(2)Interest rate risk Risk of changes in interest rate

330、s for floating interest rate financial instruments is defined as the risk that the fair value of components of the statements of financial position,and future cash flows of interest income(expenses)of a financial instrument,will fluctuate because of changes in market interest rates.The Companys posi

331、tion with regard to interest rate risk exposure is mainly driven by its floating interest rate debt obligations and interest-bearing deposits.The Company has implemented policies and practices to minimize uncertainty arising from changes in interest rates and financial expenses.(3)Price risk The Com

332、panys investment portfolio consists of direct and indirect investments in equity instruments classified as financial assets at fair value through other comprehensive income and financial assets at fair value through profit or loss,which is in line with the Companys strategy.As of June 30,2023 and 20

333、22,price fluctuation of marketable equity securities(listed stocks)by 1%would result in changes in other comprehensive income(before income tax)of W 81,526 million and W 90,393 million,respectively,and changes in profit before tax of W 4,309 million and W 3,413 million,respectively.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS -48-(B)Credit