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1、 SAMSUNG ELECTRONICS CO.,LTD.AND ITS SUBSIDIARIES Interim Consolidated Financial Statements March 31,2024 and 2023 (With Independent Auditors Review Report Thereon)Contents Page Independent Auditors Review Report 1 Interim Consolidated Statements of Financial Position 3 Interim Consolidated Statemen

2、ts 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,Gangna

3、m 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 statem

4、ents 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 March 31,2024,the interim consolidated statements of profit or loss,comprehensive income,changes in equity and cash flows for th

5、e three-month periods ended March 31,2024 and 2023,and notes,comprising material accounting policy information and other explanatory information.Managements Responsibility for the Interim Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these i

6、nterim 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 necessary to enable the preparation of interim consolidated financial statements that are free f

7、rom 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 reviews.We conducted our reviews in accordance with the Review Standards for Quarterly and Semiannual Financial St

8、atements 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 financial and accounting matters,and applying analytical and other review procedures.A review i

9、s 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 matters that might be identified in an audit.Accordingly,we do not express an audit opinion.Conc

10、lusion Based on our reviews,nothing has come to our attention that causes us to believe that the interim consolidated financial statements referred to above do not present fairly,in all material respects,in accordance with Korean International Financial Reporting Standard No.1034,Interim Financial R

11、eporting.Other matters We have audited the consolidated statement of financial position of the Group as of December 31,2023,and the related consolidated statements of profit or loss,comprehensive income,changes in equity and cash flows for the year then ended,which are not accompanying this review r

12、eport,in accordance with Korean Standards on Auditing,and our report thereon,dated February 19,2024,expressed an unmodified opinion.The accompanying consolidated statement of financial position of the Group as of December 31,2023,presented for comparative purposes,is not different from that audited

13、by us 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 accepted and applied in other countries.The accompanying interim consolidated financial statements as of March 31,202

14、4 and December 31,2023 and for the three-month periods ended March 31,2024 and 2023 have been translated into United States dollars solely for the convenience of the reader.We have reviewed the translation and nothing came to our attention that causes us to believe that the interim consolidated fina

15、ncial 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.Seoul,Korea May 14,2024 This report is effective as of May 14,2024,the review report date.Certain subsequent events or circumstances,whic

16、h 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 statements and notes thereto.Accordingly,the readers of the review report should understand that the above review report has not been updated

17、 to reflect the impact of such subsequent events or circumstances,if any.Samsung Electronics Co.,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.-3

18、-(In millions of Korean won and in thousands of US dollars(Note 2.3)March 31,December 31,March 31,December 31,Notes 2024 2023 2024 2023 KRW KRW USD USD Assets Current assets Cash and cash equivalents 3,25 61,906,097 69,080,893 46,607,861 52,009,621 Short-term financial instruments 3,25 35,458,597 22

19、,690,924 26,696,068 17,083,542 Short-term financial assets at amortized cost 3,25-608,281-457,963 Short-term financial assets at fair value through profit or loss 3,4,25 28,132 27,112 21,180 20,412 Trade receivables 3,25 41,145,391 36,647,393 30,977,541 27,591,088 Non-trade receivables 3,25 7,421,33

20、0 6,633,248 5,587,371 4,994,040 Prepaid expenses 3,345,205 3,366,130 2,518,538 2,534,292 Inventories 5 53,347,700 51,625,874 40,164,415 38,868,087 Other current assets 3,25 5,891,828 5,038,838 4,435,839 3,793,640 Assets held-for-sale 28-217,864-164,025 208,544,280 195,936,557 157,008,813 147,516,710

21、 Non-current assets Financial assets at fair value through other comprehensive income 3,4,25 8,180,091 7,481,297 6,158,627 5,632,519 Financial assets at fair value through profit or loss 3,4,25 1,414,332 1,431,394 1,064,822 1,077,668 Investments in associates and joint ventures 6 11,907,773 11,767,4

22、44 8,965,124 8,859,473 Property,plant and equipment 7 191,155,560 187,256,262 143,917,194 140,981,490 Intangible assets 8 23,246,603 22,741,862 17,501,902 17,121,893 Net defined benefit assets 11 4,557,943 4,905,219 3,431,584 3,693,041 Deferred income tax assets 11,057,769 10,211,797 8,325,173 7,688

23、,257 Other non-current assets 3,25 10,835,461 14,174,148 8,157,802 10,671,432 262,355,532 259,969,423 197,522,228 195,725,773 Total assets 470,899,812 455,905,980 354,531,041 343,242,483 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued

24、)The above interim consolidated statements of financial position should be read in conjunction with the accompanying notes.-4-(In millions of Korean won and in thousands of US dollars(Note 2.3)March 31,December 31,March 31,December 31,Notes 2024 2023 2024 2023 KRW KRW USD USD Liabilities and Equity

25、Current liabilities Trade payables 3,25 12,419,094 11,319,824 9,350,087 8,522,469 Short-term borrowings 3,9,25 9,634,548 7,114,601 7,253,658 5,356,441 Other payables 3,25 16,707,439 15,324,119 12,578,696 11,537,222 Advances received 14 1,689,893 1,492,602 1,272,287 1,123,750 Withholdings 3,25 939,90

26、8 892,441 707,638 671,901 Accrued expenses 3,14,25 25,178,608 26,013,273 18,956,470 19,584,872 Current income tax liabilities 4,172,785 3,358,715 3,141,606 2,528,709 Current portion of long-term liabilities 3,9,10,25 1,447,491 1,308,875 1,089,787 985,426 Provisions 12 7,457,013 6,524,876 5,614,236 4

27、,912,448 Other current liabilities 3,14,25 2,123,576 2,308,472 1,598,798 1,738,002 Liabilities held-for-sale 28-61,654-46,418 81,770,355 75,719,452 61,563,263 57,007,658 Non-current liabilities Debentures 3,10,25 560,590 537,618 422,057 404,762 Long-term borrowings 3,9,25 3,861,524 3,724,850 2,907,2

28、64 2,804,365 Long-term other payables 3,25 5,234,343 5,488,283 3,940,832 4,132,018 Net defined benefit liabilities 11 480,564 456,557 361,807 343,733 Deferred income tax liabilities 578,137 620,549 435,268 467,199 Long-term provisions 12 3,179,028 2,878,450 2,393,427 2,167,127 Other non-current liab

29、ilities 3,14,25 3,319,147 2,802,356 2,498,919 2,109,838 17,213,333 16,508,663 12,959,574 12,429,042 Total liabilities 98,983,688 92,228,115 74,522,837 69,436,700 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (Continued)The above interim consol

30、idated statements of financial position should be read in conjunction with the accompanying notes.-5-(In millions of Korean won and in thousands of US dollars(Note 2.3)March 31,December 31,March 31,December 31,Notes 2024 2023 2024 2023 KRW KRW USD USD Equity attributable to owners of the parent comp

31、any Preference shares 15 119,467 119,467 89,944 89,944 Ordinary shares 15 778,047 778,047 585,776 585,776 Share premium 4,403,893 4,403,893 3,315,603 3,315,603 Retained earnings 16 350,847,854 346,652,238 264,146,324 260,987,529 Other components of equity 17 6,165,808 1,280,130 4,642,114 963,784 362

32、,315,069 353,233,775 272,779,761 265,942,636 Non-controlling interests 9,601,055 10,444,090 7,228,443 7,863,147 Total equity 371,916,124 363,677,865 280,008,204 273,805,783 Total liabilities and equity 470,899,812 455,905,980 354,531,041 343,242,483 Samsung Electronics Co.,Ltd.and its subsidiaries I

33、NTERIM 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 and in thousands of US dollars(Note 2.3)For the three-month periods ended March 31,Notes 2024 2023 2024

34、 2023 KRW KRW USD USD Revenue 26 71,915,601 63,745,371 54,143,816 47,992,613 Cost of sales 18 45,886,332 46,007,093 34,546,901 34,637,819 Gross profit 26,029,269 17,738,278 19,596,915 13,354,794 Selling and administrative expenses 18,19 19,423,260 17,098,100 14,623,383 12,872,817 Operating profit 26

35、 6,606,009 640,178 4,973,532 481,977 Other non-operating income 20 445,281 504,295 335,243 379,674 Other non-operating expense 20 381,393 203,982 287,143 153,574 Share of net profit of associates and joint ventures 6 214,833 213,841 161,743 160,997 Financial income 21 3,484,504 4,628,049 2,623,413 3

36、,484,365 Financial expense 21 2,662,511 3,956,001 2,004,551 2,978,394 Profit before income tax 7,706,723 1,826,380 5,802,237 1,375,045 Income tax expense 22 952,015 251,780 716,753 189,560 Profit for the period 6,754,708 1,574,600 5,085,484 1,185,485 Profit attributable to Owners of the parent compa

37、ny 6,621,030 1,401,252 4,984,841 1,054,975 Non-controlling interests 133,678 173,348 100,643 130,510 Earnings per share(in Korean won and in US dollars)23 -Basic 975 206 0.73 0.16-Diluted 975 206 0.73 0.16 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF COMPREHENS

38、IVE INCOME The above interim consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.-7-(In millions of Korean won and in thousands of US dollars(Note 2.3)For the three-month periods ended March 31,Notes 2024 2023 2024 2023 KRW KRW USD USD Profit for

39、 the period 6,754,708 1,574,600 5,085,484 1,185,485 Other comprehensive income(loss)Items that will not be reclassified subsequently to profit or loss:Gain on valuation of financial assets at fair value through other comprehensive income,net of tax 17 511,479 996,481 385,083 750,231 Share of other c

40、omprehensive income of associates and joint ventures,net of tax 17(12,818)29,888(9,650)22,502 Remeasurement of net defined benefit liabilities(assets),net of tax 17(82,243)(247,624)(61,919)(186,431)Items that may be reclassified subsequently to profit or loss:Share of other comprehensive income of a

41、ssociates and joint ventures,net of tax 17 52,627 135,760 39,621 102,211 Foreign currency translation differences for foreign operations,net of tax 17 4,514,980 5,056,887 3,399,238 3,807,229 Gain on valuation of cash flow hedge derivatives 17 10,927 8,108 8,227 6,104 Other comprehensive income for t

42、he period,net of tax 4,994,952 5,979,500 3,760,600 4,501,846 Total comprehensive income for the period 11,749,660 7,554,100 8,846,084 5,687,331 Comprehensive income attributable to:Owners of the parent company 11,534,271 7,286,763 8,683,922 5,486,058 Non-controlling interests 215,389 267,337 162,162

43、 201,273 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY The above interim consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.-8-(In millions of Korean won)For the three-month period ended Ma

44、rch 31,2024 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 1,2024 119,467 778,047 4,403,893 346,652,238 1,280,130 353,233,775 10,444,090 363,6

45、77,865 Profit for the period -6,621,030-6,621,030 133,678 6,754,708 Gain on valuation of financial assets at fair value through other comprehensive income,net of tax 17-27,563 435,213 462,776 48,703 511,479 Share of other comprehensive income(loss)of associates and joint ventures,net of tax 17-48,59

46、4 48,594(8,785)39,809 Foreign currency translation differences for foreign operations,net of tax 17-4,473,803 4,473,803 41,177 4,514,980 Remeasurement of net defined benefit liabilities(assets),net of tax 17-(82,859)(82,859)616(82,243)Gain on valuation of cash flow hedge derivatives 17-10,927 10,927

47、-10,927 Total comprehensive income for the period -6,648,593 4,885,678 11,534,271 215,389 11,749,660 Dividends declared -(2,452,977)-(2,452,977)(1,026,368)(3,479,345)Capital transactions under common control -(15)(15)Changes in consolidated entities -(32,041)(32,041)Total transactions with owners -(

48、2,452,977)-(2,452,977)(1,058,424)(3,511,401)Balance as of March 31,2024 119,467 778,047 4,403,893 350,847,854 6,165,808 362,315,069 9,601,055 371,916,124 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)The above interim consolidated st

49、atements of changes in equity should be read in conjunction with the accompanying notes.-9-(In thousands of US dollars(Note 2.3)For the three-month period ended March 31,2024 Notes Preference shares Ordinary shares Share premium Retained earnings Other components of equity Equity attributable to own

50、ers of the parent company Non-controlling interests Total Balance as of January 1,2024 89,944 585,776 3,315,603 260,987,529 963,784 265,942,636 7,863,147 273,805,783 Profit for the period -4,984,841-4,984,841 100,643 5,085,484 Gain on valuation of financial assets at fair value through other compreh

51、ensive income,net of tax 17-20,751 327,664 348,415 36,668 385,083 Share of other comprehensive income(loss)of associates and joint ventures,net of tax 17-36,585 36,585(6,614)29,971 Foreign currency translation differences for foreign operations,net of tax 17-3,368,237 3,368,237 31,001 3,399,238 Reme

52、asurement of net defined benefit liabilities(assets),net of tax 17-(62,383)(62,383)464(61,919)Gain on valuation of cash flow hedge derivatives 17-8,227 8,227-8,227 Total comprehensive income for the period -5,005,592 3,678,330 8,683,922 162,162 8,846,084 Dividends declared -(1,846,797)-(1,846,797)(7

53、72,732)(2,619,529)Capital transactions under common control -(11)(11)Changes in consolidated entities -(24,123)(24,123)Total transactions with owners -(1,846,797)-(1,846,797)(796,866)(2,643,663)Balance as of March 31,2024 89,944 585,776 3,315,603 264,146,324 4,642,114 272,779,761 7,228,443 280,008,2

54、04 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)The above interim consolidated statements of changes in equity should be read in conjunction with the accompanying notes.-10-(In millions of Korean won)For the three-month period ended

55、 March 31,2023 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 Balance 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

56、,749,604 Profit for the period -1,401,252-1,401,252 173,348 1,574,600 Gain(Loss)on valuation of financial assets at fair value through other comprehensive income,net of tax -(12,830)986,324 973,494 22,987 996,481 Share of other comprehensive income of associates and joint ventures,net of tax -159,97

57、6 159,976 5,672 165,648 Foreign currency translation differences for foreign operations,net of tax -4,991,533 4,991,533 65,354 5,056,887 Remeasurement of net defined benefit liabilities(assets),net of tax -(247,600)(247,600)(24)(247,624)Gain on valuation of cash flow hedge derivatives -8,108 8,108-8

58、,108 Total comprehensive income for the period -1,388,422 5,898,341 7,286,763 267,337 7,554,100 Dividends declared -(2,452,977)-(2,452,977)(50,097)(2,503,074)Capital transactions under common control -(948)(948)Others -(266)(266)Total transactions with owners -(2,452,977)-(2,452,977)(51,311)(2,504,2

59、88)Balance as of March 31,2023 119,467 778,047 4,403,893 336,881,852 7,836,669 350,019,928 9,779,488 359,799,416 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)The above interim consolidated statements of changes in equity should be r

60、ead in conjunction with the accompanying notes.-11-(In thousands of US dollars(Note 2.3)For the three-month period ended March 31,2023 Notes Preference shares Ordinary shares Share premium Retained earnings Other components of equity Equity attributable to owners of the parent company Non-controllin

61、g interests Total Balance as of January 1,2023 89,944 585,776 3,315,603 254,433,083 1,459,328 259,883,734 7,200,139 267,083,873 Profit for the period -1,054,975-1,054,975 130,510 1,185,485 Gain(Loss)on valuation of financial assets at fair value through other comprehensive income,net of tax -(9,660)

62、742,584 732,924 17,307 750,231 Share of other comprehensive income of associates and joint ventures,net of tax -120,443 120,443 4,270 124,713 Foreign currency translation differences for foreign operations,net of tax -3,758,025 3,758,025 49,204 3,807,229 Remeasurement of net defined benefit liabilit

63、ies(assets),net of tax -(186,413)(186,413)(18)(186,431)Gain on valuation of cash flow hedge derivatives -6,104 6,104-6,104 Total comprehensive income for the period -1,045,315 4,440,743 5,486,058 201,273 5,687,331 Dividends declared -(1,846,797)-(1,846,797)(37,717)(1,884,514)Capital transactions und

64、er common control -(714)(714)Others -(200)(200)Total transactions with owners -(1,846,797)-(1,846,797)(38,631)(1,885,428)Balance as of March 31,2023 89,944 585,776 3,315,603 253,631,601 5,900,071 263,522,995 7,362,781 270,885,776 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED

65、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 and in thousands of US dollars(Note 2.3)For the three-month periods ended March 31,Notes 2024 2023 2024 2023 KRW KRW USD USD Opera

66、ting activities Profit for the period 6,754,708 1,574,600 5,085,484 1,185,485 Adjustments 24 8,747,019 11,708,097 6,585,455 8,814,792 Changes in assets and liabilities arising from operating activities 24(3,395,289)(6,440,539)(2,556,244)(4,848,953)Cash generated from operations 12,106,438 6,842,158

67、9,114,695 5,151,324 Interest received 1,098,569 1,085,460 827,091 817,221 Interest paid (164,248)(219,559)(123,659)(165,302)Dividends received 35,935 38,957 27,055 29,330 Income tax paid (1,210,388)(1,455,242)(911,278)(1,095,622)Net cash from operating activities 11,866,306 6,291,774 8,933,904 4,736

68、,951 Investing activities Net decrease(increase)in short-term financial instruments (12,174,719)27,560,017(9,166,102)20,749,385 Net decrease in short-term financial assets at amortized cost 620,858 416,095 467,432 313,270 Net increase in short-term financial assets at fair value through profit or lo

69、ss (1,020)(3,831)(768)(2,884)Disposal of long-term financial instruments 4,100,008 2,960,801 3,086,814 2,229,128 Acquisition of long-term financial instruments (129,053)(534)(97,161)(402)Disposal of financial assets at fair value through other comprehensive income 53,306 5,607 40,133 4,221 Acquisiti

70、on of financial assets at fair value through other comprehensive income (24,070)(2,362)(18,122)(1,778)Disposal of financial assets at fair value through profit or loss 92,282 17,096 69,477 12,871 Acquisition of financial assets at fair value through profit or loss (5,924)(11,284)(4,460)(8,495)Dispos

71、al of investment in associates and joint ventures 11,731 4,661 8,832 3,509 Acquisition of investment in associates and joint ventures (6,342)(62,182)(4,775)(46,816)Disposal of property,plant and equipment 14,964 44,774 11,266 33,709 Acquisition of property,plant and equipment (13,421,626)(13,243,589

72、)(10,104,873)(9,970,833)Disposal of intangible assets 340 6,142 256 4,624 Acquisition of intangible assets (1,143,551)(1,070,220)(860,957)(805,747)Cash inflow from disposal of held-for-sale assets 101,563-76,465-Cash outflow from other investing activities (99,498)(149,721)(74,911)(112,722)Net cash

73、provided by(used in)investing activities (22,010,751)16,471,470(16,571,454)12,401,040 Samsung Electronics Co.,Ltd.and its subsidiaries INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)The above interim consolidated statements of cash flows should be read in conjunction with the accompanying

74、notes.-13-(In millions of Korean won and in thousands of US dollars(Note 2.3)For the three-month periods ended March 31,Notes 2024 2023 2024 2023 KRW KRW USD USD Financing activities Net increase(decrease)in short-term borrowings 2,451,071(777,531)1,845,362(585,388)Increase in long-term borrowings 1

75、18,450 58,036 89,179 43,694 Repayment of debentures and long-term borrowings (295,008)(259,113)(222,106)(195,081)Dividends paid (1,012,836)(243)(762,544)(183)Transactions with non-controlling interests (15)(948)(11)(713)Net cash provided by(used in)financing activities 1,261,662(979,799)949,880(737,

76、671)Effect of foreign exchange rate changes 1,707,987 1,485,222 1,285,910 1,118,193 Net increase(decrease)in cash and cash equivalents (7,174,796)23,268,667(5,401,760)17,518,513 Cash and cash equivalents,beginning of the period 69,080,893 49,680,710 52,009,621 37,403,612 Cash and cash equivalents,en

77、d of the period 61,906,097 72,949,377 46,607,861 54,922,125 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS The above interim consolidated statements of cash flows should be read in conjunction with the accompanying notes.-14-As of March 31,202

78、4 and December 31,2023,and for the three-month periods ended March 31,2024 and 2023 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 sub

79、sidiaries(collectively referred to as the“Company”)operate four business divisions:DX,DS,SDC and Harman.DX(Device eXperience)division comprises businesses for digital televisions,refrigerators,smartphones and communication systems.DS(Device Solutions)division comprises businesses for memory,foundry,

80、and system Large Scale Integration(LSI).SDC includes display panels products.Harman division 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 c

81、onsolidated financial statements have been prepared in accordance with Korean International Financial Reporting Standards(“Korean IFRS”)1110,Consolidated Financial Statements.SEC,as the controlling company,consolidates its 227 subsidiaries,including Samsung Display Co.,Ltd.and Samsung Electronics Am

82、erica Inc.The Company also applies the equity method of accounting for its 37 associates and joint ventures,including Samsung Electro-Mechanics Co.,Ltd.1.2 Consolidated Subsidiaries The consolidated subsidiaries as of March 31,2024 are as follows:Region Subsidiaries Industry Percentage of ownership(

83、%)(*)America Samsung Electronics America,Inc.(SEA)Sale of electronic devices 100.0 Samsung International,Inc.(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

84、 appliances 100.0 Samsung Research America,Inc.(SRA)R&D 100.0 Samsung Next LLC(SNX)Management of overseas 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

85、 of air conditioning products 100.0 Joyent,Inc.Cloud services 100.0 SmartThings,Inc.Sale of smart home electronics 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

86、 Samsung Austin Semiconductor LLC.(SAS)Manufacture of semiconductors 100.0 Samsung Oak Holdings,Inc.(SHI)Management of overseas subsidiaries 100.0 SEMES America,Inc.Maintenance of semiconductor equipment 100.0 Samsung Display America Holdings,Inc.(SDAH)Management of overseas subsidiaries 100.0 eMagi

87、n Corporation Development and manufacture of display panels 100.0 Samsung Electronics Canada,Inc.(SECA)Sale of electronic devices 100.0 AdGear Technologies Inc.Digital advertising platforms 100.0(*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries

88、 ownerships.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-15-Region Subsidiaries Industry Percentage of ownership(%)(*)America Samsung Eletronica da Amazonia Ltda.(SEDA)Manufacture and sale of electronic devices 100.0 Samsung Elec

89、tronics Mexico S.A.De C.V.(SEM)Sale of electronic devices 100.0 Samsung Electronics Digital Appliance Mexico,SA de CV(SEDAM)Manufacture of home appliances 100.0 Samsung Electronics Latinoamerica(Zona Libre),S.A.(SELA)Sale of electronic devices 100.0 Samsung Electronics Latinoamerica Miami,Inc.(SEMI)

90、Sale of electronic devices 100.0 Samsung Electronica Colombia S.A.(SAMCOL)Sale of electronic devices 100.0 Samsung Electronics Argentina S.A.(SEASA)Marketing and services 100.0 Samsung Electronics Chile Limitada(SECH)Sale of electronic devices 100.0 Samsung Electronics Peru S.A.C.(SEPR)Sale of elect

91、ronic devices 100.0 Samsung Electronics Venezuela,C.A.(SEVEN)Marketing and services 100.0 Samsung Electronics Panama.S.A.(SEPA)Consulting 100.0 Harman International Industries,Inc.Management of overseas subsidiaries 100.0 Harman Becker Automotive Systems,Inc.Manufacture,sale and R&D of audio product

92、s 100.0 Harman Connected Services,Inc.Connected service provider 100.0 Harman Connected Services Engineering Corp.Connected service provider 100.0 Harman 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

93、 audio products 100.0 Harman do Brasil Industria Eletronica e Participacoes Ltda.Sales and R&D of audio products 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

94、overseas subsidiaries 100.0 Harman Professional,Inc.Sales and R&D of audio products 100.0 Roon Labs,LLC.Sale of audio products 100.0 Beijing Integrated Circuit Industry International Fund LP Venture capital investments 61.4 China Materialia New Materials 2016 Limited Partnership Venture capital inve

95、stments 99.0(*)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 (Continued)-16-Region Subsidiaries Industry Percentage of ownership

96、(%)(*)Europe/CIS Samsung Electronics(UK)Ltd.(SEUK)Sale of electronic devices 100.0 Samsung Electronics Ltd.(SEL)Management of overseas subsidiaries 100.0 Samsung Semiconductor Europe Limited(SSEL)Sale of semiconductor and display panels 100.0 Samsung Electronics GmbH(SEG)Sale of electronic devices 1

97、00.0 Samsung Electronics Holding GmbH(SEHG)Management of overseas subsidiaries 100.0 Samsung Semiconductor Europe GmbH(SSEG)Sale of semiconductor and display panels 100.0 Samsung Electronics France S.A.S(SEF)Sale of electronic devices 100.0 Samsung Electronics Italia S.P.A.(SEI)Sale of electronic de

98、vices 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 Samsung Electronics Hungarian Private Co.,Ltd.(SEH)Manufacture and sale of electronic devices 100.0 Samsung Electronics Europe Logisti

99、cs 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 of overseas subsidiaries 100.0 Samsung Electronics Nordic Aktiebolag(SENA)Sale of electronic devices 100.0 Samsung Electronics Slova

100、kia 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 Polska,SP.Zo.o(SEPOL)Sale of electronic devices 100.0 Samsung Electronics Poland Manufacturing SP.Zo.o(SEPM)Manufacture of home appliances

101、 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 Electronics Switzerland GmbH(SESG)Sale of electronic devices 100.0 Samsung Electronics Czech and Slovak s.r.o.(SECZ)Sale of electronic devices

102、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 Air Conditioner Europe B.V.(SEACE)Sale of air conditioning products 100.0 Samsung Nanoradio Design Center(SNDC)R&D 100.0 Samsung Den

103、mark 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 FOODIENT LTD.R&D 100.0 Samsung Electronics Rus Company LLC(SERC)Sale of electronic devices 100.0 Samsung Electronics Rus Kaluga LLC(SER

104、K)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 Electronics Central Eurasia LLP(SECE)Sale of electronic devices 100.0 Samsung Electronics Overseas B.V.(SEO)Sale of electronic devices 100.0 S

105、amsung R&D Institute Rus LLC(SRR)R&D 100.0 Samsung Electronics Caucasus Co.,Ltd(SECC)Marketing 100.0 Samsung Electronics Uzbekistan Ltd.(SEUZ)Marketing 100.0 (*)Ownership represents the Companys ownership of the voting rights in each entity,including subsidiaries ownerships.Samsung Electronics Co.,L

106、td.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-17-Region Subsidiaries Industry Percentage of ownership(%)(*)Europe/CIS AKG Acoustics GmbH Manufacture and sale of audio products 100.0 Apostera UA,LLC Connected Service Provider 100.0 Harman Audio Iberia Espa

107、na Sociedad Limitada Sale of audio products 100.0 Harman Becker Automotive Systems GmbH Manufacture,sales and R&D of audio products 100.0 Harman Becker Automotive Systems Italy S.R.L.Sale of audio products 100.0 Harman Becker Automotive Systems Manufacturing Kft Manufacture and R&D of audio products

108、 100.0 Harman Belgium SA Sale of audio products 100.0 Harman Connected Services AB.Connected service provider 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 10

109、0.0 Harman Connected Services UK Ltd.Connected service provider 100.0 Harman Consumer Nederland B.V.Sale of audio products 100.0 Harman Deutschland GmbH Sale of audio products 100.0 Harman France SNC Sale of audio products 100.0 Harman Holding GmbH&Co.KG Management company 100.0 Harman Hungary Finan

110、cing Ltd.Financing company 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 and R&D of audio products 100.0 Harman International Romania SRL R&D 100.0 Harman Management GmbH Management of overseas

111、 subsidiaries 100.0 Harman Professional Kft Manufacture and R&D of audio products 100.0 Harman Professional Denmark ApS Sale and R&D of audio products 100.0 Red Bend Software SAS Software design 100.0 Studer Professional Audio GmbH Sale and R&D of audio products 100.0 Harman Connected Services OOO C

112、onnected 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 CONSOLIDATED FINANCIAL STATEMENTS

113、(Continued)-18-Region 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)Manufacture of el

114、ectronic 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.(SEIL)Marketin

115、g 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 100.0 Samsun

116、g 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 Global Symphony

117、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 China)Samsung A

118、sia 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 devices 100.0

119、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)Manufacture of comm

120、unication 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 PT Samsung Electronics Indonesia(SEIN)Manufacture and sale of electronic devices 100.0 PT Samsung Tele

121、communications 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 100.0 Samsung Electronics Philippines Corporation(SEPCO)Sale of electronic devices 10

122、0.0 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 sale of electronic devices 100.0 Red Brick Lane Marketing Solutions Pvt.Ltd.Marke

123、ting 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 100.0 Samsung Nepal Services Pvt,Ltd(SNSL)Service 100.0 Samsung Japan Corporation(S

124、JC)Sale of semiconductor and display panels 100.0 Samsung R&D Institute Japan Co.Ltd.(SRJ)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 TO THE INTERIM CONSOLIDATED F

125、INANCIAL STATEMENTS (Continued)-19-Region Subsidiaries Industry Percentage of ownership(%)(*)Asia(Excluding China)Samsung Electronics Japan Co.,Ltd.(SEJ)Sale of electronic devices 100.0 Harman Connected Services Corp.India Pvt.Ltd.Connected service provider 100.0 Harman International(India)Private L

126、imited 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 products 100.0 China Samsung(CHINA)Investment Co.,Ltd.(SCIC)Sale of ele

127、ctronic 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 TV and monitors 91.2 Suzhou Samsung Electronics Co.,Ltd.(SSEC)Manufactu

128、re 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)Manufacture of communication equipment 90.0 Beijing Samsung Telecom R&D Cente

129、r(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 Semiconductor Co.,Ltd.(SSS)Sale of semiconductor and display panels 100.0

130、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 processing of semiconductors 100.0 Tianjin Samsung LED Co.,Ltd.(TSLED)Manuf

131、acture 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(XIAN)Co.,Ltd.Semiconductor/FPD equipment services 100.0 Samsung Semicond

132、uctor 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 Automotive Electronic Systems(Suzhou)Co.,Ltd.Manufacture and R&D of

133、 audio products 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 International(China)Holdings Co.,Ltd.Sale and R&D of audio products 10

134、0.0 Harman Technology(Shenzhen)Co.,Ltd.Sale and R&D 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 CONSOLIDATED FINANCIAL STATEMENTS (Con

135、tinued)-20-Region Subsidiaries Industry Percentage of ownership(%)(*)Domestic Samsung Display Co.,Ltd.Manufacture and sale of display panels 84.8 SU Materials Manufacture of display panel components 50.0 STECO Co.,Ltd.Manufacture of semiconductor components 70.0 SEMES Co.,Ltd.Manufacture and sale of

136、 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 electronic devices 100.0 Samsung El

137、ectronics 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 quality control software 99.9 Harman Inter

138、national Korea Software development and supply 100.0 Samsung Venture Capital Union#21 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#22 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#26 Technology business,Venture capital invest

139、ments 99.0 Samsung Venture Capital Union#28 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#29 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#32 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#3

140、3 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#37 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#40 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#42 Technology business,Venture capital inve

141、stments 99.0 Samsung Venture Capital Union#43 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#45 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union#52 Technology business,Venture capital investments 99.0 Samsung Venture Capital Union

142、#55 Technology business,Venture capital investments 99.0 Samsung 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 in

143、vestments 99.0 Growth Type Private Equity Trust Specialized In Semiconductors Investment on semiconductor industry 66.7 System LSI Mutual Benefit Private Equity Trust Investment on semiconductor industry 62.5 Semiconductor Ecosystem General Private Equity Trust Investment on semiconductor industry 6

144、6.7(*)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 (Continued)-21-1.3 Summary of Financial Data of Major Consolidated Subsidiar

145、ies Summary of financial data of major consolidated subsidiaries is as follows:(1)2024(In millions of Korean won)As of March 31,2024 For the three-month period ended March 31,2024 Major subsidiaries(*1)Assets Liabilities Sales Profit for the period Samsung Display Co.,Ltd.59,679,316 5,958,648 4,416,

146、769 1,988,742 Samsung Electronics America,Inc.(SEA)44,265,159 16,100,432 10,802,156 320,694 Samsung Asia Pte.Ltd.(SAPL)27,595,924 346,498 -4,268,036 Samsung Austin Semiconductor LLC.(SAS)19,369,723 9,909,787 1,047,393 137,751 Harman and its subsidiaries(*2)18,357,132 5,833,817 3,188,425 181,434 Sams

147、ung(China)Semiconductor Co.,Ltd.(SCS)16,604,495 981,073 3,062,668 278,116 Samsung Semiconductor,Inc.(SSI)12,864,862 5,982,046 6,886,736 71,338 Samsung Electronics Vietnam THAINGUYEN Co.,Ltd.(SEVT)11,371,976 3,602,504 11,035,651 955,233 Samsung(CHINA)Investment Co.,Ltd.(SCIC)10,943,384 10,374,957 824

148、,353 56,727 Samsung Electronics Europe Holding Cooperatief U.A.(SEEH)9,889,972 4,646,810 -74,334 Samsung India Electronics Private Ltd.(SIEL)9,036,280 3,998,663 4,473,966 485,100 Samsung Electronics Vietnam Co.,Ltd.(SEV)6,257,264 2,015,234 5,682,381 404,813 Shanghai Samsung Semiconductor Co.,Ltd.(SS

149、S)6,111,601 5,690,425 7,245,188 112,888 Samsung Display Vietnam Co.,Ltd.(SDV)6,074,465 1,448,676 3,580,221 167,858 Samsung Eletronica da Amazonia Ltda.(SEDA)5,367,477 1,820,201 2,127,073 151,276 Samsung Electronics HCMC CE Complex Co.,Ltd.(SEHC)4,332,474 934,331 1,685,609 55,077 Thai Samsung Electro

150、nics Co.,Ltd.(TSE)3,034,988 651,231 1,246,205 30,487 Samsung Electronics(UK)Ltd.(SEUK)2,977,640 1,972,562 1,662,705 44,582 Samsung Electronics Mexico S.A.De C.V.(SEM)2,751,099 1,518,190 1,093,900 40,778 Samsung Electronics Europe Logistics B.V.(SELS)2,709,719 2,040,913 4,310,686 465,913 Samsung Elec

151、tronics Taiwan Co.,Ltd.(SET)2,452,532 1,739,421 1,493,143 52,453 Samsung International,Inc.(SII)2,354,443 643,332 1,657,803 144,799 Samsung Electronics GmbH(SEG)2,246,143 2,155,995 1,803,932 24,164 SEMES Co.,Ltd.2,210,055 645,361 576,056 36,966 Samsung Electronics Benelux B.V.(SEBN)1,953,646 784,939

152、 847,508 70,004 (*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 T

153、O THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-22-(2)2023(In millions of Korean won)As of December 31,2023 For the three-month period ended March 31,2023 Major subsidiaries(*1)Assets Liabilities Sales Profit for the period Samsung Display Co.,Ltd.65,328,568 7,266,213 5,590,642 1,533,158

154、 Samsung Electronics America,Inc.(SEA)41,926,899 15,322,780 10,820,272 215,264 Samsung Asia Pte.Ltd.(SAPL)22,234,942 282,614 -6,633,188 Harman and its subsidiaries(*2)17,956,557 6,009,675 3,162,476 80,823 Samsung Austin Semiconductor LLC.(SAS)16,714,945 7,791,914 955,210 104,118 Samsung(China)Semico

155、nductor Co.,Ltd.(SCS)15,808,283 870,453 2,570,175 326,822 Samsung Semiconductor,Inc.(SSI)12,796,440 6,276,293 4,963,535 126,986 Samsung Electronics Vietnam THAINGUYEN Co.,Ltd.(SEVT)12,554,481 3,593,527 8,617,574 296,034 Samsung(CHINA)Investment Co.,Ltd.(SCIC)10,222,557 8,797,991 871,611 165,215 Sams

156、ung Electronics Europe Holding Cooperatief U.A.(SEEH)9,660,481 4,585,806 -8,475 Samsung India Electronics Private Ltd.(SIEL)7,738,259 3,373,730 3,813,918 333,280 Samsung Display Vietnam Co.,Ltd.(SDV)7,383,485 1,570,459 5,188,088 450,095 Samsung Electronics Vietnam Co.,Ltd.(SEV)7,301,860 2,215,062 5,

157、696,296 462,841 Samsung Eletronica da Amazonia Ltda.(SEDA)5,542,627 1,587,911 1,915,702 132,232 Shanghai Samsung Semiconductor Co.,Ltd.(SSS)5,262,086 4,552,030 2,919,973 64,077 Samsung Electronics HCMC CE Complex Co.,Ltd.(SEHC)4,043,677 843,736 1,497,391 198,526 Thai Samsung Electronics Co.,Ltd.(TSE

158、)3,039,379 640,512 1,218,750 89,052 Samsung Electronics(UK)Ltd.(SEUK)2,902,722 1,976,067 1,527,336 72,350 SEMES Co.,Ltd.2,187,919 659,607 726,353 24,283 Samsung Electronics Mexico S.A.De C.V.(SEM)2,153,032 1,038,115 842,543 59,287 Samsung Electronics GmbH(SEG)2,097,706 2,033,152 1,641,944 60,288 Sam

159、sung International,Inc.(SII)1,879,442 383,763 1,755,989 365,590 Samsung Electronics Taiwan Co.,Ltd.(SET)1,797,627 1,139,056 945,813 2,199 Samsung Electronics Benelux B.V.(SEBN)1,794,552 639,120 831,705 106,217 Samsung Electronics Europe Logistics B.V.(SELS)1,639,004 1,443,005 4,242,449 184,428 (*1)S

160、ummary 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.1.4 Changes in Consolidation Scope Changes in consolidation scope during the

161、three-month period ended March 31,2024 are as follows:Change Region Subsidiary Description Excluded America Harman Financial Group LLC Liquidation Asia(Excluding China)DOWOOINSYS VINA COMPANY LIMITED Sale of business Europe/CIS Dowooinsys Co.,Ltd.Sale of business Gf-System Co.,Ltd.Sale of business S

162、amsung Venture Capital Union#48 Liquidation Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-23-2.Material Accounting Policies 2.1 Basis of Presentation The Company maintains its accounting records in Korean won and prepares statutor

163、y financial statements in the Korean language(Hangul)in accordance with International Financial Reporting Standards 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 Kore

164、an language financial statements.The interim consolidated financial statements for the three-month period ended March 31,2024 have been prepared in accordance with Korean IFRS 1034,Interim Financial Reporting.These interim consolidated financial statements have been prepared in accordance with the K

165、orean IFRS which is effective as of March 31,2024.(A)New and amended standards adopted by the Company The Company applied the following amended standards for the first time for the annual reporting period commencing January 1,2024:Amendments to Korean IFRS 1001,Presentation of Financial Statements T

166、he amendments to Korean-IFRS 1001 clarify that the classification of liabilities 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 wi

167、ll exercise its right to defer settlement of a liability.The amendments also introduce 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 tra

168、nsfer of the entitys own equity instruments is recognized separately from the liability as an equity component of a compound financial instrument.The application of amendments does not have a significant impact on the Companys interim consolidated financial statements.Amendments to Korean IFRS 1116,

169、Leases The amendments add requirements for the subsequent measurement of sale-and-leaseback transactions that are accounted for as sales in accordance with Korean IFRS 1115,Revenue from Contracts with Customers.The amendments require the seller-lessee to calculate the lease payments or revised lease

170、 payments in a way that does not result in the seller-lessee recognizing any gain or loss for the rights of use that the seller-lessee continues to retain after the lease commences.The application of amendments does not have a significant impact on the Companys interim consolidated financial stateme

171、nts.Amendments to Korean IFRS 1007,Statement of Cash Flows,and 1107,Financial Instruments:Presentation The amendments add to the disclosure objectives in Korean IFRS 1007,Statement of Cash Flows,that information about supplier financing arrangements should be disclosed to enable users of financial s

172、tatements to assess the impact of those arrangements on the Companys liabilities and cash flows.The amendments also amend Korean IFRS 1107,Financial Instruments:Presentation,to add supplier financing arrangements as an example of a requirement to disclose information about an entitys exposure to con

173、centrations of liquidity risk.The application of amendments does not have a significant impact on the Companys interim consolidated financial statements.(B)New and amended standards not yet adopted by the Company The amended accounting standard issued that is not yet effective for the annual reporti

174、ng period commencing January 1,2024 and has not been early adopted by the Company is as follows:Amendments to Korean IFRS 1021,The Effects of Changes in Foreign Exchange Rates Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-24-The a

175、mendments require exchangeability of two currencies should be assessed in order to clarify reporting of foreign currency transactions in the absence of normal-functioning foreign exchange market.The amendments also require applicable spot exchange rate should be determined when the assessment indica

176、tes two currencies lack exchangeability.The amendments are effective for annual reporting periods beginning on or after January 1,2025,with early application permitted.2.2 Accounting Policies Material accounting policies and method of computation used in the preparation of the interim consolidated f

177、inancial statements are consistent with those of the annual consolidated financial statements for the year ended December 31,2023,except for the changes due to the application of amendments of standards described in Note 2.1 and as described below.Income tax expense for the interim period is recogni

178、zed based on managements best estimate of the weighted average annual income tax rate expected for the full financial year considering global minimum top-up tax.The estimated average annual effective income tax rate is applied to the pre-tax income of the interim period.2.3 Convenience Translation i

179、nto 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 1,328.2 to$1,the average exchange rate for the thr

180、ee-month period ended March 31,2024.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 Mat

181、erial 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

182、and assumptions 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 acco

183、unting 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 31,2023,except for the estimates used to determine the income tax

184、 expense.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-25-3.Financial Instruments by Category Categorizations of financial assets and liabilities as of March 31,2024 and December 31,2023 are as follows:(1)As of March 31,2024(In mi

185、llions 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 61,906,097-61,906,097 S

186、hort-term financial instruments 35,458,597-35,458,597 Short-term financial assets at amortized cost-Short-term financial assets at fair value through profit or loss-28,132-28,132 Trade receivables 41,145,391-41,145,391 Financial assets at fair value through other comprehensive income -8,180,091-8,18

187、0,091 Financial assets at fair value through profit or loss -1,414,332-1,414,332 Other 11,559,628-486,073 73,929 12,119,630 Total 150,069,713 8,180,091 1,928,537 73,929 160,252,270 (*)Other financial assets include derivatives designated as hedging instruments which are not subject to categorization

188、s.(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 12,419,094-12,419,094 Short-term borrowings 311,521-9,323,027 9,634,548 Other pay

189、ables 15,019,429-15,019,429 Current portion of long-term liabilities 400,730-1,046,761 1,447,491 Debentures 560,590-560,590 Long-term borrowings-3,861,524 3,861,524 Long-term other payables 4,658,208-4,658,208 Other 11,569,291 33,656 22,381 11,625,328 Total 44,938,863 33,656 14,253,693 59,226,212 (*

190、)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 FINANCIAL STATEMENTS (Continued)-26-(2)As of

191、December 31,2023 (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

192、69,080,893-69,080,893 Short-term financial instruments 22,690,924-22,690,924 Short-term financial assets at amortized cost 608,281-608,281 Short-term financial assets at fair value through profit or loss-27,112-27,112 Trade receivables 36,647,393-36,647,393 Financial assets at fair value through oth

193、er comprehensive income -7,481,297-7,481,297 Financial assets at fair value through profit or loss -1,431,394-1,431,394 Other 14,294,254-475,244 70,777 14,840,275 Total 143,321,745 7,481,297 1,933,750 70,777 152,807,569 (*)Other financial assets include derivatives designated as hedging instruments

194、which are not subject 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 11,319,824 -11,319,824 Short-term borrowin

195、gs 504,552 -6,610,049 7,114,601 Other payables 13,996,395 -13,996,395 Current portion of long-term liabilities 310,436 -998,439 1,308,875 Debentures 537,618 -537,618 Long-term borrowings-3,724,850 3,724,850 Long-term other payables 4,907,875 -4,907,875 Other 11,330,545 49,904 33,559 11,414,008 Total

196、 42,907,245 49,904 11,366,897 54,324,046 (*)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 FI

197、NANCIAL STATEMENTS (Continued)-27-4.Financial Assets at Fair Value (A)Details of financial assets at fair value as of March 31,2024 and December 31,2023 are as follows:(1)Financial assets at fair value through other comprehensive income (In millions of Korean won)March 31,2024 December 31,2023 Non-c

198、urrent Equity instruments 8,180,091 7,481,297 (2)Financial assets at fair value through profit or loss (In millions of Korean won)March 31,2024 December 31,2023 Current Debt instruments 28,132 27,112 Non-current Equity instruments 713,275 812,358 Debt instruments 701,057 619,036 Subtotal 1,414,332 1

199、,431,394 Total 1,442,464 1,458,506 (B)Details of listed equity securities of financial assets at fair value as of March 31,2024 and December 31,2023 are as follows:March 31,2024 December 31,2023(In millions of Korean won and number of shares and percentage)Number of shares owned Percentage of owners

200、hip(*)(%)Acquisition cost Carrying amount(Market value)Carrying amount(Market value)Samsung Heavy Industries Co.,Ltd.134,027,281 15.2 932,158 1,147,274 1,038,711 Hotel Shilla Co.,Ltd.2,004,717 5.1 13,957 120,283 131,108 iMarketKorea Inc.647,320 1.9 324 5,502 5,560 Wonik Holdings Co.,Ltd.3,518,342 4.

201、6 30,821 14,496 11,857 Wonik IPS Co.,Ltd.3,701,872 7.5 32,428 153,628 125,679 Wacom Co.,Ltd.8,398,400 5.5 62,013 49,826 50,358 Corning Incorporated 80,000,000 9.3 3,980,636 3,551,242 3,140,978 Other 463,089 1,073,965 1,093,963 Total 5,515,426 6,116,216 5,598,214 (*)Ownership represents the Companys

202、ownership of the total ordinary shares issued by each entity.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-28-5.Inventories Inventories as of March 31,2024 and December 31,2023 are as follows:March 31,2024 December 31,2023(In mill

203、ions of Korean won)Gross amount Valuation allowance Carrying amount Gross amount Valuation allowance Carrying amount Finished goods 15,448,722 (1,101,316)14,347,406 16,120,367 (1,567,353)14,553,014 Work in process 25,366,463 (2,559,954)22,806,509 26,501,664 (4,303,216)22,198,448 Raw materials and su

204、pplies 16,640,738 (1,865,309)14,775,429 15,222,937 (1,525,583)13,697,354 Materials in transit 1,418,356 -1,418,356 1,177,058 -1,177,058 Total 58,874,279 (5,526,579)53,347,700 59,022,026 (7,396,152)51,625,874 6.Investments in Associates and Joint Ventures (A)Changes in investments in associates and j

205、oint ventures for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Balance as of January 1 11,767,444 10,893,869 Acquisition 6,342 62,182 Disposal(11,731)(4,661)Share of profit 214,833 213,841 Other(*)(69,115)33,392 Balance as of March 31 11,90

206、7,773 11,198,623 (*)Other consists of dividends,impairment,and reclassification.(B)Major investments in associates and joint ventures as of March 31,2024 are as follows:(1)Investments in associates Investee Nature of relationship Percentage of ownership(%)(*1)Principal business location Fiscal perio

207、d-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 Information Technology(IT)services including computer programming,system integration and management and logisti

208、cal 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 electronic parts including secondary cell batteries 19.6 Korea December Cheil Worldwide,Inc.Advertising agency 25.2 Korea December (*1)Ownership re

209、presents 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 STATEMENTS (Continued)-29-(2)Investments in joint venture

210、s 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 Companys ownership of the total ordinary

211、shares issued by the entity.(C)Details of investments in associates and joint ventures as of March 31,2024 and December 31,2023 are as follows:(1)Investments in associates (In millions of Korean won)March 31,2024 Investee Acquisition cost Net asset value of equity shares(*)Carrying amount Samsung El

212、ectro-Mechanics Co.,Ltd.359,237 1,879,909 1,886,185 Samsung SDS Co.,Ltd.147,963 1,970,569 1,981,551 Samsung Biologics Co.,Ltd.1,424,358 3,124,744 3,129,303 Samsung SDI Co.,Ltd.1,242,605 3,804,325 2,951,145 Cheil Worldwide,Inc.506,162 355,168 655,678 Other 690,831 844,983 1,091,546 Total 4,371,156 11

213、,979,698 11,695,408 (*)The Companys portion of net asset value of associates is based on the Companys percentage of ownership.(In millions of Korean won)December 31,2023 Investee Acquisition cost Net asset value of equity shares(*)Carrying amount Samsung Electro-Mechanics Co.,Ltd.359,237 1,837,925 1

214、,841,393 Samsung SDS Co.,Ltd.147,963 1,955,699 1,966,206 Samsung Biologics Co.,Ltd.1,424,358 3,068,636 3,073,595 Samsung SDI Co.,Ltd.1,242,605 3,726,675 2,912,564 Cheil Worldwide,Inc.506,162 368,875 669,363 Other 690,481 844,645 1,093,799 Total 4,370,806 11,802,455 11,556,920 (*)The Companys portion

215、 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 (Continued)-30-(2)Investments in joint ventures (In millions of Korean won)March 31,2024 Investee Acquisition cos

216、t Net asset value of equity shares(*)Carrying amount Samsung Corning Advanced Glass LLC 215,000 138,229 138,228 Other 259,994 74,287 74,137 Total 474,994 212,516 212,365 (*)The Companys portion of net asset value of joint ventures is based on the Companys percentage of ownership.(In millions of Kore

217、an won)December 31,2023 Investee Acquisition cost Net asset value of equity shares(*)Carrying amount Samsung Corning Advanced Glass LLC 215,000 138,939 138,938 Other 259,994 72,215 71,586 Total 474,994 211,154 210,524 (*)The Companys portion of net asset value of joint ventures is based on the Compa

218、nys 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 three-month period ended March 31,2024 (In millions of Korean won)Balance as of January 1 Share of profit(loss)Share of other comp

219、rehensive income(loss)Other(*)Balance as of March 31 Samsung Electro-Mechanics Co.,Ltd.1,841,393 45,620 19,518 (20,346)1,886,185 Samsung SDS Co.,Ltd.1,966,206 48,113 14,407 (47,175)1,981,551 Samsung Biologics Co.,Ltd.3,073,595 56,544 (836)-3,129,303 Samsung SDI Co.,Ltd.2,912,564 34,211 17,833 (13,46

220、3)2,951,145 Cheil Worldwide,Inc.669,363 12,260 6,287 (32,232)655,678 Samsung Corning Advanced Glass LLC 138,938 (710)-138,228 Other 1,165,385 18,795 (17,400)(1,097)1,165,683 Total 11,767,444 214,833 39,809 (114,313)11,907,773 (*)Other consists of acquisitions,disposals,dividends,impairment and recla

221、ssification.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-31-(2)For the three-month period ended March 31,2023 (In millions of Korean won)Balance as of January 1 Share of profit(loss)Share of other comprehensive income(loss)Other(

222、*)Balance as of March 31 Samsung Electro-Mechanics Co.,Ltd.1,764,249 27,365 19,529 (37,156)1,773,987 Samsung SDS Co.,Ltd.1,870,338 45,756 21,635 (55,911)1,881,818 Samsung Biologics Co.,Ltd.2,808,673 44,686 54 -2,853,413 Samsung SDI Co.,Ltd.2,691,223 60,907 59,168 (13,867)2,797,431 Cheil Worldwide,In

223、c.649,161 11,400 7,525 (33,393)634,693 Samsung Corning Advanced Glass LLC 137,745 (1,036)-136,709 Other 972,480 24,763 57,737 65,592 1,120,572 Total 10,893,869 213,841 165,648 (74,735)11,198,623 (*)Other consists of acquisitions,disposals,dividends,impairment,and reclassification.(E)Summary of the f

224、inancial information of major associates and joint ventures (1)Summary of financial information of major associates and dividends received from associates as of March 31,2024 and December 31,2023,and for the three-month periods ended March 31,2024 and 2023 are as follows:2024(In millions of Korean w

225、on)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 5,606,634 8,255,477 5,602,200 10,044,641 2,309,628 Non-current assets 6,573,296 4,201

226、,862 10,920,992 25,405,992 503,430 Current liabilities 3,208,121 2,431,603 4,646,078 9,831,986 1,348,013 Non-current liabilities 754,850 982,052 1,866,876 5,013,562 214,421 Non-controlling interests 189,981 319,844 -1,708,004 11,872 Condensed statements of comprehensive income:Revenue 2,624,289 3,24

227、7,268 946,903 5,130,893 1,018,010 Profit from continuing operations,net of tax(*)183,179 210,895 179,362 273,134 42,727 Loss from discontinued operations,net of tax(*)(373)-Other comprehensive income(*)83,481 63,780 383 179,519 21,886 Total comprehensive income(*)266,287 274,675 179,745 452,653 64,6

228、13 2.Dividends from associates Dividends 20,347 47,175 -13,463 32,232 (*)Profit(loss)attributable to owners of the investee Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-32-2023 (In millions of Korean won)Samsung Electro-Mechanics

229、 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 5,208,418 8,160,300 5,521,988 9,187,029 2,372,420 Non-current assets 6,449,453 4,160,724 10,524,209 24,851,831 51

230、7,085 Current liabilities 2,900,460 2,391,861 4,157,861 8,518,933 1,375,034 Non-current liabilities 727,087 953,592 2,057,844 5,612,677 216,707 Non-controlling interests 182,613 317,562-1,395,877 11,206 Condensed statements of comprehensive income:Revenue 2,021,763 3,400,923 720,922 5,354,845 941,60

231、1 Profit from continuing operations,net of tax(*)118,079 202,485 141,755 439,283 39,753 Other comprehensive income(*)103,812 95,781 182 358,999 30,281 Total comprehensive income(*)221,891 298,266 141,937 798,282 70,034 2.Dividends from associates Dividends 37,155 55,911-13,867 33,394 (*)Profit attri

232、butable to owners of the investee.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-33-(2)Summary of financial information of major joint ventures and dividends received from joint ventures as of March 31,2024 and December 31,2023,and

233、 for the three-month periods ended March 31,2024 and 2023 are as follows:Samsung Corning Advanced Glass,LLC(In millions of Korean won)2024 2023 Condensed financial information Condensed statements of financial position:Current assets 119,825 116,372 Non-current assets 182,292 185,100 Current liabili

234、ties 24,708 22,684 Non-current liabilities 952 911 Condensed statements of comprehensive income:Revenue 35,370 22,099 Profit(loss)for the period(1,420)(2,071)Other comprehensive income-Total comprehensive income(1,420)(2,071)Dividends from joint ventures Dividends-(3)Profit(loss)attributable to owne

235、rs of the parent company from associates and joint ventures which are not individually material for the three-month periods ended March 31,2024 and 2023 are as follows:2024 2023(In millions of Korean won)Associates Joint ventures Associates Joint ventures Profit from continuing operations 18,101 694

236、 24,199 564 Other comprehensive income(loss)(17,824)424 53,082 4,655 Total comprehensive income 277 1,118 77,281 5,219 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-34-(F)Details of marketable investments in associates as of March

237、 31,2024 and December 31,2023 are as follows:(In millions of Korean won and number of shares)March 31,2024 December 31,2023 Number of shares held Market value Market value Samsung Electro-Mechanics Co.,Ltd.17,693,084 2,630,962 2,710,580 Samsung SDS Co.,Ltd.17,472,110 2,856,690 2,970,259 Samsung Biol

238、ogics Co.,Ltd.22,217,309 18,462,584 16,885,155 Samsung SDI Co.,Ltd.13,462,673 6,340,919 6,354,382 Cheil Worldwide,Inc.29,038,075 545,335 552,595 (G)Other matters On July 12,2018,the Korea Securities and Futures Commission determined an initial measure following an investigation relating to Samsung B

239、iologics Co.,Ltd.,an associate of the Company,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 audit

240、or designation by the regulator,on the 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

241、 the CEO,a requirement to restate its financial 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 Sep

242、tember 24,2020,the Seoul Administrative 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

243、 the litigation is in progress at Seoul 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,

244、until the final rulings.The Korea Securities 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 Sec

245、urities and Futures Commission re-appealed 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,respe

246、ctively,and confirmed the decision to suspend 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

247、 investment in Samsung Bioepis Co.,Ltd.,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,

248、2016,may be impacted.Given the timing of 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 th

249、ese proceedings in the current period consolidated financial statements.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-35-7.Property,Plant and Equipment(A)Changes in property,plant and equipment for the three-month periods ended Ma

250、rch 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Balance as of January 1 187,256,262 168,045,388 Acquisition and capital expenditures 11,773,595 11,343,333 Depreciation(9,231,310)(8,800,895)Disposals/scrap/impairment(130,748)(207,911)Other(*)1,487,761 1,477,601 Balance as of

251、March 31 191,155,560 171,857,516 (*)Other includes effects of changes in foreign currency exchange rates.(B)Details of depreciation of property,plant and equipment for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Cost of sales 8,197,276 7,8

252、63,833 Selling and administrative expenses,and other 1,034,034 937,062 Total 9,231,310 8,800,895 (C)Right-of-use assets as of March 31,2024 amount to W 5,612,305 million(December 31,2023:W 5,449,032 million).During the three-month periods ended March 31,2024 and 2023,newly recognized right-of-use as

253、sets amount to W 464,894 million and W 604,534 million,respectively,with relevant depreciation of W 292,806 million and W 288,193 million,respectively.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-36-8.Intangible Assets(A)Changes

254、in intangible assets for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Balance as of January 1 22,741,862 20,217,754 External acquisitions 844,734 3,805,353 Amortization(719,482)(785,598)Disposals/scrap/impairment(9,522)(15,204)Other(*)389,0

255、11 395,398 Balance as of March 31 23,246,603 23,617,703 (*)Other includes the cumulative effect of changes in foreign currency exchange rates and business combinations.(B)Details of amortization of intangible assets for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions

256、 of Korean won)2024 2023 Cost of sales 484,976 552,375 Selling and administrative expenses and other 234,506 233,223 Total 719,482 785,598 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-37-9.Borrowings Details of the carrying amoun

257、ts of borrowings as of March 31,2024 and December 31,2023 are as follows:(In millions of Korean won)Financial institutions Interest rates(%)as of March 31,2024 March 31,2024 December 31,2023 Short-term borrowings Collateralized borrowings(*1)Woori Bank and others 0.013.2 9,323,027 6,610,049 Non-coll

258、ateralized borrowings Citibank and others 0.062.2 311,521 504,552 Total 9,634,548 7,114,601 Current portion of long-term borrowings Bank borrowings BNP and others 36.161.5 394,084 304,082 Lease liabilities(*2)CSSD and others 4.4 1,046,761 998,439 Total 1,440,845 1,302,521 Long-term borrowings Lease

259、liabilities(*2)CSSD and others 4.4 3,861,524 3,724,850 (*1)Collateralized borrowings are secured by trade receivables.(*2)Interest expenses arising from the lease liabilities for the three-month periods ended March 31,2024 and 2023 amount to W 53,023 million and W 45,462 million,respectively,which a

260、re determined using the weighted average incremental borrowing rate.The right-of-use assets are pledged as collateral to the lessor in the event of default.10.Debentures Details of the carrying amounts of debentures as of March 31,2024 and December 31,2023 are as follows:(In millions of Korean won)I

261、ssue date Due date Interest rate(%)as of March 31,2024 March 31,2024 December 31,2023 US dollar denominated straight bonds(*1)1997.10.2 2027.10.1 7.7 26,936 25,788 (US$20 million)(US$20 million)US dollar denominated debentures(*2)2015.5.11 2025.5.15 4.2 538,720 515,760 (US$400 million)(US$400 millio

262、n)Less:Discounts (347)(370)Add:Premium 1,927 2,794 Less:Current portion (6,646)(6,354)Total 560,590 537,618 (*1)US dollar denominated straight bonds are repaid annually for twenty years after a ten-year grace period from the date of issuance.Interest is paid semi-annually.(*2)Harman International In

263、dustries,Inc.issued US dollar denominated debentures.These debentures are repaid on the maturity and interest is paid semi-annually in arrears.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-38-11.Net Defined Benefit Liabilities(Ass

264、ets)(A)Details of net defined benefit liabilities(assets)recognized in the statement of financial position as of March 31,2024 and December 31,2023 are as follows:(In millions of Korean won)March 31,2024 December 31,2023 Present value of funded defined benefit obligations 15,504,318 15,403,976 Prese

265、nt value of unfunded defined benefit obligations 335,832 319,689 Subtotal 15,840,150 15,723,665 Fair value of plan assets(19,917,529)(20,172,327)Total(4,077,379)(4,448,662)(B)The components of defined benefit costs recognized in profit or loss for the three-month periods ended March 31,2024 and 2023

266、 relating to defined benefit plans are as follows:(In millions of Korean won)2024 2023 Current service cost 354,156 323,685 Net interest income(64,618)(89,746)Past service cost(163)(255)Other 4,534 7,929 Total 293,909 241,613 (C)The expenses related to defined benefit plans recognized in the stateme

267、nt of profit or loss for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Cost of sales 117,751 103,181 Selling and administrative expenses and other 176,158 138,432 Total 293,909 241,613 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES T

268、O THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-39-12.Provisions Changes in the provisions for the three-month period ended March 31,2024 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 2,540,212 1,838

269、,052 993,751 4,031,311 9,403,326 Charged to profit or loss 577,767 384,521 41,627 1,442,676 2,446,591 Payment(473,574)(317,888)(188,490)(317,140)(1,297,092)Other(*)39,779 5,671 5,101 32,665 83,216 Balance as of March 31 2,684,184 1,910,356 851,989 5,189,512 10,636,041 (*)Other includes effects of ch

270、anges in foreign currency exchange rates.(A)The Company accrues warranty provisions 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 expe

271、nses that are under negotiation with counterparties.The timing and amount 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 incent

272、ive cost.(D)The Company records provisions for future expenses expected to 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 emiss

273、ion rights and liabilities as of March 31,2024 are as follows:(1)The amount of emission rights allocated free of charge in the current commitment period and the estimated amount of emission as of March 31,2024 are as follows:(In ten thousand metric tons)March 31,2024 Emission rights allocated free o

274、f charge 1,689 Estimated volume of emission 1,761 (2)Changes in the emission rights for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Balance as of January 1 3,137 19,567 Increase(decrease)-Balance as of March 31 3,137 19,567 (3)Changes in e

275、missions liabilities for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Balance as of January 1 137 32,838 Charged to profit or loss 35 (1)Utilization-Balance as of March 31 172 32,837 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO

276、 THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-40-13.Commitments and Contingencies (A)Litigation As of March 31,2024,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

277、.Although the outflow of resources and timing of these matters are uncertain,the Company believes the outcome will not have a material impact on the financial position of the Company.(B)Other commitments As of March 31,2024,contractual commitments for the acquisition of property,plant and equipment

278、and intangible assets amount to W 16,672,510 million.14.Contract Liabilities The Company has recognized contract liabilities related to contracts with customers as follows:(In millions of Korean won)March 31,2024 December 31,2023 Contract liabilities(*)13,586,115 13,327,724 (*)Contract liabilities i

279、nclude advances received,accrued expenses,other current liabilities and others.15.Share Capital As of March 31,2024,the Companys total number of authorized shares is 25,000,000,000 shares(W 100 per share).As well as its ordinary shares,the Company also has non-cumulative preference shares that are e

280、ligible for an additional 1%cash dividend over par value per annum compared to ordinary shares,but without voting rights.The Company has issued 5,969,782,550 shares of ordinary shares and 822,886,700 shares of preference shares as of March 31,2024,excluding retired shares.As of March 31,2024,the num

281、ber 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 three-month period ended March 31,2024 and the year ended December 31,2023.Due to the retirement of shares,the total par value of the shares issued which

282、 excludes the number of retired shares is W 679,267 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 STAT

283、EMENTS (Continued)-41-16.Retained Earnings (A)Retained earnings as of March 31,2024 and December 31,2023 consist of the following:(In millions of Korean won)March 31,2024 December 31,2023 Discretionary reserve and other 208,786,001 208,198,003 Unappropriated retained earnings 142,061,853 138,454,235

284、 Total 350,847,854 346,652,238 (B)Details of interim dividends are as follows:(In millions of Korean won and number of shares)2024 2023 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

285、 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 Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-42-17.Other Components of Equity Othe

286、r components of equity as of March 31,2024 and December 31,2023 are as follows:(In millions of Korean won)March 31,2024 December 31,2023 Gain on valuation of financial assets at fair value through other comprehensive income 629,632 194,419 Share of other comprehensive income of associates and joint

287、ventures 233,738 185,144 Gain on overseas business translation 8,124,915 3,651,112 Remeasurement of net defined benefit liabilities(assets)(2,932,385)(2,849,526)Other 109,908 98,981 Total 6,165,808 1,280,130 18.Expenses by Nature Expenses by nature for the three-month periods ended March 31,2024 and

288、 2023 consist of the following:(In millions of Korean won)2024 2023 Changes in finished goods,work in process,and other(399,265)(2,216,760)Raw materials used,merchandise purchased,and other 24,298,463 27,196,920 Wages and salaries 8,075,000 7,901,166 Post-employment benefit 347,810 278,289 Depreciat

289、ion 9,231,310 8,800,895 Amortization 719,482 785,598 Welfare 1,724,478 1,541,276 Utilities 2,023,182 1,861,110 Outsourcing 1,770,506 1,680,919 Advertising 1,434,926 1,145,343 Sales promotion 1,837,394 1,672,952 Other 14,246,306 12,457,485 Total(*)65,309,592 63,105,193 (*)Equal to the sum of cost of

290、sales and selling and administrative expenses in the consolidated statement of profit or loss.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-43-19.Selling and Administrative Expenses Selling and administrative expenses for the thre

291、e-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Selling and administrative expenses Wages and salaries 2,179,210 2,072,409 Post-employment benefit 77,591 69,512 Commissions 2,083,504 2,103,924 Depreciation 412,997 403,646 Amortization 175,047 168,939

292、Advertising 1,434,926 1,145,343 Sales promotion 1,837,394 1,672,952 Transportation 714,535 414,405 Service 1,241,559 1,021,736 Other 1,446,457 1,446,500 Subtotal 11,603,220 10,519,366 Research and development expenses Research and development 7,820,040 6,578,734 Total 19,423,260 17,098,100 20.Other

293、Non-Operating Income and Expenses Details of other non-operating income and expenses for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Other non-operating income Dividend income 39,457 47,894 Rental income 38,914 37,942 Gain on disposal of p

294、roperty,plant and equipment 9,335 34,449 Other 357,575 384,010 Total 445,281 504,295 (In millions of Korean won)2024 2023 Other non-operating expenses Loss on disposal of property,plant and equipment 26,048 9,392 Donations 77,476 73,083 Other 277,869 121,507 Total 381,393 203,982 Samsung Electronics

295、 Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-44-21.Financial Income and Expenses Details of financial income and expenses for the three-month periods ended March 31,2024 and 2023 are as follows:(In millions of Korean won)2024 2023 Financial income

296、Interest income 1,172,185 1,060,446 Financial assets measured at amortized cost 1,172,152 1,060,380 Financial assets measured at fair value through profit or loss 33 66 Foreign exchange differences 2,120,929 3,120,012 Gain from derivatives 191,390 447,591 Total 3,484,504 4,628,049 (In millions of Ko

297、rean won)2024 2023 Financial expenses Interest expenses 242,772 291,677 Financial liabilities measured at amortized cost 66,927 151,856 Other financial liabilities 175,845 139,821 Foreign exchange differences 2,240,061 3,375,878 Losses from derivatives 179,678 288,446 Total 2,662,511 3,956,001 The C

298、ompany 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 STATEMENTS (Continued)-45-22.Income Tax Expense Income tax expe

299、nse is recognized based on managements best estimate of the weighted average annual income tax rate expected for the full financial year considering global minimum top-up tax.The average annual tax rate expected as of March 31,2024 to be effective for the year ended December 31,2024 is 12.4%.23.Earn

300、ings per Share (A)Basic earnings per share Basic earnings per share for the three-month periods ended March 31,2024 and 2023 are calculated as follows:(1)Ordinary shares (In millions of Korean won and thousands of number of shares)2024 2023 Profit for the period attributable to owners of the parent

301、company 6,621,030 1,401,252 Profit for the period available for ordinary shares 5,818,936 1,231,500 Weighted-average number of ordinary shares outstanding 5,969,783 5,969,783 Basic earnings per ordinary share(in Korean won)975 206 (2)Preference shares (In millions of Korean won and thousands of numb

302、er of shares)2024 2023 Profit for the period attributable to owners of the parent company 6,621,030 1,401,252 Profit for the period available for preference shares 802,094 169,752 Weighted-average number of preference shares outstanding 822,887 822,887 Basic earnings per preference share(in Korean w

303、on)975 206 (B)Diluted earnings per share The Company does not have dilutive potential ordinary shares and as a result,basic earnings per share and diluted earnings per share are the same for the three-month periods ended March 31,2024 and 2023.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES T

304、O THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-46-24.Statements of Cash Flows 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 three-month periods ended March

305、31,2024 and 2023 are as follows:-Adjustments (In millions of Korean won)2024 2023 Adjustments:Income tax expense 952,015 251,780 Financial income(2,077,714)(2,267,376)Financial expenses 1,520,022 1,797,505 Post-employment benefits 347,810 278,289 Depreciation 9,231,310 8,800,895 Amortization 719,482

306、 785,598 Bad debt expense(reversal)(31,709)67,557 Dividend income(39,457)(47,894)Share of profit of associates and joint ventures(214,833)(213,841)Gain on disposal of property,plant and equipment(9,335)(34,449)Loss on disposal of property,plant and equipment 26,048 9,392 Loss(gain)on valuation of in

307、ventories(1,648,575)2,475,649 Others(28,045)(195,008)Total 8,747,019 11,708,097 -Changes in assets and liabilities arising from operating activities (In millions of Korean won)2024 2023 Changes in assets and liabilities:Decrease(increase)in trade receivables(3,609,636)411,960 Decrease(increase)in ot

308、her receivables(223,276)1,151,428 Decrease(increase)in prepaid expenses 36,117 (422,761)Decrease(increase)in inventories 627,518 (3,731,787)Increase in trade payables 446,091 1,071,670 Increase(decrease)in other payables 479,925 (4,473)Increase(decrease)in advances received 171,189 (47,042)Increase(

309、decrease)in withholdings 13,584 (528,193)Decrease in accrued expenses(1,229,733)(5,169,031)Increase in provisions 1,149,499 1,287,161 Payment of post-employment benefits(289,829)(162,758)Others(966,738)(296,713)Total(3,395,289)(6,440,539)For the three-month periods ended March 31,2024 and 2023,cash

310、outflows from principal portion of lease liabilities(financial activities)amount to W 286,357 million and W 261,755 million,respectively,and cash outflows due to interest expenses(operating activities)in relation to the lease liabilities amount to W 53,023 million and W 45,462 million,respectively.S

311、amsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-47-25.Financial Risk Management The Company manages its financial risks with a focus on minimizing market risk,credit risk,and liquidity risk arising from its operating activities.To th

312、is end,the Company closely monitors and responds to each risk factor.The Company establishes global financial management standards,periodically measures customers and counterpartys financial risk,and manages the risk with currency hedges and review of cash flows.The Company also manages foreign exch

313、ange 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 addition,local finance

314、centers in the major regions respond to liquidity risk through a regionally integrated financial structure.The Companys financial assets subject to financial risk management consist of cash and cash equivalents,short-term financial instruments,financial assets at amortized cost,trade receivables and

315、 others,while its financial liabilities consist 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 through transactions in currencies other than its functional currency.The main currencies

316、 in which the Company is exposed to foreign exchange risk are the US dollar and European Euro.The Company focuses on minimizing the impact of foreign exchange fluctuation by matching levels of assets and liabilities denominated in each foreign currency.To minimize exchange position,the Companys fore

317、ign 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 outflows incurred in the respective foreign currencies.This red

318、uces but may not eliminate the foreign exchange risk to which the Company is exposed.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 In

319、terest rate risk for floating interest rate financial instruments can be defined as the risk of changes in the fair value of components of the statement of financial position due to changes in the market interest rates,and the risk of changes in the future cash flows of interest income and expenses

320、arising from investing and financing activities.The Companys exposure to interest rate risk arises primarily from interest-bearing deposits and floating interest rate debt obligations,and the Company manages its exposure to interest rate risk to minimize uncertainty and cost of financing resulting f

321、rom changes in interest rates.(3)Price risk The Companys 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 w

322、ith the Companys strategy.As of March 31,2024 and 2023,price fluctuation of marketable equity securities(listed stocks)by 1%would result in changes in other comprehensive income(before income tax)of W 58,830 million and W 111,415 million,respectively,and changes in profit before tax of W 2,333 milli

323、on and W 5,354 million,respectively.Samsung Electronics Co.,Ltd.and its subsidiaries NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Continued)-48-(B)Credit risk Credit risk arises during the normal course of transactions and investing activities where customers or other parties fail to disc

324、harge an obligation.The Company monitors and sets the customers and counterpartys credit limit on a periodic basis based on their financial conditions,default history and other factors.Adequate insurance coverage is maintained for trade receivables related to trading partners situated in high risk c

325、ountries.Credit risk also can arise from transactions with financial institutions including transactions in financial instruments such as cash and cash equivalents,deposits,and derivative instruments.To minimize such risk,the Company transacts only with banks that have a strong international credit

326、rating(S&P A and above),and new transactions with financial institutions which the Company does not have an existing relationship are subject to the completion of risk assessments prior to commencement of transactions.The Company generally enters into financial agreements without restrictions,such a

327、s debt ratio covenants,provision of collateral and/or repayment of loans/borrowings,and otherwise separate approvals are obtained.The carrying amount of the Companys financial assets is net of impairment losses and the Companys maximum exposure to credit risk is equal to the carrying amount of its f

328、inancial assets.(C)Liquidity risk Liquidity risk is the risk that a company will have difficulty in meeting all its financial obligations.The Companys main sources of liquidity are cash generated from operations and funds raised from the capital markets and financial institutions,while its main liqu

329、idity needs are for investments in production,research and development,working capital and dividends.Due to the nature of the Companys business,which involves large investments,maintaining adequate levels of liquidity is critical.The Company maintains and manages adequate liquidity through forecasti

330、ng periodic cash flows,estimating required cash levels,and monitoring inflows and outflows of cash.The Company has established Cash Pooling by region to respond effectively to liquidity risks,even when individual companies within a region are underfunded.Cash Pooling is a system that shares funds be

331、tween underfunded and overfunded companies,minimizing the liquidity risk of individual companies,easing the burden of fund management,and reducing financial costs.In addition,the Company has secured credit lines for its overseas subsidiaries by means of payment guarantees from the head office in the

332、 event of large liquidity needs,and,at the end of the period,the Company had investment grade ratings of Aa2 from Moodys and AA-from S&P,enabling it to raise funds on the capital market in a timely manner.(D)Capital risk management The purpose of capital management is to maintain a sound capital str

333、ucture and protect the Companys ability to continue to provide benefits to its shareholders and stakeholders as a going concern.The Company monitors capital on the basis of credit ratings and debt ratio.The debt ratios as of March 31,2024 and December 31,2023 are as follows:(In millions of Korean won)March 31,2024 December 31,2023 Total liabilities 98,983,688 92,228,115 Total equity 371,916,124 36