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2019 Annual Report 2019 ANNUAL REPORT 1 2019 ANNUAL REPORT CONTENTS 2019 ANNUAL REPORT LETTER FROM THE PRESIDENT 3 SAMSUNG IN SPAIN 4 Milestones 4 Results 5 SAMSUNG IN THE WORLD 6 OUR PHILOSOPHY 8 SUSTAINABLE DEVELOPMENT-ORIENTED 10 DRIVING... 14 The Economy 14 Innovation 22 Society: Technology With Purpose 30 CHALLENGES FOR THE FUTURE 38 2 2019 ANNUAL REPORT LETTER FROM THE PRESIDENT LETTER FROM We’ve developed flexible displays and continue to be committed to 5G, Artificial Intelligence and IoT in addition to 8K technology which positions us as THE PRESIDENT leaders in innovation Greetings, nowadays, there has been ecosystem, not to mention how cultural institutions such as the sustained growth over the safety is the main concern Prado Museum, the National Samsung Electronics, the last three years in these three and responsibility with all Archaeological Museum company I preside over in Spain indicators. Our commitment to our developments. The latest and the Royal Theatre with and Portugal, has again issued contribute beyond our income example is our commitment to progress that proves just its Annual Report concerning statement not only continues 8K for the screens of the future how technology can make a our business activities in 2019. to be strong, it’s increasing and which in our case are already a difference. What’s more, we This is the third report we’ve this is because of the efforts reality in many homes. continue to support public published in Spain and we’re and enthusiasm shown by all of schools all over Spain by quite proud because it helps us who are a part of Samsung. Likewise and beyond economic offering our technology and demonstrate our commitment and financial indicators, knowledge to change how to the country, to innovation, to I’d like to highlight a few of we’re continuing to develop teaching is done. our users and consumers and, the milestones reached by our Technology with Purpose in short, to society at large. Samsung in 2019. First off, program. It’s a project we’re In summary, we shall flexible displays have come to also immensely proud of keep on working at As I said, this is the third year stay. This new development, and which expresses our Samsung Electronics we’re providing not only a which has involved immense commitment to society in areas to meet everyone’s summary of our results as a investment as far as time such as education, culture, expectations all while company, our retail offering and resources, is opening accessibility and employability. being faithful to our and the progress we’ve made up a whole new world of I’d like to point out that, in 2019, motto: Inspire the in innovation, but also an image possibilities for industry and, we began a project known as World, Create of the impact of our activities once again, our company is DesArrolladoras to train 1,000 the Future. as concerns their contributions proving to be the leader and women in the field of ICT in to the country’s wealth, reference in innovation. We’ve order to bring STEM subjects Warm regards, employment and revenue maintained our commitment closer to a group whose raising through taxes. Despite to innovative technologies like contribution to improving the competitiveness of the 5G, Artificial Intelligence and IoT society is as necessary as it is Hoon Chung President of market in which we operate which are just a natural part beneficial. We also continued Samsung Electronics and the demands we’re facing of our product and service collaborating with major Iberia, SAU 3 2019 ANNUAL REPORT SAMSUNG IN SPAIN SAMSUNG BUSINESS COMPANY IN MOBILITY ACTIVITY ♦ Galaxy Fold, the first mobile device with a ♦ An 8% improvement in the results folding display. in Spain. ♦ Presentation of the Galaxy S10 and Note10, ♦ An increased impact on the economy, SPAIN models, which were certified by the employment and tax revenue by Spanish National Cryptologic Centre. Samsung in Spain. ♦ Agreement with Iberia to digitize 2019 Milestones TV airport assistance. ♦ All-new HDR10+ technology (High Dynamic ♦ ‘Day Off for Check-Ups’ initiative. Range) and the production of the first specific content. CULTURE ♦ The new Vodafone app for Smart TV. ♦ First Samsung productions in 8K: a political ♦ The Prado Museum, Royal Theatre debate and motorcycle racing with the and National Archaeological Museum HRC team. begin using Bixby. ♦ Presentation of the ‘MAN Aula Virtual’ HOME APPLIANCES virtual classroom app with the ♦ The launch of the Dual Flex Zone Plus8™ National Archaeological Museum. hob, which includes a decorative hood. ♦ Collaboration with the ‘Impressionists ♦ Family Hub™ arrives in Spain. and Photography’ exhibit at the Thyssen ♦ Dual Cook Flex™ oven. Bornemisza Museum. ♦ 'My Opera Player' for Samsung Smart TV VISUAL DISPLAY with the Royal Theatre. ♦ The launch of The Wall 8K. ♦ First Samsung Onyx Cinema LED screen in Spain. SERVICES ♦ The second generation of the Flip chart. SAMSUNG PAY SEMICONDUCTORS ♦ Edenred, BBVA, Kutxabank, Cajasur, ♦ The launch of Exynos i T100, a new Internet Liberbank, Unicaja, Ibercaja, Cecabank, of Things solution which features a Caja Ontiyent, Deutsche Bank and processor and memory in a single chip. Bankinter join this service. ♦ Growth of 130% in consumers and 284% in transactions. 4 2019 ANNUAL REPORT SAMSUNG IN SPAIN 2019 Financial Results and Human Resources 348 employees and % 100 permanent contracts Turnover (revenue) 1,735,685,000 Euros Profit for the year 28,153,000 Key Results 2019 2018 2019 vs 2018 Euros Turnover (thousands of Euros) 1,735,685 1,706,457 +1.7% Operating income (thousands of Euros) 33,416 32,486 +2.9% Operating profit Profit for the year (thousands of Euros) 28,153 26,057 +8.0% 33,416,000 Workforce (nº) 348 358 -2.7% Euros MEMORIA ANUAL 2018 ANUAL MEMORIA 5 2019 ANNUAL REPORT 5 SAMSUNG IN THE WORLD SAMSUNG IN THE Global turnover (revenue) WORLD 176.34 billion euros Presence in 74 countries 309,630 2,389 employees suppliers R&D Expenditure: 14,337 million Euros 216 worksites throughout the world MEMORIA ANUAL 2018 ANUAL MEMORIA ♦ 37 R&D ♦ 7 design 6 2019 ANNUAL REPORT 6 WE’RE DRIVING SUSTAINABLE DEVELOPMENT THE ECONOMY INNOVATION SOCIETY 7 2019 ANNUAL REPORT OUR PHILOSOPHY OUR Everything we do, every decision we make, is governed by our values and PHILOSOPHY our code of ethics as a guarantee for being able to react in the best possible way to changes that occur in global business as well as learning from a social perspective. This is what helps generate trust and value among all our stakeholders in order to continue moving forward with our goal of becoming one of the most ethical companies in the world. WE AIM TO BE A COMPANY THAT IS ♦ Cherished ♦ Innovative ♦ Admired At Samsung, we have a remarkably simple business WE’LL GET THERE WITH philosophy: dedicating our talent and ♦ Creativity ♦ Alliances technology to developing the ♦ A great team best products and services in order to improve society 8 2019 ANNUAL REPORT Mission To inspire the world with innovative technologies, products and designs which enhance people’s quality of life and contribute to a socially sustainable and responsible future. As a way to achieve this, we’ve developed our VISION 2020 "INSPIRE THE WORLD, CREATE THE FUTURE" Our commitment to create a better world full of richer digital experiences, through innovative technology and products. All of this with our Values continuously present: PEOPLE EXCELLENCE CHANGE INTEGRITY PROSPERITY a company is all about We are driven by a We’re focused on Ethics is the foundation We are committed its people. We offer commitment and the future to be able for our business and to being a socially our human resources passion for excellence to take our company we operate on honesty, and environmentally opportunities so they to develop the best to long-term success. respect and responsible corporate can reach their products and services on transparency. citizen all over the world. full potential. the market. 9 2019 ANNUAL REPORT SDG We’d like to be acknowledged for our SUSTAINABLE products and services but also for their positive impact on societal development. To this end, we view sustainability as the tool for creating integrated values in the economy, DEVELOPMENT society and the environment throughout our -ORIENTED value chain. SUSTAINABILITY MANAGEMENT SYSTEM ECONOMIC VALUE Getting the most out of all the benefits and values for stakeholders (innovation in products and services) SOCIAL VALUE Contributing+ to a sustainable society: the achievement of the United Nations Sustainable Development Goals 10 2019 ANNUAL REPORT SDG Samsung and In 2015, the United Nations adopted the Agenda 2030 on Sustainable Development which includes 17 goals (SDGs) with 169 targets on which all countries in the world can work to improve the planet and, in short, everyone’s lives without leaving anyone behind. In a view to contributing to this sustainable development, Samsung has identified the SDGs which are particularly connected to our business and continuously studies new opportunities to continue to help make this world a better place. ‘SAMSUNG GLOBAL GOALS’ APP With the launch of our all-new Galaxy Note 10 device, we presented the “Samsung Global goals” app in collaboration with the United Nations Development Programme (UNDP). The aim is to spread awareness through knowledge and help raise funds for UNDP. The initiative was completed with a special edition of Samsung accessories with a part of the proceeds from their sale being donated to the Programme in support of the SDGs. 11 2019 ANNUAL REPORT SDG Samsung and the AIM Reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and wellbeing. HOW WE CONTRIBUTE ♦ Spreading awareness for diseases like cancer.
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