SAMSUNG ELECTRONICS Co., Ltd. 2021 Half-year Business Report For the quarter ended June 30, 2021 Certain statements in the document, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in our financial reports available on our website. See, also, 『Note on Forward-Looking Statements』 in preamble of 『II. Businesses Overview』. Samsung Electronics Business Report 1 / 291 Table of Contents Certification ........................................................................................................................................................................... 4 I. Corporate Overview ........................................................................................................................................................... 5 1. Overview........................................................................................................................................................................ 5 2. Company history .......................................................................................................................................................... 9 3. Changes in paid-in capital ......................................................................................................................................... 12 4. Stock information ....................................................................................................................................................... 12 5. Changes to Articles of Incorporation ........................................................................................................................ 14 II. Businesses Overview ..................................................................................................................................................... 15 1. Overview ..................................................................................................................................................................... 15 2. Key products and services ........................................................................................................................................ 16 3. Production materials and production facilities ....................................................................................................... 17 4. Sales and long-term contracts .................................................................................................................................. 23 5. Risk management and derivative trading ................................................................................................................ 26 6. Major contracts and research and development activities ..................................................................................... 29 7. Other information ....................................................................................................................................................... 34 III. Financial Affairs .............................................................................................................................................................. 45 1. Financial statements .................................................................................................................................................. 45 2. Consolidated financial statements............................................................................................................................ 47 3. Notes to Consolidated Financial Statements ........................................................................................................... 58 4. Non-Consolidated financial statements ................................................................................................................. 106 5. Notes to Non-Consolidated Financial Statements ................................................................................................. 117 6. Dividends .................................................................................................................................................................. 154 7. Matters about financing through the issuance of securities ................................................................................ 156 8. Other financial information ...................................................................................................................................... 163 IV. Management Discussion and Analysis ....................................................................................................................... 172 V. Auditor’s Report ............................................................................................................................................................ 173 1. Introduction ............................................................................................................................................................... 173 2. Change of Independent Auditor .............................................................................................................................. 175 3. Regarding Internal Control ...................................................................................................................................... 176 VI. Corporate Governance ................................................................................................................................................ 177 1. Board of Directors .................................................................................................................................................... 177 2. Audit System ............................................................................................................................................................. 188 3. General Meeting of Shareholders ........................................................................................................................... 193 VII. Information on Shareholders ..................................................................................................................................... 197 1. Ownership of shares by the major shareholder(s) and related parties ............................................................... 197 2. Matters related to the major shareholder ............................................................................................................... 198 3. Change of the major shareholder ........................................................................................................................... 201 4. Ownership of shares ................................................................................................................................................ 202 5. Stock price and stock transactions ........................................................................................................................ 203 VIII. Executives and Employees ....................................................................................................................................... 205 1. Executives and employees...................................................................................................................................... 205 2. Remuneration for directors ..................................................................................................................................... 208 IX. Affiliates and Subsidiaries .......................................................................................................................................... 217 Samsung Electronics Business Report 2 / 291 X. Transactions with affiliates and subsidiaries ............................................................................................................. 237 1. Credit offerings for affiliates and subsidiaries....................................................................................................... 237 2. Acquisitions and disposals of assets with affiliates and subsidiaries ................................................................ 238 3. Business Transactions with Affiliates and Subsidiaries ....................................................................................... 239 4. Transactions with Stakeholders other than Affiliates and Subsidiaries .............................................................. 239 XI. Other Information ......................................................................................................................................................... 240 1. Changes in public disclosure .................................................................................................................................. 240 2. Contingent liabilities ................................................................................................................................................ 240 3. Sanctions and others ..............................................................................................................................................