Analyst Day good start for Samsung; It was only the second conference for analysts in Samsung’s history ㅡ the first one was held in 2005

2013-11-08 16:44

Analyst Day good start for Samsung

By Kim Yoo-chul
Samsung Electronics is changing. 
It is secretive, a complaint frequently made by financial and stock market analysts. Plus, the tech world is wondering whether it will continue its sustainable growth after the smartphone market reaches a saturation point.  Then, it opened up with Samsung Analyst Day this week. Samsung’s key executives held sessions to explain the firm’s growth strategies. It was only the second conference for analysts in Samsung’s history ㅡ the first one was held in 2005. Samsung thinks its way is the best way so its leaders had no reason to speak out.But given its explosive growth, it cannot avoid outside scrutiny, whetting the appetite for innovation.
“The main purpose of the conference was to show that we were willing to communicate better. We waited for the right timing to speak to the industry,” an official said Friday.
The meeting by and large was seen by many as an effort to lift its stock performance. 
The firm wanted to enhance communication with shareholders and lay out its long-term vision. 
One of the major issues at the meeting was its dividend policy. 
As its corporate growth slows coupled with its cash pile at unprecedented levels ㅡ 50 trillion won ㅡ the question of how to use them to boost its corporate values is drawing keen attention.
Samsung’s Chief Financial Officer Lee Sang-hoon said the firm is poised to double its cash dividends. 
Asked about the possibility of a listing of its stocks in the United States in the form of American Depository Receipts (ADR), Lee said the listing will be possible if conditions are met.
Some Samsung officials contacted by The Korea Times said that the U.S. listing will help it attract more foreign interests. 
Vice Chairman Kwon Oh-hyun admitted that it needs to work on software, where it is currently heavily investing to transform itself into a solutions provider from a manufacturing firm.
Renderings of its next big items, such as foldable smartphones and flexible displays, were shown to analysts. 
Samsung said these so-called “game-changing” technologies will be commercialized in two years. It also confirmed that it is pursuing further external growth by acquiring firms.
Sources say Samsung prefers “Google style” expansion centered on small-sized mergers and acquisitions (M&As). It is interested in buying patents, marketing and human resources in target companies.
“Samsung was passive in pursuing M&A deals. But we will become aggressive. Therefore, I don’t think our current cash-holdings are too high,” said the CFO Lee.
Vice Chairman Kwon insisted that its edge in “vertical alignment” between components and parts will enable it create over $400 billion in annual sales in 2020.
Its plan to become the world’s top supplier of tablets looks impressive. 
But what’s equally interesting is that Samsung is also eager to develop components.
Sharpening components-related technologies is something that really matters to it because of its plan to share confidential data with software giants such as Google and others to develop innovative products and secure advanced chips and flat-screens.

yckim@koreatimes.co.kr,