AA 08-3 Global Analysis LO A1 Access Samsung's financial statements in Appendix A. Required 1. Identify and enter the 2016 and 2017 sales (in W millions) into a table for Samsung. 2. Assume that at the end of 2016 we estimate Samsung's 2017 sales will increase by 20% from its 2016 sales. What is Samsung's 2017 estimated sales? 3. Are the estimated 2017 sales from part 2 higher or lower than Samsung's actual 2017 sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Identify and enter the 2016 and 2017 sales (in W millions) into a table for Samsung. (Enter your answers in millions of Korean wons.) 2017 2016 Samsung's sales w w AA 08-3 Global Analysis LO A1 Access Samsung's financial statements in Appendix A. Required 1. Identify and enter the 2016 and 2017 sales (in W millions) into a table for Samsung. 2. Assume that at the end of 2016 we estimate Samsung's 2017 sales will increase by 20% from its 2016 sales. What is Samsung's 2017 estimated sales? 3. Are the estimated 2017 sales from part 2 higher or lower than Samsung's actual 2017 sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that at the end of 2016 we estimate Samsung's 2017 sales will increase by 20% from its 2016 sales. What is Samsung's 2017 estimated sales? (Enter your answer in millions of Korean wons.) 2017 Samsung's estimated sales AA 08-3 Global Analysis LO A1 Access Samsung's financial statements in Appendix A. Required 1. Identify and enter the 2016 and 2017 sales (in W millions) into a table for Samsung. 2. Assume that at the end of 2016 we estimate Samsung's 2017 sales will increase by 20% from its 2016 sales. What is Samsung's 2017 estimated sales? 3. Are the estimated 2017 sales from part 2 higher or lower than Samsung's actual 2017 sales? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Are the estimated 2017 sales from part 2 higher or lower than Samsung's actual 2017 sales? Are the estimated 2017 sales from part 2 higher or lower than Samsung's actual 2017 sales? Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (In millions of Korean won) December 31, 2017 December 31, 2016 Assets KRW KRW Current assets Cash and cash equivalents Short-term financial instruments Short-term available-for-sale financial assets Trade receivables Non-trade receivables Advance payments Prepaid expenses Inventories Other current assets Assets held-for-sale 30,545,130 49,447,696 3,191,375 27,695,995 4,108,961 1,753,673 3,835,219 24,983,355 1,421,060 32,111,442 52,432,411 3,638,460 24,279,211 3,521,197 1,439,938 3,502,083 18,353,503 1,315,653 835,806 Total current assets 146,982,464 141,429,704 6,804,276 Non-current assets Long-term available-for-sale financial assets Held-to-maturity financial assets Investment in associates and joint ventures Property, plant and equipment Intangible assets Long-term prepaid expenses Net defined benefit assets Deferred income tax assets 7,752,180 106,751 6,802,351 111,665,648 14,760,483 3,434,375 825,892 5,061,687 4,360,259 5,837,884 91,473,041 5,344,020 3,834,831 557,091 5,321,450 1,572,027 262,174,324 Other non-current assets 301,752,090 Total assets Liabilities and Equity Current liabilities Trade payables Short-term borrowings Other payables Advances received Withholdings Accrued expenses Income tax payable Current portion of long-term liabilities Provisions Other current liabilities Liabilities held-for-sale 9,083,907 15,767,619 13,899,633 1,249,174 793,582 13,996,273 7,408,348 278,619 4,294,820 403,139 6,485,039 12,746,789 11,525,910 1,358,878 685,028 12,527,300 2,837,353 1,232,817 4,597.417 351,176 356,388 67,175,114 54,704,095 Total current liabilities Non-current liabilities Debentures Long-term borrowings Long-term other payables Net defined benefit liabilities 953,361 1,814,446 2,043,729 389,922 11,710,781 464,324 2,708,985 58,542 1,244,238 3,317,054 173,656 7,293,514 358,126 2,062,066 Deferred income tax liabilities Provisions Other non-current liabilities Total liabilities 87,260,662 69,211,291 Equity attributable to owners of the parent Preference shares 119,467 119,467 Ordinary shares 778,047 778,047 Share premium 4,403,893 4,403,893 Retained earnings 215,811,200 193,086,317 Other components of equity (13,899,191) (11,934,586) Accumulated other comprehensive income attributable to assets held for-sale (28,810) 207,213,416 186,424,328 Non-controlling interests 7,278,012 6,538,705 Total equity 214,491,428 192,963,033 Total liabilities and equity 301,752,090 262,174,324 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF PROFIT OR LOSS For the year ended December 31 2017 2016 (In millions of Korean won) KRW KRW Revenue 239,575,376 201,866,745 Cost of sales 129,290,661 120,277,715 110,284,715 81,589,030 56,639,677 52,348,358 29,240,672 53,645,038 Gross profit Selling and administrative expenses Operating profit Other non-operating income Other non-operating expense Share of profit of associates and joint ventures 3,010,657 3,238,261 1,419,648 2,463,814 201,442 19,501 Financial income 9,737,391 11,385,645 8,978,913 10,706,613 Financial expense Profit before income tax 56,195,967 14,009,220 Income tax expense 30,713,652 7,987,560 22,726,092 Profit for the period 42,186,747 41,344,569 22,415,655 Profit attributable to owners of the parent Profit attributable to non-controlling interests 842,178 310,437 Earnings per share -Basic 299,868 157,967 -Diluted 299,868 157,967 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME For the year ended December 31 2017 2016 KRW KRW (In millions of Korean won) Profit for the period 42,186,747 22,726,092 Other comprehensive income (loss) Items not to be reclassified to profit or loss subsequently: Remeasurement of net defined benefit liabilities, net of tax 414,247 963,602 (6,347) 50,438 511,207 (49,256) (23,839) (130,337) Shares of other comprehensive income (loss) of associates and joint ventures, net of tax Items to be reclassified to profit or loss subsequently: Changes in value of available-for-sale financial assets, net of tax Share of other comprehensive income (loss) of associates and joint ventures, net of tax Foreign currency translation, net of tax Gain (loss) on valuation of derivatives Other comprehensive income (loss) for the period, net of tax Total comprehensive income for the period (6,334,987) 1,131,536 (37,121) (5,502,257) 36,684,490 1,991,400 24,717,492 Comprehensive income attributable to: 35,887,505 Owners of the parent Non-controlling interests 24,310,814 406,678 796,985 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. TO Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Accumulated other comprehensive income Equity attributable to attributable Non Share Retained Other Components of equity to owners controlling Preference Ordinary shares shares assets held- for-sale In millions of Korean won premium earnings of the parent interests Total 119,467 778,047 4,403,893 185,132,014 (17,580,451) 23,797 172,876,767 6,183,038 179,059,805 22,415,655 22,415,655 310,437 22,726,092 Balance as at January 1, 2016 Profit for the period Changes in value of available-for-sale financial assets, net of tax - - - (87,706) (23,797) (111,503) 87,664 (23,839) Share of other comprehensive income (loss) of associates and joint ventures, net of tax (80,146) 212 (79,934) 35 TI - || (79,899) 1,131,536 Foreign currency translation, net of tax 1,160,316 1,160,316 (28,780) Remeasurement of net defined benefit liabilities, net of tax - 926,280 926,280 37,322 963,602 Classified as held-for-sale 29,022 (29,022) Total comprehensive income (loss) 22,415,655 1,947,766 (52,607) 24,310,814 406,678 24,717,492 Dividends (3,061,361) (3,061,361) (65,161) (3,126,522) 12.272 12,235 | | || | |||||| (37) Capital transaction under common control Changes in consolidated entities (37) IIIIIIIII 1 TILL 1,790 1,790 Acquisition of treasury stock (7,707,938) (7,707,938) (7,707,938) (11,399,991) 11,399,991 Retirement of treasury stock Others 6,083 6,083 88 6,171 Total transactions with owners (14,461,352) 3,698,099 (10,763,253) (51,011) (10,814,264) Balance as at December 31, 2016 119,467 (28,810) 186,424,328 778,047 4,403,893 193,086,317 (11,934,586) 41,344,569 6,538,705 192,963,033 842,178 42,186,747 Profit for the period 41,344,569 Changes in value of available-for-sale financial assets, net of tax - - 489,150 489,150 22,057 511,207 Share of other comprehensive income (loss) of associates and joint ventures, net of tax (54,300) (54,300) (1,303) (55,603) || 11 Foreign currency translation, net of tax (6,289,926) 28,810 (6,261,116) (73,871) (6,334,987) Remeasurement of net defined benefit liabilities, net of tax IL 406,323 406,323 7,924 414,247 Gain (loss) on valuation of derivatives (37,121) (37,121) (37,121) 41,344,569 (5,485,874) 28,810 35,887,505 796,985 36,684,490 Total comprehensive income (loss) Dividends IIIIIIIIII|| (6,747,123) (6,747,123) (64,277) (6,811,400) III | | (2,992) (2,992) 15,114 12,122 Capital transaction under common control Changes in consolidated entities LLLLL - (2,699) (2,699) (9,352) (12,051) (8,350,424) || (8,350,424) Acquisition of treasury stock Retirement of treasury stock (8,350,424) (11,872,563) 11,872,563 Others 4,821 4,821 837 5,658 Total transactions with owners (18,619,686) 3,521,269 (15,098,417) (57,678) (15,156,095) Balance as at December 31, 2017 119,467 778,047 4,403,893 215,811,200 (13,899,191) 207,213,416 7,278,012 214,491,428 The above consolidated statement of financial position should be read in conjunction with the accompanying notes. Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS For the year ended December 31 2017 2016 KRW KRW (In millions of Korean won) Cash flows from operating activities Profit for the period 42,186,747 22,726,092 36,211,232 30,754,471 Adjustments Changes in assets and liabilities arising from operating activities Cash generated from operations (10,620,547) 67,777,432 (1,180,953) 52,299,610 1,405,085 Interest received 1,581,117 Interest paid (542,715) 173,305 (443,838) 256,851 Dividends received (6,827,098) (6,132,064) 62,162,041 47,385,644 387,627 (6,780,610) 499,856 3,010,003 (2,129,551) 789,862 1,750,221 (1,741,547) Income tax paid Net cash inflow from operating activities Cash flows from investing activities Net decrease increase) in short-term financial instruments Disposal of short-term available-for-sale financial assets Acquisition of short-term available-for-sale financial assets Disposal of long-term financial instruments Acquisition of long-term financial instruments Disposal of long-term available-for-sale financial assets Acquisition of long-term available-for-sale financial assets Acquisition of held-to-maturity financial assets Disposal of investment in associates and joint ventures Acquisition of investment in associates and joint ventures Disposal of property, plant and equipment Acquisition of property, plant and equipment Disposal of intangible assets Acquisition of intangible assets (1,079,355) 191,826 (358,497) 2,010,356 (1,498,148) (106,751) 355,926 2,280,203 (25,293) 308,354 (42,792,234) (84,306) 270,874 (24,142,973) 6,944 (1,047,668) (622,050) 733 Cash outflow from business combinations Cash inflow from business transfers (983,740) (8,754,268) 1,248,834 (28,455) (49,385,216) Others 19,936 Net cash outflow from investing activities (29,658,675) Cash flows from financing activities 2,730,676 1,351,037 (8,350,424) 998,311 (7,707,938) 1,041,743 (1,140,803) (252,846) Net increase in short-term borrowings Acquisition of treasury stock Proceeds from long-term borrowings and debentures Repayment of long-term borrowings and debentures Dividends paid Net increase in non-controlling interests Net cash outflow from financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents (6,804,297) 5,670 (3,114,742) 13,232 (12,560,867) (8,669,514) 417,243 (1,782,270) (1,566,312) 9,474,698 Beginning of the period 32,111,442 22,636,744 32,111,442 End of the period 30,545,130 The above consolidated statements of cash flows should be read in conjunction with the accompanying notes