[Concall] Samsung Electronics CFO "Management Situation Not Easy... Resolution Possible in Short Time" (Comprehensive)

Park Soon-chul, the newly appointed Chief Financial Officer (CFO) of Samsung Electronics, addressed the performance downturn by stating, "Based on a diverse business portfolio and the competitiveness of key businesses, the current issues can gradually recover," and added, "We will definitely resolve them within a short period."

Prior to the earnings conference call on the morning of the day, CFO Park said, "All executives, including myself, are aware that the current management situation is challenging, and we are doing our best to overcome it."

CFO Park, who comes from Samsung Electronics' Future Strategy Office, was appointed CFO in the year-end personnel reshuffle last year and appeared for the first time at an earnings conference call on this day. Industry insiders consider it unusual for the CFO to personally explain the management status during Samsung Electronics' earnings conference calls. The last time a Samsung Electronics CFO participated in an earnings conference call was in January 2021, when then-CFO Choi Yoon-ho officially announced preparations for mergers and acquisitions (M&A) while explaining the three-year shareholder return policy.

At the event, CFO Park explained, "Samsung Electronics has a diverse business portfolio, and due to the characteristics of each business, there is certainly volatility according to the business cycle." He added, "Looking at Samsung Electronics' growth history, it has always grown during crises based on fundamental competitiveness and technological capabilities," emphasizing, "We believe the current issue is also an opportunity for growth toward a new leap."

Park Soon-chul, new CFO of Samsung Electronics, provided by Samsung Electronics

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In November last year, Samsung Electronics announced a share repurchase program worth approximately 10 trillion won to enhance shareholder value, and subsequently completed the acquisition and cancellation of 3 trillion won worth of treasury shares, purchasing 89.3% each of common and preferred shares. Regarding this, CFO Park explained, "We always prioritize enhancing shareholder value and announced a policy at the beginning of 2024 to return 50% of the three-year free cash flow to shareholders. Considering recent market concerns that our company's value has been excessively undervalued, the board of directors and management carefully discussed and decided on the share repurchase."

He continued, "We plan to repurchase treasury shares worth 10 trillion won over one year, with a priority plan to acquire and cancel 3 trillion won worth of treasury shares within three months," adding, "Regarding the timing and method of executing the remaining 7 trillion won and whether it will be included within the existing shareholder return policy of 50% of free cash flow, we will continuously review ways to contribute to enhancing shareholder value and share specifics once finalized."

He stated, "The company and management are fully aware of the high interest in the value-up (corporate value enhancement) program plan," and emphasized, "Although uncertain business conditions are expected to continue in 2025, we will do our utmost to announce a value-up plan, including the company's growth plan and profitability improvement measures, as soon as possible."

He concluded, "We ask investors to trust and support the company's efforts," and said, "As CFO, I will continue to strengthen trust in the company through ongoing communication with investors."

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