4Q 2018 Pre-Earnings Guidance

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) on January 8, 2019 announced its earnings guidance for the fourth quarter of 2018.

The above estimates are based on K-IFRS. Please note that Korean disclosure regulations do not allow earnings estimates to be offered as a range. To comply with such regulations, the above figures represent the median of the estimate ranges provided below.

※ The above information is provided for the convenience of our investors before the external audit on the financial results of our headquarters, subsidiaries and affiliates is completed. The statements contained herein include statements of future expectations and other forward-looking statements that are based on management's current views, expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words "may", "will", "should", "expects", "plans", "intends", "anticipates", "believes", "estimates", "predicts", "potential", or "continue" and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in Samsung Electronics Co., Ltd's ("SEC") core businesses and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events, (iii) currency exchange rates, (iv) changing levels of competition, (v) changes in laws and regulations, (vi) general competitive factors, in each case on a local, regional, national and/or global basis. The matters discussed herein may also be affected by risks and uncertainties described from time to time in SEC's filings with the Korea Stock Exchange (KRX), FSS (Korea), and Samsung Website. Further information about risks and uncertainties affecting Samsung Electronics Co., Ltd. is included throughout our most recent annual and interim reports, as well as our most recent earnings release, which are available on https://www.samsung.com/global/ir. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of SEC may vary materially from those described in the relevant forward-looking statement, and all such statements are subject to certain risks and uncertainties that could cause our actual results to be materially different from those expressed herein. The company assumes no obligation to update any forward-looking statement.

「SEC 4Q18 Pre-Earnings Guidance」Reference Material

< 4Q18 Earnings >

□ Amid mounting macro uncertainties, overall earnings decreased sharply q-q due to: 1) lackluster demand in the memory business; and 2) intensifying competition in the smartphone business.

- Under weak seasonality, memory earnings fell significantly Q-Q due to weaker-than-expected demand amid inventory adjustments at data-center customers, resulting in a decline in shipments and a greater-than-expected decrease in ASP.

- Amid a stagnant and fiercely competitive market, mobile profits declined due to increased marketing expenses under strong seasonality and a flat smartphone sales volume.

- A non-recurring expense also affected results.

< Business Outlook >

□ We expect earnings to remain subdued in the first quarter of 2019 due to difficult conditions for the memory business but strengthen in the second half on expected improvements in the memory market.

- Memory: The supply and demand situation is likely to improve from the second half of 2019 on the back of rising adoption of new CPUs and launches of new smartphone products under strong seasonality.

 In the mid to long term, supply and demand dynamics are expected to remain stable as rising technological requirements and capital intensity increase difficulties of expanding supply.

- Display: OLED panels are expected to keep increasing penetration in the smartphone market and we aim to expand their applications into other areas.

- Mobile: We will fortify our leadership via technological innovations, which include foldable and 5G models, while also strengthening specifications of our entry-level to mid-range devices.

□ We are focusing on new business areas with high potential, such as 5G and AI, and new developments in automotive electrification by strengthening our competitiveness via: 1) leveraging our component technology in products such as chipsets and OLED panels; 2) delivering innovative form factors; and 3) leading the development of 5G.

※ This document contains forward-looking statements that relate to future events. Actual results may

be materially different from those due to changes in the macro-economic situation, market

conditions, etc.