Announcement regarding enhancing shareholder value

Announcement regarding strategic actions to enhance long-term shareholder value

Samsung Electronics Co., Ltd. (KS005930, KS005935, SMSN, SMSD) ("SEC") announced today that its Board of Directors has authorized the following strategic actions to enhance long-term shareholder value. The details are as follows:

□ Strategic actions to enhance long-term shareholder value

 ① Set the percentage of free cash flow ("FCF") in 2016 and 2017 allocated to shareholder returns at 50%.

 ② Increase 2016 total dividends.

- Total dividend amount: approximately KRW 4.0 trillion

 ③ The remaining portion of the 50% of free cash flow after the dividend payouts, plus KRW 0.8 trillion from 2015, will be used to repurchase shares. The repurchased shares will then be retired.

 ④ Initiate quarterly dividend payments starting in the first quarter of 2017.

□ Review the company structure to create an optimal environment for sustaining growth and enhancing

shareholder value

- We expect that the review process, including possibly conducting a review of the holding company structure, will

require approximately 6 months.