Samsung Electronics will push for more mergers and acquisitions and increase its presence in health care and smart car industries for future growth, top executives said on Wednesday.
The world tech giant held Samsung Analyst Day 2013 to share its future mid- and long-term strategies with around 400 investors, analysts and officials from the IT industry -- the first forum of its kind in eight years.
“Convergence (among technologies in different industries) is occurring right now, but not enough. We can create new industries, for example, health care and smart cars,” said Kwon Oh-hyun, vice chairman and CEO of the electronics firm.
“(By converging Samsung’s information technology with cars) there are a lot (of opportunities) for us to supply to our customers.”
Samsung SDI, a battery maker and an affiliate of Samsung Group, has invested in electric car batteries since 2008. It has successfully developed the products and is supplying them to BMW and Chrysler’s Fiat.
Samsung’s rival Apple also plans to launch an operating system, called “iOS in the Car,” for vehicles.
“We were conservative, but we have changed our minds. We will aggressively acquire some companies as long as they provide nice technologies,” Kwon added.
The vice chairman noted, “Even though our health care business is small, within the coming decade we want to be a strong player in the area,” hinting that the electronics firm will roll out more advanced, small and easy-to-handle equipment such as high-resolution CT and MRI scanners.
“Our management view is that our product valuation multiple does not truly reflect our earnings growth and leadership position in the IT industry,” said Lee Sang-hoon, CFO of the firm.
“Going forward, we will put more emphasis on direct shareholder returns while maintaining our strategy of growth.”
Lee also said Samsung would review the firm’s shareholder return policy on a three-year basis to reflect changes in business conditions. He added that this year’s dividend payout would be around 1 percent of the share price, up from 0.5 percent in 2012.
Complaints from investors have mounted over the firm’s low dividends given its cash pile of around 52.7 trillion won.
Other executives attending the meeting pledged to maintain its leadership in areas where Samsung has been traditionally strong.
“Samsung will rise to one of the top five brands in the world by 2015 through reinforcing its human resource competence, investment and technological innovation,” said CFO Lee.
“It will also spare no effort to seek more M&As for that,” he added.
The electronics firm ranked eighth in the Best Global Brands 2013 Report by Interbrand, the world’s leading brand consulting institute.
On the smartphone side, Samsung’s IT and mobile communications CEO Shin Jong-kyun said, “By continuously seeking future growth momentum, Samsung will lead the smartphone market.”
He expected the entire smartphone market will see record shipments at 1 billion units this year, and a 10 percent annual growth rate until 2017.
Sustainable growth, technology innovation and stable profit are the mobile maker’s three biggest goals, according to Shin.
“The flagship Galaxy lineups will play an important role in maintaining the leadership in the market,” CEO Shin said.
Meanwhile, Yoon Boo-keun, president and CEO of Samsung’s consumer electronics, emphasized that there is much room for growth in the TV market as demand for premium products such as ultra-HD TVs, curved OLED TVs and smart TVs are on the rise, not only in developed countries but also in emerging nations.
He said Samsung, equipped with core competence for picture quality and innovative design, will be able to “respond to any challenges” by rivals and solidify its No. 1 status in the market.
Much attention was paid to the event, convened eight years after the one in 2005, since it was held amid rising concerns that the electronics behemoth could falter down the road due to market saturation and cutthroat competition with its rivals, especially Chinese firms including Huawei.
By Kim Young-won (
wone0102@heraldcorp.com)
