Confidential 2012 Smart TV Communication Strategy Confidential Contents

Confidential 2012 Smart TV > Communication Strategy

Confidential Contents I. Market Overview & Business Objectives II. Smart TV Communication Strategy

Confidential MARKET OVERVIEW : M/S PERFORMANCE Samsung as the market leader continues its dominant position in both Smart TV and LED TV Total CTV Market share in 2011 Smart TV 45% 38. 9% 40% 35% Market share by key segments 38. 6% Etc. 24. 1% 38. 5% 34. 9% 9. 7% 12. 8% 30% 25. 0% 20% 12. 9% 19. 4% 15% 6. 0% 8. 2% 10. 8% LED TV Etc. 28. 7% 15. 8% 10% 5% 53. 4% 11. 7% 44. 8% 12. 7% 13. 8% 0% 2008 2009 ※ Source: NPD, Dollar base 2010 2011 ※ Source: 2011, NPD, Dollar base (Smart TV filtered by Network Capability) 2/45

Confidential MARKET OVERVIEW : BRAND PERFORMANCE However, Samsung is still behind Sony in Brand Preference despite its rapid growth and strength in dealer recommendation BAS (MPSA*) DAS (RR*) 36% 30% 20% 29% 2009 31% 22% 17% 12% 2010 * MPSA: Most Preferred Single Answer (%) 36% 13% 2011 14% 2009 19% 15% 2010 19% 16% 2011 * RR: Dealer Recommendation Rate (%) ※ Source: 2011 1 H BAS / DAS data 3/45

Confidential 2012 BUSINESS STRATEGY Our Objective is to firmly establish ‘Beyond Comparison’ position in both Smart TV and LED TV Beyond Comparison (Cho Gyuk Cha) Clearly Differentiate Smart TV Benefit Differentiated Smart TV features (Smart Interaction and Evolution) Unique Samsung Smart Content Increased locally relevant content Accelerate Transition to LED TV made accessible with F-LED TV /45

Confidential 2012 BUSINESS OBJECTIVE 2012 Business Strategy will allow us to achieve growth in our strategic categories; 1 Smart TV Series 7 / 8 sales by +15000 units

Confidential Contents I. Market Overview & Business Objectives II. Smart TV Communication Strategy

Confidential PRODUCT STRATEGY: Smart TV consumer needs Consumers expect variety of internet content and easy web searching from Smart TV Complicated User experience is the biggest pain-point in Smart TV usage Future Smart TV Usage and Expectations Current Usage and Pain-points of Smart TV • Smart TV usage takes too long and is complicated • Consumers expect ‘new content’ from Smart TV Expectations (Top 2%) 48. 2 Viewing online video content 36. 9 Searching on Web 29. 1 Full browsing Multi-tasking Downloading Apps SNS ※ Source: Consumer Tracking 2011 Q 2~3 • Samsung Smart TV Consumer Perceptions - Positive on Overall and Content Quality - Negative on UX due to Too many steps - Especially, App access hard 22. 1 20. 8 16. 2 Smart Interaction Concept Acceptance (Top 2%) Preference 75 Uniqueness 89 Necessity 67 Purchase intention 70 ※ Source: 2011 Online buzz tracking / 2011 Line-up study

Confidential PRODUCT STRATEGY: Competition New entrants who will try to change the rule of the game is a potential threat, especially Apple TV Existing Players Sony Internet TV New Entrants Apple TV • Enjoy high-quality web content • Input device • Entertainment choices leveraging Sony pictures • Separate platform from Google TV LG Smart TV • Magic motion remote includes gyroscope for navigating menus and playing games • Expected to have Voice control on the magic motion remote • Smart TV Upgrader for non-smart TVs (add-on device) “The simplest user interface. ” – Steve Jobs • Content & Services Pool of content and services readily used Google TV • Device Connectivity Seamless sharing with other Apple Devices • Content Access/Storage “Automatic and effortless” cloud service • Launched Google TV 2. 0 upgrade Nov. ‘ 11 • Improved UX, enhanced search, improved web content to feel more like TV

Confidential PRODUCT STRATEGY: Samsung vs Competition In 1 H, new Smart TV will pre-empt market with clear differentiation with Smart interaction & content, while in 2 H Smart evolution will be focused as a point of difference vs Apple TV Company X Company B Company A Company G New Entrants Existing Players Samsung Interaction Voice and Motion control Face Recognition Voice and Motion control in ‘magic control’ N/A Potential of Playstation move Content Signature services Superior local Killer apps No signature services Lack local killer apps To have ‘Siri’ with comprehensive voice control To leverage ‘i. Tunes’ content base N/A No signature services Android market expansion to TV Potential to introduce on Google platform Evolution Kit New features/ content every year N/A N/A ※ Source: Competitor Intelligence from Product Strategy team Picture Design Finest picture quality with Micro Dimming technology Super Narrow bezel with arch flow stand Convergence All. Share play service between multi. Samsung devices Narrow bezel but no arch flow stand DLNA Heritage over picture quality , continues with Bravia engine Pushed Monolithic design with little success Potential D 2 D sharing b/w Sony Devices N/A To leverage ‘i. Cloud’ service and ‘Air Play’ N/A To utilize Android platform No strength in picture quality N/A Strong Average Weak

Confidential PRODUCT STRATEGY: 2012 Smart TV Strategy In 2012, Samsung Smart TV will achieve ‘unrivaled differentiation’ through device/UX innovations and unique and relevant content 2011 2012 Smart Hub • Focus on communicating Apps and Smart Hub Services Device/UX Samsung Apps / Unrivaled Differentiation Content Build Category • Voice/Motion control & Smart Interaction Face recognition • Market’s 1 st Evolution capability to Smart Evolution make your TV New every year Smart Content • New Family Services with a focus on Family Story • Locally relevant Apps • Seamless sharing with All. Share

Confidential MARKETING PLAN : WHO a. WHO Smart TV Target b. WHAT Unrivaled differentiation of our positioning

Confidential MARKETING PLAN : WHO – Smart TV Target Smart TV targets seek ‘connectivity and new content’ that will enhance over all TV experience (14. 1% of gen. pop. ) Target Insight • Seek new value added features (connectivity, content) & benefits that enhance the total TV experience • Love watching with family/friends • Willing to spend above average • Most influential are consumer reports, expert opinions and various online sources • Newer features and Screen resolution are fairly important • Combines male youngster and oldies likewise, with an average income • In-store experience is vital Replace pic. Connectivity Content / Online In-store

Confidential MARKETING PLAN : WHAT a. WHO Smart TV Target b. WHAT Unrivaled differentiation of our positioning

Confidential MARKETING PLAN : WHAT – Communication Strategy 2012 Samsung Smart TV communication should; 2 Deliver on the business objective of ‘Beyond Comparison’ Drive innovative brand image through technology leadership positioning 3 Reinforce Category positioning 4 Communicate call-to-action of experiencing & purchasing new Smart TV 1 Business Objective 1 ‘Beyond Comparison’ Brand Image 2 Innovative Tech. Leadership CTV Category Positioning 3 ‘Transforming viewing together’ The Future of Smart TV Call to Action 4 Experiencing & Purchasing NOW 2012 Communication Strategy “El Futuro de la Televisión, HOY” 14/45

Confidential MARKETING PLAN : WHAT – Communication Strategy “The Future of Smart TV, NOW” will be delivered by; 1 Highlighting Smart Interaction and Smart Content 2 And Smart Evolution (Make your TV new, every year) ““El Futuro de la Televisión, HOY”” Smart Interaction • Voice control • Motion control • Face recognition Smart Content • Family Services (Family Story, Kids, Fitness) + Locally relevant Applications (+1, 400 Apps globally) + All. Share play Smart Evolution • Evolution Kit Key Message ‘Make your TV new, every year’ 15/45

Confidential Thank you.