SAMSUNG SDI CO., LTD. AND SUBSIDIARIES Consolidated

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SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

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ConsolidatedFinancialStatements

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December31,2023and2022

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(WithIndependentAuditors’ReportThereon)

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Contents

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  Page

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IndependentAuditors’Report  1

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ConsolidatedStatementsofFinancialPosition  5

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ConsolidatedStatementsofComprehensiveIncome6

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ConsolidatedStatementsofChangesinEquity  7

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ConsolidatedStatementsofCashFlows9

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NotestotheConsolidatedFinancialStatements  10

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152, Teheran-ro, Gangnam-gu, Seoul 06236

(Yeoksam-dong, Gangnam Finance Center 27th Floor)

Republic of Korea

Independent Auditors’ Report

BasedonareportoriginallyissuedinKorean

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TotheShareholdersandBoardofDirectorsof

SamsungSDICo.,Ltd.:

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Opinion

WehaveauditedtheconsolidatedfinancialstatementsofSamsungSDICo.,Ltd.anditssubsidiaries(“theGroup”),

which comprise the consolidated statement s of financial position as of December 31, 2023 and 2022, the

consolidatedstatementsofcomprehensiveincome,changesinequityandcashflowsfortheyearsthenended,and

notes,comprisingofmaterialaccountingpolicyinformationandotherexplanatoryinformation.

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In our opinion, the accompanying consolidated financial statemen ts present fairly, in all material respects, the

consolidated financial position of the Group as of December 31, 2023 and 2022, and its consolidated financial

performance and its consolidated cash flows for the years then ended in accordance with Korean International

FinancialReportingStandards(“K‐IFRS”).

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Wealsoh aveaudited,inaccordancewithKoreanStandardsonAuditing(KSAs),,theGroup'sInternalControlover

Financial Reporting for consolidation purposes as of December 31,2023 based on the criteria established in the

Conceptual Framework for Designing and Operating Internal Control over Financial Reporting issued by the

Operating Committee of Internal Control overFinancialReportingin theRepublicof Korea,and ourreportdate d

February 23, 2024 expressed an

 unmodified opin i on o n the effectiveness of the Group’s internal control over

financialreporting.

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BasisforOpinion

Weconductedourauditsin accordancewithKSAs.Ourresponsibilitiesunderthosestandardsarefurtherdescribed

intheAuditors’ResponsibilitiesfortheAuditoftheConsolidatedFinancialStatementssectionofourreport.We

are independent oftheGroupinaccordancewith theethicalrequirementsthata rerelevant toour audit ofthe

consolidatedfinancialstatements in RepublicofKorea,andwehavefulfilled our other et hical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is  sufficient and

appropriatetoprovideabasisforouropinion.

KeyAuditMatters

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthe

consolidatedfinancialstatementsasofandfortheyearendedDecember31,2023.Thesematterswereaddressed

inthecontextofourauditoftheconsolidatedfinancialstatementsasawhole,andinformingouropinionthereon,

andwedonotprovideaseparateopiniononthesematters.

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A.Theexistenceofautomotivebatteryrevenue

1)Risk

The Group recognizes automotive battery revenue when it transfers the risk and control over the good to the

customer. The Group’s automotive battery revenue is consistently increasing, and the expectat ions  of external

stakeholdersarehigh.

As described in no te 4, the amount of automotive battery revenue is significant in the consolidated financial

statementsandthemanagement’sincentivetoincreasetherevenueishigh,wehavedeterminedtheexistenceof

automotivebatteryrevenueasakeyauditmatter.

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2)Howthematte rwasaddressedinouraudit

Theprimaryproceduresweperformedtoaddressthiskeyauditmatterincludedthefollowing:

‐ Obtained an understanding of the Group’s processes related to automotive battery revenue recognition and

evaluatedthe designandoperatingeffectivenessofcorrespondinginternalcontrols.

‐Inspectedtheautomotivebatterycontracts withcustomersonasamplebasisandassessedtheappropriatenessof

thetimingofcontroltransferandcorrespondingrevenuerecognitioninaccordancewithK‐IFRSNo.1115.

‐Assessed theexistenceofautomotivebatteryrevenue

andtheappropriatenessofthetimingofautomotivebattery 

revenuerecognition,byinspectingtheexternalevidenceonasamplebasis.

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B.TheAppropriatenessofestimationofallowanceforinventoryvaluation

1)Risk

TheGroupassessesthenetrealizablevalueandobsolescenceofinventory.Theevaluationincludesmanagement’s

judgementandestimates.Asdescribedinnote9totheconsolidatedfinancialstatements,consideringtheamount

of allowance for inve ntories is significantin the consolidatedfinancialstatements andthereis uncertainty in the

estimates andjudgmentsusedbymanagement,weidentifiedtheappropriatenessofestimationofallowancefor

inventoryvaluationasakeyauditmatter.

2)Howthematte rwasaddressedinouraudit

Theprimaryproceduresweperformedtoaddressthiskey auditmatterincludedthefollowing:

‐ObtainedanunderstandingoftheGroup’sprocessesrelatedtoinventoryvaluationandevaluatedthedesignand

operatingeffectivenessofcorrespondinginternalcontrols.

‐ Evaluated the  reasonableness of the Group’saccounting policies andmethodology and assumptions applied to

estimatetheinventoryvaluationandperformedrecalculations.

‐Assessedtheaccuracyofinventoryagingdataonasamplebasis.

‐Evaluatedtheappropriatenessofthe underlyingdatausedfortheestimationofthenetrealizablevalueofinventory

onasamplebasis.

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OtherMatter

TheproceduresandpracticesutilizedintheRepublico f Koreatoauditsuchconsolidatedfinancialstatementsmay

differfromthosegenerallyacceptedandappliedin

othercountries.

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ResponsibilitiesofManagementandThoseChargedwithGovernancefortheConsolidatedFinancialStatements

Managementis responsibleforthepreparation andfairpresentationoftheconsolidatedfinancialstate ments  in

accordance with K‐IFRS, and for such internal control as management determines is necessary  to enable the

preparationofconsolidatedfinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraud

orerror.

Inpreparingtheconsolidatedfinancialstatements,managementisresponsibleforassessingtheGroup’sabilityto

continueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcern

basis of accounting unless managementeither intends to liquidatethe Group orto cease operations,or hasno

realisticalternativebuttodoso.

ThosechargedwithgovernanceareresponsibleforoverseeingtheGroup’sfinancialreportingprocess.

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Auditors’ResponsibilitiesfortheAuditoftheConsolidatedFinancialStatements

Ourobjectivesaretoob tainreasonableassuranceaboutwhethertheconsolidatedfinancialstatementsasawhole

arefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditors’reportthatincludes

ouropinion.Reasonableassuranceisahighle velofassurancebutisnotaguaranteethatanauditconductedin

accordancewithKSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscan arisefromfraud

or error and are considered material if, individually or in the aggregate, they could reasonably be expected to

influencetheeconomicdecisionsofuserstakenonthebasisoftheseconsolidatedfinancialstatements.

As part of an audit in accordance with KSAs, we exercise professional judgment and maintain professional

skepticismthroughouttheaudit.Wealso:

• Identifyan dassesstherisksofmaterialmisstate mentoftheconsolidatedfinancialstatements,whether

duetofraudorerror,design  and  performaudit proceduresresponsiveto those risks, and obtain audit

evidencethatissufficienta n dappropriatetoprovideabasisforouropinion.Theriskofnotdetectinga

material misstatement resulting from fraud is higher than for one resulting from

error, as fraud may

involvecollusion,forgery,intentionalomi s si o n s ,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditpro ceduresth at

areappropriateinthecircumstances.

• Evaluatetheappropriatenessofaccountingpoliciesusedinthepreparationoftheconsolidatedfinancial

statements and the reasonableness of accounting estimates and related disclosures made by 

management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditionsthatmaycastsignificant doubt onthe Group’s ability tocontinueasa goingconcern.If we

concludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditors’reportto

therelateddisclosuresintheconsolidatedfinancialstatemen tsor,ifsuchdisclosuresareinadequate,to

modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our

auditors’report.However,  future events orconditionsmay cause the Groupto cease to co ntinueas a

goin gconcern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements,

including the

disclosures, and  whether the consolidatedfinancial statements represent theunderlying

transactionsandeventsinamannerthatachievesfairpresentation.

• Obtainsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusiness

activities within the Group to express an opin i o n on the consolidated financial statements. We are

responsible for the direction, supervision and performance of the group audit. We remain solely

responsibleforourauditopinion.





Wecommunicate with thosecharged with governance regarding,  among ot h e r matters,the planned scopeand

timingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatwe

identifyduringouraudit.



We also provide those chargedwith governance with a statement that we h ave complied with relevant ethical

requirementsregardingindependence,andcommunicatewiththemallrelationshipsandothermattersthatmay

reasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

Fromthematterscommunicate dwiththosechargedwithgovernance,wedeterminethosemattersthatwereof

mo stsignificanceintheauditoftheconsolidatedfinancialstatementsofthecurrentperiodandarethereforethe

key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public

disclosureaboutthematterorwhe n,inextremelyrarecircumstances,wedeterminethatamattershouldnotbe

communicated in our report because the adverse consequences of doing so would reasonably be expected to

outweighthepublicinterestbenefitsofsuchcommunication.

Theengagementpartnerontheauditresultinginthisindependentauditors’reportisCha,Jeong‐Hwan.



Seoul,Korea

February

23,2024



ThisreportiseffectiveasofFebruary23,2024,theauditreportdate.Certainsubsequenteventsorcircumstances,

whichmayoccur betweentheauditreportdateandthe timeofreadingthisreport,couldhaveamaterialimpact

onthe accompanyingconsolid ated financial statementsan dnotesthereto.Accordingly,thereadersof the audit

report should understand that the above audit report has not been update d to reflect the impact of such

subsequenteventsorcircumstances,ifany.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

ConsolidatedStatementsofFinancialPosition

AsofDecember31,2023and2022 

(Inthousandsofwon) Note 2023 2022

Assets

Cashandcashequivalents 5,7 W

1,524,461,361 2,614,271,850

Tradeandotherreceivables,net 5,8,32 3,402,869,055 2,933,814,799

Inventories,net 9 3,297,368,930 3,204,515,835

Otherinvestments 5,10 602,098,501 534,662,104

Othercurrentassets 11 353,200,052 335,800,401

Currentderivativeassets 5,20 7,031,294 28,637,386

Currentassets 

9,187,029,193 9,651,702,375

Long‐termtradeandotherreceivables,net 5,8,32 33,739,219 6,879,322

Investmentsinassociatesandjointventure 12 9,996,233,433 8,940,282,255

Property,plantandequipment,net 6,13,31 11,893,348,077 8,965,469,799

Intangibleassets,net 6,14 858,929,747 814,931,163

Investmentproperty 6,15 147,320,486 147,558,866

Deferredtaxassets 29 211,071,364 168,913,514

Othernon‐current

invest ments,includingderivatives 5,10,20 1,364,181,993 1,245,883,337

Othernon‐currentassets 11 93,180,479 137,715,011

Non‐currentderivativeassets 5,20 ‐  6,070,438

Employeebenefitassets 19 253,826,202 172,119,091

Non‐currentassets

24,851,831,000 20,605,822,796

Totalassets  W 34,038,860,193 30,257,525,171

Liabilities 



Tradeandotherpayables 5,16,31,32 W

4,538,845,024 4,285,754,046

Incometaxpayable 29 101,894,653 229,613,881

Advancereceived 6

607,331,856 230,132,847

Unearnedrevenue 6

18,823,553 78,688,354

Short‐termborrowings 5,17,34 2,868,274,952 2,851,183,214

Derivativeliabilities 5,20 ‐  57,510

Provisions 18,20 383,763,099 331,508,976

Currentliabilities 

8,518,933,137 8,006,938,828

Non‐currenttradeandotherpayables 4,16,31,32 541,922,917 697,531,225

Long‐termadvancereceived 6 61,184,782 50,623,505

Long‐termborrowings 5,17,34 2,849,524,920 2,297,040,000

Netemployeebenefitliabilities 19 2,276,047 2,005,410

Non‐currentderivativeliabilities 5,20 ‐  82,319

Long‐termprovisions 18,20 93,140,664 91,878,306

Deferredtaxliabilities 29 2,064,627,748 1,893,923,422



Non‐currentliabilities 

5,612,677,078 5,033,084,187

Totalliabilities

 W

14,131,610,215 13,040,023,015

Equity 

 

Sharecapital 1,21 W

356,712,130 356,712,130

Sharepremium 21 5,001,974,693 5,001,974,693

Othercomponentsofequity 22 (345,131,584) (345,131,584)

Accumulatedothercomprehensiveincome 23,29 1,162,152,893 1,003,816,893

Retainedearnings 24 12,335,665,246 10,468,351,381

EquityattributabletoownersoftheParentCompany  18,511,373,378 16,485,723,513

Non‐controllinginterests  33

1,395,876,600 731,778,643

Totalequity 

19,907,249,978 17,217,502,156

Seeaccompanyingnotestotheconsolidatedfinancialstatements.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

ConsolidatedStatementsofComprehensiveIncome

FortheyearsendedDecember31,2023and2022

(Inthousandsofwon,exceptpershareinformation) Note

20232022

 



Revenue 6,32 W  22,708,300,498 20,124,069,516

Costofsales 9,19,26,32  (18,726,384,091) (15,903,322,834)

Grossprofit 

3,981,916,407 4,220,746,682

Selling,generalandadministrativeexpenses 14,19,25,26,32

(2,348,547,442) (2,412,733,669)

Operatingprofit 6

1,633,368,965 1,808,013,013

Othernon‐operatingincome 27,32

76,645,597 62,998,019

Othernon‐operatingexpenses 27,32

(50,310,957) (206,316,946)

Financeincome 28

1,055,087,475 1,390,645,973

Financecosts 28

(1,245,885,498) (1,442,761,340)

Shareofincomeofassociatesandjointventure 12

1,017,238,435 1,039,696,670

Profitbeforeincometax 

2,486,144,017 2,652,275,389

Incometa xex pense 29

(420,097,455) (612,913,941)

Profitfortheyear 24,30

2,066,046,562 2,039,361,448

Othercomprehensiveincome 



Itemsthatwillnotbereclassifiedtoprofitorloss:

Remeasurementofnetdefinedbenefitliabilities 19,24,29

(99,099,458) 87,645,869

Gain(loss)onvaluationoffinancialassetsatFVOCI 10 

88,659,820 (166,678,917)



Relatedtax 29

15,507,203 (3,040,696)



Itemsthatareormaybereclassifiedtoprofitorloss: 



Gainonvaluationofderivativesinstrumentsforcashflowhedge  20

(23,111,866) (67,984,703)



Changeinequityofequity‐methodaccountedinvestees 12

(16,687,756) (9,615,209)



Foreignoperations–foreigncurrencytranslationdifferences 

90,240,991 17,859,070



Relatedtax 29

10,507,100 1,937,146



Othercomprehensiveincomefortheyear ,netoftax 

66,016,034 (139,877,440)



Totalcomprehensiveincomefortheyear W  2,132,062,596 1,899,484,008



Profitattribut ableto:

OwnersoftheParentCompany 30 W

2,009,207,126 1,952,148,536

Non‐controllinginterests 33

56,839,436 87,212,912

 

Totalcomprehensiveincomeattributableto:

OwnersoftheParentCompany

2,094,600,653 1,848,403,992

Non‐controllinginterests 33

37,461,943 51,080,016

 

Earningspershare 30

Basicearningspershare‐Ordinaryshare  W

30,044 29,191

Basicearningspershare‐Preferredshare 

30,094 29,241



Seeaccompanyingnotestotheconsolidatedfinancialstatements

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

ConsolidatedStatementsofChangesinEquity

FortheyearsendedDecember31,2023and2022



(Inthousandsofwon)

Sharecapital



Capitalsurplus



Othercapital



Accumulated

other

comprehensive

income



Retainedearnings



Non‐controlling

interests



Totalequity

BalanceatJanuary1,2022 W 356,712,130 5,001,974,693 (345,131,584) 1,174,235,558 8,516,473,334 492,435,184 15,196,699,315

Comprehensiveincome

      

Profitfortheyear

‐  ‐  ‐  ‐  1,952,148,536 87,212,912 2,039,361,448

Remeasurementsofthedefinedbenefit

plan  ‐  ‐  ‐  ‐  66,674,121 ‐ 66,674,121

Gainonvaluationofderivatives

instrumentsforcashflowhedge  ‐  ‐  ‐  (52,195,555) ‐ ‐ (52,195,555)

Changesinfairvaluesoffinancialassetsat

FVOCI  ‐  ‐  ‐  (148,747,865) ‐ ‐ (148,747,865)

Changein

equityofequity‐accounted

investees  ‐  ‐  ‐  (23,467,212) ‐ ‐ (23,467,212)

Foreignoperations–foreigncurrency

translationdifferences  ‐  ‐  ‐  53,991,967 ‐ (36,132,896) 17,859,071

Totalcomprehensiveincome  ‐  ‐  ‐  (170,418,665) 2,018,822,657 51,080,016 1,899,484,008

Transactionswithshareholders       

directlyrecognizedinequity 

 

Dividendstoownersofthecompany  ‐  ‐  ‐  ‐  (66,944,610) (2,553,941) (69,498,551)

Capital contribution from non‐controlling

interest

‐  ‐  ‐  ‐  ‐  191,354,614 191,354,614

Capitalreductionofnon‐controlling

interest

‐  ‐  ‐  ‐  ‐  (537,230) (537,230)

BalanceatDecember31,2022 W

356,712,130 5,001,974,693 (345,131,584) 1,003,816,893 10,468,351,381 731,778,643 17,217,502,156

 

      



Seeaccompanyingnotestotheconsolidatedfinancialstatements.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

ConsolidatedStatementsofChangesinEquity

FortheyearsendedDecember31,2023and2022,Continued

(Inthousandsofwon)

Capitalstock



Capitalsurplus



Othercapital



Accumulated

other

comprehensive

income



Retainedearnings



Non‐controlling

interests



Totalequity

BalanceatJanuary1,2023 W 356,712,130 5,001,974,693 (345,131,584) 1,003,816,893 10,468,351,381 731,778,643 17,217,502,156

Comprehensiveincome

      

Profitfortheyear

‐  ‐  ‐  ‐  2,009,207,126 56,839,436 2,066,046,562

Remeasurementsofthedefinedbenefit

plan  ‐  ‐  ‐  ‐  (72,942,473) ‐ (72,942,473)

Gainonvaluationofderivatives

instrumentsforcashflowhedge  ‐  ‐  ‐  (17,010,333) ‐ ‐ (17,010,333)

Changesinfairvaluesoffinancialassetsat

FVOCI  ‐  ‐  ‐  78,010,037 ‐ ‐ 78,010,037

Changein

equityofequity‐accounted

investees  ‐  ‐  ‐  (12,282,188) ‐ ‐ (12,282,188)

Foreignoperations–foreigncurrency

translationdifferences  ‐  ‐  ‐  109,618,484 ‐ (19,377,493) 90,240,991

Totalcomprehensiveincome  ‐  ‐  ‐  158,336,000 1,936,264,654 37,461,943 2,132,062,596

Transactionswithshareholders       

directlyrecognizedinequity 

 

Dividendstoownersofthecompany  ‐  ‐  ‐  ‐  (68,950,789) (2,605,626) (71,556,415)

Capital contribution from non‐controlling

interest

‐  ‐  ‐  ‐  ‐  629,241,640 629,241,640

BalanceatDecember31,2023 W 356,712,130 5,001,974,693 (345,131,584) 1,162,152,893 12,335,665,246 1,395,876,599 19,907,249,977



Seeaccompanyingnotestotheconsolidatedfinancialstatement.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

ConsolidatedStatementsofCashFlows

FortheyearsendedDecember31,2023and2022

(Inthousandsofwon) Note 20232022

Cashflowsfromoperatingactivities 

ProfitfortheyearW

2,066,046,562 2,039,361,448

Adjustmentsforexpense(benefit) 34  1,497,883,704 1,415,752,593

Changesinassetsandliabilities 34  (938,384,206) (500,717,670)

Interestreceived80,023,127 34,121,360

Interestpaid(221,312,632) (81,139,252)

Dividendsreceived17,095,214 12,250,892

Incometa xespaid(397,830,255) (278,533,207)

Netcashprovidedbyoperatingactivities  2,103,521,514 2,641,096,164

Cashflowsfrominvestingactivities 

Decreaseinotherinvestments2,889,653,378 223,573,857

Proceedsfromdisposalofproperty,plantandequipment11,714,680 20,379,233

Proceedsfromdisposalofintangibleassets‐1,122,015

Disposalofsubsidiariesandaffiliates2,000,000 19,709,386

Increaseingovernmentgrants99,099,063 52,827,228

Acquisitionofotherinvestments(3,003,927,026) (408,355,803)

Acquisitionofproperty,plantandequipment(4,048,246,716) (2,808,898,170)

Acquisitionofintangibleassets(12,458,762) (4,583,865)

Acquisitionofsubsidiariesandaffiliates(42,680,000) (42,010,000)

Netcashusedininvestingactivities   (4,104,845,383) (2,946,236,119)

Cashflowsfromfinancingactivities  

Proceedsfromshort‐termborrowings4,049,049,429 1,239,602,699

Proceedsfromlong‐termborrowings1,005,861,108 807,737,420

Capitalcontributionfromnon‐controllinginterest629,241,640 191,354,614

Dividendspaid(71,550,149) (69,498,551)

Repaymentofdebentures(220,000,000) ‐

Repaymentofshort‐termborrowings(3,990,031,780) (1,508,607,082)

Repaymentoflong‐termborrowings(463,850,373) (1,296,152)

Capitalreductionfromnon‐controllinginterest‐

(29,750)

Repaymentofleaseliabilities(36,058,841) (30,563,962)

Netcashprovidedbyfinancingactivities   902,661,034 628,699,236

Netincreaseincashandcashequivalents   (1,098,662,835) 323,559,281

CashandcashequivalentsatJanuary12,614,271,850 2,325,692,348

Effectoffluctuationsinexchangerateoncashheld8,852,346 (34,979,779)

CashandcashequivalentsatDecember31  W

1,524,461,361 2,614,271,850



Seeaccompanyingnotestotheconsolidatedfinancialstatements.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

1. ReportingEntity



SamsungSDICo.,Ltd.(the“ParentCompany”orthe“Company”)wasincorporatedonJanuary20,1970underthe

laws of the Republic of Korea with paid‐in capital of ￦200 million, and its head office is

located in Gi‐heung,

Gyeong‐giDo.



TheconsolidatedfinancialstatementscomprisetheCompany,itssubsidiaries(togetherreferredtoasthe“Group”

andindividuallyas“Groupentities”)andtheGroup’sinterestsinassociates.In1979,theParentCompanywaslisted

on the Koreanstock exchange market, and its shares arelisted

 asdepositary receiptson the LuxembourgStock

Exchange.



ThemajorbusinesssegmentsandlocationsofdomesticproductionfacilitiesoftheParentCompanyareasfollows.



Business



Majorproductlines



DomesticLocations

Energysolutions 

Automotivebattery,

ESS(EnergyStorageSystem),

Small‐sizedli‐ionbattery

 Ulsan,Cheon‐an

ElectronicmaterialsSemi‐conductoranddisplaymaterialsCheong‐ju,Gumi



Inadditiontotheselocalbusinesslocations,theParentCompanyalsohas20subsidiariesoperatingintheUnited

States,China,Germany,Hungary,andsoon.



UnderitsArticlesof Incorporation,theParentCompany isauthorizedtoissue200,000thousand shares

withpar

valueof ￦5,000.Asof December31,2023,70,382,426shares ofstock (including 1,617,896sharesof preferred

stock) have been issued and are outstanding, and the Parent Company’s paid‐in‐capital amounts to ￦356,712

million.ThelargestshareholderoftheParentCompanyisSamsungElectronicsCo.,Ltd.(ownership

:19.13%).The

ParentCompanyisallowedtoretireitsstocksthroughaboardresolutionwithinitsprofitavailablefordividendsto

its shareholders. Pursuant to the resolution made by the board of directors on October 18, 2004, the Parent

Companyretired 930,000sharesofordinarystockand30,000sharesof

preferredstock,which were acquired at

￦99,333 million on December 8, 2004 by appropriating retained earnings. The par value of outstanding shares

is￦351,912million (￦343,823 millionfor common stockand￦8,089 million for preferred stock,excluding the

retiredshares)anditdiffersfromtheGroup’spaid‐in

‐capitalduetotheshareretirement.



Under itsArticlesof Incorporation, the Parent Company isauthorized to issue30,000 thousandshares of non‐voting

preferredstock.HoldersofpreferredsharesissuedbeforeFebruary28,1997areentitledtoreceivingadditional dividends

of1%ofitsparvaluepe rannum.As 

ofDecember31,20231,617,896sharesofno n‐cumulativeandnon‐votingpreferred

stocksare eligiblefortheseadditionaldivide nds.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

2. BasisofPreparation

The consolidated financial statements have been prepared in accordance with Korean International Financial

ReportingStandards(“K‐IFRS”),asprescribedintheActonExternalAuditsofCorporationsintheRepublicofKorea.

Theconsolidatedfinancialstatements

wereauthorizedforissuebytheBoardofDirectorsonJanuary30,2024and

willbesubmittedforapprovaltogeneralshareholdersmeetingtobeheldonMarch20,2024.



(1) Basis of measurement



Theconsolidatedfinancialstatementshavebeenpreparedonahistoricalcostbasis,exceptforthefollowing:



‐  Financial instrumentsmeasuredatfairvalue.



‐  Liabilitiesfordefinedbenefitplansrecognizedatthenetofthetotalpresentvalueofdefinedbenefitobligationsless

thefai rvalue

ofplanassets. 



(2) Functional and presenta tion currency



TheseconsolidatedfinancialstatementsarepresentedinKoreanwon,whichistheParentCompany’sfunctional

currencyandthecurrencyoftheprimaryeconomicenvironmentinwhichtheGroupoperates.



(3) Use of estimates and judgments



Thepreparationoftheconsolidatedfinancial

statementsinconformitywithK‐IFRSrequiresmanagementtouse

estimatesandassumptionsthataffecttheapplicationofaccountingpoliciesandthereportedamountsofassets,

liabilities,income,andexpensesbasedonthemanagement’sbestjudgment.Actualresultsmaydifferfromthese

estimates.



Estimates and underlying assumptions are reviewed on

an ongoing basis. Change in accounting estimates is

recognizedduringtheperiodinwhichthechangeismadeandduringanyfutureperiodsitmayaffect.



Informationaboutcriticaljudgmentsinapplyingaccountingpoliciesthathavethemostsignificanteffectonthe

amountsrecognizedintheconsolidatedfinancialstatementsisincluded

inthefollowingnotes:



‐Note4:Consolidation:whethertheGrouphasde factocontroloveraninvestee;

‐Note12:Investmentsinasso ciates:whethertheGrouphassignificantinfluenceoveraninvestee;and

‐Note31:Leaseterm :whethertheGroupisreasonablycertain toexerciseextensionoptions

Information about

 uncertainties of assumptions and estimation that have a significant risk of resulting in a

materialadjustmentwithinthenextfinancialyearisincludedinthefollowingnotes:



‐Note9:InventoryAllowanceforvaluation‐Keyassumptionsofnetrealizablevaluemeasurement

‐Note14:IntangibleAssets‐key assumptions underlyingre coverableamounts

‐Note18:Provi sions‐keyassumptionsaboutlikelihoodandmagni tudeofanoutflowofresources;and

‐Note19:measurementofdefinedbenefitobligations:keyactuarialassumpti ons

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

2. BasisofPreparation,Continued



(4) Fair value measurement



Group’saccountingpoliciesanddisclosuresrequirethemeasurementoffairvalues,forbothfinancialandnon‐

financialassetsandliabilities.TheGrouphasanestablishedcontrolframeworkwithrespectto

themeasurement

offairvalues.Thisincludesavaluationteamthathasoverallresponsibilityforoverseeingallsignificantfairvalue

measurements,includingLevel3fairvalues,andtheresultsarereporteddirectlytotheCFO.



The valuationteam regularly reviews significant unobservableinputs andvaluation adjustments.If thirdparty

information,

such asbrokerquotesor pricingservices,isusedtomeasurefairvalues,thenthevaluationteam

measurestheevidenceobtainedfromthethirdpartiestosupporttheconclusionthatsuchvaluationsmeetthe

requirementsofK‐IFRS,includingthelevelinthefairvaluehierarchyinwhichsuchvaluationsshould

beclassified.



SignificantvaluationissuesarereportedtotheGroup’sAuditCommittee.



Whenmeasuringthefairvalueofanassetoraliability,theGroupusesmarketobservabledataasfaraspossible.

Fairvaluesarecategorizedintodifferentlevelsinthefairvaluehierarchybasedontheinputsused

inthevaluation

techniquesasfollows.



‐  Level1:quotedprices(u nadj uste d)inaccessibleactivemarketsforidenticalassetsor liabilities

‐  Level2:inputsotherthanquotedpricesincludedinLevel1thatareobservablefo rtheassetorliability,

eitherdirectly(i.e. asprices)orindirectly(i. e.derivedfrom

price)

‐  Level3:inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(unobservableinputs)



Iftheinputsusedtomeasurethefairvalueofanassetoraliabilitymightbecategorizedindifferentlevelsofthe

fairvaluehierarchy,thenthe fair value

measurementiscategorizedinitsentiretyinthesamelevelofthefair

value hierarchy as the lowestlevel input that is significant to the entire measurement. The Group recognized

transfersbetweenlevelsofthefairvaluehierarchyattheendofthereportingperiodduringwhichthechange

hasoccurred.



Furtherinformationabouttheassumptionsmadeinmeasuringfairvaluesisincludedinfollowingnote:



‐  Note5:Fina ncial RiskManagement

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

3. ChangesinAccountingPolicies



(1) GlobalMinimumTax



TheGroupappliedtheamendmentstotheInternationalTaxReform‐Pillar2ModelRules(CorporateTax,K‐IFRSNo.

1012)fromJanuary1,2023.Theseamendmentsincludeamandatoryruletemporarily

ex emptingdeferredincome

taxaccountingtreatmentfortheGlobalMinimumTax.Italsorequiresadditionaldisclosureofexposureinformation

relatedtoPillar2 CorporateTax.TheimpactoftheseamendmentsontheGroupisexplainedinNote29.



(2) Materialaccountingpoliciesinformation



Thegroupappliedtheamendmentsto

disclosuresofaccountingpolicies(K‐IFRSNo.1001,'Presentationoffinancial

statements') from January 1, 2023. These amendments do not result in a change to the accounting policies

themselvesbutimpacttheaccountingpolicyinformationdisclosedintheseconsolidatedfinancialstatements.The

amendmentsrequirethedisclosureof'material'accountingpoliciesratherthan

'significant ' accountingpolicies.

Also, by providing guidelines for applying materiality to accounting policy disclosures, it enables users of the

consolidatedfinancialstatementstounderstandcompany‐specificaccountingpolicyinformation.Themanagement

of the Group has reviewed the accounting policies and updated material accounting policy(previous year:

significantaccountingpolicies)informationdisclosed

inNote4inaccordancewiththeseamendments.





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4. MaterialAccountingPolicies



MaterialaccountingpoliciesappliedbytheGroupinpreparingitsconsolidatedfinancialstatementsinaccordance

with K‐IFRS are described below. The Group has consistently applied the following accounting policies to all

periods presented in these consolidated financial statements except for the changes in accounting policies

explainedinNote3.



The group applied the amendments to disclosures of accounting policies(K‐IFRS No. 1001, 'Presentation of

financialstatements')fromJanuary1,2023.Theseamendmentsrequirethedisclosureof'material'accounting

policies, not 'significant' accounting policies. These amendments do not result in a change to the accounting

policies themselves but impact the accounting

 policy information disclosed in these consolidated financial

statements.



(1)Basisofconsolidation



1)Subsidiaries



If a member of the Group uses accounting policies other than those adopted in the consolidated financial

statements for like transactions and eventsin similar circumstances, appropriate adjustments are made to its

financialstatementsinpreparing

theconsolidatedfinancialstatements.



Non‐controlling interests (“NCI”) are measured  at their proportionate share of the acquiree’s identifiable net

assetsattheacquisitiondate.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4. MaterialAccountingPolicies,Continued



(1)Consolidation,continued



1) Subsidiaries,continued



(i) The list of subsidiaries as of December31, 2023and2022 are as follows: All subsidiaries’ fiscal year end is

December31.







 Percentageof

ownership(*1)

Subsidiaries



Location



Primarybusiness



2023

2022

SamsungSDIJapanCo.,Ltd.("SDIJ")JapanSupportingsalesandpurchaseinJapan 100.0% 100.0%

SamsungSDIAmerica,Inc.("SDIA")U.S.A.Manufacturingautomotivebatteries

Supportingsalesofautomotiveand

ESSbatteries

Marketresearchofsmall‐sized

rechargeablebattery

 91.7% 91.7%

StarPlusEnergyLLC.("STARPLUS")U.S.A.Manufacturingandsalesofautomotive

battery

 51.0% 51.0%

SamsungSDIHungaryZrt.("SDIHU")HungaryManufacturingandsalesofautomotive

battery

 100.0% 100.0%

SamsungSDI

EuropeGmbH("SDIEU")GermanySupportingsalesandpurchasein

Europe

 100.0% 100.0%

SamsungSDIBatterySystemsGmbH("SDIBS")AustriaManufacturingandsalesofautomotive

battery

 100.0% 100.0%

SamsungSDIVietnamCo.,Ltd.("SDIV")VietnamManufacturingandsalesof

rechargeablebattery

 100.0% 100.0%

SamsungSDIEnergyMalaysiaSdn,Bhd.("SDIEM") MalaysiaManufacturingandsales

of

rechargeablebattery

 100.0% 100.0%

SamsungSDIIndiaPvt.("SDII")IndiaManufacturingandsalesof

rechargeablebattery

 100.0% 100.0%

SamsungSDI(HongKong)Ltd.("SDIHK") HongKongSupportingsalesofrechargeable

battery

 97.6% 97.6%

SubsidiaryofSDIHK 

TianjinSamsungSDICo.,Ltd.("TSDI")ChinaManufacturingandsalesof

rechargeablebattery

 78.0% 78.0%

SamsungSDIChina

Co.,Ltd.("SDIC")ChinaSupportingsalesandpurchaseinChina 100.0% 100.0%

Samsung SDI‐ARN (Xi'An) Power Battery Co., Ltd.

("SAPB")

 ChinaManufacturingandsalesofautomotive

battery

 65.0% 65.0%

SamsungSDI（Tianjin）BatteryCo.,Ltd.("SDITB”)

 ChinaManufacturingandsalesof

rechargeablebattery

 80.0% 80.0%

STMCo.,Ltd.("STM")KoreaManufacturingand

salesofcathode

activematerialforrechargeable

battery

 100.0% 100.0%

SamsungSDIWuxiCo.,Ltd.("SDIW")ChinaManufacturingandsalesofelectronic

materialsproducts

 100.0% 100.0%

NovaledGmbH("NOVALED")GermanyManufacturingandsalesofelectronic

materialsproducts

 50.1% 50.1%

SVIC15Fund("SVIC15")KoreaInvestmentsinnewtechnology

venturebusiness

 99.0% 99.0%

SVIC24

Fund("SVIC24")KoreaInvestmentsinnewtechnology

venturebusiness

 99.0% 99.0%

SVIC49Fund("SVIC49")KoreaInvestmentsinnewtechnology

venturebusiness

 99.0% 99.0%



(*1) Effective ownership interest has been measured based on ownership of the Parent Company and its

subsidiariesconsideringthecontrolstructure.Theownershipinterestsofsubsidiariesthatdonotissuesharesin

accordancewiththerelevantlocallawsandregulationsarecalculatedbasedontheinvestmentamounts.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(1)Consolidation,continued



1) Subsidiaries,continued



(ii) Summarized financial information of subsidiaries as of  and for the year ended December 31, 2023 are as

follows:



(

Inthousandso

won

)



Subsidiaries AssetsLiabilitiesEquityRevenue

Netprofit

(loss)

STM660,539,765



220,117,123



440,422,642



1,433,095,355



57,159,562



SVIC24 18,593,282



12,331,492



6,261,790



‐



(292,448)



SVIC15 22,824,631



3,212



22,821,419



‐



(552,453)



SVIC49 54,561,776



255,267



54,306,509



‐



3,802,029



SDIJ 6,906,796



2,233,363



4,673,433



10,623,368



476,389



SDIA 400,102,600



303,333,653



96,768,947



1,411,465,746



32,013,670



STARPLUS 1,798,731,227



182,982,358



1,615,748,869



‐



(30,189,536)



NOVALED 735,813,983



7,491,964



728,322,019



113,746,672



45,066,855



SDIHU 7,837,660,949



6,222,472,369



1,615,188,580



8,554,123,495



190,136,045



SDIEU 30,013,685



13,003,476



17,010,209



54,939,720



6,237,042



SDIBS 318,100,290



156,984,856



161,115,434



252,937,573



23,849,693



SDIV 326,970,230



107,379,059



219,591,171



1,013,875,685



31,654,814



SDIEM 1,874,176,164



1,320,494,881



553,681,283



1,520,447,108



41,896,127



SDII

21,265,151



7,508,008



13,757,143



5,745,964



3,820,094



SDIW 601,642,075



160,965,459



440,676,616



1,018,279,160



30,840,966



TSDI 672,728,883



290,457,389



382,271,494



543,405,719



14,005,315



SDIHK 843,025,347



140,855,031



702,170,316



1,741,993



37,883,135



SDIC 19,363,561



6,364,036



12,999,525



27,455,973



3,728,866



SAPB 816,895,510



278,682,396



538,213,114



1,176,833,427



82,621,180



SDITB

 1,207,356,995



691,018,488



516,338,507



2,122,676,565



57,194,803



2)Transactionseliminatedonconsolidation



Intra‐groupbalances,includingincomeandexpensesandanyunrealizedincomeandexpensesarisingfromintra‐

grouptransactions,areeliminated.Meanwhile,unrealizedgainsarisingfromtransactionswithequity‐accounted

investeesareeliminatedagainsttheinvestmenttotheextentoftheGroup’sinterestintheinvestee.

Unrealized

losses are eliminatedin the same wayasunrealized gains,but only tothe extentthat thereis noevidenceof

impairment.



3)Businesscombinationundercommoncontrol



Combination of entities and business under common control recognizes the acquired assets and liabilities

obtained at book values of consolidated financial

statements of ultimate controlling company. The Group

recognizesthedifferencebetweenthenetbookvalueacquiredandconsiderationtransferredinsharepremium.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(2)Foreigncurrency



1)ForeigncurrencyTransactions



Exchangedifferencesarisingon thesettlementofmonetaryitemsorontranslatingmonetaryitems,exceptfor

translationdifferencesfromnetinvestmentinforeignoperationandfromfinancialliabilities

designatedtocash

flowhedges,arerecognizedinprofitorlossintheperiodinwhichtheyarise.Ifprofitorlossfromnon‐monetary

itemsis regarded asothercomprehensive income thenthe exchangerate change effects are treated as other

comprehensiveincome,whereregardedascurrentprofitor

lossthentreatedascurrentprofitorloss.



2)ForeignOperations



The assets and liabilities of foreign operations, whose functional currency is not the currency of a

hyperinflationaryeconomy,aretranslatedtopresentationcurrencyatexchangeratesatthereportingdate.The

incomeandexpensesofforeignoperationsaretranslatedto

functionalcurrencyatexchangeratesatthedates

ofthetransactions.Foreigncurrencydifferencesarerecognizedinothercomprehensiveincome.



(3)Cashandcashequivalents



TheGroupclassifiesinvestmentassetswithamaturityofwithin3monthsfromtheacquisitiondateascashand

cashequivalents.



(4)Financialinstruments



1)Recognitionandinitialmeasurement



Tradereceivablesanddebtsecuritiesissuedareinitiallyrecognizedwhentheyareoriginated.Allotherfinancial

assets and financial liabilities are initially recognized when the Group becomes a party to the contractual

provisionsoftheinstrument.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(4)Financialinstruments,continued



2) Subsequentmeasurement



Businessmodelassessment



TheGroupassessestheobjectiveofthebusinessmodelinwhichafinancialassetisheldataportfoliolevelthat

best reflects the way

 the business is managed, and information is provided to management. The information

consideredincludes:

–

 thestatedpoliciesandobjectivesfortheportfolioandtheoperationofthosepoliciesinpractice.Theseinclude

whethermanagement’sstrategyfocusesonearningcontractualinterestincome,maintainingaparticularinterest

rateprofile,matchingthe

durationofthefinancialassetstothedurationofanyrelatedliabilitiesorexpectedcash

outflowsorrealizingcashflowsthroughthesaleoftheassets;

–

 howtheperformanceoftheportfolioisevaluatedandreportedtotheGroup’smanagement;

–

 therisksthataffecttheperformanceofthebusiness

model(andthefinancialassetsheldwithinthatbusiness

model)andhowthoserisksaremanaged;

–

 howmanagersofthebusinessarecompensated–e.g.whethercompensationisbasedonthefairvalueofthe

assetsmanagedorthecontractualcashflowscollected;and

–

 thefrequency,volumeand

timingofsalesoffinancial assetsinpriorperiods,thereasonsforsuchsalesand

expectationsaboutfuturesalesactivity.



Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not

consideredsalesforthispurpose,consistentwiththeGroup’scontinuingrecognitionoftheassets.



Financialassetsthatareheldfortradingoraremanagedandwhoseperformanceisevaluatedonafairvaluebasis

aremeasuredatFVTPL.



Assessmentwhethercontractualcashflowsaresolelypaymentsofprincipalandinterest



Inassessingwhetherthecontractualcash flowsaresolelypaymentsofprincipalandinterest,

theGroupconsiders

thecontractualtermsoftheinstrument.Thisincludesassessingwhetherthefinancialassetcontainsacontractual

termthatcouldchangethetimingoramountofcontractualcashflowssuchthatitwouldnotmeetthiscondition.

Inmakingthisassessment,theGroupconsiders:

–

 contingenteventsthatwould

changetheamountortimingofcashflows;

–

 termsthatmayadjustthecontractualcouponrate,includingvariable

‑

ratefeatures;

–

 prepaymentandextensionfeatures;and

–

 termsthatlimittheGroup’sclaimtocashflowsfromspecifiedassets(e.g.non

‑

recoursefeatures).



3)Derecognition



TheGroupderecognizes

afinancialassetwhenthecontractualrightstothecashflowsfromthefinancialasset

expire,orittransferstherightstoreceivethecontractualcashflowsinatransactioninwhichsubstantiallyallof

therisksandrewardsofownershipofthefinancialassetaretransferredorinwhichthe

Groupneithertransfers

norretainssubstantiallyalloftherisksandrewardsofownershipanditdoesnotretaincontrolofthefinancial

asset.



4)Offsetting



Financialassetsandfinancialliabilitiesareoffset,andthenetamountispresentedinthestatementoffinancial

positionwhen,andonlywhen,

theGroupcurrentlyhasalegallyenforceablerighttosetofftheamountsandit

intendseithertosettlethemonanetbasisortorealizetheassetandsettletheliabilitysimultaneously.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(5)Non‐derivativefinancialliabilities



TheGroup classifies financial liabilities into FVTPL or other financial liabilities based on the substance of the

contractualtermsandthedefinitionoffinancialliabilities.Recognitionontheconsolidated

statementoffinancial

positionoccurswhentheGroupbecomesapartytothecontract.



(6)Derivatives



Derivativefinancialinstrumentsandhedgeaccounting



Accountingpoliciesrelatedtoderivativefinancialinstrumentsandhedgeaccounting,aswellasinformationon

riskmanagementactivitiesareincludedinNote20.



(7)Property,plantand

equipment



Property,plant and equipment, exceptfor land, are depreciatedon astraight‐line basisoverestimated useful

lives that appropriately reflect the pattern in which the asset’s future economic benefits are expected to be

consumed.



TheestimatedusefullivesoftheGroup’sproperty,plantandequipmentareasfollows:



Usefullives(years)

Buildings 10~60

Structures 10~40

Machineries 5~10

Vehicles 4~5

Tools,furniture,andfixtures 1~5



Subsequentcostsarerecognizedinthecarryingamountofproperty,plantandequipmentifitisprobablethat

futureeconomicbenefitsassociatedwiththeitemwillflowtotheGroup.



(8)

Intangibleasset



Intangible assets are measured initially at cost and, subsequently, are carried at cost less accumulated

amortizationandaccumulatedimpairmentlosses.



Amortization of intangible assets except for goodwill is calculated on a straight‐line basis over the estimated

useful lives of intangible assets from the datethat they are

available foruse. The residual value of intangible

assetsiszero.



Theestimatedusefullivesofthegroup’sassetsareasfollows:



 Usefullives(years)

Industrialpropertyrights 5~10

Othersintangibleassets 4~20



(9)Investmentproperty



Investmentpropertyismeasuredinitiallyatitscostandtransactioncostsareincludedintheinitialmeasurement.

Subsequently,investmentpropertyiscarriedatdepreciatedcostlessanyaccumulatedimpairmentlosses.



Investment property, exceptfor land, aredepreciated on a straight‐line basis

 over estimated useful lives that

appropriatelyreflectthepatterninwhichtheasset’sfutureeconomicbenefitsareexpectedtobeconsumed.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(10)Inventories



The cost of inventories is based on specific method for materials in transit, moving average method for raw

materials and sub‐materials and gross average method (monthly moving average method) for all

the other

inventories,and includes expendituresforacquiring theinventories, productionorconversion costs and other

costsincurredinbringingthemtotheirexistinglocationandcondition.Inthecaseofmanufacturedinventories

andwork inprogress, costincludesan appropriateshare of productionoverheadsbasedon normal operating

capacity.



(11)Impairment

1)Impairmentoffinancialassets



TheGrouprecognizeslossallowancesforECLson:

–

 financialassetsmeasuredatamortizedcost;



The Group measuresloss allowancesat an amountequal to lifetime ECLs, except forthe following, which are

measuredat12

‑

monthECLs:

–

 debtsecuritiesthatare

determinedtohavelowcreditriskatthereportingdate;and

–

 otherdebtsecuritiesandbankbalancesforwhichcreditrisk(i.e.theriskofdefaultoccurringovertheexpected

lifeofthefinancialinstrument)hasnotincreasedsignificantlysinceinitialrecognition.



Lossallowancesfortradereceivables and contractassets

arealways measured at an amountequaltolifetime

ECLs.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(11)Impairment,continued



1)Impairmentoffinancialassets,continued



TheGroupassumesthatthecreditriskonafinancialassethasincreasedsignificantlyifitismorethan30days

pastdue.



TheGroup

considersafinancialassettobeindefaultwhen:

–

 theborrower is unlikely to payits credit obligations to the Groupin full, without recourse bythe Group to

actionssuchasrealizingsecurity(ifanyisheld);or

–

 thefinancialassetismorethan90dayspast

due.



① Credit‐impairedfinancialassets



Ateachreportingdate,theGroupassesseswhetherfinancialassetscarriedatamortizedcostanddebtsecurities

at FVOCI are credit

‑

impaired. A financial asset is ‘credit

‑

impaired’ when one or more events that have a

detrimentalimpactontheestimatedfuturecashflows

ofthefinancialassethaveoccurred.



Evidencethatafinancialassetiscredit

‑

impairedincludesthefollowingobservabledata:

– significantfinancialdifficultyoftheborrowerorissuer;

– abreachofcontractsuchasadefaultorbeingmorethan90dayspastdue;

– therestructuringofa

loanoradvancebytheGroupontermsthattheGroupwouldnotconsiderotherwise;

–

 itisprobablethattheborrowerwillenterbankruptcyorotherfinancialrestructuring;or

– thedisappearanceofanactivemarketforasecuritybecauseoffinancialdifficulties.



② PresentationofallowanceforECL

inthestatementoffinancialposition



Lossallowancesforfinancialassetsmeasuredatamortizedcostaredeductedfromthegrosscarryingamountof

theassets.



FordebtsecuritiesatFVOCI,thelossallowanceischargedtoprofitorlossandisrecognizedinOCI.



③ Write‐off



Thegross

carryingamountofafinancialassetiswrittenoffwhentheGrouphasnoreasonableexpectationsof

recoveringafinancialassetinitsentiretyoraportionthereof.TheGroupexpectsnosignificantrecoveryfrom

the amount written off. However, financial assets that are written off could still be subject to

 enforcement

activitiesinordertocomplywiththeGroup’sproceduresforrecoveryofamountsdue.



(12)Employeebenefits



1)Otherlong‐termemployeebenefits



Thepresentvalueoftheliabilityrelatedtootherlong‐termemployeebenefitsisdeterminedbydiscountingthe

expected future cash flows using the interest

rate of high‐quality corporate bonds that have maturity dates

approximatingthetermsoftheGroup’sobligationsandthataredenominatedinthesamecurrencyinwhichthe

benefitsareexpectedtobepaid.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(12)Employeebenefits, Continued



2)Definedbenefitplans

TheGroup’snetobligationis calculatedannuallybyanindependentactuaryusingtheprojectedunitcreditmethod.



(13)Provisions



The warranty provision (quality assurance) is

 recognized when products or services are sold or provided. It is

estimatedbasedonpastincidencedata,calculatingallpossibleoutcomesandtheirassociatedprobabilities.



(14)Revenuefromcontractswithcustomers



ThemainprofitsoftheGrouparegeneratedbytheenergysolutionbusinesssector,whichsellssmallbatteries,

mediumandlargebatteries,andthe electronicmaterialsbusiness unit,which sells semiconductoranddisplay

materials.



TheGroup’saccountingpoliciesforrevenuestreamareasfollows:



Typeofproduct/

service

Nature,timingofsatisfactionofperformanceobligation,

significantpaymentterms

SalesofGoods

Controlistransferredatthe

timeproductisdeliveredtoandistakenoverbythecustomer.

Thegrouprecognizesrevenuewhencontrolistr ansferred,andinvoicesareissued.

UnderK‐IFRSNo.1115,revenueisrecognizedonlytotheextentthatitishighlyprobablethat

nosignificantreductionincumulativerevenuewilloccur.Sincecertain

customersareeligible

for price discounts such as sales incentives based on their purchase volume, revenue is

recognized as the amount reflecting those estimated price discounts in accordance with

contractterms.



Royalty

The Group provides customers with licenses, including patented technology, and receives

royaltiesmonthlyorquarterly,dependingonthevolumeofproduction(orsales)ofproducts

usingthetechnology.

Under K‐IFRS No.1115, royalty based on sales volume or production is recognized when

subsequentsalesorproductionactivitiesoccur.



Development

Service

The Group provides services for developing products that meet customer requirements.

Intangible outputs generated by such development services are identified as separate

performance obligations, and control is transferred to the customer at the time of final

approval of the customer. Therefore, costs associated revenue from the contract with

 the

customerarerecognizedwhenthedeliverablespromisedtothecustomeraredelivered.



(15)Governmentgrants



GovernmentgrantswhichareintendedtocompensatetheGroupforexpensesincurredarerecognizedasother

income(governmentgrants)inprofitorlossovertheperiodsinwhichtheGrouprecognizestherelated

costsas

expenses. If the Group has receivedgovernment grants whose primary condition is that the Group purchase,

constructorotherwiseacquirelong‐termassets,theamountsaredeductedincalculatingthecarryingamountof

theasset.Thegrantisrecognizedinprofitorlossoverthelifeofadepreciable

assetasareductiontodepreciation

expense.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(16)Financeincomeandcosts

Financeincomecomprisesinterestincomeonfundsinvested(includingavailable‐for‐salefinancialassets),



TheGroup’sfinanceincomeandfinancecostsinclude:

–

 interestincome;

–

 interestexpense;

–



thenetgainorlossonfinancialassetsatFVTPL;

–

 theforeigncurrencygainorlossonfinancialassetsandfinancialliabilities;

–

 impairmentlosses(andreversals)oninvestmentsindebtsecuritiescarriedatamortizedcostorFVOCI;

–

 thenetgainorlossonthedisposaloffinancialassets

measuredatamortizedcost;

–

 hedgeineffectivenessrecognizedinprofitorloss;and

–

 paymentguaranteefee;and



Interestincomeorexpenseisrecognizedusingtheeffectiveinterestmethod.

(17)Incometaxes

TheGlobalMinimumTaxpaidinaccordancewithPillar2rulesisthecorporatetaxsubjecttothe

application of

CorporateTax(K‐IFRSNo.1012).TheGroupappliestemporaryrelieffromdeferredtaxaccountingtreatmentdue

totheimpactoftheGlobalMinimumTax.TheGroupwillaccountforthecurrenttaxwhenthePillar2corporate

taxisincurred.



(18)Operatingsegment



TheGroupconsists

ofenergysolutionsegmentandelectronicmaterialssegment,eachbeingthestrategicsales

unitoftheGroup.Strategicsalesunitsareoperatedseparatelybecauseeachsegmentismanufacturingdifferent

productsrespectivelyandrequiresdifferenttechnologiesandmarketingstrategies.



The performance of the operating segment is assessed based on profit attributable to

 owners of the Parent

Company of each segment, which is considered to be useful for the management to compare the Group’s

performanceinaspecificsegmentwithothercompaniesinthesameindustry.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(19)EmissionsRights



TheGroupaccountsforgreenhousegasesemissionrightandtherelevantliabilityasbelowpursuanttotheAct

onAllocationandTradingofGreenhouseGasEmission.



1)GreenhouseGasesEmission

Right



GreenhouseGasesEmissionRightconsistsofemissionallowanceswhichareallocatedfromthegovernmentfree

ofchargeorpurchasedfromthemarket.Freeallocationallowancesaremeasured and recognizedatzeroand

purchased emission permits are recognized at acquisition cost by adding other costs directly related to the

acquisition

andnormallyincurred.



Emissionrightsheldforthepurposeofperformingtheobligationisclassifiedasintangibleassetandisinitially

measuredatcostandafterinitialrecognition,arecarriedatcostlessaccumulatedimpairmentlosses.Partstobe

submittedtothegovernmentwithinoneyearfromtheendof

thereportingperiodareclassifiedascurrentassets.



Emissionrightsheldforshort‐swingprofitsareclassifiedascurrentassetandaremeasuredatfairvaluewithany

changesinfairvaluerecognizedasprofitorlossintherespectivereportingperiod.



TheGroupderecognizesanemissionrightassetwhen

theemissionallowanceisunusable,disposedorsubmitted

togovernmentinwhichthefutureeconomicbenefitsarenolongerexpectedtobeprobable.



2)Emissionliability



Emissionliabilitiesarepresentobligationstosubmitemissionpermitstothegovernmentandaremeasuredby

adding up the carrying amount of the

emission permits and the estimated expenditure required to meet the

obligationsforexcessemission.Emissionliabilitiesarederecognizedwhensubmittedtothegovernment.



(20)Lease



1)Asalessee



Atcommencementor on modificationof a contractthatcontains a leasecomponent,the Groupallocatesthe

considerationinthe

contracttoeachleasecomponentbasedonitsrelativestand‐aloneprices.However,forthe

leasesofpropertytheGrouphaselectednottoseparatenon‐leasecomponentsandaccountfortheleaseand

non‐leasecomponentsasasingleleasecomponent.



The lease liability is initially measured at the present

 value of the lease payments that are not paid at the

commencement date, discounted usingthe interest rateimplicit inthe lease or, if that rate cannotbe readily

determined,theGroup'sincrementalborrowingrate.



TheGrouphaselectednottorecognizeright‐of‐useassetsandleaseliabilitiesfor

leasesoflow‐valueassetsand

short‐term leases. The Group recognize the lease payments associated with these leases as an expense on a

straight‐linebasisovertheleaseterm.TheGrouppresentsright‐of‐useassetsthatdonotmeetthedefinitionof

investmentpropertyin'property,plantand

equipment'andleaseliabilitiesintradeand otherpayables'inthe

statementoffinancialposition.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

4.MaterialAccountingPolicies,Continued



(20)Lease,Continued



2)Asalessor



Whenthe Groupacts asa lessor,it determinesat lease inception whether each leaseis afinance lease or an

operatinglease. To classifyeachlease,

theGroup makes an overallassessmentof whether theleasetransfers

substantiallyalltherisksandrewardsincidentaltoownershipoftheunderlyingasset.Aspartofthisassessment,

theGroupconsiderscertainindicatorssuchaswhethertheleaseisforthemajorpartoftheeconomiclifeofthe

asset.



(21)Newstandardsandinterpretationsnotyetadopted



ThefollowingnewstandardhasbeenpublishedbutisnotmandatoryfortheGroupforannualperiodbeginning

onJanuary1,2023,andtheGrouphasnotearlyadoptedthem:



‐K‐IFRS1001‘PresentationofFinancialStatements’‐Current/non‐currentclassification

ofliabilities.



ThefollowingnewandamendedstandardsarenotconsideredtohaveanysignificantimpactontheGroup:



‐Saleandleasebacktransactions(K‐IFRSNo.1116'Lease')

‐LackofExchangeability(K‐IFRSNo.1021'TheEffectsofChangesinForeignExchangeRates')

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement

TheGrouphasexposuretothecreditrisk,liquidityriskandmarketrisk.Thisnotepresentsinformationaboutthe

Group’s exposure to each of the above risks, the Group’s objectives, policies, and pr ocesses for measuring and

managing risk, andthe Group’s management of capital. Furtherquantitativedisclosuresareincluded throughout

theseconsolidatedfinancialstatements.

(1)Creditrisk



CreditriskistheriskoffinanciallosstotheGroupifacustomerorcounterpartytoafinancialinstrumentfailsto

meet its contractual obligations. The Group’s exposure 

to credit risk is influenced mainly by the individual

characteristics of each customer. Most customers have been transacting with the Group for many years and

impairmentlosshasnotoccurredveryoften.Inaddition,theGroupreviewscreditratingofnewcustomersprior

tothedeterminationofpaymenttermsandalso

re‐examinesthecreditratingofexistingcustomersonaregular

basis.



TheGroup setsallowances forestimated losses fromaccountsreceivable andfinancialassets.In addition, the

Group reports presentconditions andcountermeasures of delayed recovery for the financialassets andtakes

reasonablestepsdependingonthereasonsfor

delayinordertomanagethecreditrisk.Inaddition,theGroup

hedgescreditrisksbyenteringintoinsurancecontractsforsomefinancialassets.



1)Exposuretocreditrisk



Thecarryingamountoffinancialassetsrepresentsthemaximumcreditexposure.TheGrouplimitsitsexposure

tocredit risk bydepositing

 cash and cash equivalentsinfinancial institutions thathave ahighcredit rate.The

maximumexposure to credit riskatthereportingdate as ofDecember31,2023and2022are summarized as

follows:

(Inthousandsofwon) 2023 2022

Cashandcashequivalents W

1,523,001,371



2,612,660,171

Tradeandotherreceivables,net



3,300,525,044



2,824,178,592

Governmentbonds



329,030



232,805

Non‐derivativefinancialinstruments



550,107,808



483,088,601

Guaranteedeposits



108,433,754



92,869,643

Total W

5,482,397,007



6,013,029,812



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement,Continued

(1)Creditrisk,continued



2)Impairmentloss



TheagingoftradeandotherreceivablesandrespectiveimpairedamountsasofDecember31,2023and2022are

asfollows:



(2)Liquidityrisk



Liquidity risk

 is the risk that the Group will encounter difficulty in meeting the obligations associated with its

financialliabilitiesthataresettledbydeliveringcashoranotherfinancialasset.TheGroup’sapproachtomanaging

liquidityistoensure,asfaraspossible,thatitwillalwayshaveenoughliquiditytomeet

itsliabilitieswhendue,

under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the

Group’sreputation.



TheGroupmonitorsitscashflowsthroughlong‐termandshort‐termmanagementstrategiesandensuresithas

sufficientcashondemandtomeetexpectedoperationalexpenses.Thisexcludesthe

potentialimpactofextreme

circumstancesthatcannotreasonablybepredicted.



The Group establishes short‐term and long‐term cash management plans to manage liquidity risk. The Group

matchesmaturitystructuresoffinancialassetsandliabilitiesthroughanalyzingandreviewingcashflowbudget

andactualcashflow.Managementbelievesthatthe

Groupcanredeemitsfinancialliabilitiesthroughoperating

cashflowsandcashinflowsoffinancialassets.



MaturityanalysisoffinancialliabilitiesasofDecember31,2023isasfollows:



(Inthousandsofwon)



Carryingamount

Contractual

Cashflow1Yearorless

Morethan1year

andlessthan

5years



Morethan5

years

Tradeandother

 payable(*)  W 4,639,646,03 0 4,673,527,636 4,098,308,261 555,707,306 19,512,069

Short‐termborrowings2,868,274,952 2,891,483,090 2,891,483,090 ‐ ‐

Long‐termborrowings  2,849,524,920 3,144,774,094 124,735,225 3,020,038,869 ‐

Total W

10,357,445,902 10,709,784,820 7,114,526,576 3,575,746,175 19,512,069



(*)

Trade and other payable

 includes cash flowsrelated to lease liabilities. More details are includedin Note 31

Lease.

2023



2022

(In thousands

ofwon)



Gross Not‐impaired Impairment



Gross Not‐impaired Impairment

Notpastdue W 3,150,695,296



3,150,695,296



‐



2,732,455,088



2,732,455,088



‐

Past due 1‐30

days



93,111,042



93,111,042



‐



91,736,918



91,700,098



36,820

Pastdue31‐60

days



54,187,841



54,187,841



‐



22,058



22,058



‐

Past due over

61days



2,530,865



2,530,865



‐



1,655



1,348



307

Total

W

3,300,525,044



3,300,525,044



‐



2,824,215,719



2,824,178,592



37,127

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement,Continued



(3)Marketrisk



Marketrisk is the riskthatchanges inmarketprices, such asforeignexchangerates, interest ratesand equity

priceswillaffectthevalueofitsholdingsoffinancialinstrumentsor

riskoffluctuationsincashflows.Theobjective

ofmarketriskmanagementistomanageandcontrolmarketriskexposureswithinacceptableparameters,while

optimizingthereturn.



1)Exchangeraterisk

The Group has exposure to the exchange rate risk for the sale, purchase, and borrowing of currencies not

denominated

infunctionalcurrency.MaincurrenciesusedforthesetransactionsareUSD,EURandetc.TheGroup

continuouslymonitors changesin futureexchangeratesandmanages them tominimize the impactofforeign

exchangeriskontheGroup.



Carryingamountsofmonetaryassetsandliabilitiesexpressedasotherthanfunctionalcurrencyas

ofDecember

31,2023and2022areasfollows:

(Inthousandsofwon) Financialassets



Financialliabilities



2023



2022



2023



2022

Currency



USD W 4,463,088,496



5,122,251,285



4,431,197,780



5,079,489,325

EUR



77,228,589



321,095,099



64,824,267



223,497,365

etc.



368,801,920



310,992,927



521,102,756



365,614,866



(*)Theamountsofassetsandliabilitiesbycurrencyarethefiguresbeforeinternaltransactionsareeliminated.



ThefollowingexchangerateswereappliedduringtheyearsendedDecember31,2023and2022:

(Inwon)



Averagerate



Reportingdatespotrate

Currency



2023



2022



2023



2022

USD W 1,306.12



1,291.15



1,289.40



1,267.30

EUR



1,412.67



1,357.35



1,426.59



1,351.20

      

Effectsonincome(loss)afterincometaxesasaresultofchangeinexchangerateasofDecember31,2023and

2022areasfollows:

(Inthousandsofwon) 2023



2022

Currency



Ifincreasedby

5%

Ifdecreasedby

5%



Ifincreasedby

5%

Ifdecreasedby

5%

USD W 1,173,578



(1,173,578)



1,573,640



(1,573,640)

EUR



456,479



(456,479)



3,591,597



(3,591,597)

etc.



(5,604,671)



5,604,671



(2,010,087)



2,010,087





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement,Continued

(3)Marketrisk,continued



2)Interestraterisk



(i)TheinterestrateprofileoftheGroup’sinterest‐bearingfinancialinstrumentsasofDecember31,2023and2022

aresummarizedasfollows:



(Inthousandsofwon)



2023



2022

Fixedinterestrate:



Assets



Short‐term&Long‐term

FinancialAssets W 550,107,808



483,088,601

Sub‐total



550,107,808



483,088,601

Liabilities



Short‐termborrowings W 1,183,024,326



1,472,578,128

Long‐termborrowings



213,988,500



405,360,000

Sub‐total



1,397,012,826



1,877,938,128



Variableinterestrate:



Liabilities

Short‐termborrowings W

1,685,250,626 1,378,605,086

Long‐termborrowings



2,635,536,420



1,891,680,000

Sub‐total



4,320,787,046



3,270,285,086



(ii)Cashflowsensitivityanalysisforvariablerateinstruments



Underassumptionthatallothervariablesremainconstant,changeofonepercentpointininterestratewould

haveincreased (decreased)incomeafterincometaxesbytheamountsshownbelowasofDecember31,2023

and2022.

(Inthousandsofwon)



2023



2022



Ifincreased

Ifdecreased



Ifincreased

Ifdecreased

by1% by1% by1% by1%

Variablerateinstruments

W

(31,800,993)



31,800,993



(24,069,298)



24,069,298



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement,Continued

(3)Marketrisk,continued



3)Othermarketpricerisk



MarketpriceriskarisesfromtheequityinstrumentsatfairvaluethattheGrouppossesses.Majorinvestments

withintheportfolioaremanagedseparatelyandtheapproval

oftheBoardofDirectorsisnecessaryforsignificant

acquisitionordisposaldecisions.



TheeffectonnetassetswhenthepriceoflistedequityfinancialassetsthattheGrouppossesseschangedbyfive

percentpointsasofDecember31,2023isasfollows:

(Inthousandsofwon)



2023

Ifincreasedby5% Ifdecreasedby5%

Impactonnetassets

W

43,933,111



(43,933,111)



(4)Capitalmanagement



TheGroup’scapitalmanagementistomaintainasoundcapitalstructureandtomaximizeshareholders’profit.

TheGroupusesfinancialratiossuchasdebtratioandnetborrowingsratioasacapitalmanagementindicatorto

achievetheoptimumcapitalstructure.Debttoequityratioiscalculatedas

totaldebtdividedbytotalequityand

netborrowingstoequityratioiscalculatedasnetborrowingsdividedbytotalequity.



(Inthousandsofwon) 2023 2022

Debttoequityratio:

Totalliabilities W 14,131,610,215



13,040,023,015

Totalequity



19,907,249,978



17,217,502,156

Debttoequityratio



70.99%



75.74%



Netborrowingstoequityratio:



 Borrowings  W 5,717,799,872



5,148,223,214

Less:Cashandcashequivalents



(1,524,461,361)



(2,614,271,850)

Less:Short‐termfinancialinstruments



(550,068,407)



(483,069,101)

 Netborrowings W 3,643,270,104



2,050,882,263

 Netborrowingstoequityratio



18.30%



11.91%



 

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement,Continued

(5)Fairvalues



1)Fairvalueversuscarryingamounts



Thefairvaluesoffinancialassetsandliabilities,togetherwiththecarryingamountsshowninthestatementof

financialposition,asofDecember31,2023

and2022aresummarizedasfollows:

(Inthousandsofwon)



2023



2022



Carryingamount Fairvalue



Carryingamount

Fairvalue

Financialassets:

Assetscarriedatfairvalue

EquityInstruments W

1,307,409,902



1,307,409,902



1,204,354,393



1,204,354,393

Derivativefinancialassets



7,031,294



7,031,294



34,707,824



34,707,824

Subtotal



1,314,441,196



1,314,441,196



1,239,062,217



1,239,062,217

Assetscarriedatamortizedcost

Cashandcashequivalents



1,524,461,361



(*1)



2,614,271,850



(*1)

Tradereceivablesandotherreceivables



3,300,525,044



(*1)



2,824,178,592



(*1)

Governmentbonds



329,030



(*1)



232,805



(*1)

Financialinstruments



550,107,808



(*1)



483,088,601



(*1)

Guaranteedeposits



108,433,754



(*1)



92,869,643



(*1)

Subtotal 5,483,856,997 6,014,641,491

Totalfinancialassets W 6,798,298,193



7,253,703,708



Financialliabilities:

Liabilitiescarriedatfairvalue

Derivativefinancialliabilities W

‐



‐



139,830



139,830

Liabilitiescarriedatamortizedcost

Borrowings W 5,717,799,872



(*1)



5,148,223,214



(*1)

Tradeandotherpayables(*2)



4,639,646,030



(*1)



4,535,542,047



(*1)

Subtotal



10,357,445,902



9,683,765,261



Totalfinancialliabilities W 10,357,445,902



9,683,905,091



(*1)Bookvalueisareasonableapproximationoffairvalue,soithasbeenexcludedfromthefairvaluedisclosure.



(*2)Includingleaseliabilities



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement,Continued

(5)Fairvalues,continued



2)Fairvaluehierarchy



TheGroupclassifiesconsolidatedfinancialinstrumentscarriedatfairvalueinthestatementoffinancialposition

accordingto fair valuehierarchywhich reflects significance of inputvariables

 used. The different levelsof fair

valuehierarchyhavebeendefinedasfollows:



“Level1”indicatesquotedpricesinactivemarketsforidenticalassetsorliabilities.Instrumentsincludedin“Level

1”aremostlycomposedoflistedequitysecuritiesthatareclassifiedasFVOCIfinancialassets.



TheGroupusesavaluation

techniquetoestimatefairvaluesoffinancialinstrumentswhicharenottradedinan

activemarket.Ifthesignificantinputswhicharerequiredforafairvaluemeasurementareobservabledirectlyor

indirectlyinamarket,thefairvalueinputisclassedas“Level2”.TheGrouptradesderivativessuchas

currency

forwardsandcommodityfuturesandmeasuresthefairvalueofthederivativesusingchangesinpricesthatare

directlyorindirectlyobservableinthemarket.TheGroupincludesthefairvalueofthesederivativesas“Level2”.



Ontheotherhand,ifthesignificantinputsarenotbasedon

observablemarketdata,thefairvalueinputforthat

instrumentisclassedas“Level3”.



Amongunlistedequitysecurities,thefairvaluesofSamsungVentureInvestmentCorporation,iMarketAsia,and

theKoreaEconomicDailyCo.,Ltdarecalculatedusingdiscountedcashflowmodelwithintheincomeapproach

method. Other evaluated equity

 securities were valued based on fair value calculated using the per‐share

evaluated amount determined by the net asset value method. These unlisted equity securities are classed as

“Level3”.



ThevaluationtechniquesusedinmeasuringLevel3fairvalue,aswellasthesignificantunobservableinputsused

areas

follows:



Valuation

techniques



Significant

unobservableinputs



Inter‐relationshipbetweenkey

unobservableinputsandfairvalue

measurement

Financialassets

atFVPL



Discounted

cashflow

method,Net

assetmethod



Discountrate,

Perpetualgrowthrate,

Netasset



Theestimatedfairvaluewould

increases(decreases)ifthediscount

rateswerelower(higher),

perpetual

rateswerehigher(lower),andnetasset

valuewerehigher(lower).





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

5.FinancialRiskManagement,Continued

(5)Fairvalues,continued



ThefairvaluesoffinancialinstrumentsbasedonthefairvaluehierarchyasofDecember31,2023and2022are

summarizedasfollows:

(Inthousandsofwon)



Level1



Level2



Level3



Total

December31,2023:



Financialassets



Equityinstruments W

1,193,834,547



‐



113,575,355



1,307,409,902

Derivativeassets



‐



7,031,294



‐



7,031,294



December31,2022:



Financialassets



EquityInstruments W 1,093,132,877



‐



111,221,516



1,204,354,393

Derivativeassets



‐



34,707,824



‐



34,707,824

Financialliabilities



Derivativeliabilities‐139,830‐139,830



(6)Transferoffinancialassetsandothers



TheGroup received cashandtransferred trade receivables to financialinstitutions. As theGroupcontinuesto

retainsubstantiallyalltherisksand rewardsofownership,thetradereceivableshavenotbeenderecognizedfrom

thestatementoffinancialposition. The amountreceivedat

thetimeof transfer was recognizedas short‐term

borrowings.FinancialassetstransferredbutnotderecognizedasofDecember31,2023and2022,areasfollows:





(Inthousandsofwon)



Tradereceivables



2023



2022

Carryingamountofassets



W



1,183,024,326



1,252,676,717

Carryingamountofassociatedliabilities



1,183,024,326



1,252,676,717

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

6.SegmentsInformation

(1)Operatingsegments

1)Themainbusinessesbysegmentareasfollows:



Segment

Mainbusiness

Energysolutions

Manufacturingandsalesofsecondarybatteriessuchasautomotivebatteries.

Electronicmaterial

Manufacturingandsalesofsemi‐conductoranddisplaymaterials



2)Theoperatingsegmentsoftheconsolidatedgrouparedecidedbymanagement,whichisestablishedforstrategic

decision making. Management reviews the operating income for each operating segment in order to allocate

resources to each segment and assess the segments’ performance. Sales consist mostly of sales of goods. The

following

tableprovidesinformationforeachreportablesegmentfortheyearsendedDecember31,2023and2022.

2023



(Inthousandsofwon)



Energysolutions



Electronic

material



Total



Revenues W

20,406,099,943



2,302,200,556



22,708,300,499

Depreciation



1,584,571,667



75,086,049



1,659,657,716

Amortization



61,601,714



6,712,346



68,314,060

Operatingprofit W

1,342,418,303



290,950,662



1,633,368,965



2022



(Inthousandsofwon)



Energysolutions



Electronic

material



Total



Revenues W

17,566,241,978



2,557,827,538



20,124,069,516

Depreciation



1,313,658,924



94,441,455



1,408,100,379

Amortization



49,053,277



6,179,599



55,232,876

Operatingprofit W

1,253,824,677



554,188,336



1,808,013,013

Totalassetsandtotalliabilitiesofeachsegmentarenotpresentedseparatelysincetheinformationisnotprovided

tothemanagementonaregularbasis.



3) As of December 31, 2023, contract liabilities resulting from contracts with cust omers amounted to

671,987million,andamongthecontractliabilitiesfortheyearendedDecember31,2022,theamountrecognizedas

revenueintheyearendedDecember31,2022was

W174,609million.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

6.SegmentsInformation,Continued

(2)Geographicalinformation



TheGroupoperatesin globalmarketssuchasRepublicofKorea(theParentCompany’sdomicile),NorthAmerica,

Europe,China,SoutheastAsia,andsoon.Thefollowingtableprovidesrevenueandmajornon‐current

assetsfor

eachgeographicalregionasofandfortheyearsendedDecember31,2023and2022.

2023



2022

(Inthousandsof

won)

Revenue(*1)

Non‐current



Revenue(*1) 

Non‐current

Assets(*2)

Korea W

1,102,541,603



3,378,634,700



1,172,464,784



2,963,135,659

NorthAmerica



5,503,157,438



1,566,015,880



4,814,339,872



278,019,037

Europe



10,760,536,569



5,472,522,711



8,456,642,422



4,968,470,511

China



2,325,870,781



1,575,870,569



2,661,620,010



1,840,598,259

South‐eastern

Asiaandetc.



3,016,194,108



1,458,681,301



3,019,002,428



598,394,076

Consolidation

adjustments



‐



(552,126,851)



‐



(720,657,714)

Total W

22,708,300,499



12,899,598,310



20,124,069,516



9,927,959,828



(*1)Theexternalcustomeraccountingformorethan10%ofthegroup'ssalesisasinglecustomerrelatedtothe

European automotive battery sector, and the sales from the customer during the period is

￦

3,763,868

million(priorperiod:

￦

2,936,140million).



(*2) Non‐current assets include carrying amount of property, plant and equipment, intangible assets and

investmentproperty.

7.CashandCashEquivalents

CashandcashequivalentsasofDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)



2023



2022

Cashonhand W

1,459,990



1,611,679

Demanddeposits



1,334,800,678



1,442,661,935

Short‐terminvestments



188,200,693



1,169,998,236

Total W

1,524,461,361



2,614,271,850



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

8. TradeandOtherReceivables

(1)TradeandotherreceivablesasofDecember31,2023and2022aresummarizedasfollows:

(Inthousandsofwon)



2023



2022



Current

Non‐

current



Current

Non‐

current

Loans W

133,876



37,359,064



4,411,368



6,854,298

Presentvaluediscount



‐



(3,639,227)



‐



(4,049)

Otheraccount

receivables



172,920,677



19,382



289,836,029



29,074

Accruedincome



97,475,998



‐



10,091,932



‐

VATreceivables



136,083,230



‐



116,515,530



‐

Tradeaccount

receivable(Receivables)



2,874,926,035



‐



2,419,225,985



‐

Tradeaccount

receivable

(ContractAssets)



121,329,239



‐



93,771,082



‐

Allowance



‐



‐



(37,127)



‐

Total W

3,402,869,055



33,739,219



2,933,814,799



6,879,323



(2) Changes in allowance for trade and other receivables for the years ended December 31, 2023 and 2022 are

summarizedasfollows:

(Inthousandsofwon)



2023



2022

Balanceatbeginning W

37,127



129,975

ReversalofBaddebtexpense



(38,377)



(90,503)

Exchangeratefluctuation



1,250



(2,345)

Balanceatending W ‐ 



37,127

9.Inventories

(1)InventoriesasofDecember31,2023and2022aresummarizedasfollows:



1)2023

(Inthousandsofwon)



Acquisitioncost



Allowancefor

valuation



Bookvalue

Finishedgoods W

451,997,208



(15,931,923)



436,065,285

Semi‐finishedgoods



1,320,012,128



(24,372,043)



1,295,640,085

Rawmaterials



918,929,489



(16,774,947)



902,154,542

Supplies



55,460,505



‐



55,460,505

Materials‐in‐transit



608,048,513



‐



608,048,513

Total W

3,354,447,843



(57,078,913)



3,297,368,930



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

9.Inventories,Continued

(1)InventoriesasofDecember31,2023and2022aresummarizedasfollows,continued:



2)2022

(Inthousandsofwon)



Acquisitioncost



Allowancefor

valuation



Bookvalue

Finishedgoods W

373,378,560



(16,379,688)



356,998,872

Semi‐finishedgoods



1,248,028,764



(30,172,256)



1,217,856,508

Rawmaterials



1,001,839,614



(27,312,516)



974,527,098

Supplies



55,584,671



‐



55,584,671

Materials‐in‐transit



599,548,686



‐



599,548,686

Total W

3,278,380,295



(73,864,460)



3,204,515,835



(2)Theamountof inventories expensed ascost ofsalesand losson valuation of inventories for the yearsended

December31,2023and2022areasfollows:

(Inthousandsofwon)



2023



2022

Inventoriesrecognizedascostofsales W

18,743,515,101



15,893,496,809

Reversalofvaluationofinventories 



(17,131,010)



9,826,025

Total W

18,726,384,091 15,903,322,834

10.OtherInvestments

(1)OtherinvestmentsasofDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)



2023



2022



Current

Non‐current

Total



Current

Non‐current

Total

Governmentbonds W 59,450 269,580 329,030 31,560 201,245 232,805

Equityinstruments



‐ 1,307,409,902 1,307,409,902 ‐ 1,204,354,393 1,204,354,393

Financialinstruments



550,068,407 39,401 550,107,808 483,069,101 19,500 483,088,601

Guaranteedeposits



51,970,644 56,463,110 108,433,754 51,561,444 41,308,199 92,869,643

Total W

602,098,501 1,364,181,993 1,966,280,494 534,662,105 1,245,883,337 1,780,545,442

 

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

10.OtherInvestments,Continued

(2)Available‐for‐salefinancialassetsasofDecember31,2023and2022aresummarizedasfollows:

Unrealizedgain(loss)



(Inthousandsofwon)

Acquisitioncost



Beginning

balance

Changesin

unrealizedgain

orloss Endingbalance



Carrying

amount

2023



FVOCI



Listedequityinstruments W 703,754,183



236,023,295



88,136,823



324,160,118



1,027,914,301

Unlistedequity

instruments



18,653,588



50,672,767



526,273



51,199,040



69,852,628

FVTPL



Listedequityinstruments W 39,799,977



113,555,422



12,564,847



126,120,269



165,920,246

Unlistedequity

instruments



16,220,244



28,669,916



(1,167,433)



27,502,483



43,722,727

 Total W

778,427,992



428,921,400



100,060,510



528,981,910



1,307,409,902



2022



FVOCI

Listedequityinstruments W 703,754,183



377,994,346



(141,971,051)



236,023,295



939,777,478

Unlistedequity

instruments



18,658,588



34,428,502



16,244,265



50,672,767



69,331,355

FVTPL



Listedequityinstruments W 39,799,982



85,096,266



28,459,151



113,555,417



153,355,399

Unlistedequity

instruments



16,041,663



31,470,852



(5,622,354)



25,848,498



41,890,161

 Total W

778,254,416



528,989,966



(102,889,989)



426,099,977



1,204,354,393



The corporate tax eff ect deducted from equity due to cumulative valuation gain(loss) arising from other

comprehensive income securities amounted to

W 99,095 million at the end of the current period and W 75,688

millionattheendofthepreviousperiod.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

11.OtherCurrentAssetsandNon‐currentAssets



Othercurrentandnon‐currentassetsasofDecember31,2023and2022aresummarizedasfollows:

(Inthousandsofwon)



2023



2022



Current Non‐current



Current Non‐current

Advancepayments W

177,169,254



14,574,430



167,439,358



18,000,640

Prepaidexpenses



154,742,623



78,606,049



152,050,078



119,714,371

Prepaidincometax



21,288,175



‐



16,310,966



‐

Total W

353,200,052



93,180,479



335,800,402



137,715,011

12.InvestmentsinAssociates

(1) The equity‐methodaccountedinvesteesof the Groupas of December 31, 2023 and 2022aresummarizedas

follows:



(Inthousandsofwon)

     2023 2022

Associates:



Country

 Dateof

financial

statements



Primarybusiness

 Percentage

of

ownership

Carrying

amount

Percentage

of

ownership

Carrying

amount

SamsungDisplay

 Ltd.(“SDC”)(*1)



Korea



December31



Manufacturing

andsaleof

OLED



15.2%9,707,290,928 15.2%8,760,865,210

SamsungGlobal

ResearchCo.,

 Ltd.(“SERI”)



Korea



December31



Management

advisory

consulting



29.6% 23,826,882 29.6% 23,964,873

IntellectualKeystone

Technology("IKT")



U.S.A



December31



Investinginnew

technology



41.0% 8,681,627 41.0% 9,137,212

SDFlexCo.,Ltd.



Korea



December31



Manufacturing

printed‐circuit

board



50.0% 10,274,181 50.0%

12,982,344

ECOPROEMCo.,Ltd.

(*2)

Korea

December31



Anodematerial

manufacturing



40.0% 223,696,155 40.0% 125,156,333

PhilenergyCo.,Ltd.

(*3)

Korea

December31



StackEquipment



14.1% 17,114,008 20.0% 5,506,831

SecondaryBattery

GrowthFund(*4)

 Korea



December

31

 Investingin

secondary

batteryR&D

33.3%  5,349,652 33.3%  2,669,452

Tota l

W 9,996,233,433 W 8,940,282,255



(*1)AlthoughtheGroupownslessthan20%ofitssharesandvotingrights,theGrouphasclassifiedthesharesequity‐

accountedinvesteesduetothefactthattheGrouphasrepresentationsintheboardofdirectorsofSDC.



(*2)Duringthecurrentperiod,theGroupmadeanadditionalinvestment

ofW40,000milliontoECOPROEM.



(*3)

Duringthecurrentperiod,theGroup'sequitysecuritiesofPhilenergyCo.,Ltd.heldbytheGroupweredecreased

from 20% to 14.1% due to the increase in the number of shares outstanding due to the third‐party paid‐in capital

increaseandtheconversionofthird‐partyconvertiblebonds.Althoughthe

Groupownslessthan20%ofitssharesand

voting rights, the Group has classified the shares equity‐accounted investees due to the fact that the Group has

representationsintheboardofdirectorsofPhilenergy.



(*4) During the current period, the Group made an additional investment of

W 2,680 million to Secondary Battery

GrowthFund. 

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

12.InvestmentsinAssociates,Continued



(2)Thesummarizedfinancialinformationofequity‐accountedinvesteesasofandfortheyearsendedDecember31,

2023and2022aresummarizedasfollows:



1)2023



(Inthousandsofwon)

SDCSERI IKT

SDFLEX



Currentassets W

24,721,410,294 118,952,880 21,087,063 13,505,167



Non‐currentassets

46,413,723,496 66,501,823 88,896 8,474,099



Currentliabilities

5,821,884,881 87,546,036 1,258 1,421,722



Non‐currentliabilities

1,485,249,760 17,412,446 ‐ 9,183



Revenue

30,950,579,238 219,537,369 ‐ 13,843,866



Operatingprofit(loss)

5,501,751,056 (219,077) (1,519,265) (1,739,215)



Netincome(loss)

6,331,238,839 157,998 (1,519,265) (1,396,025)



Othercomprehensive

 income(loss)

(108,690,007) (852,741) ‐ ‐



Totalcomprehensiveincome

(loss)



6,222,548,832 (694,743) (1,519,265) (1,396,025)



Dividendsreceivedfrom

associates

‐  ‐  ‐  2,000,000



(Inthousandsofwon)

ECOPROEMPhilenergy

SecondaryBattery

GrowthFund.



Currentassets W

1,304,244,823

198,630,575



608,297



Non‐currentassets574,964,988

56,071,659



15,443,401



Currentliabilities1,183,597,858

115,001,826



2,743



Non‐currentliabilities126,345,610

10,125,509



‐



Revenue3,771,340,006

196,717,748



39,730



Operatingprofit(loss)225,225,576

15,594,145



599



Netincome(loss)159,477,241

(4,672,387)



599



Othercomprehensive

 income(loss)

‐

‐



‐



Totalcomprehensiveincome

(loss)

159,477,241



(4,672,387)



599



Dividendsreceivedfrom

associates

‐ 

‐



‐





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

12.InvestmentsinAssociates,Continued

2)2022



(Inthousandsofwon)

SDCSERI IKT

SDFLEX



Currentassets

W

42,082,412,387 113,024,754 21,114,966 21,422,255



Non‐currentassets



23,070,657,947 65,781,408 1,170,704 6,616,255



Currentliabilities



6,294,310,360 82,723,644 ‐ 2,052,247



Non‐currentliabilities



1,220,097,025 15,120,109 ‐ 21,576



Revenue



34,298,283,448 228,696,932 ‐ 20,495,032



Operatingprofit(loss)



5,883,246,706 2,351,801 (6,994,635) 3,752,772



Netincome(loss)



6,614,496,361 241,375 (6,994,635) 3,345,275



Othercomprehensiveincome

(loss)

(67,942,352) (7,638,018) ‐ ‐



Totalcomprehensive

income

(loss)

6,546,554,009 (7,396,643) (6,994,635) 3,345,275

Dividendsreceivedfrom

associates

‐  ‐  ‐  2,000,000



   



(Inthousandsofwon)

ECOPROEMPhilenergy

SecondaryBattery

GrowthFund.



Currentassets W

728,334,706 119,823,834 1,401,999

Non‐currentassets

435,237,418 20,488,863 6,608,947

Currentliabilities

651,423,402 79,042,153 2,590

Non‐currentliabilities

199,358,922 36,576,586 ‐

Revenue

2,005,446,165 189,709,754 21,950

Operatingprofit(loss)

125,212,107 16,842,728 (29,818)

Netincome(loss)

101,703,395 3,768,226 (29,818)

Othercomprehensiveincome

(loss)

‐  ‐  ‐ 

Totalcomprehensiveincome

(loss)

101,703,395 3,768,226 (29,818)

Dividendsreceivedfrom

associates

‐  ‐  ‐ 





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

12.InvestmentsinAssociates,Continued

(3)Thecomparisonbetweencarryingamountoftheinvestmentsandtheinvestees’netassetsbasedontheGroup’s

percentageofownershipasofDecember31,2023and2022aresummarizedasfollows:



1)2023



(Inthousandsofwon)SDCSERI IKTSDFLEX



Netassets(a)(*) W

63,863,756,108 80,496,221 21,174,701 20,548,361



Percentageofownership(b) 15.2% 29.6% 41.0% 50.0%



Equitytonetassets(axb)9,707,290,928 23,826,882 8,681,627 10,274,181



DifferenceofInvestments  ‐  ‐  ‐  ‐



Carryingamount W 9,707,290,928 23,826,882 8,681,627 10,274,181



(Inthousandsofwon)ECOPROEMPhilenergy

Secondary

BatteryGrowth

Fund.



Netassets(a)(*) W

559,240,388 112,212,599 16,065,020

Percentageofownership(b) 40.0% 14.1% 33.3%

Equitytonetassets(axb)223,696,155 15,821,977 5,349,652

DifferenceofInvestments ‐1,292,031 ‐

Carryingamount W

223,696,155 17,114,008 5,349,652

(*)Netassetsarethenetassetsofassociatesminusnon ‐controllinginterests.

2)2022



(Inthousandsofwon)SDCSERI IKTSDFLEX



Netassets(a)(*) W

57,637,271,122 80,962,410 22,285,881 25,964,688



Percentageofownership(b) 15.2% 29.6% 41.0% 50.0%



Equitytonetassets(axb)8,760,865,210 23,964,873 9,137,212 12,982,344



DifferenceofInvestments  ‐  ‐  ‐  ‐



Carryingamount W

8,760,865,210 23,964,873 9,137,212 12,982,344



(Inthousandsofwon)ECOPROEMPhilenergy

Secondary

BatteryGrowth

Fund.



Netassets(a)(*) W

312,890,831 18,399,974 8,016,372

Percentageofownership(b) 40.0% 20.0% 33.3%

Equitytonetassets(axb)125,156,333 3,679,994 2,669,452

DifferenceofInvestments ‐1,826,837 ‐

Carryingamount W

125,156,333 5,506,831 2,669,452



(*)Netassetsarethenetassetsofassociatesminusnon ‐controllinginterests.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

12.InvestmentsinAssociates,Continued

(4)Changesinin vestmentsinequity‐accountedinvesteesfortheyearsendedDecember31,2023and2022areas

follows:



1)2023



(Inthousandsofwon)

        

CompanyJanuary1,2023 Acquisition

Shareof

profits(loss)

Othercapital

movements

Gain(Loss)

ondisposal

ofequity

method

investment

Removalof

Dividends



December31,

2023



SDC

W

8,760,865,210 ‐ 962,805,669 (16,379,951)‐ ‐9,707,290,928

SERI



23,964,873 ‐ 60,328 (198,319)‐ ‐23,826,882

IKT



9,137,212 ‐ (622,899) 167,314‐ ‐8,681,627

SDFLEX



12,982,344 ‐ (708,163) ‐ ‐ (2,000,000) 10,274,181

ECOPROEM



125,156,333 40,000,000 58,716,930 (177,108)‐ ‐223,696,155

Philenergy



5,506,831 ‐ (3,013,630) (99,692) 14,720,499 ‐ 17,114,008

Secondary

Battery

GrowthFund



2,669,452 2,680,000 200 ‐ ‐ ‐ 5,349,652

Total W

8,940,282,255 42,680,0001,017,238,435 (16,687,756) 14,720,499 (2,000,000) 9,996,233,433



2)2022



(Inthousandsofwon)

        

CompanyJanuary1,2022 Acquisition

Shareof

profits(loss)

Othercapital

movements

Gain(Loss)

ondisposal

ofequity

method

investment

Removalof

Dividends



December31,

2022



SDC

W

7,765,314,543 ‐1,005,587,406 (10,036,739)‐ ‐8,760,865,210

SERI



26,146,557 ‐ 79,169 (2,260,853)‐ ‐23,964,873

IKT



11,180,577 ‐ (2,867,800) 824,435‐ ‐9,137,212

SEST



19,533,878 ‐ (6,296,889) 1,996,518 (15,233,507) ‐‐

SDFLEX



13,306,754 ‐ 1,675,590 ‐ ‐ (2,000,000) 12,982,344

ECOPROEM



44,457,379 40,000,000 40,929,961 (231,007)‐ ‐125,156,333

Philenergy



4,814,612 ‐ 599,781 92,438‐ ‐5,506,831

Secondary

Battery

GrowthFund



670,000 2,010,000 (10,548) ‐ ‐ ‐ 2,669,452

Total W

7,885,424,300 42,010,0001,039,696,670 (9,615,208) (15,233,507) (2,000,000) 8,940,282,255

(5)Nosignificantrestrictionexistsontheequity‐accountedinvestees’abilitytotransfermoneyintheformofcash

dividendsortorepayorreturnborrowingsoradvancestotheGroup.Inaddition,nocontingentliabilitiesrelatedto

interestsinassociateshasbeenidentified.





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

13.Property,PlantandEquipment 



Changesin property, plantandequipmentfor the years endedDecember 31,2023 and2022 are summarizedas

follows:



(1)2023

(Inthousandsofwon)



      





Land

Buildingsand

structuresMachinery

Tools,

furnituresand

fixtures

Rightofuse

assets

Constructionin

progress To tal 

Beginningbalance w

352,595,992 2,517,208,381 3,175,710,345 238,451,007 69,188,026 2,612,316,048 8,965,469,799

Acquisitioncost 352,595,992 4,621,115,978 7,830,524,099 884,204,089 99,237,957 2,612,316,048 16,399,994,163

Accumulated

depreciation

(including

impairmentand

government

grants)

‐  (2,103,907,597) (4,654,813,754) (645,753,082) (30,049,931) ‐ (7,434,524,364)

Acquisitionsand

capital

expenditure 86,732 11,301,494 12,839,358 59,645,675 40,728,597 4,038,623,128 4,163,224,984

Depreciation ‐(242,572,234) (1,231,728,364) (155,705,556) (29,465,937) ‐ (1,659,472,091)

Disposals(416,511) (244,883) (21,898,489) (1,411,091) (1,229,200) (5,031,542) (30,231,716)

Impairmentlosses ‐



‐



(1,129,678)



(583,765)



‐



‐ (1,713,443)

Other12,031,642 1,489,945,139 1,845,616,938 155,162,870 (2,346,071) (3,044,339,974) 456,070,544

Endingbalance w

364,297,855 3,775,637,897 3,779,410,110 295,559,140 76,875,415 3,601,567,660 11,893,348,077

Acquisitioncost 364,297,855 6,172,415,609 9,685,199,157 1,050,142,683 130,130,696 3,601,567,660 21,003,753,660

Accumulated

depreciation

(including

impairmentand

government

grants)

‐  (2,396,777,712) (5,905,789,047) (754,583,543) (53,255,281) ‐ (9,110,405,583)



Other amounts include reclassification of construction‐in‐progress to appropriate accounts such as investment

property,property,plantandequipment,andexpenseaccounts.Also,theyincludeexchangeratefluctuationand

changesingovernmentgrants.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

13.Property,PlantandEquipment,Continued



(2)2022



(Inthousandsofwon)



      





Land

Buildingsand

structuresMachinery

Tools,

furnituresand

fixtures

Right‐of‐use

assets

Constructionin

progress To tal 

Beginningbalance w

345,320,013 2,137,880,321 2,778,631,970 196,380,942 35,235,220 2,142,547,123 7,635,995,589

Acquisitioncost 345,320,013 4,076,457,298 6,655,250,486 790,459,938 83,079,072 2,142,547,123 14,093,113,930

Accumulated

depreciation

(including

impairmentand

government

grants)

‐(1,938,576,977) (3,876,618,516) (594,078,996) (47,843,852) ‐ (6,457,118,341)

Acquisitionsand

capital

expenditure 32,418 9,521,205 39,322,934 46,112,588 64,185,474 2,543,530,776 2,702,705,395

Depreciation ‐(160,258,777) (1,085,544,173) (136,735,623) (25,375,751) ‐ (1,407,914,324)

Disposals(19,605) (5,515,413) (100,130,393) (5,284,074) (1,288,492) (4,904,215) (117,142,192)

Impairmentlosses

‐  ‐  (25,886,445) (4,135,486) ‐ (1,063,595) (31,085,526)

Other

7,263,166 535,581,045 1,569,316,452 142,112,660 (3,568,425) (2,067,794,041) 182,910,857

Endingbalance w

352,595,992 2,517,208,381 3,175,710,345 238,451,007 69,188,026 2,612,316,048 8,965,469,799

Acquisitioncost 352,595,992 4,621,115,978 7,830,524,099 884,204,089 99,237,957 2,612,316,048 16,399,994,163

Accumulated

depreciation

(including

impairmentand

government

grants)

‐  (2,103,907,597) (4,654,813,754) (645,753,082) (30,049,931) ‐ (7,434,524,364)



Other amounts include reclassification of construction‐in‐progress to appropriate accounts such as investment

property,property,plantandequipment,andexpenseaccounts.Also,theyincludeexchangeratefluctuationand

changesingovernmentgrants.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

14.IntangibleAssets



ChangesinintangibleassetsfortheyearsendedDecember31,2023and2022aresummarizedasfollows:



(1)2023

(Inthousandsofwon)

Industrial

property



Development

costs



Others



Goodwill Total



Beginningbalance

W

62,068,072 ‐  142,827,839 610,035,252 814,931,163

Acquisitioncost



171,556,792 6,331,931 971,294,760 639,358,233 1,788,541,716

Accumulatedamortization

andimpairment



(109,488,720)



(6,331,931)



(828,466,921)



(29,322,981)



(973,610,553)

Acquisitions



2,361,356 ‐  10,170,519 ‐ 12,531,875

Amortization



(10,933,221) ‐  (57,380,839) ‐ (68,314,060)

Disposals



(1,223,341) ‐  (19,438) ‐ (1,242,779)

Impairmentlosses



‐ ‐  (2,045,303) ‐ (2,045,303)

Other



10,527,760 ‐  86,422,938 6,118,153 103,068,851

Endingbalance

W

62,800,626 ‐  179,975,716 616,153,405 858,929,747

Acquisitioncost



183,222,567 ‐  1,067,868,779 645,476,386 1,896,567,732

Accumulatedamortization

andimpairment



(120,421,941) ‐  (887,893,063) (29,322,981) (1,037,637,985)

Other amounts include reclassification of long‐term prepaid expenses to industrial property rights and of

construction‐in‐progress to other intangible assets. Also,theyinclude thechangesincurreddue toexchange rate

fluctuation.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

14.IntangibleAssets,Continued



(2)2022



(Inthousandsofwon)

Industrial

property



Development

costs



Others



Goodwill Total



Beginningbalance

W

63,471,064 ‐  126,123,771 609,316,233 798,911,068

Acquisitioncost



161,516,938 6,331,931 910,797,533 638,639,214 1,717,285,616

Accumulatedamortization

andimpairment



(98,045,874) (6,331,931) (784,673,762) (29,322,981) (918,374,548)

Acquisitions



1,987,067 ‐  2,596,799 ‐ 4,583,866

Amortization



(11,442,845) ‐  (43,790,031) ‐ (55,232,876)

Disposals



(313,604) ‐  (1,126,850) ‐ (1,440,454)

Impairmentlosses



‐ ‐  (3,128) ‐ (3,128)

Other



8,366,390 ‐  59,027,278 719,019 68,112,687

Endingbalance

W

62,068,072 ‐  142,827,839 610,035,252 814,931,163

Acquisitioncost



171,556,792 6,331,931 971,294,760 639,358,233 1,788,541,716

Accumulatedamortization

andimpairment



(109,488,720) (6,331,931) (828,466,921) (29,322,981) (973,610,553)



Other amounts include reclassification of long‐term prepaid expenses to industrial property rights and of

construction‐in‐progress to other intangible assets. Also,theyinclude thechangesincurreddue toexchange rate

fluctuation.



(3)Amortizationexpenses



Amortizationexpensesareclassifiedasmanufacturingcostandselling,generalandadministrativeexpenses,

and

theGrouprecognizesthemanufacturingcostascostofsaleswhentheinventoryissold.



(4)Researchanddevelopmentexpenses



Research anddevelopment expenses recognized as selling, general and administrative expenses for the years

endedDecember31,2023and2022areW1,136,361millionandW1,076,353million,respectively.



(5)ImpairmentofCGUincludinggoodwill



TheGroupperformedimpairmenttestonthegoodwillallocatedtoelectronicmaterialbusiness,andNovaled,a

cashgeneratingunit(“CGU”)respectively.



TheGroupestimatedrecoverableamountofelectronicmaterialbusinessandNovaled,basedonitsprojections

on5years’cashflowofeachCGU,

underassumptionofterminalgrowthrateat1%forbothCGUs,anddiscount

rateof10.95%and10.55%forelectronicmaterialbusinessandNovaled,respectively.Fairvaluemeasurements

are classified as Level 3 based on the inputs used in the valuation techniques. The Group did not recognize

impairmentlossesfor

theelectronicmaterialbusinessandNovaledastheestimatedvalueinuseexceededits

carryingamountofthecash‐generatingunit.



Asof December31, 2023,theGroup hasallocated W 498,275millionof its goodwill to itselectronic material

business,andW117,878milliontoNovaled.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

15.InvestmentProperty

ChangesininvestmentpropertyfortheyearsendedDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)

20232022



LandBuildings Total



LandBuildings Total



Beginningbalance



144,721,618 2,837,248147,558,866



144,786,443 5,623,734 150,410,177

Reclassification

‐ (52,755) (52,755)



(64,825) (2,600,431) (2,665,256)

Depreciation

‐ (185,625) (185,625)



‐  (186,055) (186,055)

Endingbalance

144,721,618 2,598,868147,320,486



144,721,618 2,837,248 147,558,866



AsofDecember31,2023and2022investmentpropertyconsistsoflandandbuildingsthatareleasedtoSamsung

ElectronicsCo.,Ltd.andetc.TherentalincomefrominvestmentpropertyfortheyearsendedDecember31,2023

and2022areW4,591millionandW4,308million,respectively.



Thefairvalueoftheinvestmentpropertyisdeterminedbasedonthevaluemeasuredbyanindependentappraiser

withexperienceandprofessionalqualificationsthathasrecentlyevaluatedsimilarpropertiesintheregioninwhich

theinvestmentpropertytobeassessedislocated.Thefairvalueofinvestmentrealestateof

￦ 445,701million

wasclassifiedasLevel3fairvaluebasedontheinputsusedinthevaluationtechnique.





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

16.TradePayablesandOtherLiabilities



TradepayablesandotherliabilitiesasofDecember31,2023and2022aresummarizedasfollows:

(Inthousandsofwon)



2023



2022



Current



Non‐current



Current Non‐current

Tradepayables

￦

2,118,657,669 ‐

2,191,529,679 ‐

Accountspayable



1,361,222,234 35,779 1,255,375,085 34,447

Accruedexpenses



766,088,163 ‐  598,722,297 ‐

Leaseliabilities



26,046,759 55,005,940 27,752,325 44,352,768

Other



266,830,199 486,881,198 212,374,660 653,144,010

Total

￦

4,538,845,024 541,922,917 4,285,754,046 697,531,225



Otherliabilitiesincludewithholdings,guaranteedepositsreceived,etc.



17.Borrowings



(1)BorrowingsoftheGroupasofDecember31,2023and2022aresummarizedasfollows:



1)2023

(Inthousandsofwon)



20232022



Short‐termborrowings

CurrentportionofdebenturesinKoreanwon

￦

‐  219,901,411

Currentportionoflong‐termborrowingsinforeigncurrency570,636,000 420,059,856

Disposalsoftradereceivable1,183,024,326 1,252,676,717

Short‐termborrowingsinforeigncurrency1,114,614,626 958,545,230

Subtotal2,868,274,952 2,851,183,214

Long‐termborrowings 

Long‐termborrowingsinforeigncurrency2,849,524,920 2,297,040,000

Total

￦

5,717,799,872 5,148,223,214





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

17.Borrowings,Continued



(2) DebenturesissuedbytheParentcompanyasofDecember31,2023and2022areasfollows:



1)2023

AsofDecember31,2023,noneofdebenturehasbeenissuedbytheGroup.



2)2022



(Inthousandsofwon)

TypeClassificationDateofmaturity

Annual

Interestrate(%) Amount

CorporateBonds Unsecured



2023.09.11 2.41

￦

220,000,000

Lessdiscountondebentures

(98,589)

Total

￦

219,901,411



(3)Short‐termborrowingsinforeigncurrencyasofDecember31,2023and2022aresummarizedasfollows:



1)2023

(Inthousandsofwon)

 



    



Borrower

Financial

institution

Description



Wayof

Redemption

 Annualinterest

rate(%)2023



2022

SDIHU

HSBC

andothers

 Operationfund



Redeemed on

maturitydate



EURIBOR

3M+0.50~0.55 858,574,456



673,923,203

TSDI

BoComm

andothers

 Operationfund



Redeemed on

maturitydate



LPR‐1.10~0.95

 137,367,575



199,348,641

NOVALED

Sparkasse

andothers

 Operationfund



Redeemed on

maturitydate

 SOFR

3M+1.0~1.06 ‐



25,902,798

SAPB

HSBC

andothers

 Operationfund



Redeemed on

maturitydate



LPR‐0.96

‐



59,370,588

SDITB



BoComm

andothers



Operationfund



Redeemed on

maturitydate



LPR‐1.05~0.55

 118,672,595



‐

Tota l 



￦

1,114,614,626 958,545,230











SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

17.Borrowings,Continued



(4)Long‐termborrowingsinforeigncurrencyasofDecember31,2023and2022aresummarizedasfollows:

(Inthousandsofwon)

Borrower

Financial

institution

Description



Wayof

Redemption

 Annualinterestrate

(%)2023



2022

SAPBHSBCOperationfund



Redeemed on

maturitydate

 HIBOR2M+0.40 70,527,600 63,174,353

SDIHUKoreaEximbank



Operationfund



Redeemed on

maturitydate



EURIBOR

3M+0.40~1.04



3,349,633,320



2,567,280,000

SDITBKBDOperationfund

Redeemed on

maturitydate

 LIBOR3M+0.76 ‐



86,645,503

Subtotal



 3,420,160,920 2,717,099,856

Lesscurrentportionoflong‐term

borrowings



 (570,636,000) (420,059,856)

Tota l 



￦

2,849,524,920 2,297,040,000





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

18.Provisions



ChangesinprovisionsfortheyearsendedDecember31,2023and2022aresummarizedasfollows:



1)2023



(Inthousandsofwon)



Beginningbalance



Provisionsmade



Provisions

used



Ending

balance

Current

Qualityassurance

￦

320,736,926



92,524,367



(62,964,708) 350,296,585

Long‐termincentives 



‐



13,835,283



‐



13,835,283

Others



10,772,050



17,824,960



(8,965,779)



19,631,231

Subtotal



331,508,976



124,184,610



(71,930,487)



383,763,099

Non‐

current

Long‐termincentives 

￦

40,595,202



10,349,379



(27,670,533)



23,274,048

Provisionforrecovery



32,180



2,926,304



(32,320)



2,926,164

Others



51,250,924



21,592,097



(5,902,568)



66,940,453

Subtotal



91,878,306



34,867,780



(33,605,421)



93,140,665

Total

￦

423,387,282



159,052,390



(105,535,908)



476,903,764



2)2022



(Inthousandsofwon)



Beginningbalance



Provisionsmade



Provisions

 used



Ending

balance

Current

Qualityassurance

￦

239,980,403 197,909,269 (117,152,746) 320,736,926

Long‐termincentives



5,996,252 ‐ (5,996,252) ‐

Others



56,705,575 35,450,324 (81,383,849) 10,772,050

Subtotal



302,682,230 233,359,593 (204,532,847) 331,508,976

Non‐

current

Long‐termincentives

￦

38,690,678 1,904,524 ‐ 40,595,202

Provisionforrecovery



28,980 3,200  ‐  32,180

Others



54,592,052 2,784,190 (6,125,318) 51,250,924

Subtotal



93,311,710 4,691,914 (6,125,318) 91,878,306

Total

￦

395,993,940 238,051,507 (210,658,165) 423,387,282



(1) The Group recognizes a warranty provision (quality assurance) for the estimated costs of future repairs and

recallsasaccruedexpenses,basedonthepastexperiencedrate.TheGroupalsorecognizesestimatedcostsincase

ofitscustomers’productrecallfromitsend‐users.

(2)TheGrouphaslong‐

termincentiveplansforitsexecutivesbasedonthree‐yearperformancecriteriaandmade

aprovisionfortheestimatedincentive.

(3)Otherthanprovisionsstatedabove,theGrouprecognizedprovisionforlitigations.However,asstatedinNote

20, details of provisions for litigations are not disclosed as it may affect

the result or the progress of pending

litigations.



(4)Asoftheendofthecurrentterm,theGrouphasnoemission liabilities duetoless greenhousegasemissions

than the number of free allocationallowances, and the numberof free allocation allowances for the for the 3



planningperiods(2021‐2025)aresummarizedasfollows:

(IntCO2‐eq)





For2021For2022For2023For2024For2025

592,852



589,613



676,586



657,087



642,606

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

19.EmployeeBenefits



(1)Employeebenefitliabilities(assets)asofDecember31,2023and2022aresummarizedasfollows:

1)Presentvalueofdefinedobligations

(Inthousandsofwon)



2023



2022



DefinedBenefitObligations:

Beginningbalance W

672,626,239



719,644,106

Currentservicecost

63,508,936



69,897,860

Interestcost

37,796,106



23,923,815

Obligationstransferredfromrelatedparties

(3,716,823)



(1,768,110)

Grossbenefitpayments

(27,652,301)



(27,272,570)

Actuarialgainarisingfromassumptions

93,358,260



(97,591,302)

Contributiontothedefinedcontributionplan

(27,853,301)



(14,169,351)

Exchangeratefluctuations

72,549



(38,209)

Endingbalance W

808,139,665



672,626,239

PlanAssets

(1,059,689,820)



(842,739,921)

Netdefinedbenefitliability(asset)

(251,550,155)



(170,113,682)

2)Fairvalueofplanassets

(Inthousandsofwon)

2023



2022

   

Beginningbalance W

842,739,921



710,285,844

Contributionspaidintoplan

217,011,208



149,906,118

Obligationspaidbytheplan

(18,245,611)



(17,704,508)

Contributiontothedefinedcontributionplan

(27,853,301)



(14,169,351)

Interestincome

48,840,140



24,119,971

Actuarialgainarisingfromassumptions

(5,931,296)



(9,945,434)

Planassetstransferredtorelatedparties

3,167,249



318,598

Exchangeratefluctuations

(38,490)



(71,317)

Endingbalance W

1,059,689,820



842,739,921

3)OtherliabilitiesforemployeebenefitsasofDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)

2023



2022



Liabilitiesforpaidabsence W

 84,409,269



82,106,251

Long‐termincentiveprovisions



 37,109,331



40,595,202

Otherlong‐termemployeebenefits



 66,467,677



49,667,829

Total W

 187,986,277



172,369,282



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

19.EmployeeBenefits,Continued



(2)ExpensesforemployeebenefitsfortheyearsendedDecember31,2023and2022aresummarizedasfollows:

(Inthousandsofwon) 

2023



2022



Currentservicecosts W

63,508,936



69,897,860

Interestcost

37,796,106



23,923,815

Interestincome

(48,840,140)



(24,119,971)

Paymentondefinedcontributionplans

10,485,854



9,109,929

Total W

62,950,756



78,811,633

(3)FairvalueofplanassetsasofDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)



2023



2022



Severanceinsurancebonds W

1,059,442,891



842,479,510

Nationalpensionfund

246,929



260,411

Total W

1,059,689,820



842,739,921



(4)TheGroupdeterminedthediscountrate based onmarketreturnsof high‐qualitycorporate bondsconsistent

withcurrencies and estimatedpaymenttermsof defined benefitobligations asofthe reporting datein orderto

calculate present value of the defined benefit obligations. Principal actuarial assumptions for the years

 ended

December31,2023and2022aresummarizedasfollows:



(In%)

2023



2022



Expectedrateofsalaryincrease

3.87~5.72



3.25~3.98

Discountratefordefinedbenefitobligations

6.08~6.12



6.11~6.34



Assumptionsregarding futuremortality have been based on publishedstatistics and  mortalitytablesfromKorea

Insurance Development Institute. The weighted duration ofexpenses for employeebenefitsfor theyearsended

December31,2023and2022are9.30to9.42yearsand7.10to11.21years,respectively.



(5)Sensitivityanalysis

Reasonably

possiblechangesatthereportingdatetooneoftherelevantactuarialassumptionsasofDecember31,

2023, holding other assumptions constant, would have affected the defined benefit obligation by the amounts

shownbelow.

(Inthousandsofwon)

Presentvalueof

Definedbenefitobligations



Ifincreasedby1%Ifdecreasedby1%



Expectedrateofsalaryincrease W 79,763,574 (70,103,801)

Discountrate  (66,687,720) 76,892,662



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

20.CommitmentandContingencies



(1) As of December 31, 2023, the Group has been provided a guarantee of

W 7,909 million by Seoul Guarantee

InsuranceCo.,Ltd.inrelationtoacourtdepositandlicensingprocedures.

(2)TheGroupis adefendantincivil damageclaimsfiled inthe Europeforcollusionof CRTs,etc.The Grouphas

estimated its potential loss related to the claims, but the actual compensation may differ significantly from

 the

Group’sestimation.TheGroupdoesnotdisclosedetailsofon‐goinglitigationsconsideringthedisclosuremayhave

effecttooutcomeofpendinglitigations.

(3)Otherthancasesdescribedin(2)ofthisnotetotheconsolidatedfinancialstatements,theGroupisdefendant

of 64 pending litigations in local and

 foreign jurisdictions. The Group does not disclose details of the on‐going

litigations, as the disclosure may affect the result of the pending litigations. Effect of pending litigations on the

Group’sconsolidatedfinancialstatementscannotbeestimatedreliably,astimingandamountsofcompensations

areuncertain.

(4)TheGrouphas

followingborrowingcommitmentsasofDecember31,2023.

(InthousandsofUSD,InthousandsofCNY,InthousandsofEURandhundredmillionsofwon)



Currency

 Individual

limit



Comprehensive

limit



Nameoffinancialinstitution







Bankoverdrafts KRW



55 ‐WooriBankandoneotherbank

Generalpurposeloans KRW



3,390 ‐KEBHANABANKandoneotherbank

 USD



695,729 ‐ShinhanBankandeightotherbanks

 CNY



3,350,000 ‐BankofChinaandthreeotherbanks

 EUR



830,000 ‐CitiBankandthreeotherbanks



A/S,Usance USD 15,000  250,000ShinhanBankandthreeotherbanks

Guaranteepaymentsfor

foreigncurrency(*) USD 1,187,000  250,000BNPPARIBSandsevenotherbanks

D/A,D/P,O/A USD 1,236,846  450,000WooriBankandnineotherbanks

LoansforImporttrade USD ‐ 350,000DBSandthreeotherbanks

Total

KRW 3,445 

‐



USD

3,134,575



1,300,000



CNY 3,350,000 

‐



EUR 830,000 

‐



(*) Among the foreign currency guarantee payment limits, USD 250 million is contracted as an inclusive foreign

currencylimit,asitisoverlappedwiththeO/Alimit.





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

20.CommitmentandContingencies,Continued



(5)AsofDecember31,2023,thegroupenteredintoacurrencyforwardcontractwiththeaimofavoidingrisksfrom

changesintheexchangerate.Thegainorlossonthecontractfairvalue

hedgingaccountinginaccordancewiththe

entity’sGAAP,andthegainorlossisrecognizedinprofitorloss.Thedetailsofthecontractarethetransactionin

which the foreign currency amount promised at the expiration date is delivered to the counterparty (financial

institution)andtheamountconvertedinto

thefixedexchangerateatthetimeofthecontractisdeliveredfromthe

counterparty.

As of December 31, 2023, the group settled the currency forward contracts. The gain on the valuation of

derivativesof ￦ 968million,thelosson thevaluationofderivativesof ￦ 5,001 millionandthe

gain onthe

transactionofderivativesof ￦ 18,148millionandthe loss on thetransaction of derivativesof ￦ 83 million

arereflectedinprofitorloss.



(6)The Group has enteredcommercial swapcontractsto hedge thepurchasepricefluctuationof rawmaterials.

DetailsoftheGroup’scommercial

swapcontractsareasfollows:



(InUSD)

DescriptionsExpiryDate

RemainingQuantity

(tons)

ContractPrice

(USD/ton)

Copper(Cu)



2024‐12‐31 1,7005,296



AsofDecember31,2023,thenetcarryingamountofthederivativeassetrelatedtocommercialswapaboveis

￦

 7,031 million, and the Group recognized effective portion of gain on valuation of derivatives amounting

￦

 5,175millionasothercomprehensiveincome,netoftax.



(7)UntilDecember31,2023,

theGrouphasacquired40%ownershipofECOPROEMCo.,Ltd.(Totalinvestmenttill

December31,2023:

W128,000million)Also,iftheagreementisterminatedduetoaliabilityofaparty,theGroup

ownsputoptionrespectivelyonallofthesharesofECOPROEMCo.,Ltd.ownedbytheGroupandECOPROBMCO.,

LTDownscalloption.



(8)AccordingtothejointventureagreementunderwithPHILOPTICSCO.,LTD.,within20yearsfromthedateof5

yearsfromthedateof

theagreement,theGrouphastherighttosellallorpartofthesharesofPhilenergyCo.,Ltd.

ownedbytheGrouptoPhilenergyCo.,Ltd.orPHILOPTICSCO.,LTD.Also,iftheagreementisterminatedduetoa

liabilityofaparty,theGroupandPHILOPTICSCO.,LTD.

ownsputoptionandcalloptionrespectivelyonalltheshares

ofPhilenergyCo.,Ltd.ownedbytheGroup.



(9)AccordingtothejointventurecontractsignedwithFCAUSLLC.,theGroupcanagreeontheexpirationofthe

contractperiod,andtheGrouphastherighttoexercise

acalloptiononthestakeinStarPlusEnergyLLC.ownedby

FCAUSLLC.attheexpiration of thecontractperiod. In addition, if thecontract is terminateddue to one‐way or

deadlock,theGrouphasacalloptionandFCAUSLLC.hasaputoptionforthe

StarPlusEnergyLLC.stakeownedby

FCAUSLLC.



(10)AsofDecember31,2023,theoutstandingcontractamountfortheacquisitionoftangibleandintangibleis

W

2,035,998million.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

21.ShareCapitalandSharePremium



(1)Sharecapital

Ordinarysharesandpreferredshares issuedandoutstandingasofDecember31,2023and2022aresummarizedas

follows:

1)2023

(Inshares)



Sharesissued TreasurysharesSharesoutstanding

    

Ordinaryshares 

68,764,530



(3,331,391)



65,433,139

Preferredshares 

1,617,896



(178,400)



1,439,496

Total 

70,382,426



(3,509,791)



66,872,635



2)2022

(Inshares)



Sharesissued TreasurysharesSharesoutstanding

    

Ordinaryshares 

68,764,530



(3,331,391)



65,433,139

Preferredshares 

1,617,896



(178,400)



1,439,496

Total 

70,382,426



(3,509,791)



66,872,635

(2)SharepremiumasofDecember31,2023and2022aresummarizedasfollows:

(Inthousandsofwon)

 20232022



Additionalpaid‐in‐capital W

4,838,555,882



4,838,555,882

Othersharepremiums 

163,418,811



163,418,811

Total W

5,001,974,693



5,001,974,693



(3)DividendsbytheParentCompanyforthereportingperiodsendingDecember31,2023and2022aresummarized

asfollows.ThedividendsforthereportingperiodsendingDecember31,2023willbepresentedasanagendaatthe

regularshareholders'meetingoftheparentcompany.

(Inthousandsofwon)2023

2022



Ordinaryshares(2023: ￦1,000pershare,2022: ￦1,030pershare)

W

65,433,139



67,396,133

Preferredshares(2023: ￦1,050pershare,2022: ￦1,080pershare)



1,511,471



1,554,656

 W

66,944,610



68,950,789



22.Othercapital



OthercapitalcomprisestreasurysharesoftheParentCompany.Numberoftreasurysharesanditscarryingamount

asofDecember31,2023and2022areasfollows:

(Inthousandsofwon)



 2023 2022



Ordinary

shares

Preferred

shares Total

Ordinary

shares 

Preferred

shares Total

        

Numberofshares

3,331,391



178,400



3,509,791



3,331,391



178,400



3,509,791

Carryingamount W

336,813,481



8,318,103



345,131,584



336,813,481



8,318,103



345,131,584



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 



23.AccumulatedOtherComprehensiveIncome



Accumulatedothercomprehensiveincome,netoftax,asofDecember31,2023and2022aresummarizedasfollows:

(Inthousandsofwon)



2023



2022



EquityinstrumentsatFVOCI–netchangeinfairvalue W

388,021,284



310,011,247

Gain(loss)onderivativesvaluation

5,175,033



22,185,366

Unrealizedchangeonequitymethodinvestments

480,899,254



493,181,443

Gain(loss)ontranslationofforeignoperations

288,057,322



178,438,837

Total W

1,162,152,893



1,003,816,893



24.RetainedEarnings



RetainedearningsasofDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)20232022



Legalreserve W

183,235,277



179,533,582

Discretionaryreserve

7,056,478,000



6,198,238,000

Unappropriatedretainedearnings

5,095,951,969



4,090,579,799

Total W

12,335,665,246



10,468,351,381



25.Selling,General,andAdministrativeExpenses



Details of selling, general and administrative expenses for the years ended December 31, 2023 and 2022 are

summarizedasfollows:



(Inthousandsofwon)

2023



2022





Salariesandwages W

365,309,084



334,032,459

Severanceandretirementbenefits

19,697,052



20,554,496

Employeefringebenefits

115,916,191



102,180,332

Depreciation

50,704,806



53,482,853

Amortization

21,557,489



19,172,737

Researchanddevelopmentexpenses

1,136,360,995



1,076,352,606

Transportationexpenses

154,711,258



232,757,802

Feesandcommissions

151,373,265



142,470,917

(Reversalof)Baddebtexpenses

(38,377)



(90,503)

Others

332,955,680



431,819,970

Total W

2,348,547,443



2,412,733,669





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

26.TheNatureofExpenses



ThenatureofexpensesfortheyearsendedDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)

20232022

Changesininventories W

(6,693,390,419)



(5,470,459,008)

Rawmaterialsused

20,485,934,589



17,044,354,697

Salariesandwages

1,895,882,121



1,669,172,316

Severanceandretirementbenefits

84,770,309



96,900,343

Employeefringebenefits

568,102,996



499,220,111

Depreciation

1,659,657,716



1,408,100,379

Amortization

68,314,060



55,232,876

Others

3,005,660,162



3,013,534,789

Total W

21,074,931,534



18,316,056,503





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

27.OtherIncomeandOtherExpenses



(1)OtherincomefortheyearsendedDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)



20232022





Dividendsincome

W

17,095,214

 12,250,892

Rentalincome



120,483

 332,498

Gainonsaleofproperty,plantandequipment



2,981,837

 4,287,067

Gainonsaleofintangibleassets



14,100  ‐

Gainonsaleofinvestmentproperty



14,720,499  6,454,062

Gainonleasetermination



28,103 70,676

Miscellaneousincome



41,685,361  39,602,824

Total

W

76,645,597



62,998,019



(2)OtherexpensesfortheyearsendedDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)

20232022







Donations W

9,023,577 7,719,130

Lossonsaleofproperty,plantandequipment

20,268,989 113,273,606

Lossonimpairmentofproperty,plantandequipment

1,713,442 31,085,526

Lossonsaleofintangibleassets

13,771 318,439

Lossonimpairmentofintangibleassets

2,045,303 3,128

Lossonleasetermination

19,191 4,663

Miscellaneousexpenses

17,226,683 53,912,454

Total W

50,310,956 206,316,946











SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

28.FinancialIncomeandFinancialExpenses



FinancialincomeandcostsfortheyearsendedDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)



20232022

Financialincome



 

Interestincome W

82,954,221



43,378,706

‐Bankdeposit

80,693,229



35,612,744

‐Other

2,260,992



7,765,962

Gainonforeigncurrencytransaction

842,064,411



973,041,270

Gainonforeigncurrencytranslation

97,612,450



264,036,354

Gainonvaluationofderivatives

967,840



19,271,872

Gainontransactionofderivatives

18,148,101



10,832,244

Gainonvaluation of financialassetsat fair

valuethroughprofitorloss



13,333,981



79,997,719

Gain on disposal of financial assets at fair

valuethroughprofitorloss



6,471



87,808

Subtotal

1,055,087,475



1,390,645,973

Financialexpenses



 

Interestexpense



273,624,155



90,058,982

‐Borrowing



239,752,976



75,119,338

‐Debentures



3,775,950



5,434,340

‐Other



30,095,229



9,505,304

Lossonforeigncurrencytransactions



798,101,104



978,729,104

Lossonforeigncurrencytranslation



125,098,077



300,760,298

Lossonvaluationofderivatives

5,000,529



‐

Lossontransactionofderivatives

82,604



4,066,889

Lossondisposalofotherreceivables

38,990,126



11,662,825

Loss onvaluation offinancial assets at fair

valuethroughprofitorloss



1,769,425



54,619,083

Loss on disposal of financial assets at fair

valuethroughprofitorloss



378



2,806,135

Lossonguaranteefee



3,219,100



58,025

Subtotal



1,245,885,498



1,442,761,341

Netfinancialexpense

W

190,798,023



52,115,368





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

29.IncomeTaxExpense

(1)IncometaxexpensefortheyearsendedDecember31,2023and2022aresummarizedasfollows:



(Inthousandsofwon)

20232022



CurrentincometaxesW

265,729,020 362,740,808

Deferredincometaxesfromchangesintemporarydifferences

301,266,537 160,863,625

Changesindeferredincometaxesduetotaxcreditcarryforward

(147,033,889) (42,313,717)

Changesindeferredincometaxesduetochangesinthetaxrate

‐ 131,109,165

Others(exchangeratedifferences)

135,787 514,060

Incometaxexpense W

420,097,455



612,913,941



(2) Deferred tax assets and liabilities recognized at stockholders’ equity as of December 31, 2023 and 2022 are

summarizedasfollows:

1)2023

 (Inthousandsofwon)

Beforetax



Deferredtaxassets

(liabilities)



Aftertax



Income tax related to items recognized

directlyinequity:

W

  

Sharepremium

44,411,694



5,421,821



49,833,515

Income tax related to items recogniz ed as

OCI:

  

Actuarialgain(losses)fromdefinedbenefit

plan

(137,622,413)



35,305,647



(102,316,766)

Change in equity of equity‐accounted

investees

944,589,436



(175,632,860)



768,956,576

Cash flow hedges

–

 effective portion of

changesinfairvalue

7,031,294



(1,856,262)



5,175,032

EquityinstrumentsatFVOCI

–

netchangein

fairvalue

527,204,006



(139,182,722)



388,021,284

Total

W

1,385,614,017



(275,944,376)



1,109,669,641



2)2022

(Inthousandsofwon)

Beforetax



Deferr edtaxassets

(liabilities)



Aftertax



Income tax related to items recognized

directlyinequity: W

   

Sharepremium

44,411,694



5,421,821



49,833,515

Income tax related to items recognized as

OCI:

   

Actuarialgain(losses)fromdefinedbenefit

plan

(38,522,955)



9,148,662



(29,374,293)

Change in equity of equity‐accounted

investees

851,658,708



(180,038,428)



671,620,280

Cash flow hedges

–

 effective portion  of

changesinfairvalue

30,143,160



(7,957,794)



22,185,366

EquityinstrumentsatFVOCI

–

netchangein

fairvalue

421,210,933



(111,199,686)



310,011,247

Total

W

1,308,901,540



(284,625,425)



1,024,276,115



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

29.IncomeTaxExpense,Continued



(3)TherelationshipbetweenincometaxexpenseandaccountingincomefortheyearsendedDecember31,2023

and2022,isasfollows.



(Inthousandsofwon)



2023



2022



Profitbef oreinc ometax W

2,486,144,017



2,652,275,389

IncometaxusingtheGroup'sstatutorytaxrate

350,338,334



431,782,858

Adjustments

Foreignwithholdingtax

18,085,881



18,312,562

Permanentdifferences

(58,386,262)



33,681

Carry‐overdeficiteffect

5,835,123



8,050,869

Taxcredits

(188,508,350)



(158,473,285)

Differenceintaxrate

‐



131,109,165

Consolidationadjustments,andothers

292,732,729



182,098,091

Incometaxexpense W

420,097,455



612,913,941

Averageeff ectivetaxrate



16.9%



23.1%



(4)AsofDecember31,2023,thetaxeffectsoftemporarydifferenceswerecalculatedbyusingexpectedtaxrate

fortheyearwhenthetemporarydifferencesareexpectedtobereversed.

(5)Changeindeferredtaxassets(liabilities)fortheyearsendedDecember31,2023and2022aresummarized

as

follows:

(Inthousandsofwon)

20232022

Beginning

balance

 ChangesEndingbalance

Beginning

balance

 ChangesEndingbalance

Tangible/Intangible

assets W

116,016,250 (2,022,616) 113,993,634 98,647,981 17,368,269 116,016,250

Investmentin

subsidiariesand

associates

 (1,915,001,100) (292,923,762) (2,207,924,862) (1,624,952,989) (290,048,111) (1,915,001,100)

Inventories

6,342,914 (2,078,420) 4,264,494 3,951,753 2,391,161 6,342,914

Accruedexpenses

141,976,893 3,827,695 145,804,588 112,292,074 29,684,819 141,976,893

Available‐for‐sale

financialassets

(75,226,801) 33,790,769 (41,436,032) (99,121,965) 23,895,164 (75,226,801)

Others

(77,556,009) (64,018,260) (141,574,269) 3,273,905 (80,829,914) (77,556,009)

Subtotal

(1,803,447,853) (323,424,594)

(2,126,872,447) (1,505,909,241) (297,538,612) (1,803,447,853)

Deferredtaxaddedto

capital

 (284,625,425) 8,681,049 (275,944,376) (302,023,973) 17,398,548 (284,625,425)

Taxcredit

200,586,672 147,033,889 347,620,561 158,272,955 42,313,717 200,586,672

Temporary

differencesof

subsidiaries

162,476,697 39,163,180 201,639,877 137,141,397 25,335,300 162,476,697

Total W



(1,853,556,385)    (1,725,009,909)



(6) At 31 December 2023, there was a deferred tax liability of W130,183 million for temporary differences of

W493,118 million related to investments in subsidiaries. However, this liability was not recognized because the

Groupisabletocontrolthetimingofthe reversalofthetemporarydifferencesanditisprobablethatitwillnot

reverseintheforeseeablefuture.

(7)TheGroupbelievesthatitsaccrualsfortaxliabilitiesareadequateforallopentaxyearsbasedonitsassessment

ofmany

factors,includinginterpretationsoftaxlawandpriorexperience.

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

29.IncomeTaxExpense,Continued



8)GlobalMinimumTax



TheGlobalMinimumTaxisasysteminwhichmultinationalcompanieslocatedinacountrywheretheeffectivetax

ratefallsbelow15%,withsalesrevenueonconsolidatedfinancial

statementsexceeding0.75billioneurosinatleast

2ofthe previous4years, arerequiredtopaythecorrespondingamountto thetaxauthorities in thecountryto

whichtheParentCompanymeetingspecificconditionsbelongs.



Republic of Korea, where the ParentCompany of the Group is located, enacted

legislation related to the Global

Minimum Tax in 2023, andit is required toapply theGlobal MinimumTax fromthe business yearbeginning on

January1,2024.



TheGroupbelievesthatitfallsunderthescopeof theapplicationoftheGlobalMinimumTaxlaw.However,asthe

related

lawsin Korea arescheduled to beenforced fromJanuary1,2024, thereisno impact onthe currentand

deferredincometaxexpensesforthecurrentperiod.Additionally,theGroupisapplyingthetemporaryexemption

rulefordeferredtaxunderK‐IFRSNo.1012,andasaresult,itdoes

notrecognizedeferredincometaxassetsand

liabilitiesrelatedtotheGlobalMinimumTaxlawanddoesnotdiscloseinformationrelatedtodeferredtax.



Sincethelawsofthecountryofthesubsidiary,whichisprimarilyaffectedbytheGlobalMinimumTaxlaw,areeither

notenactedorspecificregulations

arestillinprogress,itisdifficulttoreasonablyestimatetheimpactontheGroup

attheendofthecurrentperiod.EachsubsidiaryoftheGroupisreviewingthepotentialimpactontheconsolidated

financialstatementsinconsultationwithtaxexpertsineachcountry.



30.EarningperShare



(1)Basicearningspershare



1)BasicearningspersharefortheyearsendedDecember31,2023and2022arecalculatedasfollows:



(i)OrdinaryShares



(Inthousandsofwon,exceptearningspershare)



2023 2022



ProfitattributabletotheownersoftheCompany W

2,009,207,126



1,952,148,536

Profitattributabletoordinaryshares



1,965,886,639



1,910,056,287

Weightedaveragenumberofordinaryshares(basic)



65,433,139



65,433,139

Basicearningspershare(won)

30,044



29,191



(ii)PreferredShares



(Inthousandsofwon,exceptearningspershare)20232022



ProfitattributabletotheownersoftheCompany W

2,009,207,126



1,952,148,536

Profitattributabletopreferredshares

43,320,488



42,092,249

Weightedaveragenumberofpreferredshares(basic)

1,439,496



1,439,496

Basicearningspershare(won)

30,094



29,241





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

30.EarningperShare,Continued



2)WeightedaveragenumberofsharesfortheyearsendedDecember31,2023and2022arecalculatedasfollows:



(i)OrdinaryShares



(Inshares)

20232022



IssuedordinarysharesatJanuary1

68,764,530



68,764,530

Treasurystock



(3,331,391)



(3,331,391)

Weighted‐averagenumberofcommonsharesoutstanding(basic)

65,433,139



65,433,139



(ii)PreferredShares



(Inshares)

20232022



IssuedpreferredsharesatJanuary1

1,617,896



1,617,896

Treasurystock



(178,400)



(178,400)

Weighted‐averagenumberofcommonsharesoutstanding(basic)

1,439,496



1,439,496

Thepreferredsharesarenotentitledforpriorityrightsotherthanadditionaldividendof1%perannum,compared

toordinaryshares,theGroupconsidersthepreferredsharesasordinaryshareswithdifferentdividendratio.



(2)Dilutedearningspershare



Dilutedearningspersharearesameasbasicearningsper

shareastherearenodilutedeffectsfortheyearsended

December31,2023and2022.



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

31.Leases



InformationrelatedtoleasesforwhichtheGroupisalesseeisasfollows.

(1)Right‐of‐useassets



Thedetailsoftheright‐of‐useassetsfortheyearsendedDecember31,2023and2022

areasfollows:

1)2023

2)2022



(Inthousandsofwon)

Land

Buildingsand

structures

Tools,furniture,and

fixtures Total

Beginningbalance w

1,823,232



29,009,016



4,402,972



35,235,220

Acquisitioncost



9,749,730



63,878,503



9,450,839



83,079,072

Accumulateddepreciation



(7,926,498)



(34,869,487)



(5,047,867)



(47,843,852)

Acquisitionsandcapital

expenditure



13,812,617 46,109,642 4,263,215 64,185,474

Depreciation(6,576,822)



(15,878,927)



(2,920,002)



(25,375,751)

Disposals



‐



(967,792)



(320,700)



(1,288,492)

Exchangeratefluctuation



(469,755)



(2,688,553)



(410,117)



(3,568,425)

Endingbalance w

8,589,272



55,583,386



5,015,368



69,188,026

Acquisitioncost



13,762,617



74,265,664



11,209,676



99,237,957

Accumulateddepreciation



(5,173,345)



(18,682,278)



(6,194,308)



(30,049,931)



(2)AmountsrecognizedinexpensesrelatedtoleasefortheyearsendedDecember31,2023and2022areasfollows:

(Inthousandsofwon)



2023



2022



Interestonleaseliabilities W

3,523,805



1,394,299

Expensesrelatingtoshort‐termleases



10,966,862



7,002,867

Expensesrelatingtoleasesoflow‐valueassets,

excludingshort‐termleasesoflow‐value

assets



1,674,595



2,011,757

Total W

16,165,262



10,408,923





(Inthousandsofwon)

Land



Buildingsand

structures



Tools,furniture,and

fixtures



Total



Beginningbalance w

8,589,272



55,583,386



5,015,368



69,188,026

Acquisitioncost



13,762,617



74,265,664



11,209,676



99,237,957

Accumulateddepreciation



(5,173,345)



(18,682,278)



(6,194,308)



(30,049,931)

Acquisitionsandcapital

expenditure



1,721,610 31,978,245 7,028,742 40,728,597

Depreciation



(7,158,638)



(18,683,916)



(3,623,383)



(29,465,937)

Disposals



‐



(965,432)



(263,768)



(1,229,200)

Exchangeratefluctuation



(27,822)



(1,955,362)



(362,887)



(2,346,071)

Endingbalance w

3,124,422



65,956,921



7,794,072



76,875,415

Acquisitioncost



12,620,161



103,089,339



14,421,196



130,130,696

Accumulateddepreciation



(9,495,739)



(37,132,418)



(6,627,124)



(53,255,281)

SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

31.Leases,continued



(3)MaturitiesofleaseliabilitiesfortheyearsendedDecember31,2023and2022areasfollows:

(Inthousandsofwon)



2023



2022



Lessthanoneyear W

26,631,906



28,234,309

Onetofiveyears



48,260,719



35,676,658

Morethanfiveyears



19,512,069



17,084,727

Totalundiscountedleaseliabilitiesasof

31December



94,404,694



80,995,694

Leaseliabilitiesrecognizedinthe

statementoffinancialpositionasof31

December



81,052,699



72,105,093

Currentleaseliabilities



26,046,759



27,752,325

Non‐currentleaseliabilities



55,005,940



44,352,768



(4)AmountsrecognizedinstatementofcashflowfortheyearsendedDecember31,2023and2022areasfollows:



(Inthousandsofwon)



2023



2022



Totalcashoutflowforleases W

52,224,103



39,578,585



(5)Extensionoption



Some leases contain extension options exercisable bythe Group beforethe end of the non‐cancellable contract

period. The Groupseeks to includeextension optionsin new leases to provide operationalflexibility. TheGroup

estimatestheleaseperiodbyassessingattheleasecommencementdatewhetherit

isreasonablycertaintoexercise

theextensionoption.

(6)Detailsofleasesaslessorareasfollows:



TheGroupleasesoutitsinvestmentproperty.TheGrouphasclassifiedtheseleasesasoperatingleases,because

theydonottransfermostoftherisksandrewardsincidentaltotheownershipof

theassets. Thefollowingisthe

maturityanalysistableforoperatingleasepayments,andtheleasepaymentstobereceivedaftertheendofthe

reportingperiodarepresentedinundiscountedamounts.

(Inthousandsofwon)



2023



2022

 

Lessthanoneyear W

4,480,461



4,509,895

Onetofiveyears



8,955,630



9,099,826



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

32.RelatedParties



(1)ListoftheGroup’srelatedpartiesareasfollows:



Associates

SamsungDisplayCo.,Ltd.(“SDC”)andsubsidiaries



SamsungGlobalResearchCo.,Ltd.



SDFLEXCO.,LTD.(“SDFLEX”)



ECOPROEMCo.,Ltd.(“ECOPROEM”)



PhilenergyCo.,Ltd.(“Philenergy”)



IntellectualKeystoneTechnologyLLC(“IKT”)



SecondaryBatteryGrowthFund

OtherRelatedParties

ECOPROBMCo.,Ltd.(“ECOPROBM”)

Conglomerateentities



Samsung

ElectronicsCo.,Ltd.(“SEC”),SamsungC&TCorporation,andetc.

(2)SignificanttransactionswithrelatedpartiesfortheyearsendedDecember31,2023and2022aresummarized

asfollows:

1)2023

(Inthousandsofwon)

Revenues

Disposalof

Property,Plant

andEquipment   OtherIncome

Inventory

purchase 

Purchaseof

propertyplant

andequipmentOtherexpenses

Associates



SDCanditssubsidiaries

￦

384,860,592 81,418 30,880,023 2,370,470 4,259,653 1,807,036

SamsungGlobalResearch

Co.,Ltd.

‐ ‐  ‐ ‐ ‐ 13,648,023

SDFLEXCO.,LTD.

140,664 ‐  1,216,478 7,949,929 ‐ 44,106

ECOPROEM

‐ ‐  586,823 3,723,367,644 ‐ 20,576,724

PhilenergyCO.,LTD.

‐ ‐  ‐ ‐ 251,233,594 2,845,755

OtherRelatedParties

     

ECOPROBM

‐ ‐  21,019,789 452,711,903 ‐ 1,107,889

Conglomerateentities



SECanditssubsidiaries

1,334,410,603 ‐  3,641,266 1,683,821 18,542,020 74,821,263

Others

167,325 ‐  47,863,736 7,206,317 107,324,882 227,177,140

Total

￦

1,719,579,184 81,418 105,208,115  4,195,290,084 381,360,149 342,027,936



2)2022

(Inthousandsofwon)

RevenuesOtherIncome  Inventorypurchase 

Purchaseof

propertyplantand

equipmentOtherexpenses

Associates



SDCanditssubsidiaries

￦

401,449,369 31,481,079 2,369,753 ‐ 1,482,080

SamsungGlobalResearchCo.,

Ltd.

‐ ‐ ‐ ‐ 9,634,783

SDFLEXCO.,LTD.

147,312 1,263,968 15,172,507 ‐ 56,624

ECOPROEM

‐ ‐ 2,161,138,608 ‐ 701,795

PhilenergyCO.,LTD.

‐ ‐ ‐ 139,898,976 2,065,220

OtherRelatedParties

   

ECOPROBM

‐ 311,501 1,019,537,801 ‐ 73,928

Conglomerateentities



SECanditssubsidiaries

1,368,792,891 2,287,681 2,226,515 8,143,019 59,803,135

Others

1,362,763 6,963,273 5,330,407 48,766,577 225,250,981

Total

￦

1,771,752,335 42,307,502 3,205,775,591 196,808,572 299,068,546



SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

32.RelatedParties,Continued 



(3)AsexplainedinNote12,fortheyearendedDecember31,2023,theGroupinvested ￦40,000million(￦40,000

millioninthepreviousyear)and ￦2,680million(￦2,010millioninthepreviousyear)

inECOPROEMCo.,Ltd.and

theSecondaryBatteryGrowthFund,respectively.



(4)DetailsofsignificantaccountbalanceswithrelatedpartiesasofDecember31,2023and2022aresummarized

asfollows:



1)2023



(Inthousandsofwon)

Account

receivable

Other

receivable,etc.

Account

payable

Other

payable,etc.

Associates



SDCanditssubsidiaries

￦

53,910,666



23,250



505,331 28,676

SamsungGlobalResearchCo.,Ltd.

‐



‐



‐



6,414,944

SDFLEXCO.,LTD. 

12,894



94,799



515,957



7,950

ECOPROEM

‐



‐



598,535,811



1,616,974

PhilenergyCO.,LTD.

‐



‐



‐



653,749

OtherRelatedParties



ECOPROBM

‐



20,815,867



31,229,940



400,367

Conglomerateentities



SECanditssubsidiaries

118,918,487



9,410,211



‐



118,902,279

Others 

2,329



26,518,106



600,186



110,386,009

Total

￦

172,844,376



56,862,233



631,387,225



238,410,948



2)2022



(Inthousandsofwon)



Account

receivable

Other

receivable,etc.

Account

payable

Other

payable,etc.

Associates

  

SDCanditssubsidiaries

￦

25,420,529 2,288,000 48,543 23,192

SamsungGlobalResearchCo.,Ltd.

‐  ‐ ‐  241,051

SDFLEXCO.,LTD. 

11,926 137,268 747,219 5,836

ECOPROEM



‐  66,624,825 624,318,382 193,731

PhilenergyCO.,LTD. 

‐  ‐ ‐  1,076,346

OtherRelatedParties

   

ECOPROBM

‐  16,185,276 140,527,568 10,618

Conglomerateentities

   

SECanditssubsidiaries

106,283,787 8,455,496‐122,836,552

Others 

2,329 27,315,440 729,772 71,727,457

Total

￦

131,718,571 121,006,305 766,371,484 196,114,783





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

32.RelatedParties,Continued 

 

5)Thecompensationpaidorpayabletokeymanagement(executivedirectors)fortheirservicesfortheyearsended

December31,2023and2022consistsof:



(Inthousandsofwon)



2023



2022



Short‐termemployeebenefits

￦

8,243,044



6,344,179

Post‐employmentbenefits



1,005,660



1,322,060

Otherlong‐termemployeebenefits



   (3,968,645)



5,530,000



33.Non‐controllingInterest



Informationrelatedtonon‐controllinginterestsofsubsidiariesthatarematerialtotheGroupfortheyearsended

December31,2023and2022areasfollows:



(A)Percentageofnon‐controllinginterestsandaccumulatednon‐controllinginterests



STARPLUS

(Inthousandsofwon)

2023



2022



Percentageofnon‐controllinginterests

49.0%



49.0%

Accumulatednon‐controllinginterests

￦

791,611,106



189,900,689



(B)Thesummarizedfinancialinformationforeachsubsidiarywithnon‐controllingintereststhatarematerialtothe

GroupbeforetheintercompanyeliminationsfortheyearsDecember31,2023and2022areasfollows:



(1)Summarizedstatementsoffinancialposition



STARPLUS

(Inthousandsofwon)

December 31, 2023 December 31, 2022

Currentassets￦

211,202,327



163,022,956

Non‐currentassets

1,587,528,900



224,777,149

Currentliabilities

182,728,871



31,677

Non‐currentliabilities

253,487



Equity

1,615,748,869



387,768,428





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

33.Non‐controllingInterest,Continued



(B)Thesummarizedfinancialinformationforeachsubsidiarywithnon‐controllingintereststhatarematerialtothe

GroupbeforetheintercompanyeliminationsfortheyearsDecember31,2023and2022areasfollows:,continued



(2)Summarizedstatementsofcomprehensiveincome



STARPLUS

(Inthousandsofwon)

2023



2022



Lossoftheyear￦

(30,189,536)



(25,950)

 (3)Summarizedstatementsofcashflows

STARPLUS

(Inthousandsofwon)



2023



2022

Cashflowsfromoperatingactivities

W

(5,353,266)



(87,797)

Cashflowsfrominvestingactivities



(1,216,560,274)



(229,000,661)

Cashflowsfromfinancingactivities



1,266,340,676



395,091,438

Effectofexchangeratechangesoncashandcashequivalents



2,272,674



(3,066,201)

Increaseincashandcashequivalents



46,699,810



162,936,779

Cashandcashequivalentsatbeginningoftheyear



162,936,779



‐

Cashandcashequivalentsatendofyear



209,636,589



162,936,779





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

34.StatementofCashFlows



Adjustment and changes in assets and liabilities for cash flows from operating activities for the years ended

December31,2023and2022aresummarizedasfollows:



(1)Adjustmentforcashflowsfromoperatingactivities



(Inthousandsofwon)

2023



2022

Severance&retirementbenefits

W

52,464,902



69,701,704

(Reversalof)valuationofinventories



(17,131,010)



9,826,025

Depreciation



1,659,657,716



1,408,100,379

Amortization



68,314,060



55,232,876

(Reversalof)baddebtexpense



(38,377)



(90,503)

Shareofprofitofequityaccountedinvestees



(1,017,238,435)



(1,039,696,670)

Loss(gain)onsaleofinvestments



(14,720,499)



(6,454,062)

Loss(gain)onforeigncurrencytranslations,net



27,485,627



36,723,944

Loss(gain)onvaluationofderivativefinancialinstruments



4,032,689



(19,271,872)

Loss(gain)ontransactionofderivativefinancialinstruments



(18,065,497)



(6,765,355)

Loss(gain)onsaleofproperty,plantandequipment,net



17,287,152



108,986,539

Impairmentlossesonproperty,plantandequipment



1,713,443



31,085,526

Loss(gain)onsaleofintangibleassets



(329)



318,439

Impairmentlossesonintangibleassets



2,045,303



3,128

EquityinstrumentsatFVTPL–netchangeinfairvalue



(11,564,556)



(25,378,636)

Loss(gain)onsaleofequityinstrumentsatFVTPL



(6,093)



2,718,327

Transferofprovisions



110,897,699



131,942,422

Loss(gain)noleasetermination



(8,912)



(66,013)

Incometaxexpense



420,097,455



612,913,941

Interestexpense



273,624,156



90,058,982

Interestincome



(82,954,221)



(43,378,706)

Dividendincome



(17,095,214)



(12,250,892)

Lossonsaleofaccountreceivables



38,990,126



11,662,825

Miscellaneousprofit



‐



(169,755)

Miscellaneousloss



96,519



‐

Total

W

1,497,883,704



1,415,752,593





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

34.StatementofCashFlows,Continued



(2)ChangesinassetsandliabilitiesforCashFlowsfromOperatingActivities



(Inthousandsofwon)



2023



2022

Changesinassetsandliabilities:



 

Tradereceivables

W

(483,631,437)



(673,192,991)

Otherreceivables



71,886,339



(168,058,699)

Othercurrentassets



(10,014,320)



(71,269,153)

Inventories



(134,096,583)



(678,279,892)

Non‐currentotherreceivables



(509,372)



275,832

Non‐currentotherassets



(40,732,495)



(43,767,300)

Tradepayables



(119,589,044)



851,409,875

Otherpayables



(126,041,592)



(21,751,948)

Advancereceived



338,644,388



89,026,555

Othernon‐currentpayables



(219,383,712)



368,395,413

Settlementofderivativefinancialinstruments



18,065,495



6,765,356

Paymentofretirementandemployeebenefits



(59,439,418)



(42,234,885)

Planassets 



(173,542,455)



(118,035,833)

Total W

(938,384,206)



(500,717,670)



(3)Significantnon‐cashtransactionsfortheyearsendedDecember31,2023and2022areasfollows:



(Inthousandsofwon)



2023



2022



 

Decreaseofreceivablesrelatedtodisposalofplant,property,

andequipment

W

684



13,424,571

Increase(decrease)ofpayablesrelatedtoacquisitionofplant,

property,andequipment



71,906,910



(170,378,249)





SAMSUNGSDICO.,LTD.ANDSUBSIDIARIES

NotestotheConsolidatedFinancialStatements

FortheyearsendedDecember31,2023and2022 

34.StatementofCashFlows,Continued



(4)Reconciliationofmovementsofliabilitiestocashflowsarisingfromfinancingactivitiesareasfollows:



1)2023



(Inthousandsofwon)

January1,2023



Cashflowfrom

financingactivities

 Non‐cashchanges

December31,

2023

  Newlease

contracts



Other



Currentportionof

debentures



W



219,901,411 (220,000,000) ‐ 98,589 ‐

Short‐termborrowings

2,631,281,803 59,017,649 ‐ 177,975,500 2,868,274,952

Long‐termborrowings

2,297,040,000 542,010,735 ‐ 10,474,185 2,849,524,920

Lease

liabilities 



72,105,093 (36,058,841) 40,728,597 4,277,849 81,052,698

Total W

5,220,328,307 344,969,543 40,728,597 192,826,123 5,798,852,570



Otherincludesamortizationandeffectsofchangesinforeigncurrencyexchangerates.



2)2022



(Inthousandsofwon)

January1,2022



Cashflowfrom

financingactivities

 Non‐cashchanges

December31,

2022

  Newlease

contracts



Other



Debentures W

219,762,470 ‐ ‐ 138,941 219,901,411

Short‐termborrowings

2,510,216,803 (269,004,384) ‐ 390,069,384 2,631,281,803

Long‐termborrowings

1,887,998,333 806,441,268 ‐ (397,399,601) 2,297,040,000

Lease

liabilities 



38,561,071 (30,563,962) 64,185,474 (77,490) 72,105,093

Total W

4,656,538,677 506,872,922 64,185,474 (7,268,766) 5,220,328,307



Otherincludesamortizationandeffectsofchangesinforeigncurrencyexchangerates.

