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Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTSSamsung Electronics West Africa Ltd. (SEWA)MarketingPercentage ofownership1100.0Samsung Electronics East Africa Ltd. (SEEA)Marketing100.0Samsung Gulf Electronics Co., Ltd. (SGE)Sale of electronic devices100.0Samsung Electronics Saudi Arabia Ltd.(SESAR)Sale of electronic devices100.0Samsung Electronics Egypt S.A.E (SEEG)Manufacture and sale of electronic devices100.0Samsung Electronics Israel Ltd. (SEIL)Marketing100.0Samsung Electronics Tunisia S.A.R.L (SETN)Marketing100.0Samsung Electronics Pakistan (Private) Ltd. (SEPAK)Marketing100.0Samsung Electronics South Africa (Pty) Ltd. (SSA)Sale of electronic devices100.0Samsung Electronics South Africa Production (pty) Ltd. (SSAP)Manufacture of CTV and monitors100.0Samsung Electronics Turkey (SETK)Sale of electronic devices100.0Samsung Semiconductor Israel R&D Center, Ltd. (SIRC)R&D100.0Samsung Electronics Levant Co.,Ltd. (SELV)Sale of electronic devices100.0Samsung Electronics Maghreb Arab (SEMAG)Sale of electronic devices100.0Corephotonics Ltd.R&D100.0Global Symphony Technology Group Private Ltd.Holding company100.0Harman Connected Services MoroccoConnected service provider100.0Harman Industries Holdings Mauritius Ltd.Holding company100.0Red Bend Ltd.Manufacture of audio products100.0Samsung Japan Corporation (SJC)Sale of semiconductor and display panels100.0Samsung R&D Institute Japan Co. Ltd. (SRJ)R&D100.0Samsung Electronics Japan Co., Ltd. (SEJ)Sale of electronic devices100.0Samsung Electronics Display (M) Sdn. Bhd. (SDMA)Manufacture of electronic devices100.0Samsung Electronics (M) Sdn. Bhd. (SEMA)Manufacture of home appliances100.0Samsung Vina Electronics Co., Ltd. (SAVINA)Sale of electronic devices100.0Samsung Asia Private Ltd. (SAPL)Sale of electronic devices100.0Samsung India Electronics Private Ltd. (SIEL)Samsung R&D Institute India-Bangalore Private Limited(SRI-Bangalore)Samsung Nepal Services Pvt, Ltd. (SNSL)Manufacture and sale of electronic devices100.0R&D100.0Service100.0Samsung Display Noida Private Limited (SDN)Manufacture of display panels100.0Samsung Electronics Australia Pty. Ltd. (SEAU)Sale of electronic devices100.0Samsung Electronics New Zealand Limited (SENZ)Sale of electronic devices100.0PT Samsung Electronics Indonesia (SEIN)Manufacture and sale of electronic devices100.0PT Samsung Telecommunications Indonesia (STIN)Sale of electronic devices and services100.0Thai Samsung Electronics Co., Ltd. (TSE)Manufacture and sale of electronic devices91.8Laos Samsung Electronics Sole Co., Ltd. (LSE)Marketing100.0Samsung Electronics Philippines Corporation (SEPCO)Sale of electronic devices100.0Samsung Display Vietnam Co., Ltd. (SDV)Manufacture of display panels100.0Samsung Malaysia Electronics (SME) Sdn. Bhd. (SME)Sale of electronic devices100.0Samsung R&D Institute BanglaDesh Limited (SRBD)R&D100.0Samsung Electronics Vietnam Co., Ltd. (SEV)Manufacture of electronic devices100.0Samsung Electronics Vietnam THAINGUYEN Co., Ltd. (SEVT)Manufacture of communication equipment100.0Samsung Electronics HCMC CE Complex Co., Ltd. (SEHC)Manufacture and sale of electronic devices100.0Harman Connected Services Corp. India Pvt. Ltd.Connected service provider100.0Harman International (India) Private LimitedSale of audio products, R&D100.0Harman International Industries PTY Ltd.Holding company100.0Harman International Japan Co., Ltd.Sale of audio products, R&D100.0Harman Singapore Pte. Ltd.Sale of audio products100.0Martin Professional Pte. Ltd.Sale of audio products100.0AreaMiddle East& ership represents the Company’s ownership of the voting rights in each entity, including subsidiaries’ ownerships.18

Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTSAreaChina1SubsidiariesIndustryPercentage ofownership1Samsung Display Dongguan Co., Ltd. (SDD)Manufacture of display panelsSamsung Display Tianjin Co., Ltd. (SDT)Manufacture of display panels95.0Samsung Electronics Hong Kong Co., Ltd. (SEHK)Sale of electronic devices100.0Suzhou Samsung Electronics Co., Ltd. (SSEC)Manufacture of home appliances88.3Samsung Suzhou Electronics Export Co., Ltd. (SSEC-E)Manufacture of home appliances100.0Samsung (CHINA) Investment Co., Ltd. (SCIC)Sale of electronic devices100.0Samsung Mobile R&D Center China-Guangzhou (SRC-Guangzhou)R&D100.0Samsung Tianjin Mobile Development Center (SRC-Tianjin)R&D100.0Samsung R&D Institute China-Shenzhen (SRC-Shenzhen)R&D100.0Samsung Electronics Suzhou Semiconductor Co., Ltd. (SESS)Toll processing of semiconductors100.0SEMES (XIAN) Co., Ltd.Semiconductor equipment services100.0Samsung Electronics Huizhou Co., Ltd. (SEHZ)Manufacture of electronic devices100.0Tianjin Samsung Electronics Co., Ltd. (TSEC)Manufacture of CTV and monitors91.2Samsung Electronics Taiwan Co., Ltd. (SET)Sale of electronic devices100.0Beijing Samsung Telecom R&D Center (SRC-Beijing)R&D100.0Tianjin Samsung Telecom Technology Co., Ltd. (TSTC)Manufacture of communication equipment90.0Shanghai Samsung Semiconductor Co., Ltd. (SSS)Sale of semiconductor and display panels100.0Samsung Electronics Suzhou Computer Co., Ltd. (SESC)Manufacture of electronic devices100.0Samsung Suzhou Module Co., Ltd. (SSM)Manufacture of display panels100.0Samsung Suzhou LCD Co., Ltd. (SSL)Manufacture of display panels60.0Shenzhen Samsung Electronics Telecommunication Co., Ltd. (SSET)Manufacture of communication equipment100.0Samsung Semiconductor (China) R&D Co., Ltd. (SSCR)R&D100.0Samsung Electronics China R&D Center (SRC-Nanjing)R&D100.0Samsung (China) Semiconductor Co., Ltd. (SCS)Manufacture of semiconductors100.0Samsung SemiConductor Xian Co., Ltd. (SSCX)Sale of semiconductor and display panels100.0Tianjin Samsung LED Co., Ltd. (TSLED)Manufacture of LED100.0Harman (China) Technologies Co., Ltd.Manufacture of audio products100.0Harman (Suzhou) Audio and Infotainment Systems Co., Ltd.Sale of audio products100.0Harman Automotive Electronic Systems (Suzhou) Co., Ltd.Manufacture of audio products, R&D100.0Harman Commercial (Shanghai) Co., Ltd.Sale of audio products100.0Harman Connected Services Solutions (Chengdu) Co., Ltd.Connected service provider100.0Harman Holding LimitedSale of audio products100.0Harman International (China) Holdings Co., Ltd.Sale of audio products, R&D100.0Harman Technology (Shenzhen) Co., Ltd.Sale of audio products, R&D100.0Ownership represents the Company’s ownership of the voting rights in each entity, including subsidiaries’ ownerships19100.0

Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTSAreaSubsidiariesIndustrySamsung Display Co., Ltd.SU MaterialsSTECO Co., Ltd.SEMES Co., Ltd.Samsung Electronics Service Co., Ltd.Samsung Electronics Service Customer SatisfactionSamsung Electronics Sales Co., Ltd.Samsung Electronics Logitech Co., Ltd.Samsung Medison Co., Ltd.Mirero System Co., Ltd.Domestic1Dowooinssys Co., Ltd. 2Gf-System Co., Ltd.Harman International KoreaSamsung Venture Capital Union #21Samsung Venture Capital Union #22Samsung Venture Capital Union #26Samsung Venture Capital Union #27Samsung Venture Capital Union #28Samsung Venture Capital Union #29Samsung Venture Capital Union #32Samsung Venture Capital Union #33Samsung Venture Capital Union #37Samsung Venture Capital Union #40Samsung Venture Capital Union #42Samsung Venture Capital Union #43Samsung Venture Capital Union #45Samsung Venture Capital Union #48Growth type private equity trust specialized in semiconductorsManufacture and sale of display panelsManufacture of display componentsManufacture of semiconductor componentsManufacture of semiconductor/FPDRepair services for electronic devicesCall center for repair services for electronic devicesSale of electronic devicesGeneral logistics agencyManufacture and sale of medical equipmentDevelopment and supply of semiconductorprocess defect and quality control softwareManufacture of display componentsManufacture of display componentsSoftware development and supply, etc.Technology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsTechnology business, Venture capital investmentsInvestment on semiconductor industryPercentage 5Ownership represents the Company’s ownership of the voting rights in each entity, including subsidiaries’ ownerships.as a subsidiary although the ownership is less than 50%, as the Company is considered to have a de facto controlover the investee.2 9.099.099.099.099.099.099.099.099.066.7

Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS(B)Summary of financial data of major consolidated subsidiaries is as follows:(1) 2020(In millions of Korean won)As of March 31, 2020Major subsidiaries1Samsung Display2 44,299,770Liabilities 5,288,609Profit (loss)for the periodSales 5,351,135 (382,889)Samsung Electronics America (SEA)39,343,31616,747,6608,895,272720,795Samsung Electronics Vietnam THAINGUYEN 55,761,4952,090,238(219,846)Samsung (China) Investment (SCIC)14,274,56111,167,654608,43353,010Samsung Electronics Vietnam (SEV)13,983,0791,983,8195,459,986429,629Samsung (China) Semiconductor (SCS)13,710,7843,517,904974,755109,769Samsung Electronics Europe Holding (SEEH)10,018,3077,008,523-(194)Samsung Asia Private (SAPL)9,796,144702,622482,40466,852Samsung Semiconductor (SSI)9,438,2143,670,5754,589,45065,151Samsung Display Vietnam (SDV)7,479,3424,518,9754,171,676129,019Samsung India Electronics (SIEL)7,217,7753,603,1062,560,825168,213Samsung Austin Semiconductor (SAS)7,045,012518,9021,102,177308,262Shanghai Samsung Semiconductor (SSS)6,360,4994,713,0666,222,37972,151Samsung Electronica da Amazonia (SEDA)5,945,2651,282,0391,688,661224,117Thai Samsung Electronics (TSE)2,940,877538,395905,75018,614Samsung Electronics (UK) (SEUK)2,735,3802,005,8401,115,159(30,103)Samsung Electronics HCMC CE Complex (SEHC)2,437,539957,2291,265,222135,062Samsung Electronics GmbH (SEG)2,184,7212,081,8621,505,57841,689Samsung Electronics Hungarian (SEH)2,108,666441,001739,35344,680Samsung Electronics Benelux (SEBN)2,065,196759,747630,86926,375Samsung Electronics Europe Logistics (SELS)2,050,6481,631,1693,145,239270,122Samsung Suzhou LCD (SSL)1,855,975632,477331,7687,680Samsung Display Dongguan Co., Ltd. (SDD)1,758,455325,617590,70727,813Samsung International, Inc. (SII)1,663,057572,2311,280,259154,770Harman and its1AssetsFor the three month period endedMarch 31, 2020subsidiaries2Above summary of condensed financial information is based on separate financial statements of each subsidiary.Consolidated financial data of an intermediate company that includes Harman International Industries, Inc. and its subsidiaries.21

Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS(2) 2019For the three month period ended(In millions of Korean won)As of December 31, 2019March 31, 2019Major subsidiaries1Assets 46,543,974Samsung Display1 6,421,516Profit (loss)for the periodSales 5,055,988 (472,682)Samsung Electronics America (SEA)34,704,03913,992,3978,491,807229,749Harman and its amsung (China) Investment (SCIC)14,637,22211,701,871975,49829,675Samsung Electronics Vietnam THAINGUYEN (SEVT)13,847,9342,075,1808,573,178760,102Samsung (China) Semiconductor (SCS)12,370,0702,678,742973,966133,786Samsung Electronics Vietnam (SEV)12,367,8571,418,8766,011,872539,835Samsung Electronics Europe Holding (SEEH)10,682,8477,662,042-2,486Samsung Semiconductor (SSI)9,194,1903,795,2733,009,239(67,699)Samsung Asia Private (SAPL)9,137,262579,618380,01141,988Samsung Display Vietnam (SDV)7,267,1244,587,4773,080,517(58,009)Samsung Electronica da Amazonia (SEDA)7,058,7191,594,9071,686,763202,785Samsung India Electronics (SIEL)7,042,8723,588,2412,861,929129,788Samsung Austin Semiconductor (SAS)6,437,865556,765898,842140,034Shanghai Samsung Semiconductor (SSS)5,880,6164,446,8855,162,50046,807Thai Samsung Electronics (TSE)2,912,731450,8331,028,5829,611Samsung Electronics (UK) (SEUK)2,644,3581,877,9031,098,665(7,455)Samsung Electronics HCMC CE Complex (SEHC)2,305,5871,035,5331,266,704127,328Samsung Electronics GmbH (SEG)2,258,2692,199,5611,424,996(71,203)Samsung Electronics Hungarian (SEH)2,109,654416,160653,86028,758Samsung SemiConductor Xian Co., Ltd. (SSCX)2,091,0921,954,875653,5047,316Samsung Electronics Europe Logistics (SELS)2,027,2131,891,2213,303,456170,514Samsung Electronics Benelux (SEBN)1,914,864673,887653,5391,443Samsung Suzhou LCD (SSL)1,808,262625,541363,10314,867Samsung Display Dongguan Co., Ltd. (SDD)1,795,077444,552715,76810,075Above summary of condensed financial information is based on separate financial statements of each subsidiary.Consolidated financial data of an intermediate company that includes Harman International Industries, Inc. and its subsidiaries.2(C)LiabilitiesChanges in the scope of consolidationSubsidiaries newly included in the consolidation during the three month period ended March 31, 2020:AreaAmericaSubsidiaryTeleWorld Solutions. Inc. (TWS)TWS LATAM B, LLCTWS LATAM S, LLCSNB Technologies, Inc. Mexico, S.A. de C.V22DescriptionAcquisition

Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS2. Significant Accounting Policies2.1 Basis of PresentationThe Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language(Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”).The accompanying interim consolidated financial statements have been condensed, restructured and translated into English fromthe Korean language financial statements.The interim consolidated financial statements for the three month period ended March 31, 2020, have been prepared in accordancewith Korean IFRS 1034, Interim Financial Reporting. These interim consolidated financial statements have been prepared inaccordance with the Korean IFRS which is effective as of March 31, 2020.(A)New and amended standards adopted by the CompanyThe Company applied the following amended and enacted standards for the first time for their annual reporting periodcommencing January 1, 2020:Amendments to Korean IFRS 1103, Business CombinationTo consider the integration of the required activities and assets as a business, the amended definition of a business requires anacquisition to include an input and a substantive process that together significantly contribute to the ability to create outputs andexcludes economic benefits from the lower costs. An entity can apply a concentration test, ‘optional test’, where substantially allof the fair value of gross assets acquired is concentrated in a single asset (or group of similar assets), the assets acquired wouldnot represent a business. This amendment does not have a significant impact on the consolidated financial statements.(B)New and amended standards not yet adopted by the CompanyThere are no major new accounting standards or amendments issued that are effective for the annual reporting period commencingJanuary 1, 2020.2.2 Accounting PoliciesSignificant accounting policies and method of computation used in the preparation of the interim consolidated financial statementsare consistent with those of the annual financial statements for the year ended December 31, 2019, except for the changes due tothe application of amendments and enactments of standards described in Note 2.1 and as described below.(A)Income tax expenseIncome tax expense for the interim period is recognized based on management’s best estimate of the weighted average annualincome tax rate expected for the full financial year. The estimated average annual effective income tax rate is applied to the pretax income of the interim period.2.3 Convenience Translation into United States Dollar AmountsThe Company operates primarily in Korean won and its official accounting records are maintained in Korean won. The US dollaramounts provided in the consolidated financial statements represent supplementary information solely for the convenience of thereader. All Korean won amounts are expressed in US dollars at the rate of 1,192.1 to 1, the average exchange rate for thethree month period ended March 31, 2020. Such presentation is not in accordance with generally accepted accounting principles,and should not be construed as a representation that the Korean won amounts shown could be readily converted, realized or settledin US dollars at this or at any other rate.23

Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS2.4 Critical Accounting Estimates and AssumptionsIn preparing the interim consolidated financial statements, the management of the Company makes judgements, estimates andassumptions on matters which affect the application of policies and reported amounts of assets, liabilities, income and expenses.Estimates and assumptions are continually evaluated and are based on historical experience and other factors, includingexpectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates, bydefinition, seldom equal the related actual results. Recent spread of COVID-19 may result in changes to the Company’sassumptions and estimates, but its potential financial impact cannot be reasonably estimated as of the reporting date.Critical accounting estimates and assumptions made in the preparation of the interim consolidated financial statements areconsistent with those applied in the preparation of the annual consolidated financial statements for the year ended December 31,2019, except for the estimates used to determine the income tax expense.24

Samsung Electronics Co., Ltd. and its subsidiariesNOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS3. Financial Instruments by CategoryCategorizations of financial assets and liabilities as of March 31, 2020 and December 3

accounting for its 41 associates and joint ventures, including Samsung Electro-Mechanics Co., Ltd. 1.2 Consolidated Subsidiaries (A) The consolidated subsidiaries as of March 31, 2020 are as follows: Area Subsidiaries Industry Percentage of . Samsung R&D Institute Rus LLC (SRR) R&D 100.0 Samsung Electronics Central Eurasia LLP (SECE) Sale of .