Samsung Electronics Announces Shareholder Return Program for 2021-2023

Samsung Electronics announced today its Shareholder Return Program for 2021-2023, following an in-depth review by the Board of Directors. In line with the Company’s shareholder return policy that focuses on dividends, the Board decided to increase the regular dividend payout while maintaining the framework of the previous three-year program.

• Samsung will continue to return 50 percent of the free cash flow (FCF) generated in the 2021 to 2023 period.
• The regular dividend will increase to an annual total of KRW 9.8 trillion for 2021-2023.
• As in the previous program, the Company will return any remaining portion of the 50 percent of FCF after dividend payouts.
• To enhance predictability, Samsung will share the annual FCF at the end of each year. If a significant amount of expected return has been generated, Samsung will actively consider executing a portion of it at the close of each year’s results.

As for the previous program for 2018-2020, the Company has said it was committed to returning the remaining portion of 50 percent of FCF generated over the three-year period after KRW 28.9 trillion in regular dividend payouts. Today, based on total FCF of KRW 79.2 trillion generated in the 2018 to 2020 period, the Board approved a one-time special cash dividend of KRW 10.7 trillion. In April, shareholders of record as of end of 2020 will receive KRW 1,932 per common share and KRW 1,933 per preferred share, which includes the year-end regular dividend of KRW 354 per common share and KRW 355 per preferred share, after approval in March at the annual general meeting of shareholders.

Samsung remains committed to delivering sustainable shareholder value and will continue to enhance long-term value creation.