Q4 2013 Samsung Electronics Ltd Earnings Conference Call on …aod.teletogether.com/sec/20140124/2013Q4_script.pdf · 2014-11-07 · including launching 480 PPI full high definition

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EDITED TRANSCRIPT005930.KS - Q4 2013 Samsung Electronics Ltd Earnings ConferenceCall

EVENT DATE/TIME: JANUARY 24, 2014 / 12:30AM GMT

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C O R P O R A T E P A R T I C I P A N T S

Robert Yi Samsung Electronics - Head of IR

Pak Ji Ho Samsung Electronics - VP, Memory Marketing

Lee Chow Hun Samsung Electronics - VP, Display Planning

Kim Han-Joong Samsung Electronics - VP, Mobile Planning

Song Il Jung Samsung Electronics - VP, Visual Display Marketing

C O N F E R E N C E C A L L P A R T I C I P A N T S

S.C. Be Barclays - Analyst

J.J. Park JP Morgan - Analyst

Ricky Seo HSBC Securities - Analyst

Sau Wan Sok Hanguk Investment Securities - Analyst

Peter Yu BNP Paribas - Analyst

Do-hoon Lee CIMB - Analyst

Nicholas Gaudois UBS - Analyst

Han Sung Hun Deutsche Securities - Analyst

Byun Hanjoon KB Investment & Securities - Analyst

Park Young-Joo Hyundai Securities - Analyst

Simon Wu Bank of America Merrill Lynch - Analyst

Kim Dong Wan Macquarie Securities - Analyst

Peter Lee Woori Investment & Securities - Analyst

Matt Evans CLSA - Analyst

Sundeep Bajikar Jefferies - Analyst

Jae Lee Daiwa Securities - Analyst

Lee Seung Woo IBK Securities - Analyst

Sung-June Hwang Samsung Securities - Analyst

P R E S E N T A T I O N

Operator

Good morning and good evening. First of all thank you all for joining this conference call and now we will begin the conference of the Fiscal Year2013 Fourth Quarter Earnings Results by Samsung Electronics. This conference will start with a presentation followed by a divisional q-and-a session.(Operator instructions). Now we shall commence the presentation on the Fiscal Year 2013 Fourth Quarter Earnings Results by Samsung Electronics.

Robert Yi - Samsung Electronics - Head of IR

Good morning this is Robert Yi. Thank you for joining us this morning on our conference call. First I would like to introduce two gentlemen fromour business units in today's call. First [Pak Ji Ho] is a VP of Memory Marketing, [Yun Sun Moon], Director of the System LSI Business Strategy, Kim

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JANUARY 24, 2014 / 12:30AM, 005930.KS - Q4 2013 Samsung Electronics Ltd Earnings Conference Call



Han-Joong, senior VP of Mobile Planning, Song Il Jung, the VP of Visual Display Marketing and [Lee Chow Hun] VP of Samsung Display as well as[Kim Yun Gun] who is the VP of Investor Relations. Let me remind everyone that today's presentation contains forward looking statements basedon the environment as we currently see it and all such statements are subject to certain risks and uncertainties that could cause our actual resultsto be materially different from these expressed in today's discussion.

Before we begin our presentation I would like to announce that our Board of directors approved a yearend dividend of KRW13,801 per share attoday's (inaudible) meeting. Including the interim dividend of KRW500, the total dividend for 2013 is KRW14,301 per share which is about 79%increase from that of the previous year.

2014 showed a return will be determined through a comprehensive review of our business environment based on the recently announcedshareholder return policy with a call to significantly increase the percent of free cash flow allocated to the shareholder return in comparison to thatof 2013.

Now into our fourth quarter results. During the fourth quarter amid macro uncertainties such as strong Korean won and increased concerns overpossible QE tapering in the US, our earnings were lower than what the market expected due to negative current impact of about several hundredbillion won and a special bonus to employees to celebrate the 20th anniversary of new management which was about KRW800 billion. Excludingthese two items, the fourth quarter operations results I believe were respectably sound.

The total revenue increased marginally during Q4 while our SG&A expenses increased mid- single digit reflecting fourth quarter seasonality. Thenon-operating income was up by KRW800 billion primarily due to gains from the sales of investment in Seagate.

Looking at our business segment results, the memory business continued to deliver strong results under favorable market conditions while thedisplay business earnings fell sharply due to a drop in TV panel price and panel inventory adjustments by the set makers resulted in OLED panelshipment decline.

For consumer electronics, earnings improved was led by increased TV sales amid strong seasonality. For IM, the earnings were less than expecteddue to year-end inventory adjustments as well as increased seasonal marketing expense.

Throughout 2013 we continuously faced macro headwinds such as delayed economic recovery in Europe and the economy downturn in emergingmarkets. The uncertainties of the US fiscal policies coupled with the unstable global financial market resulted in increased global currency volatility.

With respect to our business environment, while price competition intensifies in the set businesses, the memory market conditions continue toimprove and OLED panel demand growth continued led by smartphone growth.

As for LCD panels, the continued industry overcapacity caused the profitability in the industry to decline. Despite such challenging businessconditions, we achieved record high earnings in 2013 led by sustained growth in the IM business and improved the earnings in the componentbusinesses including memory and OLED.

Our 2013 revenue was up by 14% from the previous year mainly led by growth in handsets and semiconductor. Our operating profit increased bymore than KRW7 trillion to around KRW37 trillion and operating margin improved to 16% and ROE to 22.4%.

For our component business the memory business increased sales in low power and high performance DRAMs based on our 20 nano class cuttingedge process. We reinforced solid foundation for future growth by developing vertical NAND mass production technology, the first in the industry.

For system LSI we improved mobile AP technology with Octa Core products and developed high tech sales CIS business. Despite our efforts, wesaw the earnings decline significantly for system LSI due to lower application processor demand from major customers and substantial investmentsin R&D.

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For display we strengthened our market leadership position and reinforced the foundation for future growth through our technology innovationsincluding launching 480 PPI full high definition OLED panels and commercializing the world's first curved flexible display. Also we introduced theprototypes of bend it and foldable flexible panels.

Moving on to our set business for the smartphone business we maintained over 30% market share in both developed and emerging market andachieved the number one position in the global market. Our tablet sales were up sharply and the total shipment doubled from the previous year'slevel, enhancing our leadership position in the mobile industry. Additionally, we strengthened retail channel strategies such as opening Samsungexperience stores.

We also led the wearable device market by launching Galaxy Gear smartwatch. We also entered the B2B market with our KNOX enterprise securitysolution thereby laying the foundation for continuous growth. For TV business despite the market growth remaining flat we solidified our marketleadership position by maintaining industry best profit margin and a top market share position for eight consecutive years.

Moving onto our capital expenditures, in 2013 we invested KRW23.8 trillion in capital expenditures which was in line with our plan. Looking at theexpenditures by business segment, we invested about KRW12.6 trillion in semiconductor and about KRW5.5 trillion in display.

Now I will go over 2014 outlook. While US and Europe are expected to lead the global economy recovery, few macro uncertainties, such as increasedemerging market currency rate fluctuations, are expected to continue. For the memory market supply/demand balance is expected to remain tightgiven limited investments by old players. We will expand cutting edge process migration and increase the mix of high value added products andsolutions to strengthen profitability. At the same time we will solidify our technology leadership with a vertical NAND production.

For system LSI we look to improve profitability by introducing 20 nano application processor and expanding our customer base. In addition, wewill continuously strengthen competitiveness of LSI products by expanding high-pixel CIS based on ISOCELL technology. Furthermore, we willprepare for future growth by successfully migrating to the 14 nano process by the end of the year.

For the display business we expect to secure profitability by increasing sales of premium products including ultra-high definition and curved panels.For OLED panels we will expand its applications beyond high end smartphones to achieve sustainable sales growth. Furthermore, we plan tointroduce upgraded flexible panels to further widen the technology gap with our competitors.

For smartphones, in addition to our flagship models within the high end category we will continue to expand our smartphone line up by offeringnew products customized for specific geographies and address diversified price ranges.

Also, we will outperform the market growth by actively addressing the growing LTE demand in Europe and China. For tablets we expect to growboth market share and improve profitability through expanding our product offerings by creating a new large screen product category andincreasing mid to low end product mix. With the Galaxy Gear and other new innovative products, we will strengthen our leadership position in thewearable device market.

Additionally, we look to secure solid profitability by enhancing new retail experiences such as the experience shops and maximizing resourceefficiencies. For TV we plan to outperform the market growth and secure profitability by increasing sales of premium products including ultra-highdefinition, curved and over 60 inch large sized TVs, mainly driven by World Cup focused promotions and ultra- high definition TV market expansion.

Looking at the quarterly earnings trend, we expect 2014 to follow a pattern of weak first half and strong second half. Under such a seasonal trendit would be challenging for us to improve our earnings in the first quarter as we expect the weak seasonality of the IT industry to put pressure ondemand for component and TV businesses.

For your reference, our 2014 tablet expenditure plan has not been finalized yet. However, we expect the total amount as well as the allocations toeach business to be at a similar level as that of the last year. We will continue to focus our investment to secure future technologies such as cuttingedge process migration from memory, developing next generation process technologies for system OSI, and expanding OLED flexible panel capacityfor display.

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Now I will turn the conference call over to the gentlemen from the business units to present each business' fourth quarter performance and futureoutlook. We will start from semiconductors.

Pak Ji Ho - Samsung Electronics - VP, Memory Marketing

Good morning this is Pak Ji Ho from the memory marketing team. I would like to present the memory market conditions in our (inaudible) for Q42013. As for DRAM market, PC DRAMs remains solid due to seasonality while graphic DRAM demand increased on the back of new game consolelaunches. Also mobile DRAM demand increased due to the trend of higher specification requirements in the mid to low end smartphones.

As for NAND market, SSD adaption by high end PC continued to increase while SSD demand from enterprises, including data center servers, remainsstable. Demand for both tablet and high density card grows under year end seasonality. However the contents for high end smartphones were abit lower than expected.

Looking at our business reserves, as for DRAM we continue to expand our 20 nanometer class process and put efforts to enhance profitability bymanaging product mix in a flexible manner focusing on high value added products for new computing platforms. As for NAND, we continue toexpand 10 nanometer class process while focusing on profit improvement through sales expansion of high density and high performance solutions.

Our Q4 DRAM-based shipments increased by nearly 10% quarter-on-quarter while price increased by low single digit percentage. Our Q4 NANDbased shipments grew by mid single digit percent quarter-on-quarter while price fell by high single digit percentage.

Next I will comment on the memory market outlook and our strategies for 2014. For DRAM market we expect demand from enterprises, includingdata center servers and graphic DRAM demand for game consoles to continue to grow. Also we expect mobile driven demand to be driven up bythe trend of higher specification requirements in the mid to low end smartphones while PC driven demand to remain solid.

On NAND market, SSD adoption rate and gigabyte per system in data center servers are expected to increase led by clouding service expansion.We expect mobile related demand to remain solid given the increasing trend of high density mobile storage for high resolution.

On the supply side, we expect big growth in 2014 to be limited as was in 2013 given reduced migration efficiency with increased CapEx andtechnological difficulties. For Samsung Electronics we will keep product competitively through continuous process migration by managing ourproduct mix in a flexible manner to respond to market changes. With such efforts, we will continue to improve our revenue and profitability.

In Q1 of 2014 overall memory demand is expected to decline versus last quarter due to low seasonality. However we expect the demand declineto be less than previous years given solid demand from data center servers and demand for game consoles and also high density colors fromindividual consumers. We expect overall demand and supply to stabilize but there is the possibility of fluctuations from supply side uncertainty.

We expect the industry's DRAM and NAND-based shipments for the Q1 to remain the same as the previous quarter. On a year-over-year basis weexpect the annual bit growth of DRAM and NAND to be around mid 20% and mid 30% respectively. Meanwhile we expect our DRAM and NANDbit growth for Q1 to be similar with the market have reached while our annual bit growth to exceed the industry.

Moving onto the system LSI business. During Q4 our overall components demand growth for high end mobile was slower than expected. Ourrevenue slightly increased compared to Q3 led by increased AP shipments for major customers and new product. Entering Q1 of 2014 we expectour revenue to decrease quarter-on-quarter due to low seasonality and customers' inventory adjustment.

In 2014 we plan to introduce 20 nanometer mobile AP products and strengthen high value LSI product lineups, such as ISOCELL image sensors.We will also make every effort to build a firm foundation for stable future growth through preparing 14 nanometer FinFET process (inaudible) andexpanding customer base. Thanks very much.

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Lee Chow Hun - Samsung Electronics - VP, Display Planning

Good morning. This is Chow Hun Lee from Samsung Display Planning. I would like to present our results in market conditions for the first quarterof 2014. As for the LCD market during the first quarter due to inventory adjustment by TV set makers, TV panel demand has slightly decreasedcompared to the previous quarter with continued ASP decline. For IT panels, as tablet makers released their new products preparing for the yearend peak season, tablet panel demand increased. Meanwhile, laptop and monitor demand remained weak due to tablet sales expansion and weakreplacement demand.

Looking at our business result for large LCDs, panel shipments decreased by low single digit per cent over the last quarter. ASP decline and higherdepreciation from China (inaudible) operation led to profit deterioration of small and medium-sized panels. Overall earnings decreased QoQ dueto lower sales from customers' inventory adjustment.

Now, let me present the future outlook. Looking forward in 2014 we expect TV set sales to pick up and tablet growth to continue. However, thereis a possibility of slowing smartphone growth. Under these market conditions for TV panels we will enhance our UHD TV panel line ups. We willsolidify our customer base and increase panel sales through our full line up strategy by focusing on both premium product such as curved andover 60 inch large screen TVs as well as entry level line ups. We will also pursue sales expansion for tablet, financing product line ups and customerbase.

As for OLED panel business, we expect competition with LCD panel makers to intensify further due to slowing growth in the high end smartphonebusiness. Despite such challenging market conditions, we will strive to develop new products and improve productivity to meet demand for highend smartphones.

At the same time, we will pursue sales expansion in the mid-end smartphone panels to make stronger result. In addition we will solidify our marketleadership by expanding OLED panel application into variable devices and tablets, and differentiate our product with innovative technologies.

Looking at the first quarter outlook, while overall panel demand is expected to decline on the seasonality, we expect emerging market demandto increase given scheduled global sports event and the China Labor Day holidays. As our major customers are releasing their new product weexpect demand for both LCD and OLED panels to increase after the first quarter. Secure mid to longer term growth engines will reinforce ourcustomer base for new product designing and we will be well-prepared for a possible demand pick-up after the first quarter. Thank you for listening.

Kim Han-Joong - Samsung Electronics - VP, Mobile Planning

Good morning everyone. This is Han-Joong Kim from the Mobile Communications business. I would like to present the first quarter business resultand 2014 outlook for the LTE Mobile Communications division.

During the first quarter of 2013 market demand for both smartphones and tablets increased from the previous quarter due to seasonality. As forour mobile communications business, our business earnings decreased QoQ led by seasonally increased marketing expenditures and [one-time]expenses. Our smartphone shipment slightly decreased mainly due to year-end inventory adjustment and a high base effect resulting from theexceptionally strong performance in Q3. Meanwhile our tablet shipment significantly increased compared to the previous quarter.

Now, let me discuss the business outlook for 2014. In 2014 we expect the total smartphone market shipment to grow by [10]% or higher, drivenby LTE service expansion in Europe and China as there is continued demand growth in emerging markets. Tablet market shipment is also expectedto grow by more than 20% from the previous year.

We aim to outperform the smartphone market by solidifying our leadership in the high end product line up expansion and strategically respondingto increasing demand in emerging market is a competitive product portfolio for the middle to low end. In addition, we plan to expand our LTEbusiness with our global LTE market leadership and advanced LTE technologies including voiceover LTE and carrier aggregation.

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Turning to tablets, we have tried to continue solid sales momentum through larger display devices and innovation in user convenience. Furthermore,as for Galaxy [Gio] there is a new trend, we have continued to introduce new products to (inaudible) the wearable device market.

Also, we have continued to focus on expanding our B2B business. This year we have strived to continue solid business result by combining ourstrength in excellent products, global retail infrastructure and creative marketing activities. As for the networks business, we have focused onexpanding domestic and overseas LTE business.

Moving on to the outlook for the first quarter of 2014, we expect smartphone and tablet market demand to decrease compared to the previousquarter due to the typical seasonality. For our smartphone business we aim to increase our sales from the previous quarter by actively respondingto LTE market growth with new models such as the Galaxy Grand 2. For tablets, we will focus on increasing shipments by centering our productportfolio with the Galaxy Note Pro and the Galaxy Tab Pro.

As for the networks business, we will continue to focus on expanding overseas LTE business. In closing, we expect our smartphone shipment forthe first quarter of 2014 to increase by a mid-single digit percentage and our tablet shipment to increase by a low single digit percentage from theprevious quarter.

In terms of product mix, we expect smartphone shipment to account for around high 70% of the total mobile phone shipment. We expect ourblended ASP to remain at a similar level as the previous quarter. Thank you.

Song Il Jung - Samsung Electronics - VP, Visual Display Marketing

Good morning. I am Song Il Jung, Visual Display Sales and Marketing team. Let me brief you on the first quarter result. As for the flat panel TV marketin the first quarter we believe the market should achieve the high 20% growth quarter-on-quarter due to strong seasonality and slight year-on-yeargrowth, driven by growth momentum in emerging market. Compared to the previous year, while emerging market including Asia, the Middle Eastand Africa, are likely to witness low single digit year-on-year growth driven by replacement of the CRT. (Inaudible) market will experience negativeyear-on-year growth, affected by Europe economic situation.

As we successfully carried out promotion during the peak season we managed to improved performance both year-on-year and quarter-on-quarter,exceeding market growth in terms of sales volume and value. We also strengthened our leaders in the premium TV market by expanded UHD TVsales, especially in the USA, European, Chinese, Korean market and the sales of large size TV over the 50 inches. In digital appliance business, wewitnessed [a slide] quarter-on-quarter due to the extensive year end promotion and increased sales of our premium product largely in developedmarket.

Now let me briefly share with you the market outlook. As for the flat panel TV market in 2014, we expect the negative growth slide to slow indeveloped market while the growth momentum will continue in emerging markets. Amid expected strong demand in the first half due to theBrazil World Cup, we predict that the flat panels market is likely to grow by low single digit and the LCD TV market will increase by middle singledigit year-on-year.

As manufacturers are expecting UHD and the larger size TV line ups, demand for the premium product will significantly increase and competitionamong the TV market will be intensified further. To cope with such a market condition we will try our best to improve our sales performance bycarrying out more aggressive promotion for global sporting event and (inaudible) through the preparation for new product launching in the firsthalf.

With our unique design, technological leadership and the global (inaudible) capability we will increase the sales of our premium products includingUHTV, [Corby] TV and larger size TV over the 60 inches. We will also actively respond to diversity [in regional] market conditions with our entry levelLED TVs and region specific products. Particularly in this first changing UHTV category our UHTV offer differentiates benefit our customers.

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Samsung UHTV as an evolving TV not only offered superior picture quality but also support upcoming (inaudible) through its Evolution Kit thatwill set Samsung TV apart from the others. We will also continue to lead the new premium TV market with our Corby TV, a new TV category, orputting an IMAX-like immersive viewing experience.

In the first quarter of 2013 as we entered into the weak demand season negative, quarter-on-quarter growth is expected but we predict positiveyear-on-year growth by low single digit due to the demand increase by digital transition in emerging markets. As for the digital appliance business,despite continuous sluggish demand in the emerging markets, slight year-on-year growth is expect in 2013 thanks to the economic recovery inadvanced market.

Therefore we will focus on maintaining our leadership in the premium market with the successful launch of innovative product such as [chip]collection and improving productivity by expanding business specific product line-up. Furthermore, we will expand our (inaudible) coverage,continue to work for the greater efficiency of the global operation and do our best to secure stable profitability. We will also market type preparationfor the new models to [preoccupy] demand for premium product in the advanced market. Thank you.


This will conclude this part of the presentation. Before we move into our q-and-a session I have two comments to make. First, for the bettercommunication and clear delivery of the messages we will be conducting the q-and-a session with consecutive translation, so please understandthat it may take a little longer but I think it will be better for everyone's understanding. Second, I would like to ask everyone once they get a chanceto ask a question to do it one at a time.

If you have any additional questions we'll make sure that your questions are heard and you will get the ample opportunity. With that, let's start theq-and-a.

Q U E S T I O N S A N D A N S W E R S

Operator

Now q-and-a session will begin. (Operator Instructions). The first questions will be presented by Mr. [S.C. Be] from Barclays. Please go ahead, sir.

S.C. Be - Barclays - Analyst

(interpreted) I have a brief question regarding the IM business. In 2014 I am expecting that the IM business will be put under earnings improvementpressure, for example by changing its product mix, increasing the shipments to mid to low end hand phones. I'm wondering what your plans oroutlooks are in terms of this? Also last year you mentioned that there were some marketing expense increasing factors. Do you think that theincreased factors for the marketing spend could decrease a bit in 2014?

Also, last year there were some bold investments, for example for the best buy experience shops. Do you think that this would continue this yearas well?

Unidentified Company Representative

(interpreted) Well, this year, looking at the industry environment we do expect that the industry will become a bit more difficult with growth slowingdown and competition becoming more fierce, but in 2014 we plan to continue solid growth in both the smartphone and tablet as well as increasingour business position in the wearable and B2B space.

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On the smartphones, we will of course continue to expand our flagship line up but at the same time we will be actively expanding into the newLTE robot market such as Europe and China, and also continue increase sales in the low to mid end smartphone market as well.

Also I believe there are still markets where we can potentially grow further, for example there are markets in regions where the smartphonepenetration rate is still low or our market share is relatively low and we will continue to pursue these market growth opportunities. On the tabletside we will also continue to for example launch new products such as the NotePRO 12.2 inch and also increase our retail capabilities such asintroducing more experience shopping.

In terms of the marketing, we will actively leverage global sports events such as the Sochi Olympics and also increase our retail capabilities, butbased on a strategy of selection and concentration we will try to raise the efficiency of our marketing spend and try to lower the ratio of marketingbudget to revenue compared to last year.

Operator

(interpreted) The next questions will be presented by Mr J.J. Park from JP Morgan. Please go ahead sir.

J.J. Park - JP Morgan - Analyst

Thanks for taking my question. I have a quick question on the system LSI. Can you please talk about how much 20 nano accounts for the totalsystem LSI capacity? Then talking about the 14 nano FinFET, when do you expect to tape out the 14 nano FinFET and roll out of the commercialproduct? Finally, (inaudible) DRAM market outlook, is there any chance you could convert some of the system LSI capacity into the DRAM in 2014?Thank you.


(Interpreted) Regarding the first question, our 20 nano process work is on schedule. It's difficult for us to give you the exact share in our overallcapacity, but we consider the 20 nano technology as a node for us to build up our process competitiveness even further and so, in general, theshare of 20 nano capacity will not be large in our total LSI capacity.

Regarding the 14 nano, the 14 nano work is also on schedule. Mass production is scheduled for either end 2014 or early 2015.

Regarding the third question of whether we have plans of converting the system LSI capacity to DRAM capacity, to give you the answer first, wehave never considered such a conversion. Actually, the processes between the two are very different and will take quite a lot of prep time to makethat transition happen. So that will be a decision that would not be happening in the short term.

Operator

(interpreted) The next questions will be presented by Mr Ricky Seo from HSBC Securities. Please go ahead with your question.

Ricky Seo - HSBC Securities - Analyst

(interpreted) I have a question regarding your process migration plans. During the opening comments, it was very much emphasized the memoryefficiency that you have. My question is, what was the portion of the 25 nano in the fourth quarter and what would be the plans for the first quarterof this year? I would appreciate if you could give us some specific numbers regarding that portion. Also, going forward, I'm not sure if the nextnode is either 21 or 22 nano, but in terms of migration, when do you think that would happen?

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(interpreted) You specified the processes into 25, 22 and 21 nano, but each company has a different definition in terms of the nodes. So in general,if we can define this as a 20 nano level, or a 20 nano class process technology, I can confidently say that 20 nano class technology is already a coretechnology in all of our product lines and accounts for a major portion of our volume. Of course we have plans for additional shrinkage, but I thinkeven at current level, our cost competitiveness is industry top and we will continue to give you updates on our progress.

Operator

(interpreted) Next questions will be presented by Mr [Sau Wan Sok] from Hanguk Investment Securities. Please go ahead with your question.

Sau Wan Sok - Hanguk Investment Securities - Analyst

(interpreted) I have a question regarding the memory business. The companies have been trying to restrain from supplying or increasing the supplyof DRAM, but we're now seeing some of the companies actually increasing their CapEx as well as increasing their capacity. Does this imply thatyou may, from Samsung Electronics' perspective, see more than a growth higher than the mid 20% in terms of the shipment? What comments doyou have regarding the investments being made by the other companies? Does Samsung Electronics have plans of expanding its DRAM capacityas well?


(interpreted) As we have mentioned in previous earnings conference calls, in 2014 we have no plans of increasing physical capacity on the DRAMside. The other companies are investing currently in terms of capacity and CapEx, but I don't think those investments will lead to capacity increasesduring this year.

The investments that are being made currently by the other countries will probably come online in the second half of next year or after that, whichleaves us the only option of migration. But in order to migrate, there is a limit in terms of the physical space additionally that we can use. In additionto investments, migration itself takes time. So due to all of these considerations, in 2014 we still believe that the potential for growth would belimited.

Operator

(interpreted) The next questions will be presented by Mr Peter Yu from BNP Paribas. Please go ahead sir.

Peter Yu - BNP Paribas - Analyst

(interpreted) I have a question regarding the IM business. You've mentioned the expansion of the LTE markets in both Europe and China. In thatcontext, what is the size of the Chinese LTE market this year that you expect?

Also, Apple has signed an agreement with China Mobile and I'm trying to figure out the actual impact this would have on your business. Do youthink that this would increase competition on the high end side and therefore be a pressure on your business in China? Or do you think that withChina Mobile actively pushing towards the 4G space, the other carriers would have to also respond and this would eventually end up expandingthe high end smartphone market, increasing the size of the entire pie and actually become an opportunity for Samsung?

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(interpreted) According to the research firms, the Chinese LTE market in terms of phones is estimated this year to be about 17 million units. Actually,we think that the LTE market in China could grow faster than what's expected, but this would also depend on when the FDD-LTE licenses will begiven out.

As you mentioned, yes we are expecting competition in the Chinese market to become more fierce than before, but as LTE is rolled out, this willdrive greater demand for the high end smartphone and we believe that this poses a good business opportunity for us as well.

Based on our LTE technology competitiveness as well as experience in other LTE markets around the world, also based on our premium brandimage that we command in China, Samsung will try to be the leader in the Chinese LTE space as well.

Operator

(interpreted) The next questions will be presented by Mr Do-hoon Lee from CIMB. Please go ahead with your question.

Do-hoon Lee - CIMB - Analyst

I have a question regarding the display panel business. There was a rapid decrease in the earnings in the fourth quarter. Can you divide that intocauses of volume related, ASP related and cost increase related? Also, do you think that versus 2014 or do you think that this year the display panelperformance or earnings will improve?

Unidentified Corporate Representative

(interpreted) First of all, to give you a bit more detail on the reasons of the decreased earnings in the display panel business in the fourth quarterlast year, first of all, in terms of the LCD panels, the set companies themselves went through an inventory adjustment and this led to a slight decreaseon the demand side.

Also on the LCD panel side, another cause for the decreased earnings was the decrease in the ASP. Also last year the Chinese fab went into operation,increasing depreciation and other cost factors. So these all contributed to the decreased earnings during the fourth quarter.

The OLED panel, also the customers went into inventory adjustments and shipments decreased, leading to earnings decrease quarter on quarter.

Regarding the second part of your question of whether the earnings for the display in 2014 has a possibility of improving, first of all on the TV side,we plan to expand the UHD line up.

Our strategy is to have a full line up, so we will focus not only on expanding the line up on the ultra large sized premium models that are, forexample, the curved or the 60 inch plus models, but also build up our mid to low end products so that we have a full line up which would lead toa solid customer base in order to increase shipment.

Also for the LCD tablets, our strategy is to have also a full line up ranging from the top premium to mid to low range and also to reinforce ourcustomer relations in order to increase shipments.

For the OLED, we will continue to launch new products and also increase our productivity in order to actively respond to the demands generatedfrom the high end handset business.

For the OLED, our strategy is to not only respond to the high end smartphone needs, but also actively generate demand from the mid to low endsmartphone panel businesses to actively improve the business performance this quarter and year.

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At the same time, we will further enhance our market leadership by creating products that will be adopted by the new categories of products,including wearable products and tablets.

Operator

(interpreted) The next question will be presented by Mr. Nicholas Gaudois from UBS. Please go ahead with your question.

Nicholas Gaudois - UBS - Analyst

Good morning, first question on the mobile site and I'm going to pull up on memory. The first question, the market is somewhat concerned aboutthe larger display iPhone, convincing some Android users potentially to switch back to iOS in the second half of the year. Do you consider this asa threat? How do you plan to address it and how much do you think at this stage the separation between iOS and Android is effectively prettymuch fixed (inaudible) effectively by a very influential market?


(interpreted) First of all, I would like to ask for your understanding that we try to refrain from directly commenting on the competitors.

Actually these large smartphones were a space or category that we ourselves created in 2011 by launching the five inch Galaxy Note with the S10and we have created this segment and we are the leaders of this large smartphone segment.

If you look at the shipment of the Note products which most recently launched (inaudible) Note 3, each new generation has greatly outsold theprevious generation and I believe this reflects the market awareness that large smartphones equals Samsung. Also last year we even added the sixinch Galaxy Mega and by doing so enhanced our competitiveness even further in this large smartphone segment.

Our strategy therefore is to offer more differentiating displays within the large display smartphone market and also have differentiating userexperiences and interfaces such as the S10 and multi window function in order to further strengthen our leadership in the large face smartphonespace.


Okay Nick you said you had another follow up question.


Yes thank you very much. Just moving this to memory -- could we maybe have some date on your readiness for 3D NAND flash ramp ups, since Ithink (inaudible) fab in China is supposed to start next month. Maybe a little bit more granularity on the initial capacity deployed for phase 1 aswe've seen effectively some fairly chunky orders coming through equipment vendors over the last quarter. Thank you.


Nick our translator missed the first part of your question.


Sir, do you mind repeating the first part of your memory question?

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Sure. I just wanted to get an update on your readiness for 3D NAND flash production as we believe you're about to start volume production in yourChina fab next month? What would be the level of capacity broadly speaking your intent to deploy for the first phase since we have seen severalsemi cap equipment vendors of fairly large orders in Q4 to support that ramp up? Thank you.


(interpreted) The current status of the 3D NAND which for us will be more commonly referred to as V-NAND last year we went through the samplingprocess. We have sent the high density, high reliability SSD samples for the enterprise purposes and currently the customers are going throughqualifications processes and we have heard that the qualification process is progressing rather smoothly.

Also, if you look at most press releases during the early part of this year there aren't many media stories that are expecting increased demand forthe high density and high speed data centre such products. Therefore I think this is a reflection but we have been receiving more companiesrequesting for sample.

In terms of our ramp up speed and the size that will depend on the feedback that we get from the sampling process and the qualification process.To conclude our V-NAND work is going as scheduled smoothly and the expect speed of the ramp up will depend on the qualification processresults.


Thank you very much.


Okay thanks Nick. Next question (spoken in Korean).

Operator

(interpreted) The next questions will be presented by Mr. [Han Sung Hun] from Deutsche Securities. Please go ahead sir.

Unidentified Speaker

(interpreted) I have a question regarding the DRAM business, you have said that this year there are various factors that restrict supply. For examplethere have been limited amount of physical space available and also the amount of time for the processing itself becoming longer as we move onin terms of process migration. I am wondering what impact in terms of capacity -- the input capacity of wafers this would have in terms of Samsung'sperspective how much would the wafer capacity decrease due to these limiting factors to DRAM supply?


(interpreted) I am sure you are aware that as we migrate in terms of processes the number of steps increase. That means we need more equipmentand so not only do we need more space to put the equipment but the line itself gets longer.

The actual deficiency of this process migration, that is the amount of capacity that is lost in the process would depend by each company, each lineand each equipment. Actually this is where the competitiveness of the business is determined. It's in terms of the efficiency on how you migrate

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from process to the next generation process. As we have mentioned, overall the Company has already prepared for this process migration andhave allocated our capacities in preparation and accordingly.

Therefore as I mentioned in the opening comments, we expect our bit growth to actually outpace the overall industry growth rate. I think a wayof comparing the efficiency and process migration between companies indirectly will be to look at each company's CapEx as well as their bit growthprojections and this will be a way of determining the competitiveness of each of the players in this segment.

Operator

(interpreted) The next questions will be prepared by Mr. Byun Hanjoon from KB Investment & Securities. Please go ahead with your question.

Byun Hanjoon - KB Investment & Securities - Analyst

(interpreted) I have a question regarding the wearable business. In 2013 Samsung launched the Galaxy watch and became a market leader in termsof the wearable device market. In 2014 what is your product strategy? Do you have any key strategies for example in launching differentiatingproducts in the wearable space? Also, do you expect to see contributions from the wearable business to your earnings to increase this year?


(interpreted) Yes in the wearable space our basic strategy is to continue our leadership as the first mover in the wearable device market by introducingnew concept products as well as increasing new product offerings to expand the choice by the consumers.

Also considering the fact that these wearable devices are something very personal that people carry around or wear around all day, we will focuson the new design upgrades for example in terms of diversifying the color and materials and making them more fashionable. Also, we will try tobuild in more features that actually beneficial and that the users will find actually beneficial in their everyday lives.

In terms of product strategy, we will also expand the number of smartphone models that can sync to our wearable devices and also further lookinto business opportunities in smartphone and smartcar -- ideas that are becoming a hot topic more recently. We will of course through thesestrategies increase the contribution to earnings from the wearable business and also actually work as a stimulant in creating the overall wearablemarket as well.

Operator

(interpreted) The next questions will be presented by Mr. (inaudible) from Hanguk Investment Securities. Please go ahead with your question.

Unidentified Participant

(interpreted) I have a question regarding the UHD TV ultra-high definition TV business. This year in the overall market how much do you think theUHD TVs will account from the overall TV market? Also, considering this share in the overall industry, what will be Samsung's approach to the UHDTV? Will it try to ship more in terms of share than market or will your UHD TV business be in line in terms of share of your total TV business with themarket?

Also, many people are expecting that the Chinese companies will be launching mid to low end UHD TVs this year. What will be Samsung's strategiesagainst this? Will you try to actively respond to the Chinese competition coming in in the mid to low end segment?

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(interpreted) Well, first of all this year in UHD the overall market for the UHD TV this year is expected to rapidly grow. Last year the UHD TVs wereabout 1.9 million unit market. This year it's expected to be a 12.7 million unit market.

Of course, as the industry leader in the TV space, Samsung Electronics has various strategies to respond to this rapid growth. Our growth will bein line with -- we will grow in line with the market and we -- our specific strategies would be that we will have a diverse line-up and also differentiateour products in terms of design, for example building Timeless or curved UHD TVs. Also we will adopt further the Evolution Kit technology whichwill further expand the market for the UHD TV adoption.

We launched our UHD TV in the second half of last year and since October in the number one markets, for example the European and US marketswhich are the largest markets for UHD TVs in the world we have been maintaining the number one position and we continue to maintain thisleadership.

Regarding the Chinese competition launching, especially the mid to low end segment mass market products in the UHD TV space we will -- ourbasic strategy in our overall UHD market is to have a full line-up from the ultra-premium large size down to the mid to low end to have a full line-up.And in terms of the product mix, we will respond flexibly depending on the market situation while maintaining our market leadership.

Operator

(interpreted) The next questions will be presented by Mr. Park Young-Joo from Hyundai Securities. Please go ahead with your question.

Park Young-Joo - Hyundai Securities - Analyst

(interpreted) I have questions related with the System LSI business. First of all, the question is regarding the application process of the XNote, andI would like to know if possible more specifically what was the progress that you've achieved in the XNote side in 2013, and do you have any specificgoals for this in 2014 going forward? Also my second question is about the baseband chip which we have heard that you have been developing.I would like to be given -- I would like to hear an update on the current status of these development efforts on the baseband chip side.


(interpreted) Regarding the XNotes, we launched the Octa Core last year and this has given us the market leadership position in this product. Also,regarding the baseband chip we have continued to develop a chip that would -- that combines both the AP and baseband. It went into massproduction in September last year. And combined with our XNote capacity or capability this has actually given us a competitive edge in the product.


Next question please (spoken in Korean).

Operator

(interpreted) The next questions will be presented by Mr. Simon Wu from Bank of America Merrill Lynch. Please go ahead with your questions.

Simon Wu - Bank of America Merrill Lynch - Analyst

(interpreted) My question is in regards to tablet business which recorded tremendous growth in the fourth quarter of last year. I'm wondering, doyou have a specific reason to explain this tremendous growth in the fourth quarter last year? Is it just simply because new products are very

15






competitive, new products were launched, for example the 10 inch product, or was there a marketing that was very successful, or is this a reflectionof change in your global strategy? Also, do you think that this trend will continue and when do you think it will contribute to achieving a two digitprofit margin for the Company?


(interpreted) Yes, in the fourth quarter we did somewhat grow and I think that this is a reflection of all our strength, for example with good productsas well as our excellent marketing and retail capability. And this year we will continue to work very hard to not only increase the shipment but alsothe profitability of the tablet business. In terms of our product strategies for this year on the premium tablet side, we will continue to create newmarket categories by launching high definition large size tablets.

You would have noted the NotePRO as well as the TabPRO that was unveiled in the CES. In addition to having a large display, these products canactually have a multi-window function where you can launch up to four apps on the screen and in other ways have enhanced the usability of thetablet significantly. We believe that these large size tablets are the answer to the post-PC era.

In terms of the mass market tablets, we will continue to maintain and expand our Galaxy TAb series and also have very competitive offerings forall of the price points. Also we will continue to co-operate and work together with the local content and services companies so that we can offereven greater user benefits in all of the specific markets.

With such product strategies we will pursue growth in all of the global markets and also we will focus on further developing the B2B business forthe tablet. In terms of profitability we will further strengthen the profitability of the tablet business by increasing high end shipment and alsoachieving greater economies of scale.

Operator

(interpreted) The next questions will be presented by Mr. [Kim Dong Wan] from Macquarie Securities. Please go ahead with your question.

Kim Dong Wan - Macquarie Securities - Analyst

(interpreted) I have a question regarding on the display side the AMOLED display, there was a phone that uses this launched last year. I'm wonderingwhat are the roadmap for the next mobile technology, for example, vented or side edge? Can you give us roughly when this -- such displays couldbe commercialized in smartphones and what is the possibility of such new AMOLED displays being adopted on your flagship models?


(interpreted) To take that question first from the display business side, yes we -- these side vented side displays or vented displays which we wouldjust call together as the vented displays. We are currently working on the vented displays with the goal of going into mass production during thisyear.

In terms of the exact time or scale of that mass production, it is difficult for us to give you exact numbers at this point since we are still talking withour customers.

Operator

(interpreted) The next questions will be presented by Mr. Peter Lee from Woori Investment Securities. Please go ahead, sir.

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Peter Lee - Woori Investment & Securities - Analyst

(interpreted) I have a question regarding the NAND side to Vice President Pak. We did already have some talk about the 3D NAND technologywhich I believe is a new curve in terms of technology progress, but there's also talk of (inaudible) VNAND. What comments can you offer regardingthat? And also the SSD demand for the enterprise servers don't seem to be picking up as fast as the market had expected. Could you offer somecomments about that as well?

Pak Ji Ho - Samsung Electronics - VP, Memory Marketing

(interpreted) Well, since we tend to talk more about the 3D NANDs or the VNANDs in terms of the NAND space, we often don't have a chance tocomment on the 2D or the planner which may trigger unwanted misunderstanding. But to give you an update on our 2D migrations, during 2013on our 2D side we did go into mass production and ramp-up on the 10 nano NANDs.

We are further in the adjustment work and we are confident that we would -- what we produce this year will be more competitive than what theother suppliers will be producing with their process migration. We plan to go through developments, mass production and ramp-up on the 2DNAND side during this year but the specific timing of our development, mass production and ramp-up will be available in the second quarter.

So in the 2D we will continue our shrinkage effort so that we shrink until the limit of that process technology so that we are able to replace all ofthe existing applications. In terms of the 3D, the advantages, of course, is that it offers higher reliability as well as lower power and enables higherdensity and therefore can actually open up new usage applications that were not available for the planner. So for the 3D NAND technology, as Imentioned previously, we are in a very successful and smooth sampling phase and we will, of course, follow this up with further shrinkage whichwe will be keeping you up to date in further conference calls, as well as press releases.

So in terms of usage of VSS, in terms of , for example, SSD and storage, with the telecommunication speed and other speeds of the devices becominghigher, there is greater demand for the storage also to become faster, to become more dense and as well as to bring more bit into smaller phonefactors. I think this is the overall trend in the market that's driving the demand for SSD. That is why we expect to not only continue to grow thisyear versus last year, but also you may actually see SSD being adopted in areas that were not thinkable previously.

Operator

(interpreted) The next questions will be presented by Mr. S.C. Be from Barclays. Please go ahead with your questions.

S.C. Be - Barclays - Analyst

(interpreted) I have a question regarding shareholder return policies, especially since the analyst day event last November, overall market expectationfor a shareholder return was raised. I'm wondering if there was further progress in terms of making target dividend yields or percentage of freecash flow was specific since November?


(interpreted) First of all, I would like to recap, as I mentioned in the opening comments, that the dividend payout for this year, 2013, will be increasedby about 80% year on year.

Also, as I have mentioned, our shareholder return policy for 2014 will also be decided within the broader framework that was announced lastNovember.

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Regarding within that framework, there was also mention of a certain percentage of the free cash flow being given as shareholder return and ifthe question is what that percentage would be in 2014, frankly speaking, as of current, we are not able to mention any decisions that are maderegarding this. But our goal, if I may say, for 2014 is to have that significantly increased.

That will be a significant increase versus 2013.

Operator

(interpreted) The next questions will be presented by Mr Matt Evans from CLSA. Please go ahead with your question.

Matt Evans - CLSA - Analyst

Thank you and good morning. Could you break down the non-semi non display CapEx? Because it seems like that amounted to over KRW5 trillionin 2013 and I have a follow up question after that.


(interpreted) To break down the non-semi non display CapEx for 2013, first of all on the set side, there were about KRW2.5 trillion CapEx spent onbuilding out manufacturing facilities for both the TV and the wireless side, the mobile side.

Also, aside from that, there was about KRW3 trillion made at the corporate level, at the enterprise level. These would be investments, for example,in the research center.


Okay and it seems that based on the disclosure from the other conference calls for the previous nine months, about 50% of the semiconductorcapex was executed in the fourth quarter, is that correct?


(interpreted) Yes, that's correct.


Could you explain or elaborate on why it was so concentrated in the fourth quarter or how that works? It just seems a bit counter-intuitive.


(interpreted) Well there are various reasons for this concentration in the fourth quarter, one being that the CapEx for the RE NAND, the verticalNAND, was also concentrated in the fourth quarter.

Also, some of the CapEx that was executed in the fourth quarter for the semiconductor side was part in line with the demand forecasting, thedemand outlook that we have for 2014. We thought that the demand outlook for 2014 justified further investments, for example, in migrationduring the fourth quarter. Also, some of the fourth quarter CapEx executions were related with manufacturing facilities looking forward towards2015 businesses.

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Okay, thank you very much.


Okay Matt.

Operator

(interpreted) The next questions will be presented by Mr. Sundeep Bajikar from Jefferies. Please go ahead with your question.

Sundeep Bajikar - Jefferies - Analyst

Thank you and good morning. My first question is on the foundry side and then I have a follow up. How should we think about foundry revenuesthis year? Do you think there's a chance that foundry revenues might grow this year? If you could help us understand the dynamics, that would begreat. Also, for the fourth quarter, was the sequential decrease in semiconductor profits mainly due to higher R&D spend on the system LSI site?Thank you.


(interpreted) In terms of business strategy for the foundry, in 2014 our basic strategy is to increase the share of our 28 nano, as well as to attractmore customers to have a stable business base.

The share of the foundry business in our overall revenue in both 2013 and 2014 will be around 10%, but we will continue to grow by migratingonto the next generation processes.

To answer your question regarding our fourth quarter earnings which was lower than what was -- about our fourth quarter earnings, to explainthat, I think there are several causes, one being that the component demand from the high end mobile side was not as high as originally expected.This limited sales and also there was the exchange rate factor. The R&D spend is one of the factors, as you mentioned and there were other one-offfactors that explains the results for the fourth quarter.


Thank you. My next question--


Oh, sorry, sorry.


My next question is on the mobile business. How should we think about the mix from B2B or enterprise penetration in smart phone primarily butalso tablet for Samsung this year compared to last year? Can you share with us the progress that Samsung is making its KNOX pilots, for example,thanks?

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(interpreted) We don't disclose the B2B result separately from either the smart phone or the tablet businesses but we plan to continue to growand to be able to maintain a share similar to last year.


Thank you.

Operator

(interpreted) The next questions will be presented by Mr Jae Lee from Daiwa Securities. Please go ahead with your question.

Jae Lee - Daiwa Securities - Analyst

(interpreted) My question is about your strategy of differentiating your smartphone. It seems in general the smartphones that are out in the marketare very similar in terms of their hardware specifications now. Do you have plans of, for example, differentiating your smart phones in terms ofdesign or pieces in the look? And can we expect some of these new products to be in the market during the first half of this year?


(interpreted) Even though it's difficult for me to go into all of the design features that we are considering, as we have always done, we have useddesign as a lever to differentiate ourselves in terms material and different colors being adopted to our products.

Also a major feature of our product strategy this year would be to further expand our flagship family and to offer consumers a greater breadth ofchoice within the flagship family, even.

Also in the LTE side we plan to continue our dominance and leadership in the LTE smartphone business, leveraging our competitive technologywhich was proven by the world's first commercialization of voiceover LTE as well as carrier aggregation technology. Also, our differentiated approachto the carriers, for example, our support of (inaudible), HDD and SDD LTE and also with our full product line up that also is a very attractive part of-- at all price points.

Also another major feature of our strategy is to leverage the Galaxy here and the wearable products. We will increase the number of smart phonesthat can synch to Galaxy here and wearable products, which will help create further sales in both spaces.


(Spoken in Korean)

Operator

(interpreted) The next questions will be presented by Mr Lee Seung Woo, from IBK Securities. Please go ahead with your question.

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Lee Seung Woo - IBK Securities - Analyst

(interpreted) My question goes to the mobile business. Can you give us a rough portion of your smart phones last year divided into high-end,mid-end and low-end? And of course it would depend on the market this year but do you have plans of changing that composition this year insmart phones, that is the share of high-end, mid-end and low-end?

Kim Han-Joong - Samsung Electronics - VP, Mobile Planning

(interpreted) We don't provide the share specific of high-end versus mid-end to low-end but I can that we are expecting continued increase in theshipment of high-end smartphones.

Operator

(interpreted) The last question will be presented by Mr Sung-June Hwang from Samsung Securities. Please go ahead with your questions.

Sung-June Hwang - Samsung Securities - Analyst

(interpreted) I have several follow-up questions for clarification of some of the topics that were discussed previously. First regards the (inaudible)plant, which it was explained targets mass production at the end of 2014 and 2015. But looking at the site itself, the building pretty much lookslike it will be completed during the second quarter. So my question is am I mistaken in that assumption or will the mass production time dependon how the customer orders come in?

Also the (inaudible) plant is a two story structure and I'm wondering if you're planning to build that larger capacity on both the first and secondfloors or is the building designed in a way so that if necessary down the road you can, for example, one from Logic to DRAM, is that physically notpossible by the way the building was designed?

Also, previously you mentioned that Foundry accounts for about 10%. Since there is large speculation in the market, if a certain customer decreasesthe order volume does that mean that the LSI business as a whole will not be able to grow? Also, you mentioned that it will be difficult to improvethe earnings in the first quarter but does that include or does exclude the one-off factor, the special bonuses that were paid out? Because lookingat the quarterly earnings results for last year it seems that they already reflect the special bonuses?


(interpreted) To give you an update on our (inaudible) plant, which is the System LSI line, the target of course, as you mentioned is to completethat in end of late-2014 or early-2015 mass production. And in the second half of this year, we will be bringing in the line equipment and completingthe preparations to go into mass production.

Regarding the second part of the question of whether it will be technically possible to convert the larger capacity to DRAM or what lines will beset up on which floor those decisions have not yet been made.

I think your second question was regarding the fact that our market share is 10% and whether we will be able to continue to grow even if we losefor example key customers. Our basic strategy is expand our supply to beyond the high-end but also to develop for example customers in the midto low-end space. Also attract additional customers for the AP as well as additional customers and new customers to the Foundry business, andalso develop categories for example, the high pixel sensors, would be also an additional item for the overall business mix.

Regarding the last question about our outlook for the first quarter, yes, the outlook for the first quarter comes in that we are not expecting thesame one-off expenses that we had last year. The reason why we're expecting that growth would be difficult despite this versus the first quarter

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is because as you know the first quarter has seasonality issues. Especially for the TV business, it is a very slow season so that is one impact on theearnings for the first quarter.

Also this leads into decreased demand for our component businesses, which also would make the prices soft as well. This is why we're expectinggrowth would be difficult in the first quarter versus fourth quarter of last year.

(Spoken in Korean).

Editor

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by theCompany sponsoring this Event.

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