Announcement regarding shareholder return policy

Announcement regarding shareholder return policy

On October 29, 2015, Samsung Electronics announced its shareholder return policy.

□ Special share repurchase program

- Amount: KRW 11.3 trillion (USD 10 billion)

- Method: Plan to repurchase in 3-4 phases over time

- All repurchased shares will be cancelled

□ Three year ('15-'17) shareholder return policy

- Return 30-50% of annual FCF to shareholders for the next three years.

- The annual shareholder return will consist of dividend and share buyback.

- Any shares that are repurchased will also be cancelled.

□ We are currently reviewing the introduction and implementation of quarterly

dividend policy in 2016.