Samsung's net cash is expected to rise from KRW 14.6 trillion (USD 13.8 billion) at the end of 2011 to KRW 26.9 trillion this year and KRW 72.7 trillion at the end of 2015, according to analysis by CLSA. Lee said Samsung would start basing its dividends on a target dividend yield, to be reviewed every three years, without explaining the reason for linking payouts to share price rather than profits. However, he made it clear that the company would continue to prioritise investment ahead of direct shareholder returns. The cash is needed to prepare for potential changes in capacity or disruptive technologies, he said, adding "I don’t believe the level of net cash balance is excessive".
The company also used the meeting to discuss concerns its growth in the smartphone market is slowing. Shin Jong-kyun, head of Samsung's mobile business, forecast annual smartphone market growth of 10 percent over the next four years, noting that global smartphone penetration was still only 21 percent. Growth will be driven by emerging markets such as China and India, as well as growing demand for LTE devices, with the latter expected to grow by 30 percent annually to 680 million units in 2017. Samsung also aims to overtake Apple as the global leader in tablet devices, a market in which he forecast annual growth of 15 percent.
