Samsung Electronies Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS Forthe year ended December 31 2017 2016 (In millions of Korean won) KRW KRW Cash flows from operating activities Profit for the period 42,186,747 22,726,092 Adjustments 36,211,232 30,754,471 Changes in assets and liabilities arising from operating activities (10,620,547) (1,180,953) Cash generated from operations 67,777,432 52,299,610 Interest received 1,581,117 1,405,085 Interest paid (542,715) (443,838) Dividends reccive d 173,305 256,851 Income tax paid (6,827,098) (6,132,064) Net cash inflow from operating activ ities 62,162,041 47,385,644 Cash flows from investing activities Net dece ae (ince) in short-erm financial instruments 387,627 (6,780,610) Disposal of short-Erm available-for-sak financial assets Acquisition of short-erm availabk-for- sale financial asets Disposal of long-erm financial instruments 499,856 3,010,003 (2,129,551) 1,750,221 789,862 Acquisition of long-erm financial instruments (1,079,355) (1,741,547) Disposal of long-kerm availabk-for-sak firancial assets 191,826 2010,356 Acquisition of long-term availabk-for-sale financial asets (358,497) (1,498,148) Acquisition of held-to-maturity financial assets Disposal of investment in asociates and joint ventures Acquisition of investment in associates and joint ventures (106,751) 355,926 2,280,203 (25,293) (84,306) Disposal of property, plant andequipment 308,354 270,874 Acquisition of property, plant and equipment (42,792,234) (24,142,973) Disposal of intangibke assets 733 6,944 Acquisition of intangible assets (983,740) (1,047,668) Cash outflow from business combinations (8,754,268) (622,050) Cash inflow from business transfers 1,248,834 Others (28,455) 19,936 Net cashoutflow from investing activities (49,385216) (29,658,675) Cash flows from financing activities Net increase in short-erm borrowings Acquisition of treasury stock 2,730,676 1,351,037 (8,350,424) (7,707,938) Procceds from long-term borrowings and debentures Repayment of long-term borrowings and debentures 998,311 1,041,743 (1,140,803) (252,846) Dividends paid (6,04,297) (3,114,742) Net increase in non-controlling interests 5,670 13,232 Net cashoutf low from financing activities Effect of exchange rae changes on cash and cash equivak nts Net (decrease) increase in ash and cash equivakents (12,560,867) (8,669,514) (1,782,270) 417,243 (1,566,312) 9474698 Cash and cash equivalents Beginming of the period End of the period 32,111442 22,636,744 30,545,130 32111442 The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.