Premium Focused Strategy Results in Highest Profitability Ever for LG Appliances and TVs

SEOUL, Apr. 28, 2016 — LG Electronics Inc. (LG) today announced first-quarter 2016 operating profit of KRW 505.2 billion (USD 420.25 million), a 65.5 percent increase from the same period in 2015 on sales of KRW 13.36 trillion (USD 11.12 billion).

The LG Home Appliance & Air Solution Company contributed the largest amount, KRW 407.8 billion (USD 339.23 million) in operating income for the quarter, while the LG Home Entertainment Company earned KRW 335.2 billion (USD 278.84 million) in operating profit, both up significantly from the first quarter of 2015. The LG Mobile Communications Company posted an operating loss of KRW 202.2 billion (USD 168.20 million) primarily due to increased marketing expenditures for the new LG G5 flagship smartphone, while the LG Vehicle Components Company reported a modest loss of KRW 15.8 billion (USD 13.14 million) reflecting higher R&D investments.

LG’s overall global sales and profitability are expected to improve in the second quarter, with double-digit growth in revenues and higher profitability anticipated as LG continues its premium-focused strategy with LG SIGNATURE products, the LG G5 smartphone and 4K Ultra HD OLED TVs.

LG Home Appliance & Air Solution Company recorded sales of KRW 4.22 trillion (USD 3.51 billion) in the first quarter, an increase of 4 percent year-on-year due in large part to higher premium product sales and growth in its B2B operations. Operating profit and operating margin of 9.7 percent were the highest in the history of LG home appliances. Revenues in the Korean domestic market increased 11 percent from the same period the previous year thanks to strong performance of TWIN Wash washing machines, premium refrigerators and commercial air conditioners. Weaker demand caused by the drop in oil prices and unfavorable currency exchange movements negatively affected sales in markets such as the Middle East, South America and CIS, while revenues in North America and Europe remained strong.

LG Mobile Communications Company reported sales of KRW 2.96 trillion (USD 2.46 billion), a decline of 15.5 percent from the first quarter last year. Shipments of 13.5 million smartphones were 12 percent lower both year-on-year and quarter-on-quarter, mainly as a result of the business entering the slow season as well as declining shipments of existing flagship models due to high interest in the recently announced LG G5. Competition in the smartphone market will continue to increase, leading to further price erosion which LG plans to counter with a strong global push for the modular LG G5 smartphone and new mass-tier models such as its X series.

LG Home Entertainment Company reported revenues of KRW 4.33 trillion (USD 3.6 billion), down 2.3 percent from last year’s first quarter as TV shipments declined somewhat in the key markets of North America and Europe. A solid operating margin of 7.7 percent was accompanied by a 207 percent increase quarter-on-quarter in operating income, demonstrating strong evidence of the growing demand for premium OLED and 4K OLED TV products. Improved cost structure and cost competitiveness is expected to drive improved profitability in the next quarter.

LG Vehicle Components Company sales of KRW 592.9 billion (USD 493.2 million) represent a 55 percent year-on-year increase, on the back of LG’s growing automotive infotainment business, although profitability was negatively affected by increased R&D investments. The outlook for LG’s automotive business is positive, with higher expected demand for electric vehicle components and as LG expands its global reach and secures new customers.

2016 1Q Exchange Rates Explained

LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending Mar. 31, 2016. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1,202 per USD (2016 1Q).

Earnings Conference and Conference Call

LG Electronics will hold a Korean language earnings conference call on Apr. 28, 2016 at 16:00 Korea Standard Time followed by the English language conference call at 20:00 Korea Standard Time (11:00 GMT/UTC). Participants for the English conference call are instructed to call +82 31 810 3061 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at approximately 16:00 on Apr. 28, 2016. Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142810# when prompted.

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New ‘Gateway’ Device to Deliver Next-Gen Broadcast TV
to Smart TVs and Other Connected Devices

LAS VEGAS, Apr. 18, 2016 – LG Electronics today demonstrated a unique new wireless network antenna designed to receive and process ATSC 3.0 next-generation television broadcast signals and redistribute them via Wi-Fi throughout the home to connected devices such as smart TVs, tablets, laptop computers and smartphones.

Taking the wraps off a two-year development project, the company is demonstrating the ATSC 3.0 smart antenna for the first time at the 2016 National Association of Broadcasters (NAB) convention here this week. It is a featured product in the “ATSC 3.0 Consumer Experience” exhibit, co-hosted by the NAB, the Consumer Technology Association and the Advanced Television Systems Committee.

Today’s announcement underscores the momentum behind the ATSC 3.0 standard and spotlights LG’s commitment to accelerating deployment of next-generation television, according to Dr. Jong Kim, senior vice president, LG Electronics, and president of LG’s Zenith R&D Lab in the United States. “In addition to showing how such consumer-friendly products will support the rollout of next-gen broadcasting, this device, built around the world’s first ATSC 3.0 demodulator chip, exemplifies our progress,” he said.

Sam Matheny, NAB Senior Vice President and CTO, welcomed the early development of devices such as LG’s smart network antenna. “This is a unique product that combines next-generation broadcasting with widely deployed home Wi-Fi networks and is the kind of offering that can help broadcasters bring their new ATSC 3.0 signals to a range of consumer devices in a seamless manner.”

“Innovations like the LG smart network antenna will play an important role in accelerating the consumer adoption of ATSC 3.0 by enabling existing devices in the home and reducing the need for multiple converter boxes,” said Anne Schelle, Executive Director of Pearl TV, the consortium of nine major broadcast groups representing more than 200 U.S. television stations.

The ATSC 3.0 wireless network antenna is based on an LG-developed uni-directional antenna array with unique electronic steering logic designed to optimize indoor reception. LG is integrating a chip-based ATSC 3.0 tuner-demodulator with the antenna, which can be placed virtually anywhere in the home – in the attic, in a window, in a closet – wherever reception is best.

The steerable network antenna is coupled with a network interface to communicate with the in-home Wi-Fi router to allow connected devices to blend ATSC 3.0 signals and services with over-the-top Internet-delivered content. The Wireless Network Antenna also is designed to receive current “ATSC 1.0” DTV transmissions and similarly route them to an array of consumer devices.

Development of the LG ATSC 3.0 wireless network antenna, which began in 2014, is a joint effort of LG’s Zenith R&D Lab in Lincolnshire, Ill., USA, and the office of the Chief Technology Officer, LG Electronics, in Seoul, Korea.

Expected to redefine TV broadcasting for decades to come, the next-generation ATSC 3.0 broadcast television system is being designed to deliver 4K UHD services, robust reception on mobile devices and improved spectrum efficiency. LG and Zenith are key contributors to ATSC standards activities, including development of core technologies in the majority of the ATSC 3.0 Physical Layer transmission system.

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SEOUL, Apr. 11, 2016 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the first quarter of 2016.
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Tentative consolidated revenues for the first quarter of 2016 is KRW 13.36 trillion and operating profit is KRW 505.2 billion. Revenues are expected to be 4.5 percent lower than the same period the year prior while operating profit will be 65.5 percent higher year-over-year.

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These figures are the tentative consolidated earnings based on K-IFRS. This tentative earnings is provided as a service to investors prior to LG Electronics’ final earnings results including net profit and details regarding each division which will be announced officially later this month.

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LG Recognized for Sustained Leadership to Protect Environment,
Raising Awareness of Climate Change and Energy Efficiency

SEOUL, Apr. 6, 2016 ― LG Electronics has been recognized by the U.S. Environmental Protection Agency (EPA) with the 2016 ENERGY STAR Partner of the Year–Sustained Excellence Award for continued leadership in protecting the environment through energy efficient consumer electronics and home appliance products. LG also earned the 2016 ENERGY STAR Climate Communicator Award for efforts to raise consumers’ awareness of the impact of climate change.

“LG is proud of its partnership with ENERGY STAR and our positive environmental impact in the United States,” said William Cho, president and CEO of LG Electronics USA. “We’re helping American consumers experience Innovation for a Better Life by creating products that deliver energy savings without sacrificing performance or style. At the same time, we’re helping consumers understand how energy efficiency helps fight climate change.”

EPA Administrator Gina McCarthy applauded LG for its accomplishments. “By continued collaboration with ENERGY STAR, LG is helping Americans save money, save energy, and do their part to reduce our nation’s greenhouse gas emissions that exacerbate climate change. LG demonstrates a strong commitment to energy efficiency and to preserving a healthy planet for future generations, and I’m proud to recognize LG with our highest form of recognition, as ENERGY STAR Partner of the Year–Sustained Excellence,” she said.

Recognized as ENERGY STAR Partner of the Year for the five consecutive years, LG is committed to developing the most innovative and energy-efficient products that provide consumers with superior performance while lessening the impact on the planet, said Cho, who was named by CR Magazine as Responsible CEO of the Year, in large part due to his leadership in energy efficiency and environmental sustainability.

According to the EPA, “LG distinguished itself as a champion for improving the environ-ment through energy efficiency and conveying the benefits of ENERGY STAR certified products.” Key 2015 accomplishments include:

• Offering hundreds of ENERGY STAR certified models in a range of product categories including clothes washers, clothes dryers, refrigerators, televisions and monitors, and increasing the total number of ENERGY STAR certified models by 15 percent over 2014.
• Promoting the ENERGY STAR 2015 Flip Your Fridge program with a breakthrough campaign on The Ellen DeGeneres Show, and announcing its full-fledged support of the 2016 Flip Your Fridge program.
• Generating billions of impressions with an ongoing nationwide campaign about the impact of climate change and the benefits of ENERGY STAR, including integrating ENERGY STAR messaging into LG’s fan fest presence at the NCAA® Men’s Final Four® and highlighting ENERGY STAR on LG’s New York Times Square Billboard.
• Increasing its trade show presence with ENERGY STAR certified products featured at 10 events, including CES® and Greenbuild, among others.
• Reaching its more than 2,000 U.S. employees with updated materials featuring ENERGY STAR certified products and ways to reduce their own environmental impact.

Highlighting LG’s 2016 Climate Communicator Award, EPA Administrator McCarthy said, “LG has helped consumers understand how their energy-saving actions can have a positive impact on the climate.”

The 2016 ENERGY STAR Sustained Excellence Awards are given to organizations to recognize their contributions to reducing harmful carbon pollution through superior energy efficiency efforts. These awards recognize ongoing leadership across the ENERGY STAR program, including energy-efficient products, services, new homes, and buildings in the commercial, industrial, and public sectors.

Since its inception in 1992, ENERGY STAR and its partners have helped prevent a total of more than 2.4 billion metric tons of greenhouse gas emissions. In 2015 alone, ENERGY STAR and its partners provided more than $11 billion in societal benefits due to reducing damages from climate change.

LG’s ENERGY STAR accomplishments will be recognized in Washington on April 13.

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With a Total of 32 Awards, LG Electronics Proves its Industry Leadership in Design

SEOUL, Mar. 30, 2016 ― LG Electronics (LG) has emerged as the clear winner in this year’s Red Dot Awards for design excellence. LG’s impressive 32 honors include two Best of the Best awards and 30 Red Dot Awards. As a recipient of double Best of the Best awards in the same year, this recognition from Red Dot confirms LG’s place at the vanguard of both technology and design leadership.

Among the products honored as setting the gold standard in design with Red Dot’s prestigious Best of the Best award were LG Electronics’ 4K OLED TV (model 65E6) and Bottom-Freezer Refrigerator (model GA- B489SADN/GA-B489TADN), helping to give LG a diverse portfolio of award winning products unmatched by any other company.

Red Dot is widely seen as one-third of the world’s top design committees, along with the iF Design Awards and IDEA (International Design Excellence Awards). This year, out of a total 5,214 products submitted from around the world, only approximately 70 products were designated Best of the Best for their innovation and design leadership.

The LG 4K OLED TV boasts a slick appearance and chic charms while maintaining the distinctive design of LG’s premium OLED televisions. Complete with the company’s unique Picture-on-Glass concept, the LG 4K OLED TV exudes an aura of class and sophistication while bridging the gap between modern trends and timeless style. Equal parts television and modern art masterpiece, the polished LG 4K OLED TV is approachable from any angle, effortlessly blending into any environment.

LG’s emphasis on forward-thinking design can also be clearly seen in its sophisticated Bottom-Freezer Refrigerator. Unlike other models that implement unwieldy bar handles that project outward from the refrigerator, the Bottom-Freezer Refrigerator features an innovative Easy Open Handle that is tucked away at the bottom of the door, making it almost completely imperceptible. The refrigerator’s stylish trim is also equipped with refined mood lighting, making the doors easy to open at all hours of the day.

In addition to its two Best of the Best awards, LG received 30 additional honors from the judges at Red Dot. The LG SIGNATURE Refrigerator was honored for its Knock-On Door-in-Door™ and Auto Door Open features while the LG SIGNATURE Washer was recognized for its double load capability as well as its touch-enabled user interface in its glass door. Judges were also impressed by the LG SIGNATURE Air Purifier with its transparent window that allows users to watch the air purifying process at work. The LG SIGNATURE OLED TV was also honored, with judges citing its ultra-thin 2.57 mm glass panel and other luxurious elements. The LG G5 smartphone, featuring a sleek, metal uni-body with a Slide-out Battery and Modular Type design, also received honors along with three LG “Friends” (360 VR, 360 CAM, TONE Platinum), a collection of companion devices.

“We are extremely honored to receive these prestigious awards for our efforts to drive design innovation in consumer electronics and appliances,” said Noh Chang-ho, head of LG Electronics’ corporate design center. “LG is committed to design excellence and these awards are affirmation that we are on the right track.”

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