Solid Performance by Home Appliance & Air Solution Company
Helps to Bolster 2015 Results

SEOUL, Jan. 26, 2016 — LG Electronics Inc. (LG) today announced a fourth-quarter 2015 operating profit of KRW 349 billion (USD 301.38 million), marking a 27 percent increase from the same period in 2014 thanks in large part to improved quarterly profitability from home appliances and home entertainment products. The LG Home Appliance & Air Solution Company once again proved to be linchpin, reporting solid operating income of KRW 214.8 billion (USD 185.49 million) for the quarter and an increase of 57 percent for the year. Sales across all businesses in the fourth quarter of 2015 totaled KRW 14.56 trillion (USD 12.57 billion), a 3.8 percent increase over the previous quarter, although competitive conditions and currency impacts led to a 4.7 percent revenue decline from the same period in 2014.

Notwithstanding many bright spots with the introduction of industry-leading products in key categories, 2015 was a generally challenging year. Full-year operating income was KRW 1.19 trillion (USD 1.03 billion) in 2015, versus KRW 1.83 trillion (USD 1.58 billion) in 2014. As a result of sluggish global market demand for TVs and softer growth of  smartphone market during 2015, full-year revenues were KRW 56.51 trillion (USD 48.8 billion), compared with KRW 59.04 trillion (USD 50.98 billion) the previous year.

The LG Home Entertainment Company reported solid fourth-quarter 2015 operating income of KRW 109.2 billion (USD 94.3 million). Fourth-quarter revenues were KRW 4.74 trillion (USD 4.09 billion), up 11 percent quarter-on-quarter as a result of improved OLED and UHD TV sales, although revenues declined year-on-year due to a weaker global TV market and unfavorable foreign exchange movements. Based on the reaction experienced at CES^® 2016, LG believes this year is ripe for wider acceptance of both new LG OLED TVs and LG Super 4K Ultra HD units. LG is further expanding its TV marketing initiatives, exemplified by the company’s first Super Bowl commercial developed by the renowned Ridley and Jake Scott.

The LG Mobile Communications Company posted strong sales of KRW 3.78 trillion (USD 3.26 billion), a 12 percent increase from the previous quarter and unchanged from the same period a year ago, assisted by improved sales in North America. Worldwide, a total of 15.3 million LG smartphones were shipped in the quarter contributing to a total of 59.7 million units in 2015, a slight increase from the 59.1 million shipped in 2014. The smartphone marketplace is expected to be increasingly competitive in 2016 due to anticipated premium models from competitors and further price competition within the mass tier space. The introduction of two new flagship models and a more cost-competitive value chain is expected to improve profitability in 2016.

The LG Home Appliance & Air Solution Company achieved sales of KRW 3.83 trillion (USD 3.31 billion) in the 2015 fourth quarter, representing slight increase from the same quarter of 2014. In South Korea, revenues increased 13 percent year-on-year due to the popularity of the new TWIN Wash washing machines and premium refrigerators. Strong sales in developed markets such as North America and Europe helped offset weak sales in South America, the Middle East and CIS, where sales declined due to weak demand caused by lower oil prices and currency movements. Operating profit of KRW 214.8 billion (USD 185.49 million) for the quarter and KRW 981.7 billion (USD 847.75 million) for the year contributed to a strong finish for the year. Expectations are high that the introduction of the ultra-premium LG SIGNATURE lineup in 2016 will help re-energize the LG brand for home appliances in numerous competitive markets.

The LG Vehicle Components Company posted a 9 percent increase in sales quarter-on-quarter to KRW 520.4 billion (USD 449.4 million) mostly due to its growing infotainment business. With revenues growing in each quarter of 2015, the company ended the year with a solid KRW 1.83 trillion (USD 1.58 billion) in sales. LG expects the smart car and electric vehicle component business to grow measurably in 2016, highlighted by the LG-General Motors joint development of the Chevrolet Bolt electric car, which LG plans to leverage to support additional such partnerships.

2015 4Q Exchange Rates Explained

LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending Dec. 31, 2015. 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 1,158 per USD (2015 4Q).

Earnings Conference and Conference Call

LG Electronics will hold a Korean language earnings conference on Jan. 26, 2016 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will take place the same day at 19:00 Korea Standard Time (10:00 GMT/UTC). Participants 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 Jan. 26, 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 142790# when prompted.

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Company Recognized at World Economic Forum in Davos for
Leadership in Economic, Social and Environmental Sustainability

SEOUL, Jan. 22, 2016 ― LG Electronics (LG) was named one of the Global 100 Most Sustainable Corporations in the World by Corporate Knights for the third consecutive year and was also awarded the Gold Class distinction in RobecoSAM’s 2016 Sustainability Yearbook at the World Economic Forum in Davos, Switzerland. LG ranked 44th in the most recent edition, up seven places compared to the previous year.

Corporate Knights employs a comprehensive measurement system to gauge sustainability based on a corporation’s environmental and societal outcomes, as well as financial performance. The firm examined approximately 4,000 top corporations from around the world in order to compile its definitive list of the 100 most sustainable companies. Each company was analyzed across 12 key performance indicators such as R&D-based innovation, capital asset management, sustainable energy utilization, greenhouse gas emissions, and ability to offer stable employment to existing hires while also successfully integrating new employees. Despite challenging global business conditions, LG has increased its R&D investment every year with a large portion of this investment going toward the creation of new markets as well as finding and nurturing talent.

As one of the top-scoring companies in its industry, LG Electronics also qualified for inclusion in RobecoSAM’s 2016 Sustainability Yearbook in which LG received the Industry Leader, Gold Class distinction for its sustainability performance. Every year since 2004, the Sustainability Yearbook has listed the world’s most sustainable companies in each industry as determined by their score in RobecoSAM’s annual Corporate Sustainability Assessment (CSA). As in previous years, The Sustainability Yearbook provides thought-provoking snapshots of the main trends, challenges and opportunities that connect corporate sustainability initiatives with pro-sustainablity investing.

LG has also been recognized for its dedication to preserving the environment, carrying out activities that help reduce greenhouse gas emissions as well as water usage. In March 2014, LG was the first electronics corporation in the world to have its eco-friendliness confirmed through a Certified Emission Reduction (CER) certificate from the United Nations. LG has closely examined the labor, ethics, environmental, safety and health practices at its worldwide production sites as well as those of its many business partners, ensuring that all meet the EICC (Electronic Industry Citizenship Coalition) code of conduct.

“Over the coming year we will continue to create innovative products that enhance the quality of life for our customers while also actively engaging in socially responsible business practices. These are the core tenants of LG’s corporate identity, and we believe that this philosophy will enhance the company’s impact on the market ecosystem as a whole,” said Lee Choong-hak, executive vice president of LG Electronics.

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 LG Technology in Majority of Transmission System Standard
Enables Landmark Broadcast, Ushering in New TV Era

LAS VEGAS, Jan. 6, 2016 — With its first live over-the-air broadcast of 4K Ultra HD TV with high dynamic range (HDR) using the new ATSC 3.0 Candidate Standard, digital television pioneer LG Electronics (LG) is ushering in the era of next-generation television broadcasting at CES^® 2016.

The landmark broadcast, from Las Vegas station KHMP-TV’s transmitter on Nevada’s Black Mountain, is delivering pristine 4K HDR content, received for the first time on LG’s new ATSC 3.0-enabled receivers at the Las Vegas Convention Center. The signal has stunning detail with four times the resolution of today’s HDTV and offers the lifelike realism of HDR’s enhanced contrast, brightness and shadow detail.

KHMP Channel 18, owned and operated by DNV Spectrum Holdings, a broadcast group that also owns other stations in the United States, is broadcasting in Las Vegas using the ATSC 3.0 Physical Layer Candidate Standard under an experimental broadcast license from the U.S. Federal Communications Commission. Core technologies developed by LG Electronics are included in the majority of the Physical Layer Candidate Standard.

The transmission field trial during CES exemplifies the very robust transmission and high bandwidth for 4K made possible for the first time using the ATSC 3.0 next-generation standard developed by the Advanced Television Systems Committee.

“We are proud that LG technology is behind the majority of the elements of the Physical Layer transmission system,” said Dr. Skott Ahn, President and Chief Technology Officer, LG Electronics. “ATSC 3.0 is a collaborative effort among many broadcast technology experts, and our technology is part of at least 10 of the 15 building blocks of the new Candidate Standard.”

Among the many LG contributions to ATSC 3.0, the company’s technologies are included in the Physical Layer Candidate Standard’s scrambler, forward error correction, bit-interleaver, mapper, MIMO, time-interleaver, OFDM framer, frequency-interleaver, pilot and tone reserve, and guard interval.

“Thanks in large part to LG’s technology at the heart of the Physical Layer Candidate Standard, this robust system will bring a new level of flexibility for broadcasters and exciting new services for viewers. ATSC 3.0 promises to usher in the new Golden Age of broadcast television,” Ahn added.

Expected to redefine TV broadcasting for decades to come, the ATSC 3.0 next-generation broadcast standard provides higher capacity to deliver 4K UHD services, robust reception on mobile devices and improved spectrum efficiency. The increased payload capacity of the physical layer combined with HEVC encoding will allow broadcasters many more options when planning their broadcast service offerings.

“LG is leading the way in development and commercialization of ATSC 3.0 in the U.S. and in Korea,” said Ahn, who explained that this week’s Las Vegas broadcast comes on the heels of other broadcast field trials conducted in the United States and South Korea over the past 18 months by LG Electronics, its U.S. R&D Lab Zenith, and leading broadcast equipment provider GatesAir.

Those real-world field tests in Seoul, Cleveland, Ohio, and Madison, Wisconsin, represented key mileposts in LG’s pioneering developments of core technologies behind the new ATSC 3.0 Standard, he said. “The Las Vegas broadcast, with the approved ATSC Candidate Standard transmission system, again shows how we are partnering with broadcasters around the world to drive adoption of next-generation broadcasting technology.”

Development of ATSC 3.0 technologies represents the latest collaboration among LG, Zenith and GatesAir, co-inventors of the transmission system behind the ATSC A/153 Mobile Digital TV Standard, adopted by the industry in 2009. Zenith invented the core transmission system at the heart of today’s ATSC A/53 Digital Television Standard, approved by the Federal Communications Commission in 1996.

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