Company Outlines Direction and “Break Through Limits” Management Policy
During Press Conference in Las Vegas

LAS VEGAS, Jan. 10, 2024 — LG Electronics’ (LG) CEO William Cho and key company executives introduced the strategies LG is implementing to achieve its ‘Future Vision 2030’ goal, during a press conference held for Korean media in Las Vegas, Nevada, U.S.A., on January 10.

The CEO began the proceedings by noting that LG had identified three major inflection points – electrification, servitization and digitalization – that will ultimately reshape business and the customer experience. The company aims to overcome challenges, such as persistent market and supply chain uncertainties, and accelerate growth by building a high-performance, results-oriented organization with a winning spirit.

“If 2023 was the year in which we set the direction for new changes, we will make 2024 the year in which we truly accelerate these changes,” said CEO Cho. “Future Vision 2030 is our promise to the market and to our customers, and we will strive as a company to deliver on this promise.”

Announced by the CEO last year, Future Vision 2030 is LG’s long-term goal to transform into ‘Smart Life Solution Company’ that can connect and expand the customer experience across various spaces, including home, commercial, mobility and virtual.

Strengthening Future Competitiveness Through Investment

CEO Cho set ‘Break through Limits’ as the key phrase for, and underlying philosophy of the company’s management policy in 2024. Having already established three focus areas for future growth – a non-hardware business model, B2B expansion and the development of new businesses – LG will now make an all-out effort to further refine its portfolio.

To start with, the company will maximize the potential of its future growth engines by expanding investment based on the strategic priorities of the business. This year, the company will more than double its level of investment; putting USD 8 billion* into R&D and other critical areas to strengthen competitiveness, moving forward.

High-growth and high-profit core businesses will also see larger investment in 2024. These include B2B businesses, such as vehicle components, HVAC, built-in appliances and digital signage, as well as the webOS platform business. LG will continue to invest in new businesses, such as electric vehicle (EV) charging and robotics, and has already announced plans to invest more than USD 40 billion* by 2030 to transform its portfolio for qualitative business growth.

Furthermore, beginning this year, LG will actively seek inorganic growth opportunities, such as mergers, acquisitions and partnerships, in addition to adopting strategies designed to invigorate its internal growth engines. Emphasis will also be placed on game-changing areas of technology that add customer value, such as AI and mixed reality (MR).

The CEO identified the newly established Overseas Sales and Marketing Company as a valuable asset for helping LG “break through limits.” Already playing an important role in LG’s global success, the new organization accounted for approximately two-thirds of the company’s total sales. The Overseas Sales and Marketing Company implements specialized strategies that take into consideration the unique characteristics of each region and market. Its efforts have maximized the performance of the business, worldwide, and have played a significant role in strengthening the capabilities and growth of LG’s international subsidiaries.

Achieving ‘Triple Seven’ Goals for Growth, Profit and Value

With platform-based service businesses, the B2B business and new businesses as its three, main growth engines, the company aims to reach its goal of ‘Triple Seven’: an average growth rate and operating profit of seven percent or more, as well as enterprise value that translates to an EBITDA ratio of seven.

Last year, despite a decline in market demand, the company performed impressively thanks to the growth of its B2B business. Over the past five years, the compound annual growth rate of LG’s B2B businesses has easily exceeded double digits, with the average annual growth rate of overall sales reaching around eight percent.

The Vehicle component Solutions (VS) Company has likewise emerged as a key business for LG, achieving annual sales of USD 8 billion* in its 10th year of existence. The global transition to EVs is expected to increase the demand for high-value EV parts, one of the VS Company’s core areas of expertise.

Based on the three pillars of in-vehicle infotainment (IVI), e-powertrains and vehicular lamps, the VS Company is projected to enjoy continuous, rapid growth. From 2024, it will focus primarily on securing software-defined vehicle capabilities, expanding its EV parts customer-base, and strengthening its leadership in smart lamps. To respond to the increasing number of new orders, the company will invest in boosting production capacity in Central America, South America and Europe.

The HVAC business, another important part of LG’s B2B portfolio, is growing quickly in emerging markets such as Asia and Central and South America, while in advanced markets, including Europe and North America – where demand for high-efficiency, eco-friendly products is strong – it continues to uncover new opportunities.

LG’s HVAC business aims to leverage the competitiveness of its technologically advanced components, such as motors and compressors, to expand its product lineup. After establishing a consortium for advanced heat pump research in Alaska, U.S.A., last November, LG plans to build an R&D base in Europe this year. The company also intends to broaden its business with the introduction of differentiated air conditioning products, such as the Dedicated Outdoor Air System.

Recognizing that B2B companies are impacted less directly by the economy than B2C companies, LG is actively bolstering its B2B business as a means to maintain sales and profit stability. The company has announced plans for the expansion of its B2B businesses, and is seeking to raise sales volume to more than USD 32 billion* (double the current level) by 2030 through launching a variety of new, value-added solutions.

LG will also fast-track the evolution of its overall business model, entering non-hardware areas, such as content, services and subscriptions, to complement its existing product-centric home appliance and TV companies. Leveraging the hundreds of millions of LG products already in use around the world as ‘platforms,’ the company expects to generate continuous sales and profits.

In line with this shift in business direction, the Home Entertainment (HE) Company aims to become a media and entertainment platform company and accelerate the growth of its webOS platform business. The HE Company is rapidly reinforcing the foundations of its platform business by expanding the webOS ecosystem to include smart monitors, IVI systems, and other TV makers. LG expects the webOS platform business to become one of the most potential growth engines  in the near future.

The Home Appliance and Air Solution (H&A) Company, whose success is playing a preeminent role in supporting LG’s organization-wide transformation, is also developing a smart home solution business that combines services and subscriptions. The H&A Company’s ultimate goal is to deliver on its ‘Zero Labor Home, Makes Quality Time’ vision, which goes beyond home appliances to make homelife smarter and more convenient than ever.

The subscription business, encompassing ‘daily’ services that augment LG’s home appliance products, has been growing at a fast pace in South Korea. The overseas expansion of the subscription business is underway, with strategic markets in Asia the first outside of Korea to experience its many benefits.

The percentage of LG’s total sales accounted for by its non-hardware businesses – such as the webOS platform-based content and service business, and the home appliance subscription business – has more than doubled over the past five years.

Additionally, LG will aggressively promote the commercialization of intangible assets, such as its standard essential patents in critical areas of technology including communications, media, mobility and IoT connectivity. And, during its recent reorganization, the company established new business entities to commercialize its know-how in the construction of smart factories.

Moreover, LG will secure growth opportunities offering high potential and a high degree of business synergy. As a prime example, the LG NOVA will increase its startup promotion fund to more than USD 100 million by the end of 2024, enabling the company to help discover new technologies and solutions to drive future innovation, and to lead new business segments.

LG’s recently created EV charging business is emerging as a comprehensive EV charging solutions provider, boasting advanced charging units and control solutions, remote diagnosis and servicing capabilities, as well as vehicle battery diagnosis and robust manufacturing and sales infrastructure. Entering the North American market, the company has completed the construction of a charger production line in Fort Worth, Texas, U.S.A.

In the digital healthcare segment, the company is expanding its telemedicine business in cooperation with Amwell, and will also review the viability of offering services in areas such as prevention, diagnosis, post-management and recovery. In virtual reality, another promising business area, LG is preparing for the commercialization of MR devices. At the end of 2023, the company established an eXtended Reality business unit within the HE Company, and is continuing to collaborate on augmented reality solutions with various technology partners.

In addition, the company’s Chief Technology Office (CTO), which leads the development of future technologies, is conducting intensive R&D programs to strengthen business competitiveness and discover new core technologies. In particular, the CTO is focusing on eight areas of technology: software, system on chip, AI, robotics, materials and parts, standards, next-generation computing and cloud/data.

Accelerating DX Through Data-Driven Practices and Next-Gen ERP Investment

Through digital transformation (DX), LG will provide customers with F.U.N. – First, Unique and New – experiences, and further enhance its customer-centric management system.

The company is making large-scale IT investments to establish DX across the entire organization. On top of this, LG is building N-ERP, or Next-generation Enterprise Resource Planning, to seamlessly integrate and link the company’s business processes and systems. Intellytics Customer 360, a customer data platform that enables integrated management of data gathered from diverse customer contact points, will be rolled out globally from this year.

LG’s DX efforts extend beyond the innovation of the customer experience to the improvement of value chain efficiency; from purchasing and manufacturing to delivery and sales. Last year, by applying DX to each value chain, LG raised productivity and efficiency to the value of more than USD 240 million.*

Transforming Into a High-Performing Organization and Spreading ‘Life’s Good’ Values and Philosophy

When speaking with employees, CEO Cho often quotes noted American management scholar, Peter Drucker: “Culture eats strategy for breakfast.” The CEO truly believes that a strong organizational culture is essential to turning strategy into good performance.

During his ‘CEO F.U.N. Talk’ with employees last December, Mr. Cho outlined the company’s vision for 2024, which includes becoming a high-performing organization. He stated that, “To accomplish this, we need to intricately connect our mission, vision and goals, and have a relentless focus on execution.”

United under the brand promise of Life’s Good, a variety of integrated brand activities, spanning marketing, ESG and CSR, will be initiated starting this year. The company will spread the values and philosophy that underpin Life’s Good with the spirit of a brave optimist, while also infusing the brand with a youthful dynamism. A self-professed ‘brave optimist,’ LG is an innovator that daringly faces difficulties, believes in pursuing opportunities for improvement, even during tough times, and finds solutions by listening and paying attention to its customers and the market.

Visitors can experience LG’s latest innovations at its CES booth (#16008, Las Vegas Convention Center) from January 9-12. For more information on LG products unveiled at CES 2024, please view the CES 2024 Press Kit.

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* Exchange rate: KRW 1,250 per USD.

Company’s ‘Smart Life Solutions’ Offers Look Into Future Experiences to
‘Reinvent Your Future’ in Various Spaces Beyond the Home

LAS VEGAS, Jan. 9, 2024 — LG Electronics (LG) is showcasing its smart life solutions at CES 2024, extending beyond the home to various spaces including mobility and commercial environments. Under the theme of “Reinvent your future,” LG’s exhibition presents how the company will elevate customer experiences in everyday lives through its latest innovations – including the transparent and wireless 4K LG SIGNATURE OLED TV; a smart home powered by artificial intelligence (AI), Internet of Things (IoT) and communication technologies; and the mobility concept Alpha-able.

The Ultimate TV Experience With Innovative Technology and Infinite Content

The heart of LG’s booth is the world’s first transparent and wireless 4K OLED TV, the LG SIGNATURE OLED T. Visitors are greeted by a massive media art display created by combining fifteen 77-inch OLED Ts, showcasing captivating video content with perfect black levels and vibrant colors. These displays gradually transform into a transparent OLED TV, revealing a new era uncovered by OLED T. The floating appearance of the OLED TVs emphasizes the wireless transmission of video and audio signals and connection to external devices, simplifying installation and providing more freedom in interior design.

A dedicated zone highlights the LG SIGNATURE OLED T’s transparent and wireless technology, which allows the TV to exceed the constraints of space and seamlessly blend into everyday life. Serving as a TV that complements the interior design of any space, the LG SIGNATURE OLED T offers an extension of future living experiences. Additionally, the transparent screen enhances the viewing experience of media artworks by adding depth and dimensionality.

Moving on to the next zone, visitors encounter an impressive tunnel structure featuring over 140 55-inch OLED displays. This webOS experience Zone serves as a platform to showcase an extensive range of content, curated through collaborations with diverse partners. An invitation to explore the world of entertainment powered by webOS platform, the webOS Zone treats guests to an extensive collection of video clips from a diverse range of genres, including highly anticipated series, games or sports. This immersive experience invites visitors to explore and indulge in the world of webOS, offering a captivating and interactive journey.

AI Technology Enhancing the ‘Smart Life Solution’ Experience

In the smart home exhibition zone, LG presents how AI technology can enhance its future smart life solutions. The company’s AI-powered smart home utilizes various sensors to not only digitize people’s lives but also proactively detect needs as well as propose tailored solutions based on customers’ words, actions and even emotions.

For example, the non-contact sensors installed in the house can measure and digitize customers’ heart and breathing rate, analyzing their health status to automatically adjust the indoor temperature and humidity.

In the future smart home, LG ThinQ will connect sensors and IoT devices installed throughout the home, acting as a service platform that autonomously controls the devices to ensure ideal settings without the need for customer intervention.

If, perhaps, a customer brings home a new pet cat, the microphones, cameras and mmWave sensors embedded in household devices detect the furry friend’s presence, automatically asking whether to download the ‘pet mode’ on LG ThinQ UP home appliances or recommending accessory kits specifically for pets. Additionally, the sensors even prioritize energy efficiency by switching smart products in unoccupied rooms to power-saving mode or turning them off when no one is home. The sensors can even activate crime prevention mode, sending notifications through the LG ThinQ app if any unusual activity is detected.

The zone also introduces the newly unveiled smart home AI agent, which moves on its own two wheels to welcome visitors. This AI agent serves as a versatile household assistant and a smart hub, offering comprehensive support in customers’ daily lives by connecting and managing household appliances and IoT devices. Equipped with a camera, speaker and a range of home monitoring sensors, it can gather real-time data of the home environment to facilitate appliance control. Its front display allows for expressive facial expressions, actively engaging and communicating with customers.

The commercial zone showcases a variety of customized services connected under the theme of traveling in Las Vegas. One notable example is the integration of LG MAGNIT, a Micro LED Display, with facial recognition and AI advertising solutions. This combination allows for personalized advertisements to be delivered to users in various locations, such as hotels, retail spaces and transportation areas. Other scenarios include customers receiving guidance from the GuideBot at a hotel or making payments through facial recognition at a cafe.

Alpha-able, LG’s Future Mobility Concept

Going beyond the home, LG recently redefined future cars as a “personalized digital cave.” To demonstrate this concept, the company established a dedicated zone featuring Alpha-able within its exhibition space. Alpha-able serves as a tangible representation of LG’s mobility vision, offering passengers a preview of the innovative solutions they can expect to experience in the future mobility environment.

The future mobility concept aims to deliver unique customer experiences based on three themes: Transformable, Explorable and Relaxable. By transforming the car into spaces reminiscent of home or office environments, passengers can find rest or work on the go. Alpha-able utilizes cutting-edge display technologies, including rollable, flexible and transparent displays, along with LG’s unrivaled home appliance technologies and solutions, to provide Transformable experiences that adapt to passengers’ needs. Additionally, Alpha-able offers Explorable experiences by delivering tailored information and content for unique situations, as well as Relaxable experiences for passengers to unwind and enjoy some personal time.

In addition to Alpha-able, LG has also dedicated a zone to showcase its electric vehicle (EV) charging solutions, a key growth area for the company. This zone highlights LG’s EV charger and control solution called e-Centric.

Experimental yet Innovative LG Labs and Sustainable Solutions Aligned Under ESG Vision

LG also unveiled a range of new products developed through LG Labs, the company’s experimental yet innovative product and services development project focused on creating unique customer experiences.

The LG Labs zone showcases a range of innovative products, including DukeBox by LG Labs, the all-in-one audio device seeking to reinvent the depth of audio and video experience with a modernized jukebox concept; DUOBO by LG Labs, a capsule coffee machine that extracts two flavors at once; and Bon Voyage by LG Labs, a customized living space designed to extend the life quality at home to nature. In addition, the zone includes products like LG CineBeam Qube and brid.zzz by LG Labs, which offer bold and innovative approaches to elevate the customer experience.

The company also set up the Better Life for All zone, dedicated to highlighting its efforts in environmental, social and governance initiatives. A notable feature in this zone was the LG mycup, a tumbler washer that made its debut at CES. Furthermore, LG presented its sustainable home solution, leveraging the capabilities of LG’s home energy platform to optimize energy management and utilization. This comprehensive solution offers users efficient usage, easy control and the ability to distribute renewable energy.

In addition, LG presented its ‘Universal UP Kit’, a range of accessories designed to assist all users in conveniently operating LG home appliances, regardless of gender, age or disabilities. Visitors had the opportunity to experience these accessories firsthand. The company also placed a strong emphasis on accessibility for everyone through its TV accessibility experiences.

Visitors can experience LG’s latest innovations at its CES booth (#16008, Las Vegas Convention Center) from January 9-12. For more information on LG products unveiled at CES 2024, please visit CES 2024 Press Kit.

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LG CEO Redefines AI as ‘Affectionate Intelligence,’ Highlights the Technology’s Key Role
in Elevating the Customer Experience and Creating a Better Life for All

LAS VEGAS, Jan. 8, 2024 — LG Electronics (LG) today held its LG World Premiere press conference at the Mandalay Bay Convention Center in Las Vegas, Nevada, USA, introducing its new vision and exhibition theme for CES 2024, ‘Reinvent your future.’

CEO William Cho opened the proceedings by restating the company’s ambitious goal – first announced last year – to transform into a Smart Life Solution Company. Having gained a rich understanding of global consumers and their living spaces for close to seven decades, the company is now going beyond the home, expanding its business into diverse spaces including mobility, commercial and virtual. In every arena, the company aims to improve the customer experience by focusing on five key elements dubbed 3C2S: Care, Connectivity, Customization, Servitization and Sustainability.

AI Redefined as ‘Affectionate Intelligence’

In its journey to innovate and elevate the customer experience, LG has identified AI as one of the most essential enablers of success. Rather than fixating on the evolution of the technology itself, LG is dedicated to demonstrating how AI can provide tangible benefits in the real world.

The company redefined AI as “Affectionate Intelligence,” revealing a belief that AI can foster a customer experience that is more caring, empathetic and attentive.

Real-Time Life Intelligence

During the press conference, CEO Cho highlighted the unique characteristics of LG’s AI solutions, starting with its capacity to harness a wealth of data, in both scale and quality. Among the 500 to 700 million LG products currently in use worldwide, there are many smart devices equipped with AI-supported intelligent sensors that are optimized to learn and analyze users’ ‘physical’ and ‘emotional’ life patterns.

Whereas many companies rely on internet-based data to train their AI, LG has the advantage of being able to draw on ‘real life’ data gathered from billions of connected devices, encompassing LG smart products and a wide range of IoT devices. This dataset can provide valuable insight into customer-device interactions, as well as customers’ environments, behavior patterns and emotional states. This multi-faceted data can also give the company a more complete picture of its customers’ lives at home, enabling the delivery of better and smarter lifestyle solutions.

Orchestrated Intelligence With LG AI Brain

CEO Cho went on to explain the integral role played by the LG AI Brain, a powerful processing engine driven by LG’s large language model. Leveraging the company’s vast repository of user data, the AI Brain forecasts customers’ needs based on user-product interactions and contextual learning, performs advanced reasoning processes and generates optimal solutions through orchestrating the actions of physical devices.

Ultimately, this allows the company to provide intelligent services and experiences for the various spaces in customers’ lives, all delivered in a more intelligent and efficient manner, showcasing the attentiveness embedded in LG’s concept of Affectionate Intelligence.

Commitment to Responsible Intelligence

LG is acutely aware of its responsibility to employ AI in an ethical manner and is dedicated to being accountable for the impacts and consequences of its decisions and actions. The company aims to develop AI systems that benefit all users, promote safe behavior and ensure the security of all collected personal data.

Highlighting this commitment is the company’s robust data security system, LG Shield, designed to protect personal data and information at every stage of the process, from collection and storage to utilization. Dedicated to realizing Responsible Intelligence, LG aims to surpass required industry benchmarks for the implementation of AI.

In his concluding remarks at LG World Premiere, CEO Cho emphasized that LG’s approach to AI is firmly rooted in the belief that customers should have full control. He also added, “Life’s Good. This is our solid and uncompromising promise that motivates us to create a better life for our customers, even in the age of AI.”

At the event, CEO Cho was joined on stage by Jung Ki-hyun, vice president and head of LG’s Platform Business Center, and Eun Seok-hyun, president of LG Vehicle component Solutions (VS) Company, who introduced AI-based innovative technologies and strategies.

Starting with the home, vice president Jung presented a blueprint for LG’s AI-based smart home. In line with the vision to transform into a smart life solution company, the company is incorporating LG’s unique ‘Affectionate Intelligence’ technology into the ThinQ platform. Mr. Jung not only unveiled innovative new services, such as ‘ChatThinQ,’ a generative AI chatbot that enables natural conversations with customers, and ‘3D Home View,’ a 3D visualization of the home for integrated control of spaces in an intuitive way, but also revealed plans to launch a new smart home hub.

And, in mobility, the company shared its vision for cars as a ‘living space on wheels’ powered by software-defined vehicle (SDV) solutions. In line with this vision, Eun Seok-hyun, president of LG VS Company, introduced LG AlphaWare, the company’s suite of software solutions for SDV. LG AlphaWare includes versatile software modules to enhance existing vehicle operating systems and to assist in building new platforms; operation solutions to help software developers throughout the SW development process from design to deployment; in-cabin entertainment solutions that enable high definition content viewing and high quality sound; and human-machine interface solutions that utilize AR/MR and AI technologies to provide an immersive in-vehicle experience.

Visit LG’s dedicated CES site (www.LG.com/CES2024) and the LG Global YouTube channel for more information on what the company has in store for CES 2024, and to keep up with all the latest news during the event (January 9-12).

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Dedicating a Special Exhibition Zone to Experimental yet Innovative Products,
LG Presents Creative Ideas Tailored to Various Lifestyles

SEOUL, Jan. 2, 2024 — LG Electronics (LG) is gearing up to showcase its latest lineup of innovative and pioneering products at CES 2024, the world’s largest consumer electronics and IT exhibition.

LG will dedicate a special exhibition space to LG Labs, its marketing platform focused on delivering experimental yet innovative products and services. This year, the size of the LG Labs zone has more than doubled compared to CES 2023, aiming to present creative ideas tailored to various lifestyles, offering diverse customer experiences.

One of the highlights at the exhibition will be the unveiling of the DukeBox by LG Labs, an innovative audio product that seamlessly combines the charm of vacuum tube audio with cutting-edge transparent OLED panel technology. It aims to deliver a new music experience by combining old-fashioned sensibilities with state-of-the-art technology, seeking to reinvent the depth of audio and video experience with a modernized jukebox. With front-facing speakers at the bottom and a 360-degree speaker at the top, it offers an immersive audio experience that surrounds the listener. The transparency of the OLED display can be adjusted, creating a captivating visual effect reminiscent of a vacuum tube audio system enclosed in a transparent glass box. Moreover, the DukeBox is versatile and can be used to enjoy high-quality content such as movies, or even create a cozy fireplace ambiance where the vacuum tube is visible amidst the flickering flames.

LG will also unveil an upgraded version of its Bon Voyage by LG Labs, a customized living space designed to extend the life quality at home out into the nature. Based on customer feedback, the Bon Voyage has been redesigned to the size of a camping trailer, optimizing space utilization and mobility. With dimensions of 2-meter width, 3.8-meter depth and 2.2-meter height, it can be furnished with various furniture and appliances, including a bed, refrigerator, electric stove, water purifier, Styler and shoe care products. Its versatility allows for comfortable enjoyment anywhere, with the ability to be easily parked indoors and connected to a car.

Another exciting product to be showcased is the DUOBO by LG Labs, a capsule coffee machine that extracts two different coffee capsules simultaneously. Inspired by space exploration, the DUOBO was introduced through a crowdfunding campaign in the US. The exhibition space will feature a large model of the DUOBO together with the space pet character CUBO, creating an inviting atmosphere for global customers.

In addition, LG plans to exhibit other products such as the LG CineBeam Qube, LG gram Fold, LG XBOOM, LG StanbyME Go, LG tiiun mini and brid.zzz by LG Labs, all born from the company’s fearless approach to taking on bold challenges.

Kim Hyo-eun, vice president and head of Brand Management Division at LG, expressed the company’s commitment to providing global customers with a firsthand experience of the innovative products and services that embody LG Electronics’ ‘Pioneering DNA.’

Visitors to CES 2024 in Las Vegas from January 9-12 can check out LG Labs products at the company’s booth (#16008, Central Hall, Las Vegas Convention Center). To keep up with all of LG’s exciting announcements at CES, visit www.lg.com/ces2024 and LG Global YouTube channel.

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