Diverse Portfolio Shows the Potential of Innovative Technology Combined with AI 

BERLIN, Aug. 30, 2018 — LG Electronics (LG) will be prioritizing its LG ThinQ brand at IFA 2018, spotlighting its innovations and vision at the prominent tradeshow in Berlin, August 31 to September 5. LG will be highlighting how its advanced LG ThinQ solutions are designed to make technology-powered radical lifestyle transformation a reality for users worldwide.

More than one-third of the company’s massive IFA exhibition space will be centered on AI, with a range of LG ThinQ products displayed in three different lifestyle zones: ThinQ Travel, ThinQ Gourmet and ThinQ Style. Each zone will be expertly designed to reflect the diverse lifestyles of modern consumers and will incorporate AI products into natural yet futuristic home environments. The distinct zones will illustrate how LG ThinQ presents benefits for every aspect of life in vital areas such as style, cuisine, home comfort, mobility and entertainment.

The ThinQ Travel zone will demonstrate just how easy it is to search for the perfect holiday destination via LG AI TVs and then book flights and accommodations using the LG G7^ThinQ smartphone. The Google Assistant will soon be available on all webOS-based LG AI TVs in seven new markets: Australia, Canada, France, Germany, South Korea, Spain and the United Kingdom. The platform, already successfully launched in the United States, also will now support up to five languages as part of LG’s global strategy to raise the bar for voice control solutions. With the Google Assistant built in, LG’s AI TVs will offer a streamlined experience that allows users to expertly manage daily tasks, find answers to important questions and control compatible smart home devices. IFA visitors can then move on to the IoT living room designed in collaboration with Italian luxury furniture company Natuzzi, a breathtaking living space that was featured at Milano Design Week. This welcoming zone highlights the control capabilities of XBOOM AI ThinQ speakers by illustrating how they can be used to alter the settings of connected sofas and lighting installations.

The intelligent InstaView ThinQ refrigerator takes center stage in the culinary-themed ThinQ Gourmet zone. Here, visitors can experience firsthand the advanced capabilities of the refrigerator to recommend recipes and instantly adjust cooking conditions for the connected oven and other kitchen appliances.

The ThinQ Style zone showcases LG’s wide variety of voice-controlled appliances, including the new LG Styler ThinQ. The latest Styler comes equipped with unique features designed to enhance user convenience while keeping clothes cleaner, more hygienic and stylish – all now achieved through voice commands. Many of the ground-breaking LG products in the three zones were recently recognized by the European Imaging and Sound Association (EISA) for their advanced technology, design and innovation.

Across from the LG ThinQ lifestyle experience zones is the core tech zone, highlighting the innovative technology embedded in LG ThinQ products such as LG OLED TVs and LG SUPER UHD TVs as well as the LG Centum System. It is here that the 88-inch 8K OLED TV will be featured, with its 7,680 x 4,320-pixel resolution and ability to render deep blacks and vivid colors while also making wide viewing angles possible. Other core technologies unveiled for the first time in this zone include the revolutionary 173-inch Micro LED display, consisting of arrays of microscopic LEDs that form individual pixels. The screen will be located in a dramatic home cinema environment that highlights its ability to customize screen sizes according to user needs.

Also featured at IFA will be LG CLOi robots, ranging from serving robots to a wearable robot. This collection of advanced robots will be instrumental in fulfilling LG’s vision for AI both inside and outside the home. LG’s wearable CLOi SuitBot will be on display for the first time in this zone. Ideal for use in industries such as manufacturing and construction, the LG CLOi SuitBot will enhance the quality of life by improving mobility for its wearer.

Complementing the attention on LG ThinQ, visitors to the LG IFA booth will be greeted by the awe-inspiring LG OLED Canyon that delivers an immersive dive into awe-inspiring sights from across the world. Five beautiful landscapes – Columbia Icefield, Iguazu Falls, Antelope Canyon, Redwood National Park and Haleakalā – will be displayed in incredible detail across 258 convex and concave commercial open-frame LG OLED panels.

New LG SIGNATURE products showcased at IFA include the LG SIGNATURE wine cellar, bottom-freezer refrigerator and dryer – demonstrating the potential of premium appliances in the global market. To highlight the wine cellar’s aesthetic appeal and technological features, LG SIGNATURE will be hosting wine tastings with renowned wine critic James Suckling during the show. Befitting the elegant design of these products, LG is expanding its IFA partnership with London-based art collective Jason Bruges Studio to create a new LG SIGNATURE premium gallery under the theme, One Fine Day.

Targeting the European built-in appliance market, LG also will be debuting the new Signature Kitchen Suite luxury brand of built-in kitchen appliances at IFA. A separate exhibition space dedicated to the Signature Kitchen Suite will be located in a prominent outdoor garden at the center of Messe Berlin. Developed through a collaboration with European luxury furniture designers Valcucine and Arclinea, the Signature Kitchen Suite for Europe will deliver products that build on the tradition of innovative performance and fine craftsmanship.

IFA 2018 will open with a visionary keynote address from LG Electronics Chief Executive Officer Jo Seong-jin with President and Chief Technology Officer Dr. I.P. Park. Their joint opening keynote – outlining the strategic direction for the new era of artificial intelligence – represents the first time that senior LG executives have taken on such a prominent role at IFA. Entitled Think Wise, Be Free: Living Freer with AI, the keynote will be delivered on Friday, Aug. 31 in Hall 26b of Messe Berlin. CEO Jo will provide his insights into how LG’s AI strategy will enhance customers’ lives based on LG ThinQ’s unique open platform, open partnership and open connectivity philosophy. Similarly, Dr. Park will show how this technology comes to life in everyday products and how LG’s open AI strategy benefits consumers through its focus on offering greater control and convenience.

LG’s IFA exhibition booth is located in Hall 18 of Messe Berlin, showcasing the company’s wide range of state-of-the-art technology designed to deliver Innovation for a Better Life.

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Joined by Premium Dryer and Bottom-Freezer Refrigerator
in LG SIGNATURE’s First Expansion Since 2016 Launch 

BERLIN, Aug. 27, 2018 — LG Electronics (LG) will unveil an expanded LG SIGNATURE ultra-premium product lineup at IFA 2018 in Berlin, highlighted by a new wine cellar, dryer and bottom-freezer refrigerator.

The concept, The Art of Essence, was the inspiration behind the philosophy of the LG SIGNATURE brand, which launched in 2016. LG SIGNATURE products were stripped of all features that detracted from the brand’s spirit, resulting in the streamlined look that exemplifies products of the finest quality that deliver a sense of exclusivity to its owners.

The exclusive LG SIGNATURE wine cellar is capable of storing 65 bottles within its sleek metal frame and features numerous innovative technologies such as Multi Temperature Control which creates the ideal storage conditions for different types of wine. The drawer refrigerator in the wine cellar with Automatic Lift allows for easy access to the wine inside with the press of a button. Use voice recognition to open the door or turn on the interior light to see what’s inside through the darkened glass, saving energy and avoiding unnecessary exposure to sunlight.

A high-end clothes dryer will be joining LG SIGNATURE for the first time this year. The 10kg dryer can detect the amount of laundry inside the drum and adjust setting to match, with no input from the user. A rapid drying feature is complemented by the advanced Condenser Automatic Cleansing System which uses streaming water to clear away lint build up, allowing the dryer to operate consistently at peak efficiency.

The new LG SIGNATURE bottom-freezer refrigerator boasts an array of advanced features including Automatic Lift to raise the drawer to eye level for easier access to the contents. The improved Auto Door Open feature senses when a person approaches and automatically opens the door twice as wide as before, a real convenience when one’s arms are full of groceries.

To highlight the wine cellar’s aesthetics and advanced technology, LG SIGNATURE partnered with James Suckling, a prominent figure in the international wine community whose reviews are widely read and respected. Mr. Suckling will host several wine tasting sessions for VIP guests at the LG SIGNATURE booth in Messe Berlin on August 30 and 31, highlighting the wine cellar’s ability to preserve or improve a wine’s flavor. French winery Lou Dumont will also be on hand to serve visitors a sampling of its best vintage.

“Combining beautiful design with the latest technologies while staying true to a product’s essence is what LG SIGNATURE is all about,” said Song Dae-hyun, president of LG’s Home Appliance & Air Solution Company. “Expanding our LG SIGNATURE collection to seven products allows even more consumers to experience the joy of owning a home appliance that resembles a work of art.”

Visitors to LG’s booth in Hall 18 during IFA will be able to see the latest additions to the LG SIGNATURE lineup for themselves.

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LG Labs to Drive Evolution of Advanced
AI Technologies Across Multiple Touchpoints  

SEOUL, Aug. 1, 2018 – Global innovator LG Electronics Inc. (LG) is poised to define the future of artificial intelligence (AI) for consumers and businesses in the years ahead with the establishment of a major new AI research presence in North America in collaboration with leaders in academia and start-ups.

This week marks the launch of the new LG Electronics AI Research Lab in Canada, an extension of the newly expanded LG Silicon Valley AI Lab in Santa Clara, California. Supporting LG’s vision of AI as a key future growth engine, the North American labs further enhance LG’s global research capabilities, which include AI labs in South Korea, India and Russia.

In addition, LG is entering into a new research partnership with the University of Toronto, which is recognized worldwide for its AI and machine learning expertise, particularly in the area of deep learning.

“AI will ultimately touch everybody’s lives, transforming the way we live, work and play,” said LG Electronics President and Chief Technology Officer Dr. I.P. Park. “Early implementations of AI in connected devices today are setting the stage for tomorrow’s smart cities, smart homes, smart businesses and smart devices, all with capabilities that no one has even dreamed of yet.” He said the North American labs and LG’s research partnership with the University of Toronto will play a key role in developing source technologies defining that future.

Under its five-year, multi-million-dollar research partnership with the University of Toronto, LG will build on its Open Platform-Open Partnership-Open Connectivity strategy to expand the AI ecosystem. The new lab will capitalize on the expertise of researchers at the University of Toronto who will now have the opportunity to work collaboratively with LG’s growing U.S. and Canadian AI R&D teams. Complementing this work, LG intends to collaborate with and invest in North American start-ups.

University of Toronto President Meric Gertler views LG as an exciting new partner for AI research. “The University of Toronto looks forward to partnering with an innovative global company like LG as our researchers continue to advance the boundaries of artifi-cial intelligence. The presence of such leading, multi-national firms in our innovation ecosystem strengthens opportunities for our faculty, students and start-up companies across a whole range of disciplines.”

Echoing President Gertler’s views, Dr. Park said, “AI solutions based on deep learning will revolutionize how we interact with the world around us, in new seamless ways that use contextual data from things like biometrics, emotions, gestures and of course voice.” He went on to explain the three main pillars of LG’s AI strategy:

“The first is the ability to evolve with time, so the more you use our products, the better they evolve to meet your specific needs. The second is the ability to integrate AI into diverse touchpoints – to have a seamless, consistent user experience across the entire LG product portfolio, from connected appliances and TVs to connected cars and smartphones. The third is openness; our strategy is to provide the best AI experience for LG customers, leveraging the complementary capabilities of leading partners across the ecosystem,” Dr. Park explained.

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First-Half Sets Multiple Records: Highest Global Revenues,
Highest Operating Profits and First Time Sales Exceed 30 Trillion Won

SEOUL, July 26, 2018 — LG Electronics Inc. (LG) reported consolidated global sales of KRW 15.02 trillion (USD 13.9 billion) and operating profits of KRW 771 billion (USD 715.1 million) for the second quarter of 2018. Second-quarter sales rose 3.2 percent while operating profits increased 16.1 percent from the same period last year. Strong profitability from home appliances and air solutions and premium home entertainment products offset second-quarter operating losses from vehicle components and mobile communications.

First-half 2018 sales and operating profits were at all-time record highs. Revenues increased 3.2 percent from the 2017 first half to KRW 30.14 trillion (USD 28 billion) and operating income rose 18.5 percent to KRW 1.88 trillion (USD 1.7 billion). In light of uncertainties surrounding market conditions, competition and the international trade landscape going forward, LG enters the second half with an intense focus on cost competitiveness and profitable growth. 

The LG Home Appliance & Air Solution Company posted strong second-quarter 2018 sales of KRW 5.26 trillion (USD 4.88 billion) and operating profits of KRW 457.2 billion (USD 424.04 million). Quarterly revenues grew 4.3 percent from last year, in part due to strong seasonal sales of air conditioners, and increased shipments of the LG Styler garment care system and air purifiers, especially in the domestic Korean market. Quarterly operating income increased 1.7 percent compared to the same period of 2017, driven by cost management and sales of premium clothes washers and refrigerators, offsetting the effects of higher raw material prices and unfavorable exchange rates. First half revenues for LG Home Appliances and Air Solutions were the highest in company history, exceeding 10 trillion (USD 9.47 billion) for the first time. 

The LG Home Entertainment Company reported second-quarter sales of KRW 3.82 trillion (USD 3.54 billion) and operating profit of KRW 407 billion (USD 377.48 million). Revenues increased 4.1 percent from the 2017 quarter due to healthy sales of LG OLED TVs, LG SUPER UHD TVs and other premium products. Operating income increased 44.1 percent from the second quarter last year, repeating Home Entertainment’s double-digit operating profit margin performance from the 2018 first quarter. In the second half, while the global TV market is expected to see weaker demand primarily due to the economic downturn in Latin America, the Middle East and Africa, the company plans to maintain its solid profit strategy by expanding sales of premium products and further enhancing cost competitiveness.

The LG Mobile Communications Company recorded sales of KRW 2.07 trillion (USD 1.92 billion) and an operating loss of KRW 185.4 billion (USD 171.95 million). Quarterly sales declined from last year due to the slowing growth of the global smartphone market and a decline in mid- to low-end smartphone sales in Latin America. The second-quarter operating loss was largely due to contracting sales and increased marketing investments to support new flagship smartphone launches. With competition in the premium smartphone category expected to intensify and growth to remain stagnant in the second half, the company will seek to further improve its business structure and increase sales of the new premium LG G7 ^ThinQ and LG V35 ^ThinQ flagship smartphones in key markets around the world.

The LG Vehicle Components Company posted sales of KRW 872.8 billion (USD 809.5 million) and an operating loss of KRW 32.5 billion (USD 30.14 million). Sales increased 3.9 percent from the second quarter last year as mass production on new projects commenced. The quarterly operating loss reflects increases in raw material prices such as memory and additional resource requirements for new projects. Uncertainties in the global auto industry and in U.S. trade policy will continue to challenge the business unit over the course of the year, although the expected growth of connected and electric vehicles is promising for LG Vehicle Components in the longer term.

The LG Business-to-Business Company reported sales in the second quarter of KRW 588.5 billion (USD 545.82 million) and operating profit of KRW 39 billion (USD 36.17 million). Revenues grew 10.7 percent from the second quarter last year, thanks to stronger sales of large-scale digital signage products and high-efficiency solar modules. Operating profit soared 73.3 percent from the 2017 period on increased sales of premium products and improved cost competitiveness. In the second half, demand for premium digital signage is expected to continue to increase, while the solar module business will likely face increased competition and market challenges due to the ever-changing international trade environment.

2018 2Q Exchange Rates Explained

LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2018. 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 1,078.20 per USD.

Earnings Conference and Conference Call

LG Electronics will hold an English language conference call on July 27, 2018 at 09:00 Korea Standard Time (12:00 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 July 26, 2018. 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 142910# when prompted.

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