Company Outlines Direction and “Break Through Limits” Management Policy
During Printing Priming in Las Vegas

LAS VEGAS, Jan. 10, 2024 — LG Electronics’ (LG) CEO William Cho and key visitor executives introduced the strategies LG is implementing to unzip its ‘Future Vision 2030’ goal, during a printing priming 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 merchantry and the consumer experience. The visitor aims to overcome challenges, such as persistent market and supply uniting uncertainties, and slide growth by towers 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 slide these changes,” said CEO Cho. “Future Vision 2030 is our promise to the market and to our customers, and we will strive as a visitor to unhook 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 consumer wits wideness 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 once established three focus areas for future growth – a non-hardware merchantry model, B2B expansion and the minutiae of new businesses – LG will now make an all-out effort to remoter refine its portfolio.

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

High-growth and high-profit cadre businesses will moreover see larger investment in 2024. These include B2B businesses, such as vehicle components, HVAC, seated appliances and digital signage, as well as the webOS platform business. LG will protract to invest in new businesses, such as electric vehicle (EV) charging and robotics, and has once spoken plans to invest increasingly than USD 40 billion* by 2030 to transform its portfolio for qualitative merchantry growth.

Furthermore, whence this year, LG will urgently seek inorganic growth opportunities, such as mergers, acquisitions and partnerships, in wing to raising strategies designed to invigorate its internal growth engines. Emphasis will moreover be placed on game-changing areas of technology that add consumer value, such as AI and mixed reality (MR).

The CEO identified the newly established Overseas Sales and Marketing Visitor as a valuable windfall for helping LG “break through limits.” Once playing an important role in LG’s global success, the new organization rumored for approximately two-thirds of the company’s total sales. The Overseas Sales and Marketing Visitor 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 merchantry and new businesses as its three, main growth engines, the visitor aims to reach its goal of ‘Triple Seven’: an stereotype 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 ripen in market demand, the visitor performed impressively thanks to the growth of its B2B business. Over the past five years, the recipe yearly growth rate of LG’s B2B businesses has hands exceeded double digits, with the stereotype yearly growth rate of overall sales reaching virtually eight percent.

The Vehicle component Solutions (VS) Visitor has likewise emerged as a key merchantry for LG, achieving yearly 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 cadre areas of expertise.

Based on the three pillars of in-vehicle infotainment (IVI), e-powertrains and vehicular lamps, the VS Visitor 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 visitor will invest in boosting production topics in Central America, South America and Europe.

The HVAC business, flipside important part of LG’s B2B portfolio, is growing quickly in emerging markets such as Asia and Central and South America, while in wide 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 merchantry aims to leverage the competitiveness of its technologically wide components, such as motors and compressors, to expand its product lineup. After establishing a consortium for wide heat pump research in Alaska, U.S.A., last November, LG plans to build an R&D wiring in Europe this year. The visitor moreover intends to broaden its merchantry with the introduction of differentiated air workout products, such as the Dedicated Outdoor Air System.

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

LG will moreover fast-track the incubation of its overall merchantry model, inward non-hardware areas, such as content, services and subscriptions, to complement its existing product-centric home utilization and TV companies. Leveraging the hundreds of millions of LG products once in use virtually the world as ‘platforms,’ the visitor expects to generate continuous sales and profits.

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

The Home Utilization and Air Solution (H&A) Company, whose success is playing a preeminent role in supporting LG’s organization-wide transformation, is moreover developing a smart home solution merchantry that combines services and subscriptions. The H&A Company’s ultimate goal is to unhook on its ‘Zero Labor Home, Makes Quality Time’ vision, which goes vastitude home appliances to make homelife smarter and increasingly user-friendly than ever.

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

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

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

Moreover, LG will secure growth opportunities offering upper potential and a upper stratum of merchantry synergy. As a prime example, the LG NOVA will increase its startup promotion fund to increasingly than USD 100 million by the end of 2024, enabling the visitor to help discover new technologies and solutions to momentum future innovation, and to lead new merchantry segments.

LG’s recently created EV charging merchantry is emerging as a comprehensive EV charging solutions provider, self-aggrandizing wide charging units and tenancy solutions, remote diagnosis and servicing capabilities, as well as vehicle shower diagnosis and robust manufacturing and sales infrastructure. Inward the North American market, the visitor has completed the construction of a charger production line in Fort Worth, Texas, U.S.A.

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

In addition, the company’s Chief Technology Office (CTO), which leads the minutiae of future technologies, is conducting intensive R&D programs to strengthen merchantry competitiveness and discover new cadre 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 remoter enhance its customer-centric management system.

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

LG’s DX efforts proffer vastitude the innovation of the consumer wits to the resurgence of value uniting efficiency; from purchasing and manufacturing to wordage and sales. Last year, by applying DX to each value chain, LG raised productivity and efficiency to the value of increasingly 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 rhadamanthine a high-performing organization. He stated that, “To succeed this, we need to intricately connect our mission, vision and goals, and have a relentless focus on execution.”

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

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

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* Exchange rate: KRW 1,250 per USD.