TELECOM& SERVICES2926 CHEMICALS16 ELECTRONICS

LG CORP. Holding Structure (2016)

Exchange Rate : KRW 1,155

Batteryfor EV

Batteryfor ESS

ABSPlastics

Cosmetics/Household Goods

Global No.1 Global No.1 Global No.1 Domestic No.1

LG Chem LG Household& Health Care

LTE Network Home IoT Eco-friendly

World’s 1st Domestic No.1 Energy Solutions

LG U+ LG CNS

OLED TVLarge LCD

Panels

CameraModule

AirConditioner

Global No.1 Global No.1 Global No.1Domestic No.1

LG Electronics LG Display LG Innotek

HISTORY Pioneering Technology and Innovation

Lak Hui Chemical Industrial Corp. establishes GoldStar

Produces Korea's first TV

Establishes first overseas production base in the US

Rebrands as LG Electronics

Unveils the first G series smartphone, Optimus G

Becomes the second-largest LCD TV brand worldwide

Introduces the world’s first refrigerator powered by an Inverter Linear Compressor

Introduces world’sfirst 4K OLED TV and webOS smart TV

Introduces new LG SIGNATUREproduct lineup

Launches Vehicle Components Company

LG Quality PhilosophyThe quality philosophy of LG’s founder has been the foundation for raising the consciousness ofLG Electronics employees.

If one out of 100 is found to be defective, then we must assume there are defects in the other 99.

Just selling many products is not in our best interest if that one product is not the right product.

Shouldn’t we already know that our customers’ trust is more valuable than profits?

LG Group Founder

(1907~1969)

LG Group Founder

CEO MessageLG Electronics aims to become “No. 1 company that customers truly desire, unfaltering in spite of whatever crisis it is faced with, and will endeavor to implement sustainability management more systematically in all its management activities.”

We will take “Profitable Growth”as an important pillar of our business.

We will manage our businesses taking “Quality” and “Safety,” which are themost basic and important promises with our customers

We will internalize and settlethe “Winning Spirit to become No. 1”and ‘Smart Working Culture.’

May 2017Vice Chairman and CEO

Jo Seong-jin

Management Principles Behavioral Mode

Management Philosophy

V I S I O N

“Customer-Value Creation”

“People-Oriented Management”

“No. 1 LG”

Customer-ValueCreation

People-OrientedManagement

“Jeong-Do Management”INVESTORS

COMPETITORS

CUSTOMERS

EMPLOYEES

Three Core Elements of Jeong-Do Management

Structure

Home Appliance & Air Solution

MobileCommunications

HomeEntertainment

VehicleComponents

• Korea Sales & Marketing Company

• Global Marketing Office

• Global Production Office

• Chief Financial Office

• Chief Technology Office

• Materials & ProductionEngineering Research Institute

• Corporate Business Strategy Office

• Chief Human Resources Office

• Business Support Office

MCCOMPANY

ENERGYBUSINESSCENTER

B2BOFFICE

VCCOMPANY

H&ACOMPANY

HECOMPANY

Corporate StaffSales & Production Unit

Global Network(As of December 31, 2016)

Global Sales

U$

47.92Billion

2016

U$

1.15 Billion

SALES

OPERATING INCOME

LGE Consolidated Basis, IFRS

Unit : USD Billion

Exchange Rate : KRW 1,155 (2016)

This Year’s Highlights

Premium Brand Launch

Brand Management

LG’s Brand Intent encompasses six brand values that are continuously reinforced based on LG’s corporate philosophy of staying faithful to people, sincerity and the essence.

LGness

Newness Progressive

Beauty

Ease of Use Engaging

Refined

Essence

People Sincerity

Life’s Good

ShopIdentity

CS

Product

BrandTheme

BrandTonality

BrandActivity

Mobile Communications Vehicle Components

Home EntertainmentHome Appliance & Air Solution

Business Overview

U$ 15.0 billionU$ 14.9 billion

U$ 2.4 billionU$ 10.1 billion

TOTAL

USD 47.92billion

U$ 5.4 billion

11.2%

Others

LG Product Highlights

Audio Video Navigation Motor & Battery Pack

LG Technology Highlights

LG Technology Highlights

By leveraging powerful analytical processing power, LG’s robotic lineup will be able to navigate complex environments and decipher the most efficient and effective path to accomplish tasks, making people’s lives easier at every touch-point.

Hub Robot Airport Guide Robot Airport Cleaning Robot Lawn Mowing Robot

LG Technology Highlights

LG Technology Highlights

LG Technology Highlights

LG Technology Highlights

1 Nanometer

LG Technology Highlights

Color Consistency

18:9

LG Technology Highlights

18:9

LG Technology Highlights

Brighter, more dynamic, more accurate colors

Conventional

Captured Image Subject

LG Technology Highlights

LG Technology Highlights

Brighter, more dynamic, more accurate colors

LG Technology Highlights

A leading provider of core components for global car manufacturers,LG is supporting the emerging trend of autonomous driving.

Rear Lamp E-compressor

CenterInformation

Display

LCDCluster

Around ViewMonitoring

WirelessCharger

Head-UpDisplay

AdvancedDriver Assistant

System

Telematics

AV NavigationDisplay Audio

Rear SeatEntertainment

BatteryPack

PowerTrain

Green Management Strategic Direction

Replace hazardousSubstances• Reduce the use of heavy metals

• Reduce the use of hazardouschemical substances

Improve HomeEnvironment•Minimize product noise and

vibration

•Minimize negative environmental impacts in living environment

Reduce CO2Emissions

• Use renewable energy

• Reduce CO2 emissionsthroughout the product life cycle

Enhance EnergyEfficiency

• Reduce power consumption

• Reduce standby power

IncreaseRecyclability• Increase the use of

recyclable materials

• Design for easy disassembly

Reduce ResourceConsumption• Reduce product volume and

weight

• Use recycled materials

GREENPRODUCT

Global Social Contribution

Life’s Good with LG Health Bus

Vocational Training Social Enterprise Support Global Blood Donation Week

Employee Volunteer ProgramGlobal IT Challenge

Cooperating toward a better life for all

Working together to achieve Sustainable Development Goals(SDGs)

Global Social Contribution

Limb Operation LG Gold Kids Republic Day Campaign No Kid Hungry

USA

KENYAINDIA

IRANCHINA

KOREA

RUSSIA

H&A CompanyDream Soccer Class

Smile Contest LG Hope School Global Water Day Campaign

Brazil