SEOUL, Jan. 25, 2016 /KOREA IT TIMES — LG Electronics Inc. (LG) today announced a 2016 operating
profit of KRW 1.34 trillion (USD 1.16 billion), 12.2 percent increase from 2015 due in large part to strong performance by home appliances, air solutions and home entertainment.
For full-year 2016, LG reported revenues of KRW 55.37 trillion (USD 47.92 billion)
and net income of KRW 126.3 billion (USD 109.31 million).
Fourth-quarter 2016 sales of KRW 14.78 trillion (USD 12.79 billion) were 11.7 percent
higher than the previous quarter and 1.5 percent higher than the fourth quarter the previous
year. Both the LG Home Appliance & Air Solutions Company and LG Home Entertainment
Company posted their strongest operating profit ever in 2016. However, due to
losses from mobile communications and vehicle components, LG reported a fourthquarter
net loss of KRW 258.80 billion (USD 223.98 million).
LG Home Appliance & Air Solutions Company reported revenues of KRW 17.23 trillion
(USD 14.92 billion) for full-year 2016 and KRW 4.04 trillion (USD 3.50 billion) in the
fourth quarter. This was an increase of 5.6 percent year-over-year, driven in large part by
strong sales in the Korean and North American markets where products such as TWINWash
washing machines and Door-in-Door refrigerators continued to be popular. Operating
income of KRW 1.33 trillion (USD 1.15 billion) in 2016 increased 36 percent over
2015 and was the highest among all LG companies.
LG Home Entertainment Company posted fourth-quarter revenues of KRW 4.79 trillion
(USD 4.15 billion), an increase of 15.7 percent quarter-over-quarter as a result of strong
sales of premium LG OLED and 4K Ultra HD TVs in North America, Europe and Asia.
Full-year operating profit of KRW 1.24 trillion (USD 1.07 billion) was the highest in the
www.LG.com
2 history of the Home Entertainment Company and 2016 revenues of KRW 17.43 trillion
(USD 15.08 billion) were the highest among all LG business units. The award-winning
LG SIGNATURE OLED TV W7 series and broadened line-up of LG OLED TVs unveiled
at CES®
2017 are expected to strengthen LG’s industry leadership in the premium
TV segment, as other companies introduce OLED TV products later this year.
LG Mobile Communications Company reported revenues KRW 2.90 trillion (USD 2.51
billion) in the fourth quarter of 2016, an increase of 15.4 percent quarter-over-quarter
due in large part to strong sales of the new V20 flagship smartphone. Profitability was
hampered by weak sales of the G5 smartphone and higher marketing investments. Introductions
of the next G Series phone and mass-tier devices in the second quarter following
Mobile World Congress are expected to help greatly improve the LG Mobile Communications
Company’s market position in 2017.
LG Vehicle Components Company ended the year with a solid KRW 2.77 trillion (USD
2.40 billion) in sales, an increase of 51 percent from the previous year. Fourth-quarter
revenue of KRW 865.7 billion (USD 749.2 million) was 66.4 percent higher year-overyear,
mostly due to strong growth in electric vehicle components and infotainment systems.
Sales grew steadily in each quarter of 2016 but R&D investments negatively affected
profitability. With production of the Chevrolet Bolt electric vehicle, co-developed
with LG, under way and with demand growing for integrated electronics related to automotive
infotainment and safety systems, the LG Vehicle Components Company expects
to further strengthen its product competitiveness in 2017.
2016 4Q Exchange Rates Explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International
Financial Reporting Standards) for the three-month period ending December 31, 2016.
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 1,155.47 per USD.
www.LG.com
3 Earnings Conference and Conference Call
LG Electronics will hold an English language conference call on January 26, 2017 at
09:00 Korea Standard Time (00:00 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 January
25, 2017. 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 142830# when prompted.
About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile
communications and home appliances, employing 77,000 people working in 125 locations around the world. With
2016 global sales of USD 47.9 billion (KRW 55.4 trillion), LG comprises four business units ― Home Appliance &
Air Solutions, Mobile Communications, Home Entertainment and Vehicle Components ― and is one of the world’s
leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators. LG Electronics
is a 2016 ENERGY STAR Partner of the Year. For more news and information on LG Electronics, please visit
www.LGnewsroom.com.
Media Contacts:
LG Electronics, Inc. LG Electronics, Inc.
Ken Hong Juah Kim
+822 3777 3626 +822 3777 3981
ken.hong@lge.com juah.kim@lge.com
www.LGnewsroom.com www.LGnewsroom.com
— LG Electronics Inc. (LG) today announced a 2016 operating
profit of KRW 1.34 trillion (USD 1.16 billion), 12.2 percent increase from 2015 due in
large part to strong performance by home appliances, air solutions and home entertainment.
For full-year 2016, LG reported revenues of KRW 55.37 trillion (USD 47.92 billion)
and net income of KRW 126.3 billion (USD 109.31 million).
Fourth-quarter 2016 sales of KRW 14.78 trillion (USD 12.79 billion) were 11.7 percent
higher than the previous quarter and 1.5 percent higher than the fourth quarter the previous
year. Both the LG Home Appliance & Air Solutions Company and LG Home Entertainment
Company posted their strongest operating profit ever in 2016. However, due to
losses from mobile communications and vehicle components, LG reported a fourthquarter
net loss of KRW 258.80 billion (USD 223.98 million).
LG Home Appliance & Air Solutions Company reported revenues of KRW 17.23 trillion
(USD 14.92 billion) for full-year 2016 and KRW 4.04 trillion (USD 3.50 billion) in the
fourth quarter. This was an increase of 5.6 percent year-over-year, driven in large part by
strong sales in the Korean and North American markets where products such as TWINWash
washing machines and Door-in-Door refrigerators continued to be popular. Operating
income of KRW 1.33 trillion (USD 1.15 billion) in 2016 increased 36 percent over
2015 and was the highest among all LG companies.
LG Home Entertainment Company posted fourth-quarter revenues of KRW 4.79 trillion
(USD 4.15 billion), an increase of 15.7 percent quarter-over-quarter as a result of strong
sales of premium LG OLED and 4K Ultra HD TVs in North America, Europe and Asia.
Full-year operating profit of KRW 1.24 trillion (USD 1.07 billion) was the highest in the
www.LG.com
2 history of the Home Entertainment Company and 2016 revenues of KRW 17.43 trillion
(USD 15.08 billion) were the highest among all LG business units. The award-winning
LG SIGNATURE OLED TV W7 series and broadened line-up of LG OLED TVs unveiled
at CES®
2017 are expected to strengthen LG’s industry leadership in the premium
TV segment, as other companies introduce OLED TV products later this year.
LG Mobile Communications Company reported revenues KRW 2.90 trillion (USD 2.51
billion) in the fourth quarter of 2016, an increase of 15.4 percent quarter-over-quarter
due in large part to strong sales of the new V20 flagship smartphone. Profitability was
hampered by weak sales of the G5 smartphone and higher marketing investments. Introductions
of the next G Series phone and mass-tier devices in the second quarter following
Mobile World Congress are expected to help greatly improve the LG Mobile Communications
Company’s market position in 2017.
LG Vehicle Components Company ended the year with a solid KRW 2.77 trillion (USD
2.40 billion) in sales, an increase of 51 percent from the previous year. Fourth-quarter
revenue of KRW 865.7 billion (USD 749.2 million) was 66.4 percent higher year-overyear,
mostly due to strong growth in electric vehicle components and infotainment systems.
Sales grew steadily in each quarter of 2016 but R&D investments negatively affected
profitability. With production of the Chevrolet Bolt electric vehicle, co-developed
with LG, under way and with demand growing for integrated electronics related to automotive
infotainment and safety systems, the LG Vehicle Components Company expects
to further strengthen its product competitiveness in 2017.
2016 4Q Exchange Rates Explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International
Financial Reporting Standards) for the three-month period ending December 31, 2016.
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 1,155.47 per USD.
www.LG.com
3 Earnings Conference and Conference Call
LG Electronics will hold an English language conference call on January 26, 2017 at
09:00 Korea Standard Time (00:00 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 January
25, 2017. 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 142830# when prompted.
About LG Electronics, Inc.
LG Electronics, Inc. (KSE: 066570.KS) is a global leader and technology innovator in consumer electronics, mobile
communications and home appliances, employing 77,000 people working in 125 locations around the world. With
2016 global sales of USD 47.9 billion (KRW 55.4 trillion), LG comprises four business units ― Home Appliance &
Air Solutions, Mobile Communications, Home Entertainment and Vehicle Components ― and is one of the world’s
leading producers of flat panel TVs, mobile devices, air conditioners, washing machines and refrigerators. LG Electronics
is a 2016 ENERGY STAR Partner of the Year. For more news and information on LG Electronics, please visit
www.LGnewsroom.com.
Media Contacts:
LG Electronics, Inc. LG Electronics, Inc.
Ken Hong Juah Kim
+822 3777 3626 +822 3777 3981
ken.hong@lge.com juah.kim@lge.com
www.LGnewsroom.com www.LGnewsroom.com
