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LG Releases Preliminary Earnings for Third-Quarter 2023


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Second Highest Third-Quarter Revenues and Operating Profit
Driven by Home Appliances and Vehicle Solutions

A picture of LG Twin Towers at night

SEOUL, Oct. 10, 2023 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the third quarter of 2023.

LG reported consolidated revenues of KRW 20.7 trillion and operating profit of KRW 996.7 billion in the third quarter of 2023, both the second highest third-quarter figures in the company’s history.

Driven by home appliances, the company’s major business and vehicle solutions, its future growth engines, LG accelerated the qualitative growth of its business despite the economic slowdown and prolonged decline in demand. Operating profit increased more than 30 percent compared to the same period last year as well as the second quarter of 2023.

LG’s efforts to upgrade business portfolio to expand the proportion of its B2B businesses, including automotive parts and HVAC, based on its deep understanding and experience of customers accumulated through years in the consumer-facing business have also led to continued growth.

In addition to the rapidly growing B2B business, the company continuously boosted its B2C business by combining products with content and services and expanding high-demand lineups based on the competitiveness of premium products such as LG OLED TVs and LG Objet Collection.

In July, LG CEO William Cho announced his future vision to create customer value, secure future growth opportunities and transform into a smart life solution company that connects and expand spaces and experiences beyond home appliances. The positive results of the third-quarter despite the economic depression and maintaining growth momentum is evidence that the portfolio transformation to achieve the company’s future vision is progressing smoothly.

LG also made continuous efforts to improve business structure and apply digital transformation across the company to innovate customer experiences, which have led to the maximizing of efficiency of the entire value chain, including purchasing, manufacturing, logistics and sales.

The LG Home Appliance & Air Solution Company has seen significant growth in the B2B area with its HVAC solutions. The company aims to further expand its air conditioning business with heat pumps and ESS in response to the growing demand for eco-friendly and high-efficiency products in North America and Europe. And, launched in the third-quarter, LG ThinQ UP 2.0 – a smart home innovation that combines home appliances and subscription services – has already received positive responses from customers and is leading change in the home appliance paradigm.

The LG Vehicle component Solutions Company continued its rapid growth trend in the third-quarter based on an order backlog expected to reach KRW 100 trillion by the end of the year and stable supply chain management, with the pace of growth also accelerating. In terms of profitability, there is also an economic effect of scale due to the expansion of sales. The company is expected to exceed KRW 10 trillion in annual sales for the first time this year. LG is also speeding up the establishment of regional production bases in response to the growing demand to convert to electric vehicles from major global customers.

The LG Home Entertainment Company is accelerating its business transition from a product-based business to a media and entertainment platform as the content and service business continues to grow. To this end, in addition to expanding collaboration with various content providers, the company has recently started upgrading TV operating systems for the first time in the industry to expand the content experience of customers. The number of TVs powered by webOS, the foundation of the content and service business, is expected to reach 300 million units by 2026.

The LG Business Solutions Company continues to innovate customer experience with premium IT lineups such as commercial displays and foldable laptops that provide customized solutions, while also rapidly fostering the electric vehicle charging business, one of LG’s new growth engines.

These figures are tentative consolidated earnings based on K-IFRS provided as a service to investors prior to LG Electronics’ final earnings results, including net profit. Details regarding each division will be announced officially later this month.

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