16 ELECTRONICS 26 CHEMICALS. LG CORP. Holding Structure (2016) TELECOM 29 & SERVICES. Exchange Rate : KRW 1,155. Camera Module.

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2 LG CORP. Holding Structure (2016) 16 ELECTRONICS 26 CHEMICALS TELECOM 29 & SERVICES Global No.1 Domestic No.1 Global No.1 Global No.1 Global No.1 Global No.1 Global No.1 Domestic No.1 World s 1st Domestic No.1 Energy Solutions OLED TV Air Conditioner Large LCD Panels Camera Module Battery for EV Battery for ESS ABS Plastics Cosmetics/ Household Goods LTE Network Home IoT Eco-friendly LG Electronics LG Display LG Innotek LG Chem LG Household & Health Care LG U + LG CNS Exchange Rate : KRW 1,155

3 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 Launches Vehicle Components Company Introduces world s first 4K OLED TV and webos smart TV Introduces new LG SIGNATURE product lineup

4 LG Quality Philosophy The quality philosophy of LG s founder has been the foundation for raising the consciousness of LG Electronics employees. LG Group Founder (1907~1969) 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?

5 CEO Message LG 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 internalize and settle the Winning Spirit to become No. 1 and Smart Working Culture. We will manage our businesses taking Quality and Safety, which are the most basic and important promises with our customers May 2017 Vice Chairman and CEO Jo Seong-jin

6 Management Philosophy V I S I O N CUSTOMERS EMPLOYEES Jeong-Do Management Customer-Value Creation People-Oriented Management No. 1 LG INVESTORS COMPETITORS Management Principles Behavioral Mode Three Core Elements of Jeong-Do Management Customer-Value Creation People-Oriented Management

7 Structure H&A COMPANY MC COMPANY HE COMPANY VC COMPANY B2B OFFICE ENERGY BUSINESS CENTER Home Appliance & Air Solution Mobile Communications Home Entertainment Vehicle Components Sales & Production Unit Korea Sales & Marketing Company Global Marketing Office Global Production Office Corporate Staff Chief Financial Office Chief Technology Office Materials & Production Engineering Research Institute Corporate Business Strategy Office Chief Human Resources Office Business Support Office

8 Global Network (As of December 31, 2016)

9 Global Sales LGE Consolidated Basis, IFRS Unit : USD Billion Exchange Rate : KRW 1,155 (2016) 2016 U$ Billion U$ 1.15 Billion SALES OPERATING INCOME

10 This Year s Highlights Premium Brand Launch

11 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 Product Newness Progressive Brand Tonality Beauty People Life s Good Sincerity Refined Shop Identity CS Essence Ease of Use Engaging Brand Activity Brand Theme

12 Business Overview Home Appliance & Air Solution Home Entertainment U$ 14.9billion U$ 15.0 billion TOTAL USD billion U$ 10.1billion U$ 2.4billion U$ 5.4billion Mobile Communications 11.2% Others Vehicle Components

13 LG Product Highlights Audio Video Navigation Motor & Battery Pack

14 LG Technology Highlights

15 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

16 LG Technology Highlights

17 LG Technology Highlights

18 LG Technology Highlights

19 LG Technology Highlights 1 Nanometer

20 LG Technology Highlights Color Consistency

21 LG Technology Highlights 18:9

22 LG Technology Highlights 18:9

23 LG Technology Highlights Brighter, more dynamic, more accurate colors Conventional Captured Image Subject

24 LG Technology Highlights Brighter, more dynamic, more accurate colors

25 LG Technology Highlights A leading provider of core components for global car manufacturers, LG is supporting the emerging trend of autonomous driving. AV Navigation Display Audio Center Information Display Rear Seat Entertainment Advanced Driver Assistant System Around View Monitoring Power Train Battery Pack LCD Cluster Head-Up Display Telematics Wireless Charger Rear Lamp E-compressor

26 Green Management Strategic Direction Reduce Resource Consumption Reduce product volume and weight Use recycled materials Replace hazardous Substances Reduce the use of heavy metals Reduce the use of hazardous chemical substances Increase Recyclability Increase the use of recyclable materials Design for easy disassembly GREEN PRODUCT Improve Home Environment Minimize product noise and vibration Minimize negative environmental impacts in living environment Enhance Energy Efficiency Reduce power consumption Reduce standby power Reduce CO 2 Emissions Use renewable energy Reduce CO 2 emissions throughout the product life cycle

27 Global Social Contribution Cooperating toward a better life for all Working together to achieve Sustainable Development Goals(SDGs) Vocational Training Social Enterprise Support Global Blood Donation Week Global IT Challenge Life s Good with LG Health Bus Employee Volunteer Program

28 Global Social Contribution RUSSIA USA Brazil KENYA IRAN INDIA CHINA KOREA Limb Operation LG Gold Kids Republic Day Campaign No Kid Hungry Smile Contest LG Hope School Global Water Day Campaign H&A Company Dream Soccer Class

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