LG Electronics 2012 _wish

USERS GUIDE

What is your

wish?

Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.

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LG Electronics 2012 _wish

Our lawyers wish to include the following: All LG Electronics products and services mentioned in this publication are the property of LG Electronics.

02 12 22 48 52 62 66 76

My wish LGs wish 14 Message from the CEO 18 Four Pilars of Core Strategy My wish + LGs wish 24 Home Entertainment Company 30 Mobile Communications Company 36 Home Appliance Company 42 Air Conditioning & Energy Solution Company Wish + New Business 48 Solar Energy 50 Water Treatment We wish 54 Environment 56 Global Social Contributions 58 Sports Sponsorships 60 Marketing Campaign & Activity Leading the world in Innovation 64 Awards Fact & Figures Financial Statements

This is a book about wishing. And how one company has been listening to the wishes of people like you.

Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.

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LG Electronics 2012 _wish

It is a story about how your wishes become the inspiration for our engineers and designers.

And how that inspiration is the very first step in the process of innovation across all of our divisions.

Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.

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LG Electronics 2012 _wish

As you look through the pages of this book, remember that every product you see began with a wish.

So, from everyone at LG, thank you for your inspiration. And please, never ever stop wishing.

Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader.

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LG is in the wish business. First, we listen to what people dream about the most. Then, we deliver. What do you wish for? Read on. And discover that wishes really do come true.

My
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wish

More natural color and sound that let me feel the power all around mean endless stream of entertainmentdetail, detail, detail

Smarter life with technology that makes my life more passionate, creative and inspiringthe latest and extreme mobile experience with the fastest speed of connectivity.

Convenience and intelligence to fit busy moms like mestyle to make me proud in front of my neighbors

Cool but soft air that keeps me always feeling fresh and wont wake me up at night and worry-free maintenance with ultimate efficiency

LG wishes sustainable growth for our company, our employees and our partners, and a sustainable future for our planet. We wish that our Innovation continues to deliver on peoples needs. And brings new levels of ease, convenience and enjoyment to families around the world.

LGs wish
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MESSAGE FROM THE CEO

Throughout the past year, I have been privileged to meet many of you around the globe, and I would first like to express my most sincere thanks to each one of you. Hearing your thoughts and ideas firsthand has been a key goal of mine since Ive come on board, and I am confident that we will continue to have many chances to greet and speak with one another in person in the near future. And it is with great pleasure that I can say, the more conversations I was able to engage in with friends and colleagues around the world, the more I felt the surge of optimism for greater things yet to come. As we face the future unfolding before us, it is imperative that we continue to communicate through such tight connections. It is the surest possible way for us to sense the changes that may surface, as well as the interesting opportunities that will surely arise for us to evaluate and attain. In todays industry, where even the strongest of all can rise and fall overnight, I once again would like to declare our dedicated and forward-thinking commitment to improving the lives of our consumers, business partners, and all of the readers I am communicating with today. By dedicating ourselves to values such as innovation and product leadership, we will prevail through the challenges of our economic climate and the aggressiveness of our competitors. With that said, I continue to urge all of our employees: Put progressive thinking first, prepare for the future in advance, and create a culture where we do things the right way.
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Innovation continues

 I am excited to share with you that many of our products have truly captured the hearts and minds of people around the world

There are five essential pillars upon which we will build that future:

Product Leadership
The foundation of a manufacturing company lies in its products. In our industry, that means offering truly differentiated products that make consumers take notice and say, This is It! But this is only accomplished when everyone onboardfrom R&D and design through quality and marketingexecute with that consumers needs in mind. I am excited to share with you that many of our products, from 3D Cinema TV and LTE phones to the worlds largest capacity refrigerators and washing machines, have truly captured the hearts and minds of people around the world. And 2012 promises to deliver even more on the wishes of consumers.

Preparation for the Future

To back up our word in product leadership and constantly developing consumer values, our R&D ensures that we target to be the first mover in the market with new ideas and products. To make certain that there would not be an under-supported area, we will be expanding our investment in R&D with continuous efforts in securing the brightest and the most innovative minds in the industry. Innovative ideas are our most valuable currency for the future.

Strong Fundamentals
The more the world changes, the more imperative it becomes that we stay true to the fundamentals. We will strictly observe the processes that enable us to enhance both productivity and profitability. We will adhere to Jeong-do Management by keeping our promises to all stakeholders, and pursuing victory in a fairly contested business practices. It is only through these strong fundamentals that we will continue to grow steadily in all economic and business environments, whether that may be positive opportunities or unexpected challenges.

2012 Motto
Put progressive thinking first, prepare for the future in advance, and create a culture where we do things the right way. Once again, thank you for all of your thoughts and valuable input through the past year. I hope that this can help add to your generous efforts in caring and moving forward with us as friends, colleagues, business partners, and shareholders of LG Electronics. Thank you, Bon-Joon Koo Vice Chairman & CEO of LG Electronics January 2012

Superior Value
What will keep customers turning to us first? The more we can conceive and execute customized market strategies, the more we will maintain a truly differentiated value proposition that sets us apart from our competitors. By focusing on the value we offer more than the volume we derive, we will maintain the long-term trust of customers in every kind of market, and our goal of sustainable growth will be much easier to attain.

No. 1 Passion, No. 1 Culture

Passion I believe, is expressed through ones actions to achieve what he or she believes in, and aims to attain. This is not limited to our leaders or the managers that are out-in-the-field, but it pertains to all. I pride myself in being a member of such a company that promotes Passion as its No 1 virtue, and where this value cultivates creative culture, ultimately leading its people to business success and more.

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Product Leadership
LG is committed to being first in the market with solutions that meet real consumer needs today, and tomorrow. We will accomplish this in two ways: through innovation that assures our products have an unequivocal competitive advantage in every category where we compete, and by introducing products so unique in their application they create an entirely new market. There simply is no substitute for innovation.
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Strong Fundamentals
There is nothing more fundamental to consumer trust than quality. LGs Founding Chairman once said: Even if there is just one defective product out of 100, the other 99 are likewise defective. Through a strict observation of our principles, predictable management, and adherence to the true nature of our industry, we will continue to prizeand deliverquality above all.

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Preparation for the Future

Lead, not follow. Not only in the products we create, but in the way we nurture and challenge our future engineers, designers and corporate leaders. We must have the vision today to trust in their vision for tomorrow. And to give them the freedom now to explore new avenues of innovation that will keep LG on the forefront for generations, and will keep our planet a greener place for us all.

No.1 Passion, No.1 Culture

LG guarantees an ethical workplace that is second to none. Our people are our company. They dont just make worldleading productsthey make LG the best corporation in the world. And we owe every one of them a culture of openness and fairness; where competition lives alongside collaboration; and where accomplishment is recognized, applauded and rewarded.

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wish wish
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My LGs

Innovation that astounds us. Style that inspires us. And technology that is beneficial to our homes, our familiesand our environment. It turns out that were both wishing for the very same things! Read on.

HOME ENTERTAINMENT COMPANY

Mesmerizing. Its LG.

Our engineers set out not just to grant your entertainment wishesbut to surpass them! With a lineup of fully-immersive products that guarantee an eyepopping reaction the first time you turn them on. And that will keep you amazed for years to come.

OLED TV (EM9600) 24 25

CINEMA 3D Smart TV (LM9600) Step into the future of fully-immersive entertainment. By slimming down the bezels to negligible levels, CINEMA SCREEN Design makes you completely immersed in image and makes the TV perfectly blend into the wall. The advanced Smart TV ecosystem with the Magic Remote* offers unlimited content and intuitive control over your Smart TV. See how the smartest one can be the most beautiful one as well.
Remote: The new remote control that works through  * Magic Point and Click. It has additional functions including voice


recognition and wheel. CES 2012 Innovations Awards and red dot Design Award

Wow.
OLED* TV (EM9600) Get ready for THE ULTIMATE DISPLAY with the worlds most natural picture quality and advanced design. 4 Color Pixel combined with Color Refiner generates more photorealistic colors than ever before. It also boasts infinite contrast with perfect black and absolute motion clarity with a blur-free picture. The Paper Slim design is only 4 mm thick to blend in with any wall. Naturally.  LED: Organic Light Emitting Diodes *O Pentouch TV (PM6900) Smart TV just got smarter. Business, entertainment, education LGs Pentouch Plus function gives you all the interactive possibilities of ordinary Smart TV, but without the need for a PC connection. Write, draw and color right on the screen with the Magic Pen. Access almost unlimited content including Netflix, Hulu Plus and the brand new 3D World. LG Pentouch TV, a very smart way to watch!
r ed dot Design Award


Wish for

IPS Monitors (IPS7W, TM92, D43) See 3D from a whole new angle. The high resolution and wider viewing angles of LG IPS* Monitors let everyone enjoy the 3D experience from almost anywhere in the room. The IPS7W series offers amazingly life-like 3D images. The TM92 series features LGs unique slim bezel CINEMA SCREEN design. And by bringing 3D to an IPS Panel, the D43 offers the most comfortable 3D viewing with greater 3D effects. With SUPER+ Resolution*. More features. Wider angles. Wow!  In-Plane Switching. An LCD technology that offers wide viewing angle * IPS: Resolution: A technology that sharpens up blurry edges and enhances  * SUPER+ dim colors to make image more vivid and realistic 26 27

Home Theater System (BH9520TW) Go beyond sight and sound with 3D you can actually feel. 3D Sound Zooming instantly syncs sound with the location and motion of images on a CINEMA 3D Smart TV, so you can sense the action literally all around you. A 9.1 speaker system includes four Upright 3D speakers that shoot sound upward, filling every inch of space with hairraising, heart-pounding sound.

Bigger. Louder. Faster. The world of entertainment is more spectacular than ever. And LG Home Entertainment Company brings that experience into consumers homes the way it was meant to be. With more natural color. More immersive 3D. More all-around

Ultrabook (Z330) Its easy to get carried away with technology this convenient. The LG SUPER Ultrabook features award-winning Super Compact Clutch design in a laptop barely 14.7mm all around, and weighing a mere 1.2 kg. Plus Super Speed Boot technology has you up and running in a blazingly fast 9.9 seconds, four times fast than other laptops. Ultra-slim. Ultra-fast. Ultra-cool.

sound. And more on-the-go portability. LG offers a wide array of innovative and stylish productsfrom OLED and LCD TVs to home theater systems, projectors and so much more. No wonder LG is the industry trendsetter for innovative home

Smart Upgrader (SP820) Turn your ordinary TV into something extraordinary! Simply attach the LG Smart Upgrader and begin to experience the future of home entertainment right now on your current TV. Choose from over 1,200 fun, informative and entertaining apps, an amazing selection of premium content, plus full web browsing and file sharing capabilities. Now thats one smart upgrade!

entertainment. Bravo!

Projector (CF3D) Another LG innovationand another advancement in picture perfect reproduction. The versatile CF3D is the worlds first Full HD Single Lens Type 3D projector. That translates into breathtaking brightness levels of 2,500 ANSI-lumens* and a super sharp contrast of 7,000:1. Plus TruMotion that combines Dual Engine and 3D Auto Calibration technology for incredibly smooth and natural motion.
A measurement of light that has been standardized by ANSI (American  * ANSI-lumens: National Standards Institute). It is commonly used to rate the brightness of a data projector.

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MOBILE COMMUNICATIONS COMPANY

Blazing. Its LG.

LGs latest range of smartphones puts full control of todays lifestyle at your fingertips. Groundbreaking technology, stylish design, and a full slate of features keeps you connected on the go like never before.

LG Optimus True HD LTE 30 31

LG Optimus 4X HD The LG Optimus 4X HD proudly reinforces LGs multi-core leadership with a powerful Quad-core processor. The Quad-core processor guarantees blazing lag-free speed even when handling processor-heavy tasks such as multiplayer gaming. The distortion-free 4.7 True HD display is powered by NVIDIAs latest Tegra3 1.5 GHz processor and 5th Battery Core, all packed inside a super sleek shape that lets you enjoy HD multimedia anywhere, anytime.

Whoa.
LG Optimus Vu The LG Optimus Vu brings productivity to whole new levels. Equipped with LGs LTE and 5-inch 4:3 aspect ratio IPS display technology, it offers faster and more efficient tools to manage daily life. Running on a powerful 1.5 GHz dual-core processor, the LG Optimus Vu makes viewing documents, books, Internet sites and multimedia content much more comfortable while every color is rendered in sharp, vivid, life-like quality. LG Optimus True HD LTE* The LG Optimus True HD LTE, the worlds first HD LTE smartphone, delivers a stunning viewing experience. With a magnificent 4.5 Full HD Touch Screen, the phone boasts a super-high resolution display and colors that are astonishingly bright and vivid. The powerful 1.5 GHz dual-core processor and seamless LTE connectivity also make this phone impressively quick.  TE: Long Term Evolution. It is a standard for wireless communication of high-speed data for *L mobile phones and succeed 3G WCDMA/HSDPA/HSUPA (and also CDMA) technology. 32 33 LG Optimus 3D Max The LG Optimus 3D Max is the latest incarnation of LGs ongoing effort to provide superior portable 3D entertainment. It belts out amazingly vivid 3D images without the need for 3D glasses on a 4.3-inch NOVA display with improved 520 nit brightness. Thanks to LGs prowess in 3D technology, the LG Optimus 3D Max not only handles standard 3D content beautifully, it also offers 2D-to3D conversion with LGs unique HRZ Engine.

Wish for

LG Optimus L7 One of the L-Style product line-up, the LG Optimus L7 features an 8.7 mm-thickness and a premium modern square look via LGs floating mass technology. It also boasts the latest Android 4.0 Ice Cream Sandwich OS and a largest-in-class 4.3 wide display. Combining the latest technology and a sophisticated design, the LG Optimus L7 brings versatility to the mobile experience.

The world moves faster than ever. And LG Mobile Communications Company is working smarter than ever to keep you up to speed. With revolutionary smartphones that offer 4G LTE technologies and quad-core processors
LG Optimus L5 With a large 4-inch screen, the LG Optimus L5, also from the L-Style series, introduces an optimized display and error-free input. L-Styles unique modern square shape offers exquisite style, allowing comfortable, one-handed multi-tasking. The LG Optimus L5 features the latest Android 4.0 operating system, Ice Cream Sandwich, as well as NFC Tag & Play functionality (EU).

that take speed to a whole new level. True HD IPS and 3D displays for breathtaking images. And LGs elegant L-Style design that puts more elegance in the palm of your hand.

LG Optimus L3 The LG Optimus L3 delivers a big punch in a small compact form. This L-Style product packs the full smartphone experience into a 3.2 wide screen designed for easier reading and viewing. Its 1,500 mAh battery ensures longer talk and standby times. And of course, as an L-Style smartphone, the Optimus L3 has the beauty to match the brawn.

LG T375 Engineered with elegant, slim lines, the LG T375 presents an upscale design and essential smart features. Connectivity is optimized with pre-installed SNS via Wi-Fi, and data sharing is made ultra-easy with PC drag and drop. On its 3.2 inch QVGA screen, images appear with sharp clarity, and the screens multi-touch brings a glimpse of the smartphone experience.

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HOME APPLIANCE COMPANY

Intuitive. Its LG.

We heard your wish for convenience. And weve come up with some very surprising ways to answer that call. In fact, LG Home Appliance Company has a smarter, fresher and, were proud to say, more stylish line-up of appliances than any other company in the world. Wish, granted!

French Door Refrigerator 36 37

Front Load Washing Machine Wash more per load, and do fewer loads per day! With LG you get the industrys largest washing machine, big enough for the bulkiest comforters. Plus Inverter Direct Drive* to save energy, TurboWash for faster wash and rinse cycle times, and 6 Motion* Direct Drive technology that combines the right combination of actions for a wide range of fabricsfrom heavy-duty towels to delicate handwashables. Wash. Rinse. Relax!
Inverter Direct Drive: Doing away with its belt and pulley, LGs Inverter Direct Drive * makes the motor hardier and much more efficient. Fewer parts mean quieter operation as well. 6 Motion: Different combinations for customized washing of various fabric types. *  (Swing, Rolling, Tumbling, Filtration, Stepping, Scrubbing)

Wonderful.
TrueSteam Dishwasher Skip the soaking and scraping that ordinary dishwashers require. LGs TrueSteamTM technology uses three dedicated steam cycles to deliver sparkling clean results. Thanks to its unique built-in steam generator, the steam is hot enough to dissolve tough food residue, and gentle enough to remove lipstick stains on delicate items such as wine glasses. And with Dual Spray, LGs new dishwasher takes care of fragile glassware as well as big pots and pans in a single cycle. French Door Refrigerator Open the door to convenience! Our door-in-door feature puts an extra compartment inside the main dooropen it up for quick and easy access to the drinks and snacks your family enjoys most often. This smart feature will help you keep everything inside the refrigerator better organized, easier-to-reach, and help save energy by reducing the times you open the main refrigerator door. Now thats out-of-the-box thinking! 38 Lightwave Convection and Grill Crispy, tasty, tender dishes at the speed of light! LGs Lightwave Technology uses a multi-heating system that keeps dishes crispy on the outside, juicy on the inside. And helps make your meals healthier, too, as Lightwave cooking helps food retain more Vitamin C while shedding unwanted salt and fat. So you can serve food like a gourmet chef, while saving time like a smart mom.

Wish for

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KOMPRESSOR FOLLOW ME Cleaner. Faster. More hygienic. LG KOMPRESSOR, the worlds first dust compression system, keeps dust from escaping back into the room. And the KOMPRESSOR FOLLOW ME, with its revolutionary Location Recognition Technology and Active Following Wheel Technology literally follows you around the room without pulling on the hose. Less effort, cleaner homenow thats LG smart!

Long a global leader, LG Home Appliance Company created the worlds first smart home appliances. Now, LG continues to set the pace and bring even more insightful, energysaving technology into homes around the world. Beginning with four core
HOM-BOT 2.0 LGs revolutionary robotic vacuum cleaner just took another leap forward. The Dual Eye Camera Sensors help the HOM-BOT navigate floors more effectively, even around tough obstacles and odd-shaped furniture. So your home is cleaned better, fasterand with you barely having to lift a finger!

technologiesLinear Compressor*, Inverter Direct Drive, KOMPRESSOR, and Lightwavewe have refined our line-up even further with Smart Saving and Smart Convenience.

Built-in Appliances LG has put all of its industry-leading innovation and design into the My Signature Kitchen suite of builtin appliances that are in perfect harmony with the way you live, cook and entertain. No matter what your lifestyle, your kitchen can truly become the center of your home. Efficient, fashionable, and on the forefront of sustainability. Design LG My Kitchen into the wish list of your next renovation. Water Purifier H2O. Simple. Pure. Nothing is better than clean and clear water. And nothing gets household water closer to perfect than LGs CoreCare3* system. Along with a unique stainless steel water tank and regular maintenance with ecofriendly sterilization kit, your family will enjoy water that is cleaner and safera very refreshing thought, indeed.
Three different core systems, one for  * CoreCare3: water care products, one for air care products and one for massage chairs. Taken together, the system offers customers impressive health care benefits and ease of use.

Compressor: A unique direct transmission system that minimizes mechanical loss, saves energy,  * Linear reduce noise and increase durability.

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AIR CONDITIONING & ENERGY SOLUTION COMPANY

Vitalizing. Its LG.

We heard your wish for HVAC* & Energy solutions that use less energy, and save you more on utility costs month after month after month. LG Air Conditioning and Energy Solution Companys HVAC offerings redefine efficiency for the entire industry, while bringing more peace, quiet, vitality and comfort to homes, offices and buildings of every size.
Heating, Ventilating & Air Conditioning  * HVAC:

Prestige Inverter V 42 43

Deluxe Inverter V Pure health. Perfect comfort. Supreme quiet. The Deluxe Inverter V boasts 15% moisturizing improvement, emitting over 2 million ions water droplets, eliminating the negative effects of dried out air while delivering deep, revitalizing moisture to your skin. Plus a Plasmaster Ionizer that kills 99.9% of bacteria in the air, all delivered in a unit with a low 19dB noise level. Keep cool. Sleep quiet. Feel refreshed.

Mmmmm.
Prestige Inverter V 74% energy saving. Industry-leading cooling and hearing efficiency. And the absolute lowest sound levels possible in sleep mode. Not to mention LGs unrivaled Plasmaster ionizing technology that not only sterilizes air going through the air conditioner, but also cleans harmful substances, allergens and odors surrounding the unit. Cool. Clean. Quiet. No wonder the Prestige Inverter V is a leading choice for year-round comfort. Multi V III High efficiency. Easy installation. Eco-friendly design. LG VRF* technology is now available for even high-rise buildings! The LG Multi V III increases efficiency by minimizing energy consumption and offering comfort-ondemand even in high-rise buildings while affording surprisingly easy installation. In fact, its the most advanced commercial air conditioner to ever earn the industrys official CarbonFree certificationanother important first from LG!  RF: Variable Refrigerant Flow. A technology introduced as a system to minimize efficiency *V losses found in conventional HVAC systems and provide sustainable energy benefits. Hydro Kit Floor heating, cooling and hot water supply reach new levels of efficiency with LGs Hydro Kit. The advanced heat pump technology takes advantage of ambient air from other parts of the building to deliver 360% greater energy efficiency versus a boiler for overall lower utility costs. Plus extreme eco-friendly reduction of CO2 emissions, and easy installation with a compact modular structure.

Wish for

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LG Centrifugal Chiller Now, even large size buildings and industrial facilities can take advantage of LGs highperformance chiller technology. The high-efficiency compressor will help large-scale operations realize significant energy savings while reducing maintenance worries with proven LG reliability. And advanced Eco-friendly refrigerants mean that buildings are doing their part for a sustainable future. LG LED PAR 16 7W LG LED PAR 16 7W Lamp puts your homes art work in a better light! Not only will it bring out all the wonderful color of pictures and objects without flickering, it can save more than 80% on energy versus halogen lamps. And save you trips up the ladder, as wellthe PAR 16 lasts up to 40 years even when operated 2.7 hours a day! Longer life. Less energy. Simply brilliant!

From the very first air conditioner sold in Korea, to over 100 million units sold around the world, LG Air Conditioning and Energy Solution Company is a long-standing global leader in making homes comfortable. Our innovative HVAC solutions and energy management can transform any type, style and size of interior space, residential or industrial. The result: safer and greener solutions for the way we live today. And tomorrow.

LG LED Bulb 14W The Omni-directional LG LED Bulb 14W will change the light quality of your home at the flip of a switch. Make full use of the bulbs natural light and long life anywhere, including front door, bedroom, kitchen and bathroom. Enjoy up to 80% energy savings compared to 60W incandescent bulb, and a lifetime of 25,000 hours.

Control System Finally, youre in total control of HVAC usage. From easy-to-use home networks that save on electricity bills, to the incredible AC Manager that can control up to 8,192 indoor facilities, LG offers total flexibility in centralized control system management. Set it for optimal indoor temperatures in all weather, maintain steady levels of energy use, and prevent sudden outages in periods of over power use. Cool! 46 47

Wish + New Business

Solar Energy

Clean. Renewable. Affordable. Solar energy is the power of choice for the worlds future. And it will be a powerful engine of growth to sustain our company well into the 21st Century.

New Growth
LG has committed itself to leading the world in new ways to generate clean, sustainable energy to all communities
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Wish for sustainable solar energy

A future built on years of experience No other company is better positioned to lead the world in renewable energy. The engineers of both LG Electronics and LG Chem have been conducting groundbreaking research for the past 20 years, well before most companies even conceived of solar as a viable commercial prospect. Add those decades of insight to a half-century designing and building world-renowned electronics for homes and businesses of all sizes, and it is easy to see why LG is a company the rest of the industry will be following for years to come. Products built for todayand tomorrow LG has committed all of it resources to building solar products that meet todays real-world needs. Our residential, commercial and utility-grade modules are built with the industrys most reliable materials to our unique design specifications. They are then tested through an unprecedented process of quality assurancean evaluation so rigorous, we offer a 10-year product warranty, plus a linear performance warranty that guarantees a minimum power output of 80.2% up to 25 years. The worlds first Carbonfree module But dont just take our word for itLGs MonoX* solar modules are the first in the world authorized to display the Carbonfree Certified Label. This certification comes after an independent Life Cycle Assessment, taking into account everything from the raw materials used to the end user experience. And all MonoX modules are designed to satisfy customer need for easy installation and maintenance. Reliable, renewable, affordable energy that wont harm our atmosphere its another way that LG is fulfilling the worlds wish for a cleaner, more sustainable future.

* MonoX: The brand name of LGs high efficiency mono crystalline solar module

Water Treatment

Clean water is a human essential. And LG, through three pioneering divisions, is developing the technologies and infrastructures needed to see that pure water continues to be available to communities around the world.

Growth
And to providing pure, potable water that will supply the worlds needs well into the future.
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New

Wish for clean water

Developing the most advanced nano technology LG Electronics, by utilizing LG Groups expertise in chemical, mechanical and electronic technologies, has been at the forefront of efficient and eco-friendly membrane development. By converging three core nano technologiesfine patterning, resin formulation and resin mixingwe have been able to develop unique membrane processes applicable to many different types of raw water found around the world. And, since 1994, we have been fully compliant with global environmental regulations such as RoHS* and Halogen Free. So that we are not just providing cleaner water, we are also assuring a cleaner planet in the process.
The restriction of the use of certain hazardous substances in electrical and electronic  * RoHS: equipment adopted in February 2003 by the European Union

Engineering better solutions for clients LG has partnered with the Hitachi Group to create LG-Hitachi Water Solutions, a company aimed at providing world-class solutions to businesses in need of effective water treatment. By combining the global business, research and technological expertise or these two great corporations, LG-Hitachi Water Solutions is quickly becoming a leader in engineering, procurement and construction of water treatment facilities. From the delivery of ultrapure drinking water to the purification of industrial & municipal waste water, the company is ready to design and build advanced water treatment plants in Korea, and around the world. Simplifying the complex issue of water infrastructure The operation and maintenance of water treatment facilities is a complex undertaking. It requires up-to-the minute knowledge of both technological and environmental issues. LG operates its HiEntech division to offer a full range of services to the industry, from sophisticated infrastructure development through highly-trained manpower. It is our goal that facilities are run with the same concern for our clients needs, and for the safety and welfare of their customers and communities, that is consistent with LGs long-standing global reputation. By working together, sharing knowledge, and staying true to our values, LGs water treatment divisions are committed to making one very basic and global wish come true: that people everywhere have access to clean water every single day.

We wish to maintain our hardearned reputation for bringing added value to the lives of consumers. We wish that our investments in sustainability, sports, and community causes bring health, prosperity and joy to our friends and neighbors around the world.

We wish
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Lifes good, when you live green

Greenovation. The fundamental wish for all innovation that LG includes sustainability as a core value. Its a wish were fulfilling in five key areas: reducing carbon emissions, developing greener businesses, strengthening greener products competitiveness, working with our suppliers, and helping to eliminate e-waste around the world. Now thats a wish that we can all live with!
ENVIRONMENTS
Ma

A commitment to reduce Green House Gas Emissions A record to be proud of! For three consecutive years, LG has been the No.1 company for Green Management as designated by the Carbon Disclosure Project of Korea. But were not stopping there. We aim to reduce 30 million tons of GHG emissions at the manufacturing and product usage stage in 2020, comparing to 2007 emissions. And we have been expanding our low carbon management to the whole value chain, including logistics and procurement as well as employees business travels. Growing greener businesses Yes, green can be good for business as well as for the planet. We have spent several decades investing in the R&D necessary to lead the next generation of green enterprise: LED lighting, solar power, electric vehicles, water treatment and smart grid not only because theyre good for the planetbut they will also be good for our bottom line.

Energy Star* partner of the year ceremony

6 Motion washing machine, introduced as an eco-friendly product at CES 2012 for its energy saving feature

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Products people are proud to own Greenovation comes home! Our Smart Appliances have already been helping consumers save on energy costs, and we are continuing to invest in the technologies that will keep our products on the forefront of sustainability. So consumers can point out with pride how they are doing their part for the planet right inside their homes. Encouraging our partners to be green Green work is teamwork! Our Green Program, first begun in 2005, has been helping and supporting our suppliers to create their own green management systems. In 2010, we developed it into Green Program Plus, expanding the scope of our support across our farreaching green business ecosystem. Recyclable packaging and products Were not wasting any opportunity to help keep communities green. E-waste, that is! So we are working with local service providers, recyclers, and NGOs around the world to implement takeback programs that comply fully with e-waste regulations in each country. And we have been increasing the use of recycled materials in all of our products and packaging.

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LG Smart Grid* Showroom

 nergy Star: A joint program of *E the U.S. Environmental Protection

Agency and the U.S. Department of Energy to protect the environment through energy efficient products and practices

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 mart Grid: A digitally enabled *S electrical grid that gathers,

distributes, and acts on information about the behavior of all suppliers and consumers in order to improve the efficiency, importance, reliability, economics, and sustainability of electricity services

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Fulfilling the dream

GLOBAL SOCIAL CONTRIBUTION

An environment of learning Welcome to the classroom of the future! Lifes Green Class is an innovative and highly mobile classroom designed by LG, and dedicated to lessons about the environment through handson experiments and imaging technology. After great success with children throughout Korea, the program has been expanded to India visiting more than 70 schools each year. And, since 2010, LG has sponsored Champions of the Earth, the United Nations flagship environmental award. Where hope is more than a wish For many people, there is no greater wish than a simple plate of food. In partnership with the UN World Food Programme, LG operates the LG Hope Schools, providing free school meals to children in Kenya; LG Hope Village in Ethiopia, a farmland reclamation project helping to improve productivity in local villages; and LG Hope Family, a new community improvement program in Bangladesh and Cambodia. We also work to eradicate environmental diseases such as cholera and typhoid through the International Vaccine Institute, and provide aid to victims of natural disasters.

LG Hope Screen in Time Square, NYC, US

LG Hope Family in Cambodia

Here is our fondest wish: that people everywhere can live in a world free of hunger, disease, and poverty. Everyone at LG is proud to support the United Nations Millennium Development Goals, and to partner with other high-profile partners on important projects that raise awareness, provide donations, deliver technology, and encourage volunteer work in communities everywhere. After all, were not just a global corporationwe are also concerned citizens of the world.

Tapping into LG technology for global solutions Technology has the power to make a real difference in the world. In 2006 we developed mobile phones that can read books for the visually impaired, and have donated phones every year since then. In 2011 we launched WeFeedBack, a Smart TV application that enables people to make voluntary contributions to fight world famine. And we build awareness of poverty everyday through our on-going SNS campaign. LG employees making wishes come true We couldnt be prouder! LG employees around the world continue to devote countless hours and money to causes right in their own communities. Global Volunteer Day, when employees volunteer to help our environment each year on World Environment Day; blood donation drives; LG Hope Schools; and tree planting activities are just a few of the ways they support. In Korea alone, employees have organized Lifes Good Volunteers, using their talents to benefit isolated members of their local areas; LG IT Angels, one-on-one computer sessions to bridge the information gap for those with severe disabilities; and Junior Science Class programs. Thank you to every LG employee for helping to make so many wishes come true!

LG Smart TV Charitable App., WeFeedBack

LG Hope Village in Ethiopia

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Lifes exciting, when you win

SPORTS SPONSORSHIPS

Formula 1 _Sponsor since 2009 The most exciting sport on four wheels is the perfect platform to showcase LG innovation. After all, Formula 1 racing and LG products share the same key elements that drive the passion of their fans: sleek style, engineering excellence, and the will to be first in the world.

2011 Formula 1 Petronas Malaysia Grand Prix

Victory! Its the one wish that every sports fan has in common. And its a feeling that we all share at LG not only as sponsors, but as a global community of fans of many different sports, from car racing to cricket. Which is why were doubly honored to sponsor some of the worlds leading organizations.

ICC Cricket World Cup 2011 in India

ICC Cricket _Sponsor since 2002 Passion. Few sports create the same frenzy of excitement like cricket. And when teams compete for the Cricket World Cup every four years, entire countries pause to cheer their national teams on to victory. Its the same kind of passion shared by LG employees for the challenges they share at work every day, which is why ICC* Cricket is the perfect platform to share our products with the world. Match after match after match.  International Cricket Council * ICC:

Pit exit at the 2011 Formula 1 Petronas Malaysia Grand Prix

NCAA _Sponsor since 2009 This sponsorship was a slam dunk! 88 National Championships in 23 different sports, and a fan base that will stop at nothing to root their favorite team on. Thats a lot of cheering over the course of one year! LG is proud to partner with the NCAA* and CBS Sports for an exclusive, fully-integrated campaign that will put our name on air, in print, in arenas, online, in stores, and as part of promotional tie-ins throughout the year.  CAA: The National Collegiate Athletic Association *N

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MARKETING CAMPAIGN & ACTIVITY

Adding value to consumers lives

The LG Brand is more than the products we sell. It is brand based on adding value to consumers lives every single day. It is that same spirit that forms the core of our many marketing efforts. Campaigns meant not merely to inform consumersbut to inspire them to enjoy life more.

LG World Record Campaign The World Record campaign recognizes those LG products that feature World First and World Best technology, further building the story of LG as a world leading technology pioneer. Products are chosen based on one of three criteria: first to introduce a new technology, at least one superior product spec versus competitors, or unique position or accreditation by an external organization. Beginning from LG Cinema Screen 3D TV with the narrowest bezel and LTE Smartphones with the most numbers of LTE essential patents, look for the most innovative products to receive this special designation in the coming years. K-Pop Sponsorship Music fans were not Sorry, Sorry last November when LG began working with the groups Super Junior and f(x) who are playing big roles of spread on Korea Wave with their songs. LGs sponsorship and promotion of K-Pop and Korea Wave is already inspiring legions of fans in Asia and around the world. This past year we sponsored the SM Town concert that all K-Pop stars performed in New York City, brought LGEs innovative products experience to MoA (M live Most Amazing) concerts in various East Asian Countries, in addition ran numerous ticket promotions, and brought added value to fans through Facebook with an interactive film featuring Super Junior as brand endorsers.

LG World Record Campaign Emblem showcases the companys product leadership

Cinema Screen TV Marketing We began our effort to reach premium customers with ties to celebrities and governments in key markets. In Hollywood, LG hold techorator* marketing that offered decorating service for a power bloggers house collaborating celebrity interior consultant. The Experience Zone also made an appearance at the Dubai World Cup horse racing event, and we helped the government in Kazakhstan with a campaign meant to convert consumers in that market to digital TV standards.  echorator: Its a mix of Technology & Decorator. *T Design consultant who offers counseling of
harmony between new electronic products and consumers house interior.

Performance of Koreas popular idol group, Super Junior and f(x) who are leading the Korea Wave

The Dubai World Cup was not the only sports event to be enhanced with Cinema Screen 3D TV excitement. Basketball fans in the US felt it firsthand with Experience Zones during the NCAA March Madness tournament, along with co-promotions with the leading retailer Best Buy. We invited the press, retailers and influencers of soccer in Germany to our product launching soccer parties in stadiums across the country. Sports fans arent the only ones who got to experience the thrill. Cinema Screen 3D TV is a video gamers dream come true. LG is willing to take center stage at major game festivals in nine countries, and to be an exhibition sponsor at Germanys Gamescon in August and Russias Igromir in October. And we installed Cinema Screen 3D TV in sports pubs for Euro Cup broadcasts throughout Russiaand inspired fans to cheer on their team like never before!

Cinema Screen TV marketing through a range of consumer experiences

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LG continues to be honored with Industry Awards around the world. These honors are a reflection of the passion our employees put into every product we create. And they are a reaffirmation of what consumers already know: how LGs steady stream of worldleading innovation fulfills their fondest wishes for greater comfort, convenience, health and entertainment.

Innov ation
62 63

Leading the world in

AWARDS

2012 CES Innovations Awards - 55LM9600

2012 CES Innovations Awards - 55LM8600

2012 CES Innovations Awards - PM9700

2012 CES Innovations Awards - Smart Upgrader (SP820)

red dot Design Award 2012 - LM9600

red dot Design Award 2012 - LM8600

red dot Design Award 2012 - PM6900

red dot Design Award 2012 - M4

red dot Design Award 2012 - BH5320F

red dot Design Award 2012 - PA70G

red dot Design Award 2012 - Ultrabook (Z330)

iF Design Awards 2012 - BH5320F

2011 CTIAs E-Tech Awards - LG Revolution

2011 CTIAs E-Tech Awards - LG Thrill 4G

Guinness Record: Worlds First Dual-core Smartphone - Optimus 2S

2012 CES Innovations Awards - LG DoublePlay (LG C729)

2011 CES Innovations Awards - Steam Dishwasher

2012 CES Innovations Awards - LG Revolution

Mobile Choice (UK Magazine): Most Innovative Device - Optimus 3D

NTT DoCoMo: LTE Partnership Special Award - Optimus True HD LTE

MWC 2012: Best Product - Optimus 4X HD

red dot and iF Design Awards 2012 - Optimus UI 2.0

2011 CES Innovations Awards - LG Wave Top-loading Laundry Pair with a Full Color LCD Panel

2011 CES Innovations Awards -L  G ULTRA Capacity SteamWasher

iF Design Awards 2012 - Side-by-Side Refrigerator (Material Award)

2012 CES Innovations Awards - French Door Refrigerator with Blast Chille (Best of Innovations)

2012 CES Innovations Awards - Titan Front Loading Laundry Pair

2012 CES Innovations Awards - HOM-BOT 1.O

iF Design Awards 2011 - Convection Oven

iF Design Awards 2011 -E  uropean Bottom Freezer Refrigerator

iF Design Awards 2011 - Sidy-by-Side Refrigerator

iF Design Awards 2011 -2  4-inch Front Loading Washing Machine

2012 Edison Awards - LG CINEMA 3D (Silver at Content Display Category)

red dot Design Award 2011 -E  uropean Bottom Freezer Refrigerator

red dot Design Award 2011 - 24-inch Front Loading Washing Machine

red dot Design Award 2011 - Lightwave Oven

red dot Design Award 2011 -C  anister Type Vacuum Cleaner

red dot Design Award 2011 - Robotic Vacuum Cleaner

red dot Design Award 2012 - European Bottom Freezer

red dot Design Award 2012 - Clothing Management Cabinet

red dot Design Award 2012 - Dishwasher (Honorable Mention)

red dot Design Award 2012 -F  rench Door Refrigerator (Honorable Mention)

2009 & 2010 New Excellent Technology Award - Multi V III

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FACT & FIGURES

As of 2011_ In Billions of Korean Won Global revenue, referring to the total revenue of the global subsidiaries accounts excluding internal transactions.

nt e

r ta

e in m

nt

M o b il e C o m

mu

nic

COO

2010 CTO CFO

2011

at

io

55,754
CHO Business Support Officer GMO
As of 2011_ In Billions of Korean Won

54,257

eE

Ho m

Ho
p p lia n ce me A

Vice Chairman & CEO

Smart Business Center Corporate Design Center Quality Center

Global revenue, referring to the total revenue of the global subsidiaries accounts excluding internal transactions.

Air
Co n

Others 6% AE 8% HE 44%

CIS 6% India 5% South East Asia 6% Middle East & Africa 10%

China 5%

Japan 2% Korea 14%

Corporate Strategic Planning Division Corporate Business Planning Division Sales by Company

ORGANIZATION EMPLOYEES

Korea

35,284
Total

91,457
As of 2011_ In Billions of Korean Won

iti

on

in g

Corporate Audit Division

HA 20%

Sales by Region
North America 23% Europe 15%

&E

nergy

S ol u ti o n

Central & South America 15% MC 22%

SALES INVESTMENT

Overseas

Equipment Investment

R&D Investment

56,173

1,812
Total

2,483

4,295
66 67

GLOBAL OPERATIONS

LGENO Oslo LGESW Stockholm LGEBN Amsterdam LGELV Riga LGERA Moscow LGEMA Mlawa LGERI Moscow LGEPL Warsaw LGEUK London Amstelveen LGEUR Kiev LGESC LGEDG Duesseldorf LGECZ Praha LGEAG Vienna LGEMF Villepinte LGEFS Paris LGEMK Budapest LGEIS Milano LGERO Bucharest LGEPT Lisbon
LGEAS Algiers

LGEES Madrid LGETU Tunis

LGETK Istanbul LGEHS Athens LGEEG Katameya LGELF Amman

LGESR Riaydh LGESB Jeddah

LGEAT Istanbul

LGEMC Casablanca

LGEAF Dubai
LGEGF Dubai LGEDF Dubai LGEME Dubai

LGECH Beijing LGESY Shenyang LGERD Beijing LGEQH Qinhuangdao LGETL Tianjin / LGETA Tianjin LGEYT Yantai LGEQD Qingdao Tokyo LGEJP LGEQA Qingdao LGEJL Tokyo LGEPN Nanjing / LGEND Nanjing LGEKS Kunshan LGEHN Hangzhou LGESH Shanghai LGETR Taizhou LGCRC Shanghai LGEIL New Delhi LGETT Taipei LGEHZ Huizhou LGEHK Hong Kong LGEVN Hung Yen LGETH Bangkok LGETH Rayong

LGEAK Almaty

Zenith Chicago

LGECI Mississauga LGEUS Englewood Cliffs Triveni New Jersey LGEAI Hunstville

LGEMX Mexicali LGEMU San Diego LGEMR San Diego

LGEMM Monterrey LGERS Reynosa

LGEMI Miami

LGEIL Pune LGSI Bangalore

LGEMS Mexico City Guatemala Guatemala City City LGEPS Panama

 Marketing  R & D  Marketing & Production  Service  OTHERS  Production
LGEVZ Caracas

LGEPH Manila

LGENI Lagos

Easytec Lagos

LGESK Nairobi LGEAO Luanda

LGEML Kuala Lumpur LGESL Singapore LGEIN Jakarta

LGECB Bogota

LGEPR Lima

LGESA Johannesburg
LGEAP Sydney

LGEBR Taubate

LGECL Santiago

LGEAR Buenos Aires

AMERICA LGEAI LG Electronics Alabama, Inc. LGECI LG Electronics Canada, Inc. LGEMR  LG Electronics Mobile Research. U.S.A., L.L.C LGEMS LG Electronics Mexico S.A.DE C.V. LGEMU LG Electronics Mobilecomm U.S.A., Inc. LGEUS LG Electronics U.S.A., Inc. Zenith Zenith Electronics, L.L.C Triveni Triveni Digital, Inc. LGEMM LG Electronics Monterrey Mexico S.A.DE C.V. LGEMX LG Electronics Mexicalli S.A.DE C.V. LGERS LG Electronics Reynosa S.A.DE C.V. LGEAR LG Electronics Argentina S.A. LGECB LG Electronics Colombia Ltda. LGECL LG Electronics, Inc. Chile Ltda. LGEPR LG Electronics Peru S.A. LGEPS LG Electronics Panama S.A. LGEBR LG Electronics de Sao Paulo Ltda. LGEVZ LG Electronics Venezuela S.A. Guatemala LG Electronics Guatemala S.A. LGEMI LG Electronics Miami, Inc.

EUROPE LGEAG LG Electronics Austria GmbH LGEBN LG Electronics Benelux Sales BV LGECZ LG Electronics CZ, s.r.o. LGEDG LG Electronics Deutschland GmbH LGEES LG Electronics Espana S.A. LGEFS LG Electronics France S.A.S LGEHS LG Electronics Hellas S.A. LGEIS LG Electronics Italia S.p.A. LGEMA LG Electronics Mlawa Sp.z o.o. LGEMF LG Electronics Mobilecomm France LGEMK LG Electronics Magyar KFT LGEPL LG Electronics Polska Sp.z o.o. LGEPT LG Electronics Portugal S.A. LGERO LG Electronics Romania S.R.L. LGESC  LG Electronics European Shared Service Center B.V. LGESW LG Electronics Nordic AB LGENO LG Electronics Norway AS LGEUK LG Electronics United Kingdom Ltd. LGELV LG Electronics Latvia, L.L.C

MIDDLE EAST & AFRICA LGEAF LG Electronics Africa Logistic FZE LGENI LG Electronics Nigeria Limited. LGEAT Arcelik - LG Klima Sanayi ve Ticaret A.S. LGEEG LG Electronics Egypt S.A.E. LGEGF LG Electronics Gulf FZE LGETU LG Electronics North Africa LGEAS LG Electronics Algeria SARL LGEDF LG Electronics Dubai FZE LGELF LG Electronics (Levant) Jordan LGEMC LG Electronics Morocco S.A.R.L. LGEME LG Electronics Middle East Co., Ltd. LGESA LG Electronics S.A. (Pty) Ltd. LGESR LG-Shaker Company Ltd. LGETK LG Electronics Ticaret A.S Easytec Easytec Global Services Innovation Limited. LGEAO LG Electonics Angola Limitada (Limited.) LGESK LG Electronics Service Kenya Limited, Inc. LGESB LG Electronics Saudi Arabis Limited.

ASIA LGEAP LGEIL LGEIN LGEML LGEPH LGESL LGETH LGEVN LGSI LGEJP LGEJL LG Electronics Australia Pty, Ltd. LG Electronics India Pvt. Ltd. P.T.LG Electronics Indonesia LG Electronics (M) Sdn. Bhd LG Electronics Philippine, Inc. LG Electronics Singapore Pte, Ltd. LG Electronics Thailand Co., Ltd. LG Electronics Vietnam Co., Ltd. LG Soft India Private Ltd. LG Electronics Japan, Inc. LG Electronics Japan Lab, Inc. LGEND LG Electronics Nanjing Display Co., Ltd. LGEPN Nanjing LG - Panda Appliances Co., Ltd. LGEQD  Qingdao LG Inspur Digital Communication Co., Ltd. LGEQH LG Electronics Qinhuangdao, Inc. LGESH Shanghai LG Electronics Co., Ltd. LGESY LG Electronics (Shenyang), Inc. LGETA LG Electronics Tianjin Appliances Co., Ltd. LGETR Taizhou LG Electronics Refrigeration Co., Ltd. LGETT LG Electronics Taiwan Taipei Co., Ltd. LGEYT Yantai LG Inspur LG Digital Mobile Communications Co., Ltd. LGCRC LG Electronics (Shanghai) Research and Development Center Co., Ltd. LGETL Tianjin Lijie Cartridge Heater Co., Ltd. LGEQA LG Electronics Air-Conditioning (Shandong) Co., Ltd.

CIS LGEAK LGERA LGEUR LGERI LG Electronics Almaty Kazakstan LG Electronics RUS., L.L.C LG Electronics Ukraine, Inc. LG Alina Electronics

CHINA LGERD LG Electronics (China) Research and Development Center Co., Ltd. LGECH China Holding Company LGEHK LG Electronics HK Ltd. LGEHN  LG Electronics (Hangzhou) Co., Ltd. LGEHZ LG Electronics Huizhou Ltd. LGEKS  LG Electronics (Kunshan) Computer Co., Ltd.

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TOP MANAGEMENT

Bon-Joon Koo Vice Chairman & CEO / LG Electronics

Jong-Sik Kim President / Chief Operating Officer

Skott Ahn President / Chief Technology Officer

David Jung Executive Vice President / Chief Financial Officer

Young-Ha Lee President / Business Support Officer

Havis Kwon President & CEO / Home Entertainment Company

Jong-Seok Park Executive Vice President & CEO / Mobile Communications Company

Moon-Bum Shin Executive Vice President & CEO / Home Appliance Company

Hwan-Yong Nho President & CEO / Air Conditioning & Energy Solution Company

Ki-Wan Kim Executive Vice President / Global Marketing Officer

Kun-Pyo Lee Executive Vice President / Corporate Design Center

Ju-U Han Senior Vice President / Quality Center

Ho-Geon Hwang Senior Vice President / Chief Human Resources Officer

Board of Directors Inside

Woody Nam President & CEO / China Sang-Gyu Choi Executive Vice President & CEO / Korea Marketing Company Stanley Cho Executive Vice President & CEO / Europe James Park Senior Vice President & CEO / Middle East & Africa Wayne Park Executive Vice President / US Bon-Joon Koo Vice Chairman & CEO of LG Electronics / Director David Jung Executive Vice President & CFO of LG Electronics / Director Yu-Sig Kang Vice Chairman & CEO of LG Corp. / Director

Outside
Sang-Hee Kim Lawyer / Outside Director Kyu-Min Lee Advisor of SK Research Institute / Outside Director In-Ki Joo Professor of Yonsei University / Outside Director Chong-Nam Chu Professor of Seoul National University / Outside Director

Audit Committee
In-Ki Joo Professor of Yonsei University / Outside Director Sang-Hee Kim Lawyer / Outside Director Kyu-Min Lee Advisor of SK Research Institute / Outside Director

Chris Yi Senior Vice President / Brazil

Soon Kwon Senior Vice President / India

Weon-Dae Kim Senior Vice President / Indonesia

Dae-Hyun Song Executive Vice President / Russia

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GLOBAL PRODUCTION NETWORK

* As of December 31, 2011

CORPORATE MILESTONES

Region
North, South & central America

Country
Mexico Mexico Brazil Mexico Brazil

City
Mexicali Reynosa Manaus Monterey Taubate Mlawa Wroclaw Ismailia Istanbul Riaydh Johannesburg Noida Pune

Subsidiary
LGEMX LGERS LGEAZ LGEMM LGESP LGEMA LGEWR LGEEG LGEAT LGESR LGESA LGEIL

Product
LCD TV, Monitor LCD TV, PDP TV, CRT TV, PDP Module TV, DVD, Audio, Car Audio, Microwave Oven, Air Conditioner Refrigerator, Oven Monitor, Mobile Phone, Laptop, Washing Machine TV, Monitor Refrigerator, TV CRT TV, FPD Air Conditioner Air Conditioner LCD TV, PDP TV, Monitor  RT TV, LCD TV, PDP TV, Monitor, Refrigerator, Air Conditioner, C Washing Machine, Compressor, Optical Storage, Mobile Phone Washing Machine, Air Conditioner, Compressor TV, Monitor, Mobile Phone, Air Conditioner, Washing Machine Refrigerator, Microwave Oven, Vacuum Cleaner

1958 Established as GoldStar 1959 Produced Koreas first radio 1962 E  xported Koreas first radios to the US and Hong Kong 1965 Produced Koreas first refrigerator 1966 Produced Koreas first black and white TV 1968 Produced Koreas first air conditioner 1969 Produced Koreas first washing machine 1974 Listed on the Korea Stock Exchange 1977 Produced Koreas first color TV 1978  Surpassed USD 100 million in exports, a Korean industry first 1980 E  stablished first EU sales subsidiary in Germany (LGEWG) 1982 E  stablished US color TV plant in Huntsville, Alabama 1984 S  urpassed KRW 1 trillion in sales for the first time 1986 E  stablished European VCR plant in Germany 1988 E  stablished sales and joint venture production subsidiaries in Thailand 1991  Established design technology center in Ireland 1993 E  stablished a production and sales subsidiary in Huizhou, China (LGEHZ), beginning a fullscale advance into the Chinese market 1995 Renamed as LG Electronics Acquired US-based Zenith Electronics 1997 D  eveloped 40-inch Plasma TV and worlds first DTV IC chipset  Established India production subsidiary (LGEIL) 1998 Developed worlds first 60-inch Plasma TV 1999 C  o-established LG.Philips LCD (currently LG Display) 2000  Acquired operations of LG Information & Communications  Launched worlds first Internet-enabled refrigerator

2001 C  ommercialized asynchronous IMT-2000 communications equipment  Launched worlds first Internet-enabled washing machine, air conditioner, and microwave oven 2002 D  emerged into two companies to unlock shareholder value: holding company LG Electronics Investment (LGEI) and operating company LG Electronics (LGE)  Commercialized worlds first home network system 2003 Developed  worlds first synchronousasynchronous IMT-2000 Mobile phone Developed worlds first 76-inch Plasma TV  Launched worlds first DVD rewriter compatible with all CD and DVD standards  Led US CDMA mobile phone market for the first time 2004 R  eceived approval for E-VSB as the next generation ATSC DTV transmission standard Launched worlds first 55-inch LCD TV  Commercialized worlds first 71-inch Plasma TV  Developed worlds first mobile phone with T-DMB mobile TV reception  Developed home cinema system with wireless speakers  Led global CDMA mobile phone market for the first time 2005 Launched  worlds first notebook with T-DMB reception  Launched LG Chocolate, the first phone in the Black Label Series  Developed worlds first 102-inch Plasma TV  Co-established LG-Nortel, a telecommunications network equipment venture with Nortel Networks  Launched mobile phone with S-DMB reception and recording 2006 L  aunched LG Shine, the second handset in the Black Label Series  Launched steam washing machine and interactive TV refrigerator Developed worlds first 100-inch LCD TV  Launched worlds first full HD (1080p) 102inch Plasma TV  Developed worlds first dual-format highdefinition disc player and drive 2007 L  aunched BH100 Super Blu, the worlds first dual-format HD disc player  Launched PRADA Phone by LG with advanced touch interface  Won record number of international design awards, including 21 iF and 29 red dot Design Award Launched 120 Hz full HD LCD TV line Shipped 15 millionth LG Chocolate Phone  Led US drum washing machine market for the first time

Europe

Poland Poland

middle east & africa

Egypt Turkey Saudi Arabia South Africa

2008 The 50th Anniversary of LG Electronics  Established new LG Electronics brand identity  Launched LG Secret, the third handset in the Black Label Series  Released LCD TV Scarlet in 80 nations simultaneously  Unveiled the worlds first Bluetooth headset combined mobile phone  Unveiled the worlds first Blu-ray network storage  Held international environment conference with UN  Developed the worlds first LTE mobile modem chip  Recorded over 100 million units of LG air conditioners in accumulated sales 2009 B  ecame second-largest LCD TV provider worldwide  Became third-largest supplier of mobile handsets market worldwide  Became Global Partner and Technology Partner of Formula One 2010 U  nveiled worlds first and fastest dual-core smartphone, LG Optimus 2X Unveiled worlds first full LED 3D TV  Unveiled the new E90 monitor, the companys slimmest LED monitor to date at just 7.2 mm in depth  Unveiled the companys first ever Real 3D Sound Home Theater System  Unveiled its latest, groundbreaking creations: the BIGIN, a largest-in-class washing machine with LGs proprietary 6 Motion Direct Drive; the iPRO, the largest, most energy efficient refrigerator in its class; the worlds first solar Lightwave oven and the worlds first KOMPRESSOR vacuum cleaner 2011 L  aunched water treatment business providing full-scale planning through total maintenance solutions  Introduced CINEMA 3D Smart TV combining industry-leading 3D technology and smart TV capabilities  Unveiled the worlds first smart appliances delivering the consumer benefits of smart savings and smart convenience  Launched the largest French-door refrigerator in its class offering unparalleled capacity and convenience  Increased investment in air conditioning solutions delivering a full line-up for residential through large industries  Introduced LG Revolution, LGs first 4G smartphone followed by Optimus LTE, the companys best-selling 4G smartphone to date.

Asia

India

Thailand Vietnam

Rayong Hung Yen Hai Phong

LGETH LGEVN

Indonesia

Bekasi Tanggerang

LGEIN

 CD Monitor, LCD TV, PDP TV, CRT TV, VCR, DVD-P, VCR, COMBI, L REC COMBI, DVD-P, DVD-R, BD-P, BD-Home Theater, DVD-Home Theater, Audio, Refrigerator Refrigerator, Compressor Media, Optical Storage Monitor, LCD TV, PDP TV Washing Machine, Motor Casting Security Camera CRT TV  icrowave Oven, Air Conditioner, Vacuum Cleaner, Compressor, M MGT Mobile Phone Telematics, Audio Video Cassette Tape, USB, HDD, Prism Sheet Mobile Phone Chiller TV, Washing Machine TV, Monitor, Refrigerator, Washing Machine

China

China China China China China China China China China China China China China

Taizhou Huizhou Nanjing Nanjing Qinhuangdao Shanghai Shenyang Tianjin Yantai Kunshan Hangzhou Qingdao Qingdao Almaty Ruja

LGETR LGEHZ LGEND LGEPN LGEQH LGESH LGESY LGETA LGEYT LGEKS LGEHN LGEQD LGEQA LGEAK LGERA

CiS

Kazakhstan Russia

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73

FINANCIAL STATEMENTS

Report of Independent Auditors

75 76 78 79 80 81

Report of Independent Auditors LG Electronics Consolidated Statements of Financial Position LG Electronics Consolidated Statements of Operations LG Electronics Consolidated Statements of Comprehensive Income LG Electronics Consolidated Statements of Changes in Equity LG Electronics Consolidated Statements of Cash Flows

To the Board of Directors and Shareholders of LG Electronics Inc.

We have audited the accompanying consolidated statements of financial position of LG Electronics Inc. and its subsidiaries (collectively the Group) as of December 31, 2011 and 2010, and the related consolidated statements of operations, comprehensive income, changes in equity and cash flows for the years then ended, expressed in Korean won. These financial statements are the responsibility of the Groups management. Our responsibility is the express an opinion on these financial statements based on our audits. We did not audit the financial statements of certain consolidated subsidiaries, whose financial statements represent 33% and 35% of the Groups consolidated total assets as of December 31, 2011 and 2010, respectively, and 57% and 56% of the Groups consolidated total sales for the years then ended, respectively. These statements were audited by other auditors whose reports have been furnished us and our opinion, insofar as it relates to the amounts included for those subsidiaries, is based solely on the reports of other auditors. We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, based on our audits and the reports of the other auditors, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Group as of December 31, 2011 and 2010, and their financial performance and cash flows for the years ended December 31, 2011 and 2010, in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (Korean IFRS). Auditing standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to audit such financial statements may differ from those generally accepted and applied in other countries. Accordingly, this report is for use by those who are informed about Korean auditing standards and their application in practice.

Seoul, Korea March 7, 2012

This report is effective as of March 7, 2012, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and the time of reading this report, could have a material impact on the accompanying consolidated financial statements and notes thereto. Accordingly, the readers of the audit report should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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75

LG Electronics Consolidated Statements of Financial Position

LG Electronics Consolidated Statements of Financial Position

December 31, 2011 and 2010

(in millions of Korean Won)

December 31, 2011 and 2010

December 31, 2011 December 31, 2010
(in millions of Korean Won)

December 31, 2011

December 31, 2010

Assets Current assets Cash and cash equivalents Financial deposits Trade receivables Loans and other receivables Other financial assets Inventories Current income tax assets Other current assets Assets classified as held for sale Non-Current Assets Financial deposits Loans and other receivables Other financial assets Property, plant and equipment Intangible assets Deferred income tax assets Investments in jointly controlled entities and associates Investment property Other non-current assets Total assets 129,439 610,709 139,282 7,290,413 1,035,797 1,246,071 5,603,199 7,239 813,182 16,875,331 32,658,457 105,479 543,562 105,601 6,500,484 763,382 968,751 6,008,145 7,295 801,267 15,803,966 32,318,499 2,345,465 150,000 6,752,559 494,239 1,677 4,947,160 197,968 890,388 3,670 15,783,126 1,944,162 85,000 7,001,962 525,046 1,814 5,872,420 154,286 924,813 5,030 16,514,533

Liabilities Current liabilities Trade payables Borrowings Other payables Other financial liabilities Current income tax liabilities Provisions Other current liabilities Non-current liabilities Borrowings Other payables Other financial liabilities Deferred income tax liabilities Defined benefit liability Provisions Other non-current liabilities Total liabilities Equity attributable to owners of the Parent Company Paid-in capital: Capital stock Share premium Retained earnings Accumulated other comprehensive loss Other components of equity Non-controlling interest Total equity Total liabilities and equity 904,169 3,088,179 9,499,534 (326,584) (271,339) 12,893,959 254,289 13,148,248 32,658,457 809,169 2,207,919 10,108,173 (209,844) (271,277) 12,644,140 215,497 12,859,637 32,318,499 4,257,406 20,490 378 15,237 423,306 575,632 3,238 5,295,687 19,510,209 3,183,706 11,597 37,492 10,253 318,112 577,697 2,772 4,141,629 19,458,862 5,486,871 3,178,212 3,780,158 13,860 81,643 724,516 949,262 14,214,522 5,824,392 4,009,229 3,730,292 5,314 98,659 748,146 901,201 15,317,233

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77

LG Electronics Consolidated Statements of Operations

LG Electronics Consolidated Statements of Comprehensive Income

Years ended December 31, 2011 and 2010

(in millions of Korean Won, except per share amounts)

Years ended December 31, 2011 and 2010

2011 2010
(in millions of Korean Won)

2011 (432,805)

2010 1,282,119

Continuing operations Net sales Cost of sales Gross profit Selling and marketing expenses Administrative expenses Research and development expenses Service costs Other operating income Other operating expenses Operating income Financial income Financial expenses Income (expense) from jointly controlled entities and associates Profit (loss) before income tax Income tax expense Profit (loss) from continuing operations Discontinued operations Profit from discontinued operations Profit (loss) for the year Profit (loss) for the year attributable to: Equity holders of the Parent Company Profit (loss) for the year from continuing operations Profit for the year from discontinued operations Non-controlling interest Profit for the year from continuing operations Profit for the year from discontinued operations Earnings per share attributable to the equity holders of the Parent Company during the year (in Won) Earnings per share for profit attributable to the ordinary equity holders of the company Earnings (loss) per share for profit from continuing operations Earnings per share for profit from discontinued operations Earnings (loss) per share for profit attributable to the preferred equity holders of the company Earnings (loss) per share for profit from continuing operations Earnings per share for profit from discontinued operations (2,880) (2,880) (2,563) (2,563) 7,419 2,381 5,038 7,662 2,459 5,203 (469,624) (469,624) 36,819 36,819 1,226,962 393,713 833,249 55,157 40,672 14,485 (432,805) 847,734 1,282,119 54,256,585 42,057,595 12,198,990 7,201,413 1,359,986 1,698,917 1,595,453 1,622,901 1,685,859 280,263 574,148 922,666 (331,058) (399,313) 33,492 (432,805) 55,753,804 43,453,096 12,300,708 7,534,431 1,402,203 1,500,792 1,775,128 2,009,968 1,921,653 176,469 819,747 1,039,012 477,322 434,526 141 434,385

Profit (loss) for the year Other comprehensive income (loss): Available-for-sale financial assets Cash flow hedges Actuarial loss on defined benefit liability Currency translation differences Share of actuarial loss of associates Other comprehensive income (loss) from jointly controlled entities and associates Other comprehensive lossfor the year, net of tax Total comprehensive income (loss) for the year Comprehensive income (loss) for the year attributable to: Equity holders of the Parent Company Non-controlling interest Total comprehensive income (loss) for the year

(3,474) (4,717) (94,056) (117,633) (11,887) 22,259 (209,508) (642,313)

(1,262) (38) (46,732) (32,311) (3,692) (20,200) (104,235) 1,177,884

(692,307) 49,994 (642,313)

1,123,631 54,253 1,177,884

78

79

LG Electronics Consolidated Statements of Changes in Equity

LG Electronics Consolidated Statements of Cash Flows

Years ended December 31, 2011 and 2010

(in millions of Korean Won)

Years ended December 31, 2011 and 2010

Attributable to equity holders of the Parent Company Paid-in Capital Retained Earnings 9,214,309
Accumulated Other Comprehensive Income (loss)

(in millions of Korean Won)

2011

2010

Other Components of Equity

NonTotal controlling Interest

Total Equity

Cash flows from operating activities Cash generated from operations Interest received Interest paid 2,240,468 74,412 (310,460) 84,859 (359,212) 1,730,067 490,119 67,972 (232,253) 76,301 (393,622) 8,517

Balance at January 1, 2010 Comprehensive Income Profit for the year Available-for-sale financial assets Cash flow hedges Actuarial gain on defined benefit liability Currency translation differences Share of actuarial loss of associates Other comprehensive expense of jointly controlled entities and associates Total comprehensive income Transactions with equity holders of the Parent Company Dividends Change in ownership interest over subsidiaries Changes in scope of subsidiaries Others Total transactions with equity holders of the Parent Company Balance at December 31, 2010 Balance at January 1, 2011 Comprehensive income Profit (loss) for the year Available-for-sale financial assets Cash flow hedges Actuarial loss on defined benefit liability Currency translation differences Share of actuarial loss of associates Other comprehensive income of jointly controlled entities and associates Total comprehensive income (loss) Transactions with equity holders of the Parent Company : Paid-in-Capital Dividends Change in ownership interest over subsidiaries Total transactions with equity holders of the Parent Company Balance at December 31, 2011

3,017,088

(156,886)

(270,333) 11,804,178

621,068 12,425,246

1,226,962 (46,681) (3,692) 1,176,589

(1,262) (38) (31,458) (20,200) (52,958)

1,226,962 (1,262) (38) (46,681) (31,458) (3,692) (20,200) 1,123,631

55,157 0 (51) (853) 54,253

1,282,119 (1,262) (38) (46,732) (32,311) (3,692) (20,200) 1,177,884

Dividends received Income tax paid Net cash generated from operating activities Cash flows from investing activities Decrease in financial deposits Decrease in loans and other receivables Proceeds from disposal of other financial assets Proceeds from disposal of property, plant and equipment Proceeds from disposal of intangible assets Proceeds from disposal of and recovery of investments in jointly controlled entities and associates Increase in cash and cash equivalents due to changes in scope of subsidiaries Decrease in other assets Increase in financial deposits Increase in loans and other receivables Acquisition of other financial assets Acquisition of property, plant and equipment Acquisition of intangible assets Acquisition of jointly controlled entities and associates

148,705 38,303 77,780 15,954 866 4,155 (77,352) (212,227) (91,989) (1,830,008) (319,850) (998) (205,254) (2,451,915)

195,835 221,406 98,081 321,739 2,618 210,336 798 9,375 (183,362) (144,137) (1,745,219) (287,549) (129,693) (239,632) (399) (1,669,803)

(282,725) (282,725)

(209,844) (209,844)

(957) 13 (944)

(282,725) (957) 13 (283,669)

(24,900) 4,833 (439,757) (459,824)

(307,625) 3,876 (439,757) 13 (743,493)

3,017,088 10,108,173 3,017,088 10,108,173

(271,277) 12,644,140 (271,277) 12,644,140

215,497 12,859,637 215,497 12,859,637

(469,624) (94,056) (11,887) (575,567)

(3,474) (4,717) (130,808) 22,259 (116,740)

(469,624) (3,474) (4,717) (94,056) (130,808) (11,887) 22,259 (692,307)

36,819 13,175 49,994

(432,805) (3,474) (4,717) (94,056) (117,633) (11,887) 22,259 (642,313)

Decrease in cash and cash equivalents due to changes in scope of subsidiaries Increase in other assets Net cash used in investing activities Cash flows from financing activities Proceeds from borrowings Issuance of ordinary shares Repayments of borrowings Dividends paid Net cash provided by financing activities Exchange losses on cash, cash equivalents

3,020,490 975,461 (2,792,295) (43,143) 1,160,513 (37,362) 401,303 1,944,162 2,345,465

3,276,962 1,301 (1,749,208) (308,292) 1,220,763 (39,102) (479,625) 2,423,787 1,944,162

975,260 975,260 3,992,348

(33,072) (33,072) 9,499,534

(326,584)

(62) (62)

975,260 (33,072) (62) 942,126

(11,381) 179 (11,202)

975,260 (44,453) 117 930,924

Net increase (decrease) in cash, cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year

(271,339) 12,893,959

254,289 13,148,248

80

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