2012 LGE Brochure

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.

LG Electronics 2012 _wish

01

USERS GUIDE

What is your

wish?



01

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

02 My wish 12 LG’s wish 14 Message from the CEO 18 Four Pilars of Core Strategy22 My wish + LG’s wish 24 Home Entertainment Company 30 Mobile Communications Company 36 Home Appliance Company 42 Air Conditioning & Energy Solution Company48 Wish + New Business 48 Solar Energy 50 Water Treatment52 We wish 54 Environment 56 Global Social Contributions 58 Sports Sponsorships 60 Marketing Campaign & Activity62 Leading the world in Innovation 64 Awards66 Fact & Figures76 Financial Statements

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



01

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.



01

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.

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 wish0302

More natural color and sound that let me feel the power all around me…an endless stream of entertainment…detail, detail, detail…

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

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

Cool but soft air that keeps me always feeling fresh and won’t wake me up at night… and worry-free maintenance with ultimate efficiency…

wishLG’s

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

1312

Innovation continues

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 first-

hand has been a key goal of mine since I’ve 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 today’s

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.”

“ I am excited to share with you that

many of our products have truly

captured the hearts and minds of

people around the world”

MESSAGE FROM THE CEO

1514

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 onboard—from R&D and design through quality and

marketing—execute 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 world’s 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.

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.

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 one’s 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.

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.

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

1716

Strong Fundamentals

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.

Product Leadership

There is nothing

more fundamental to consumer trust than

quality. LG’s 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 prize—and deliver—quality

above all.

1918

Preparation for the Future

No.1 Passion, No.1 Culture

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.

LG guarantees an

ethical workplace that is second to none. Our

people are our company. They don’t just make world-

leading products—they 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.

2120

Innovation that astounds us. Style that inspires us. And technology that is beneficial to our homes, our families—and our environment. It turns out that we’re both wishing for the very same things! Read on.

wishLG’s

wishMy

2322

2524

Mesmerizing. It’s LG. Our engineers set out not just to grant your

entertainment wishes—but to surpass them! With a line-

up of fully-immersive products that guarantee an eye-

popping reaction the first time you turn them on. And

that will keep you amazed for years to come.

HOME ENTERTAINMENT COMPANY

OLED TV (EM9600)

Wow.Wish for

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.

Pentouch TV (PM6900)

Smart TV just got smarter. Business, entertainment, education—

LG’s 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!

2726

OLED* TV (EM9600)

Get ready for THE ULTIMATE

DISPLAY with the world’s most

natural picture quality and advanced

design. 4 Color Pixel combined with

Color Refiner generates more photo-

realistic 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.

* OLED: Organic Light Emitting Diodes

* Magic Remote: The new remote control that works through Point and Click. It has additional functions including voice recognition and wheel.

� CES 2012 Innovations Awards and red dot Design Award

� red dot Design Award

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 LG’s

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!

* IPS: In-Plane Switching. An LCD technology that offers wide viewing angle

* SUPER+ Resolution: A technology that sharpens up blurry edges and enhances dim colors to make image more vivid and realistic

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 hair-

raising, heart-pounding sound.

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 that’s one smart upgrade!

Projector (CF3D)

Another LG innovation—and another advancement

in picture perfect reproduction. The versatile CF3D is

the world’s 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.

Ultrabook (Z330)

It’s 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.

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

sound. And more on-the-go portability.

LG offers a wide array of innovative

and stylish products—from OLED and

LCD TVs to home theater systems,

projectors and so much more.

No wonder LG is the industry

trendsetter for innovative home

entertainment. Bravo!

2928

* ANSI-lumens: A measurement of light that has been standardized by ANSI (American National Standards Institute). It is commonly used to rate the brightness of a data projector.

3130

MOBILE COMMUNICATIONS COMPANY

Blazing. It’s LG.LG’s latest range of smartphones puts full

control of today’s 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

Whoa.Wish for

LG Optimus 4X HD

The LG Optimus 4X HD proudly reinforces LG’s 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 NVIDIA’s 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.

LG Optimus True HD LTE*

The LG Optimus True HD LTE, the world’s 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.

LG Optimus Vu

The LG Optimus Vu brings productivity to whole new levels.

Equipped with LG’s 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 3D Max

The LG Optimus 3D Max is the latest incarnation of LG’s 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 LG’s prowess in 3D technology, the LG Optimus 3D Max not

only handles standard 3D content beautifully, it also offers 2D-to-

3D conversion with LG’s unique HRZ Engine.

3332

* LTE: Long Term Evolution. It is a standard for wireless communication of high-speed data for mobile phones and succeed 3G WCDMA/HSDPA/HSUPA (and also CDMA) technology.

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 LG’s

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.

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 screen’s multi-touch

brings a glimpse of the smartphone experience.

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-Style’s

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).

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

that take speed to a whole new level.

True HD IPS and 3D displays for

breathtaking images. And LG’s elegant

L-Style design that puts more elegance

in the palm of your hand.

3534

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.

3736

Intuitive. It’s LG.We heard your wish for convenience. And we’ve come up

with some very surprising ways to answer that call. In fact,

LG Home Appliance Company has a smarter, fresher and,

we’re proud to say, more stylish line-up of appliances than

any other company in the world. Wish, granted!

HOME APPLIANCE COMPANY

French Door Refrigerator

Wonderful.Wish for

Front Load Washing Machine

Wash more per load, and do fewer loads per day! With LG you get

the industry’s 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 fabrics—from heavy-duty towels to delicate hand-

washables. Wash. Rinse. Relax!

TrueSteam™ Dishwasher

Skip the soaking and scraping that ordinary dishwashers require.

LG’s 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, LG’s new

dishwasher takes care of fragile glassware as well as big pots and

pans in a single cycle.

Lightwave Convection and Grill

Crispy, tasty, tender dishes at the speed of light! LG’s 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.

3938

* Inverter Direct Drive: Doing away with its belt and pulley, LG’s 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)

French Door Refrigerator

Open the door to convenience! Our door-in-door feature puts an extra compartment inside the

main door—open 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 that’s out-of-the-box thinking!

KOMPRESSOR FOLLOW ME™

Cleaner. Faster. More hygienic. LG

KOMPRESSOR™, the world’s 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 home…now that’s LG smart!

Water Purifier

H2O. Simple. Pure. Nothing is better than clean

and clear water. And nothing gets household

water closer to perfect than LG’s CoreCare3™*

system. Along with a unique stainless steel

water tank and regular maintenance with eco-

friendly sterilization kit, your family will enjoy

water that is cleaner and safer—a very refreshing

thought, indeed.

HOM-BOT 2.0

LG’s 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, faster…and with you barely

having to lift a finger!

Long a global leader, LG Home

Appliance Company created the

world’s first smart home appliances.

Now, LG continues to set the pace and

bring even more insightful, energy-

saving technology into homes around

the world. Beginning with four core

technologies—Linear Compressor*,

Inverter Direct Drive, KOMPRESSOR™,

and Lightwave—we have refined our

line-up even further with Smart Saving

and Smart Convenience.

4140

* CoreCare3™: Three different core systems, one for 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.

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

Built-in Appliances

LG has put all of its industry-leading

innovation and design into the My

Signature Kitchen suite of built-

in 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.

4342

Vitalizing. It’s 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 Company’s

HVAC offerings redefine efficiency for the entire industry, while

bringing more peace, quiet, vitality and comfort to homes, offices

and buildings of every size.

AIR CONDITIONING & ENERGY SOLUTION COMPANY

Prestige Inverter V

* HVAC: Heating, Ventilating & Air Conditioning

Wish for

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-on-

demand even in high-rise buildings while affording surprisingly easy

installation. In fact, it’s the most advanced commercial air conditioner

to ever earn the industry’s official CarbonFree™ certification—another

important first from LG!

Hydro Kit

Floor heating, cooling and hot water supply

reach new levels of efficiency with LG’s 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.

4544

Mmmmm.

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.

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 LG’s 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.

* VRF: Variable Refrigerant Flow. A technology introduced as a system to minimize efficiency losses found in conventional HVAC systems and provide sustainable energy benefits.

LG Centrifugal Chiller

Now, even large size buildings

and industrial facilities can

take advantage of LG’s high-

performance 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 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

bulb’s 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, you’re 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!

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.

4746

LG LED PAR 16 7W

LG LED PAR 16 7W Lamp puts your home’s

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

well—the PAR 16 lasts up to 40 years even

when operated 2.7 hours a day! Longer life.

Less energy. Simply brilliant!

New Growth

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

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 today…and tomorrow

LG has committed all of it resources to building solar products that meet

today’s real-world needs. Our residential, commercial and utility-grade

modules are built with the industry’s most reliable materials to our unique

design specifications. They are then tested through an unprecedented

process of quality assurance—an 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 world’s first Carbonfree module

But don’t just take our word for it—LG’s 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 won’t harm our atmosphere—

it’s another way that LG is fulfilling the world’s wish for a cleaner, more

sustainable future.

LG has committed itself to leading the world in new ways to generate clean, sustainable energy to all communities…

SolarEnergy

Wish for sustainable solar energy

4948

Wish + New Business

* MonoX™: The brand name of LG’s high efficiency mono crystalline solar module

Growth

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.

Developing the most advanced nano technology

LG Electronics, by utilizing LG Group’s expertise in chemical, mechanical and

electronic technologies, has been at the forefront of efficient and eco-friendly

membrane development. By converging three core nano technologies—fine

patterning, resin formulation and resin mixing—we 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.

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 LG’s long-standing global reputation.

By working together, sharing knowledge, and staying true to our values, LG’s 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.

Water Treatment

Wish for clean water

5150

New * RoHS: The restriction of the use of certain hazardous substances in electrical and electronic

equipment adopted in February 2003 by the European Union

… And to providing pure, potable water that will supply the world’s needs well into the future.

We wish to maintain our hard-earned 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.

wishWe5352

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 far-

reaching green business ecosystem.

Recyclable packaging and products

We’re 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 take-

back 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.

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 we’re 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 they’re good for the

planet—but they will also be good

for our bottom line.

EN

VIR

ON

ME

NT

S

“Greenovation.” The fundamental wish for all innovation that LG includes sustainability as a core value. It’s a wish we’re 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 that’s a wish that we can all live with!

M

anaging risk

and exploiting opportunities through

Securing

future n

ew b

usin

ess

M

easu

ring r

isk

thro

ugh

incr

easing

climate change mitigation

reso

urc

e ef

fi cie

ncy

Rec

yclin

g R

esou

rces

Low Carbon Management G

reen Busin

ess

Green Partnership Greener P

rodu

cts

Life’s good, when you live green

business partners competitiv

enes

s

Sharing green growth with Strengthening

pro

duct

5554

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

LG Smart Grid* Showroom

* Energy Star: A joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy to protect the environment through energy efficient products and practices

* Smart Grid: A digitally enabled 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

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 couldn’t 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 Life’s 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!

An environment of learning

Welcome to the classroom of

the future! Life’s Green Class is

an innovative and highly mobile

classroom designed by LG, and

dedicated to lessons about the

environment through hands-

on 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.

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, we’re not just a global corporation—we are also concerned citizens of the world.

GLO

BA

L S

OC

IAL

CO

NT

RIB

UT

ION

Fulfilling the dream

5756

LG Hope Screen in Time Square, NYC, US

LG Hope Family in Cambodia

LG Smart TV Charitable App., WeFeedBack

LG Hope Village in Ethiopia

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. It’s 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.

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.

That’s 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.

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.

SP

OR

TS

SP

ON

SO

RS

HIP

S

Victory! It’s the one wish that every sports fan has in common. And it’s 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 we’re doubly honored to sponsor some of the world’s leading organizations.

Life’s exciting, when you win

5958

2011 Formula 1 Petronas Malaysia Grand Prix

ICC Cricket World Cup 2011 in India

Pit exit at the 2011 Formula 1 Petronas Malaysia Grand Prix

* ICC: International Cricket Council

* NCAA: The National Collegiate Athletic Association

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.

LG’s 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 LGE’s 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.

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 blogger’s 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.

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 first-

hand 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 aren’t the only ones who

got to experience the thrill. Cinema

Screen 3D TV is a video gamer’s

dream come true. LG is willing to take

center stage at major game festivals in

nine countries, and to be an exhibition

sponsor at Germany’s Gamescon in

August and Russia’s Igromir in October.

And we installed Cinema Screen 3D TV

in sports pubs for Euro Cup broadcasts

throughout Russia—and inspired fans to

cheer on their team like never before!

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 consumers—but to inspire them to enjoy life more.

MA

RK

ET

ING

CA

MP

AIG

N &

AC

TIV

ITY

Adding value to consumers’ lives

6160

LG World Record Campaign Emblem showcases the company’s product leadership

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

Cinema Screen TV marketing through a range of consumer experiences

* Techorator: It’s a mix of Technology & Decorator.

Design consultant who offers counseling of harmony between new electronic products and consumer’s house interior.

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 LG’s steady stream of world-leading innovation fulfills their fondest wishes for greater comfort, convenience, health and entertainment.

6362

Innov ationLeading the world in

red dot Design Award 2012

- Clothing Management

Cabinet


- Dishwasher (Honorable

Mention)


- French Door Refrigerator

(Honorable Mention)

2009 & 2010 New Excellent

Technology Award

- Multi V III


- European Bottom Freezer

Refrigerator


- 24-inch Front Loading

Washing Machine


- Lightwave Oven


- Canister Type Vacuum

Cleaner


- Robotic Vacuum Cleaner



iF Design Awards 2011

- Convection Oven

2012 CES Innovations Awards

- HOM-BOT 1.O



Refrigerator


- Sidy-by-Side Refrigerator


- Side-by-Side Refrigerator

(Material Award)


- 24-inch Front Loading

Washing Machine

NTT DoCoMo: LTE Partnership

Special Award

- Optimus True HD LTE

MWC 2012: Best Product

- Optimus 4X HD


- LG Revolution™

red dot and


- Optimus UI 2.0


- LG Wave™ Top-loading Laundry

Pair with a Full Color LCD Panel

Mobile Choice (UK Magazine):

Most Innovative Device

- Optimus 3D


- LG ULTRA Capacity

SteamWasher™


- Steam Dishwasher


- BH5320F


- PA70G


- Ultrabook (Z330)

2011 CTIA’s E-Tech Awards

- LG Revolution™

2011 CTIA’s E-Tech Awards

- LG Thrill 4G


- BH5320F2012 CES Innovations Awards

- LG DoublePlay™ (LG C729)

Guinness Record: World’s

First Dual-core Smartphone

- Optimus 2S


- LM9600


- LM8600


- PM9700


- Smart Upgrader (SP820)


- M4


- PM6900


- 55LM9600


- 55LM8600

6564

AWARDS

2012 Edison Awards

- LG CINEMA 3D

(Silver at Content Display Category)


- Titan™ Front Loading

Laundry Pair


- French Door Refrigerator with

Blast Chille (Best of Innovations)

6766

Equipment Investment

1,812R&D Investment

2,483

Total

4,295

Korea

35,284Overseas

56,173

Total

91,457

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.

COO

CTO

CFO

CHO

Business Support Officer

GMO

Smart Business Center

Corporate Design Center

Quality Center

Corporate Strategic Planning Division

Corporate Business Planning Division

Corporate Audit Division

•

Hom

e En

te

rtainment •

Mobile Communications • Hom

e Applian

ce • Air C

onditioning & Energy Solution •

As of 2011_ In Billions of Korean Won

Vice Chairman & CEO

ORGANIZATION SALES

EMPLOYEES INVESTMENT

2010

55,7542011

54,257

As of 2011_ In Billions of Korean Won

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

Japan 2%

Korea 14%

Europe 15%

North America 23%

China 5%

Central & South America 15%

CIS 6%India 5%

South East Asia 6%

Middle East & Africa 10%

Sales by Region

HE 44%

HA 20%

MC 22%

AE 8%

Others 6%

Sales by Company

LGERS Reynosa••LGESR Riaydh

•LGEYT Yantai

•LGESY Shenyang•LGEQH Qinhuangdao

•LGEND NanjingLGEPN Nanjing / •LGEKS Kunshan•LGEHN Hangzhou

•LGEMX Mexicali

•LGEMM Monterrey

•LGEMA Mlawa

•LGEQD Qingdao

•LGETR Taizhou• LGESH Shanghai

LGETA TianjinLGETL Tianjin / •

LGEHZ Huizhou •

LGEAT Istanbul •

•

•LGECH Beijing

LGESC Amstelveen

•LGESB Jeddah

•LGESK Nairobi

•LGEAO Luanda

•LGEAI Hunstville

LGEME Dubai

•

•LGERI Moscow

Easytec Lagos•

•LGERA Moscow

•LGEAK Almaty

•LGESA Johannesburg

•LGEEG Katameya

•LGEBR Taubate

•LGETH Bangkok

•LGEIN Jakarta

•LGEIL Pune

•LGEIL New Delhi

•LGETH Rayong

LGEQA Qingdao

•

LGEVN Hung Yen•

•LGSI Bangalore

•Triveni New Jersey•Zenith Chicago

•LGEMF Villepinte

LGERD Beijing•

LGEJLTokyo•

LGCRC Shanghai• LGEMR San Diego•

•LGEPS Panama City

•LGEAG Vienna

•LGECI Mississauga

•LGEMS Mexico City

•LGEMU San Diego

•LGEUS Englewood Cliffs

LGEAP Sydney

•LGEML Kuala Lumpur

•LGEPH Manila

•LGESL Singapore

•LGECZ Praha•LGEDG Duesseldorf•LGEFS Paris

•LGELV Riga

•LGENO Oslo•LGESW Stockholm

•LGERO Bucharest

•LGEPT Lisbon

•LGEPL Warsaw

•LGEIS Milano

•LGEHS Athens

•LGEES Madrid

LGEUK London•

•LGETT Taipei

•LGEUR Kiev

•LGEJP Tokyo

•LGETK Istanbul

•LGEMC Casablanca •LGELF Amman

•LGEAS Algiers •LGETU Tunis

•LGENI Lagos

•LGEAF DubaiLGEGF DubaiLGEDF Dubai

•LGEMI Miami

•Guatemala Guatemala City

•LGEPR Lima

•LGECL Santiago

•LGECB Bogota

•LGEAR Buenos Aires

LGEVZ Caracas•

LGEMK Budapest•

LGEHK Hong Kong•

LGEBN Amsterdam

•

•

GLOBAL OPERATIONS

� Marketing

� r & D

� Marketing & ProDuction

� Service

� otHerS

� ProDuction

AMERICA

LGEAI Lg electronics alabama, inc.LGECI Lg electronics canada, inc.LGEMR Lg electronics Mobile research. u.S.a., L.L.cLGEMS 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.cTriveni 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 gmbHLGEBN Lg electronics Benelux Sales BvLGECZ Lg electronics cZ, s.r.o.LGEDG Lg electronics Deutschland gmbHLGEES Lg electronics espana S.a.LGEFS Lg electronics France S.a.SLGEHS Lg electronics Hellas S.a.LGEIS Lg electronics italia S.p.a.LGEMA Lg electronics Mlawa Sp.z o.o.LGEMF Lg electronics Mobilecomm FranceLGEMK Lg electronics Magyar kFtLGEPL 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 aBLGENO Lg electronics norway aSLGEUK Lg electronics united kingdom Ltd.LGELV Lg electronics Latvia, L.L.c

MIDDLE EAST & AFRICA

LGEAF Lg electronics africa Logistic FZeLGENI Lg electronics nigeria Limited.LGEAT arcelik - Lg klima Sanayi ve ticaret a.S.LGEEG Lg electronics egypt S.a.e.LGEGF Lg electronics gulf FZeLGETU Lg electronics north africaLGEAS Lg electronics algeria SarLLGEDF Lg electronics Dubai FZeLGELF Lg electronics (Levant) JordanLGEMC 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.SEasytec 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 Lg electronics australia Pty, Ltd.LGEIL Lg electronics india Pvt. Ltd.LGEIN P.t.Lg electronics indonesiaLGEML Lg electronics (M) Sdn. BhdLGEPH Lg electronics Philippine, inc.LGESL Lg electronics Singapore Pte, Ltd.LGETH Lg electronics thailand co., Ltd.LGEVN Lg electronics vietnam co., Ltd.LGSI Lg Soft india Private Ltd.LGEJP Lg electronics Japan, inc.LGEJL Lg electronics Japan Lab, inc.

CHINA

LGERD Lg electronics (china) research and Development center co., Ltd.LGECH china Holding companyLGEHK Lg electronics Hk Ltd.LGEHN Lg electronics (Hangzhou) co., Ltd.LGEHZ Lg electronics Huizhou Ltd.LGEKS Lg electronics (kunshan) computer co., Ltd.

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 Lg electronics almaty kazakstanLGERA Lg electronics ruS., L.L.cLGEUR Lg electronics ukraine, inc.LGERI Lg alina electronics

6968

TOP MANAGEMENT

Bon-Joon KooVice Chairman & CEO /LG Electronics

Havis KwonPresident & CEO / Home Entertainment Company

Moon-Bum ShinExecutive Vice President & CEO / Home Appliance Company

Jong-Seok ParkExecutive Vice President & CEO / Mobile Communications Company

Hwan-Yong NhoPresident & CEO / Air Conditioning & Energy Solution Company

Woody NamPresident & CEO / China

Jong-Sik KimPresident / Chief Operating Officer

Chris YiSenior Vice President / Brazil

Ki-Wan KimExecutive Vice President / Global Marketing Officer

Stanley ChoExecutive Vice President & CEO / Europe

David JungExecutive Vice President / Chief Financial Officer

Weon-Dae KimSenior Vice President / Indonesia

Ju-U HanSenior Vice President / Quality Center

Sang-Gyu ChoiExecutive Vice President & CEO / Korea Marketing Company

Skott AhnPresident / Chief Technology Officer

Soon KwonSenior Vice President / India

Kun-Pyo LeeExecutive Vice President / Corporate Design Center

Wayne ParkExecutive Vice President / US

James ParkSenior Vice President & CEO / Middle East & Africa

Young-Ha LeePresident / Business Support Officer

Dae-Hyun SongExecutive Vice President / Russia

Ho-Geon HwangSenior Vice President / Chief Human Resources Officer

Board of Directors

Inside

Bon-Joon KooVice Chairman & CEO of LG Electronics / Director

David JungExecutive Vice President & CFO of LG Electronics / Director

Yu-Sig KangVice Chairman & CEO of LG Corp. / Director

Outside

Sang-Hee KimLawyer / Outside Director

Kyu-Min LeeAdvisor of SK Research Institute / Outside Director

In-Ki JooProfessor of Yonsei University / Outside Director

Chong-Nam ChuProfessor of Seoul National University / Outside Director

Audit Committee

In-Ki JooProfessor of Yonsei University / Outside Director

Sang-Hee KimLawyer / Outside Director

Kyu-Min LeeAdvisor of SK Research Institute / Outside Director

7170

7372

GLOBAL PRODUCTION NETWORK CORPORATE MILESTONES

1958• Established as GoldStar

1959• Produced Korea’s first radio

1962• Exported Korea’s first radios to the US and

Hong Kong

1965• Produced Korea’s first refrigerator

1966• Produced Korea’s first black and white TV

1968• Produced Korea’s first air conditioner

1969• Produced Korea’s first washing machine

1974• Listed on the Korea Stock Exchange

1977• Produced Korea’s first color TV

1978• Surpassed USD 100 million in exports, a

Korean industry first

1980• Established first EU sales subsidiary in

Germany (LGEWG)

1982• Established US color TV plant in Huntsville,

Alabama

1984• Surpassed KRW 1 trillion in sales for the first

time

1986• Established European VCR plant in Germany

1988• Established sales and joint venture production

subsidiaries in Thailand

1991• Established design technology center in

Ireland

1993• Established a production and sales subsidiary

in Huizhou, China (LGEHZ), beginning a full-scale advance into the Chinese market

1995• Renamed as LG Electronics• Acquired US-based Zenith Electronics

1997• Developed 40-inch Plasma TV and world’s

first DTV IC chipset• Established India production subsidiary

(LGEIL)

1998• Developed world’s first 60-inch Plasma TV

1999• Co-established LG.Philips LCD (currently LG

Display)

2000• Acquired operations of LG Information &

Communications• Launched world’s first Internet-enabled

refrigerator

2001• Commercialized asynchronous IMT-2000

communications equipment• Launched world’s first Internet-enabled

washing machine, air conditioner, and microwave oven

2002• Demerged into two companies to unlock

shareholder value: holding company LG Electronics Investment (LGEI) and operating company LG Electronics (LGE)

• Commercialized world’s first home network system

2003• Developed world’s first synchronous-

asynchronous IMT-2000 Mobile phone• Developed world’s first 76-inch Plasma TV• Launched world’s first DVD rewriter compatible

with all CD and DVD standards• Led US CDMA mobile phone market for the

first time

2004• Received approval for E-VSB as the next

generation ATSC DTV transmission standard• Launched world’s first 55-inch LCD TV• Commercialized world’s first 71-inch Plasma

TV• Developed world’s 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 world’s first notebook with T-DMB

reception• Launched LG Chocolate, the first phone in the

Black Label Series• Developed world’s 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• Launched LG Shine, the second handset in

the Black Label Series• Launched steam washing machine and

interactive TV refrigerator• Developed world’s first 100-inch LCD TV• Launched world’s first full HD (1080p) 102-

inch Plasma TV• Developed world’s first dual-format high-

definition disc player and drive

2007• Launched BH100 Super Blu, the world’s 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

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 world’s first Bluetooth headset

combined mobile phone• Unveiled the world’s first Blu-ray network

storage• Held international environment conference

with UN• Developed the world’s first LTE mobile modem

chip• Recorded over 100 million units of LG air

conditioners in accumulated sales

2009• Became 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• Unveiled world’s first and fastest dual-core

smartphone, LG Optimus 2X• Unveiled world’s first full LED 3D TV• Unveiled the new E90 monitor, the company’s

slimmest LED monitor to date at just 7.2 mm in depth

• Unveiled the company’s first ever Real 3D Sound Home Theater System

• Unveiled its latest, groundbreaking creations: the BIGIN, a largest-in-class washing machine with LG’s proprietary 6 Motion Direct Drive; the iPRO, the largest, most energy efficient refrigerator in its class; the world’s first solar Lightwave oven and the world’s first KOMPRESSOR™ vacuum cleaner

2011• Launched 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 world’s 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™, LG’s first 4G smartphone followed by Optimus LTE, the company’s best-selling 4G smartphone to date.

Region CountRy City SubSidiaRy PRoduCt

North,South& ceNtralamerica

Mexico Mexicali lGemX LCD TV, Monitor

Mexico Reynosa lGerS LCD TV, PDP TV, CRT TV, PDP Module

Brazil Manaus lGeaZ TV, DVD, Audio, Car Audio, Microwave Oven, Air Conditioner

Mexico Monterey lGemm Refrigerator, Oven

Brazil Taubate lGeSP Monitor, Mobile Phone, Laptop, Washing Machine

euroPe Poland Mlawa lGema TV, Monitor

Poland Wroclaw lGeWr Refrigerator, TV

middle eaSt& africa

Egypt Ismailia lGeeG CRT TV, FPD

Turkey Istanbul lGeat Air Conditioner

Saudi Arabia Riaydh lGeSr Air Conditioner

South Africa Johannesburg lGeSa LCD TV, PDP TV, Monitor

aSia India Noida lGeil CRT TV, LCD TV, PDP TV, Monitor, Refrigerator, Air Conditioner, Washing Machine, Compressor, Optical Storage, Mobile PhonePune

Thailand Rayong lGeth Washing Machine, Air Conditioner, Compressor

Vietnam Hung Yen lGeVN TV, Monitor, Mobile Phone, Air Conditioner, Washing Machine

Hai Phong Refrigerator, Microwave Oven, Vacuum Cleaner

Indonesia Bekasi lGeiN LCD Monitor, LCD TV, PDP TV, CRT TV, VCR, DVD-P, VCR, COMBI, REC COMBI, DVD-P, DVD-R, BD-P, BD-Home Theater, DVD-Home Theater, Audio, RefrigeratorTanggerang

chiNa China Taizhou lGetr Refrigerator, Compressor

China Huizhou lGehZ Media, Optical Storage

China Nanjing lGeNd Monitor, LCD TV, PDP TV

China Nanjing lGePN Washing Machine, Motor

China Qinhuangdao lGeQh Casting

China Shanghai lGeSh Security Camera

China Shenyang lGeSY CRT TV

China Tianjin lGeta Microwave Oven, Air Conditioner, Vacuum Cleaner, Compressor, MGT

China Yantai lGeYt Mobile Phone

China Kunshan lGeKS Telematics, Audio

China Hangzhou lGehN Video Cassette Tape, USB, HDD, Prism Sheet

China Qingdao lGeQd Mobile Phone

China Qingdao lGeQa Chiller

ciS Kazakhstan Almaty lGeaK TV, Washing Machine

Russia Ruja lGera TV, Monitor, Refrigerator, Washing Machine

* As of December 31, 2011

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 Group’s 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 Group’s consolidated total assets as of December 31, 2011 and 2010, respectively,

and 57% and 56% of the Group’s 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.

Report of Independent Auditors

7574

75 Report of Independent Auditors

76 LG Electronics Consolidated Statements of Financial Position

78 LG Electronics Consolidated Statements of Operations

79 LG Electronics Consolidated Statements of Comprehensive Income

80 LG Electronics Consolidated Statements of Changes in Equity

81 LG Electronics Consolidated Statements of Cash Flows

FINANCIAL STATEMENTS

December 31, 2011 and 2010 December 31, 2011 and 2010

LG Electronics Consolidated Statements of Financial Position LG Electronics Consolidated Statements of Financial Position

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

Assets

Current assets

Cash and cash equivalents 2,345,465 1,944,162

Financial deposits 150,000 85,000

Trade receivables 6,752,559 7,001,962

Loans and other receivables 494,239 525,046

Other financial assets 1,677 1,814

Inventories 4,947,160 5,872,420

Current income tax assets 197,968 154,286

Other current assets 890,388 924,813

Assets classified as held for sale 3,670 5,030

15,783,126 16,514,533

Non-Current Assets

Financial deposits 129,439 105,479

Loans and other receivables 610,709 543,562

Other financial assets 139,282 105,601

Property, plant and equipment 7,290,413 6,500,484

Intangible assets 1,035,797 763,382

Deferred income tax assets 1,246,071 968,751

Investments in jointly controlled entities and associates 5,603,199 6,008,145

Investment property 7,239 7,295

Other non-current assets 813,182 801,267

16,875,331 15,803,966

Total assets 32,658,457 32,318,499

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

Liabilities

Current liabilities

Trade payables 5,486,871 5,824,392

Borrowings 3,178,212 4,009,229

Other payables 3,780,158 3,730,292

Other financial liabilities 13,860 5,314

Current income tax liabilities 81,643 98,659

Provisions 724,516 748,146

Other current liabilities 949,262 901,201

14,214,522 15,317,233

Non-current liabilities

Borrowings 4,257,406 3,183,706

Other payables 20,490 11,597

Other financial liabilities 378 37,492

Deferred income tax liabilities 15,237 10,253

Defined benefit liability 423,306 318,112

Provisions 575,632 577,697

Other non-current liabilities 3,238 2,772

5,295,687 4,141,629

Total liabilities 19,510,209 19,458,862

Equity attributable to owners of the Parent Company

Paid-in capital:

Capital stock 904,169 809,169

Share premium 3,088,179 2,207,919

Retained earnings 9,499,534 10,108,173

Accumulated other comprehensive loss (326,584) (209,844)

Other components of equity (271,339) (271,277)

12,893,959 12,644,140

Non-controlling interest 254,289 215,497

Total equity 13,148,248 12,859,637

Total liabilities and equity 32,658,457 32,318,499

7776

Years ended December 31, 2011 and 2010 Years ended December 31, 2011 and 2010

LG Electronics Consolidated Statements of Operations LG Electronics Consolidated Statements of Comprehensive Income

(in millions of Korean Won, except per share amounts) 2011 2010

Continuing operations

Net sales 54,256,585 55,753,804

Cost of sales 42,057,595 43,453,096

Gross profit 12,198,990 12,300,708

Selling and marketing expenses 7,201,413 7,534,431

Administrative expenses 1,359,986 1,402,203

Research and development expenses 1,698,917 1,500,792

Service costs 1,595,453 1,775,128

Other operating income 1,622,901 2,009,968

Other operating expenses 1,685,859 1,921,653

Operating income 280,263 176,469

Financial income 574,148 819,747

Financial expenses 922,666 1,039,012

Income (expense) from jointly controlled entities and associates (331,058) 477,322

Profit (loss) before income tax (399,313) 434,526

Income tax expense 33,492 141

Profit (loss) from continuing operations (432,805) 434,385

Discontinued operations

Profit from discontinued operations - 847,734

Profit (loss) for the year (432,805) 1,282,119

Profit (loss) for the year attributable to:

Equity holders of the Parent Company (469,624) 1,226,962

Profit (loss) for the year from continuing operations (469,624) 393,713

Profit for the year from discontinued operations - 833,249


Profit for the year from continuing operations 36,819 40,672

Profit for the year from discontinued operations - 14,485

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 (2,880) 7,419

Earnings (loss) per share for profit from continuing operations (2,880) 2,381

Earnings per share for profit from discontinued operations - 5,038

Earnings (loss) per share for profit attributable tothe preferred equity holders of the company (2,563) 7,662

Earnings (loss) per share for profit from continuing operations (2,563) 2,459

Earnings per share for profit from discontinued operations - 5,203

(in millions of Korean Won) 2011 2010

Profit (loss) for the year (432,805) 1,282,119

Other comprehensive income (loss):

Available-for-sale financial assets (3,474) (1,262)

Cash flow hedges (4,717) (38)

Actuarial loss on defined benefit liability (94,056) (46,732)

Currency translation differences (117,633) (32,311)

Share of actuarial loss of associates (11,887) (3,692)

Other comprehensive income (loss) from jointly controlledentities and associates 22,259 (20,200)

Other comprehensive lossfor the year, net of tax (209,508) (104,235)

Total comprehensive income (loss) for the year (642,313) 1,177,884

Comprehensive income (loss) for the year attributable to:

Equity holders of the Parent Company (692,307) 1,123,631


Total comprehensive income (loss) for the year (642,313) 1,177,884

7978

Years ended December 31, 2011 and 2010 Years ended December 31, 2011 and 2010

LG Electronics Consolidated Statements of Changes in Equity LG Electronics Consolidated Statements of Cash Flows

(in millions of Korean Won) Attributable to equity holders of the Parent Company

Paid-in Capital

RetainedEarnings

Accumulated Other

Comprehensive Income (loss)

OtherComponents

of EquityTotal

Non-controlling

Interest

Total Equity

Balance at January 1, 2010 3,017,088 9,214,309 (156,886) (270,333) 11,804,178 621,068 12,425,246

Comprehensive Income

Profit for the year - 1,226,962 - - 1,226,962 55,157 1,282,119

Available-for-sale financial assets - - (1,262) - (1,262) 0 (1,262)

Cash flow hedges - - (38) - (38) - (38)

Actuarial gain on defined benefit liability - (46,681) - - (46,681) (51) (46,732)

Currency translation differences - - (31,458) - (31,458) (853) (32,311)

Share of actuarial loss of associates - (3,692) - - (3,692) - (3,692)

Other comprehensive expense of jointly controlled entities and associates - - (20,200) - (20,200) - (20,200)

Total comprehensive income - 1,176,589 (52,958) - 1,123,631 54,253 1,177,884

Transactions with equity holders of the Parent Company

Dividends - (282,725) - - (282,725) (24,900) (307,625)

Change in ownership interest over subsidiaries - - - (957) (957) 4,833 3,876

Changes in scope of subsidiaries - - - - - (439,757) (439,757)

Others - - - 13 13 - 13

Total transactions with equity holders of the Parent Company - (282,725) - (944) (283,669) (459,824) (743,493)

Balance at December 31, 2010 3,017,088 10,108,173 (209,844) (271,277) 12,644,140 215,497 12,859,637

Balance at January 1, 2011 3,017,088 10,108,173 (209,844) (271,277) 12,644,140 215,497 12,859,637

Comprehensive income

Profit (loss) for the year - (469,624) - - (469,624) 36,819 (432,805)

Available-for-sale financial assets - - (3,474) - (3,474) - (3,474)

Cash flow hedges - - (4,717) - (4,717) - (4,717)

Actuarial loss on defined benefit liability - (94,056) - - (94,056) - (94,056)

Currency translation differences - - (130,808) - (130,808) 13,175 (117,633)

Share of actuarial loss of associates - (11,887) - - (11,887) - (11,887)

Other comprehensive income ofjointly controlled entities and associates - - 22,259 - 22,259 - 22,259

Total comprehensive income (loss) - (575,567) (116,740) - (692,307) 49,994 (642,313)

Transactions with equity holders of the Parent Company :

Paid-in-Capital 975,260 - - - 975,260 - 975,260

Dividends - (33,072) - - (33,072) (11,381) (44,453)

Change in ownership interest over subsidiaries - - - (62) (62) 179 117

Total transactions with equity holders of the Parent Company 975,260 (33,072) - (62) 942,126 (11,202) 930,924

Balance at December 31, 2011 3,992,348 9,499,534 (326,584) (271,339) 12,893,959 254,289 13,148,248

(in millions of Korean Won) 2011 2010

Cash flows from operating activities

Cash generated from operations 2,240,468 490,119

Interest received 74,412 67,972

Interest paid (310,460) (232,253)

Dividends received 84,859 76,301

Income tax paid (359,212) (393,622)

Net cash generated from operating activities 1,730,067 8,517

Cash flows from investing activities

Decrease in financial deposits - 195,835

Decrease in loans and other receivables 148,705 221,406

Proceeds from disposal of other financial assets 38,303 98,081

Proceeds from disposal of property, plant and equipment 77,780 321,739

Proceeds from disposal of intangible assets 15,954 2,618

Proceeds from disposal of and recovery of investments in jointly controlledentities and associates 866 210,336

Increase in cash and cash equivalents due to changes in scope of subsidiaries - 798

Decrease in other assets 4,155 9,375

Increase in financial deposits (77,352) -

Increase in loans and other receivables (212,227) (183,362)

Acquisition of other financial assets (91,989) (144,137)

Acquisition of property, plant and equipment (1,830,008) (1,745,219)

Acquisition of intangible assets (319,850) (287,549)

Acquisition of jointly controlled entities and associates (998) (129,693)

Decrease in cash and cash equivalents due to changes in scope of subsidiaries (205,254) (239,632)

Increase in other assets - (399)

Net cash used in investing activities (2,451,915) (1,669,803)

Cash flows from financing activities

Proceeds from borrowings 3,020,490 3,276,962

Issuance of ordinary shares 975,461 1,301

Repayments of borrowings (2,792,295) (1,749,208)

Dividends paid (43,143) (308,292)

Net cash provided by financing activities 1,160,513 1,220,763

Exchange losses on cash, cash equivalents (37,362) (39,102)

Net increase (decrease) in cash, cash equivalents 401,303 (479,625)

Cash and cash equivalents at the beginning of year 1,944,162 2,423,787

Cash and cash equivalents at the end of year 2,345,465 1,944,162

8180

Thank you for spending time with us. And for seeing how LG’s world-leading innovation answers your family’s ( ) for supreme comfort, unprecedented convenience…and 100% eye-popping, jaw-dropping, mind-blowing entertainment. And be assured we’re not stopping here. As long as you keep wishing, we’ll keep working. And finding new ways to make life better for all!

wish LG Twin Towers 20, Yeouido-dong, Yeongdeungpo-gu, Seoul, 150-721, Korea | Tel +82 2 3777 1114 | www.lg.com

Pro

duce

d b

y H

S A

d

|

C

reat

ed

by

inca

com

munic

atio

ns

+

desi

gnco

mp

any

co.,

ltd

.

Documents

2012 LGE Brochure