LG U+ Makes Your Life Better Core Value

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LG U+ Makes Your Life Better Core Value Changing Your Life 01 LG U+ Makes Your Life Better Core Value Our transformations always began with our customers. At LG U+, we focus on making your lives more convenient and your time more valuable. LG U+ stands at the forefront of the telecommunication industry. We launched the world’s first commercial 5G network, and we are exporting 5G content including cutting-edge AR/VR services and solutions to customers around the globe. Experience the next level, life-changing 5G services that only LG U+ can provide. Feel the difference, share your experiences and soon you will find yourself a lifelong fan of LG U+. LG U+ makes your life better. 02 WHO WE ARE About LG U+ At a Glance 2020 Network Roadmap Financial Highlights 2020 1 We deliver communication and media services that add value to our customer’s lives About LG U+ LG U+ leverages LG Group’s networks and capabilities to provide life-changing services for our customers. Experience next-level mobile, home and enterprise services with our superlative network quality. Mobile Home Enterprise 5G, LTE, content service U+ tv (IPTV), U+ Internet, Enterprise solutions, (media, music, U+ Smart Home (AI/IoT) IDC, business AR, VR, etc.) phone services A·in | CS LEADER LG HelloVision mediaLog DACOM Crossing Key Subsidiaries CS ONE Partner Total 9 subsidiaries Cable Network TV MVNO & Media Korean NSP & International Customer Center & Broadband Line Telemarketing Operation Telecomm & Electronics (14 co.) Services (29 co.) Chemicals (20 co.) LG Electronics LG U+ LG Chem LG Display LG CNS LG Household & Health Care LG Innotek LG International LG Hausys LG Sports 04 We lead the market through outstanding technology and extensive know-how At a Glance 2020 LG U+ became the first Korean telecommunications operator to export $22 million in 5G content and solutions. Our acquisition of LG HelloVision further bolstered our media business portfolio as we continue to deliver top content and win customer trust. 5G Global World's 1st commercial 5G service 5G AR/VR content and solutions World’s 1st 5G content alliance Leadership No.1 in 5G Speed $22M in Exports Global XR Content & Availability We signed export contracts and strategic Telco Alliance + agreements with telcos in North America, + LG U was ranked first among global China, Japan, Hong Kong, Taiwan LG U chairs the alliance to drive XR content mobile operators and more countries and service development (RootMetrics, 5G Performance Test / Oct. 2020) * in Seoul, New York, London and Zurich Oct. 2020 2020 U+ tv Core Service Business + Performance Over 16M Mobile Highest Net Increase U Kids Ranked No.1 Subscribers in Mobile, Internet and in Customer Satisfaction IPTV Subscribers for 4 Consecutive Years Business No. 1 Cable TV Dec. 2020 CSR Nominated as the leading telco in “Carbon Management UN75 Growth Acquisition of Demoed World’s 1st Sector Honors” Partner LG HelloVision 5G Autonomous 6 Consecutive We partnered with UN75 With our newest acquisition, Parking to contribute to social LG U+ further strengthened Years change our media business Team LG Synergy was founded Hello to accelerate our entry portfolio Vision into the mobility industry 05 We launched the world’s first 5G network and have consistently provided high-quality services Network Roadmap LG U+ demonstrated the world’s first 5G service in December, 2018 and launched the world’s first commercial 5G service in April, 2019. We plan to deploy a nation-wide 5G network with 3.5GHz and commercialize mmWave and 5G SA. Evolution of Mobile Network 2011 > 2012 > 2014 > 2015 > 2017 > 2018 > 2019 > 2020 Acquired 5G Apr. 2019 Tested 5G Spectrum Bands Launched Pilot Service (3.5GHz&28GHz) the World’s 1st in mmWave Commercial (28GHz) 5G Mobile Dec. 2018 Service Completed 5G Demonstrated SA Network Test the World’s 1st 5G Service Deployed Launched Commercialized 2.1GHz U+ Pro Baseball the World’s 1st Commercial NB-IoT Network LTE 2.6GHz 3-bands CA LTE-A Service & 4.5G Service 850MHz U+ Golf Commercial 28GHz + Network 5G U Idol Live 3.5GHz U+ AR Launched Rolled out U+ VR Commercial the World’s 1st LTE Service Nation-wide LTE Network 06 We focused on core strengths and enhanced efficiency to achieve strong financial performance Financial Highlights 2020 LG U+ ranked first in revenue growth rate among all Korean telcos in 2020. With the growth of the 5G and IPTV businesses, operating income increased by 29.1% year-over-year. Revenue (unit: USD) Operating Income (unit: USD) $11.4B +8.4% $12.3B $0.6B +29.1% $0.8B 2019 2020 2019 2020 * Service Revenue: $9.7B (Mobile 58.8%, Smart Home 21.7%, Enterprise 14.6%, Telephony 4.9%) | Subscribers by Service Mobile IPTV Internet 16.7M 4.9M 4.5M (+9.2% YoY) (+10.4% YoY) (+5.7% YoY) 07 WHAT WE DO Mobile Home Enterprise 2 Mobile The world’s first Global XR Content Telco Alliance was formed under the leadership of LG U+, another powerful step in our commitment to creating innovative and immersive media content. Mobile Key Mobile Services Cloud Media Sports Music AR/VR Gaming Edu / Life Roaming U+ Mobile tv U+ Pro Baseball U+ Idol Live U+ AR GeForce Now U+ Kids Unlimited data in more Netflix U+ Golf Genie Music U+ VR U+ Kids AR Library than 200 countries YouTube Premium Smart Home Workout (Music streaming) U+ AR Shopping U+ Elementary World 5G Services Transforming your life with 5G Multi-View Immersive Cloud Cloud Sports AR/VR Watch the games from any angle you want Experience high resolution image and AR gaming Enjoy AAA titles anytime, anywhere across characters in 360 ° mobile, PC and TV U+ Pro Baseball View by position U+ AR Create dance videos with AR characters GeForce Now Cloud gaming service Edu / Education Life Most popular educational content for elementary students Diverse educational content including content from the Educational Broadcasting System, English books, newspapers, math learning program and U+ Children's U+ Golf Exclusive broadcast of top pro golfers U+ VR "Cirque du Soleil", Webcomic, VR travel U+ Elementary World Live Library 10 Multi-View Mobile 5G Mobile Services at a Glance Immersive Cloud U+ Pro Baseball U+ AR Smart Home Workout •View by position •Touch and rotate •Get coaching from •Rotate the AR characters an AI fitness trainer batting moment in 360° •Work out from home with the Time •Shoot dance with a variety of Slice feature videos with AR programs •Zoom in & out artists •Do workout challenges in 4K •‘AI meal plan feature’ that counts calories when you take a photo of a meal U+ Golf U+ VR GeForce Now •Swipe the swing •Enjoy 3D VR •Experience over moment with the K-POP 400 top-rated and Time Slice feature performances latest games •Enjoy exclusive •Watch premium broadcast of KLPGA VR content: tournaments Star Date, Cirque •Watch lessons by du Soleil, etc. level + + U+ Idol Live U AR Shopping U Kids AR Library •Watch exclusive •Automatically •Read English K-pop content recognize product books from leading in 4K info during live TV global publishers - VR videos home shopping - 3D AR books - Close-up videos broadcasts - Game activities by member •Check product details through 3D AR 11 Mobile Financial Performance Mobile Service Revenue (unit: USD) Mobile Subscribers 5G Subscribers * Excluding interconnection, applying IFRS15 from 2018 * Compared to handset subscribers $5.1B 16.7M 15.3M 2020 14.1M $4.8B 24.3% $4.7B +5.8% +9.2% 5G 4G, etc. +2.1% +8.0% 2021E 40% 2018 2019 2020 2018 2019 2020 5G 4G, etc. Mobile Market Share 21.3% 22.1% 23.6% 2018 2019 2020 12 Home LG U+ has become a trusted brand in home services with outstanding media services from education for children to entertainment for all ages. Entertainment & Edutainment Fast & Reliable Internet Voice and Touch Control U+ tv (IPTV) U+ Internet U+ Smart Home (AI/IoT) Home Key Home Services U+ tv U+ Internet Entertainment & Edutainment with IPTV Service Fast & Reliable Internet For kindergarten and elementary students For all ages Internet service with speeds up to 10Gbps Ranked No. 1 in Customer Satisfaction to stream the latest and biggest content Kids for 4 Consecutive Years without interruption Korea’s first tailored edutainment service Stream movies and TV shows on the big screen with U+ tv U+ Smart Home •English Kindergarten Voice and Touch Control Effective English home schooling program developed together with a professional English academic institution + Exclusive Insurance (Chung Dahm Learning) •Book Narration on TV Over 600 award-winning and best-selling children’s books, narrated by professional storytellers •PlayPen (U+ Pen) Dedicated U+ Kids remote control for •Pet Care keeps your pets safe at home interactive video-book learning and indoor •Home Keeper protects your home from physical activities break-ins and thefts with exclusive insurance coverage 14 U+ Kids× Home Home Services at a Glance Chung Dahm Learning U+ Kids 4.0 + U Kids×English egg× - Effective English home Finden×ORT× schooling program Highlights×YBM ECC - Dedicated U+ Kids + + U tv×Netflix U Kids 3.0 remote control for Partnership with Netflix Personalized educational interactive video-book Home IoT×Naver Netflix available on content based on learning and indoor U+ My Home mobile and TV assessment tests and physical activities AI Speaker AI-based evaluations Home IoT devices connected with Naver U+ Kids×Woongjin U+ tv Free 2 CLOVA Clock+ AI platform Book Club TV Korea’s first portable - LED clock and home U+ Kids 2.0 IPTV with enhanced IoT AI remote control + + U ×HBO U Kids×YouTube - New AR play platform audio quality in a single device Korea’s first exclusive KIDS “Life Experience - New way to experience HBO package U+ Kids 1.0 Learning” and AI an AI speaker - Educational content language study - All-in-one control of IR TV, Set Top Box, World’s 1st UHD IPTV First home IoT in the developed by “Papago Foreign professional child Language Play” air purifier and AC Quad core processing world with over 1 million educators U+ tv Google for images 4x clearer subscribers × - YouTube KIDS ‘U+ tv G’, the world's than full HD available on U+ tv first IPTV+Google service U+ Kids: LG U+'s Core Education Service Built-in searching No.1 in customer satisfaction service for Google App.
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