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. for 4 consecutive years and IPTV channel No.1 reason customers choose U+ tv AI-based interactive edutainment content Strategic partnerships with renowned publishers and academic institutions
2012 2014 2015 2017 2018 2019 2020
15 Home Financial Performance
Home Service Revenue (unit: USD) U+ tv (IPTV) Subscribers U+ Internet Subscribers IPTV+Internet * Based on no. of set top boxes * IFRS15 standards applied from 2018 4.9M 4.5M $1.8B 4.5M 4.0M 4.3M 4.0M $1.6B $1.7B +9.9% +10.9% +10.4% +5.7% +6.1% +11.4%
2018 2019 2020 2018 2019 2020 2018 2019 2020
Pay-TV Market Share
24.5% 24.9% 25.1% 2018 2019 2020
16 Enterprise LG U+ provides smart solutions for businesses in rapidly changing environments by leveraging 5G, industrial IoT and AI technologies. As the frontrunner in the 5G market, we continue to deliver services that can take your business capabilities to the next level. Enterprise Key Enterprise Services
5G Service SOHO Data Security Smart Work
5G enterprise services with •U+ My Shop Package •U+ Internet •Integrated Security Solution •Online File Storage enhanced security features Total solution package for •Wireless Internet •U+ Cloud Security •Biz Market + managing and promoting •U tv (Enterprise IPTV) •U+ Cloud PC (Integrated platform) •5G Network businesses and offices at •Enterprise Line Seamless and secure access to •Collaboration + •C-ITS discounted rates •IDC a workplace desktop anywhere, - U Video Conference •Smart Drone •SOHO Security 12 IDCs across Korea including anytime and on any device Real-time video conferencing •Smart Factory Asia's largest IDC ‘LG U+ service with up to 1,000 users •Remote Operation Pyeongchon Mega Center’ •Administrative Support •Smart Surveillance Camera Communication - U+ Time Management •U+ Drive Employee attendance (Voice control navigation) management solution 5G Innovation Lab U+ Our Company Package • •Voice-call • All-in-one package of enterprise •U+ VoIP products and solutions with •Prefix # 050/080/060 attractive pricing •Mobile
Payment / Facility / Marketing / IoT Finance Security Customer Management
•Payment and Financial •Smart Sensor •Messaging •Industrial IoT Management •Video Solution •Customer Center •Smart Emergency Vehicle •Energy & Power •Location-based Marketing Priority Signal System Service •U+ IoT Apartments
18 Enterprise 5G Services
Connected Car Smart City AI-based voice control system for vehicle •Selected as SPC for Sejong National Pilot Smart City (Zone 5-1) infotainment services including AVN (Audio, video and navigation) •LG U+, SsangYong Motors and Naver Smart Factory co-developed and launched “Infoconn”, Efficient safety/environment/energy a connected car system •U+ Drive will be embedded in Toyota & Lexus management solutions by leveraging IoT vehicles (2022) and AI technology across the entire production process Smart Drone • Deployed smart factory services for 35 LG Auto flight with real-time monitoring, factories and 70 other production facilities video recording and data transmission via cloud-based control system without C-ITS/Autonomous Driving distance and location limitations Accident prevention and traffic management •Patrol drone service for provincial governments solution with real-time traffic information & public organizations (Gyeongbuk provincial 5G B2B Businesses government, Wando district office, etc) • Developed autonomous driving big data control station and platform for the City of Sejong • LG U+ selected as operator for autonomous Remote Operation mobility project of Korea Ministry of Land, Video transmission solution enabling Infrastructure and Transport remote operation of on-site construction equipment that are hundreds of kilometers 5G Innovation Lab away from the control station Discovering promising startups and •Demo’ed remote operation of excavator with exploring new 5G use cases Doosan Infracore at BAUMA2019 and BAUMA2020 • Demo’ed remote operation of excavator with Volvo • Innovation Lab provides personnel and • Demo’ed Air quality monitoring robot in Jeonju City equipment support including 5G networks, • Demo’ed remote operation of container crane with infrastructures, devices and platforms for Seoho Electric 5G ecosystem development and testing
19 Enterprise Financial Performance
Enterprise Service Revenue (unit: USD) IDC Revenue (unit: USD) * IFRS15 standard applied from 2018 IDC Share of Enterprise Revenue
Continuous profitable growth in 12 IDCs across Korea including Asia’s largest IDC ‘LG U+ Pyeongchon $1.3B Mega Center’ $210M $1.2B $1.2B $180M +3.5% $150M +16.1% +3.0% +20.7% 16.8%
10.0% 8.1%
2018 2019 2020 2018 2019 2020
2020 52.9% 30.3% 16.8% Revenue Breakdown Enterprise Line Solution IDC
20 HOW WE DO
Interactive Store
Global Activity
Strategic Partnership
3 We combine the customer experience with culture to deliver unique satisfaction Interactive Store Hands-on experience zones and unique exhibitions enable engagement with our customers. With increasing demand for online purchase, we are providing new channels to shop at LG U+.
TEUM
Multi complex First Unmanned Store cultural space at ‘U+ Un-tact Store’ Gangnamdaero 426 New contactless sales channel
U+ 5G Playground at Eulji Medical Center 5G AR/VR experience zone
Bundang Flagship Store Pet care specialty store (First such service by a Korean telco)
22 Our innovative 5G services span the globe to deliver value to our partners and customers Global Activity We work together with global companies in North America, Asia and Europe to invest in content and technologies. LG U+ will develop new 5G services and content through continuous innovation.
5G AR/VR Content & Solution Exports Thailand $22M
5G Consulting & Benchmarking $50M 30 telcos
5G Consulting & Benchmarking 5G AR/VR Content & Solution Exports LG U+ FUND
• LG U+ provides consulting and benchmarking • LG U+ reached $22 million in AR/VR service exports • LG U+ manages $50 million investment fund services to 30 world-leading telcos • We formed the world’s first 5G content alliance • We invested in six US startups (8i, 4D Replay, • We provide insights to numerous telcos ‘Global XR Content Telco Alliance’ Spatial, Amaze VR, Eyecandylab, DataFleets) around the world by sharing the success • We signed export contracts and strategic partnership • We partnered with Google for joint content stories of our 5G journey agreements with telcos in the North Americas, China, funding for VR in 2019 and AR in 2020 Japan, Hong Kong and Taiwan and more countries 23 We work with great partners to create great services for our customers Strategic Partnership LG U+ partners with the top companies in each industry to bring the highest level of service to our customers.
Team LG Customer-centric Partnership We create synergy with LG Group We partner with industry frontrunners companies through the Team LG Strategy
LG creates synergy with LG Group Strategic partnerships with leading companies manufacturing companies, including in content, technologies and services deploying smart factory services for 35 LG factories and 70 other production facilities
24 LG U+ LG U+ Building, 32 Hangang-daero, Yongsan-gu, Seoul, Korea +82-1544-0010 | www.uplus.co.kr