LG Electronics 2012 _wish USERS GUIDE What is your wish? Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader. 01 LG Electronics 2012 _wish Our lawyers wish to include the following: All LG Electronics products and services mentioned in this publication are the property of LG Electronics. 02 My wish This is a book 12 LG’s wish 14 Message from the CEO 18 Four Pilars of Core Strategy about wishing. 22 My wish + LG’s wish 24 Home Entertainment Company And how one 30 Mobile Communications Company 36 Home Appliance Company 42 Air Conditioning & Energy Solution Company company has been 48 Wish + New Business 48 Solar Energy 50 Water Treatment listening to the 52 We wish 54 Environment wishes of people 56 Global Social Contributions 58 Sports Sponsorships 60 Marketing Campaign & Activity like you. 62 Leading the world in Innovation 64 Awards 66 Fact & Figures 76 Financial Statements 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. 01 LG Electronics 2012 _wish It is a story And how that about how inspiration is the your wishes very first step become the in the process inspiration for of innovation our engineers across all of our and designers. divisions. Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader. 01 LG Electronics 2012 _wish As you look So, from through the pages everyone at LG, of this book, thank you for remember that your inspiration. every product you And please, see began with a never ever stop wish. wishing. Warning: Wishing is a powerful force. It can lead to amazing leaps of imagination. We are not responsible for the effects of this book on the reader. 01 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 wish 02 03 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… LG wishes sustainable growth for our company, our employees and our partners, and a sustainable future for our planet. We wish that our Innovation continues to deliver on people’s needs. And brings new levels of ease, convenience and enjoyment to families around the world. LG’s wish 12 13 MESSAGE FROM THE CEO Throughout the past year, I have been privileged to meet many of you around the globe, and I would first like to express my most sincere thanks to each one of you. Hearing your thoughts and ideas 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 “ I am excited to share with you that our dedicated and forward-thinking commitment to improving the lives of our consumers, business Innovation partners, and all of the readers I am communicating with today. By dedicating ourselves to values such many of our products have truly as innovation and product leadership, we will prevail through the challenges of our economic climate and captured the hearts and minds of the aggressiveness of our competitors. continues people around the world” 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.” 14 15 There are five essential pillars upon which we will build that future: Product Leadership Preparation for the Future The foundation of a manufacturing company lies in its products. In our industry, that means To back up our word in product leadership and constantly developing consumer offering truly differentiated products that make consumers take notice and say, “This is It!” But values, our R&D ensures that we target to be the first mover in the market with new this is only accomplished when everyone onboard—from R&D and design through quality and ideas and products. To make certain that there would not be an under-supported marketing—execute with that consumers’ needs in mind. I am excited to share with you that many area, we will be expanding our investment in R&D with continuous efforts in securing of our products, from 3D Cinema TV and LTE phones to the world’s largest capacity refrigerators the brightest and the most innovative minds in the industry. Innovative ideas are our and washing machines, have truly captured the hearts and minds of people around the world. most valuable currency for the future. And 2012 promises to deliver even more on the wishes of consumers. 2012 Motto Strong Fundamentals “Put progressive thinking first, prepare for the future in advance, and create a The more the world changes, the more imperative it becomes that we stay true to the culture where we do things the right way.” 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 Once again, thank you for all of your thoughts and valuable input through the past stakeholders, and pursuing victory in a fairly contested business practices. It is only through year. I hope that this can help add to your generous efforts in caring and moving these strong fundamentals that we will continue to grow steadily in all economic and business forward with us as friends, colleagues, business partners, and shareholders of LG environments, whether that may be positive opportunities or unexpected challenges. Electronics. Superior Value Thank you, What will keep customers turning to us first? The more we can conceive and execute customized Bon-Joon Koo market strategies, the more we will maintain a truly differentiated value proposition that sets Vice Chairman & CEO of LG Electronics 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 January 2012 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. 16 17 Product Strong Leadership Fundamentals LG There is committed is nothing to being first in the more fundamental market with solutions that to consumer trust than meet real consumer needs quality. LG’s Founding today, and tomorrow. We will Chairman once said: “Even accomplish this in two ways: if there is just one defective through innovation that assures product out of 100, the other 99 our products have an unequivocal are likewise defective.” Through a competitive advantage in every strict observation of our principles, category where we compete, predictable management, and and by introducing products adherence to the true nature of so unique in their application our industry, we will continue they create an entirely new to prize—and deliver—quality market. There simply above all. is no substitute for innovation. 18 19 Preparation No.1 Passion, for the Future No.1 Culture Lead, LG not follow. Not guarantees an only in the products ethical workplace that we create, but in the way is second to none. Our we nurture and challenge people are our company. our future engineers, designers They don’t just make world- and corporate leaders. We leading products—they make must have the vision today to LG the best corporation in the trust in their vision for tomorrow. world. And we owe every one of And to give them the freedom them a culture of openness and now to explore new avenues of fairness; where competition lives innovation that will keep LG on alongside collaboration; and the forefront for generations, where accomplishment is and will keep our planet a recognized, applauded and greener place for us all.