LG ANNOUNCES 2017 FINANCIAL RESULTS

Strong Profitability and Highest Annual Sales Ever
Led by Performance of Premium Home Appliances and TVs

SEOUL, Jan. 25, 2018 — LG Electronics Inc. (LG) today announced record full-year revenues for 2017 of KRW 61.4 trillion (USD 55.4 billion), an increase of 10.9 percent from the previous year, the highest in the company’s history. Full-year 2017 profits of KRW 2.47 trillion (USD 2.23 billion) – the highest profit since 2009 – increased 85 percent from 2016 due in large part to strong performance by premium home appliances and TVs. Fourth-quarter 2017 revenues grew 15 percent versus 2016 to KRW 16.96 trillion (USD 15.3 billion), generating strong operating profits of KRW 366.8 billion (USD 330.9 million).

The LG Home Appliance & Air Solution Company reported full-year 2017 revenues of 19.23 trillion (USD 17.34 billion), a 11 percent increase from the previous year, reflecting strong demand for premium products such as TWINWash washing machines, InstaView refrigerators and energy-efficient home appliances. Fourth-quarter 2017 revenues of 4.33 trillion (USD 3.91 billion) rose 7 percent from the same period the previous year, with sales in Korea up 27 percent year-over-year. Quarterly operating income declined to KRW 80.7 billion (USD 72.8 million) because of increased marketing expenses related to LG SIGNATURE, infrastructure investments in North America and R&D expenditures related to AI appliances and robots.

The LG Home Entertainment Company reported full-year revenues of KRW 18.67 trillion (USD 16.85 billion), a 7 percent increase from the previous year. Strong full-year operating profit of KRW 1.57 trillion (USD 1.41 billion) reflected the continued growth in demand of premium LG OLED and UHD TV products. Fourth-quarter 2017 sales were strong, up 14 percent year-over-year to KRW 5.48 trillion (USD 4.94 billion), thanks to increasing demand for LG premium TVs. Operating income for the quarter increased 134 percent from the same period 2016 to KRW 383.5 billion (USD 345.96 million).

The LG Mobile Communications Company posted full-year sales of KRW 11.67 trillion (USD 10.52 billion) despite a challenging marketplace and strong competition from Chinese brands. Fourth-quarter revenues increased to KRW 3.07 trillion (USD 2.77 billion), while the quarterly operating loss narrowed to KRW 213.2 billion (USD 192.33 million) due to strong sales of the LG V30 and other premium smartphones and an improved business structure.

The LG Vehicle Components Company posted solid full-year sales of KRW 3.49 trillion (USD 3.15 billion), an increase of nearly 26 percent from the previous year, and quarterly sales of KRW 856.7 billion (USD 772.8 million), down slightly from the same period a year earlier. The company’s fourth-quarter 2017 profitability declined due to a temporary decrease in sales in the infotainment business and investments in new business. Growth of the global electric vehicle market is expected to generate additional demand for components in 2018.

2017 4Q Exchange Rates Explained

LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending December 31, 2017. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1,108.51 per USD.

Earnings Conference and Conference Call

LG Electronics will hold an English language conference call on January 26, 2018 at 09:00 Korea Standard Time (00:00 GMT/UTC). Participants for the English conference call are instructed to call +82 31 810 3061 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at approximately 16:00 on January 25, 2018. Visit http://pin.teletogether.com/eng and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142890# when prompted.

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Global Leader and Technology Innovator Receives Over 90 CES Awards
Across Home Appliance, Home Entertainment and Mobile Categories

SEOUL, Jan. 16, 2018 — LG Electronics (LG) was honored with more than 90 awards at CES^® 2018, led by the Official CES Best TV Product Award for the fourth consecutive year, this time for the new LG AI OLED TV (model C8). LG also earned numerous best-of-show honors for the LG InstaView ThinQ™ Refrigerator and LG 4K UHD Projector.

LG received top accolades from Engadget, The Verge, Digital Trends, Mashable, SlashGear, TechRadar, Pocket-lint, T3, Stuff Magazine and others in addition to 19 CES Innovation Awards from the Consumer Technology Association – including the Best of Innovation Award for the LG 4K UHD Projector – across home appliance, home entertainment and mobile communications categories.

LG’s 2018 innovations unveiled at CES include home appliances and home entertainment products with LG ThinQ AI including the first TVs with the Google Assistant built-in, most notably the LG SIGNATURE AI OLED TV W8 featuring ThinQ which won more than 10 awards at CES. The LG InstaView ThinQ Refrigerator followed in award wins, offering a streamlined food management system through LG’s webOS platform and Amazon Alexa integration that makes shopping for groceries, playing music, checking the weather, managing your calendar and more, simple. LG also debuted the revolutionary new α (Alpha) 9 intelligent processor that further enhances performance of its flagship LG AI OLED TVs and revealed the outstanding LG V30 smartphone in a brilliant new Raspberry Rose color.

Top awards earned by LG at CES 2018 include:

LG AI OLED TV C8: Engadget: Best of CES – Best TV Product / Reviewed.com: CES Editors’ Choice Awards

LG SIGNATURE AI OLED TV W8 with ThinQ / α (Alpha) 9 Processor: Consumer Technology Association 2018 CES Innovation Awards: Video Displays / Pocket-lint: Best TVs of CES / Techlicious CES Top Picks / TechRadar: The Best Tech at the Show / TWICE: Picks Awards

LG InstaView ThinQ Refrigerator: BGR: Best of CES / Consumer Technology Association 2018 CES Innovation Awards: Home Appliance / Gadgetmatch: Best of CES / Gear Diary: Best of CES / Reviewed.com: CES Editors’ Choice Awards / TWICE: Picks Awards

LG 4K UHD Projector: 9 to 5 Toys: Best of CES / Consumer Technology Association: 2018 CES Innovation Awards – Best of Innovation / TWICE: Top Picks Awards

LG 34-inch 5K UltraWide Monitor: MacRumors: CES 2018 – Best of CES Unveiled / SlashGear: Best of CES / The Verge: Awards at CES

LG V30 Smartphone: Consumer Technology Association 2018 CES Innovation Awards: Wireless Handsets and Accessories / Videomaker: Best Smartphone of CES

For a complete list of LG’s CES 2018 awards and accolades and additional information about LG’s products at CES please visit www.LGnewsroom.com/ces2018.

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