LG Electronics, Inc.

Company Background

LG Electronics is a core company of South Korean conglomerate LG group, alongside LG Chem. Founded in 1958, LG Electronics has led the country's electronics industry since its early days as the first producer of radios, TVs and other appliances. Now, it is the second-largest electronics maker after Samsung Electronics.

Although LG Electronics lags far behind Samsung in semiconductors and smartphones, the two companies are in close competition in areas such as TVs, washing machines and refrigerators, at home and abroad. Headhunting and patent infringement suits are also common between the two companies. LG Electronics is known for its more laid-back work atmosphere compared to Samsung, which requires its employees to deliver results in a short time.

Its affiliated companies, such as LG Display and LG Innotek, produce liquid crystal display panels and electronic parts. Amid increased competition with its Chinese rivals in consumer products, LG Electronics aims to boost sales of electronic parts outside the group. It has, for example, set up a division specializing in research and development and supply to automakers.

Koo Bon-joon, vice chairman of LG Electronics, is the brother of LG Corp. chairman Koo Bon-moo, and the grandson of Koo In-hwoi, the company founder. He cannot ignore his brother when making important management decisions.

Business Summary

LG Electronics, Inc. engages in the manufacturing of display devices, home appliances, multimedia goods, electronic parts and develops software. It operates through the following business areas: Home Entertainment, Mobile Communications, Home Appliance, Air-Conditioning, Energy Solution and Independent business area. The Home Entertainment business area provides products such as televisions, monitors, personal computers for IT, Car Infotainment and produces Chemical and Electronic Materials. The Mobile Communications business area offers products such as handsets and tablets. The Home Appliance business area provides products such as refrigerators, washing machines, cooking and cleaning and health care appliances. The Air Conditioning and Energy Solution business area manufactures products such as Light Emitting Diode (LED) lightings, residential and system air conditioners. The Independent business area provides products such as compressors, storage devices, PC, telematics and solar cells. The company was founded by In-Hwoi Koo on Oct 1, 1958 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2022	KRW	USD
Revenue	83,467.31B	64,598.10M
Gross Profit	19,505.75B	15,096.14M
Operating income	3,524.40B	2,727.65M
Income before tax	3,707.83B	2,869.61M
Net income	1,340.75B	1,037.65M
EBITDA	6,514.25B	5,041.59M
Diluted EPS	6,644.46	5.14
Dividends Per Share	700	0.54
Total Assets	55,156.14B	43,618.93M
Total liabilities	32,664.14B	25,831.66M
Total equity	18,992.10B	15,019.46M
Operating cash flow	3,107.83B	2,405.25M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	61,341.66B	62,306.17B	58,057.90B	73,907.98B	83,467.31B
Gross Profit	14,655.69B	16,128.72B	14,923.71B	18,273.14B	19,505.75B
Operating income	2,683.60B	2,298.74B	3,905.10B	4,047.69B	3,524.40B
Income before tax	2,008.57B	1,580.73B	3,367.52B	3,390.01B	3,707.83B
Net income	1,240.13B	31,285M	2,616.74B	2,396.71B	1,340.75B
EBITDA	4,685.03B	4,805.11B	6,421.23B	6,777.04B	6,514.25B
Diluted EPS	6,887.13	173.74	10,931.17	5,729.62	6,644.46
Dividends Per Share	750	750	1,200	850	700
Total Assets	44,328.44B	44,859.87B	48,204.22B	53,481.47B	55,156.14B
Total liabilities	28,021.53B	28,434.73B	30,662.10B	33,383.44B	32,664.14B
Total equity	14,253.26B	14,330.08B	15,437.50B	17,230.64B	18,992.10B
Operating cash flow	4,541.56B	3,689.16B	4,628.57B	2,677.38B	3,107.83B

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	55,738.89M	53,427.38M	49,206.29M	64,539.47M	64,598.10M
Gross Profit	13,317.08M	13,830.33M	12,648.41M	15,956.85M	15,096.14M
Operating income	2,438.48M	1,971.16M	3,309.72M	3,534.61M	2,727.65M
Income before tax	1,825.11M	1,355.47M	2,854.10M	2,960.29M	2,869.61M
Net income	1,126.86M	26.82M	2,217.79M	2,092.91M	1,037.65M
EBITDA	4,257.11M	4,120.37M	5,442.24M	5,917.99M	5,041.59M
Diluted EPS	6.25	0.14	9.26	5.00	5.14
Dividends Per Share	0.68	0.64	1.01	0.74	0.54
Total Assets	39,727.94M	38,791.02M	44,374.68M	44,989.67M	43,618.93M
Total liabilities	25,113.40M	24,587.95M	28,226.18M	28,082.81M	25,831.66M
Total equity	12,774.03M	12,391.44M	14,211.08M	14,494.75M	15,019.46M
Operating cash flow	4,126.75M	3,163.44M	3,922.89M	2,337.99M	2,405.25M

Valuation Measures

Dec 2022
PER	13.01
ROA	2.46%
ROE	7.40%
Operating margin	4.22%
Profit margin	1.60%

Key executives

President. Chief Executive Officer & Director: Joo-wan Cho
Chief Technology Officer & Executive VP: Byoung-hoon Kim
Vice President, Head-Legal & Compliance Support: Jong-Sang Lee
Executive Vice President: Park Hyoung-sei
Executive Vice President: Brian Na

Shareholders

LG Corp. (33.6%)
National Pension Service of Korea (8.4%)
The Vanguard Group, Inc. (1.7%)
BlackRock Fund Advisors (1.5%)
Norges Bank Investment Management (1.2%)
Dimensional Fund Advisors LP (1.1%)
APG Asset Management NV (0.7%)
Mirae Asset Global Investments Co., Ltd. (0.7%)
Samsung Asset Management Co., Ltd. (0.6%)
Goldman Sachs Asset Management International (0.5%)

Contact Details

Website:http://www.lge.com
Address: LG Twin Tower, 128 Yeoui-daero, Seoul, 07336, South Korea
Phone: +82.2.3777.1114

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Last Updated on 30 Mar, 2023