Lg Elec S/Gdr 144A

Good afternoon. Welcome to LG Electronics Quarterly Earnings Conference Call. This conference call will start with a presentation on the earnings result followed by a Q&A session. If you wish to ask a question, you will need to press star and 1 on your telephone. English translation will be provided for this call simultaneously for the presentation and consecutively for the Q&A session. I'll now turn the call over to the first speaker. Good afternoon. My name is Wonjae Park from Investor Relations. Thank you for joining our earnings call for the second quarter of 2024. With me are CFO and EVP of LG Electronics, Jangtae Kim, SVP of Global Business Management Group, Sangho Park, VP of Home Appliance and Air Solutions, Lee Kwon Kim, VP of Home Entertainment, Jeonghee Lee, VP of Vehicle Components Solutions, Joo Yong Kim, VP of Business Solution, Dongchul Lee, VP of Corporate Business Management Division, Chunghyun Park, VP of Accounting Division, Hongsoo Lee, Head of Finance Division, Youngyoon Kim, and Head of ESG Strategy, Seongmin Hong. Today's presentation agenda will cover four areas. First, our CFO will outline the overall performance results of the second quarter, outlook for the third quarter, mid- to long-term direction and dividend policy. Then, I will present financial highlights. Subsequently, each division will take turns to deliver its business results and outlook. And finally, we will conclude with an overview of ESG activities and achievements. Please note that all statements we'll be making today regarding the financial results of the second quarter are subject to change in accordance with the results of the external review. Uncertainties in the market and changes in strategies may cause our results to be different from the outlooks and forward-looking statements made today. Now let me start with the consolidated financial results of the second quarter of 2024 and the outlook for the third quarter. Good afternoon. My name is Changtae Kim, CFO of LG Electronics. Q2 revenue grew year-over-year on the back of qualitative growth in core business, including home appliance, TV, and IT, and incubating business, including webOS, despite sluggish demand in the EV market. Operating profit made a significant increase year-over-year despite price increase in components including LCD panels thanks to the sales leverage effect and expended contribution of highly profitable B2B business. In terms of the business environment, difficulties are expected to continue in the second half of the year as delays in interest rate cuts slows down the demand for key products and uncertainties in freight rate persist. However, we plan to post the year-over-year growth on the back of continued growth in home appliance and TV and a sales recovery of auto parts business. For operating profit, despite a possible increase in logistics cost, We plan to maintain a solid profitability level through optimization of global operation. In mid to long run, we intend to maintain a balanced qualitative growth in both core and incubating business, transform business models, expand domains, and innovate business method to build a more future-oriented portfolio. We will further strengthen the market position of home appliance, TV, and other main business while broadening B2B portion including HVAC and automotive electronics. Our efforts in expanding business model will be continued as evidence in our recent acquisition of ATHEM, a smart home platform provider. At the same time, we will further innovate the way we do business as we speed up the pace to enter overseas markets with subscription business and increase direct sales online. Next, regard dividend policy and payouts. Based on the principle of enhancing shareholder value, our shareholder return is determined within the dividend income, considering future strategic investment, financial structure, and business environment. Over the three-year period from the fiscal year of 2024 to 2026, distributable profit will be no less than 25% of net profit based on the profit attributable to owners of the parent in the consolidated financial statements, excluding one of non-recurring profit. We plan to provide a minimum of 1,001 a year per common share which will be paid out twice per annum in the first and second half of the year. The semi-annual dividend for 2024 was confirmed at $501 per share for both common and preferred stock through a Board resolution on July 24. To enhance predictability for investors, the dividend record date and expected payout per share were announced on June 18 prior to the first half semi-annual dividend record date. The semi-annual dividend will be paid to shareholders on August 13 in accordance with Article 165-12 of the Financial Services and Capital Markets Act. Now, I will turn the call over to investor relations. I will now briefly review the second quarter performance of each business. H&A recorded 8.8 trillion won in sales, 694.4 billion won in operating profit, and 7.9% in profitability. H&E recorded 3.6 trillion won in sales, 97 billion won in operating profit, and 2.7% in profitability. VES recorded 2.6 trillion won in sales, 81.7 billion won in operating profits and 3% in profitability. Last but not least, BS recorded 1.4 trillion won in sales and 5.9 billion won in operating loss. Let's move on to the profit and loss and cash flow of the second quarter. Reflecting financial income and expense, equity method gain and loss, other non-operating income and expense, corporate income tax, and income and loss from discontinued operation, we posted 629.5 billion won in net income. Next, on cash flow. Q2 cash flow from operating activities was 2.6 trillion won, and cash flow from investment activities was negative 866 billion won. resulting in net cash flow of 1.2 trillion won. When reflecting cash flow from financial activities of 308 billion won, cash balance at the end of Q2 came to stand at 8.5 trillion won, a 1.5 trillion won increase from the previous quarter. Next is the key financial position and indicators for the third quarter of 2024. As of the end of the second quarter, assets stands at 63.1 trillion won, liability at 37.9 trillion won, and equity at 25.2 trillion won. In terms of leverage ratios regarding liability to equity, debt to equity, and net debt to equity, we are maintaining a healthy financial condition. Now let's turn the call over to each business for its second quarter result and third quarter outlook. We will begin with H&A. Let me share second quarter results of H&A. Sales has been polarized, with developed markets experiencing a gradual recovery amid global economic uncertainties, while emerging markets are seeing strong growth. We achieved revenue growth year over year by strengthening promotion, expanding price coverage, and producing positive results in new domains, such as subscription and online. Operating profit improved year over year by successfully managing increased overhead including market competition cost and fixed cost through revenue growth and cost saving measures like material cost reduction. Next is the outlook for Q3. Weak demand in the U.S. and dwindling recovery in Europe is likely to persist. On the other hand, continuous growth is expected in emerging markets, especially in India, Asia, and Latin America. However, given the uncertainties of demand recovery in advanced markets and the spread of geopolitical risks, competition in major markets is anticipated to intensify. In response, we will drive B2C sales growth by responding to the market changes ahead of time with new products, stronger promotions, and expanded volume zone strategies. We'll also move away from the typical seasonality by broadening the contribution of B2B, focusing on HVAC, and enhancing online and subscription business. Moreover, we'll secure operating profit similar to or higher than that of the last year by cutting costs based on our manufacturing prowess and enhancing operation to address the risk of rising ocean freight rates. Next is our view on the annual demand prospect for the global home appliance market. In the previous earnings call, we started sharing our perspective on the demand of the global appliance market, and we will continue to update the outlook twice a year. Please note that this section of the presentation regards market demand focusing on refrigerators and washing machines and is not related to the projections of our appliance business. Diverse factors may cause the market to be different from the outlooks made in this section. We stand with the previous outlook of limited level of growth for annual market demand. But there are some changes made in terms of timing and region. We expected to see a gradual demand recovery in the second half after demand contraction in the first half in the previous call. Demand for the first half has fared better than our projection, while the recovery in the second half is likely to be slower than expected. To elaborate, Exchange rates remained stable in the first half in emerging countries, especially in Latin America, Middle East, and India, and consumption improved in oil-producing countries due to rising oil prices. However, in the second half, macroeconomic drivers of demand are likely to lose momentum as we see delays in interest rates cut and a drop in new horn construction. By region, Emerging markets including Latin America, Middle East, Africa, and India are expected to continue to grow, while recovery in the advanced markets including North America and Europe fails to meet the market expectation. As consumers are continuing to trade down, seeking less expensive alternatives, we expect the overall average selling price to decrease. difficulties of the market are likely to persist for the remainder of the year. By preemptively responding to demand changes with the adoption of two-track strategy and by driving sales in emerging markets, we aim to continue to produce solid results as we head in the challenging years of post-pandemic era. Next is second quarter result of home entertainment business. By tapping into The momentum of growing demand for TVs in Europe, in line with the upcoming mega sports events, we were able to increase hardware sales, including OLED TVs. At the same time, web-based advertisement and content business continued to grow, driving up sales significantly year over year. For operating profit, although an increase in sales work in our favor, operating profit decreased slightly year-over-year due to the rising cost pushed up by LCD panels. Let's move on to the third quarter outlook. The overall market demand for TV is expected to improve slightly year-over-year, while OLED TV is expected to post higher growth compared to the market. Accordingly, we aim to continue to grow top line and secure profitability by improving the product mix of premium products such as OLED and QNED TVs and by broadening the ecosystem of webOS platform by offering free upgrade on mass tier products. Next is second quarter result of the vehicle component solution. Despite demand stagnation of the EV market, we were able to grow sales slightly year over year on the back of an increased demand for high value added components of infotainment and ADAS. While there was some cost pressure from upfront investment in R&D for SDV and awarded projects, we were able to continue to secure profitability through improved project mix leverage effects of revenue growth and activities to stabilize the cost structure. Now let me turn to the outlook of the third quarter. Market uncertainties, including slowdown in EV demand, are likely to persist. However, demand for high-value-added auto parts is projected to exhibit an upward trend. In this environment, we expect to see a continuous growth in sales and improvement in project mix as awarded projects start to launch products. We aim to secure stable profitability by optimizing our operation and improving the cost structure. Let me present the second quarter result of the business solution. Revenue grew year over year on the back of increased sales centering on strategic products like gaming monitors, eBoard and eLED signage, and winning large PC volumes from B2B partners. Operating profit recorded a loss despite an increase in sales as the business environment worsened with a rise in exchange rates, logistics cost, and component price, and as we increased investment in new businesses, including EV charger. I'll now move on to the third quarter outlook. Demand for IT and information display is expected to grow year over year, but the overall level will be similar to that of the second quarter. However, when broken down into product level, gaming monitors and LED signage are likely to continue to grow in the third quarter. Against this backdrop, We aim to grow revenue year-over-year by focusing on sales of high-value-added strategic products, enhancing online sales, and putting more effort in winning B2B projects. At the same time, we will enhance the efficiency of resource operation to improve profitability and manage growing investment in new business. Last but not least, our ESG activities and achievements. LG Electronics continues to strengthen competitiveness with sustainable products and technologies. This year, OLED EVO TVs received certification on CO2 measurement and reduction from the Carbon Trust, environmentally evaluated mark from SGS for four consecutive years, and recycled content certification from Intertac for two years in a row. Last December, our pulp molding packaging received Minister's Prize from the Ministry of Trade, Industry, and Energy. Last December, industry's first molded pulp that can handle more than 20 kilograms was developed and applied in packaging air purifiers, and the packaging is now being applied to 30 to 50 kilograms. Our plan is to replace plastic packaging with molded pulp by developing pulp packaging that can handle more than 70 kilograms. We are supporting 15 suppliers in consultation to help them reduce carbon emissions, and we plan to continue to increase the number. In April, LGE signed a business agreement with the National Rehabilitation Center to develop technologies that can improve accessibility of home appliance products and provide better customer experience to people with disabilities, older adults, and children. Last June, our world's first traffic safety smartphone solution, Softv2x, passed ICT Sandbox. With the Seoul Metropolitan Government and Sejong City, we plan to deploy the solution to verify its service effectiveness. We believe that the solution will lower and prevent risks of traffic accidents by being integrated into vehicles and various connected micro-mobility such as e-scooters and e-bikes. We are also actively engaged in ESG campaigns. Between last May and June, we conducted better return campaigns with Korea Environment Corporation and E-Cycle Governance collecting waste batteries of cordless vacuum cleaners from homes for recycling. Last April, celebrating Earth Day, we unveiled Endangered Species series on Times Square billboard in New York City. The campaign will highlight four endangered species throughout the year, beginning with snow leopard to raise an awareness on climate change and importance of biodiversity. We also became the first Korean company to be certified by the National Wildlife Federation as our pollinator garden built in North American campus was recognized as a wildlife habitat. Pollinator garden is designed to be a sanctuary for bees, butterflies, and other pollinators whose population is in decline. Elderly Tonics will continue with these activities to create a better life for all stakeholders. That brings us to the end of the second quarter earnings release and outlook for the third quarter. We'll now take questions. Operator, please commence with the Q&A session.

Now, Q&A session will begin. Please press star and 1 if you have any questions. Questions will be taken according to the order you have pressed the star and 1. For cancellation, please press star and 2 on your phone. This is Simon Wu from Bank of America. The first question will be provided by Simon Wu from Bank of America. Please go ahead with your question.

Thank you for the opportunity to ask the question. My name is Dong Jae Wu. First of all, congratulations on your good performance. There are two questions. The first is about web OS. Elec S & Gdr 144A Next, the second question is about the current status of H&A's home appliances subscribers, refrigerator, washing machine, dishwasher, and so on. I think there will be a variety of sales values for each product. Also, how to create more profitability through this new innovation, and of course, not only in Korea, Thank you for taking my question. First of all, congratulations on such a good quarter. I have two questions. The first question on the HE division and the second on the H&A division.

first of all would be for the HD division, especially with regards to your webOS platform. Can you please share on where you are in terms of progress and profitability in reaching your 1 trillion goal for 2024? I would appreciate it if you could break it down by segment and region. In addition, will your growth volume and profitability continue to sustain current strengths over the mid to long term?

And my second question is on home appliance business. I believe that the subscription business is pretty booming in the market and I would like to ask the number of subscriptions and the breakdown of revenue per product such as refrigerators and dishwashers and washing machines. And are you actually seeing profitability throughout this new innovation? And the other one is, do you have any marketing strategies to bring this innovative solution to developed markets such as the U.S. or Europe?

Yes, I would like to ask a question related to HEE's web voice. As mentioned in the press release, the company's web voice-based platform business is based on the existing wired TV advertising market Elec S & Gdr 144A Elec S & Gdr 144A Elec S & Gdr 144A Elec S & Gdr 144A Elec S & Gdr 144A Elec S & Gdr 144A

delivering value-added ads to targeted customers. Number one, we have acquired controlling stakes in Alfonso, the exceptional data analysis company. And number two, we have reinforced our relevant internal teams, such as on data analytics. And number three, we have strategically partnered with leading content players to deliver better content.

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Based on the activities outlined previously, we expect our sales to run higher than $1 trillion this year. We are faring well, having surpassed our target for the first half of the year, while profitability, too, hovers above our expectations amidst proactive investment underway. We will continue to expand our footprints not only in the North American region, our core but to cover Europe, Latin, and Asia as well. Competition is, however, on the rise as the market gains volume and appeal. We are responding with a greater focus on not only the basics, which includes the strength of WebOS itself and the delivery of high quality content, but also on expanding the ecosystem, which we intend on realizing through a greater number of alliances driven by the sale of our WebOS to other TV brands. Thank you.

Elec Sardar Sardar Sardar Sardar

Let me answer your question in regards to subscription business and home appliance business unit. In regards to the actual number of subscription or performance, please excuse us for not able to bring accurate figures to the table. We do expect subscription business revenue from home and abroad to show a continuous growth. In Korea, thanks to expanded business focusing on large appliances subscription, our business accounts for over 20% with double digit profitability. And based on our competitiveness and experience in the Korean market, we would like to expand into the global market with our subscription business model.

In the case of overseas business, the company is gradually expanding its subscription business to Taiwan, Thailand, and Asia, starting with Malaysia. In the case of Taiwan, it started its subscription business through some channels from July 1, 2014, and is preparing for a full-scale business expansion in October through purchase customer analysis and system and infrastructure inspection across all areas. Touching upon our business in the overseas market, we are gradually enlarging the market scope from Malaysia to other Asian markets such as Taiwan and Thailand.

Adding more colors on the case of Taiwan, we have first launched the business on the first of this month and are planning to expand the business this October after going through system and infrastructure check and customer analysis. Our plan is to expand the business to Thailand and India within this year. Please understand that I cannot clearly disclose the timeline, but We are also reviewing feasibility of launching this business in the developed markets such as the US and Europe. Thank you.

Next question please. The following question will be provided by Dongwon Kim from KB Securities. Please go ahead with your question.

Thank you for the opportunity to ask a question. I would like to ask one question about VS and the previous company. Please tell us about the goals of the VS headquarters and the value of each product as of the end of this year. Next, the B2B business is increasing significantly every year. Please tell us about the balance and prospects of B2B in the previous company's sales. That's all.

Thank you for taking my questions. I have two questions and my first one is on VS. What is your target on the order backlog at the end of this year? Can you share the breakdown?

My second question would be for corporate-wide operations. You seem to be driving growth of your B2B business. What is the contribution to the entire sales as well as the outlook?

Yes, I will answer the question related to VS. In the short term, the demand for electric vehicles has increased, but in the medium term, we expect to maintain the growth trend. According to the OEM strategy, new program response and new supply activities based on product competitiveness are continuing, so it seems that we can maintain more than 100 trillion won of supply and demand at the end of the year for continuous sales growth. Let me tell you about the main business values. The infotainment product is 50% medium-level in supply and demand, and the electric vehicle part is 30% medium-level.

Let me answer your question regarding VS. Though EV demand growth showed a slowdown in the short term, we expect the growing trend to continue in the mid to long term. Additionally, as we are responding to the market with our new program for each OEM's different strategy and implementing activities to win new orders, We expect our order backlog to remain over 100 trillion KRW as of the end of this year. In detail, infotainment accounts for mid-50% of the overall backlog, while EV components account for low 30% level and lamps, mid-10% level. Thank you.

Thank you for your question. Regarding B2B, I will answer it because it is related to the military. Through the B2B business, the market share of the military is growing. In terms of profitability, we see that it is doing a meaningful contribution. Last year, we announced the future vision. We have set a goal to increase the company's market share to 100 trillion by 2023. Among them, we have said that we will expand the B2B market share to 40%. I am VP Park from IR. Thank you for your question and I will be addressing your question on the B2B because it addresses corporate wide operations.

Our B2B business currently leads the sales growth of our entire company, generating meaningful contributions to profitability as well. During last year's announcement of our future vision, we have laid out our goal to reach 100 trillion won in sales volume by 2030, of which B2B will make up to 40%. As of the first half of 2024, B2B already constitutes 35% of entire sales, and our performance runs higher than our goal. Going forward, we will continue to expand on this share by proactively identifying opportunities down the road.

I'm confident in this part, so I'll tell you three things in detail. First, in the case of the vehicle parts business, despite the consistent growth of the electric vehicle market, the number of solutions is still expanding. Through the expansion of new customer pipelines such as Europe and Asia,

We are confident in this area, therefore we will drill it down by business areas. Number one, for vehicle components, against the falling EV market, we continue to drive growth of backlogs and sales by drawing on greater orders of value-added solutions and an extended customer pipeline to include Europe and Asia.

I think I should also mention the HVAC business. As the energy regulation and eco-friendly policies are strengthened around the advanced market, it is expected that the new demand for high-efficiency air solution products based on heat pumps will grow rapidly. We are looking for additional growth opportunities through the expansion of the product line and the invasion of the market. Also, we are looking forward to the growth of the data center cooling market in the recent AI big wave trend.

For HVACs with tightened regulations around energy and environment in advanced countries, we expect the fast rise of new demand for air-to-air heat pumps that are energy efficient and therefore we plan to tap into this opportunity with greater product coverage and penetration to seek additional growth. Market for data center cooling is expected to get gain fast momentum driven by the AI big wave, and we are working towards securing orders in advanced markets with our energy-efficient chillers.

Lastly, I would like to talk about the information display and electric car charging business. We want to strengthen the overall B2B business by maintaining product competitiveness and expanding regional product coverage.

Last but not least, we will also deliver on greater product strength as well as wider regional and product coverage for EV chargers and information display solutions to scale up our B2B business. Thank you.

Next question please.

The following question will be presented by Kangho Park from Daesin Securities. Please go ahead with your question.

Please go ahead with your question. Elec S & Gdr 144A Elec S & Gdr 144A Thank you for taking my questions. I have two questions. My first question is on H&A business.

In the second quarter, your revenue jumped dramatically by 10.6% and this was over market expectation while your operating profit has become lower than our expectations. Do you have any plans to make further enhancements on this? And talking about the second half of this year, I believe that there are some logistic cost issues and you may expect higher marketing costs and I would like to ask about your profitability that may be different from the previous year.

My second question is for corporate-wide operations. We continue to hear rumors that you are exploring the possibility of an IPO for your Indian subsidiary. If an IPO is in plan, can you add color on the timeline and the effects it will have on your companies? Thank you.

Yes, I will answer H&A first. As you said, H&A's sales growth in the second quarter was 11% compared to the previous year, and sales profit was improved by about 100 billion won. As you can see, there was a factor of improvement in sales profit compared to the previous year, such as sales growth and price reduction activities, but the increase in market competition and overheads has reduced the number of improvements.

Let me answer your question in regards to home appliance business. As you just covered, H&A business this quarter, we have seen an increase of approximately 100 billion Korean won and sales have grown approximately 11% year on year. Compared to the previous year, there were some factors that led to enhancements in our operating profits such as sales growth and activities to cut costs. However, our actual enhancement levels slightly went down due to an increase in competition and overhead costs.

Next, I would like to talk about the mid-term prospects. As a result of the recovery operation bidding, the average recovery operation per container is expected to rise by about 58% compared to the previous year, and the marketing competition cost, such as advertising, will increase. Elec S & Gdr 144A is expected to improve by the year. That's all.

Moving on to projections on the second half. As a result of ocean freight bidding, the average freight cost is expected to go up by 58% year-on-year, along with marketing competition expenses, including advertisement cost hikes. In order to continuously secure profitability in the second half, LG Electronics would like to launch new models and further reposition our price level. In addition, we will expand our B2B business and further grow our B2C business by focusing on volume zone, keeping the continuous increasing momentum in sales and our growing trend. Throughout innovation on logistics operation and cost enhancement based on our manufacturing competitiveness, We expect to overcome rising ocean freight and eventually witness enhanced operating profit year-on-year. Thank you.

Hello, I'm Park Won-jae. I'll answer the questions related to India. Recently, the interest of investors in the growth of the Indian market is increasing. Also, as the domestic company's India-based IPO is publicized, Elec S & Gdr 144A

Once again, VP Park from IR. The growth potential held by India has recently attracted many interest from investors home and abroad, and with many of Korea's major companies, including Hyundai Motors, filing for IPOs in India, we too are aware of the rising interest the public has placed on the possibility of listing our Indian subsidiary, which has unique strengths in the strong Indian market. A variety of avenues may come under review in light of our corporate value, growth strategy, and capital management, not to mention how we plan to steer our Indian subsidiary. At the moment, however, things are still in the wind and nothing is officially underway. Thank you.

Next question, please.

The following question will be presented by Sunggyu Kim from Daiwa Securities. Please go ahead with your question.

Hi, hello. Thank you for the question. I have two questions. The first question is about vehicle solutions. I am curious about the growth rate of this year's sales and sales. Currently, the demand for electric vehicles is low. Is there a possibility that this year's sales will regrow? Thank you for taking my questions. My first question is on VS.

What is your expected sales growth of this year? I understand that the EV demand remains sluggish, so under such circumstances, do you think the sales will show a negative growth, or do you still expect a double-digit sales hike?

My second question would be for the EVS division. How does your robotics and EV charging business look like, and when will it be that these two areas lead growth of your business?

Yes, I will give an answer related to the V.S. headquarters. It is expected that market uncertainty, including the deterioration of the growth rate of the electric car market, will remain this year. However, the party is aiming for high growth compared to the market through continuous new projects. According to the release of the new program, the increase in sales is expected to continue. In the case of headquarters sales, despite the current market demand, the stable sales growth of infotainment

Let me answer your question about VES. Market uncertainty including slowdown in EV demand is expected to persist throughout this year. Our target is to witness greater growth compared to the market through continuously winning new orders, and we project the sales growth to continue thanks to the launch of our already one new program. Adding more colors on our revenue, despite the slowdown in EV market demand, we expect growth of over high single-digit year-on-year thanks to stable sales growth in infotainment and sales jump in high-value added automobile components. Thank you.

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Let me answer your question for the BS division on robotics and EV chargers. For robotics, we are focusing on the delivery and logistics robots, and this year we are taking our business a step further from F&B to include these verticals, hospitality for indoor delivery and logistics powered by automation.

The robotics industry, however, has yet to bloom, and with our business capabilities still at the stages of development,

Rather than boosting sales, we are at the moment more geared towards strengthening our capabilities, such as on cost and technology, that sets us apart from our competitors.

Next, the electric car charging business, we launched the 23rd full-speed charger, the 2nd high-speed charger, and entered the domestic domestic market. And starting this year, to enter the North American market, Next for EV chargers, our domestic EV charging business kicked off in 2023 with the launch of two types, each of both slow chargers and fast chargers.

We will be targeting the North American market this year, starting with the launch of our slow chargers, followed by fast chargers. And in 2025, we intend on gaining on our shares, especially for our fast chargers.

Yes, so for North American business, we have completed the construction of a local production area in Texas, and we are now promoting local CPUs and new customer reports through a joint business organization. In North America, construction of our Texas plant is now complete,

and our dedicated sales force is identifying new clients and local CPOs to partner with. At the moment, we have joined forces with the number one CPO in US, ChargePoint, and details of the business model are being drawn out. Additional opportunities for global partnerships are being explored and we intend to broaden our horizons starting with Europe to Asia.

Robotics and EV charging are indeed seen as underpinnings of the growth of our division, and we will be committed to build on these areas to lead our division's sales over mid to long term. Thank you. Next question, please.

Currently, there are no participants with questions. Please press star 1, star and 1 to give your question.

That brings us to the end of LG Electronics' 2024 second quarter earnings release. Thank you once again for participating. If you have any further questions, please contact our IR team for further detail. Thank you.