Lg Elec S/Gdr 144A

Good afternoon. My name is Won Jae Park from Investor Relations. Thank you for joining our earnings call for the fourth quarter of 2025. With me are Sang Tae Kim, CFO and EVP of LG Electronics. From each company's business management division, Jong In Yoo from HS, Sang Ho Park, SVP of MS, Joo Yong Kim, VP of VS, and Dong Hun Shin, VP of ES. From headquarters, Ji-Hwan Park, SVP of Corporate Business Management, Young-Gyun Kim, VP of Finance, and In-Geun Park, VP of Accounting. Today's presentation will proceed as follows. Our CFO will review the 2025 result, 2026 outlook, and provide updates on our robotics business and credit rating upgrades. I will then present the fourth quarter financial highlights. After that, each business will share its individual results and outlook. An overview of our ESG activities will be included in the upcoming first and third quarter earnings releases. Please note that all statements made today regarding the fourth quarter financial results are subject to change in accordance with external review. Actual results may differ from today's outlooks and forward-looking statements due to market uncertainties and strategic adjustments. Now, let us begin with the performance review for 2025 and the outlook for 2026.

Good afternoon. I'm Chang-Tae Kim, CFO of LG Electronics.

Despite sluggish global consumption amid rising protectionism and geopolitical risks, LG achieved sales growth in 2025, driven by the expansion of our core businesses in emerging markets, our two-track strategy targeting both premium and master segments, and continued growth in automotive electronics and HVAC businesses. In home appliances, we mitigated cost pressures including U.S. tariffs through global production optimization and efficient operations. In automotive electronics, we achieved meaningful profitability improvements through higher sales of high-value added products and enhanced operational efficiency. To tackle profitability challenges in our display business amid weak demand and rising competition, We strengthened cost structures and built a foundation for fundamental cost competitiveness. Growth in new areas, smart factories, subscription services, and the webOS platform accelerated, further boosting overall profitability. Persisting uncertainties in the global economy and a delayed demand recovery coupled with cost pressures from tariffs and component prices are expected to weigh on operations. At the same time, rising investment in AI and robotics driven by advances in AI technologies is expected to create new opportunities. In response, we will strengthen our market presence by securing sales growth momentum in our core business through the Global South Strategy and region-specific initiatives. We will continue pursuing qualitative growth by expanding subscription services, the webOS platform, and other new business models, along with B2B areas, including automotive electronics and HVAC. To gain a competitive edge in the evolving AI-centered ecosystem, We will focus on pursuing investment and growth opportunities in AI-driven smart factories, AI data center cooling solutions, robotics, and other future growth areas. At the same time, by adopting AX in the way we work, we will redirect our focus towards higher value tasks, enhancing speed and execution. Let me briefly highlight our robotics business, which is drawing stronger market interest. LG has long accumulated technological know-how in industrial robots for smart factories, as well as in motors, actuators, and autonomous driving for commercial robots across various services. Leveraging our deep understanding of customers, we are advancing smart Appliance Through AI, Introducing the Concept of AI Home Solution. Our vision for home appliances, zero-labor home, is built upon our expertise and extensive experience. At CES, LGE unveiled LG Chloid, a household robot aiming to dramatically reduce household chores. What truly differentiates our vision for home robots from other humanoids is our deep understanding of the home as a living space, our extensive and diverse ecosystem of smart home appliances, and the rich lifestyle data accumulated through this platform.