LG 2000 Annual Report Download - page 32

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Management’s Discussion & Analysis
Non-consolidated Statements
The following discussion is based on the non-consolidated financial statements of LG
electronics and should therefore be read in conjunction with those statements. The non-
consolidated financial statements were presented in accordance with generally accepted
accounting principles (GAAP) in Korea, which may differ in some respect from generally
accepted accounting principles of other countries.
Forward-looking Statements
Several statements in this management's discussion and analysis are "forward-looking"
with respect to LGE's operations, financial position, plans, and objectives. Such
statements are indicated by any of the following terms: "will," "plan," "strive," "aim,"
"pursue," "expect," "intend," and "estimate."
The forward-looking statements included in this report involve significant risks and
uncertainties and are subject to change based on various factors. Factors that may be
beyond LGE's control include the following: interest rate volatility, foreign exchange
fluctuation, changes in consumer tastes, technical advances, social changes in LGE-based
economies, competition, and a changing business environment.
In addition to the aforementioned, a portion of this financial review is derived from
internal management reporting sources, prepared without consideration for GAAP,
Korean or otherwise.
Merger Results
As of September 1, 2000, LG Information & Communication Co., Ltd. was merged with
LGE for support of mobile phone and telecommunication system production.
As a result of the merger, LGE cancelled its stake in LGIC and issued common stock to
compensate those shareholders with shares in LGIC. As of September 1, 2000, LGE
acquired LGIC assets and assumed LGIC liabilities. Sales and profits of LGIC have since
been reported in the accounts of LGE.
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