LG 2000 Annual Report Download - page 42

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Regarding slow-down of the information technology industry, it is forecasted that the
Digital Media Company will have 13% sales growth in 2001 despite having 50% year-on-
year growth in 2000. The Digital Appliance Company, a cash generator for LGE, will
reach 5% sales growth in 2001. Sales of the Digital Appliance Company will be heavily
supported by air conditioners and refrigerators.
LGE expects that the LGIC merger will create further synergies in 2001, providing the
telecommunication division with advancements, enabling it to reach a W3.9 trillion sales
target. Through the cultivation of new telecommunication markets, progress will
primarily be created through the Digital Handset Company.
In addition to earnings generated from ordinary business operations, a 4-5% recurring
margin is expected due to a depreciating won.
In 2001, LGE will focus its energies on cash-flow-oriented management and financial
soundness. Cash inflow is expected to be generated from net income, continuous shedding
of treasury stock, and ongoing disposition of non-strategic operations. Cash outflow will
primarily be utilized for investment in digital TVs, plasma display panels, and IMT 2000
equipment. With an expected net cash flow in 2001, LGE is striving to improve its
financial soundness to a new height.
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