LG 2007 Annual Report Download

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At LG Electronics, we love to meet consumers. We listen closely to their needs and desires.
Then we work to create the world’s nest products. Products that deliver more convenience. More satisfaction.
And a brighter, more hopeful future. Isn’t it time we got to know each other better?
WHEN
LG
ELECTRONICS
MEETS
CONSUMERS

Table of contents

  • Page 1
    WHEN LG ELEctroNics MEEts coNsUMErs At LG Electronics, we love to meet consumers. We listen closely to their needs and desires. Then we work to create the world's finest products. Products that deliver more convenience. More satisfaction. And a brighter, more hopeful future. Isn't it time we got to ...

  • Page 2
    At LG Electronics, we love to meet consumers. We listen closely to their needs and desires. Then we work to create the world's finest products. Products that deliver more convenience. More satisfaction. And a brighter, more hopeful future. Isn't it time we got to know each other better? WHEN ...

  • Page 3
    ... your life. That is why life's good-and getting even better-with LG. 01 COnsumErs + LG ELECTrOnICs 56 FACTs & FIGurEs 11 FAITH + LEADErsHIP 41 ImPrEssIOn + PErFOrmAnCE 51 sTYLIsH DEsIGn + smArT TECHnOLOGY 64 FInAnCIAL sTATEmEnTs 60 GLOBAL nETWOrK 62 mAnAGEmEnT / BOArD 63 COrPOrATE mILEsTOnEs

  • Page 4
    Looking for the finer things in life? With stand-out products that reflect your lifestyle and aspirations, LG puts you in a class all your own. 02 + 03

  • Page 5
    Looking for the ultimate life makeover? With contemporary products that make your home comfy, fresh, and beautiful, LG makes you the center of attention. 04 + 05

  • Page 6
    Looking for a little fun? With sophisticated products that bring you and your loved ones together to share, play, and relax, LG puts you at the center of excitement. 06 + 07

  • Page 7
    Looking for the next big thing? With trend-setting products that keep you entertained, informed, and connected, LG puts you on the leading edge of cool. 08 + 09

  • Page 8
    cLAssY. cHic. WoW. HiP. WHAtEVEr WAY YoU WANt to PUt it, LiFE's GooD WitH LG. AND it is GEttiNG EVEN BEttEr WitH... tHE PErFEct HArMoNY oF

  • Page 9
    crEAtiNG GrEAtEr VALUE For EVErY stAKEHoLDEr is oUr oNE AND oNLY FocUs. cEo MEssAGE 12 + 13

  • Page 10
    ...with these strategic initiatives in 2008, our focus will be squarely on the overall health of our businesses, not on short-term performance. specifically, we will be paying close attention to the health of our product pipeline, channel collaboration, consumer relationships, business portfolio, brand...

  • Page 11
    ..., and market share-in that order. Today, our key performance indicators emphasize cash flow and return on invested capital, keeping us focused on creating shareholder value as we aim for an ROIC of 20% by the end of the decade. YoUNG HA LEE President & CEO Digital Appliance Company siMoN KANG...

  • Page 12
    ... and premium products to win at both ends of the market. 4. INVEST IN A CLEAR, GLOBAL IDENTITY The LG brand is one of the best-known names in consumer electronics. But consumers are still a little hazy about who we are and what we stand for. Our brand-building focus is now on communicating a clear...

  • Page 13

  • Page 14
    ..."third way"-in delivering a perfect harmony of stylish design and smart technology that fits your life. It is a simple-but-powerful premise that is empowering us to create new and refreshing products that bring a relaxed sophistication to life for consumers like you around the globe. BrAND iDENtitY...

  • Page 15
    ... together some of the world's best designers, engineers, marketers, and product planners with the mission of creating products that are far more than just the sum of their parts. Our Corporate Institute of Technology, Production Engineering Research Center, and 38 research labs around the globe...

  • Page 16
    ...the fast-paced mobile phone industry, LG Electronics continues to impress critics and consumers with premium phones that set the standard for cutting-edge technology and sophisticated design. We have embraced touch technology to make advanced features more accessible and intuitive, while keeping our...

  • Page 17
    ...We have added sensors to continuously optimize picture quality for ambient light conditions. We have increased contrast up to 50,000:1 for truer colors and deeper blacks. We have added more digital inputs and full HD wireless streaming for easier connections to other devices. And we have worked with...

  • Page 18
    ... great products start with simple but novel ideas that solve real-world problems. We have created air conditioners that cool, heat, and showcase art. We have integrated manual icemaking into freezer doors to provide more convenient access and save energy. We have used steam cleaning technology in...

  • Page 19
    ...stylish home theater audio systems. We have worked with audio legend Mr. Mark Levinson to deliver sound that impresses even hardcore audiophiles. We have created advanced digital signal processing chips that help security cameras deliver clearer, sharper, and brighter images. We have added mobile TV...

  • Page 20
    ... in the US. MoBiLE PHoNEs Air coNDitioNErs Heating and cooling equipment requires lots of electricity to keep us comfortable. Our air conditioner outdoor units feature inverter compressor technology that reduces both power consumption and noise. We use R-410A refrigerant because it does not...

  • Page 21
    ...and growing number of teams and events in some of the world's favorite leisure pastimes. And regardless of who takes home bragging honors at the end of the day, it is our hope that each spectator or viewer is left with the unmistakable impression that LG is an exciting, world-class brand that shares...

  • Page 22
    ...students involved in community service. We help introduce orphans and kids in rural communities to the wonders of science. We work with United Way International to make a difference in nine countries across Asia. We sponsor surgeries for kids with cleft lips and palates in the Middle East and Africa...

  • Page 23
    it is HArD to Miss HoW PAssioNAtE WE ArE ABoUt tEcHNoLoGY, DEsiGN, tHE ENViroNMENt, AND oUr NEiGHBors. AND NoW, tHAt PAssioN is DELiVEriNG... tHE PErFEct HArMoNY oF

  • Page 24
    ...and streamlining our global supply chain. In 2008, we are aiming to grow sales volume, revenue, and operating profit by more than 20% as we target sales of 100 million units. MoBiLE PHoNEs The 2006 global launch of the LG Chocolate phone- the first handset in our Black Label series of premium design...

  • Page 25
    DD Digital Display Company 1 We see the "big picture" a little differently than others. Lots of companies can deliver a no-frills big screen LCD or plasma TV. But only a handful can deliver one that is a work of art. At LG Electronics, stylish design and smart technology make our flat-panel HDTVs ...

  • Page 26
    ...In 2007, our power-saving inverter technologies and health-conscious features helped us make an exceptionally strong showing in the Middle East, Africa, and Europe as we continued to lead the global market. We launched a new range of outdoor units including our Multi-V Water and Multi-V Plus 2 as we...

  • Page 27
    ... planning for stylish new products, launching new HD products, and focusing on opportunities in the mobile Internet device, car infotainment, and security fields. HoME AUDio We captured 13% of the global home-theater-in-a-box market in 2007, maintaining our No. 2 ranking while closing the gap with...

  • Page 28
    AND so, WE HAVE coME to tHE MoMENt oF trUtH. WE HoPE tHAt it is A GroWiNG APPrEciAtioN oF oUr coMMitMENt to crEAtiNG soMEtHiNG VErY sPEciAL For YoU... tHE PErFEct HArMoNY oF

  • Page 29
    LIFE'S GOOD AT LG. EVERyTHING yOU WANT AND NEED IS HERE. stYLisH DEsiGN AND sMArt tEcHNoLoGY ARE GIVING BIRTH TO LG Champaign Home Theater system (HT762TZ) red Dot Design Award 2008 LCD TV (LG60) cEs innovations 2008 Award

  • Page 30
    REFRESHINGLy NEW PRODUCTS THAT BRING A RELAXED SOPHISTICATION TO LIFE. AND IT GETS BETTER EVERy DAy... LG Touch screen Phone Vuâ„¢ (LG-Cu920) cEs innovations 2008 Award LG TrOmm steamDryerâ„¢ (DLG8388/DLG7188) cEs innovations 2008 Award

  • Page 31
    ...AsIA PACIFIC 17% sALEs BY rEGioN nOrTH AmErICA 27% MID-TERM STRATEGIES 2008 BUsiNEss GoAL Global Number 1 player in the digital appliance industry. mIDDLE EAsT & AFrICA 7% EurOPE 19% As oF 2007 Global revenue, referring to the total revenue of the global subsidiaries' account excluding internal...

  • Page 32
    ...18% Residential Air Conditioners 36% Plasma Panels CHInA CHInA CHInA CHInA CHInA CHInA CHInA CHInA AsiA InDIA InDOnEsIA THAILAnD VIETnAm 10% DVD Players 9.7% LCD & Plasma TVs NortH AMEricA mExICO mExICO mExICO BrAZIL soUtH & cENtrAL AMEricA BrAZIL EMPLOYEES KOREA STRATEGIC PARTNERS 29,496...

  • Page 33
    ... AMEricA LGEAI LGECI LGEMR LGEMS LGEMU LGEUS ZENITH LGEMM LGEMx LG Electronics Alabama, Inc. LG Electronics Canada, Inc. LG Electronics mobile research. u.s.A., LLC LG Electronics mexico s.A. de C.V. LG Electronics mobilecomm u.s.A., Inc. LG Electronics u.s.A., Inc. Zenith Electronics Corporation LG...

  • Page 34
    ... with advanced touch interface • Won record number of international design awards, including 21 iF and 29 red Dot Design Award • Launched 120 Hz full HD LCD TV line • shipped 15 millionth LG Chocolate Phone • Led us drum washing machine market for the first time YoUNG HA LEE PrEsIDEnT & CEO...

  • Page 35
    ... are not intended to present the financial position, results of operations, changes in shareholders' equity and cash flows in conformity with accounting principles and practices generally accepted in countries and jurisdictions other than the Republic of Korea. In addition, the procedures and...

  • Page 36
    ... transaction debit Deferred income tax assets Other current assets, net Total current assets Property, plant and equipment, net Long-term financial instruments Long-term investment securities Equity method investments refundable deposits Long-term advance payments Long-term prepaid expenses...

  • Page 37
    ... Others Total non-operating income non-operating expenses Interest expense Foreign exchange losses Donations Loss from disposal of property, plant and equipment Loss on impairment of assets Loss from transfer of trade accounts and notes receivable Equity in losses of equity-method investees...

  • Page 38
    ... expense Gain on foreign currency translation, net Gain from disposal of investment securities, net Loss on impairment of assets, net Loss from disposal of property, plant and equipment, net Equity in losses (gains) of equity-method investees, net Loss (gain) on valuation of derivatives, net Gain...

  • Page 39
    ... of investment securities Acquisition of investment securities return of refundable deposits Payment of refundable deposits Proceeds from disposal of property, plant and equipment Proceeds from disposal of intangible assets Proceeds from disposal of derivatives Acquisition of property, plant and...

  • Page 40
    ...stakeholders in everything we do. And as we deliver ever-increasing levels of value, you can be sure that life will get even better wherever we meet. Produced by Hs Ad / Created by interGram LG Twin Towers 20, Yeouido-dong, Yeongdeungpo-gu, seoul 150-721, Korea / T.82_2_3777_1114 / www.lge.com

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