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YON G NAM
Vice Chairm an & CEO
SHIFTING CONSUMER SEGMENT LANDSCAPE
We see that our consum ers are changing more “value oriented” in this middle of a historic
period in the world econom y. In this enviro n m e n t, we need to be extrem ely proactive in our
consum er insights activity to monitor changes in consum er need and behaviors. There will
be a clear re-sizing of segm ents, shifts in needs, and as such, a change in the ‘sw eet spot’
for us to target. The shifting consum er ‘sw eet spot’ will re quire better focus, flexibility,
and differentiation in product road map. Doing so will positively impact not only our top
line, but also our working capital and ROIC. And this also gives for us an opportunity to re-
define the partnership with the leading partners, so that we all em erge from the econom ic
dow nturn as stro n ger players.
IMPROVING OPERATIONAL FLEXIBILITY
We need as much operational excellence in our cost base, SCM and pricing as possible,
in order to weather though the turbulence. Every opportunity to improve our overhead
cost position, improve margins, and free up cash, should be exam ined. The best SCM
capabilities to improve LG Electro n ics’ reliability, flexibility, and our response time are
needed if we are going to be able to work in a much tighter inventory enviro n m e n t. In the
meantime, the margin flexibility, as well as product pricing strategies, is needed if we are
going to quickly resp on d to shifting consum er landscape.
REDOUBLING EFFORTS TO RESTRUCTURE PORTFOLIO
The cu rren t enviro n m e n t could provide a unique window of in-organic opportunities. Each
of us has made a progress to layout our stra tegies to re stru cture the business portfolio
for future profitable grow th. LG Electro n ics’ business portfolio, which was restru ctured in
January 2009, is now com prised of five business com panies–H om e Entertainm ent, Mobile
Com m unications, Hom e Appliance, Air Conditioning, and Business Solutions. This stru cture
will allow us to capture even more of the ever-expanding commercial market. It will also
help us expand our value chain from h a rdw are to solutions and enable the com pany to
better address the lifestyle needs of both cu rren t and future consum ers.
Arm ed with a host of future-oriented products and technologies, future-focused business
strategies, and strong branding and marketing activities, LG Electro n ics is well- p o s itioned
for repeated and sustainable grow th and success. W e are also seekin g to b e c o m e a
global “top 1” electro n ics and telecom m unications com pany and an “innovation com pany”
with solutions that can change the landscape of the markets. The ultimate goal of these
strategies is to add to the values of our em ployees, custom ers, shareholders–and you.
I look forw ard to your continuing interest, support, and encouragem ent on LG Electro n ics.
Thank you .
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