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4Q16 Earnings Eng Final PDF
4Q16 Earnings Eng Final PDF
The information regarding results of 4th quarter of 2016 has been prepared in advance, prior to being audited by outside
auditors, solely for the convenience of investors of the Company, and is subject to change in the process of final audit by
external auditors.
The information contained herein includes forward-looking statements in respect to future plans, prospects, and
performances of the Company as well as the Companys projected sales plan for year of 2017.
These forward-looking statements also refer to the Companys performance on consolidated base, as indicated.
The aforementioned forward-looking statements are influenced by changes in the management environment and relative
events, and by their nature, these statements refer to uncertain circumstances. Consequently, due to these uncertainties,
the Companys actual future results may differ materially from those expressed or implied by such statements.
Please note that as the forward-looking statements contained herein are based on the current market situation and the
Companys management direction, they are subject to change according to the changes in future market environment
and business strategy.
The information contained herein should not be utilized for any legal purposes in regards to investors investment
results. The Company hereby expressly disclaims any and all liability for any loss or damage resulting from the investors
reliance on the information contained herein.
Table of Contents
1
Consolidated Earnings and Outlook Income Analysis
Operating
283.2 -318.4 -35.2 -384.2 349.0
Net financial Income
84.3
income/expense
Net financial
income/expense -106.8 22.5 -84.3 10.2 -94.5
Gain/Loss on
Equity equity method 19.9 277.4 297.3 299.5 -2.2
297.3
method gain
Other non-
Other non operating
operating -148.4 -112.5 -260.9 -129.2 -131.7
260.9 income/expense
Operating income/expense
Income Income
47.9 -131.0 -83.1 -203.7 120.6
35.2 before tax
Corporate
Income Tax 129.4 46.3 175.7 -84.2 259.9
2
Consolidated Earnings and Outlook Cash Flow Statement
3Q'16 4Q'16
Cash In Cash Out
q Cash at the beginning of period 2,908.0 3,488.5
Cash flow from operating activities 1,043.9 690.3
Net income/loss -81.5 -258.8
Changes in
working capital 188.8 Depreciation 428.0 426.9
Gain/Loss on equity method investment -19.9 -297.3
Changes in working capital 437.2 188.8
Others 280.3 630.7
290.0
Others*2)
Cash flow from investing activities -643.3 -724.3
724.3 Cash flow from
investing activities
Increase in tangible assets -482.2 -644.4
Increase in intangible assets -116.9 -118.1
Cash flow from financing activities 279.8 -396.0
Depreciation Dividend paid, etc -17.2 -2.5
426.9
Increase/Decrease in debt 297.0 -393.5
77.4 FX effect from cash denominated
-99.9 -43.4
258.8 in foreign currency
Net C/F q Net changes in cash 580.5 -473.4
Net Loss q Cash at the end of period 3,488.5 3,015.1
*1) Net Cash Flow: Excluding Cash flow from financing activities
*2) This refers to summation of others in cash flow from operating activities and FX effect from cash denominated in foreign currency and
gain/loss on equity method Investment
3
Consolidated Earnings and Outlook Leverage Ratio/Balance Sheet
4
Consolidated Earnings and Outlook 1Q17 & Annual Outlook
Uncertainty of global economy may rise and slow growth of global economy would
Y2017 continue due to the increase in interest rates and strong US dollar.
Business
Environment Volatilities of raw material and panel prices.
Balanced growth for both B2C/B2B business and pursue profitable growth through
premium brand
Y2017 Appliance and TV will continue to enhance the premium brand and
Key sustain stable margin structure.
Strategies
Establish profit making business structure by enhancing product competitiveness
for mobile handsets.
Expand successful strategic partnership and focus on both quality & profitability for
electric vehicle component business.
Prepare for future business such as Robot / IoT / Artificial Intelligence
5
Performance and Outlook by Division
Performance and Outlook by Division H&A (Home Appliance and Air Solution)
2017 Outlook
*1 The IPD(Innovative Personal Device) department within MC division has been restated to others since 1Q'16
7
Performance and Outlook by Division HE (Home Entertainment)
2017 Outlook
4Q15 1Q16 2Q16 3Q16 4Q16 Market : Although the overall TV demand is expected to remain
sluggish, the premium TV demand such as OLED TV and
Key Product UHD TV will increase continuously.
8
Performance and Outlook by Division VC (Vehicle Components)
Traction Motor Inverter Battery Pack LGE : Focus on High-end product to enhance the business operation
and strengthen product competitiveness based on
differentiation, advanced technology for infotainment business.
Electric Vehicle Component By utilizing GM Chevrolet BOLT as a reference, expand the
customer base and prepare for global business operation.
9
http://www.lg.com/global
Appendix Summarized Financial Statements (Consolidated)
Income Statement
(Unit : KRW bn, %)
2015 2016
1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total
Sales 13,994.4 100.0% 13,925.7 100.0% 14,028.8 100.0% 14,560.1 100.0% 56,509.0 100.0% 13,362.1 100.0% 14,002.9 100.0% 13,224.3 100.0% 14,777.7 100.0% 55,367.0 100.0%
Cost of goods sold 10,906.1 77.9% 10,732.7 77.1% 10,769.9 76.8% 11,226.4 77.1% 43,635.1 77.2% 10,038.4 75.1% 10,236.4 73.1% 9,915.4 75.0% 11,440.1 77.4% 41,630.3 75.2%
Gross profit 3,088.3 22.1% 3,193.0 22.9% 3,258.9 23.2% 3,333.7 22.9% 12,873.9 22.8% 3,323.7 24.9% 3,766.5 26.9% 3,308.9 25.0% 3,337.6 22.6% 13,736.7 24.8%
Selling & admin expense 2,783.1 19.9% 2,948.9 21.2% 2,964.9 21.1% 2,984.7 20.5% 11,681.6 20.7% 2,818.5 21.1% 3,181.9 22.7% 3,025.7 22.9% 3,372.8 22.8% 12,398.9 22.4%
Operating income (Loss) 305.2 2.2% 244.1 1.8% 294.0 2.1% 349.0 2.4% 1,192.3 2.1% 505.2 3.8% 584.6 4.2% 283.2 2.1% -35.2 -0.2% 1,337.8 2.4%
Financial income (Expense) -102.9 -0.7% -98.1 -0.7% -65.0 -0.5% -94.5 -0.6% -360.5 -0.6% -120.9 -0.9% -81.5 -0.6% -106.8 -0.8% -84.3 -0.6% -393.5 -0.7%
Gains (loss) on
168.3 1.2% 123.4 0.9% 70.0 0.5% -2.2 0.0% 359.5 0.6% -22.3 -0.2% -26.2 -0.2% 19.9 0.2% 297.3 2.0% 268.7 0.5%
equity method investment
Other non operating income
-320.9 -2.3% 42.5 0.3% -188.1 -1.3% -131.7 -0.9% -598.2 -1.1% -80.4 -0.6% -1.6 0.0% -148.4 -1.1% -260.9 -1.8% -491.3 -0.9%
(Loss)
Net income before tax 49.7 0.4% 311.9 2.2% 110.9 0.8% 120.6 0.8% 593.1 1.0% 281.6 2.1% 475.3 3.4% 47.9 0.4% -83.1 -0.6% 721.7 1.3%
Corporate Income Tax 11.3 0.1% 83.2 0.6% -14.2 -0.1% 259.9 1.8% 340.2 0.6% 83.5 0.6% 206.8 1.5% 129.4 1.0% 175.7 1.2% 595.4 1.1%
Controlled shares 2.2 187.1 83.7 -148.6 124.4 190.6 271.0 -62.0 -322.7 76.9
Noncontrolled shares 36.2 39.3 41.1 8.1 124.7 7.5 -2.5 -19.5 63.9 49.4
*) Since this statements have not yet been audited by an independent auditor, the contents can be changed if the auditor raise an issue during the review process
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Appendix Summarized Financial Statements (Consolidated)
Balance Sheet
(Unit : KRW bn)
2015 2016
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Current Assets 17,649.5 18,122.3 18,831.1 16,397.6 17,378.8 17,271.8 17,277.5 16,990.6
Cash and cash equivalents 2,034.3 2,576.5 2,961.3 2,710.2 3,294.8 2,908.0 3,488.5 3,015.1
Accounts receivable 7,867.7 8,119.4 8,034.7 7,093.4 6,838.2 7,351.8 6,644.7 7,059.9
Non-current Assets 19,604.2 19,857.2 20,116.3 19,916.3 19,798.1 19,973.2 20,008.1 20,864.7
Intangible assets 1,386.6 1,402.0 1,417.1 1,473.3 1,468.9 1,509.1 1,523.5 1,571.1
Accounts payable 6,958.2 6,416.0 7,219.8 6,087.0 6,561.4 6,315.3 6,740.7 6,746.4
*) Since this statements have not yet been audited by an independent auditor, the contents can be changed if the auditor raise an issue during the review process
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Appendix Summarized Financial Statements (Consolidated)
LGE Consolidated Sales 12,793.0 12,828.7 12,799.8 13,318.6 51,740.1 12,502.7 13,185.0 12,137.4 13,020.6 7% -2% 50,845.7
Excluding Op. Income 237.5 197.4 234.1 300.7 969.7 505.3 619.5 272.0 -151.5 1,245.3
LG Innotek() (%) 1.9% 1.5% 1.8% 2.3% 1.9% 4.0% 4.7% 2.2% -1.2% 2.4%
Sales 1,541.3 1,447.1 1,558.8 1,590.9 6,138.1 1,195.0 1,120.5 1,384.5 2,054.6 48% 29% 5,754.6
LG Innotek()
Op. Income 69.0 49.0 60.6 45.1 223.7 0.4 -34.0 20.6 117.8 104.8
LGE-LG Innotek Sales 339.9 350.1 329.8 349.4 1,369.2 335.6 302.6 297.6 297.5 -0% -15% 1,233.3
Inter-company Transaction () Op. Income 1.3 2.3 0.7 -3.2 1.1 0.5 0.9 9.4 1.5 12.3
Sales 13,994.4 13,925.7 14,028.8 14,560.1 56,509.0 13,362.1 14,002.9 13,224.3 14,777.7 12% 1% 55,367.0
LGE Consolidated (+-) Op. Income 305.2 244.1 294.0 349.0 1,192.3 505.2 584.6 283.2 -35.2 1,337.8
(%) 2.2% 1.8% 2.1% 2.4% 2.1% 3.8% 4.2% 2.1% -0.2% 2.4%
*) The IPD(Innovative Personal Device) department within MC division has been restated to others since 1Q'16
*) Since this statements have not yet been audited by an independent auditor, the contents can be changed if the auditor raise an issue during the review process
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