Jo Ju-wan LG Electronics CEO "Sincere Value-Up... Actively Communicating with Global Investors"

On the 6th (local time), met with reporters at IFA 2024 venue

"These days, we are sincerely committed to activities that enhance corporate value."

Jo Joo-wan, CEO of LG Electronics, said this during a meeting with reporters at IFA 2024, Europe’s largest consumer electronics exhibition held in Berlin, Germany, on the 6th (local time).

Jo CEO stated, "Last year, we announced our 2030 future vision to the media, and last month, we held an investor forum to explain our achievements over the past year," adding, "We are reflecting on the fact that we have not actively communicated with shareholders or investors until now."

LG Electronics CEO Jo Joo-wan is speaking with reporters on the 6th (local time) in Berlin, Germany, where Europe's largest home appliance exhibition 'IFA 2024' is being held.
[Photo by LG Electronics]

After touring IFA 2024, Jo CEO will move to London, UK, on the 9th to hold a non-deal roadshow (NDR) with overseas institutional investors. This is the first time an LG Electronics CEO has personally hosted investor meetings in Europe.

He said, "Starting with this year’s shareholders’ meeting, we met investors in the US in May, and now we plan to meet investors in the UK," adding, "We want to attract investors’ interest by explaining in detail what kind of business we operate, how we want to change, and the processes we are going through." He also added, "Our Chief Financial Officer (CFO) plans to meet as many investors as possible in Singapore to provide detailed explanations of our business progress."

He mentioned, "Even in the home appliance business, which is considered a mature business, we have achieved over 10% growth in recent years, and our operating profit margin is also close to 10%." He said they plan to actively highlight the well-balanced business structure, such as the B2B (business-to-business) sector accounting for 35% of total sales. He added, "We intend to talk about things people may not know, such as the chiller business for data center heat management in the AI era, the HVAC (heating, ventilation, and air conditioning) business that has grown 18% annually over the past three years, and the TV business with potential as it transforms into platform and content areas," and said, "We will transparently disclose this information and ask for accurate evaluation."

Jo CEO also mentioned collaboration with global big tech companies. He said, "Big tech companies see companies with many devices as promising partners," adding, "So they want to discuss business with LG Electronics." This means discussing ways to collaborate using LG Electronics’ devices and customer usage data within homes.

He said, "I recently attended the Microsoft CEO Summit and met Satya Nadella, Microsoft’s CEO, one-on-one afterward," adding, "We talked about how we can excellently utilize AI in certain areas and the potential we have, and we will continue these discussions."

Regarding collaboration with Qualcomm, he said, "The market may not know well, but we are Qualcomm’s largest customer in the automotive industry," adding, "LG Electronics is the world’s number one in telematics and the largest automotive parts company using Qualcomm chips. We plan to discuss how to realize evolving AI within vehicles with Qualcomm."

On the possibility of listing the Indian subsidiary, he responded, "An IPO in India is one of several options to enhance corporate value." Industry insiders expect that if LG Electronics’ Indian subsidiary is listed on the Indian stock market, it could raise between 700 billion and 1 trillion KRW.