Value-Up Program Announcement
Review of Measures to Enhance Shareholder Value Including Quarterly Dividends
LG Electronics has set a goal to achieve a return on equity (ROE) of over 10% by 2027 and is also considering share buybacks and additional repurchases of its own shares.
On the 22nd, LG Electronics announced a value enhancement plan (Value-Up Program) focusing on mid- to long-term business strategies and shareholder return policies. This comes about two months after it became the first among the top 10 conglomerates to announce a Value-Up notice in August.
LG Electronics aims to achieve '7·7·7' by 2030 (7% average annual growth rate, 7% operating profit margin, and 7 times corporate value) and reach 100 trillion KRW in consolidated sales excluding LG Innotek.
Earlier, in July last year, the company announced its mid- to long-term strategic direction called '2030 Future Vision' and has been pursuing portfolio transformation based on it. It is striving to transform into a 'Smart Life Solution Company' that connects and expands customer experiences across various spaces where customers live.
To this end, LG Electronics is focusing on platform-based services, accelerating business-to-business (B2B) transactions, and fostering new businesses. By 2030, these three portfolio transformation areas are expected to account for 52% of total company sales and 76% of operating profit.
The Value-Up Program also includes a shareholder return policy applied over three years until 2026. LG Electronics has decided to allocate at least 25% of net income based on consolidated financial statements to shareholder returns. To enhance predictability for investors, the company will continue the minimum annual dividend of 1,000 KRW started this year and semi-annual dividends, while also considering quarterly dividends in the future.
In particular, as part of enhancing shareholder value, LG Electronics plans to consider the cancellation of treasury shares currently held and additional repurchases of treasury shares.
LG Electronics will also explore various measures to further increase shareholder value. The company stated, "We will transparently communicate with the market promptly regarding the plans currently under review as well as any additional decisions made."
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