LG: transformation into “smart life solutions company”

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LG Electronics declared its vision to transform from its current position as a global home appliance brand to a “smart life solutions company” that can connect and expand customers’ diverse experiences while driving for global annual revenues of KRW 100 trillion by 2030. In a speech at the LG Sciencepark in Seoul, South Korea, CEO William Cho outlined the vision built on three growth engines: pursuing new platform-based service businesses through the advancement of business portfolio, accelerating B2B and exploring new business areas such as electronics vehicle charging and digital health. The CEO identified electrification, servitization and digitalization as key inflection points LG will focus on to achieve rapid mid- to long-term growth. “LG will continue to pursue its bold vision to transform and leap forward as a smart life solutions company that connects and expands customers’ various spaces and experiences, rather than resting on its current position as the best home appliance brand that provides quality products – said CEO Cho –. We will establish a brand-new LG by reinventing the way we work and communicate toward this goal”. The CEO also highlighted the company’s financial objectives. “We will achieve Triple 7, which encompasses an average growth rate and operating profit of 7 percent or more as well as enterprise value to EBITDA ratio of 7 – said the CEO –. With the goal of raising sales from KRW 65 trillion last year to KRW 100 trillion by 2030, we will establish ourselves as a company that is properly recognized by the market and customers”. The company plans to invest more than KRW 50 trillion by 2030 for the qualitative growth of the business, including the advancing of the business portfolio led by the three new growth engines. This includes an R&D investment of more than KRW 25 trillion, facility investment of more than KRW 17 trillion and strategic investment of KRW 7 trillion.