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Top Management Message

LETTER TO THE STAKEHOLDERS
To Our Stakeholders

This year marks a decade since LG Electronics released the inaugural issue of our sustainability report in 2006 to communicate to stakeholders our efforts in this area. In our first report, we clearly articulated that “Customer-Value Creation” and “People-Oriented Management” are the two principal tenets of our management philosophy. Through this statement, we wanted to convey our steadfast conviction that sustainability management for LG Electronics begins with our commitment to customers and is achieved through respect for our employees.

Over the course of this ten-year period, LG Electronics strived to communicate our philosophy for sustainability management –“Customer-Value Creation” and “People-Oriented Management”– and our achievements in this area. And we did make great progress, which was scrupulously shared with our stakeholders through this report. In celebration of this significant milestone, LG Electronics looks forward to discuss the future. With advances in technology changing and transforming our lives at an accelerated speed, we believe that it is an important part of our social responsibility to understand where these changes lead us and demonstrate to our stakeholders that we are making every effort to stay ahead of the changing environment.

Over the past five years, LG Electronics focused our organizational efforts on enhancing the fundamental strengths of our businesses, affecting positive changes in our product and technology portfolio and placing our operations well on the sound path for advancement. As we were looking to the future to follow through with our preparations, we were also constantly looking back on the past to reexamine our achievements and determine if we were indeed creating value that truly matters to our customers. As part of this effort, we set our goal for this year as “taking the initiative to create change” and “taking management responsibility” and are moving forward to achieve these goals.

Firstly, to take the initiative to create change, we will establish “preparation for competition” and “selection and concentration” as part of our business practice and build our executional capability to further strengthen our market leadership. We will closely track changes in customers and markets and make preemptive preparations and responses through fast and thorough execution, which will help us secure opportunities to stay ahead and write the rules of the future competition. Secondly, to take management responsibility, we will ensure that those who take the responsibility are given the authority to deliver the expected results. To this end, we will reorganize our management structure around business companies to facilitate fast decision-making and fast execution. Taking management responsibility also means that we are assuming the responsibility for the environment and humanity through our business management and practices. LG Electronics takes this responsibility seriously and will strive to honor it across our business management and operations.

LG Electronics stands at a critical juncture for taking another great step forward. Your enduring trust and support are invaluable for the success of our determined efforts to build a better and more hopeful future for humanity. With your trust and support, everyone at LG Electronics will take initiative, drive change and do his or her very best to earn your trust, meet your expectations and build a better future.

Thank you.

May 2016
President

LG Electronics Top management