Good afternoon, my name is Wan-ja Park from Investor Relations. Thank you for joining our earnings call for the fourth quarter of 2025.

With me are Chang-tae Kim, CFO and EVP of LG Electronics; from each company's business management division, Jong-In Yoo from HS, Sang-ho Park, SVP of MS, Joo-Yong Kim, VP of VS, and Dong-won Shin, VP of ES; from headquarters, Ji-hwan Park, SVP of Corporate Business Management, Yong-gyun Kim, VP of Finance, and In-keun Park, VP of Accounting. Today's presentation will proceed as follows.

Our CFO will review the 2025 results, 2026 outlook, and provide updates on our robotics business and credit rating upgrades. I will then present the fourth quarter financial highlights.

After that, each business will share its individual results and outlook. An overview of our ESG activities will be included in the upcoming first and third quarter earnings releases.

Please note that all statements made today regarding the fourth quarter financial results are subject to change in accordance with external review. Actual results may differ from today's outlook and forward-looking statements due to market uncertainties and strategic adjustments.

Now let us begin with the performance review for 2025 and the outlook for 2026.

Good afternoon, I'm Chang-tae Kim, CFO of LG Electronics. Despite sluggish global consumption amid rising protectionism and geopolitical risks, LGE achieved sales growth in 2025, driven by the expansion of our core businesses in emerging markets, our two-track strategy targeting both premium and mass-tier segments, and continued growth in automotive electronics and HVAC businesses.

In home appliances, we mitigated cost pressures, including US tariffs, through global production optimization and efficient operations. In automotive electronics, we achieved meaningful profitability improvements through higher sales of high-value-added products and enhanced operational efficiency.

To tackle profitability challenges in our display business amid weak demand and rising competition, we strengthened cost structures and built a foundation for fundamental cost competitiveness. Growth in new areas—smart factory, subscription services, and the webOS platform—accelerated, further boosting overall profitability.

Persisting uncertainties in the global economy and a delayed demand recovery, coupled with cost pressures from tariffs and component prices, are expected to weigh on operations. At the same time, rising investment in AI and robotics, driven by advances in AI technologies, is expected to create new opportunities.

In response, we will strengthen our market presence by securing sales growth momentum in our core business through the Global South strategy and region-specific initiatives. We will continue pursuing qualitative growth by expanding subscription services, the webOS platform, and other new business models, along with B2B areas, including automotive electronics and HVAC.

To gain a competitive edge in the evolving AI-centered ecosystem, we will focus on pursuing investment and growth opportunities in AI-driven smart factories, AI data center cooling solutions, robotics, and other future growth areas. At the same time, by adopting AX in the way we work, we will redirect our focus toward higher-value tasks, enhancing speed and execution.

Let me briefly highlight our robotics business, which is drawing stronger market interest. LGE has long accumulated technological know-how in industrial robots for smart factories as well as in motors, actuators, and autonomous driving for commercial robots across various services.

Leveraging our deep understanding of customers, we are advancing smart appliances through AI, introducing the concept of AI home solution. Our vision for home appliances, Zero Labor Home, is built upon our expertise and extensive experience.

At CES, LGE unveiled LG CLOi Edge, a household robot aiming to dramatically reduce household chores. What truly differentiates our vision for home robots from other humanoids is our deep understanding of the home as a living space, our extensive and diverse ecosystem of smart home appliances, and the rich lifestyle data accumulated through this platform.

Our home robot will not simply remain as humanoid devices limited to individual operations. Through mutual interaction among customers, appliances, and robots, we aim to embody our vision of offering home robot solutions that address customers' key needs in the most efficient way possible.

In addition, we continue to expand the features and ecosystem of our home robot solutions. We are building a comprehensive robotic ecosystem that spans industrial, commercial, and home robots.

By leveraging partnerships with leading global companies, we plan to secure technological capabilities and explore new business opportunities. Lastly, I'd like to share some news about our corporate credit rating.

Recently, Moody's, one of the world's leading credit rating agencies, announced an upgrade of LG Electronics' credit rating from Baa2 to Baa1. This marks the highest rating our company has ever received from Moody's.

I believe this achievement reflects our long-standing efforts to transform our business portfolio, our ability to overcome challenging external conditions through differentiated competitiveness and strong execution, and the market's objective recognition of our solid financial management capabilities, which have consistently supported our strategic initiatives. As a member of the management team, I'm pleased to share this encouraging news.

We expect this credit rating upgrade to have a positive impact across our business operations going forward. We will continue to enhance trust in our company by delivering strong results through disciplined execution and by maintaining stable and efficient business operations.

I will now briefly review the Q4 2025 performance of enterprise-wide operations and each business. Our consolidated financial results for Q4 were 23.85 trillion won in sales and 109 billion won in operating loss.

HS recorded 6.25 trillion won in sales and 171.1 billion won in operating loss. MS recorded 5.43 trillion won in sales and 261.5 billion won in operating loss.

VS recorded 2.79 trillion won in sales and 158.1 billion won in operating profit. Lastly, ES recorded 1.45 trillion won in sales and 142.8 billion won in operating loss.

Moving on, the next focus is on B2B and subscription businesses, which serve as key drivers of qualitative growth in our portfolio transformation. Sales of automotive electronics increased in Q4, supported by a stable order backlog.

However, overall B2B sales slightly declined year-over-year due to a decrease in HVAC sales, driven by weakened consumer sentiment and the off-peak season in the second half. Despite this, the contribution of the B2B business to total sales continues to grow qualitatively, maintaining a stable performance level.

Turning to the subscription business, our Korean operations further strengthened their competitive edge through differentiated care services, maintaining strong double-digit sales growth year-over-year. Overseas, following successful entries into Malaysia, Thailand, and Taiwan, we recently launched in Singapore, further broadening our global subscription footprint.

Although still in its early stage, the accelerated expansion of our overseas subscription business is steadily increasing its contribution to overall subscription sales year-over-year. We will continue to enhance our performance by advancing our business portfolio, including both B2B and subscription businesses.

Moving on to the income statements and cash flow for Q4. Reflecting financial income and expenses, equity method gains and losses, other non-operating items, corporate tax, and discontinued operations, the Q4 net loss was 725.9 billion won.

Now let's look at cash flow. Cash flow from operating activities was 612.5 billion won, while cash flow from investing activities was -1.13 trillion won, resulting in a net cash flow of -342.7 billion won.

When reflecting cash flow from financial activities of 1.15 trillion won, the cash balance at the end of Q4 stood at 8.76 trillion won, an 811.7 billion won increase from the previous quarter. Key financial positions and indicators for Q4 2025 are as follows.

At the end of Q4, assets stood at 68.6 trillion won, liabilities at 40.1 trillion won, and equity at 28.5 trillion won. Leverage ratios, including liability-to-equity, debt-to-equity, and net-debt-to-equity, have improved, remaining at healthy levels.

Now we will hear from each business company regarding its Q4 2025 results and 2026 outlook, beginning with HS. Here are the Q4 results for the HS business.

A recovery in consumer sentiment has been delayed due to US tariffs, inflation, and geopolitical uncertainties. Despite the ongoing intense competition, we achieved year-over-year sales growth through our two-track strategy targeting both premium and mass-tier segments, as well as the accelerated growth of our B2B, online, and subscription businesses.

Operating income declined YoY despite measures to address US tariffs, such as expanding local production and adjusting sales prices, and improvement in cost structure, including marketing efficiency. The decline mainly reflected one-off costs from a voluntary buyout program for healthy workforce renewal.

Looking ahead to 2026, although expectations are rising with the adoption of stimulus policies in major markets and the potential for rate cuts, global demand for appliances is expected to remain close to last year's level amid ongoing geopolitical, inflation, and FX uncertainties. Demand for AI-based smart and premium appliances is likely to grow with advancing technology and rising consumer interest, alongside continued expansion in service-integrated markets, such as subscriptions.

Accordingly, we will drive sales growth through our portfolio strategy, including the two-track approach, B2B, online, and subscription businesses, while expanding AI products and focusing on emerging markets, particularly the Global South. We are optimizing our production footprint and leveraging the ecosystems of cost-efficient countries to boost manufacturing and logistic competitiveness, thereby securing profitability comparable to last year.

Let's turn to the outlook for the global appliance market demand in 2026. We update this forecast twice a year, and by sharing our views, we aim to provide our perspective on global demand trends and corresponding strategies.

Please note that this outlook focuses on the year-over-year market demand forecast, not our appliance revenue. Actual market conditions may differ from this outlook due to various factors, such as economic policies on tariffs, interest rates, and other variables, as well as geopolitical issues.

The global appliance market is expected to see a gradual recovery from the second half of 2025 through the first half of 2026, albeit at a limited scale. Considering base effects and uncertainties such as FX fluctuations, demand in the second half is likely to show slight negative year-over-year growth, resulting in an overall level similar to the previous year.

By region, in North America, overall demand is forecasted to slow slightly, mainly due to inflation and a delayed recovery in the housing market as the impact of tariffs began to take effect. At the same time, consumption is expected to become increasingly polarized.

Accordingly, we plan to respond flexibly by strengthening our premium presence and expanding mass-tier coverage through enhanced cost competitiveness. In the Global South, where we are driving growth to diversify our regional portfolio, we expect to see a slight uptick in demand.

We aim to further accelerate our Global South strategy by launching new, more competitive lineups, including region-specific models, so that this market can establish itself as another key pillar of growth for LGE. Various uncertainties, including macroeconomic factors, are expected to persist through 2026.

We will pursue solid performance through well-established strategies built on our global market experience and through close cooperation with our trading partners. Let's now turn to the Q4 results for our Media Solution business.

Sales rose quarter-over-quarter with the peak season, especially for TVs and in North America and Europe, but fell year-over-year due to a delayed recovery in consumer sentiment and stronger competition. Operating profit improved quarter-over-quarter on higher sales and cost improvements, but fell year-over-year due to price reductions and competition-related costs.

Our outlook for 2026 is as follows. Sporting events, such as the Winter Olympics and the World Cup, are expected to boost demand, but overall growth will likely stay flat as economic uncertainty and rising component costs, such as for memory, are reflected in product prices.

We will drive sales by enhancing product competitiveness through greater customer value, while improving profitability by achieving cost competitiveness comparable to Chinese players and increasing operational efficiency. We also plan to create new demand by strengthening our competitiveness in the webOS platform and B2B business, thereby leading the market.

I will now review the Q4 results of the VS company. Despite slower EV sales triggered by suspended US subsidies, sales rose both quarter-over-quarter and year-over-year as backlogged orders were smoothly converted into sales.

Operating profit also improved quarter-over-quarter and year-over-year, driven by sales growth and cost structure improvements. Regarding our 2026 outlook, global automotive demand is expected to remain stagnant amid macroeconomic volatility from weak EV demand, changing regulations, and tariff issues.

We will continue expanding sales through new projects and mass production while strengthening OEM partnerships with an improved product mix and optimizing operational costs to maintain solid profitability. Let me outline the Q4 results of the ES company.

Sales declined year-over-year both in Korea and overseas, impacted by the off-peak season in the second half and weakened consumer sentiment amid persistent macroeconomic uncertainties. Operating profit also decreased year-over-year due to lower sales from seasonal effects, higher competition-related costs, one-off expenses from the buyout program, and increased labor costs from core business hires.

Looking ahead to 2026, Korean market demand is expected to decline amid weak consumer sentiment and stagnation in the construction sector, while overseas demand, especially for premium products, is set to grow with stricter environmental regulations and rising preference for high-efficiency smart products. We will boost sales by launching price-competitive strategic models and new products in core businesses while accelerating online sales.

For the incubating segment, we will address new demand and regulatory changes with high-efficiency B2B solutions like data center chillers and heat pumps using eco-friendly refrigerants. This brings us to the end of LG Electronics' fourth quarter earnings release and the 2026 outlook.

We will now take questions. Operator, please commence with the Q&A session.

지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다.

질문을 취소하시려면 별표와 2번을 누르시면 됩니다.

Thank you for the opportunity. I am Kang-ho Park from Daishin Securities.

My first question is for the company as a whole, and my second question is for the HS company. My first question for the company is: LGE announced plans for a share buyback yesterday.

Could you provide further details and outline the company's plans going forward? My second question goes for HS: We believe that tariffs still hold great importance this year, and uncertainties continue to loom in the landscape.

Can you share the status on your local production in the United States and Mexico, whether you have any plans to add more capacities in the coming future? Thank you.

자사주 매입 관련된 거는

CFO께서 답변을 해주시면 좋을 것 같고요, 생산지 관련해서는 HS 경영관리 담당께 좀 부탁드리겠습니다. The first question regarding the share buyback program will be answered by our CFO, and the second question regarding HS Business Division's production site will be answered by the head of HS Business Management Division.

네, 자사주 관련된 질문에 답변드리겠습니다. 당사는 주주 환원 및 주주 가치 제고의 중요성을 깊이 인식하고 있습니다.

작년

11월 28일 기업 가치 제고 계획 공시를 통해서 다가오는 2026년 3월 정기 주주총회에서의 승인을 통해서 잔여 자사주의 소각을 추진하며, 향후 2년간 2,000억 원 규모의 추가적인 주주 환원을 계획하고 있음을 공시한 바 있습니다. Let me answer your first question on our share buyback program.

LGE places significant importance on shareholder returns and the enhancement of shareholder value. As disclosed in our corporate value-up plan announced on November 28, 2025, we outlined the following shareholder return initiatives: First, we plan to proceed with the cancellation of our remaining treasury shares, subject to approval at the upcoming Annual General Shareholders' Meeting scheduled for March 2026.

Second, we plan to implement additional shareholder returns totaling 200 billion won over the next two years. 또한 이의 일환으로 전일 자기주식 취득 신탁계약 체결 결정 공시를 통해서 2,000억 원의 주주 환원 중 1차로 올해 2월부터 9월까지 1,000억 원 규모의 자사주를 신탁계약을 통해 매입할 계획을 발표하였습니다.

In addition, as announced yesterday through the disclosure on the decision to enter into a trust agreement for the acquisition of treasury shares, we plan to repurchase 100 billion won worth of treasury shares between February and September of this year. This repurchase represents the first phase of the total 200 billion won shareholder return plan.

기 발표한 주주 환원 계획의 후속 조치를 포함해서 앞으로도 주주 가치 제고를 위한 적극적인 노력을 지속해 나가도록 하겠습니다. Going forward, we will continue to take proactive steps to further enhance shareholder value, including follow-up actions on the previously announced shareholder return plan.

두 번째 질문에 대해서 답변드리겠습니다. 당사는

25년 10월부터 멕시코 멕시칼리 생산지를 추가로 운영하면서 북미 시장에 대한 역내 생산지로는 미국 테네시, 멕시코 몬테레이를 포함하여 3개 생산 거점을 운영하고 있습니다. 역내 생산지의 생산성 개선을 통한 공급 케파 극대화로 역내 공급 비중을 확대 중에 있습니다.

Let me answer your question on HS. With the start of operations of our Mexicali plant in Mexico since October 2025, we have three local production sites serving the North American market, including our site in Tennessee, US and in Monterrey, Mexico.

We intend on expanding the share of local production through increased capacity drawn from greater productivity. 구체적인 숫자를 말씀드리기는 어려우나 생산지 추가 운영과 기존 생산지의 생산성 개선을 통해서 역내 공급 비중은 26년 60% 수준까지 확대될 것으로 예상하고 있습니다.

We cannot provide the details, but we believe the share of local production will reach levels up to 60% by 2026, facilitated by the additional plant and enhanced productivity. Thank you.

다음 질문 부탁드립니다.

Next question, please. 다음으로 질문해 주실 분은 교보증권의 최보영 님입니다.

MS 본부 관련해서 TV 시장이 구조적으로 어려운 것으로 알고 있는데요, 이와 관련해서 2026년도 MS 본부 매출 및 수익성 전망과 흑자 전환 가능성 문의드립니다. 두 번째 질문은 ES 본부인데요, 현재 시장에서 AI 및 관련 산업에 대한 관심이 높은데요, LG전자의 칠러 사업 및 데이터 센터용 냉각 솔루션의 현재 실적과 26년 실적 전망, 그리고 중장기 실적 전망에 대해서 문의드립니다.

감사합니다. Yes, thank you for the opportunity.

I also have two questions, one for MS and the other for ES. For MS, I believe that the TV industry still faces a challenging environment.

What is the sales and profitability outlook for MS in 2026? Will you be able to turn a profit?

My second question is for the ES Business Division. AI is one of the hot topics in the world today, and I'm curious to know how are the chiller business and data center cooling solutions currently performing, and what is the outlook for 2026 and the mid to long term?

네, 위원님 질문 감사합니다. 그

TV하고 MS 사업 관련해서는 MS 경영관리 담당께서 좀 답변을 주시고요, 칠러 사업 관련해서는 ES 경영관리 담당께서 답변 주시면 될 것 같습니다. Yes, thank you for your question.

For your question on TV and MS performance, it will be answered by the head of MS Business Management Division, and for the chiller, it will be answered by the head of ES Business Management Division. 네, 첫 번째 질문에

MS 본부 관련 내용을 좀 말씀을 드리겠습니다. 2025년도 MS 본부 매출은 TV 등 주요 제품군의 수요 성장 모멘텀이 없었고 업체 간 경쟁 심화로 감소를 하였던 것입니다.

Let me answer your question on MS. Sales in 2025 declined with heightened competition and dampened growth in demand for key products such as TV.

수익성 측면에서 보면 2024년 말 본부 통합한 그 시너지를 통한 운영 효율 개선, 또 해외 생산지의 스마트 라인 구축, 재료비 절감 활동 등 추진했습니다만, 프리미엄 제품군뿐만이 아니라 보급형 제품군에도 업체 간 경쟁이 심화되었고 이는 경쟁 비용 증가와 판가 하락으로 이어지면서 영업 적자를 기록하게 되었던 것입니다. For our margins, we drove greater operational efficiency through synergy across the integrated division in 2024 end, added smart lines in overseas production sites, and reduced raw material costs.

These efforts, however, were offset by heightened competition in not only the premium, but also mass-tier lineups, leading to greater competition costs and lower selling price, and ultimately operating loss. 금년

2026년에는 앞서서 말씀드린 바와 같이 동계 올림픽, 월드컵 등으로 스포츠 이벤트에 대한 수요 개선 기대는 있습니다. 하지만 거시경제 불확실성이 지속되고 있고 메모리 등 일부 부품 가격 상승분의 판가 반영에 따른 부정적 수요 영향도 있기 때문에 시장 수요가 전년 대비 약간의 성장 또는 비슷한 수준으로 예상되고, 저희들 매출은 시장 수요로 좀 말씀을 대신하도록 하겠습니다.

Major sporting events, such as the Winter Olympics and the World Cup, in 2026 may push up demand, but with headwinds such as ongoing macro uncertainty and rising component part prices, including memory chips, downsides on demand persist as well. Accordingly, market demand is projected to climb slightly YoY or stay at levels seen last year.

For sales, the answer on demand I hope will answer the question.

MS 본부는 지속적인 고객 가치 제고를 바탕으로 한 제품 경쟁력 강화를 통해서 전년 대비 매출 확대를 추진해 나갈 것이고, 또 원가 경쟁력의 혁신적인 개선, 모든 오퍼레이션 효율성 증대를 통해서 수익성 개선에 집중해 나갈 것입니다.

We will increase our sales through a stronger product advantage that stems from enhanced customer value. We will improve our margin with a cost advantage coupled with greater efficiency across all of our operations.

그리고 webOS 플랫폼과 B2B 사업의 경쟁력 제고를 통해서 신규 수요 창출 및 시장 선도 노력도 지속적으로 해나가도록 하겠습니다. In addition, we will continue to build on our webOS and B2B business to create new demand and lead in the area.

다만 그 지정학적 이슈로 인한 경영 환경의 불안정성이 지속되고 있고 반도체 가격 상승과 시장 경쟁 심화 변수가 지속되고 있기 때문에 현 시점에서 연내 흑자 전환 여부에 대해서 확정적으로 말씀드리기는 어려운 점을 좀 양해를 부탁드리겠습니다. 이상입니다.

Uncertainty remains from geoeconomic shifts, and the market is prone to greater competition and rising chip prices. Hence, it is difficult to comment on whether we will be able to turn a profit by the end of the year.

Thank you. 네, 칠러 사업 현황과 전망에 대해서 답변드리겠습니다.

25년의 경우 아시다시피 트럼프의 관세 정책, 미·중 갈등의 심화, 그리고 중동 및 유럽의 지정학적 리스크 등 경영 환경의 불확실성이 지속되면서 글로벌 산업 전반에 대한 투자 감소가 있었고, 한국의 경우 에너지이용 합리화법 개정 등의 영향으로 칠러 사업 전체적으로는 상당히 힘든 한 해였습니다만, 데이터 센터 향 수주 실적은 전년 대비 3배 수준으로 성장하였습니다.

Now let me answer your second question for the ES Business Division on the chiller business's status and projections. In 2025, the chiller business faced an overall challenging environment amid continued uncertainty in the global business landscape.

Factors such as the implementation of US tariff policies, escalating US-China tensions, and geopolitical risks in the Middle East and Europe led to a broad decline in investments across the global industry. In addition, the revision of Korea's Energy Use Rationalization Act had a negative impact on the chiller business as well.

Despite these headwinds, orders for data centers increased threefold year-over-year.

26년은 본격적인 수주 확대와 함께 기 확보되어 있는 해외 지역 향 데이터 센터 칠러 공급과 고효율 인버터 스크롤 확대로 상당한 수준의 매출 성장을 예상하고 있으며, 특히 당사의 원 LG 역량을 기반으로 데이터 센터 냉각 솔루션을 강화하고자 합니다.

In 2026, we expect a substantial increase in sales, driven by a full-scale expansion of new orders, previously secured overseas data center chiller projects, and the expansion of high-efficiency inverter scroll products. Leveraging our One LG capabilities, we also plan to further strengthen our data center solution offerings.

또한 데이터 센터 사업을 포함한 칠러 사업 전체

27년 1조 원 매출 목표도 순항 중에 있으며, 중장기적으로 지속적인 매출과 수익 성장을 달성해 나가겠습니다. 이상입니다.

Furthermore, the chiller business, including data centers, remains on track toward its 1 trillion won total sales target by 2027. Over the mid-to-long term, we aim to achieve sustained growth in both sales and profitability.

Thank you. 다음 질문 부탁드립니다.

Next question, please. 다음으로 질문해 주실 분은 한국투자증권의 박상현 님입니다.

2025년 가전 구독 사업이 크게 확대되는 것으로 알고 있습니다. 매출하고 수익 기여도 등 25년도 연간 가전 구독 사업 현황에 대한 설명을 부탁드립니다.

그리고 2026년 사업 확대 계획 등 향후 전략 방향성에 대해서 공유해 주시면 감사하겠습니다. 두 번째 질문은 현재 메모리 가격을 포함해서 금속 등 각종 원자재 가격이 상승하고 있습니다.

이와 관련한 회사의 대응 방안이 있는지 문의드립니다. 특히 MS 본부의 경우 메모리 가격 상승에 PC, TV 등 제품들이 많은 영향 받을 것으로 예상이 되는데, 이와 관련한 해당 제품군에 대한 구체적 대응 방안 공유 부탁드립니다.

이상입니다. Yes, thank you for the opportunity.

I also have two questions, one for HS and the other for MS. For HS, your subscription business has gone through impressive expansion in 2025.

Can you highlight your annual performance for 2025, including the details on sales and profit contribution, as well as your direction for 2026? My second question goes for MS.

Prices of raw materials, including memory chips and metal, are on the rise. How are you responding to this?

I believe your PC and TVs are especially prone to the rise in memory prices. How will you address this?

구독 관련해서는 다른 사업본부들도 관련이 좀 있긴 하지만 전반적으로

HS 영향이 좀 크니까 HS 경영관리 담당께서 좀 답변해 주시면 좋을 것 같고요, 메모리 관련해서는 MS 전무님께서 좀 답변 부탁드리겠습니다. For your question on subscription, I know it involves a lot of other businesses, but it will be answered by the head of HS Business Management Division, and for our memory price rises, it will be answered by the head of MS Business Management Division.

가전 구독 사업에 대해서 말씀드리도록 하겠습니다. 말씀하신 것처럼

25년 LG전자의 가전 구독 사업은 국내외에서 큰 폭의 성장을 이뤘습니다. 국내에서는 가전 시장 경쟁이 구독 중심으로 전환되는 흐름 속에서 대형 가전 구독의 지속적 확장과 구독 적합형 제품 및 서비스 고도화를 통해 안정적인 성장세를 유지했습니다.

이에 따라 매출 2조 원을 돌파하며 확고한 시장 지위를 확보했습니다.

Let me answer your question on your subscription. As you have mentioned, our subscription business did undergo impressive growth both home and abroad in 2025.

With competition in the domestic market evolving to focus on subscriptions, we were able to sustain a stable growth trajectory by increasing our lineups of large white goods, while identifying potential products and delivering better care services. As a result, our sales exceeded 2 trillion won, positioning us strongly in the market.

해외에서는 아시아를 중심으로 사업을 확대하며 견조한 성장세를 이어가고 있습니다. 말레이시아와 태국을 비롯해 기 구축된 법인 인프라 기반으로 대만과 싱가포르까지 확장해 전년 대비

40%가 넘는 매출 성장을 달성했습니다.

We see business expanding overseas as well, especially in Asia, where the growth momentum is strong. Drawing on the infrastructures we have in Malaysia and Thailand, we have expanded the business to include Taiwan and Singapore, and sales have thus grown beyond 40% since last year.

26년에도 당사는 대형 가전 중심의 구독의 최적화된 제품과 당사 브랜드 샵 외의 판매 채널 확대로 매출 성장을 이어가고, 판매, 배송, 설치, 정기 케어 서비스 등 고객 접점별 인프라 개선 및 고도화 활동을 통해 사업 경쟁력을 강화할 예정입니다. 아울러 당사는 서비스 구독 확대와 함께 B2B 구독 등 다양한 사업 형태를 지속 발굴해 포트폴리오를 다변화하고 있으며, 이를 통해 신규 고객층 확보와 중장기 성장 기반 강화를 추진할 계획입니다.

In 2026, with greater offerings, especially of large white goods, and addition of sales channels beyond our Best Shops, we will continue to drive sales growth. We will also build on our business prowess with greater improvements and efforts made across our customer touchpoints, spanning sales, delivery, installation, and care services.

In laying the groundworks to capture a new customer base and mid-to-long-term growth, we will continue to diversify our portfolios not only through subscriptions, but also by identifying various business models such as B2B subscriptions. 이어서 그 두 번째 질문에 대해서 좀 답변을 드리도록 하겠습니다.

AI 서버 수요의 급증으로 메모리 제조사들의 서버 향 커패시티 집중이 지금 가속화되고 있고, 이러한 영향 등으로 공급 부족 현상이라든지 가격 급등이 지속되고 있는 상황입니다.

Let me answer your second question. On the back of the surge in demand for AI servers, memory makers have rapidly reallocated their capacity to servers, resulting in supply shortage and price spikes.

메모리 반도체 시장은 지금 예상을 뛰어넘는 슈퍼 사이클에 진입한 것으로 보이고, 공급상의 제약은 장기간 이어질 가능성이 높다고 보고 있습니다. An unprecedented memory supercycle has begun, which will weigh on supply over the long term.

주요 메모리 협력사와 보다 더 긴밀한 협력을 통해서 필요한 물량을 좀 확보해 가고, 공급망 안정화를 적극 추진해야 하는 상황입니다. This prompts us to proactively seek closer ties with our memory partners and ensuring stability in supply and across the supply chain.

이에 따른 그 대응 전략을 말씀을 드리면 주요 협력사와 공급

MOU 체결, 또 공급선을 다변화해 나가고, 부품을 이원화, 또한 공급 업체와의 긴밀한 협의를 통해서 선행 재고를 확보해 가는 등 공급망 안정화를 적극 추진하고 있습니다.

In detail, our strategies involve the signing of supply MOUs with key partners, supplier diversification, dual sourcing, and closer cooperation with suppliers for stockpiling to ensure overall stability across our supply chain. 다만 일정 수준의 그 원가 상승 부담은 불가피해 보이고, 또 메모리 비중이 높은 제품군을 중심으로 판가 인상 압력도 더욱 커지고 있습니다.

이에 일부 판가 인상을 포함해서 추가적인 원가 절감, 스펙 최적화, 그리고 프리미엄 중심의 포트폴리오 조정으로 손익 영향을 최소화해 가도록 하겠습니다. 이상입니다.

It will be hard to dismiss a rise in cost, and the pressure is especially high among memory-intensive products. We will therefore mitigate the impacts on our margins through partial price raise, additional cost reductions, optimizing our specifications, and modifying our portfolio to be centered on premium products.

Thank you. 다음 질문 부탁드립니다.

Next question, please. 다음으로 질문해 주실 분은 미래에셋증권의 박준서 님입니다.

VS 사업부 관련해서 두 가지 질문이 있습니다. 먼저 물류 비용 관련 질문입니다.

25년 4분기 물류비 집행 현황에 대해 간단히 설명 부탁드리고, 이를 바탕으로 26년 물류비에 대한 회사의 전반적인 전망이나 관리 방향이 있다면 공유 부탁드립니다. 두 번째로 VS 사업부 관련 질문입니다.

최근 VS 사업부에서 분기별로 안정적인 수익성 흐름이 이어지고 있는 것으로 보이는데, 이에 대해 회사에서 어떻게 보고 계시는지, 그리고 VS 사업부의 중장기적인 수익성 목표에 대해 공유 부탁드립니다. 감사합니다.

Thank you for the opportunity. I have two questions, one for the logistics and the second for the VS Business Division.

For the first question, what were the logistics costs in the fourth quarter of 2025, and what is the logistics cost outlook for 2026, and how is LGE going to manage through its strategies? My second question for the VS Business Division is: Recently, the business division has seen a stable profitability throughout the quarter, and how does LGE look at this throughout the quarter?

Also, what is the VS Business Division's mid-to-long-term target profitability? 질문 주셔서 감사합니다.

물류비 관련해서는 전사 관련된 내용이니까

IR에서 답변을 드리면 될 것 같고요, 그 VS 수익성 개선된 게 회사에서는 참 자랑거리인데 관련해서 저희 VS 경영관리 담당께서 말씀 주시면 좋겠습니다. The first question regarding logistics costs will be answered by the head of Investor Relations Division, and the second question on the VS Business Division's profitability, which is also one of the things that we're very proud of, will be answered by the head of VS Business Management Division.

물류비 관련해서 좀 말씀드리겠습니다. 4분기 같은 경우는 미국 주요 거래선의 주문 수요에 대해서 저희가 좀 재고를 보충해야 됐기 때문에 창고하고 트럭 비용이 조금 증가를 했습니다.

그래서 전체적으로는 전년 대비 소폭 상승한 상황입니다.

Let me walk you through the fourth quarter 2025 logistics costs. Logistics costs in the fourth quarter of 2025 increased slightly year-over-year, largely attributable to higher warehousing and trucking expenses, driven by inventory replenishment to meet order demand from major US retail partners.

올해

26년 같은 경우에는 관련된 해상 비딩 결과가 지난해 12월경에 좀 완료가 됐습니다. 전년 대비해서 해상 운임이 조금 낮아질 걸로 저희는 기대하고 있습니다.

또 해상 외 트럭과 창고 운영 관점에서 보면 26년 올해도 세계 주요 국가의 인건비, 또 물가 인상 등으로 물류비 인상 압박이 좀 있을 걸로 예상하고 있습니다. 다만 미국 중심으로 주요 법인들의 물류 효율을 개선하는 태스크 활동을 계속하고 있기 때문에 추가적인 손익 개선을 위해서 열심히 노력을 하겠습니다.

For 2026, following the results of the 2026 ocean freight bidding process completed in December 2025, we expect ocean freight rates to decline compared to the prior year. However, cost pressures related to trucking and warehousing are expected to persist in 2026, reflecting rising labor costs and inflation across major global markets.

In response, we have continued to launch tasks and initiatives to enhance logistics efficiency across our subsidiaries, with a particular focus on the US to further improve profitability. 예,

VS 본부 수익성 관리 및 수익성 목표에 대해 답변드리겠습니다. 최근 전기차 캐즘 장기화, 친환경 정책 후퇴, 관세 이슈 등 거시적 환경 변동성 확대에 따른 영향이 일부 우려되지만 지속적인 모니터링과 글로벌 완성차 OEM과의 협력을 강화하여 시장 상황에 유연하게 대응할 수 있는 운영 체계를 구축하고 제품 믹스 개선과 함께 운영 비용 최적화를 기반으로 지속적으로 견조한 수익성을 유지하고자 합니다.

향후 전기차 수요 상황이 점차 개선된다면 안정적인 수주 잔고 기반의 매출 성장에 힘입어 중장기적으로는 하이 싱글 디짓 수준에 근접하는 수익성 달성을 목표로 삼고 있습니다. 이상입니다.

Let me also answer your second question regarding the VS Business Division's profitability management and the mid-to-long-term target profitability. While heightened macroeconomic volatility driven by a prolonged EV chasm, the rollback of environmental policies, and ongoing tariff issues continues to pose challenges, we are strengthening our monitoring efforts and deepening collaboration with global OEMs to build an agile operating framework that allows us to flexibly respond to changing market conditions.

Through continued improvements in our product mix and ongoing optimization of operating expenses, we remain committed to securing solid profitability over the long term. As EV demand gradually recovers, we expect sales growth to be supported by a solid order backlog.

Over the mid-to-long term, our goal is to achieve profitability approaching high single-digit levels. Thank you.

다음 질문 부탁드립니다. Next question, please.

현재 질문을 요청하신 분은 없습니다. 질문을 하실 분은 전화기 버튼의 별표와

2025년 4분기 LG전자 실적 발표 컨퍼런스 콜을 마치도록 하겠습니다. 어려운 환경에서도 저희가 주주 환원, 또 신용 등급이라고 하는 좋은 소식을 들려드릴 수 있어서 기쁘게 생각하고 있고요.

추가적으로 질문이 있으신 분들은 LG전자 IR 팀으로 연락 주시면 자세한 설명을 드리도록 하겠습니다. Since it's Friday afternoon, we will end our earnings call here.

This brings us to the end of LG Electronics' earnings release conference call for the fourth quarter of 2025. We're very happy to give out good news regarding shareholder returns and a raise of credit rating.

If you have any further questions, please contact the IR team. Thank you.

감사합니다. Thank you.