LG Electronics disclosed its second corporate value enhancement plan on the 17th. The company stated that it announced a more detailed additional plan following the first value-up program announced last October, which contained its mid- to long-term business goals and strategies, as well as its shareholder return policy.
LG Electronics explained the progress of its initial public offering (IPO) for its Indian corporations through this disclosure, which is being pursued as part of its corporate value enhancement efforts.
On the 6th, LG Electronics submitted the draft red herring prospectus (DRHP) for its Indian corporations IPO to the Securities and Exchange Board of India (SEBI) and plans to decide on the final listing based on market conditions and pre-demand forecast results.
LG Electronics decided to retire treasury shares acquired within the scope of distributable income next year to enhance shareholder value. The amount to be retired corresponds to approximately 761,000 shares, which is about 0.5% of LG Electronics' total issued shares.
The company explained that if the total number of issued shares decreases due to the retirement of treasury shares, earnings per share (EPS) and book value per share (BPS) are expected to rise, positively affecting shareholder value.
In addition to its shareholder return plan, LG Electronics stated that it plans to continue enhancing communication by transparently sharing business goals and strategies with investors. Previously, the company shared its mid- to long-term vision of becoming a 'smart life solution corporation' that connects and expands customer experiences in various spaces where customers live, through the announcement of its 2030 vision and the investor forum.
Additionally, the company presented its financial goals to achieve a '7·7·7 (average annual growth rate and operating profit margin of 7%, EV/EBITDA multiple of 7 times)' by 2030 and to reach consolidated revenue of 100 trillion won, excluding LG Innotek.
The company also announced a shareholder return policy applicable from the 2024 business year to the 2026 business year, stating that it will use more than 25% of its net profit based on consolidated financial statements for shareholder returns (excluding one-time non-operating profits). To enhance predictability for investors, it plans to set a basic (minimum) dividend of 1,000 won and start semi-annual dividends from this year.
LG Electronics plans to continuously review additional shareholder return plans and communicate with the market immediately regarding any decisions made thereafter.