LG Electronics said it is targeting 100 trillion won ($77 billion) in sales by 2030 and plans some 50 trillion won ($38.5 billion) of investment as the company announced its future strategy.
The South Korean company also said in a regulatory filing it is aiming for an operating profit margin of 7 percent by 2030.
LG Electronics plans to pivot to a platform-based service business, grow its vehicle components business and others catering to corporate clients, and enter new markets such as electric vehicle charging and digital healthcare.
“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,” LG Electronics CEO William Cho said. “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.”
LG Electronics will focus on the transition to the platform-based service business model, acceleration of B2B areas and procurement of new growth engines based on competitive edge as three pillars to focus on customer experience. By 2030, the proportion of these three pillars in sales and operating profit is expected to increase to more than 50 percent.
Electronics 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.