LG Electronics, which is currently undergoing a strategic transformation to become a "Smart Life Solution Company," focusing on innovation and growth under its Future Vision 2030 strategy launched in 2023, has outlined plans to expand its business to meet these goals.
During an investor forum on August 21 at LG Sciencepark in Seoul, CEO William Cho reviewed the company's progress, asFuture Vision 2030 has set ambitious "Triple Seven" targets for the company: a 7% average growth rate, 7% operating profit, and an enterprise multiple (EV/EBITDA) of 7.
To achieve these objectives, LG is focusing on four key areas: maximizing the potential of existing businesses, expanding platform-based service models, accelerating growth in the B2B sector, and developing new ventures - one of which might be quite unexpected.
Liquid immersion cooling
The company is particularly focused on its Heating, Ventilation, and Air Conditioning (HVAC) business, which has seen over 15% annual growth in the past three years, with overseas sales more than doubling. The HVAC business offers a broad portfolio, from residential air conditioners to commercial systems for large buildings, schools, public institutions, and industrial facilities.
LG plans to leverage its expertise in high-efficiency cooling technologies to target the AI-driven data center market, a crucial growth area. Additionally, the company is exploring new solutions like liquid immersion cooling, which provides a more efficient way of managing the heat generated by computer systems.
Tom’s Hardware likens this move from LG to how Levi’s Jeans built its business during the gold rush. "Instead of looking for gold, it sold the tools and clothes the miners needed. So, the company was still in a good position even after the gold rush (or the AI rush) ended.”
At the investor forum, LG also outlined plans to shift focus from the consumer side to areas of potentially greater growth, stating, "By 2030, 50 percent of total sales and 75 percent of operating profit will come from B2B, platform-based, and new businesses."
Cho added, "These goals are rapidly becoming a reality. We will ensure that LG’s new value proposition is recognized by all stakeholders, securing sustainable growth and profitability over the long term."
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