Along with the rapid growth of our subsidiary, LG Energy Solution, our investments have been focused on growing our three future growth engines: Battery materials, Sustainability business, and New drugs development. These investments are aimed at increasing our revenue from KRW 31 trillion in 2022 to KRW 70 trillion by 2030 (excluding LG Energy Solution).
(Source : May 2023, CEO presentation)
However, timely investments are needed to lay the foundation for not only the battery business but also the three future growth engines to achieve this.
The scale of our investments on a consolidated basis, which includes LG Energy Solution, continues to increase every year, and an annual CAPEX of more than 10 trillion KRW is needed for the foreseeable future, including FY2023 (consolidated-basis).
Accordingly, we would like to announce the following dividend policy for the next three years (FY2023~ FY2025), a period of concentrated investments.
[Dividend Policy]
- Dividends are determined by comprehensively considering investment for growth, cash flow, financial structure, and dividend stability.
- For the next three years (FY2023~FY2025), intensive investments are needed in the three future growth engines (battery materials, sustainability business, and new drugs), thus, we aim to set the dividend payout ratio at 20% or higher based on consolidated net income (excluding one-time non-recurring income).
- Once growth from these investments is realized in earnest, we will strive to maximize shareholder return by delivering greater performance.
Dividends for each fiscal year shall be finalized through the resolution by the Board of Directors and approval at the Annual General Shareholders Meeting, and we look forward to keeping you updated on our progress.
| Division | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net income | 313 | 1,473 | 1,945 | 1,281 | 1,153 | 868 | 1,266 | 1,495 | 2,138 | 2,158 | |
| Total dividends | 154 | 460 | 460 | 368 | 331 | 295 | 295 | 295 | 295 | 295 | |
| Dividend Payout Ratio (%) | 70 | 42.44 | 25.48 | 151.84 | 49.02 | 31.24 | 23.65 | 28.73 | 28.73 | 33.93 | |
| DPR at face (%) | Common | 70 | 200 | 240 | 200 | 40 | 120 | 120 | 100 | 90 | 80 |
| Preferred | 71 | 201 | 241 | 201 | 41 | 121 | 121 | 101 | 91 | 81 | |
| Dividend per share (won) | Common | 3,500 | 10,000 | 12,000 | 10,000 | 2,000 | 6,000 | 6,000 | 5,000 | 4,500 | 4,000 |
| Preferred | 3,550 | 10,050 | 12,050 | 10,050 | 2,050 | 6,050 | 6,050 | 5,050 | 4,550 | 4,050 | |
| Dividend Yield Ratio (%) | Common | 0.7 | 1.6 | 1.9 | 1.2 | 0.6 | 1.7 | 1.5 | 1.9 | 1.3 | 2.1 |
| Preferred | 1.1 | 3.4 | 4.0 | 2.7 | 1.2 | 3.1 | 2.5 | 2.8 | 1.8 | 2.8 | |
