June 2014 NEWS LETTER. Participating in 2014 Neocon World Trade Fair

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1 Participating in 2014 Neocon World Trade Fair Our company participated in 2014 Neocon World Trade Fair, the North America s largest interior design fair, accelerating our effort to expand market presence in North America, the world s largest interior material market. Nearly 700 firms and 40,000 visitors with high interest in the latest trends of interior design components, such as construction material, furniture and, and lighting have participated in Neocon. Our company presented a variety of new products, including HI-MACS and its unique custom-color design solution, Design lab that allows customers to choose their favorite colors. Some of the other products included Viatera and Techtop, featuring a built-in wireless charger in solid surface. Techtop, in particular, received popularity from spectators for its convenience that allows users to charge their cell phone wirelessly on top of the Kitchen Island or table at home as well as in public places such as hotel, restaurant and airport lounge. Our company also introduced a series of new products, including Metallic that features metal feels, Innoglass that provides exotic interior look and feel using tampered glass material, and Viatera Musica Collection, which expanded the color/pattern selections for customers. Our company operates a manufacturing factory of HI-MACS and engineered stones in North America and plans to increase market presence by expanding distribution network through Home Depot, the North America s largest construction materials distributor and introducing custom-made products designed to meet local needs. Bong-soo Kim, the head of US branch, said Now interior materials go beyond their original functions from creating beautiful space to having a sophisticated technology and expanding their domain into making our living style more convenient and added LG Hausys will sustain its growth as a leading provider of interior design materials in North American market by providing highly differentiated products that exceed customer expectations based on our world class technology and design capability along with aggressive marketing activities. 1/6

2 LG Hausys published 2014 Sustainability Reports Our company has published 2014 Sustainability Reports and demonstrated the performance of sustainable management to various stakeholders of the company. Sustainability Reports that contains a variety of activities and accomplishments in economic, environmental and social context for sustainable development is designed to make our commitment to sustainable development and incorporate valued opinions of our stakeholders into our management. This year s Sustainability Report has focused on effectively delivering the corporate vision of LG Hausys through a variety of managerial activities for our stakeholders. In particular we introduced green management objectives, greenhouse gas reduction targets and subsequent activities for their implementation and human-friendly and eco-friendly products leadership in great detail. On top of this, the Reports presented our activities that contributed to the development of local communities while preserving nature. Company also presented a compliance management that encourages fair competition among all employees, joint technological development and patent application for mutual growth and development with contractors, reinforcing contractor capabilities through business and financial supports and communication between our contractors and management. Our company introduced Sustainability Reports in 2012 for the first time in domestic construction material industry, solidifying our image as a market leader and is planning to sustain efforts to promote communication with our stakeholders. Meanwhile, our company s Sustainability Reports is published in both Korean and English for our many stakeholders, including international organizations, government, shareholders and customers. It is also available on our official website ( Hausys.co.kr). 2/6

3 Demonstrating our design superiority through creative design activities Activities to ensure design leadership of Design Center What is behind the success of Apple s iphone? The key factor among many was its superior design with user friendliness taken into account. Today, the customer has a greater level of expectation from the products than before, which the product now must incorporate the user friendliness with a qualifying exterior looks as well. Our corporate Design Center seriously ponders on how to develop both convenient and stylish-looking products by promoting our design excellence through a variety of activities in and out of the organization with regards to design trends. Solidifying marketing leadership through Design Trends Seminar and Trends Forum Design Trends Seminar is designed to forecast interior design trends based on the analysis of social and cultural issues, consumer lifestyle and design interests at home and abroad. Our company convened the very first seminar in this industry and this year marks its 15 th anniversary. Participated by around 800 design professionals and other engaging in design industry, it has now become one of the most recognized event in the design industry. Trends Forum is an activity of Design Center that proposes product concepts to different business divisions of our company based on the analysis of social trends dedicated to respective divisions. This is necessary as different divisions engage in different businesses, including B2B(Business-to-business) and B2C(Business-to-consumer) with different strategic markets and product portfolio. This year s Trends Forum in Automotive Materials and Parts Division was especially fruitful and worthwhile as an occasion to discuss future products as it was accompanied with TA Workshop participated by engineers as well as relevant organizations in Head Office. 3/6

4 Winning world s top three awards and partaking in fair proves design leadership. World s top three design awards include IDEA Design Awards in US, if Design Awards (International Forum Design), and Red Dot Design Award both in Germany. Our company was awarded in all these three awards, grabbing 9, 11, 15 and 6 in 2010, 2011, 2012 and 2013, solidifying our reputation as one of world s leading global design firm. In addition, our company has participated in Milan Design Week, the world s largest furniture/architect/interior fair, since 2011 and introduced brilliant ideas and concepts to make our design competences known worldwide. This year s HI-MACS product called Sparkle Collection that sought to create border-free space as future residential environment attracted positive reviews for its excellence of expressing the relationship between humans and space in a sensible manner. Design activities with deep understanding of consumers based on analysis of their lifestyle, not just product appearance. The dictionary definition of design is the creation of a plan or convention for the construction of an object or a system with practical purposes as in clothing, industrial products, architect etc. That is, a product design does not only cover the external appearance but it rather encompasses a full range of its components, including practical use and structure. That explains why our company actively seeks to understand consumer behaviors by closely inspecting and investigating changes in people s lifestyle and their impact on market through Design Trends Seminar and Trends Forum. It is highly anticipated that Design Center will engage in a variety of proactive activities regarding design trends, make our design superiority widely known worldwide and hopefully get recognized. 4/6

5 Another challenging attempt to leap into global No.1 with artificial marble HI-MACS! Surface Material Division joined Turkey/Taiwan/Middle East Fairs HI-MACS, acrylic solid surface product proudly presented by our company, features outstanding flexibility that allows users to determine their favorite design and shape in any way they want and is commonly favored by renowned architects worldwide. You may be able to see it not just in buildings designed by famous architects but also in everyday life, which includes residential or work environment. HI-MACS is popularly used for Kitchen Island, desk and exterior of furniture. The North America is the world s largest strategic market for HI-MACS, but our expectation goes beyond landing on a single market. We continue to reach on new potential customers worldwide, including Europe, Asia and Middle East to expand our global presence. Expanding global presence of HI-MACS As part of this commitment, our company took part in construction and design materials fair held in Taiwan, Turkey and Middle East in May this year and successfully promoted HI-MACS in overseas market through effective communication with local spectators and customers. Particularly, we presented consistent concept of Future Housing with HIMACS in three major world fairs and introduced future-oriented kitchen, working table, bed room and bathroom designed out of HI-MACS. HI-MACS exhibits that feature streamlined design and harmonious combination of diversified colors were able to communicate superior processability and design impact. 5/6

6 Delivering HI-MACS all over the world Our company is planning to sustain efforts in colorful events that will appeal to local customers worldwide to raise the consumer awareness of HI-MACS in emerging markets in addition to US and Europe and to obtain truly global No.1 position. In addition, we are going to present design solutions by space through the exhibition booth with consistent concepts that represent superiority of HI-MACS. We cannot help anticipating they will create customer alignment opportunities in untapped markets around the world. Our company will sustain promotion and marketing efforts until HI-MACS is recognized as the world s most renowned acrylic sold surface. <Interior Design and Materials Fair, Taiwan> Period: May 1(Thu)-4(Fri), 2014 Venue: Taipei World Trade Center Our booth area: 54 m2 (9m x 6m) Feature: Participated by some 200 construction and interior design materials providers worldwide, it allows visitors to get a bird's eye view of Taiwanese construction materials, furniture, lighting equipment etc. <Yapi Fair Istanbul> Period: May 6(Tue)-10(Sat), 2014 Venue: TUYAP Fair and Congress Center Our booth area: 60 m2 (10m x 6m) Feature: This is the Turkey s largest construction and interior design materials fair participated by some 1,150 businesses and over 100,000 visitors worldwide and that increasingly attracts keen attention of global architect industry. <Dubai INDEX Fair> Period: May 19(Mon)-22(Thu), 2014 Venue: Dubai World Trade Centre Our booth area: 72 m2 (12m x 6m) Feature: This year marks the 24 th anniversary of this international construction and interior design materials fair participated by around 616 businesses and 20,000 visitors worldwide 6/6

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