LG Slides for Washers Safeguard Hearing at U.S. International Trade

Commission

John Riddle

Senior Vice President of Home Appliances,

LGEUS

LG's Latest Innovation - TWINWash

WASH TWO LOADS AT THE SAME TIME

source: LG Electronics

LG's Product Portfolio . . .

Business Un i t

Electronics Appliances

Young Adul t (15+)

CD

- t - CD o ro o> t ; i _ u)

.ro <u r~ Young Adul t / Family (20 to 4 0 )

r Family (25 to 55)

Source: LG Electronics

Millennials are the Fastest Growing Segment for Washer Consumption

Share of Washer Purchases by Generation

Gen 2 (born after 1995) 0

Q l Q2 Q3 Q4

y /

Q l Q2 Q3 Q4 Q l Q2Q3 Q4 Q l Q2 Q3 Q4 Q l Q2 Q3 Q4 Q l Q2 Q3 Q4 Q l Q2 Q3 Q4 Q l Q2 Q3 Q4 Q l Q2

2009 2010 2011 2012 2013 2014 2015 2016 2017

Source: TraQline, Washing Machines

The Loneliest Guy in Town

Brand Share and Market Share Comparison

Market Share Change Analysis - 2012-2016

• Conj*d«r«tion Rat* Effect • Oth»r Effects T<*»1 CK»nf• .n M/S

I

1,000

800

600

400

200

0

•200

-400

•600

-800 Samsung I G Whirlpool Maytag G E Ken more

Sourer Tr*oj«f*. Wjvh.ng M-xrwnrv

Joshua Bunde

Regional Account Sales Manager, LGEUS (former purchasing manager at Conn's)

James P. Durl ing Curtis, Mallet-Prevost, Colt & Mosle

Exclusion for Korean Imports

Imports from Korea a Shrinking Part of a Growing Market

Rest of Market Korea

c CD 3 0

2012 2013 - 2014 2015 2016

Source: Table IV-1, page IV-3 of pre­hearing report

Several Other Causes More Important

• pricing lower-profit washers and higher profit

dryers together,

• the importance of brand deterioration, and

• imports from countries other than Korea

Volume of Korean Imports Much

Less Important than Other Imports

• All Other Imports • Korean Imports

2012 2013 2014 2015 2016

Source: Table l l - l , page II-2 of pre­hearing report

Professor Ludema Economic Study

Over 2012 to 2016 period, no effect from Korean imports; a benefit since market share was falling;

Over 2015 to 2016 period, Korean imports only l / 4 t h the impact of other imports; and

Over interim period, Korean imports only l / 8 t h

the impact of other imports

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