LG U+ pursues dividend payout ratio increases from a long-term perspective to enhance shareholder value and expand shareholder returns. Our dividends are determined based on a balance between securing resources for long-term growth and shareholder returns, comprehensively considering business environment factors such as financial performance and cash flow.
LG U+ will comply with the dividend policy of "returning at least 40% of net income (excluding one-time non-recurring profits) based on separate financial statements to shareholders" for three years (FY2024-FY2026), and plans to maintain annual cash dividends at least at the 2023 fiscal year per-share dividend level. Additionally, as disclosed through the Corporate Value Enhancement Plan in November 2024, we plan to expand the shareholder return rate up to 60% through flexible treasury stock purchases in fiscal years when cash flow is sufficiently secured in the mid- to long-term.
Through market communication via this mid- to long-term dividend policy, we will strengthen sustainable management and improve predictability of shareholder returns.
LG U+ discusses dividends in depth at the Board of Directors level, immediately communicates results through 'cash/in-kind dividend decision' disclosures, and actively communicates expected dividend outlooks with the market through quarterly earnings conference calls.
