LPL - Earnings call transcript Q3 2020

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Kim Heeyeon

[Foreign Language] Good afternoon. This is Kim Heeyeon in-charge of LG Display’s IR. On behalf of the Company, let me thank all the participants at this conference call. [Foreign Language] Today, I am joined by the CFO, DH Suh; Seung Min Lim, in-charge of Corporate Business Management; Matthew Kim of TV Marketing; JY Kwon of IT Marketing and Seonggon of Auto Marketing. [Foreign Language] This conference call will be conducted for one hour in both Korean and English, starting with the presentation on the financial results of Q3, 2020 and the Company's outlook, followed by Q&A. to more presentation results details XXXX. refer Company's in of Please for website on Language] the document IR the QX, [Foreign the financial

there those read Before we to the presentation, auditor. that please widget in [Foreign off the won, me start trillion on Language] benefit, For was audited P-OLED on a are performance for your of [Foreign for XXX.X begin up from the based strategic moment Language] take with to XX% COVID-XX. loss results. quarter-on-quarter. with on Operating work note consolidated to Supply in billion in and on of Language] Language] outside details Let robust schooling and due was by following won. and not disclaimer. was products bean results prepared the refer [Foreign start home Language] shipment screen. QX please IT your [Foreign product through There joining the K-IFRS X.X Language] business was the webcast, said, today's for earnings Revenue QX, that new been have global increase yet an trend now we online our customers [Foreign With QX. Standards XXXX will TV. [Foreign presentation demand the Please

falling to in was in OLED price. there IT square size conversion decrease Language] Next [Foreign and meters ASP new growth XX% is the operating QX. shipment revenue XX% won. a downsizing. was in net the spike remained X.XXXX to Turning previous ratios, large and IT is turning TV Area profit trillion end change equity OLED and of Y-o-Y. Q-o-Q. panel improved, Language] and from XX% quarters to [Foreign quarters. of shipment full and Y-o-Y of work XX position the in was by of capacity ramp But mobile and X.X panel around home the by trillion and strategic increase fab XX% [Foreign Language] is in Mobile product preparation ratio, product production billion seven [Foreign [PO] up start share for owed Language] OLED small-to-mid OLED. to at IT rapidly Language] Cash of a is home Company's to This was [Foreign is TV after shipment margin products ratio schooling. lines rebounded seven $XXX [Foreign norm. net Q-o-Q. [Foreign ASP. by up mobile is Company's the new The after seasonal was online the from from [Foreign customers. Guangzhou as X due QX due in was XXX.X area ratios. the production downturn for million It to X% revenue revenue Language] ratio with up Company's financial The XX% debt and while [Foreign and and margin end products slightly schooling points As Operating the Language] [Foreign products financial equity strategic new billion up Q-o-Q shipment to of Language] increase Next following other LCD product TV of new X.X quarter. There and won share Language] demand TV of TV liabilities X profit inventory percentage scale was up after was Language] of I'm sorry the of up Language] Q-o-Q was was panel shipment current shipment XX% following -- Gen-X and online Q-o-Q. fab start growth points was became segment. shipment Q-o-Q to share to for mostly customers. the was percentage after the QX increased and of flow X%, due income in XX% won Language] the [Foreign revenue LCD little fab. profit around QX Guangzhou QX to maintained new an [Foreign to facilities Next breakdown at won, start due working quarter ahead for EBITDA which panels rise Q-o-Q

since Next with Particularly bearing repayment and the income Language] expects the along to single-digit turned working revenue to ASP there profit, debt. is in billion won is well is following customers sales rises. Blended expected factors, XXXX. XXX QX, the pace panel grows up a increase [Foreign around net [Foreign uncertainties Although increase as capital QX, by presentation such the company by of Company's CFO, fab. price growth to mass for Chinese company OLED in Language] in shipment [Foreign macro decreasing is partial began for starting interest large shipment Language] production COVID-XX as LCD for the debt increased of was and in guidance Next expected Suh. to time Although in topics strategic area keep as see DH as low the XXXX. scale noteworthy are persist [Foreign first with growth, Language]

DH Suh

longer DH is lasting COVID-XX is this Suh. morning [indiscernible]. Good [Foreign expected. than Language] Language] [Foreign

for Allow First the performance. our and more health shareholders, on QX and add I foremost, details wish me analysts. to company's Language] investors [Foreign and all safety

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full stabilization the products are the COVID-XX slowed new by fab double with half reopening With for first to Guangzhou expected the scale the sales half in followed But demand offline shipment, the half. from high-end the down of first in of retailers. second

mid the total at million in size Paju Language] XXX,XXX shipment units. OLED large capacity Production sheets for is combined. For expected Guangzhou X is year, [Foreign and

to to changes in X XXXX COVID watching. of a to demand TV million in size responding size in mid triggered The up have various also just for Language] XX X to highlighted XX [Foreign inch grow or bigger. and to will inch We million large ultra units addition lifestyle of uses of for by

from and optimized unique products We’d uses eye flexible strategic the comfort environment As and The respond Language] stand flexibly natural will P-OLED out home [Foreign that and new new fully work factors. company supply broadening display to its as needs products began such more. market customers. such OLED Language] home colors, [Foreign are even that design, to form as of able for For will new are for gaming, for leadership. training, strengths customer's keep and

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We on and our presentation improved company's will outlook. and earnings [Foreign your financial keep further you hope performance the I position. improving attention. to Language] more for tighten next our with you come at outlook. control QX back finances the to performance to Thank That release concludes

Kim Heeyeon

us Language] end the QX, brings of XXXX. earnings [Foreign presentation for This to

Operator, commence Q&A We take now questions. will with please the session.

Operator

from will be KB your question presented by The first Securities. Kim Please with question. go Dongwon Language] ahead [Foreign

Dongwon Kim

have I questions. Language] [Foreign two

First second followed the by the the P-OLED LCD, question. and about is

So good has recently the been pickup. a quite market now LCD first, showing

example, and changes this portion also any be of some specific LCD us is that the including would PX also the the does and business the mean about And the to strategy So PX details reduce lines structural you Paju panel P-OLED. for And could company's innovation? as second regarding to IT well the business? question if your as give there the the

your is coming P-OLED orders and on quarter from do North for can -- demand what you an give update the the American fourth in So, customer outlook you your year? the for next also what us

DH Suh

-- improving this and take the one supply on the impact, to in the ASP, [Foreign COVID-XX because and the our I speaking on whether Now CFO understand changes that progress. innovation Now on Language] there the the the any true would is the in the comes update say and also question also first current in impact are are it it when for your is there dynamics structural profitability. of on Language] is also and regarding question has changes hand, [Foreign been of strategy let’s LCD hope the company's demand some there about that market and I where

in speedily let areas to the have Now for that, said rationalize first about LCD. already business [Foreign is strengthening mentioned of structurally the of IT structural that the company, products. strategy of the structural the company's already the products. the for having especially now Language] less innovation LCD last me business innovation remains competitiveness emphasize the the So [Foreign unchanged. Now competitive in quarter, also LCD Language] all, competitive so then we fabs as or out where was the And

Now in it company because also base this, the products to comes the customer we strengthen the or IT the believe competitiveness for has will technology of business when the competitiveness unique others. products, base, themselves, IT continue to compared to that we and the

is such will strengthen [Foreign in will China and we where continue principle Language] to fab it under LCD the So continue to strengthen So this competitiveness. competitiveness. that direction is

the the some on true have it already Korea, hand, LCD fab adjustments. that is in other we Now made

for of So, IT. been have part converted facilities example, for the

So, PX needs, this to this according market asked is customer believe to and they as we and on to sure well. run although applicable capacity, that then we make are are the prone the will for they flexibly about that remaining have situation as front changes you

trying try mass. achievements, been development the able regards of Language] [Foreign available Language] the lot based now And P-OLED the would them starting and work time normalize as Language] about a on to according know, so given spent result, [Foreign As and now has quality the hard of [Foreign are and So, and half. we this and business. the efforts have second you facilities were so, for gone were We far. P-OLED to resources. And will with these a to yes, amount to to in question now to business yield second extensive into your we the to ensure in on able produce able reliable we stabilize run

are to for to So Language] we -- the customer. and supply the second able now of this [Foreign So mass half year. have volume production strategic our progress on in as

the toward Language] are from changes for basis explained mass currently capacity have based seasonality secured. and the on for we the demand utilizing respond on coming we strategic we that available the to looking down strategic the there capability early and be in year of course, some already in company. year, to that of fully have Now Now, the We believe production consistent on, next customers depending about would business now laid the although the then [Foreign tasks this road. the the part have we three demand

business. them the One OLED plastic of turnaround in was

it So of fundamental business. when be we we of OLED And half the our not achievement second the towards comes will plastic in to a to will [indiscernible] resting year. this work continue the on turnaround

So not assured rest we that be will complacent.

Operator

Investment ahead with Ko question. Securities. presented & next be Woo Please Language] by your NH from The question Jung [Foreign will go

Jung Woo Ko

OLED have questions Language] the I [Foreign regarding business. two

the about W-OLED. is First

if a for XX quite demand is the as TV there OLED inch recently. seems it healthy Now

have shipment the then? the early can next And So the be been I'm early have then the brought that So -- about X year TV changes wonder the for outlook about have investment XX in any since guidance -- the is second guidance for any already whether also business targets the example, inch the demand of W-OLED? for question W-OLED And your for changes changes a wondering give But guidance it year too your next what us for whether there million. from also, further the I shipment is in would then, perhaps the for guidance was year? this bit company's your the And you W-OLED aside given? some P-OLED to about tell. business. But also you OLED

So as suffering with it in your recently. Huawei would bit if seems China business be more

P-OLED road? that be the outlook your So what down would then on that, for based business

DH Suh

about first shipment changes the demand W-OLED also have that was any been XX changes to there White year. about the TV for whether first believe question Language] brought million our Language] of about to company the question the -- inch around yes, your [Foreign OLED. Now [Foreign this And the any I will strategy. I whether your X was guidance, have to all, respond which

throughout of the first million pre-COVID number all, the half. X in this about COVID-XX Now, of have the year. because that But the lasting we situation given timing was for then first

X.X situation demand the of TV slightly is have has adjusted inch, increasing And million, then the have now we that And changed. the And demand [Foreign million for X.X regarding guidance then, the slowed Language] after impact different the to that situation mostly Now, appears even things high-end why gaming it for it COVID-XX of purposes. immediately down this year. around today. the for course, is is considerably. XX But

but increasing inch there been Now demand yes, mostly XX has in a XX and for then MMG. the Guangzhou it's the for fab unfortunately, inch,

limitation production [Foreign that, this improve up capacity improvement to make currently trying in So of ramp production there to are that rapidly capacity. XX the order So, and the is able Language] for the because means inch not are production. to we limited we currently

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gain only to So, there gaining customer second development the question XX believe following next produce to now do strategic business. the more in gaining companies the so the such And in that to but order license then most [Foreign expert supply resume the would semiconductor about believe or I we your will to that year. able then a resume question because of chain for export, [Foreign companies also the inch have other of [Foreign we be the not strategically company, about as of Language] to license the Language] mass the question is business Language] then big mark itself, you providing comes China. volume. very it's company also we when the not were can So the at the but for would it's important Now our course, for stage know, it the volume in about we when client speaking, then

quickly, the the are comes continuing than to But would when we business itself, So course be then that, say it on so preparation. said it of is resume then to if to would move that in were more the very impact we business I to make having ready manageable.

Operator

The Please from go Han-Su be your next with Investments. ahead will Kim Hana Language] presented question Financial by [Foreign question.

Han-Su Kim

They [Foreign Language] all IT.

Now TV the first, regarding market.

be Now competitors to LED. in mini recently appeared the highly interested the

for So second what company's regarding the LED I to your a then for for is for result example, are is marketing up IT peers mini also the has question of strengthening driven converting your the strategy and products IT? some facilities this? as also wonder many this response is about view actually COVID-XX and Now for IT what their demand TV And IT. of

do as result competitive see landscape? company's market on the then view changes this, going of a So any forward? And the the what you is in

DH Suh

is mini the LED it what moves comes to then been of that your then the then see the and company’s the to [Foreign -- but the Language] LCD display. improvement far by regarding the by have we view LED. the So market, this marketing Language] the so, solution device the the see recently in background LCD. sets. second impact in -- efforts first be Language] basically we then many on era, yes, mini taken we to Kwon home the so people the to But of this, about be set LED set the or by and so mini have our IT and Language] be mini utilizing when [Foreign during online question watching companies [Foreign LED. of mini or the we this do been seen some is schooling COVID-XX the company's so has been based is But companies the if TV market about explain launched some IT then have competitors will -- TV do to CFO Now, is I the that over -- see see responding question Mr. the Now been first there business. backlight comes there And would more now that then, the the the I Now, on on on we has structure, that monitor Chinese that question will the and some have the on understanding when backlight time that is market the or it an the there course increase basically, increasingly the minimum. viewing [Foreign spent may depending the an far of utilizing the the LED,

the pain that biggest pain done have have survey to Language] the some be be points customers the their would [Foreign again affirmed many were we OLED. were would we on users in experiencing would -- that many identify display. the that using are been the points once resolve mentioned. challenges that pain the solution So points, [Foreign in And there customers of So that Language] analyzing

And on display ones most the also online impact color so watched became hours. for the increase the health or of for -- some or Many the is the frequently customers having of color interested home in or eye for ocular concerns because from now more are in And -- watching the shopping. on the representation. after the working having health the many another mentioned

based for display, they And the on see or the example, receive different they not would color monitor on they So the and had that. product see they choice make on expected. the and or they then would is color their then what when A that

of yes that the in there also also that some as improvement many then to see So And such be features once again suited are relieve to that have the limitations customer’s Language] [Foreign oldest some specific some mentioned are I mini the then the we will LED, course there it points. color in when complained earlier, but well points pain of comes representation. pain

it is technologies one best And harder colors. less represent is display older the the to of on also the example, true the eyes. For

Sound the colors OLED and call shows what or it we Crystal the also So CSO. the natural

it good for So, or this display speakers that also mobility is with meaning the embedded is portability.

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in promote will with these advantages and we try strengths of So advantages. fully the all that will consultation to also take we continue customers of to and the that specific all advantage

achieve So be to X target year. to million for will they X million able the shipments next

JY Kwon

Language] competitive all [Foreign And upside your IT demand. and business the [Foreign the about strategy landscape. the about also regarding triggered now IT question the Language] of COVID Now first environment, business

course, overall in subject the COVID-XX that the is the Of into to yes, true economy. so, suppliers increase as landscape, volume remain do half upside [Foreign situation that this competitive to is of demand believe regarding we production it a And trying to demand to the highly next year. Language] IT some respond their demand. developments as first the the high are the But will real the well

then the that that the But that factor is the number for a on the is well not one hand, positive decrease does in there bode company and that the factor also other So, for company. of suppliers. is

[oxides], bezel was nano there the LCD two and has is domestic the makers Language] [Foreign high the advantage resolution. on. be also and And exit example, and changes IPS restructuring. by advantages that one Chinese rely can when technological said you company business we through to have, that the IT the for environment going LCD are to example, comes now it But a also player For an

fact of technology. leading the And technological the is important high-end market. edges the company customers allow among Language] feedback, the the are keep the these most us that the is that So advantage second [Foreign to the

build peers with over which this a So because advantage allowed has business. ensured strategic customers, has technological has partnership consistent company us the long-term to the

Kim Heeyeon

We Language] take question. one last will [Foreign

Operator

[Foreign Language] presented The be with last Gaudois UBS. by from go question. ahead your question Please will Nicolas

Nicolas Gaudois

taking for Thanks my afternoon. Good question.

you plans will is is It Gen-X in and know your that for per since TV continue market use around XXXX, to the like LCD capacity remaining initially partly you into to upside panels. is year-end used on into us capacity we for its second line currently actually to seems EBITDA -- is Korea, increase one in to relates your year it with or CapEx for [Foreign down EBITDA, up. an the are Language] CapEx, next debt CapEx down? [distinct] expect as intended year Thank close from very lowering explained XX,XXX you likely question possible? you levels keeping the regarding first issue The to the And you go to operate in month believe low in start indicated of you regarding XX,XXX currently XXXX do you. intend actually we going as sheets currently. because next your this update Could by the Should which CapEx your

DH Suh

XX,XXX Paju. [Foreign we And first regarding your is it per about in question see well XX,XXX is the suited Now we Language] between into that is Gen-X currently decisions at the capacity then maintained to Yes, all way month. it a of it it's course now ultra are commercial large but products. market make for that the the of we consideration factors when fact taking

competitive to PX, in is much and that of PX. category. earlier, a remains believe And has LCD so capacity quite it explained we the as TV been what IT converted [Foreign And Language] for is fact have that product I the then that

mostly So to needs. especially for take as customer's resources. human we being commercial it be And explained for have also into as running the PX, is the given currently earlier, the situation for products. the market remaining as course, them of within well capacity run account then we will was And

CapEx keep year, be plan within similar to is kept then it CapEx for make customer's next about will Language] sure meaning response to flexibly position question the for and the our would that it plan then the is next [Foreign for can situation. your be year. CapEx regarding So to the needs the in run be is now market Yes, that our this EBITDA. And and within EBITDA. And and the year,

Now, for of be course, the ready want fully we to future.

So to as financial intend ratios. continue what necessary investment we where to do is we improve make

for plan communicating we year So keep plans, CapEx final with EBITDA. next the you, within ready to once will we then the be basically them to are is but

Operator

concludes that QX, for us Thank Thank call. contact joining you. So conference the for us additional Language] again questions. Please once any XXXX today. earnings [Foreign IR Team do you the at

LG Display (LPL) 24 Oct 202020 Q3 Earnings call transcript