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Operator
Good morning and good evening.
First of all, thank you all for joining this Conference Call.
And now we will begin the conference of the Fiscal Year 2021 Third Quarter Earnings Results by LG Display.
This conference will start with a presentation followed by a divisional Q&A session.
[Operator Instructions] Now we shall commence the presentation on the fiscal year 2021 third quarter earnings results by LG Display.
Unidentified Company Representative
morning. Good Language] [Foreign
Hall Display's Brian team [ph] is IR LG leader. This
me of the the behalf thank company, call. On conference let all this participants at
Senior Auto Marketing; President and Jin, of by Suh; Planning; IT Stephen Strategy joined Strategy CFO, President Corporate Marketing. Kwon, Seung Vice of in Vice Vice Kim, of TV Group; Vice I'm Ki-Joon Corporate Yong President charge Marketing; Lim, Today, Min and Ko, of of Jae the Hee-Yeon DH President
Unidentified Company Representative
will be Korean followed call the for one with [Foreign presentation both conference Language] for financial by and conducted hour in QX and a QX, The company's outlook XXXX starting English, Q&A. results on the of
Unidentified Company Representative
company's results [Foreign the today earnings Language] the announced of refer details release provisional to on the for QX website more in XXXX. financial IR Please the or Events section
Unidentified Company Representative
we to moment Before take Language] read the begin the please presentation, a [Foreign disclaimer.
Unidentified Company Representative
not standards an consolidated your [Foreign benefit are based Language] on have been that results Please prepared for today's auditor. yet IFRS audited note and outside by
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[Foreign start QX with Language] the will now we earnings results. on XXXX presentation that said, With
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start Let off our in QX. business me Language] [Foreign performance with
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in to [Foreign up drop was Revenue and Q-o-Q Revenue facility operations. was billion. KRW operating costs in a panel was was up increased was materials profit rise Operating operating and fell KRW But QX due XXX in trillion. profit Language] X.XXX profit Y-o-Y, Q-o-Q. Q-o-Q down profit X% costs XX% and from revenue X% was up price, Operating new XXX%. LCD
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with at KRW EBITDA billion. XX%. margin Net Language] was [Foreign XXX margin was profit X%, Operating
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ASP. and [Foreign area Language] shipment is Next
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supply to soft in the million demand [ph] square later [ph] previous then of from TV was panel Language] [Foreign quarter down meters, X.XX part from panel QX X% IT in global shipments trend issues. and shipment Area from decrease due shipment
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Y-o-Y. up TV from price panel increased It Area was product $XXX, drop the shipment mobile was the seasonality. panel back on Language] in despite X% X% price up Q-o-Q LCD of [Foreign
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[Foreign coming Guangzhou. The X% ramp-up company's Q-o-Q, mostly plant Language] QX in in XX,XXX increased the OLED from production capacity in
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QX by [Foreign segment. Next breakdown is product Language] revenue
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out In from [Foreign next and TV Language] IT previous of down points for others percentage quarter. panels its highest revenue, at accounted terms Mobile of panel XX%. came X in the share with portion XX%, maintained XX%.
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is financial and Next company's Language] position [Foreign the ratios.
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[Foreign shortage to The KRW stock end was X.XX equivalents and company's QX to KRW at owing supply cash KRW Q-o-Q, site such QX Language] supply X.X by continued uncertainties of build-up production XXX cash increasing of and power the safety chain Inventory and deferred prepare at as shipment billion issues. trillion, to was trillion. the against part
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Q-o-Q. by showing points ratio [Foreign to equity Language] percentage XXX%, percentage XX%, equity was ratio improved ratio improved at Current by was Financial ratios X XX%. kept Net X to in Liabilities debt improvement. came points.
Unidentified Company Representative
equivalents KRW [Foreign the by Language] billion Next down KRW and Cash of is cash from start trillion X.XXX cash XXX KRW at of were X.XXX the end flow. at the quarter, trillion quarter. the the
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guidance me to Language] [Foreign for the QX. move Let now on
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in mid in expected to QX shipment supply [Foreign digit Language] expected to The from In decrease shipment part grow recover coming area Q-o-Q. by is is issue QX, single QX.
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mobile [Foreign is TV price. low to LCD panel Q-o-Q, price, price in rise area digit even growth continued shipment with to Language] in Area single drop in thanks has expected that higher
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CFO, [Foreign Suh, performance is DH on company's the by business Language] strategy. presentation Next and
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DH Display. Suh, is of This afternoon. Good CFO Language] [Foreign LG
participating earnings investors, are call. shareholders, thank stakeholders the analysts release all and in me conference who Let today's
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each QX, outlook. for first you [Foreign business and the on QX strategy Language] by performance I followed operation in will brief main
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company the to In supply some to components, was was able performance, our there differentiated consistent IT, due base. and delay shipment competitiveness of achieve customer Language] to [Foreign but disruption thanks some
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me [Foreign strategy operations more explain now in the detail. Language] business for each Let
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growth will the shipment mid-teen to shipments component it where of increase, mid to seasonality. in in - growth in expected percentage issues, fell is Shipment QX. recover [Foreign thanks shipment also in Language] Mobile QX, due QX will
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end [Foreign for presentation That XXXX. brings to of earnings QX Language] us the
questions. We Operator the with take please commence session. will now Q&A
Operator
provided [Foreign be Gaudois Language] ahead with question Now Q&A UBS. will go Please first by begin. [Operator will Nicolas Instructions] Language] [Foreign question. The from your
Nicolas Gaudois
profitability. The first OLED is RGB one on
and soon You the or would talked maintenance, OLED, QX the of of And for effectively secondly, about this is and capacity Korea? for operations. Would or LCD that already be white rates initial year imply flexible - running Thank would about the you intend year? you would for you to full RGB characterize that is for lines timing profitability equipment And of you et utilization X the trajectory [ph] current do Gen thoughts in the that talked downtime next you. some OLED cetera? environment influencing QX for and on side, how lowering or but closure for in how increase
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OLED the [Foreign profitability. anyways Language] plastic RGB or what Now first, call OLED, the about OLED we plastic
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Unidentified Company Representative
[Foreign Language] Regarding your LCD. question about the
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the of at out up it XXXX, But for now, XX% for decrease by is TV Language] the product, is by but between in look to [Foreign by capacity IT, adjustment down you XX%, it XXXX capacity compared then if XX%. and
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[Foreign Language] as most well as to existing competitive fab, against has Gen competing the [Technical it among X peers time. keep competitiveness, the for Difficulty] some profitability the the both
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Operator
presented with following Language] question [Foreign Financial Investments. ahead question. your be The go Sung Hyun Hanwha by will Please Kim from
Sung Hyun Kim
two LCD one have OLED for questions, [Foreign I and TV each Language] TV.
talks been domestic TV, set this about the adding white have a the customer. year OLED first, of possibility of OLED. the beginning Now from specialty There of
down So the then is customer the is the acquiring or a new domestic new customer possibility any question what road. of set other
then could appreciated. will briefing if with the that that to be So mentioned that close capacity And the the was will share XX million. it is to then that us, information you be in possible, now extent
second OLED question similar the - growth the believe Now under that the single in And assumption, operating of white then TV. the for digit you for that is terms LCD operating profit? which do to it guidance, was profit XXXX, will or about the mid the in remain the
in that LCD TV LTV remains to but the Now we company's the the business see price continues black. TV decline,
much in to TV the then can maintain panel. profitability, the price LCD further how such then LCD TV company Now for company accept the drop
can so So how accept? pricing, the much the further drop company
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to As But understanding. hard you for difficult we well would business, of the disclose OLED time. for wanted, now the the at have to production TV now we able working the now both understand, as basis level that And quality information the will the same very about us as ask and it for is been customers that have have believe profitability we course, make at to them, secure to capability. growth yield we for also the and that then we
DH Suh
finer customers. talks in with to new for white far, then some perspective, that But market we potential now in had believe that our are OLED [Foreign will makers. aside looking TV makers. But customers the the be customers set acquire the TV Language] we And traditional in set this able at - are from we the we of Now traditional already been so segmentation. from
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[Foreign next as units. XX And sell will single Language] in that growth to mentioned as earlier, – able achieve to digit we year, go be profitability. a are So things million planned, if single believe I we mid then we able for
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price was the so LCD further of how that your panel the the is the [Foreign will company - much what remain to so question TV, in extent regarding LCD the the in And allow TV drop Language] profitable.
of Now allow it I - much - earlier, if products, And Commercial meaning XXXX, to it. that is how discussed compared explained the drop maintain for your if what the is half price the then end the the operation? will So capacity may for is our the as I I with customers. take I how of in to products. it of your question, us of LCD TV almost extent still capacity, prior rephrase that question, may as, the most business are specifications rephrase so the commercial
business. the the further Guangzhou the So in for is quite of from us pricing we products, for course, And now depreciation this of and room case, different plant, the this the price. And market for gives burden the the in commodity no LCD and amortization. Korea both maneuver have plant
So cost the of that stay about I the And that to at us then XX%. be would allow would would to would BEP say level. say comparison to I the COP, the from it structure peers. also And in peers, is X% least then quite different compared at now the
Operator
presented of [Foreign go from by Bank The ahead your be question Language] following question. Dong-je with will America. Woo Please
Dong-je Woo
of CapEx. first Now, Language] the is [Foreign all, about question my
been - Gen to to wonder the able business, we're there - still compared as company have from to China this up CapEx OLED already So X. has next ramp-up year going in there to the you is ramp plant. call, then conference I XXk understand was the the in Then And for there higher the year. why the needs capacity
with does mean to that up cost? fundamentally company's the this like I response. follow maintenance after business So higher question that the one next shifted model my to requires would
DH Suh
for was as is is CapEx disclosed to there the the to And the OLED. already, For investment next the year, required. Language] small be have plan for CapEx reason [Foreign that higher XXk going why we mid-sized
Unidentified Company Representative
Operator
by following with The Please will ahead Kim Securities. Investment Junghwan question Korea question. your presented [Foreign from Language] go be
Junghwan Kim
questions. also [Foreign Language] I two have Now
discussed discussed price. about panel price, I Well, do this TV TV some then have at panel we that already But IT actually, the believe not is the length. we panel. First the
slow that So price started or what is set has down to down on it but demand trend the like panel half, the the the company's in view been see road, recently. IT the we notebooks? PC first because So for strong
environment, on schedule. based question on about IT view price? panel the And the this second the amortization is depreciation then company's So the and what is
will almost that hand, that to the also is depreciation be and amortization. And utilization one the is So as turning to least is given BEP. perhaps OLED it certain it we to higher around on at rate, but perhaps owed see - we that it now lower owed
part. you also So schedule explain go - for I wonder depreciation a is to and also for this if also And could LCD, the down? what is for there the amortization LCD
DH Suh
about price. first, So Language] [Foreign panel the IT
believe are down growth its - has I market also for panel yes, relatively slowed TV, we But price. has down the first that QX. flattish. LCD into speaking, and it - speaking, relatively And still the true the it somewhat, the mean, has price almost slowed is rate is remain changes quarter so - affecting then compared but solid yes, of year, this increase will IT, For but then now the that becoming the the to
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for [Foreign they But to next had believe that year, it's demand of the and be is online for there of non-face will face enjoyed that Language] still away. so business education remote some because would and demand completely we course, forth. And that go going away much we go to not
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high in the the next of so start of for based products, we we quarter commodity pricing for because the or that second the be specifications And correction products the to for panel likely of are that notebooks, patterns high price determine start quarter And that, the year. meaning And of with is with in monitors, products, probably and going the the the market. from the products high for ahead the sometime the see price price, the first But linked correction the pricing believe year. press [Foreign end time. to we at discussed between different next not correction on closely perhaps third would Language] the end that start customers commodity end quarter is
demand quarter the the it in the not quarter. affected to notebooks, believe But is third the and on is TAM. or clients for again, for then start actually dynamics, and we correction commodities, does the that quarter it year second first the more by supply So likely depend price of next but
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[Foreign Language] are the your factors words, company's about hard much this. achieve considerable other the critical improve And to a we profitability capability the thank OLED achieving profitability. foremost, the in of yield. for the point course, to TV able are of question were TV such And understood the there the I several behind factors up it first to what would thanks work to employees your OLED I And point. say question. to at able are the driving In internal how business yield I is almost faster reaching is that improvement expected, were than we because this rate the for in the because have And a and
this there. as innovation do the for of it marketing determine been cost the plant, such gone we efforts. fact away. effect quite know course, the is of the so leveraging or more that, because the that than believe the to amortization Paju some that the has costs, also would are we R&D ago, almost to and also most you but I it cost. to allowed has thanks the And cost And reduction, fixed the built depreciation time then have are helped doubled, sales that And Of calculation another exact the
DH Suh
the plant. [Foreign depreciation for Language] LCD the then about your and amortization And question
be major into Now plant, additional would investment improvement for any a of investment. fiber the then course, or some financial investment for investment there or
of major and So all that coming depreciation for some remain, fabs, amortization of investment all depreciation but is types of for other investment and remain, - might the completed. our almost plants of and from that meaning some amortization a might
Unidentified Company Representative
Operator
Please America. [Foreign from question. be The will ahead Bank of Dong-je question by with Woo go last your Language] presented
Dong-je Woo
my with [Foreign follow-up simple a and question, meaningful Language] Then this may believe. I but question, be I am back
would might fourth the real the increase fourth actually quarter. does company volume if trying or be that for be realized of but a the company does we be the environment. demand the so have third in panels there it deferred macro can Now And is to good volume - in But this excessive is about the secure believe quarter mean the quarter, the despite projecting the volume that from the then OEMs, coming of OEMs from uncertainty XX%.
to to the case, in if that are make up fourth But is So the so quarter, perhaps OEMs lost a third the for that good going is the in trying and the production quarter, sign. be XX% - explain area perhaps the so volume not for is or application which increase more to increase the specifically shipment, you application most, from in than approximately the LCD? by going can the it come
DH Suh
Language] their area [Foreign shipment the is much from IT. shipment, come will - increase of for Now there
understand, So also the with as the still third there companies fall component but so for deferred shortage And demand struggled demand. we is far as the volume company, set the supply short of from not the only other of mean, supply, I the quarter.
much that to of QX continues. TV the to believe traditionally, And shipment the TV in do some overall growth, own the the in there's And are QX. the demand. of what a that applications, coming volume to And increase is part ramp-up from the concentrated. is But we the that volume would is in to going mentioned, OLED percentage make TV in from expected be customer's is there OLED that a OLED where yes, the plastic currently, TV, XXk is say to believe also share going but customer's plastic and other in its fulfill not OLED operation, going growth the expected given to do we area I most have demand contribution it then need perhaps from going much. then to coming the to of LCD QX for come is into terms the in not also that be And our from is volume. So some, the growth try best you we also also TV, contribution Guangzhou the as its because will increase
Unidentified Company Representative
Operator
LG will Thank joining again, additional We the Thank today. by XXXX us once the call you. you, close for us do IR Display. now QX any Please earnings questions. for conference contact at team
