LG Display Co., Ltd. Q3 FY2024 earnings call

• OLED-centric business structure upgrades driving performance, with cost savings and operational efficiency gains. • Plans for business domains: medium OLED to solidify competitiveness, ATO to reinforce tandem OLED technology, mobile OLED to drive shipment expansion, large OLED to expand high-end product lineup and focus on quality-centric growth, auto business to build stable earnings via cost competitiveness. • Conservative investment approach with CapEx expected in mid $2 trillion level, focusing on strengthening fundamentals and efficiency.

Q3 revenue was KRW6,821.3 trillion, recording 2% Q-over-Q growth and 43% Y-over-Y growth. Product revenue mix: Mobile and others accounted for 36% of the revenue mix, driven by growth in small product shipment including smartphone panels. IT segment revenue was 33% less than previous quarter. TV panel revenues accounted for 23% of the revenue mix. Auto segment revenue was 8% of the revenue mix. OLED share out of total revenue increased to 58%. Area shipment declined 3% Q-over-Q but was up 32% Y-over-Y. ASP per square meter increased 6% Q-over-Q to $825.

• Q4 shipment expansion for TV and notebook PC panels projected at mid-single-digit percent Q-over-Q growth. • ASP per square meter expected to rise by mid-single-digit percent driven by smartphone panel shipment growth.

• Uncertainties in the downstream IT product market causing shipment volatilities. • Macro-economic volatilities impacting demand and performance.

Q: Plans on using cash proceeds from sale of Guangzhou LCD TV set plan and impact on financial metrics?

A: Sale process involves approval from seven countries, expected to close by first quarter 2025. Payment based on difference in liabilities and borrowings from end-2023 to closing.

Q: Thoughts on competition in smartphone business and strategies?

A: Smartphone panel shipment uptrend, focus on diversifying product models and increasing fab utilization.

Q: Demand recovery for IT products and impact on forecasts?

A: Sluggish IT product recovery, adjusting shipment plans but too early to set clear annual volume.

Q: Price projection and IT LCD demand normalization?

A: TV market demand delayed, IT panel prices uncertain, focusing on high-end products and cost reduction.

Q: Efforts for large OLED business growth?

A: Technological preparations like meta and eye health tech, strengthening customer base, internal cost improvement activities.