LG Display Co., Ltd. Q3 FY2025 earnings call

• Q3 2025 saw results of OLED-centric business structure upgrade and cost innovation initiatives coming to fruition, with OLED product group revenue share reaching 65%.
• Year-to-date (YTD) revenue was KRW 18.6093 trillion and operating profit was KRW 345 billion, continuing improvement trend. Despite LCD TV business discontinuation, revenue was flat Y-o-Y due to larger OLED and premium product portion.
• YTD operating profit improved by approx. KRW 1 trillion Y-o-Y due to strategic initiatives like cost innovation and business structure upgrade.
• Plans for additional workforce improvement program in Q4 as part of cost innovation effort, impact expected to be more than last quarter.

Revenue for Q3 2025 was KRW 6.957 trillion, up 25% Q-o-Q and 2% Y-o-Y. Operating profit was KRW 431 billion, improving over KRW 500 billion Q-o-Q and Y-o-Y. EBITDA was KRW 1.4239 trillion with a 20% margin. Revenue share by product category: Mobile and Others had 39% share, up 11 percentage points Q-o-Q; IT had 37% share, down 5 percentage points Q-o-Q; TV segment had 16% share, down 4 percentage points Q-o-Q; Auto segment had 8% share, down 2 percentage points Q-o-Q. OLED products accounted for 65% of total revenue, up 9 percentage points Q-o-Q and 7 percentage points Y-o-Y.

• Q4 OLED area shipment expected to continue growth, total area shipment projected to grow low single-digit Q-o-Q. ASP per square meter anticipated to decline low single-digit Q-o-Q due to mix change in small and midsized OLED products but remain at higher level than average quarters.
• OLED products revenue share expected similar Q-o-Q in Q4 with annual share projected at low 60% level.
• Plans for additional workforce improvement program in Q4, onetime cost from which will be offset after 1.5 years.

• External uncertainties and consequent shipment volatility expected to persist in Q4.
• Variables in business environment include macro-related real demand, intensifying supplier competition, and supply chain stability.

Q: Does the company believe it has the structure to sustain business performance down the road and outlook for next year? And how to respond to potential ASP pressure?

A: Despite external uncertainties, based on stronger business fundamentals and cost innovation efforts, will continue to improve performance next year. Will expand OLED product portion, focus on high value-add products, and develop new growth engines. With strong customer partnership, will operate optimum pricing strategy while upgrading product mix and continuing cost innovation.

Q: Implications of market reception of new models by North American customer for LG Display? Outlook for smartphone shipment in 2026? Volume of smartwatch panel supply?

A: Market reception of new models is generally positive, actual demand may vary affecting shipment plan. Confident in further expanding performance in 2026 due to technological know-how and flexible response. LG Display is sole supplier for smartwatch panels, but details of volume, revenue, and profit contribution not disclosed specifically.

Q: Strategy for LCD IT business and preparation for OLED adoption in IT?

A: For LCD IT, maintain profitability-centric management with select and focused approach on strategic customers, downsizing low-margin models. For OLED in IT, provide solutions based on 2-track strategy, respond to high-end monitor demand, and closely watch OLED notebook market while preparing for future technologies using existing infrastructure.

Q: Strategy for OLED TV business amidst macro uncertainties and competition?

A: Project large OLED panel shipment of mid-6 million units in 2025, expecting 7 million units in 2026. Strengthen fundamental competitiveness of OLED products, maintain cost innovation and operational efficiency. Flexibly run OLED capacity in linkage to actual demand and have infrastructure to respond to market growth.