LG Display Co., Ltd. Q1 FY2026 earnings call

• Despite Q1 seasonality, remained profitable for 3 months in a row due to years-long efforts to transition to OLED and high-end strategic customers, cost innovation, and operational efficiency improvement. • OLED revenue share increased to 60%, a 5 percentage point Y-o-Y increase. • Outlined plans by business segment: Small-sized mobile business to flexibly respond to customer needs; midsized business to focus on high value-added products; large panel business to strengthen premium product lineup; monitor business to grow OLED business and expand gaming product lineup; auto business to solidify market position. • Maintained CapEx principle of allocating towards essential current and future-proof technology investment, with 2026 CapEx expected at around KRW 2 trillion.

Revenue in Q1 was KRW 5.534 trillion, down 9% year-over-year and 23% quarter-on-quarter. Operating profit was KRW 146.7 billion, rising Y-o-Y. Operating profit margin was 3%, EBITDA margin was 21%. Net income recorded a loss of KRW 575.7 billion. Area shipment in Q1 was 3.2 million square meters, down 21% Q-o-Q. ASP per square meter fell 4% Q-o-Q but was up 55% Y-o-Y. Revenue breakdown: TV was 16%, IT 37%, Mobile and Others 37% (down 3 percentage points Q-o-Q), Auto 10% (up 3 percentage points Q-o-Q). OLED product group accounted for 60% of total revenue, up 5 percentage points Y-o-Y.

• Total area expected to grow by low 10% level Q-o-Q, driven by shipment increase in large-sized panels. • Price per square meter expected to fall by low to mid-10% due to mobile products seasonality.

• External uncertainties such as rising semiconductor prices, declining global demand, rising energy costs, and supply chain disruptions, making it difficult to estimate full impact. • Uncertainties may trigger concerns regarding potential production disruptions, shifts in demand, rising cost, and price pressure from customers.

Q: Can the company provide more details about the new OLED investment disclosure and its business strategy regarding foldable smartphones?

A: The company is focused on OLED business and disclosed new facility investment, but specifics on new technologies for customers can't be discussed further. On foldables, position is to grow performance by maximizing existing products' production and sales, and prepare supply system for smartphones if clear opportunities identified.

Q: What is the expected impact on demand and company's response regarding panel business?

A: First half may have pull in demand due to memory supply concerns and major sporting events; second half to be more cautious due to component price hikes, set price changes, and macro uncertainties. Will closely monitor demand and component supply, collaborate with customers, and focus on cost innovation.

Q: What is the company's operational and growth strategy for large panel business?

A: Establish stable revenue structure and strengthen fundamentals by enhancing high-end OLED TV lineup with global set makers and expanding mid- to low-end OLED TV lineup. OLED monitor segment's high-end gaming monitor market is shifting to OLED, aiming to maximize business performance and opportunities through optimized production share between TVs and monitors.

Q: When will the company turn around to profitability and its plan for OLED investment?

A: Ongoing uncertainties make IT sector recovery hard to expect this year; will focus on high-end differentiated products and further upgrade customer structure. Regarding OLED investment, will proceed cautiously until clear demand visibility for downstream OLED, utilize existing infrastructure efficiently, and be ready to respond when market takes off.

Q: What is the expected scale of voluntary retirement adjustment and future workforce adjustments?

A: Another round of workforce adjustment this year as part of transition to OLED-centric company. Specific overall cost and scale too early to tell; offered strengthened package this time to restore stability among members.