Lg Display Co., Ltd · KRX:034220
Lg Display — LG.Philips LCD — Q4 2005 Earnings Presentation
38 slides from Lg Display's earnings presentation, Jan 12, 2006
Slide 1: Form 6-K Report of Foreign Private Issuer
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of January 2006 LG.Philips LCD Co., Ltd. (Translation of Registrant’s name into English) 20 Yoido-dong, Youngd
Slide 2: Q4 05 Earnings Results
Q4 05 Earnings Results I. Performance in Q4 2005 - Korean GAAP Consolidated Financial Data (Unit: KRW B) Item Q4 05 Q3 05 Q4 04 QoQ YoY Quarterly Results Revenues 2,963 2,741 1,933 8.1% 53.3% Operating Income 334 240 2 39.2% 16600.0% Ordinary Income 309 217 19 42.4% 1526.3% Net Income 328 227 35 44.
Slide 3: Remarks and US GAAP consolidated information
III. Remarks 1. Please note that the presentation materials for Q4 05 Earnings Results are attached as an appendix and accessible on IR homepage of LG.Philips LCD Co., Ltd. at www.lgphilips-lcd.com. 2. Please note that the financial data included in the investor presentation and press release are pr
Slide 4: Press Release: LG.Philips LCD Reports Fourth Quarter 2005 Results
Attachment 1. Press Release LG.PHILIPS LCD REPORTS FOURTH QUARTER 2005 RESULTS SEOUL, Korea January 12, 2006 – LG.Philips LCD [NYSE: LPL, KRX: 034220], one of the world’s leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three-month pe
Slide 5: Fourth Quarter Financial Review
Fourth Quarter Financial Review Revenue and Cost Revenue in the three-month period ended December 31, 2005 increased by 53% to KRW 2,963 billion (USD 2,934 million) from KRW 1,933 billion (USD 1,914 million) in the corresponding period in 2004, due to continued growth in TV and notebook sales. TFT-L
Slide 6: Capital Spending, Utilization and Outlook
Capital Spending Capital expenditures in the fourth quarter of 2005 increased to KRW 1,396 billion (USD 1,382 million) from KRW 473 billion (USD 468 million) in the fourth quarter of 2004. Capital expenditures for the fourth quarter of 2005 were mainly used for investments in P7 and future productio
Slide 7: Conference Call and About LG.Philips LCD
Investors can listen to the conference call via the Internet at http://www.lgphilips-lcd.com. To listen to the live call, please go to the Investor Relations section of the website at least 15 minutes prior to the call to register and install any necessary audio software. For those who are unable to
Slide 8: Consolidated Statements of Income (Korean GAAP)
LG.Philips LCD CONSOLIDATED STATEMENTS OF INCOME (In millions of KRW) (The financial statements are based on unaudited Korean GAAP) 2005 2004 Three months ended Twelve months ended Three months ended Twelve months ended Dec 31 Dec 31 Dec 31 Dec 31 REVENUES 2,962,697 100% 10,075,580 100% 1,932,732 10
Slide 9: Consolidated Balance Sheet (Korean GAAP)
LG.Philips LCD CONSOLIDATED BALANCE SHEET (In millions of KRW) (The financial statements are based on unaudited Korean GAAP) 2005 2004 Dec 31 Sep 30 Dec 31 Sep 30 ASSETS Current assets: Cash and cash equivalents 1,579,452 12% 2,129,456 16% 1,361,239 13% 1,211,843 12% Trade accounts and notes receiva
Slide 10: Consolidated Statements of Cash Flow (Korean GAAP)
LG.Philips LCD CONSOLIDATED STATEMENTS OF CASH FLOW (In millions of KRW) (The financial statements are based on unaudited Korean GAAP) 2005 2004 Three months ended Twelve months ended Three months ended Twelve months ended Dec 31 Dec 31 Dec 31 Dec 31 Net Income 327,826 517,012 35,421 1,655,445 Depre
Slide 11: Consolidated Statements of Income (US GAAP)
LG.Philips LCD CONSOLIDATED STATEMENTS OF INCOME (In millions of KRW) (The financial statements are based on unaudited US GAAP) 2005 2004 Three months ended Twelve months ended Three months ended Twelve months ended Dec 31 Dec 31 Dec 31 Dec 31 REVENUE 2,962,697 100% 10,075,580 100% 1,932,732 100% 8,
Slide 12: Consolidated Balance Sheet (US GAAP)
LG.Philips LCD CONSOLIDATED BALANCE SHEET (In millions of KRW) (The financial statements are based on unaudited US GAAP) 2005 2004 Dec 31 Sep 30 Dec 31 Sep 30 ASSETS Current assets: Cash and cash equivalents 1,579,452 12% 2,129,456 16% 1,361,239 13% 1,211,843 13% Trade accounts and notes receivable
Slide 13: Consolidated Statements of Cash Flow (US GAAP)
LG.Philips LCD CONSOLIDATED STATEMENTS OF CASH FLOW (In millions of KRW) (The financial statements are based on unaudited US GAAP) 2005 2004 Three months ended Twelve months ended Three months ended Twelve months ended Dec 31 Dec 31 Dec 31 Dec 31 Net Income 359,715 541,649 55,553 1,703,687 Depreciat
Slide 14: Net Income Reconciliation to US GAAP
LG.Philips LCD Net Income Reconciliation to US GAAP (In millions of KRW) 2005 Three months ended Twelve months ended Dec 31 Dec 31 Net Income under K GAAP 327,826 517,012 US GAAP Adjustments 31,889 24,637 Depreciation of property, plant and equipment (655) (2,620) Amortization of Intellectual Proper
Slide 15: Q4 05 Earnings Results Presentation Material
Attachment Q4 January 1 05 Earnings 12, 2006 2. Presentation Results Material
Slide 16: Disclaimer
Disclaimer and statements. they Forward-looking forward-looking our including fluctuations in This GAAP 2 oral our dependence the are presentation filings statements financial measures, Korean made, those These inwith foreign and Financial related on measures statement. statements which contains als
Slide 17: Agenda
Q4 05 Earnings Agenda Paju-P7 47”W 42”W 37”W 32”W 3 Substrate Results Performance Highlights Outlook
Slide 18: Q4 05 Earnings Results
Q4 05 Earnings Results 4
Slide 19: Q4 05 Income Statement
Q4 KRW 05 Income Revenue COGS Gross EBITDA b2,457 Q4 profit Operating 05 Statement 2,963 506Q3 income 824 2,741 2,367 681374 05 Q4 1,933 1,840 334 412 93240 21% 04 4% 35% 8% 219QoQ 34% 444% 39% 100% change 53% 16600% YoY change Income Net before income tax 328 309 227 217 42% 1526% Margin Gross Oper
Slide 20: Q4 05 Balance Sheet
Q4 KRW Cash05 Balance Assets Inventoryb13,674 & LiabilitiesQ4 05Sheet Q3 equivalent 691 5,998725 05 13,541 Q4 1,579 805 6,223 04 10,357 (5%) 4,585 QoQ 1% 2,129 change 32% 1,361 (14%) (4%) 31% YoY16% (26%) change Short Long Net term Shareholders’ GAAPdebt Source: K 6 debt to 750 equity Unaudited, 795
Slide 21: Q4 05 Cash Flow
Q4 KRW Net 05 Cash b(10) Q4 income Depreciation Others Working Flow 05&328 29 capital Q3 05 227 Q4 Amortization (69) 68 (39) 56 04 3559 (203) QoQ 101 12293 503 271change 452 YoY 384125 change 51 742 119 CAPEX Cash NetGAAPflow Financing Proceeds from (1,396) before activities from change operations (
Slide 22: Performance Highlights
Performance Highlights 8
Slide 23: Shipments and ASP
Shipments Total 3,000 Q4 1,343 1,248 1,096 958 771 ASP**/m² $3,000 $4,000 Display Source: * 9 ** Q1k2,000 05 $2,000 m² Net Company area Q2 *(USD) Quarterlyand display 1,000 shipment Q3 $1,000 ASPQ4 financials 0 area average $2,304 $0 inshipped m2$2,085 selling (k) ASP price $2,062 per per m2 $2,121
Slide 24: Revenue by Product
Revenue: 5% 27% 53% Q3 22% 45% 29% Q4 24% 38% 34% 4% Notebooks Source: 10 04 05 15%Company Product Monitors Mix financials TV Applications
Slide 25: Quarterly Capacity Update
Unit: 2,500 Q4 P5 P6 Source: 11 has P4 05Quarterly 04 2,000 P1~P3 Capacity Q1 achieved Company 051,500 Q2input Update averaged Q3 financials 1,000 Q4 capacity 500 1120K byper Areamonth (k m²) for the quarter
Slide 26: EBITDA, Sales and Cash Flow Margins, ROIC
EBITDA 21% Sales 141%142% Cash 35% Q404 K Source: * 12IC GAAP (Invested 25% 39% ROIC /Q105 IC* Unaudited, margin (Consolidated) 28% 29% 136%134%133% Q2Capital) 19% 25% Q4 Q4 Q3 Q3 Company 13% 18%equals financials average of net debt and equity for the designated period ; Quarterly ratios are annuali
Slide 27: Outlook
13 Outlook
Slide 28: 2006 Outlook
Total Outlook ASP :End EBITDA Q1 CAPEX 4.2 Capex Others 2005 2006(E) 870 1,800 1,560 4,230 1,211 3,208 4,419 Source: 14 Mid-single 06 trillion of per Shipments :vs. schedule P7 Q1 High Company 2006 m2 Margin Q4 Future 06 KRW shipped digit teens 05 vs. (E) (KRW inEnd production (%) financials, m2 (%)
Slide 29: Questions and Answers
Questions and Answers 15
Slide 30: Appendix
16 Appendix
Slide 31: US GAAP Income Statement
US GAAP KRW Revenue COGS Income Margin Gross Operating EBITDA Net Source: 17 income margin bmargin profit 2,457 (%) before Q4 Unaudited, 2,963 841 margin income margin Income 05 12 360 506 2,364 672 17 Q3 9tax 2,741 238 3377 14 28 11 429 328 05 3334 Statement 1,823 Company 625 956 9110 Q4 1,933 325%
Slide 32: US GAAP Balance Sheet
US GAAP KRW Assets Cash Inventory Liabilities Short Long Shareholders’ Net Source: 18 debt & term b13,616 Q4 equivalent Unaudited, to690 6,042 debt Balance equity 05equity 13,465 724 Q3 2,851 751 6,282 ratio 05 804 1,579 Sheet Company 795 7,574 Q4 10,262 2,876 4,599 (5%) (%) 696 04 2,129 7,183 27 1,
Slide 33: US GAAP Cash Flow
US GAAP KRW Depreciation Others Working CAPEX Cash Financing Proceeds Net Source: 19 income change flow b(28) Q4 Unaudited, (1,396) capital from activities from before Cash 05 in 52 360 &cash Q3 issuance (66) Amortization operations 238 63 (1,380) Flow financing 05 (550) 32 Company (80) (43) 56 Q4 (
Slide 34: Net Income Reconciliation K GAAP to US GAAP
KRW Net US Income b Q4Reconciliation income GAAP Depreciation Amortization 05ofQ3 under05K adjustments of PP&E IPR GAAP 9 9(1) to 32 (1)US GAAP 328 11 227 Adjustment Capitalization of AR of discount financial loss (1) 51 (3) Pension Income ESOP Stock Net Source: 20 expense tax (1) effect 0Unaudited,
Slide 35: EBITDA Reconciliation
K Amortization US 1. 2. 3. 4. 5. 6. 7. GAAP EBITDA 21 Reconciliation (KRW GAAP Net income Interest Provision Depreciation 328 expense income b)(14) (KRW 227 Q4for 28 05 (16) 35 b) (1+2+3+4+5+6+7) (benefit) 360 of of PP&E 16 Q3 101 Q4 intangible debt 238 26 27 (15) 56 (2) 05 05 issuance income 17 492
Slide 36: EBITDA Reconciliation (Continued)
EBITDA amortization purposes. measure it those different flows 22 companies. is commonly of from our the depreciation Reconciliation is Specifically, operating defined competitors, performance of reported debtas issuance activities schedules net our and (Continued) who of income significant these wi
Slide 37: LG.Philips LCD: Technology you can see!
LG.Philips LCD Technology 23 you can makes see!
Slide 38: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. LG.Philips LCD Co., Ltd. (Registrant) Date: January 12, 2006 By: /s/ Ron H. Wirahadiraksa (Signature) N