LG Display Co., Ltd · KRX:034220
LG Display — Q3 2007 Earnings Presentation
22 slides from LG Display's earnings presentation, Oct 9, 2007
Slide 1: Q3 '07 Earnings Results
Q3 ’07 Earnings Results October 9, 2007
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the United States Securities and Exchange Commission and the Korean Financial Supervisory Service, in our annual report to shareholders, in our p
Slide 3: Q3 '07 Earnings Results
q —_— gs P = ~ ' Q3 '07 Earnings Results
Slide 4: Income Statement
Income Statement KRW b Q3 ’07 Q2 ’07 Q3 ’06 QoQ Change YoY Change Revenue 3,953 3,355 2,773 18% 43% COGS 3,061 3,043 3,019 1% 1% Gross Profit 892 312 (246) 186% N/A Operating Income 693 150 (382) 362% N/A EBITDA 1,376 850 295 62% 366% Income before tax 659 124 (422) 431% N/A Net income 524 228 (321)
Slide 5: Balance Sheet
Balance Sheet KRW b Q3 ’07 Q2 ’07 Q3 ’06 QoQ Change YoY Change Assets 14,044 13,694 13,735 3% 2% Cash and cash equivalents 1,656 1,238 472 34% 251% Inventory 906 962 1,148 (6%) (21%) Liabilities 6,525 6,708 6,663 (3%) (2%) Short-term debt 923 630 673 47% 37% Long-term debt 3,509 4,027 3,807 (13%) (8
Slide 6: Cash Flow
Cash Flow KRW b Q3 ’07 Q2 ’07 Q3 ’06 QoQ Change YoY Change Net income 524 228 (321) 296 845 Depreciation & Amortization 680 686 672 (6) 8 Others 35 37 5 (2) 30 Net change in working capital (294) (563) (34) 269 (260) Cash flow from operations 945 388 322 557 623 CAPEX (328) (512) (908) 184 580 Cash
Slide 7: Performance Highlights
q —_— gs P a ~ : Performance Highlights
Slide 8: Shipments and ASP
Shipments and ASP Total K m² * ASP/m² ** (USD) $2,000 5,000 $1,430 $1,414 $1,364 4,000 $1,287 $1,274 3,127 3,000 2,822 $1,000 2,275 2,243 1,993 2,000 1,000 0 $0 Q3 ’06 Q4 ’06 Q1 ’07 Q2 ’07 Q3 ’07 Display area shipment in K m2 ASP per m2 (USD) Source: Company financials * Net display area shipped **
Slide 9: Revenue: Product Mix
Revenue: Product Mix % 100 5% 5% 5% 22% 21% 22% 28% 27% 25% 50 45% 47% 48% 0 Q1 ’07 Q2 ’07 Q3 ’07 TVs Monitors Notebooks Applications Source: Company financials (Based on USD) 8
Slide 10: Q3 '07 Capacity Update
Q3 ’07 Capacity Update P7 averaged 127K sheets per month for the third quarter Quarterly input capacity by Area (K m² ) 5,000 4,554 3,898 4,000 P7 3,607 3,481 1,675 3,079 1,298 3,000 1,032 1,021 682 P6 1,367 2,000 1,211 1,228 1,092 1,162 P5 534 549 605 1,000 507 520 487 P4 389 418 416 437 409 413 36
Slide 11: Cash ROIC
Cash ROIC EBITDA margin 35% Cash ROIC 25% 19% 51% 18% 11% 32% Q3 ’06 Q4 ’06 Q1 ’07 Q2 ’07 Q3 ’07 23% 20% 12% Sales / IC* 148% Q3 ’06 Q4 ’06 Q1 ’07 Q2 ’07 Q3 ’07 124% 126% 112% K GAAP (Consolidated) 107% Q3 ’06 Q4 ’06 Q1 ’07 Q2 ’07 Q3 ’07 Source: Unaudited, Company financials * IC (Invested Capital)
Slide 12: Outlook
Outlook 11
Slide 13: Outlook
Outlook Q4 ’07 CAPEX Schedule (KRW b) Total Shipment in m² Mid single digit (%) 2,834 (QoQ) TV High single digit (%) IT Low single digit (%) 1,064 Avg QoQ ASP per m² Low single digit (%) (USD) TV Mid single digit (%) IT Flat (%) End QoQ ASP per m² Low single digit (%) 1,221 1,015 (USD) TV Mid single
Slide 14: Questions and Answers
Questions and Answers 13
Slide 15: Appendix
Appendix 14
Slide 16: US GAAP Income Statement
US GAAP Income Statement KRW b Q3 ’07 Q2 ’07 Q3 ’06 QoQ Change YoY Change Revenue 3,953 3,355 2,773 18% 43% COGS 3,053 3,034 3,009 1% 1% Gross Profit 900 321 (236) 180% N/A Operating Income 672 147 (378) 357% N/A EBITDA 1,352 863 297 57% 355% Income before tax 651 147 (408) 343% N/A Net income 502 2
Slide 17: US GAAP Balance Sheet
US GAAP Balance Sheet KRW b Q3 ’07 Q2 ’07 Q3 ’06 QoQ Change YoY Change Assets 14,070 13,740 13,696 2% 3% Cash and cash equivalents 1,656 1,238 472 34% 251% Inventory 905 961 1,148 (6%) (21%) Liabilities 6,590 6,775 6,668 (3%) (1%) Short-term debt 923 630 673 47% 37% Long-term debt 3,553 4,052 3,802
Slide 18: US GAAP Cash Flow
US GAAP Cash Flow KRW b Q3 ’07 Q2 ’07 Q3 ’06 QoQ Change YoY Change Net income 502 262 (307) 240 809 Depreciation & Amortization 671 677 664 (6) 7 Others 85 19 1 66 84 Net change in working capital (313) (570) (36) 257 (277) Cash flow from operations 945 388 322 557 623 CAPEX (328) (512) (908) 184 58
Slide 19: Net Income Reconciliation to US GAAP
Net Income Reconciliation to US GAAP KRW b Q3 ’07 Q2 ’07 Net Income under K GAAP 524 228 US GAAP Adjustments (22) 34 Depreciation of PP&E (1) (1) Amortization of IPR 10 10 Adjustment of AR discount loss 0 (1) Capitalization of financial interests 7 (1) Pension expense 0 1 Income tax effect of US GAA
Slide 20: EBITDA Reconciliation
EBITDA Reconciliation K GAAP (KRW b) Q3 ’07 Q2 ’07 Q3 ’06 QoQ Change YoY Change 1. Net Income 524 228 (321) 296 845 2. Interest Expense 53 52 50 1 3 3. Interest Income (16) (12) (5) (4) (11) 4. Provision (benefit) for Income Taxes 135 (104) (101) 239 236 5. Depreciation of PP&E 667 674 659 (7) 8 6.
Slide 21: EBITDA Reconciliation (Continued)
EBITDA Reconciliation (Continued) EBITDA is defined as net income (loss) plus: interest income (expense); provision (benefit) for income taxes; depreciation of property, plant and equipment; amortization of intangible assets; and amortization of debt issuance cost. EBITDA is a key financial measure
Slide 22: Thank You !!!
LG. Philips LCD makes technology you can see… Thank You !!! 21