Lg Display Co., Ltd · KRX:034220
Lg Display — LG.Philips LCD — Q4 2007 Earnings Presentation
43 slides from Lg Display's earnings presentation, Jan 14, 2008
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 2008 LG.Philips LCD Co., Ltd. (Translation of Registrant’s name into English) 20 Yoido-dong, Youngd
Slide 2: Q4 07 Earnings Results Summary
Q4 07 Earnings Results I. Performance in Q4 2007 – Korean GAAP Consolidated Financial Data (Unit: KRW B) Item Q4 07 Q3 07 Q4 06 QoQ YoY Quarterly Results Revenues 4,322 3,953 3,065 9.3% 41.0% Operating Income 869 693 -177 25.4% — Ordinary Income 1,006 659 -212 52.7% — Net Income 760 524 -174 45.0% —
Slide 3: US GAAP and Non-consolidated Information
3. Financial data for Q4 07 are unaudited. They are provided for the convenience of investors and can be subject to change. * The following US GAAP consolidated information and Korean GAAP non-consolidated information are included for the convenience of investors. US GAAP consolidated information (U
Slide 4: Press Release: LG.Philips LCD Reports Fourth Quarter 2007 Results
Attachment 1. Press Release LG.PHILIPS LCD REPORTS FOURTH QUARTER 2007 RESULTS • Record performance in both revenue and operating profit in Q4 ‘07, exceeding expectations • Successful turnaround and strong performance throughout 2007 as a result of cost reduction, efficiency maximization and custome
Slide 5: CEO commentary on Q4 strategic initiatives
Mr. Kwon continued “The fourth quarter was marked by several important strategic initiatives. As part of our ongoing efforts to enhance our customer relationships, during the quarter we opened a module plant in Guangzhou, our second such module site in China. Our strategy of building locally situate
Slide 6: Liquidity, Capital Spending, Capacity and Outlook
Liquidity Cash and cash equivalents including short term financial instruments of LG.Philips LCD were KRW 1,981 billion (USD 2,116 million) as of December 31, 2007. Total debt was KRW 3,406 billion (USD 3,639 million), and the net debt-to-equity ratio was 17% as of December 31, 2007, compared to 37%
Slide 7: Earnings Conference and Conference Call
Earnings Conference and Conference Call LG.Philips LCD will hold a Korean language earnings conference on January 14, 2008, at 4:30 p.m. Korea Standard Time at the LG Twin Tower Auditorium (East Tower, B1F) in 20 Yoido-dong, Yeongdeungpo-gu, Seoul, Korea. An English language conference call will fol
Slide 8: Investor Relations Contacts
Investor Relations Contacts: John Kim LG.Philips LCD Tel: +822-3777-1010 Email: jonghkim@lgphilips-lcd.com Media Contacts: Sue Kim LG.Philips LCD Tel: +822-3777-0970 Email: sue.kim@lgphilips-lcd.com
Slide 9: 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) 2007 2006 Three months Twelve months Three months Twelve months ended December 31 ended December 31 ended December 31 ended December 31 REVENUES 4,321,864 100% 14,351,9
Slide 10: Consolidated Balance Sheet (Korean GAAP)
LG.Philips LCD CONSOLIDATED BALANCE SHEET (In millions of KRW) (The financial statements are based on unaudited Korean GAAP) 2007 2006 December 31 September 30 December 31 September 30 ASSETS Current assets: Cash and cash equivalents 1,196,423 9% 1,656,419 12% 954,362 7% 471,747 3% Short term Financ
Slide 11: 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) 2007 2006 Three months Twelve months Three months Twelve months ended December 31 ended December 31 ended December 31 ended December 31 Net Income 759,908 1,344,027
Slide 12: 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) 2007 2006 Three months Twelve months Three months Twelve months ended Dec 31 ended Dec 31 ended Dec 31 ended Dec 31 REVENUES 4,321,864 100% 14,351,966 100% 3,065,294 100% 1
Slide 13: Consolidated Balance Sheet (US GAAP)
LG.Philips LCD CONSOLIDATED BALANCE SHEET (In millions of KRW) (The financial statements are based on unaudited US GAAP) 2007 2006 Dec 31 Sep 30 Dec 31 Sep 30 ASSETS Current assets: Cash and cash equivalents 1,196,423 9% 1,656,419 12% 954,362 7% 471,747 3% Short term Financial Instruments 785,000 6%
Slide 14: 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) 2007 2006 Three months Twelve months Three months Twelve months ended Dec 31 ended Dec 31 ended Dec 31 ended Dec 31 Net Income 749,643 1,344,379 (144,761) (692,779) Depr
Slide 15: Net Income Reconciliation to US GAAP
LG.Philips LCD Net Income Reconciliation to US GAAP (In millions of KRW) 2007 2007 Q4 Q3 Net Income under K GAAP 759,908 524,231 US GAAP Adjustments (10,265) (22,522) Depreciation of PP&E (655) (655) Amortization of IPR 10,937 9,321 Adjustment of AR discount loss (1) (34) Capitalization of financial
Slide 16: Attachment 2. Presentation Material: Q4 07 Earnings Results
Attachment Q4 January ‘07 Earnings 14, 2008 2. Presentation Results Material
Slide 17: Disclaimer
Disclaimer and statements. they Forward-looking forward-looking our including fluctuations in This GAAP comparable oral our dependence the are presentation filings statements financial Korean made, those These GAAP inwith foreign and Financial related on measures statement. statements contains also
Slide 18: Q4 07 Earnings Results
Q4 ‘07 Earnings Results
Slide 19: Income Statement (K GAAP, Consolidated)
GrossN/A Income QoQ KRW Revenue Change 25% Margin YoY bmargin (%) Statement Q4 4,322 1,504(879) YoY ‘07253,953 Q323(1) ‘07N/A 3,065 2Q4 26EBITDA ‘06 9% Operating 2007 41%1,775 2006 14,352 margin 1,376 10,624 20559 18(6) 35% 29%2 COGS 26 218% EBITDA 4,516 3,240margin 1,767 3,061 156% 3,090 41 356% In
Slide 20: Balance Sheet (K GAAP, Consolidated)
Balance KRW Assets Cash* Inventory Liabilities Short-term Long-term Shareholders’ Net Source: * K Cash GAAP debt B1,981 13,780 includes Unaudited, Q4 Sheet to (Consolidated) 824 5,491 debt equity ’07 1,656 equity 14,044 906 Q3 2,992 414 short 6,525 ratio 1,053 954 ’07 Company 923 8,289 term 13,488 3
Slide 21: Cash Flow (K GAAP, Consolidated)
KRW Depreciation Others Working Cash Other Net Source: * K Cash GAAP income change Flow flow B financing 107 flow Unaudited, Q4 capital (Consolidated) from before 35 in 760 ’07 from &cash 25 Amortization Q3 Operations Investing* activities 524 34Financing 72 Investing 325 (294) ’07 Company (174) 82
Slide 22: Performance Highlights
Performance Highlights 6
Slide 23: Net Shipments and ASP per Square Meter
**Net Shipments Total $1,414 5,000 3,000 0 1,000 ‘07 Display [Graphic ASP Source: * $0Quarterly Q4 Q4 per Kdisplay 2,822 $1,375 ‘07 m² Company area ‘06 m2 Appears and *$1,000 Q1 (USD) shipment ASP/m² average area $1,364 ASP ‘07Here] financials shipped 2,275 Q2selling ** 4,000 in‘07 (USD) K2,243 Q3 m
Slide 24: Revenue by Product Mix
(Based Revenue: 1 % Q 0 45% 50% 48% 47% 50 28% 25% 27% 21% 22% 5% Q2 Q3 Q4 Monitors Applications TVs Source: 00 1 ‘07 on Company Notebooks Product USD) Mix financials 8
Slide 25: Quarterly Capacity Update
Q4 P6 Quarterly 5,000 3,607 3,481 3,898 4,554 4,761 P7 Source: averaged ’071,787 4,000 1,032 1,021 1,298 1,675 P5Capacity Company P4 input 3,000 1,211 1,162 1,228 1,367 1,400 136K P1-P3 capacity Update financials 534 2,000 520 549 605 641 sheets 418 416 437 487 501 by 1,000 per 413 362 386 420 432 A
Slide 26: EBITDA, Cash and ROIC
EBITDA Cash 35% 41% 32% Sales 148% K Q4 onsolidated) Source: * IC GAAP ‘06 (Invested 72% Q4 ROIC /Q4 IC* Q1 Unaudited, ‘06 margin (C ‘06 25% ‘07 175% Q1 Q1 Capital) Q2 18% ‘07 ‘07 ‘07 Company Q2 19% Q2 Q3 equals ‘07 ‘07 51% ‘07 Q3 Q3 financials Q4 average ‘07 ‘07 ‘07 Q4 Q4of ‘07 ‘07 net 23% 124% deb
Slide 27: Outlook
11 Outlook
Slide 28: Q1 2008 Mid Outlook
Q1Mid Outlook Total (QoQ) Avg End (USD) IT COGS EBITDA 2008 CAPEX 961B Approx. Future Source: High ’08 QoQ CAPEX Shipment 535B TV P7 per Teens Company single Schedule 3T margin ASP Max High m² Mid 223B 2T(%) Approx. Low per digit Capa in single 0.4 single Mid 203B Down m² financials, (KRW) m² single
Slide 29: Questions and Answers
Questions and Answers 13
Slide 30: Appendix
14 Appendix
Slide 31: Income Statement (US GAAP, Consolidated)
KRW Revenue COGS Income Margin Gross Operating EBITDA Net Source: US GAAP income margin B Profit margin 3,227 (%) before Unaudited, Q4 4,322 1,778 margin Income margin Income (Consolidated) 17 750 ’07 1,095 3,053 25 13 tax 3,953 1,352 Q3 502 23 41 (5) 20 864 998 900 Statement 3,076 ’07 Company 034 (
Slide 32: Balance Sheet (US GAAP, Consolidated)
KRW Assets Cash* Inventory Liabilities Short-term Long-term Shareholders’ Net Source: * USCash GAAP debt B1,981 13,845 includes Unaudited, Q4 to824 5,596 Balance (Consolidated) debt equity ’07 1,656 equity 14,070 905 Q3 3,044 414 short 6,590 ratio 1,052 954 Sheet ’07 Company 923 8,249 term 13,496 3,
Slide 33: Cash Flow (US GAAP, Consolidated)
KRW Depreciation Others Working Cash Other Net Source: * USCash GAAP income change flow B financing 139 flow Unaudited, Q4 capital from before Cash (Consolidated) 85 in 750 ’07 from &cash 17 Amortization Q3 Operations Investing* activities 502 21 Flow Financing 54 Investing 325 (313) ’07 Company (14
Slide 34: Net Income Reconciliation: K GAAP to US GAAP
KRW US Depreciation Amortization Adjustment Capitalization Inventory Pension Income ESOP Convertible Stock Cash Others Net Source: GAAP Income flow B appreciation (1) 0tax Unaudited, expense Q4 0(1) valuation hedge Adjustments 0effect ’07 of Reconciliation under bonds 0of (3) of of ARQ3 PP&E IPR 0(3
Slide 35: EBITDA Reconciliation
K Amortization US 1. 2. 3. 4. 5. 6. 7. EBITDA GAAP Net Interest Provision Depreciation GAAP Income Reconciliation (1+2+3+4+5+6+7) (KRW Expense Income (KRW (benefit) 760 750 of of B)B) PP&E (21) Intangible Debt 524 502 45 65 Q4Q4 for 53 45 (16) (174) (145) ’07 Issuance ’07 Income 726 727 54Q3 51(5) Q
Slide 36: EBITDA Reconciliation (Continued)
amortization We purposes. our EBITDA determined [Graphic 20 believe industry. Appears Reconciliation is that in defined not It ofaccordance also adebt the measure Here] presentation provides as issuance net(Continued) with income determined useful cost. U.S. of(loss) EBITDA information GAAP. in plus
Slide 37: Thank You
LG. Philips LCD makes technology you can see… Thank You !!!
Slide 38: 2008 Outlook and Preparation for the Future
1. 2008 1) 2) 2. JanPreparation Performance 14th,Outlook Major 2008Action for Maximization the Future Items
Slide 39: 2008 Major Action Items: Preparation for the Future
1.Flexible 1.Strengthening 1) Short Mid-long 2) Successful -Technology 3) 4) Leading Mono E-Newspaper Color 2008 AMOLED Preparation Flexible LED Multi term E-Book E-Book Major NBPC market public touch term Color :commercialization Display development Focusing Action for screen :(’08) display through
Slide 40: 2008 Major Action Items: Maximization of Productivity
1. Development 2. Preparation 3. Advanced Reduce Minimize Establish 1) manufacturing 2) 3) Technology (No2008 Successful Thorough Preparation 3Maximization Inkjet COT need Mask Capex Major (Color Color pre-marketing for construction labor Process of enabling to Preparation making Action P8 for produ
Slide 41: 2008 Major Action Items: Performance Maximization
1.“One 2. productivity equipment New Restructuring Shifting “preventive particle Forming Promoting a1) 2) through 3) Win-win 2008 Maximizing Performance Continuous Enhancing Stabilizing Deriving Establishing Supporting organization: Team” management Major propagating from a special productivity full
Slide 42: 2008 Outlook
1. TV 2. 3. 3) due slow-down 1) 2) CFO Philips’ IT 2008 Full-blown Rapid Shortage Impacts Overall Favorable Profitability toand the Outlook stake growth some sub-prime tight, on in expected market sell-down US demand digital improvement ofbut ofthe LCD less situation issues broadcasting thanks Board
Slide 43: 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 14, 2008 By: /s/ Ron H. Wirahadiraksa (Signature) N