Lg Display Co., Ltd · KRX:034220
Lg Display — LG.Philips LCD — Q3 2005 Earnings Presentation
38 slides from Lg Display's earnings presentation, Oct 11, 2005
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 October 2005 LG.Philips LCD Co., Ltd. (Translation of Registrant’s name into English) 20 Yoido-dong, Youngd
Slide 2: Q3 05 Earnings Results
Q3 05 Earnings Results I. Performance in Q3 2005 – Korean GAAP Consolidated Financial Data (Unit: KRW B) Item Q3 05 Q2 05 Q3 04 QoQ YoY Quarterly Results Revenues 2,741 2,308 1,875 18.8% 46.2% Operating Income 240 29 256 727.6% -6.3% Ordinary Income 217 1 240 21,600.0% -9.6% Net Income 227 41 291 45
Slide 3: Remarks and US GAAP Information
III. Remarks 1. Please note that the presentation materials for Q3 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 Third Quarter 2005 Results
Attachment 1. Press Release LG.PHILIPS LCD REPORTS THIRD QUARTER 2005 RESULTS SEOUL, Korea October 11, 2005 – 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 per
Slide 5: Third Quarter Financial Review
Third Quarter Financial Review Revenue and Cost Revenue in the three-month period ended September 30, 2005 increased by 46% to KRW 2,741 billion (USD 2,630 million) from KRW 1,875 billion (USD 1,799 million) in the corresponding period in 2004, as increases in shipments were robust due to growing TV
Slide 6: Utilization and Capacity; Outlook
Utilization and Capacity Total input capacity on an area basis increased approximately 17% in the third quarter compared to the second quarter, due mainly to P6 achieving its initial design capacity of 90,000 input sheets per month. The Company intends to expand this capacity further over time. Outl
Slide 7: About LG.Philips LCD
About LG.Philips LCD LG.Philips LCD [NYSE: LPL, KRX: 034220] is a leading manufacturer and supplier of thin film transistor liquid crystal display (TFT-LCD) panels. The Company manufactures TFT-LCD panels in a wide range of sizes and specifications primarily for use in notebook computers, desktop mo
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 Nine months Three months Nine months ended Sep 30 ended Sep 30 ended Sep 30 ended Sep 30 NET REVENUES 2,740,507 100% 7,112,883 100% 1,875,195 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 Sep 30 Jun 30 Sep 30 Jun 30 ASSETS Current assets: Cash and cash equivalents 2,129,456 16% 1,330,973 11% 1,211,843 12% 559,936 7% Trade accounts and notes receivabl
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 Nine months Three months Nine months ended Sep 30 ended Sep 30 ended Sep 30 ended Sep 30 Net Income 226,972 189,186 290,868 1,620,024 Depreci
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 Nine months Three months Nine months ended Sep 30 ended Sep 30 ended Sep 30 ended Sep 30 REVENUE 2,740,507 100% 7,112,883 100% 1,873,579 100% 6,392,
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 Sep 30 Jun 30 Sep 30 Jun 30 ASSETS Current assets: Cash and cash equivalents 2,129,456 16% 1,330,973 11% 1,211,843 13% 559,936 7% Trade accounts and notes receivable 1,
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 Nine months Three months Nine months ended Sep 30 ended Sep 30 ended Sep 30 ended Sep 30 Cash flows from operating activities: Net income 238,009
Slide 14: Net Income Reconciliation to US GAAP
LG.Philips LCD Net Income Reconciliation to US GAAP ( In millions of KRW) 2005 Three months Nine months ended Sep 30 ended Sep 30 Net Income under K GAAP 226,972 189,186 US GAAP Adjustments 11,037 (7,252) Depreciation of property, plant and equipment (655) (1,965) Amortization of Intellectual Proper
Slide 15: Q3 05 Earnings Results Presentation Material
Attachment Q3 October 1 05 Earnings 11, 2. 2005 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: Q3 05 Earnings Agenda
Q3 05 Earnings Agenda Performance 3 Paju-P7 47”W 42”W 37”W 32”W Outlook Highlights Results
Slide 18: Q3 05 Earnings Results
Q3 05 Earnings Results 4
Slide 19: Q3 Korean GAAP Income Statement
Q3GAAP KRW Revenue COGS Income Margin Gross Operating EBITDA Net Source: K 5 05 income margin bmargin profit Income 2,367 (%) before Q3 Unaudited, 2,741 681 margin (Consolidated) income margin 05 8227 374 2,169 2442 14 Statement Q2 tax 2,308 16 41 139 625 9568 240 05 6217 17 291 1,555 Company 119 (8
Slide 20: Q3 Korean GAAP Balance Sheet
Q3GAAP KRW Assets Cash Inventory Liabilities Short Long Shareholders’ Net Source: K 6 05 debt & term bBalance 13,541 Q3 equivalent Unaudited, to (Consolidated) 725 6,223 debt equity 05equity 11,844 721 Q2 Sheet 2,823 795 6,131 ratio 05 692 2,129 Company 632 7,318 Q3 9,736 2,957 4,037 1% (%) 632 04 1
Slide 21: Q3 Korean GAAP Cash Flow
Q3GAAP KRW Depreciation Others Working CAPEX Financing Cash Net Source: K * 7 05 income change flow proceeds bCash 29 Cash Q3 Unaudited, (1,380) capital (Consolidated) 32 activities from before 05 in 227 Flow & 2proceeds cash Q2 from (3) Amortization operations 41 56 (969) financing 05 27 798 291 (1
Slide 22: Performance Highlights
Performance Highlights 8
Slide 23: Shipments and ASP
Shipments Total 3,000 Q3 ASP**/m2 Display 1,248 1,096 958 771 560 ASP Source: * 9 ** Q4 per k2,000 Q1 m2 Net Company area m205 Quarterly and *(USD) display 1,000 (USD) shipment Q2 ASPQ3 financials 0$4,000 average area inshipped m2 $3,000 selling (k) $2,000 price $1,000 per square $0 of meter $2,857
Slide 24: Revenue by Product Mix
Revenue: 4% 18% 53% 24% 5% 27% 55% Q3 Source: Applications TV Monitors Notebooks 10 04 14% 4%Q2Company 29% Product 05 Q3 45% 05Mix financials 22%
Slide 25: Quarterly Capacity Update
Q3304 Unit: 2,500 Q 0 P5 P6 Source: 11 has P4 05Quarterly Q4 2,000 P1~P3 Capacity achieved Company Q105 1,500 input Q2 Update initial financials 1,000 Q3capacity design 500 capacity by Area (k of m² 90 K ) per month for the quarter
Slide 26: EBITDA and ROIC
EBITDA 25% 19% 13% 21% 30% Q2 Sales 140% Cash 35% 42% Q304 K Source: * 12IC GAAP Q3 (Invested 29% ROIC /Q4 141% IC* Unaudited, margin (Consolidated) Q105 25% 136%134%133% Capital) 18% Q2 Q3 Company equals financials average of net debt and equity for the designated period ; Quarterly ratios are annu
Slide 27: Outlook
13 Outlook
Slide 28: Q4 Outlook and Capex
Total Outlook ASP :End EBITDA Q4 CAPEX 3.5 Capex Future P7 Others 1,000-2,000 2006E 2005E 800 1,700 3,500—4,500 1,436 3,144 4,580 Source: 14 Flat 05 05: toof per Shipments to 4.5 vs. schedule production Q4 Mid-to-high Company slightly 2006 m2 Margin trillion Q3 05shipped 05 vs. (E) (KRW down in :KRW
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 2,364 (%) before Q3 Unaudited, 2,741 672 margin income margin Income 05 9238 377 2,159 2437 14 Q2 tax 2,308 16 38 149 625 9576 239 05 7216 18 Statement 298 1,543 Company 219 (7) 331 Q3 1,874 14
Slide 32: US GAAP Balance Sheet
US GAAP KRW Assets Cash Inventory Liabilities Short Long Shareholders’ Net Source: 18 debt & term b13,465 Q3 equivalent Unaudited, to724 6,282 debt Balance equity 05equity 11,750 721 Q2 2,876 795 6,186 ratio 05 691 2,129 Sheet Company 633 7,183 Q3 9,623 3,006 4,047 0% (%) 632 04 1,331 5% 5,564 21 15
Slide 33: US GAAP Cash Flow
US GAAP KRW Depreciation Others Working CAPEX Financing Cash Net Source: 19 income change flow proceeds b52 Q3 Unaudited, (1,380) capital 45 activities from before Cash 05 in 238 & (14) cash Q2 1,401 Amortization operations 38 32 (969) Flow financing 705 798 298 (124) Company 66 13 0Q3 (1,445) 1,191
Slide 34: Net Income Reconciliation: K GAAP to US GAAP
KRW US Depreciation Amortization Adjustment Capitalization Pension Income ESOP Convertible Stock Net Source: 20 GAAP Income income bappreciation (1) tax Q3 Unaudited, expense (1) adjustments effect 05 under of Reconciliation bonds of of of AR Q2PP&E IPR 0financial of K US 05 discount (including (1)
Slide 35: EBITDA Reconciliation
K Amortization US 1. 2. 3. 4. 5. 6. 7. EBITDA 21 GAAP Net Interest Provision Depreciation GAAP income Reconciliation (1+2+3+4+5+6+7) (KRW expense income (KRW (benefit) 227 238 of of b)b) (16) (15) PP&E intangible debt 41 38 28 27 Q3 Q3 for 291 298 30 31 05 (12) issuance 05 income 12 14 441 Q2 186 20
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 makes 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: October 11, 2005 By: /s/ Ron H. Wirahadiraksa (Signature) N