Lg Display Co., Ltd · KRX:034220
Lg Display — LG.Philips LCD — Q1 2007 Earnings Presentation
51 slides from Lg Display's earnings presentation, Apr 10, 2007
Slide 1: Q1 '07 Earnings Results
Q1 ’07 Earnings Results Q1 ’07 Earnings Results April 10, 2007 Attachment 2. Presentation Material
Slide 2: Disclaimer
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,
Slide 3: Agenda
Agenda Agenda Q1 ’07 Earnings Results Performance Highlights Outlook Paju Display Complex 47”W 32”W 37”W 42”W
Slide 4: Q1 '07 Earnings Results
Q1 ’07 Earnings Results Q1 ’07 Earnings Results
Slide 5: Q1 '07 Earnings Results
Q1 ’07 Earnings Results Q1 ’07 Earnings Results
Slide 6: Income Statement
Margin (%) YoY Change QoQ Change Q1 ’06 Q4 ’06 Q1 ’07 KRW b Income Statement (8) (0) (6) (6) Net margin (8) EBITDA margin (10) (2) (6) (8) Operating margin (9) (1) (1) (2) Gross margin N/A N/A (174) (169) Net income N/A N/A (212) (246) Income before tax (23%) (8%) EBITDA N/A N/A (177) (208) Operatin
Slide 7: Balance Sheet
YoY Change QoQ Change Q1 ’06 Q4 ’06 Q1 ’07 KRW b Balance Sheet (13%) (3%) 7,752 6,890 6,713 Shareholders’ equity Net debt to equity ratio (%) 21% 7% 2,930 3,307 3,553 Long-term debt 14% (4%) Short-term debt 10% 0% 5,975 6,598 6,590 Liabilities 0% 2% 1,076 1,053 1,078 Inventory (8%) 3% 1,060 Cash and
Slide 8: Cash Flow
YoY Change QoQ Change Q1 ’06 Q4 ’06 Q1 ’07 KRW b Cash Flow (2) Depreciation & Amortization Others (871) (432) (272) Net change in working capital (456) (519) Net change in cash (366) Financing activities (1,013) (584) (165) Cash flow before financing (168) (845) (324) (492) CAPEX (845) 1,172 Cash fl
Slide 9: Performance Highlights
Performance Highlights Performance Highlights
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Slide 13: Shipments and ASP
Shipments and ASP Shipments and ASP Total K m² * ASP/m² ** (USD) Source: Company financials * Net display area shipped ** Quarterly average selling price per square meter of net display area shipped Display area shipment in K m ASP per m (USD) 1,274 1,485 1,993 2,275 $1,953 $1,598 $1,430 $1,414 1,00
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Slide 17: Revenue: Product Mix
Revenue: Product Mix 45% 30% 20% 48% 27% 21% 4% 28% 22% 5% 5% 45% Revenue: Product Mix Source: Company financials (Based on USD) Notebooks Monitors TVs Applications Q1 ’06 Q4 ’06 Q1 ’07 %
Slide 18: @ Le.Puiuips ico
@ Le.Puiuips ico
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Slide 21: Q1 '07 Capacity Update
Q1 ’07 Capacity Update 424 421 409 367 359 389 1,082 1,082 1,092 412 418 1,211 1,162 416 362 Q1 ’07 Capacity Update P7 averaged 78K input sheets per month for the quarter Source: Company financials Quarterly input capacity by Area (K m² ) P1-P3 P4 P5 P6 P7 1,000 2,000 3,000 Q1 ’06 Q2 ’06 Q3 ’06 Q4 ’
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Slide 31: Cash ROIC
Cash ROIC Cash ROIC Source: Unaudited, Company financials * IC (Invested Capital) equals average of net debt and equity for the designated period; Quarterly ratios are annualized K GAAP (Consolidated) EBITDA margin Sales / IC* Cash ROIC 18% 124% 23% 27% 112% 30% 10% 98% 10% 11% 112% 12% 19% Q1 ’06 Q
Slide 32: Outlook
Outlook Outlook
Slide 33: @ Le. Puiuips Lcd &
@ Le. Puiuips Lcd &
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Slide 36: Outlook Capex Schedule (KRW b)
Outlook Capex Schedule (KRW b) 549 252 Outlook Source: Company financials, delivery base Capex Schedule (KRW b) 1,064 1,221 Others P7 Future production facilities 2,834 1,015 Total Shipments in m – Q2 ’07 vs. Q1 ’07 : High teens (%) ASP per m shipped – Average of Q2 ’07 vs. Average of Q1 ’07 : Mid-s
Slide 37: Questions and Answers
Questions and Answers Questions and Answers
Slide 38: Appendix
Appendix Appendix
Slide 39: US GAAP Income Statement
Margin (%) YoY Change QoQ Change Q1 ’06 Q4 ’06 Q1 ’07 KRW b US GAAP Income Statement (8) (1) (5) (6) Net margin (9) (0) EBITDA (10) (2) (6) (8) Operating margin (8) (1) (0) (1) Gross margin N/A N/A (145) (169) Net income N/A N/A (186) (242) Income before tax (16%) (11%) EBITDA N/A N/A (172) (205) Op
Slide 40: US GAAP Balance Sheet
YoY Change QoQ Change Q1 ’06 Q4 ’06 Q1 ’07 KRW b US GAAP Balance Sheet (13%) (3%) 7,666 6,873 6,698 Shareholders’ equity Net debt to equity ratio (%) 20% 8% 2,944 3,291 3,540 Long-term debt 14% (4%) Short-term debt 10% 0% 6,000 6,623 6,618 Liabilities 0% 2% 1,076 1,052 1,078 Inventory (8%) 3% 1,060
Slide 41: US GAAP Cash Flow
YoY Change QoQ Change Q1 ’06 Q4 ’06 Q1 ’07 KRW b US GAAP Cash Flow (2) Depreciation & Amortization (10) Others (866) (410) (279) Net change in working capital (456) (519) Net change in cash (366) Financing activities (1,013) (584) (165) Cash flow before financing (168) (845) (324) (492) CAPEX (845)
Slide 42: Net Income Reconciliation to US GAAP
Q4 ’06 Q1 ’07 KRW b Net Income Reconciliation to US GAAP (4) Convertible bonds (including FX valuation) (1) Stock appreciation right (2) Cash flow hedge (145) (169) Net Income under US GAAP Others (1) (0) ESOP (4) Income tax effect of US GAAP Adjustments Pension expense (1) Capitalization of financi
Slide 43: EBITDA Reconciliation
Q1 ’07 YoY Change QoQ Change Q1 ’06 Q4 ’06 US GAAP (KRW b) YoY Change QoQ Change Q1 ’06 Q4 ’06 Q1 ’07 K GAAP (KRW b) EBITDA Reconciliation (77) (8) (169) (73) (8) (169) 6. Amortization of Intangible Asset (230) (24) (145) 1. Net Income (4) 2. Interest Expense (3) (11) (5) 3. Interest Income (53) (32
Slide 44: EBITDA Reconciliation (Continued)
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.
Slide 45: LG.Philips LCD makes Technology you can see!
LG.Philips LCD makes Technology you can see!
Slide 46: New Direction
New Direction New Direction April 10, 2007 1. Major Action Items in ’07 2. Current Issues 3. Profitability in ’07 4. Mid-long Term Strategy
Slide 47: 1. Major Action Items in '07
1. Major Action Items in ’07 1. Lowering Purchasing Price 2. Developing Low Cost Model 3. Production Capacity Expansion @ 08 1) Timely purchase Cl in correlation with panel price decline - Jan: Purchase Cl completed - Apr: Purchasing Cl in progress 1) Plan and executing product development roadmap f
Slide 48: Major Action Items in '07 (continued)
1. 1) Enhancing supports to current customers 2) Increased utilization rate of P7 by expanding TV customer base 5. Increasing P7(Paju) Utilization Through “Consideration” management - Customer-centric mindset - Spontaneous and positive thoughts - Form strong organization culture which can challenge
Slide 49: 2. Current Issues
2. Current Issues 1) Reviewing P8 investment for maintaining leading position in IT segment 2) Necessity of P8 investment will be decided according to the possible increase size of current fab’s capacity 3) Needs more review for the prudent decision 3. P8 Investment (Gen 5.5) 1) Currently, LPL has K
Slide 50: 3. Profitability in '07
3. Profitability in ’07 1) Continued TV panel supply shortage 2) IT panel supply shortage 3) P7 utilization rate maximization Q4 ’07 1) TV panel supply shortage 2) Panel price increase in MNT/NBPC 3) Low cost (CI) model sales maximization Q3 ’07 1) P7 utilization rate increase (TV shipments increase
Slide 51: 4. Mid-long Term Strategy
4. Mid-long Term Strategy Mid-long Term Strategy 4. Mid-long Term Strategy Mid-long Term Strategy 1. Timing / direction for Gen 8 investment 2. Technology / product differentiation strategy 3. Strategy to secure top-notch cost competitiveness 4. Strategic alliance 5. Business Transformation SIGNATUR