Slide 1: Earnings Results
Earnings Results July 9, 2008
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 pro
Slide 3: Q2 '08 Earnings Results
Q2 ’08 Earnings Results ans @ic display
Slide 4: Q2 '08 Earnings Results
Q2 ’08 Earnings Results 15 @ic display
Slide 5: Revenues & Profit
Revenues & Profit Revenues Profit (Unit : KRW B) Q1 ’08 Q2 ’08 Q2 ’07 Q1 ’08 QoQ Q2 ’08 YoY Q2 ’07 4% 4,036 4,211 3,355 39% 38% (Unit : KRW B, %) Operating Income 881 1% 889 493% 150 26% 22% 21% 4% EBITDA* 1,566 1% 1,587 90% 835 25% Income before tax 915 2% 930 650% 124 Net Income 717 6% 759 233% 22
Slide 6: Balance Sheets & Financial Ratios
Balance Sheets & Financial Ratios Balance Sheets (Unit : KRW B) Dec ’07 Q1 ’08 Q2 ’08 Assets 13,780 15,238 16,833 Current Assets 5,746 7,285 8,730 Cash* 1,981 2,988 3,835 Inventory 824 1,031 1,387 Fixed Assets 8,034 7,953 8,103 Liabilities 5,491 6,480 7,273 Current Liabilities 2,402 3,321 4,261 Long
Slide 7: Cash Flow
Cash Flow Net Cash Flow* (Unit : KRW B) Change in 218 Working Capital, etc. Depreciation 698 CAPEX & Capital Investment 606 Net Income 759 633 Cash In Cash Out Net* * Excludes cash flow from financing activities. KGAAP (Consolidated) Source: Company financials Cash Flow (Unit : KRW B) Cash at the be
Slide 8: Performance Highlights
Performance Highlights ons @ic display
Slide 9: Shipments and ASP
Shipments and ASP Total K m²* ASP/m² ** (USD) $1,274 $1,364 $1,375 $1,339 $1,274 $1,500 $1,000 Display area shipment in K m2 ASP per m2 (USD) Source: Company financials * Net display area shipped ** Quarterly average selling price per square meter of net display area shipped Revenue: Product Mix 100
Slide 10: Revenue by Product Mix
50% 24% 26% 26% 50% 44% 43% 0 Q4 ’07 Q1 ’08 Q2 ’08 TVs Monitors Notebooks Applications Source: Company financials, USD Base
Slide 11: Capacity Update
Capacity Update Quarterly input capacity by Area (K m² ) P7 P6 P5 P4 P1-P3 Source: Company financials
Slide 12: Outlook
Outlook 1205 @ Lc Display
Slide 13: Outlook
Outlook CAPEX Plan (KRW) Approx. 4.5T Total Shipment in m2 (QoQ) 3.2T Low Twenties (%) up Avg QoQ ASP per m2 (USD) Mid teens (%) down 961B 0.5T COGS per m2 (USD) 535B Mid to high single digit (%) down 223B 0.8T 203B 2007 2008 Future P7 Max Capa Others Source: Company financials (delivery base) Quest
Slide 14: Questions and Answers
Questions and Answers ans @ic display
Slide 15: Appendix
Appendix 1595 @ Lc Display
Slide 16: K GAAP Income Statement
K GAAP Income Statement KRW bn QoQ Change YoY Change Revenues 4% 26% COGS 4% 1% Gross Profit 6% 262% Operating Income 1% 493% EBITDA 1% 90% Income before Tax 2% 650% Net Income 6% 233% Margin (%) Gross Margin Operating Margin (1) EBITDA Margin (1) Net Margin Source: Unaudited, Company financials LG
Slide 17: K GAAP Balance Sheet
K GAAP Balance Sheet KRW bn QoQ Change YoY Change Assets 10% 23% Cash* 28% 210% Inventory 35% 44% Liabilities 12% 8% Short-term Debt 49% 131% Long-term Debt (-7%) (-30%) Shareholders’ Equity 9% 37% Net Debt to Equity Ratio (%) (7) (44) Source: Unaudited, Company financials K GAAP (Consolidated) * Ca
Slide 18: K GAAP Cash Flow
K GAAP Cash Flow KRW bn QoQ Change YoY Change Net Income Depreciation & Amortization Others Working Capital* (518) (412) (563) (106) Cash Flow from Operation CF from Investing Activities** (606) (330) (512) (276) (94) CF before Financing Activities (124) (110) Other Financing Activities (318) (168)
Slide 19: US GAAP Income Statement
US GAAP Income Statement KRW bn QoQ Change YoY Change Revenues 4% 26% COGS 4% 1% Gross Profit 6% 255% Operating Income 1% 512% EBITDA 1% 93% Income before Tax 4% 524% Net Income 11% 184% Margin (%) Gross Margin Operating Margin (1) EBITDA Margin (1) Net Margin Source: Unaudited,Company financials US
Slide 20: US GAAP Balance Sheet
US GAAP Balance Sheet KRW bn QoQ Change YoY Change Assets 10% 23% Cash* 28% 210% Inventory 35% 44% Liabilities 12% 10% Short-term Debt 49% 131% Long-term Debt (-6%) (-28%) Shareholders’ Equity 9% 36% Net Debt to Equity Ratio (%) (7) (43) Source: Unaudited, Company financials US GAAP (Consolidated) *
Slide 21: US GAAP Cash Flow
US GAAP Cash Flow KRW bn QoQ Change YoY Change Net Income Depreciation & Amortization Others Working Capital* (518) (412) (570) (106) Cash Flow from Operation CF from Investing Activities** (606) (330) (512) (276) (94) CF before Financing (124) (110) Other Financing Activities (318) (168) Dividend (
Slide 22: Net Income Reconciliation to US GAAP
Net Income Reconciliation to US GAAP KRW bn H1 ’08 Net Income under K GAAP US GAAP Adjustments (14) (58) Depreciation of PP&E (1) Amortization of IPR ESOP (1) (1) 345kv (1) (1) Pension expense (1) Bonds/CB (including F/X effect) (28) (57) Available-for-sales securities Stock appreciation rights Cash
Slide 23: EBITDA Reconciliation
EBITDA Reconciliation K GAAP EBITDA KRW bn QoQ Change YoY Change 1. Operating Income 2. Depreciation of PP&E 3. Amortization of Intangible Asset EBITDA (1+2+3) US GAAP EBITDA KRW bn QoQ Change YoY Change 1. Operating Income 2. Depreciation of PP&E 3. Amortization of Intangible Asset EBITDA (1+2+3) S
Slide 24: EBITDA Reconciliation (Continued)
EBITDA Reconciliation (Continued) We are adding depreciation and amortization to operating income to calculate EBITDA. It is a key financial measure used by our senior management to internally evaluate the performance of our business and for other required or discretionary purposes. We believe that
Slide 25: Where Value Creation Begins
Where Your Value Creation Begins LG Display www.lgdisplay.com 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 Display Co., Ltd. (Registrant) Date: J