LG Display Co Ltd (LPL) 2022 Q3 法說會逐字稿

Good morning, and good evening. First of all, thank you all for joining this conference call. And now we will begin the conference of the Fiscal Year 2022 Third Quarter Earnings Results by LG Display. This conference will start with a presentation, followed by a divisional Q&A Session. (Operator Instructions)

早上好，晚上好。首先，感謝大家參加本次電話會議。現在我們將開始 LG Display 的 2022 財年第三季度收益結果會議。本次會議將以演講開始，隨後是部門問答環節。 （操作員說明）

Now, we shall commence the presentation on the fiscal year 2022 third quarter earnings results by LG Display.

現在，我們將開始介紹 LG Display 2022 財年第三季度的收益結果。

(foreign language)

（外語）

Good morning. This is Brian Heo in charge of LG Display's IR. On behalf of the company, let me thank all the participants at this conference call.

早上好。這是負責 LG Display IR 的 Brian Heo。我代表公司感謝本次電話會議的所有參與者。

Today, I'm joined by the CFO, Sung-Hyun Kim; Hee-Yeon Kim, Senior Vice President of Corporate Strategy Group; [Sung-Min Kim], Vice President of Corporate Planning, [Kee Yong Hee] in charge of Business Intelligence; Daniel Lee, in charge of Large Display Marketing; Seong Gon Kim, in charge of Medium Display Marketing; and Ki Hwan Son, Vice President of Auto Marketing.

今天，首席財務官 Sung-Hyun Kim 也加入了我的行列。企業戰略部高級副總裁 Hee-Yeon Kim； [Sung-Min Kim]，企業企劃副總裁，[Kee Yong Hee] 負責商業智能； Daniel Lee，負責大屏營銷； Seong Gon Kim，負責媒體展示營銷；和汽車營銷副總裁 Ki Hwan Son。

(foreign language)

（外語）

The conference call will be conducted in both Korean and English. Please refer to the provisional earnings released today or the IR Events section in the company's website for more details on the financial results of Q3 2022.

電話會議將以韓語和英語進行。有關 2022 年第三季度財務業績的更多詳細信息，請參閱今天發布的臨時收益或公司網站的 IR 事件部分。

(foreign language)

（外語）

Before we begin the presentation, please take a moment to read the disclaimer.

在我們開始演示之前，請花點時間閱讀免責聲明。

(foreign language)

（外語）

Please note that today's results are based on consolidated IFRS standards prepared for your benefit and have not yet been audited by an outside auditor.

請注意，今天的結果基於為您的利益而編制的綜合 IFRS 標準，尚未經過外部審計師的審計。

(foreign language)

（外語）

Let me start off with our business performance in Q3. With worsening macro economy in Q3, panel demand fell more sharply than expected, with sluggish sales by set makers, large inventory reduction and stronger standards for inventory operations. In Europe, the biggest market for OLED TV, consumer confidence contracted rapidly following the Russia-Ukraine war and energy crisis, pulling down actual set sales to the negative territory.

讓我從第三季度的業務表現開始。隨著第三季度宏觀經濟的惡化，面板需求下降幅度超過預期，主要是設備製造商銷售疲軟，庫存大幅減少以及庫存操作標準更加嚴格。在 OLED 電視的最大市場歐洲，消費者信心在俄烏戰爭和能源危機後迅速收縮，將實際電視機銷量拉低至負值。

Demand reduction has been most pronounced where the company is strongest in high-end TV and IT, and our business performance in Q3 underperformed our guidance.

在公司在高端電視和 IT 領域最強的地方，需求減少最為明顯，我們在第三季度的業務表現低於我們的指導。

(foreign language)

（外語）

Revenue in Q3 was KRW6.771 trillion, up 21% Q-o-Q, but down 6% Y-o-Y. There was growth in shipment of IT products that have been affected by lockdowns in our Chinese production bases last quarter and growth in shipments of mobile and wearables, but LCD panel price kept declining. There was operating loss of KRW759 billion. Aside from soft sales of large OLED, there were accelerated decline in LCD panel price and delay in supply of new mobile models.

第三季度收入為 6.771 萬億韓元，環比增長 21%，但同比下降 6%。受中國生產基地停工影響，IT產品出貨量有所增長，移動和可穿戴設備出貨量有所增長，但液晶面板價格持續下降。營業虧損7590億韓元。除了大尺寸OLED銷售疲軟外，液晶面板價格加速下滑，手機新機型供應延遲。

(foreign language)

（外語）

Operating profit margin in Q3 was minus 11%, with EBITDA margin at 6%. There was net loss of KRW774 billion.

第三季度的營業利潤率為負 11%，EBITDA 利潤率為 6%。淨虧損7740億韓元。

(foreign language)

（外語）

Next is area shipment and ASP trend. Area shipment in Q3 was 7.68million square meters, decreasing 2% from the previous quarter. There was a decrease in shipment, mainly in OLED TV and monitor products. ASP per square meter was $675, going up 19% Q-o-Q. This is owed to the increase in portion of smartphones and wearables.

其次是面積出貨量和平均售價趨勢。第三季度出貨面積為768萬平方米，環比下降2%。出貨量下降，主要是OLED電視和顯示器產品。每平方米平均售價為 675 美元，環比增長 19%。這是由於智能手機和可穿戴設備的比例增加。

(foreign language)

（外語）

The company's production capacity in Q3 decreased 3% Q-o-Q as the exit strategy for domestic LCD TV fab picked up speed.

由於國內液晶電視廠退出戰略提速，公司第三季度產能環比下降 3%。

(foreign language)

（外語）

Next is revenue breakdown by product segment. TV panels accounted for 25%, down 6 percentage points Q-o-Q. OLED panel shipment decreased, and LCD panel price continued to decline. Share of IT panel was flat Q-o-Q at 45%. There was decrease in monitor panel shipments, but also recovery from shipment disruptions resulting from Chinese lockdowns in Q2. Mobile and others were 30%, up 6 percentage points Q-o-Q with growth in shipment of smartphones and wearables.

接下來是按產品細分的收入細分。電視面板佔比 25%，環比下降 6 個百分點。 OLED面板出貨量減少，LCD面板價格繼續下滑。 IT 面板的份額環比持平，為 45%。顯示器面板出貨量有所下降，但也從第二季度中國封鎖導致的出貨中斷中恢復過來。隨著智能手機和可穿戴設備出貨量的增長，移動設備和其他設備佔 30%，環比增長 6 個百分點。

(foreign language)

（外語）

Next is the company's financial position and ratios. The company's cash and cash equivalent was KRW3.264 trillion, staying above the KRW3 trillion line. Inventory was KRW4.517 trillion, decreasing by KRW205 billion Q-o-Q. As for the main financial ratios, debt-to-equity ratio was 181% and net debt to equity ratio, 84%, both up Q-o-Q.

其次是公司的財務狀況和比率。公司現金及現金等價物為3.264萬億韓元，保持在3萬億韓元線以上。庫存為 4.517 億韓元，環比減少 2,050 億韓元。主要財務比率方面，資產負債率為181%，淨資產負債率為84%，均環比上升。

(foreign language)

（外語）

Next is cash flow. The company's cash and cash equivalent at the start of Q3 was KRW3.669 trillion. It decreased by KRW405 billion and stood at KRW3.264 trillion at the end of Q3 after OLED investment and net loss in the quarter.

其次是現金流。該公司在第三季度初的現金和現金等價物為 36.69 萬億韓元。在 OLED 投資和季度淨虧損之後，第三季度末減少了 4050 億韓元，為 3.264 萬億韓元。

(foreign language)

（外語）

Let me now move on to guidance for Q4 2022. Market volatility and uncertainties are expected to persist, but the effect of seasonality in response to year-end demand in Q4 will push up area shipments Q-o-Q by a low to mid-single digit. ASP per square meter is also expected to climb up by mid- to high single-digit, thanks to increase in new mobile product launches.

現在讓我繼續討論 2022 年第四季度的指導。預計市場波動和不確定性將持續存在，但季節性對第四季度年終需求的影響將推動地區出貨量環比增長低至中個位數。由於新的移動產品推出的增加，每平方米的平均售價也有望以中高個位數攀升。

(foreign language)

（外語）

Next is presentation by the company's CFO, Sung-Hyun Kim, on operational strategy.

接下來是公司首席財務官 Sung-Hyun Kim 關於運營戰略的介紹。

(foreign language)

（外語）

Good afternoon and good evening. This is CFO, Sung-Hyun Kim, of LG Display.

下午好，晚上好。我是 LG Display 的首席財務官 Sung-Hyun Kim。

(foreign language)

（外語）

The display market remains subdued as a result of soft set sales and large inventory reduction, as well as tighter criteria for inventory management. The company has pursued business upgrade in the past 3 years, but it was challenging to overcome the severe demand downturn and high market volatility.

由於銷售疲軟和大量庫存減少以及更嚴格的庫存管理標準，顯示器市場仍然低迷。公司在過去 3 年一直在追求業務升級，但要克服嚴重的需求低迷和市場劇烈波動的情況具有挑戰性。

(foreign language)

（外語）

From a conservative perspective that accommodates a prolonged business downturn, the company will deal with the situation even more seriously with a tighter response based on more stringent operation standards. Given the company's financials, we will place the utmost priority on recovering our financial soundness. We will keep up the business upgrade activities while accelerating business realignment.

從適應業務長期低迷的保守角度來看，公司將更加嚴肅地應對形勢，在更加嚴格的經營標準基礎上更加嚴密的應對。鑑於公司的財務狀況，我們將把恢復財務穩健作為重中之重。我們將在加快業務調整的同時，繼續開展業務升級活動。

(foreign language)

（外語）

We will first implement high-intensity action plans to recover financial soundness. First is accelerating LCD TV exit strategy. For LCD TV, where there are little room for differentiated competitiveness and excessive performance volatility depending on market situation, we will pull up the timing of terminating production in Gen 7 TV fab in Korea. We will also gradually reduce production in Gen 8 TV fab in China to speedily move ahead with our LCD exit strategy. The company will accelerate our shift to OLED through more aggressive exit from LCD TV.

我們將首先實施高強度行動計劃，以恢復金融穩健。一是加速液晶電視退出戰略。對於液晶電視，差異化競爭力的空間很小，根據市場情況，性能波動過大，我們將推遲韓國第 7 代電視工廠的停產時間。我們還將逐步減少中國第 8 代電視工廠的產量，以快速推進我們的 LCD 退出戰略。該公司將通過更積極地退出液晶電視來加速我們向 OLED 的轉變。

(foreign language)

（外語）

Second is bold reduction and higher efficiency in investment and cost. The company will minimize investment and operation costs, except for essential ordinary investment until when our financial soundness is improved significantly. We will reduce CapEx by over KRW1 trillion from the plan earlier this year to keep it within DNA level. We have also revisited our existing plan so that from next year and on, CapEx will remain within EBITDA in terms of cash flow, mainly limited to essential ordinary investment to keep it at half the level of depreciation and amortization. For expenses, the company will also allocate and manage them under more stringent requirements from a conservative management scenario.

二是在投資和成本上大膽減量，提高效率。公司將盡量減少投資和運營成本，除非是必要的普通投資，直到我們的財務穩健性得到顯著改善。我們將在今年早些時候的計劃中將資本支出減少超過 1 萬億韓元，以使其保持在 DNA 水平。我們還重新審視了我們現有的計劃，以便從明年起，資本支出在現金流方面將保持在 EBITDA 範圍內，主要限於基本的普通投資，以將其保持在折舊和攤銷水平的一半。對於費用，公司也將在保守的管理情景下按照更嚴格的要求進行分配和管理。

(foreign language)

（外語）

Third is managing inventory at the minimum level. Inventory at the end of Q3 was KRW4.5 trillion, slightly lower Q-o-Q, but we will reduce an additional KRW1 trillion by the end of the year to keep it below the adequate level. Production will also be boldly adjusted in linkage to inventory.

三是最低限度地管理庫存。第三季度末的庫存為 4.5 萬億韓元，環比略有下降，但我們將在年底前再減少 1 萬億韓元，以保持低於充足水平。生產也將與庫存掛鉤，大膽調整。

(foreign language)

（外語）

As we place the utmost importance on recovering financial soundness, we will also accelerate business realignment. We keep upgrading our business structure with more focus on high-end LCD and OLED. We are also accelerating our move to order-based business to minimize volatility coming from supply-demand dynamics to secure a stable revenue structure and strengthen our future business portfolio.

在我們高度重視恢復財務穩健的同時，我們還將加快業務重組。我們不斷升級業務結構，更加專注於高端 LCD 和 OLED。我們還在加速轉向基於訂單的業務，以最大限度地減少供需動態帶來的波動，以確保穩定的收入結構並加強我們未來的業務組合。

(foreign language)

（外語）

In terms of strategic orientation for each business segment, in large panel products, the company will shift to an operational structure based on real demand. We will strengthen our product and cost competitiveness to secure the basis for profitability and focus on qualitative growth. In addition to ultra large OLED, the company will broaden its life display business by increasing differentiated products based on customer value, such as gaming. But under the conservative outlook that macro uncertainties will persist until next year, we will manage our business under tighter criteria.

在各業務板塊的戰略定位上，在大面板產品方面，公司將轉向基於實際需求的運營結構。我們將加強我們的產品和成本競爭力，以確保盈利基礎並專注於質量增長。除了超大尺寸OLED外，該公司還將通過增加基於客戶價值的差異化產品（例如游戲）來擴大其生活顯示業務。但在宏觀不確定性將持續到明年的保守前景下，我們將在更嚴格的標準下管理我們的業務。

(foreign language)

（外語）

Medium products used to be an important revenue source based on differentiated technology and a strong customer pool, but general use products are increasingly showing volatility in connection to LCD TV. Against this backdrop, the company will strengthen its customer relations and strategy of concentrating on high-end products. We will first increase market share in high-end monitors and notebooks, where the company already has differentiated competitiveness with the goal of minimizing business volatility. And the company will prepare monitors based on its competitive large OLED technology, starting with tablet OLED, which will go into mass production in 2024. We will also broaden into notebook OLED. Our goal is to keep strengthening medium OLED business portfolio over the mid- to long term.

中型產品曾經是基於差異化技術和強大客戶群的重要收入來源，但通用產品與液晶電視相關的波動性越來越大。在此背景下，公司將加強客戶關係和專注於高端產品的戰略。我們將首先增加高端顯示器和筆記本電腦的市場份額，該公司已經具有差異化競爭力，目標是最大限度地減少業務波動。公司將基於其具有競爭力的大尺寸OLED技術準備顯示器，從平板OLED開始，2024年開始量產。我們還將擴展到筆記本OLED。我們的目標是在中長期內繼續加強中型 OLED 業務組合。

(foreign language)

（外語）

In small OLED, we will further strengthen our capability in order-based business with an eye towards stabilizing business operations and preparing the next-gen technology at the right time to take initiatives in future businesses.

在小型OLED方面，我們將進一步加強我們的訂單業務能力，著眼於穩定業務運營並適時準備下一代技術以在未來業務中採取主動。

(foreign language)

（外語）

In auto, the company is solidifying its leadership and winning global OEMs' trust by running customer-specific strategy that provides differentiated value in each category like OLED and LTPS LCD.

在汽車領域，該公司正在鞏固其領先地位並贏得全球 OEM 的信任，通過實施針對客戶的戰略，在 OLED 和 LTPS LCD 等每個類別中提供差異化價值。

(foreign language)

（外語）

The company's hard work over the years in auto business is now bearing fruit, with growing achievements coming out of our early investment. We will keep developing our auto business to be the overwhelming leader in the future by providing differentiated customer value.

公司多年來在汽車業務上的辛勤耕耘，如今已結出碩果，我們的早期投資成果不斷增長。我們將通過提供差異化的客戶價值，繼續發展我們的汽車業務，成為未來壓倒性的領導者。

(foreign language)

（外語）

The company will try to secure stability and upgrade future business portfolio through the aforementioned financial soundness plan and strategy to accelerate business realignment.

公司將通過上述財務穩健計劃和戰略，努力確保穩定併升級未來的業務組合，以加速業務重組。

(foreign language)

（外語）

Some positive signals began to emerge recently from changes in LCD panel price, but the company will still keep up the strong drive to implement our business strategy. The challenging business environment is expected to continue into next year. The company will realign its strategic tasks in line with the changing environment and heighten its execution to position ourselves for another leap forward.

近期液晶面板價格的變化開始出現一些積極的信號，但公司仍將保持強勁的動力來實施我們的業務戰略。充滿挑戰的商業環境預計將持續到明年。公司將根據不斷變化的環境重新調整戰略任務，加強執行力，為又一次飛躍做好準備。

Thank you very much for your attention.

非常感謝您的關注。

(foreign language)

（外語）

That brings us to the end of earnings presentation for Q3 2022. We will now take questions. Operator, please commence with the Q&A session.

這使我們結束了 2022 年第三季度的收益報告。我們現在將回答問題。接線員，請開始問答環節。

(foreign language)

（外語）

(Operator Instructions)

（操作員說明）

(foreign language)

（外語）

The first question will be presented by SK Kim from Daiwa Capital Markets.

第一個問題將由大和資本市場的 SK Kim 提出。

(foreign language)

（外語）

I have one question about OLED TV and another regarding auto business. Now first, I would say that it would be very important for the company to achieve turnaround in the OLED TV business. But recently, there have been some news about the suspension of the OLED TV line or production cuts. So then for the company, when does it expect to see a meaningful turnaround in the OLED TV business? And of course, I do understand that the market is currently quite struggling. But when does the company believe that there can be a turnaround in OLED TV business and what are the conditions that you believe will enable such a turnaround?

我有一個關於 OLED 電視的問題和另一個關於汽車業務的問題。首先，我想說的是，對於公司來說，實現 OLED 電視業務的扭虧為盈非常重要。但最近，有一些關於OLED電視線停產或減產的消息。那麼對於該公司來說，預計 OLED 電視業務何時會出現有意義的轉機呢？當然，我確實理解市場目前非常掙扎。但該公司認為 OLED 電視業務何時會出現轉機，您認為哪些條件可以實現轉機？

And the second question is the CFO also mentioned this briefly in the presentation about how in the auto business, the company will be seeing meaningful achievements in the second half. And if you could share more details regarding such achievements. So for example, what would be the order backlog in auto business and also any developments related to OLED?

第二個問題是首席財務官在關於汽車業務如何在下半年看到有意義的成就的演講中也簡要提到了這一點。如果您可以分享有關此類成就的更多詳細信息。例如，汽車業務的訂單積壓以及與 OLED 相關的任何發展？

(foreign language)

（外語）

Regarding the large OLED business, it will be Daniel Lee in charge of Large Display Marketing, who will respond to the question. (foreign language)

至於大尺寸OLED業務，大屏市場部的Daniel Lee將會回答這個問題。 （外語）

Now as we all know, there is the macroeconomic crisis that is ongoing and there is also the assumption that the Russia-Ukraine war will perhaps last longer than initially expected. So, there were also some thinking that it would be inevitable for us to adjust the utilization and -- so in order to not undermine the value of OLED. And so we would -- for the time being, we would be maintaining our capacity in line with the real demand in order to enhance our cost competitiveness. And for the remaining lines, we would also be utilizing them to broaden our business in such areas as life display and also for other development purposes.

現在眾所周知，宏觀經濟危機仍在繼續，還有一種假設，即俄烏戰爭的持續時間可能比最初預期的要長。因此，也有人認為我們不可避免地會調整利用率，並且——為了不破壞 OLED 的價值。所以我們會 - 暫時，我們將根據實際需求保持我們的產能，以提高我們的成本競爭力。對於其餘的生產線，我們還將利用它們來擴大我們在生活展示等領域的業務以及其他發展目的。

(foreign language)

（外語）

So regarding the TV business, we will be upwardly adjusting the utilization rate later on as we monitor the real demand developments. And we will also try to broaden our products that offer differentiated value like gaming, as was also mentioned during the presentation.

因此，關於電視業務，我們稍後將在監控實際需求發展時向上調整利用率。我們還將嘗試擴展我們提供差異化價值的產品，如游戲，正如演講中提到的那樣。

(foreign language)

（外語）

And this is Hee Yeon Kim, Senior Vice President of Corporate Strategy Group, and I would like to make additional comments regarding OLED.

我是企業戰略集團高級副總裁 Hee Yeon Kim，我想對 OLED 發表更多評論。

(foreign language)

（外語）

Now, of course, there is the macro situation that has dampened demand, but also in addition to that, when we look at the overall market, then in terms of the TV, the -- out of the total TV, European market takes up only about mid- to high 10 percentage level. But then for the company, for the company's OLED TV, Europe actually takes up over 45%. So given the Russia-Ukraine war, the OLED TV demand in Europe has shrunk considerably. And this then has also affected the sales of the company's OLED. So not knowing when the Ukraine-Russia war is going to end, the company judged that it would be best to hedge our risks. But we believe that once the European situation improves, then our OLED sales will also pick up.

當然，現在有宏觀形勢抑制了需求，但除此之外，當我們看整體市場時，就電視而言，在整個電視中，歐洲市場佔據了主導地位。只有大約 10% 的中高水平。但是對於公司來說，對於公司的 OLED 電視來說，歐洲實際上佔據了超過 45% 的份額。所以考慮到俄烏戰爭，歐洲的OLED電視需求大幅縮水。而這也影響了該公司OLED的銷售。因此，不知道烏俄戰爭何時結束，該公司判斷最好對沖我們的風險。但我們相信，一旦歐洲形勢好轉，那麼我們的 OLED 銷量也會有所回升。

(foreign language)

（外語）

This is Ki-hwan Son, Vice President of Auto Market responding to your question about the auto business.

我是汽車市場副總裁 Ki-hwan Son 在回答您關於汽車業務的問題。

(foreign language)

（外語）

Now regarding the order backlog, please understand that I am not at liberty to give you the specific numbers. But then in 2020, the order backlog was around 2 weeks, but now in 2021-'22 period, it had moved up to around 4- to 5-week level. And so this is thanks to the -- sorry, so it's actually -- so in 2020, it was around KRW2 trillion. And then in '21-'22, it was around KRW4 trillion to KRW5 trillion. So on the back of strong sales efforts for both OLED and premium LTPS-LCD, the order backlog has gone up by about 40% in 2022 Y-o-Y.

現在關於訂單積壓，請理解我無權向您提供具體數字。但是在 2020 年，訂單積壓大約是 2 週，但現在在 2021-'22 期間，它已經上升到大約 4 到 5 週的水平。所以這要歸功於——對不起，實際上是——所以在 2020 年，它大約是 2 萬億韓元。然後在'21-'22，大約是4萬億韓元到5萬億韓元。因此，在 OLED 和優質 LTPS-LCD 的強勁銷售努力的支持下，2022 年的訂單積壓同比增長了約 40%。

(foreign language)

（外語）

And for the order backlog for the OLED, now in '21, its share was about 30%. In 2022, it went up to 45%. So, we see that there has been a stable and steady shift in our business portfolio toward OLED. And now in terms of the OLED mass production, now to the premium OEM, we are currently preparing about 4 to 5 new OLED.

而對於 OLED 的訂單積壓，現在在 21 年，其份額約為 30%。到 2022 年，這一比例上升到 45%。因此，我們看到我們的業務組合已經穩定而穩定地轉向 OLED。而現在在 OLED 量產方面，現在對於高端 OEM，我們目前正在準備大約 4 到 5 個新的 OLED。

(foreign language)

（外語）

(foreign language)

（外語）

The next question will be presented by Jung Hoon Chang from Samsung Securities.

下一個問題將由三星證券的 Jung Hoon Chang 提出。

(foreign language)

（外語）

I have some questions about the panel price and then the IT panel. Now in October, we see that especially for the TV, the panel prices have begun to rebound. But then for the set makers, regardless of the panel prices being down earlier, the demand -- so in their case, the demand is not really picking up very actively. So then how does the company currently see the developments in demand? So what is the company's projection for demand? And also with regards to the price trends, what is the company's forecast?

我對面板價格和 IT 面板有一些疑問。現在10月份，我們看到尤其是電視，面板價格已經開始反彈。但是對於電視機製造商來說，無論面板價格早先下降，需求 - 所以在他們的情況下，需求並沒有真正活躍起來。那麼，公司目前如何看待需求的發展？那麼公司對需求的預測是什麼？還有關於價格趨勢，公司的預測是什麼？

And the second question is about the IT panel. And we see that the IT panel's share out of the company's total business continues to rise. But we see that the notebook company still maintain quite conservative business plan. So then when the IT demand picks up, then does the company also believe that the IT panel would begin to rebound as well? And if not in the near future, then when does the company believe that, that will happen? So if you could share this information with us, that would be helpful.

第二個問題是關於 IT 小組的。我們看到，IT 面板在公司總業務中的份額繼續上升。但我們看到，筆記本公司仍然保持著相當保守的商業計劃。那麼當IT需求回升時，公司是否也認為IT板塊也會開始反彈呢？如果不是在不久的將來，那麼公司什麼時候相信會發生這種情況？因此，如果您可以與我們分享這些信息，那將會很有幫助。

(foreign language)

（外語）

This is [Kee Yong Hee] in charge of Business Intelligence, responding to a question about panel price.

我是商務智能負責人[Kee Yong Hee]，回答有關面板價格的問題。

(foreign language)

（外語）

Now recently, we are seeing some positive changes in the LCD panel price, so the prices of the LCD panels going to China.

最近，我們看到液晶面板價格出現了一些積極的變化，因此液晶面板的價格將進入中國。

(foreign language)

（外語）

Well, the situation in the market is that there is still oversupply. But in order to ensure survival, the panel companies have begun to increase the prices and we believe that this attempt will continue.

那麼，市場的情況是仍然供過於求。但為了保證生存，面板企業已經開始漲價，我們相信這種嘗試會繼續下去。

(foreign language)

（外語）

But still the demand for this year and next year will remain weak due to the worsening macro environment. So given the dampened real demand, the rise in the panel prices, there are a lot of questions on whether this will be sustainable.

但由於宏觀環境的惡化，今明兩年的需求仍將保持疲軟。因此，鑑於實際需求減弱，面板價格上漲，這是否可持續存在很多問題。

(foreign language)

（外語）

And in terms of IT as well, the demand is expected to recover after the second half of next year. So the price competition among panel makers is expected to continue.

而在 IT 方面，預計需求將在明年下半年之後恢復。因此面板廠商之間的價格競爭有望繼續。

(foreign language)

（外語）

But at the same time, the situation where it is lower than the cash cost cannot continue. So, we also believe that there is going to be some self-adjustment efforts by the industry, for example, restructuring or production cuts. And this will serve to reduce supply.

但同時，低於現金成本的情況也無法持續。因此，我們也認為行業將進行一些自我調整，例如重組或減產。這將有助於減少供應。

(foreign language)

（外語）

Now when there is still a high level of demand uncertainty, if there is no large-scale adjustment on the supply side, then the panel prices will remain weak.

現在在需求不確定性仍然很高的情況下，如果供給端沒有大範圍的調整，那麼面板價格將持續疲軟。

(foreign language)

（外語）

(foreign language)

（外語）

The next question will be presented by Won-Suk Chung from HI Investment & Securities.

下一個問題將由 HI Investment & Securities 的 Won-Suk Chung 提出。

(foreign language)

（外語）

I have 2 questions. The first is about the LCD exit strategy. So the presentation mentioned about the shutdown in the Gen 7 TV fab in Korea and also the Gen 8 TV fab in China. So can the company share with us the timeline for the shutdown? And at the time -- so -- and also in relation to the shutdown, will there also be one-off costs incurred?

我有 2 個問題。首先是關於 LCD 的退出策略。所以演講中提到了韓國第 7 代電視工廠和中國第 8 代電視工廠的關閉。那麼公司可以與我們分享關閉的時間表嗎？當時 - 所以 - 以及與關閉有關，是否還會產生一次性費用？

And the second question is now for the large OLED TV, we see that the demand remains quite sluggish. And of course, nobody knows when the Russia war is going to end. But can the company share with us some guidance for the shipment of large OLED for this year and also for next year?

第二個問題是現在對於大型 OLED 電視，我們看到需求仍然相當低迷。當然，沒有人知道俄羅斯戰爭何時結束。但是公司能否與我們分享一些今年和明年大尺寸OLED出貨量的指導？

(foreign language)

（外語）

This is Hee Yeon Kim of Corporate Strategy Group responding to your question about the timeline for the capacity reduction.

我是 Corporate Strategy Group 的 Hee Yeon Kim 回答您關於產能削減時間表的問題。

(foreign language)

（外語）

Now, we would be reducing 130,000 from P7 and 80,000 from Gen 8. And for P7, this will be pulling up the timeline by about 6 months to 1 year from the original schedule. And for Gen 8, the production cut would also occur around the same time. Some are already underway and some will take place, but please understand that it is difficult for us to give you a fixed timeline at this time because we are undertaking this in discussion with the customers as well as related stakeholders.

現在，我們將從 P7 減少 130,000 個，從 Gen 8 減少 80,000 個。對於 P7，這將使時間線比原計劃提前 6 個月至 1 年。而對於第 8 代，減產也將在同一時間發生。有些已經在進行中，有些將要進行，但請理解，我們目前很難給您一個固定的時間表，因為我們正在與客戶以及相關利益相關者進行討論。

(foreign language)

（外語）

And with regards to the questions that you might have about the milestone as well as the one-off costs, then we would have further discussions with the customers as well as the employees and try to share with you through IR within the year.

關於里程碑和一次性費用的問題，我們將與客戶和員工進一步討論，並嘗試在年內通過 IR 與您分享。

(foreign language)

（外語）

And this is Daniel Lee from Large Display Marketing responding to your question about the guidance for large OLED shipment.

我是大型顯示器營銷部的 Daniel Lee，回答您關於大型 OLED 出貨指導的問題。

(foreign language)

（外語）

No, I'm sure that we all know that the TV market environment continues to be sluggish. But then in the customer's mind, we believe that the value of the OLED TV is already firmly entrenched. So although the market has been struggling, but we see that in terms of year-on-year growth, it continues to grow and also the company's market share continues to increase.

不，我相信我們都知道電視市場環境繼續低迷。但在客戶心中，我們相信OLED電視的價值已經根深蒂固。所以雖然市場一直在苦苦掙扎，但我們看到，在同比增長方面，它繼續增長，公司的市場份額也在不斷增加。

(foreign language)

（外語）

But in terms of the panel shipment, we are expecting negative growth this year, Y-o-Y, due to the sluggish real sales in Europe and also adjustment by the set makers.

但在面板出貨量方面，我們預計今年將出現負增長，原因是歐洲的實際銷售低迷以及設備製造商的調整。

(foreign language)

（外語）

And looking ahead to 2023, the inventory adjustment through the distribution channels and the set makers will come to a near completion by then. So we believe that, that is going to reduce the gap between panel shipment and set sales. So in 2023, the guidance for panel shipment would be about 7 million.

展望2023年，通過分銷渠道和設備製造商的庫存調整將接近完成。所以我們相信，這將縮小面板出貨量和成套銷量之間的差距。因此，2023年面板出貨量指導值約為700萬片。

(foreign language)

（外語）

(foreign language)

（外語）

The last question will be presented by Hyung-soo Kim from Hana Securities.

最後一個問題將由 Hana Securities 的 Hyung-soo Kim 提出。

(foreign language)

（外語）

I have some questions about the OLED IT panel. Now for the medium panel, it was mentioned earlier that the company is also responding to the OLED penetration in the medium panel. Then what about the smartphone market and mobile markets? So does the company also believe that there would be a similar increase in the OLED penetration as we are now seeing in the medium panel? And so what is the LG Display's view regarding the OLED penetration? And also there was announcement last year of about KRW3.3 trillion investment in Gen 6 IT. So what is the execution of this planned investment so far? And are there any plans for additional investment to be made for the customers in North America?

我對 OLED IT 面板有一些疑問。現在對於中型面板，前面提到公司也在應對OLED在中型面板的滲透。那麼智能手機市場和移動市場呢？那麼該公司是否也相信 OLED 的滲透率會像我們現在在中型面板中看到的那樣出現類似的增長？那麼，LG Display 對 OLED 滲透率有何看法？去年還宣布對第 6 代 IT 投資約 3.3 萬億韓元。那麼到目前為止，這項計劃投資的執行情況如何？是否有計劃為北美客戶進行額外投資？

(foreign language)

（外語）

Regarding the question about IT OLED, this is Hee Yeon Kim from Corporate Strategy responding.

關於IT OLED的問題，我是Corporate Strategy的Hee Yeon Kim回答。

(foreign language)

（外語）

First, let me touch upon the growth potential of the IT OLED market as well as its value.

首先，讓我談談 IT OLED 市場的增長潛力及其價值。

(foreign language)

（外語）

Now for IT OLED, now it is also shaping the market following the mobile and the TV OLED. So, I would say that the mobile and the TV market is serving as the basis for the IT OLED as well.

現在對於 IT OLED，現在它也在塑造著繼手機和電視 OLED 之後的市場。因此，我會說移動和電視市場也是 IT OLED 的基礎。

(foreign language)

（外語）

Now for mobile, because of the multifunctional characteristics in terms of the [POLED] penetration, it is close to 40%. But then in case of TV, the OLED penetration is only at 5%.

現在移動端，由於多功能特性，在[POLED]滲透率方面，接近40%。但就電視而言，OLED 的滲透率僅為 5%。

(foreign language)

（外語）

And for IT OLED, we believe that it would roughly follow the developments or the characteristics of the mobile devices. So, we are carefully keeping up with the mobile trends for the -- in relation to IT OLED as well.

而對於IT OLED，我們認為它會大致跟隨移動設備的發展或特點。因此，我們也在密切關注與 IT OLED 相關的移動趨勢。

(foreign language)

（外語）

Now when we look at the customer payment scheme, in mobile, there is usually 3-year installment payments. But then in the case of IT, usually it's a one-time down payment. So although the value is high, perhaps the acceptability on the customer side might be lower in IT than in mobile.

現在，當我們查看客戶付款方案時，在移動設備中，通常有 3 年的分期付款。但在 IT 的情況下，通常是一次性的首付。因此，儘管價值很高，但在 IT 領域，客戶方面的接受度可能低於移動領域。

(foreign language)

（外語）

And regarding the mass production schedule for IT OLED, we have already made the -- we have already given the announcement, and we are on track with this announced schedule. And in terms of additional -- in terms of additional developments, we are currently in discussions with customers, but nothing concrete to report yet.

關於 IT OLED 的量產時間表，我們已經做出了——我們已經發布了公告，我們正在按照這個宣布的時間表進行。就其他方面而言 - 就其他發展而言，我們目前正在與客戶進行討論，但還沒有具體的報告。

(foreign language)

（外語）

If there are no further questions, we will now close Q3 2022 earnings conference call. Thank you once again for joining us today. Please do contact us at the IR team for any additional questions. Thank you.

如果沒有其他問題，我們現在將結束 2022 年第三季度財報電話會議。再次感謝您今天加入我們。如有任何其他問題，請聯繫我們的 IR 團隊。謝謝你。