LG Display Co Ltd (LPL) 2021 Q4 法說會逐字稿

[Interpreted]

[解釋]

Good morning and good evening. First of all, thank you all for joining this conference call and now we'll begin the conference of the Fiscal Year 2021 Fourth Quarter Earnings Results by LG Display. (Operator Instructions) Now we shall commence the presentation on the fiscal year 2021 fourth quarter earnings results by LG Display.

早上好，晚上好。首先，感謝大家參加這次電話會議，現在我們將開始 LG Display 2021 財年第四季度收益結果會議。 （操作員說明）現在我們將開始介紹 LG Display 2021 財年第四季度的收益結果。

[Interpreted]

[解釋]

Good morning this is Brian Hall in charge of LG Display IR. On behalf of the company, let me thank all the participants at this conference call. Today, I'm joined by the CFO, Sang-Don 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, Jae Yong Kwon, Vice President of Medium Small Display Marketing; and , Vice President of Auto Marketing.

早上好，我是負責 LG Display IR 的 Brian Hall。我代表公司感謝本次電話會議的所有參與者。今天，首席財務官 Sang-Don Kim 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，Jae Yong Kwon，中小屏營銷副總裁；和，汽車營銷副總裁。

The conference call will be conducted in both Korean and English. Please refer to the provisional earnings release today or the IR Events section in the company's website for more details on the financial results of Q4 2021.

電話會議將以韓語和英語進行。有關 2021 年第四季度財務業績的更多詳細信息，請參閱今天的臨時收益發布或公司網站的 IR 事件部分。

Before presenting the company's earnings, there will be a presentation on OLED.EX a new technology for large OLED. It can be viewed via mobile devices or a video webcast through an IT device as well as on the IR website.

在介紹公司財報之前，將介紹 OLED.EX 一種大型 OLED 新技術。它可以通過移動設備或通過 IT 設備以及 IR 網站上的視頻網絡廣播進行查看。

The OLED X presentation will last for about 5 minutes, followed by a briefing on the financial results of Q4 2021 and the company's outlook for Q1 2022 and Q&A.

OLED X 演示將持續約 5 分鐘，隨後將簡要介紹 2021 年第四季度的財務業績以及公司對 2022 年第一季度的展望和問答。

The technology presentation will be led by Min Yeong Chin in charge of life display promotion. The company's large OLED has been evolving and developing ever since its launch, culminating in the OLED X technology.

技術展示將由負責生活展示推廣的Min Yeong Chin主持。該公司的大型 OLED 自推出以來一直在發展和發展，最終形成了 OLED X 技術。

This presentation is in English with Korean subtitles at the bottom of the screen.

此演示文稿為英語，屏幕底部有韓語字幕。

I want to appreciate all of you for joining us today. I'm Min Yeong Chin. I'm Head of Life Display promotion division. I'm proud to introduce to, almost in OLED evolution, OLED.EX or like evolutionary experience. The EX in OLED.EX embodies our goal, providing customers with an evolved experience through concerning evolving technology. Are we introduced to EX technology, the core of OLED.EX, which enables evolved experience, EX technology improves product efficiency and fineness by increasing the stability of organic light M&A devices, which are the most important elements in creating great picture quality of OLED, and the 2 key steps enable this technology are: deuterium and personalized algorithms.

我要感謝大家今天加入我們。我是閔玧其。我是生活展示推廣部門的負責人。我很自豪地介紹，幾乎在 OLED 進化中，OLED.EX 或類似的進化經驗。 OLED.EX 中的 EX 體現了我們的目標，通過不斷發展的技術為客戶提供不斷發展的體驗。 OLED.EX的核心EX技術能帶來進化體驗，EX技術通過增加有機光併購設備的穩定性來提高產品效率和精細度，這是創造OLED出色畫質的最重要元素，啟用該技術的兩個關鍵步驟是：氘和個性化算法。

Deuterium is an element also known as heavy hydrogen. And as the name implies, it literally means hydrogen that is heavier. Deuterium has a similar structure to hydrogen, but it has an extra neutron. It is not artificially synthesized. It is a real natural element. However, there is only one atom of deuterium for every 6,000 atoms of hydrogen.

氘是一種元素，也稱為重氫。顧名思義，它的字面意思是更重的氫。氘的結構與氫相似，但它有一個額外的中子。它不是人工合成的。它是一種真正的自然元素。然而，每 6,000 個氫原子中只有一個氘原子。

We developed the technology to extract deuterium from water to replace hydrogen in existing OLED materials. Our OLED materials maintained their original shape, become more stable through our deuterium substation process, meaning that they are stronger against electrical stimulation and heat, which means they remain more reliable for longer even at high brightness.

我們開發了從水中提取氘以替代現有 OLED 材料中的氫的技術。我們的 OLED 材料保持其原始形狀，通過我們的氘變電站工藝變得更加穩定，這意味著它們對電刺激和熱的抵抗力更強，這意味著它們即使在高亮度下也能保持更長時間的可靠性。

In the end, we developed a highly stable devices that handle brighter light. Using deuterium OLED.EX can be realized on higher level of natural brightness and detail similar to what we've seen in real life. The second key to ES technology is personalized algorithms. We use personalized algorithms to control OLED's brightness and enhance performance by predicting usage for each device according to buying patterns of its user. I often display places I want to travel to after the pandemic on my OLED TV. This is one of them. It is an aerial view of Grand Prismatic Spring which is a huge hot spring in Yellowstone National Park in the U.S. It looks almost like the sun blazing. Doesn't it? Some days, I live this scene up for a long time, and the blue subpixels on my OLED TV are, of course, used a lot for the blue part. The green parts use mostly green subpixels. And as you can guess, the red parts use mostly red subpixels.

最後，我們開發了一種高度穩定的設備，可以處理更亮的光線。使用氘 OLED.EX 可以實現更高水平的自然亮度和細節，類似於我們在現實生活中看到的。 ES 技術的第二個關鍵是個性化算法。我們使用個性化算法來控制 OLED 的亮度並通過根據用戶的購買模式預測每個設備的使用情況來提高性能。我經常在我的 OLED 電視上顯示我想在大流行之後去的地方。這是其中之一。這是美國黃石國家公園內巨大的溫泉大棱鏡泉的鳥瞰圖。不是嗎？有幾天，我長時間使用這個場景，當然，我的 OLED 電視上的藍色子像素被大量用於藍色部分。綠色部分主要使用綠色子像素。你可以猜到，紅色部分主要使用紅色子像素。

This is where our personalized algorithm technology comes into play intelligently predicting usage and optimizing each WRG and B element to maintain stable use. These personalized algorithms combined with deuterium, we just talked about, give our OLED panels their strength. With EX technology, our OLED has evolved to become stronger than ever with 30% increase in brightness and natural colors, we produced with greater detail.

這就是我們的個性化算法技術發揮作用的地方，智能預測使用情況並優化每個 WRG 和 B 元素以保持穩定使用。這些個性化算法與我們剛才談到的氘相結合，賦予了我們的 OLED 面板力量。借助 EX 技術，我們的 OLED 變得比以往任何時候都更強大，亮度和自然色彩增加了 30%，我們生產的細節更加豐富。

OLED EX release details actually the way content creators intended. Design is also no exception when it comes to the evolution of OLED.EX. OLED.EX introduces a new bezel that's about 30% thinner than before, making this the most aesthetically pleasing design of any existing OLED. We took innovative evolution a step further to satisfy the most demanding consumers without making any compromises to OLED image quality or slim design.

OLED EX 的發布細節實際上是內容創作者所期望的。在 OLED.EX 的演變過程中，設計也不例外。 OLED.EX 引入了比以前薄約 30% 的新邊框，使其成為現有 OLED 中最美觀的設計。我們在不影響 OLED 圖像質量或纖薄設計的情況下，進一步創新發展，以滿足最苛刻的消費者的需求。

We can sum up OLED.EX philosophy of evolution with the world's great detail, meaning detailed innovation to bring our customers' proper picture quality. The reason why we bet on and focus the tenures of technical expertise on developing the detail is simple because every detailed innovation results in the details in the content our customers experience, this is not only important highly filmmakers and other professionals. This is also very important for everyone who wants to capture, get most in and fill every last detail. OLED.EX panels with EX technology will be used in all of our OLED TV panels from the second quarter of 2022. And we will continue to showcase new innovative products with pursuing natural reality, the philosophy that guides us.

我們可以將OLED.EX的進化哲學與世界的偉大細節相結合，意味著細節創新，為我們的客戶帶來合適的畫質。我們押注並專注於開發細節的技術專長的原因很簡單，因為每一個細節創新都會在我們的客戶體驗的內容中產生細節，這不僅對電影製作人和其他專業人士很重要。這對於每個想要捕捉、充分了解和填充每一個細節的人來說也非常重要。從 2022 年第二季度開始，我們所有的 OLED 電視面板都將使用採用 EX 技術的 OLED.EX 面板。我們將繼續展示追求自然現實的新創新產品，這是指導我們的理念。

With OLED.EX, we will bring our customers evolved experience with OLED and show evolved leadership in the global OLED market. Thank you.

借助 OLED.EX，我們將為客戶帶來不斷發展的 OLED 體驗，並在全球 OLED 市場展示不斷發展的領導地位。謝謝你。

[Interpreted]

[解釋]

Thank you for your attention. Before we begin the presentation, please take a moment to read the disclaimer.

感謝您的關注。在我們開始演示之前，請花點時間閱讀免責聲明。

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. There has been a revision to the K-IFRS #1016 on property, plant and equipment. In applying the revision, the company modified how we account for prototypes that are sold during a planned test operation. It used to be that the net selling price of the goods produced during test operation would be deducted as PPE as the acquisition cost. But with the amendment, the cost has to be recognized as profit or loss. Early application of the amendment has caused some changes from our earnings in 2020.

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。 K-IFRS #1016 對不動產、廠房和設備進行了修訂。在應用修訂版時，該公司修改了我們對計劃測試操作期間出售的原型的計算方式。以前是試運行期間生產的商品的淨售價作為購置成本作為PPE扣除。但隨著修訂，成本必須確認為損益。修訂的提前應用導致我們在 2020 年的收益發生了一些變化。

With that said, we will now start with the presentation on Q4 2021 earnings results. Let me start off with our business performance in Q4. Revenue in Q4 was KRW 8.881 trillion. It was driven by the higher share of large and medium and small OLED, an increase in IT panel shipment following the business structure upgrade. It was the highest ever for a quarter, up 22% Q-o-Q and up 18% Y-o-Y.

話雖如此，我們現在將開始介紹 2021 年第四季度的收益結果。讓我從第四季度的業務表現開始。第四季度的收入為 8.881 萬億韓元。受大、中、小OLED佔比提升、業務結構升級帶動IT面板出貨量增長帶動。這是一個季度以來的最高水平，環比增長 22%，同比增長 18%。

Operating profit was KRW 476 billion. It was down 10% Q-o-Q due to continued decline in LCD TV panel price and year-end one-off costs. In terms of actual performance, excluding the one-off factors, it was in line with market expectation.

營業利潤為4760億韓元。由於液晶電視面板價格和年終一次性成本持續下降，環比下降 10%。從實際表現來看，剔除一次性因素，符合市場預期。

Operating profit margin in Q4 was 5%, with EBITDA margin at 19%. Net profit was KRW 180 billion.

第四季度的營業利潤率為 5%，EBITDA 利潤率為 19%。淨利潤為1800億韓元。

Let me now go over our business performance for the year. Revenue in 2021 was KRW 29.878 trillion and operating profit was KRW 2.231 trillion. Revenue was the highest ever, while profitability was also considerably improved, thanks to the turnaround in OLED and upgrade in our business structure. Revenue was up 23% Y-o-Y. We turned around to profit with operating profit margin of 7%.

現在讓我回顧一下我們今年的業務表現。 2021年的收入為29.878億韓元，營業利潤為2.231億韓元。營收創歷史新高，盈利能力也大幅提升，這得益於OLED的轉機和業務結構的升級。收入同比增長 23%。我們以 7% 的營業利潤率扭虧為盈。

Next is Area shipment and Area ASP. Area shipment in Q4 was 9.36 million square meters, increasing 12% from the previous quarter. IT panel shipment remained solid and large OLED panel shipments grew on the back of strong demand for high-end TV. Area panel price was $806, up 8% Q-o-Q, thanks to shipment growth in large and medium small OLED. The company's production capacity in Q4 decreased 3% Q-o-Q, owing to line adjustment to prepare for new models and additional allocation to R&D.

接下來是區域出貨量和區域 ASP。第四季度出貨面積936萬平方米，環比增長12%。 IT 面板出貨量保持穩健，大型 OLED 面板出貨量因高端電視需求強勁而增長。面積面板價格為 806 美元，環比上漲 8%，這得益於大中小型 OLED 的出貨量增長。公司第四季度的產能環比下降 3%，原因是為準備新車型進行生產線調整以及對研發的額外分配。

Next is Q4 revenue breakdown by product segment. IT panel, our standout among competition, maintained the biggest portion at 42%. TV panels came in next with 27%, down 5 percentage points Q-o-Q despite higher shipment of large OLED due to declining LCD TV panel price. Mobile and others accounted for 31%, up 8 percentage points Q-o-Q, thanks to growth in shipment of POLED smart phones and wearables.

接下來是按產品細分的第四季度收入細分。我們在競爭中的佼佼者 IT 面板保持了 42% 的最大份額。電視面板以 27% 緊隨其後，環比下降 5 個百分點，儘管由於液晶電視面板價格下降導致大型 OLED 出貨量增加。手機等佔比31%，環比上升8個百分點，得益於POLED智能手機和可穿戴設備出貨量的增長。

Next is the company's financial position and ratios. The company's cash and cash equivalents at the end of Q4 was KRW 4.3 trillion. Inventory was KRW 3.35 trillion decreasing by KRW 230 billion Q-o-Q. The inventory is kept at a higher level than usual as a safety stock to prepare against supply chain uncertainties such as commodities and logistics issues. Liabilities to equity ratio was 158%, and current ratio was 94%, both almost flat Q-o-Q. Net debt-to-equity ratio came in at 57%, improved by 6 percentage points Q-o-Q. It was down 20 percentage points Y-o-Y, showing meaningful improvement in financial soundness.

其次是公司的財務狀況和比率。公司第四季度末的現金和現金等價物為 4.3 萬億韓元。庫存環比減少 2,300 億韓元，為 3.35 萬億韓元。作為安全庫存，庫存保持在比平時更高的水平，以應對商品和物流問題等供應鏈的不確定性。負債權益比率為 158%，流動比率為 94%，環比基本持平。淨負債權益比率為 57%，環比提升 6 個百分點。同比下降 20 個百分點，表明財務穩健性顯著改善。

Next is cash flow. The company's cash and cash equivalents at the start of Q4 was KRW 4.209 trillion. It increased by KRW 75 billion and stood at KRW 4.285 trillion at the end of Q4.

其次是現金流。該公司在第四季度初的現金和現金等價物為 4.209 萬億韓元。第四季度末增加了 750 億韓元，達到 4.285 萬億韓元。

Next is presentation by the company's new CFO, Sang-Don Kim, on business performance and strategy.

接下來是公司新任首席財務官 Sang-Don Kim 關於業務績效和戰略的介紹。

[Interpreted]

[解釋]

Good afternoon, and good evening to shareholders, investors and analysts from home and abroad. This is LG Display's CFO, Sang-Don Kim. I went from being in charge of finance to CFO last year, and I greet you for the first time today through this conference call.

各位海內外股東、投資者和分析師，大家下午好，晚上好。我是 LG Display 的首席財務官 Sang-Don Kim。去年我從財務主管轉為首席財務官，今天我通過這次電話會議第一次和大家打招呼。

As the new CFO, I feel the responsibility of having to deliver on the company's strategic tasks under an increasingly volatile business environment with the persistent pandemic and intensifying competition but I also harbor expectations of new opportunities as we see our strategic push in the past few years to upgrade the business structure and better prepare for the future, bear fruit.

作為新任首席財務官，我感到有責任在日益動蕩的商業環境下，以及持續的流行病和激烈的競爭中完成公司的戰略任務，但我也對新的機遇充滿期待，因為我們看到了過去幾年的戰略推進升級業務結構，更好地為未來做準備，結出碩果。

So with a sense of heavy responsibility being the CFO at such a critical juncture, I will play an active role in improving corporate performance while balancing opportunities and risks.

因此，在如此關鍵的時刻，我將懷著作為首席財務官的責任感，在平衡機遇和風險的同時，為提高企業績效發揮積極作用。

With that, now let me move on to the guidance for Q1 2022 as well as the company's business strategy. First is Q1 guidance. In Q1, Area shipment will decline by mid- to high single-digit Q-o-Q. But the pace of seasonal decline will not be as much as in other years. Although shipment of panels of all sizes is expected to fall due to seasonality.

有了這個，現在讓我繼續討論 2022 年第一季度的指導以及公司的業務戰略。首先是第一季度的指導。第一季度，區域出貨量將出現中高個位數環比下降。但季節性下降的速度不會像其他年份那麼大。儘管由於季節性原因，預計各種尺寸的面板出貨量都會下降。

IT panel continues to enjoy B2B demand coming from the increasing trend of work from home, online education and general changes in the office environment. But area price is expected to fall by mid- to high-teen digit Q-o-Q due to seasonal decline in shipments of mobile panel.

IT面板繼續享受來自家庭工作、在線教育和辦公環境普遍變化趨勢的B2B需求。但由於移動面板出貨量的季節性下降，預計面積價格將環比下降中至高十位數。

Next is operational strategy for each business. Looking back on the past year, we were able to show meaningful results in our core strategic tasks even as COVID-related volatility and uncertainty continued. More importantly, OLED is now at a stage where it can produce substantive results. Although the TV set market saw negative growth of over 10% last year, sales of OLED TV sets grew over 60%, driving the expansion in the overall high-end TV market. The high-end TV market grew at a 30% level Y-o-Y with OLED TV's share in this market, surpassing 30% as of Q4 last year.

接下來是每個業務的運營策略。回顧過去一年，即使與 COVID 相關的波動和不確定性持續存在，我們仍能在核心戰略任務中取得有意義的成果。更重要的是，OLED現在正處於可以產生實質性成果的階段。儘管去年電視機市場負增長超過10%，但OLED電視機銷量增長超過60%，帶動了整體高端電視市場的擴張。高端電視市場同比增長 30%，OLED 電視在該市場的份額，截至去年第四季度已超過 30%。

Panel shipment recorded a remarkable growth of more than 70% Y-o-Y. And the business turned around to profit in the second half of last year reaching the BEP level for the year. Continuing from last year, shipment growth for this year is planned at 20% for the year. We also plan to keep improving profitability based on the stronger business performance. In the case of small and medium OLEDs, we became capable of ensuring consistency in development, mass production and quality. It is now in a stable growth path based on stronger relations with strategic partners.

面板出貨量同比增長超過 70%。並於去年下半年扭虧為盈，達到當年的BEP水平。與去年相比，今年的出貨量增長計劃為 20%。我們還計劃基於更強勁的業務表現不斷提高盈利能力。在中小型 OLED 方面，我們能夠確保開發、量產和質量的一致性。基於與戰略合作夥伴建立更牢固的關係，它現在處於穩定增長的道路上。

In mobile business, we aim to further improve profitability by expanding new models in the second half. We will leverage our unique competitiveness to broaden outside the mobile preempt, medium-sized OLED premium market and expand to the mobility industry, including automobiles. The LCD sector also achieved outstanding results by proactively responding to market changes. In LCD, we are maintaining the select and focused approach centered on high-end IT, in line with our strategic positioning. This year is expected to see demand adjustment after COVID-19.

在移動業務方面，我們的目標是在下半年通過擴展新機型來進一步提高盈利能力。我們將利用我們獨特的競爭力，在移動搶占、中型 OLED 高端市場之外拓寬，並擴展到包括汽車在內的移動行業。液晶板塊積極應對市場變化，也取得了不俗的成績。在 LCD 方面，我們保持以高端 IT 為中心的精选和專注方法，符合我們的戰略定位。預計今年 COVID-19 之後需求將出現調整。

The company continues to secure stability in business operation by minimizing volatility. We are gradually reducing the portion of supply-demand businesses that are highly susceptible to market conditions while increasing the businesses that can produce consistent results in strategic collaboration with customers.

公司繼續通過最大限度地減少波動來確保業務運營的穩定性。我們正在逐步減少對市場條件高度敏感的供需業務部分，同時增加與客戶戰略合作能夠產生一致結果的業務。

Going further, anchored on OLED, we will continue to expand our business to deliver new experience and values to customers going beyond existing product areas.

更進一步，以OLED為基礎，我們將繼續擴展我們的業務，為客戶提供超越現有產品領域的新體驗和價值。

Last is our investment and financial management activities. CapEx last year was KRW 3.2 trillion. It is expected to increase this year as we go ahead with the investment in small and medium OLED that was decided last year. The company will keep to the principle of keeping CapEx within EBITDA while trying to improve our financial soundness. The company announced today a predictable and sustainable midterm dividend policy with a view to improve shareholder value.

最後是我們的投資和財務管理活動。去年的資本支出為 3.2 萬億韓元。隨著我們繼續去年決定的中小型OLED投資，預計今年會增加。公司將堅持將資本支出保持在 EBITDA 範圍內的原則，同時努力改善我們的財務穩健性。公司今天宣布了一項可預測且可持續的中期股息政策，以提高股東價值。

We will maintain a dividend payout ratio of 20% of the consolidated net profit from the business years of 2021 to 2023. Accordingly, the BOD today decided on KRW 651 per share in cash dividend for the 2021 business year. The company will keep looking for ways to improve shareholder value from a long-term perspective. Even as the pandemic lingers, we will bolster our responsiveness to the external environment to minimize risk and ensure stability in business operations. We will spare no effort to continuously heighten market confidence and create higher values. Thank you.

從2021年到2023年，我們將維持合併淨利潤的20%的股息支付率。因此，董事會今天決定2021年的現金股息為每股651韓元。公司將繼續從長遠角度尋找提高股東價值的方法。即使在大流行期間，我們將加強對外部環境的反應，以最大程度地降低風險並確保業務運營的穩定性。我們將不遺餘力，不斷提振市場信心，創造更高價值。謝謝你。

[Interpreted]

[解釋]

That brings us to the end of earnings presentation for Q4 2021. We will now take questions. Operator, please commence with the Q&A session.

這使我們結束了 2021 年第四季度的收益報告。我們現在將回答問題。接線員，請開始問答環節。

[Interpreted]

[解釋]

(Operator Instructions) The first question will be provided by Han Soo Kim from Hanwha Financial Investments.

（操作員說明）第一個問題將由 Hanwha Financial Investments 的 Han Soo Kim 提供。

[Interpreted]

[解釋]

Now I have 2 questions. One on large OLED and another on LCD. Now first about the large OLED. So what was the performance in 2021 and the outlook for 2022? So are there any differences between the guidance last time about the 2021 performance and the expected shipments in 2022? And also, what was the profitability for this business division? So for 2021 and also the outlook for 2022?

現在我有2個問題。一個在大型 OLED 上，另一個在 LCD 上。現在首先介紹大型 OLED。那麼2021年的表現和2022年的前景如何？那麼上次關於 2021 年業績的指導與 2022 年的預期出貨量有什麼區別嗎？另外，這個業務部門的盈利能力如何？那麼對於 2021 年以及 2022 年的展望呢？

And the second question is on LCD. So the LCD panel price has been falling for the seventh month now. But then we are also now seeing some signs of the price decline stopping for a 30-inch and 40-inch LCD panels. Then what is the panel price outlook for LCD this year? And also for IT, we see that the IT LCD panel price also started to decline last month. So what is -- similar question. So what is the price outlook for IT panel this year?

第二個問題是關於 LCD 的。因此，液晶面板價格已經連續第七個月下跌。但是，我們現在也看到了一些 30 英寸和 40 英寸 LCD 面板價格停止下跌的跡象。那麼今年LCD面板價格前景如何？而對於 IT，我們看到 IT 液晶面板的價格也在上個月開始下降。那麼什麼是 - 類似的問題。那麼今年IT面板的價格前景如何？

[Interpreted]

[解釋]

Now regarding the first question about the large OLED, this is Daniel Lee in charge of Large Display Marketing responding to that.

現在關於大型 OLED 的第一個問題，這是負責大型顯示器營銷的 Daniel Lee 對此作出回應。

[Interpreted]

[解釋]

Now first of all, as the CFO had highlighted earlier, the overall TV set market showed negative growth of over 10% last year. But among them, the OLED TV, in other words, the high-end TV continued to grow and OLED TV solidify its position in the high-end TV market. So in the fourth quarter of last year, the OLED TV took up over 30% in the high-end TV market. To give you more highlights what we see as the -- some meaningful performances. So in the developed markets like the North America market, for the year, it took up over 30% market share. And in Europe, it was over 40% for the year.

首先，正如 CFO 早些時候強調的那樣，去年整個電視機市場出現了超過 10% 的負增長。但其中，OLED電視，也就是高端電視持續增長，OLED電視鞏固了其在高端電視市場的地位。所以去年第四季度，OLED電視在高端電視市場的佔比超過30%。為了給你更多的亮點，我們認為——一些有意義的表演。因此，在北美市場等發達市場，這一年，它佔據了超過 30% 的市場份額。而在歐洲，這一年的比例超過了 40%。

Now not only the sales of the TV set, but accordingly, the company's panel shipments also grew by over 70% Y-o-Y. So in the second half, it turned around to profit. And for the year, it reached BEP.

現在不僅是電視機的銷量，相應的，公司的面板出貨量也同比增長了70%以上。所以下半年轉虧為盈。這一年，它達到了 BEP。

Now in terms of the specific shipment, we did fall a little bit short of the target in terms of the shipment. But then in terms of the area, we did come in line with the target as we had focused more on the large OLED. And for this year, as the CFO had reported earlier, we -- our guidance is over 20% of increase in panel shipment.

現在就具體出貨量而言，我們確實在出貨量方面有點低於目標。但在面積方面，我們確實達到了目標，因為我們更專注於大尺寸 OLED。今年，正如首席財務官早些時候報導的那樣，我們的指導是面板出貨量增長超過 20%。

And the more recent numbers show, although they are for the weekly sales. But so in the month of January, we see that the actual sales remained similar to the fourth quarter level. And based on our stronger business structure, we will continue to improve our profitability.

最近的數字顯示，儘管它們是針對每週銷售的。但是在 1 月份，我們看到實際銷售額與第四季度的水平相似。並基於我們更強大的業務結構，我們將繼續提高我們的盈利能力。

[Interpreted]

[解釋]

The following question will be presented by Won Suk Chung from HI Investment Securities.

以下問題將由 HI Investment Securities 的 Won Suk Chung 提出。

[Interpreted]

[解釋]

We apologize for the inconvenience. We had not finished the response to the first question by Mr. Kim Yeon Soo, so allow us to complete the response, and then we will take the next question.

我們對不便表示抱歉。金妍洙先生的第一個問題我們還沒有回答完，請允許我們完成回答，然後我們再回答下一個問題。

[Interpreted]

[解釋]

Now this is [Kee Yong Hee] in charge of Business Intelligence, responding to your question about the outlook for IT panel price. Now for the IT panel compared to the TV, the decline in price was lagging behind by about 1/4. So we believe that in terms of the stabilization of the prices, it will also come later than the TV price.

現在我是負責商業智能的[Kee Yong Hee]，回答您關於IT面板價格前景的問題。現在IT面板與電視相比，價格下降幅度大約落後1/4。所以我們認為，在價格的穩定方面，它也會比電視價格來得晚。

But then we believe that most of the IT panel price decline will be centered on the low-end products like TN or VA. And for the high-end products where the company is strong, we believe that the price will remain stable. That is all.

但隨後我們認為，大部分 IT 面板價格下降將集中在 TN 或 VA 等低端產品上。而對於公司實力雄厚的高端產品，我們相信價格會保持穩定。就這些。

[Interpreted]

[解釋]

Now this is Jae Yong Kwon from the medium, small display marketing. And just now regarding the IT market outlook, there was explanation by Kim Yeon Hee from Business Intelligence, but I would like to just add some additional explanation.

現在這是中小型展示營銷的Jae Yong Kwon。剛才關於 IT 市場前景，Business Intelligence 的 Kim Yeon Hee 有解釋，但我想補充一些額外的解釋。

Regarding the demand outlook for IT. Now as the -- so since the onset of the pandemic, there was a trend of working from home as well as online education, which drove the demand for IT products. But now as COVID-19 continues to be prolonged, we are also seeing the easing of restrictions in different parts of the world. And now there are increasing outdoor activities by the citizens. So this means that the B2C demand is likely to go down. But then for the B2B, because of the back-to-office trend as well as the recovery in the economy throughout the world, we believe that the B2B demand in 2022 will remain strong.

關於 IT 的需求前景。現在——所以自從大流行開始以來，有一種在家工作和在線教育的趨勢，這推動了對 IT 產品的需求。但現在隨著 COVID-19 的持續時間延長，我們也看到世界不同地區的限制措施有所放鬆。現在市民的戶外活動越來越多。所以這意味著B2C需求可能會下降。但對於 B2B 而言，由於復工趨勢以及全球經濟的複蘇，我們認為 2022 年的 B2B 需求將保持強勁。

Now for the demand itself then between 2022 and 2021, the outlook is that they are going to be pretty much similar. So a flat demand between 2021 and 2022. But then when it comes to supply, because of the soft TV market last year, starting in the second half of last year, much of the supply on the TV side has been shifted to IT, which had prompted the decline in IT prices starting in the last part of last year.

現在對於 2022 年至 2021 年之間的需求本身，前景是它們將非常相似。所以 2021 年到 2022 年需求持平。但是在供應方面，由於去年軟電視市場，從去年下半年開始，電視方面的大部分供應已經轉移到 IT，這促使 IT 價格從去年下半年開始下降。

So for the short term, we believe that the IT price decline, which started in the latter part of last year will continue for the time being. But then in terms of the pace of the decline, now that is mostly concentrated in the mainstream products, whereas the company is strong in the high-end products. So we do believe that our business will remain stable compared to the overall market.

所以從短期來看，我們認為從去年下半年開始的IT價格下跌將暫時持續。但是從下降的速度來看，現在主要集中在主流產品上，而公司在高端產品上表現強勁。因此，我們確實相信，與整體市場相比，我們的業務將保持穩定。

[Interpreted]

[解釋]

We will take the next question.

我們將回答下一個問題。

[Interpreted]

[解釋]

The following question will be presented by Won Suk Chung from HI Investment Securities.

以下問題將由 HI Investment Securities 的 Won Suk Chung 提出。

[Interpreted]

[解釋]

Now I also have 2 questions. First is what has actually been reported through media coverage extensively recently. And that is about the cooperation between Samsung Electronics and LG Display. Samsung Electronics deciding to adopt LG display's white OLED. Now so if you could give us an update on this front. And if new products are to be launched in the first half of the year, then this probably means that you are in the last stage. So can you give us comments regarding this?

現在我也有2個問題。首先是最近通過媒體廣泛報導的實際報導。這就是三星電子和LG Display的合作。三星電子決定採用 LG 顯示器的白色 OLED。現在，如果您能給我們提供這方面的最新信息。而如果要在上半年推出新品，那麼這很可能意味著你已經到了最後一個階段。那麼您能就此發表評論嗎？

And the second question is Samsung Display also recently got ready for the -- or started the mass production of QD OLED. Now then compared to the QD OLED, what does the company believe are the advantages of white OLED?

第二個問題是三星顯示器最近也準備好——或開始量產 QD OLED。那麼與 QD OLED 相比，該公司認為白色 OLED 的優勢是什麼？

[Interpreted]

[解釋]

This is the CFO responding to the first part of the question. Given that this involves not only the company but a specific customer, please understand that we are not in the position to give a comment on it or share our plan or update. And I already explained earlier that the high-end TV -- so in the high-end TV, the OLED achieved outstanding performance and the company's plan is to continue with this growth trend based on the existing customer base. But if new customers are to be gained, then in terms of the OLED we do believe that it will have a positive impact on increasing sales of OLED in the premium market.

這是首席財務官對問題第一部分的回應。鑑於這不僅涉及公司，還涉及特定客戶，請理解我們無法對此發表評論或分享我們的計劃或更新。而且我之前已經解釋過高端電視——所以在高端電視中，OLED表現出色，公司計劃在現有客戶群的基礎上繼續這種增長趨勢。但如果要獲得新客戶，那麼在 OLED 方面，我們確實相信它將對 OLED 在高端市場的銷量增長產生積極影響。

[Interpreted]

[解釋]

And this is Daniel Lee in charge of Large Display Marketing responding to the second part of the question. So the second question was about the advantages of the company's OLED over QD OLED. And as had been explained earlier, now the launch of the OLED products by other players is a welcome development for our part because it would help mainstream the premium OLED products and will also have a positive impact on driving sales. And it is true that there had been some media exposure at the CES, but then the actual product has not been launched in the market yet. So any comparison would have to wait until it's been launched.

這是負責大型顯示器營銷的 Daniel Lee 回答問題的第二部分。所以第二個問題是關於該公司的 OLED 相對於 QD OLED 的優勢。如前所述，現在其他廠商推出 OLED 產品對我們來說是一個可喜的發展，因為這將有助於高端 OLED 產品的主流化，也將對推動銷售產生積極影響。在CES上確實有一些媒體曝光，但實際產品還沒有在市場上推出。所以任何比較都必須等到它推出。

But I would just like to add that when it comes to the product competitiveness, it does not depend on 1 or 2 specific specifications. So I believe that what is important is the overall quality as well as the overall competitiveness. And I do believe that the market will be able to make that decision after the launch.

但我想補充一點，產品競爭力不是靠1、2個具體規格。所以我認為重要的是整體質量和整體競爭力。而且我確實相信市場將能夠在發布後做出該決定。

And now given our history of more than 10 years since the launch as well as business operation and also based on our product competitiveness or in cost competitiveness, as well as the economy of scale and the customer base as well as the readiness of our differentiated product lineup, we do believe that we are enjoying an overall competitiveness and we intend to maintain this competitive edge.

現在考慮到我們成立以來的10多年曆史以及業務運營，也基於我們的產品競爭力或成本競爭力，以及規模經濟和客戶群以及我們差異化產品的準備情況陣容，我們確實相信我們正在享受整體競爭力，我們打算保持這種競爭優勢。

[Interpreted]

[解釋]

We will take the next question.

我們將回答下一個問題。

[Interpreted]

[解釋]

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

以下問題將由三星證券的 Jung Hoon Chang 提出。

[Interpreted]

[解釋]

Now I also had 2 questions, but then I also have 1 request for clarification about the presentation earlier. So it was explained that for the fourth quarter financial performance, excluding one-off factors or the one-off costs, then the performance was actually in line with market expectation. But then I do not believe I heard about the one-off factors. So maybe I missed it, but if you could clarify what the one-off factors were. And then the next question is, we have been hearing about the auto display for some time, but -- so I would just like to hear more about the outlook. So if you could give us some more highlights about the auto display. And if you believe that there are growth drivers for auto display, then do you believe that they will come from applications or do you display form or from the customers?

現在我也有 2 個問題，但我也有 1 個要求澄清之前的演示文稿。所以解釋說，對於第四季度的財務表現，剔除一次性因素或一次性成本，則表現實際上符合市場預期。但後來我不相信我聽說過一次性因素。所以也許我錯過了，但如果你能澄清一次性因素是什麼。然後下一個問題是，我們聽說自動顯示已經有一段時間了，但是——所以我只想了解更多關於前景的信息。所以，如果你能給我們一些關於自動顯示的更多亮點。如果您認為汽車顯示有增長動力，那麼您認為它們會來自應用程序還是顯示形式或來自客戶？

And the last question is, now since the pandemic, we see many of the panel makers enjoying higher sales as well as profitability. But then we see that, like, Taiwanese panel maker is enjoying like over 20% operating profit margin in the third quarter of last year. And of course, the company has also done quite well, but then I'm just wondering about the difference. And also when it comes to the company strengthening its competitiveness, then what you believe its implications will be with regards to the margin as well?

最後一個問題是，現在自大流行以來，我們看到許多面板製造商享受更高的銷售額和盈利能力。但隨後我們看到，台灣面板製造商在去年第三季度享受了超過 20% 的營業利潤率。當然，該公司也做得很好，但我只是想知道其中的區別。而且當談到公司增強競爭力時，你認為它對利潤率的影響是什麼？

[Interpreted]

[解釋]

This is the CFO regarding your question about the one-off costs. Now when it comes to business performance, we have a way of sharing the good performance with investors in the form of dividend. Likewise, we also have a way of sharing our performance with those who made it possible. In other words, the executives and the employees of the company.

我是首席財務官，關於您關於一次性費用的問題。現在談到經營業績，我們有辦法以分紅的形式與投資者分享良好的業績。同樣，我們也有辦法與那些使之成為可能的人分享我們的表現。換句話說，公司的高管和員工。

And the reason why I cannot give you the specific numbers today, is because we have not gone through the communication with the members of the company about how we are going to share the business performance. So please understand that it's a bit too early for us to give you further details. But once we do go through the process, then we will create opportunities where we will be able to communicate with you on a one-to-one basis.

而今天之所以不能給大家具體的數字，是因為我們還沒有和公司成員就如何分享業績進行溝通。因此，請理解，我們現在向您提供更多詳細信息還為時過早。但是，一旦我們完成了這個過程，我們就會創造機會，讓我們能夠與您進行一對一的交流。

[Interpreted]

[解釋]

This is (inaudible), Vice President of Auto Marketing, responding to your question about auto display. Now first about the status of our auto business. As is well known, LG Displays enjoys leadership in the auto business in terms of both sales and technology. And especially with the auto display, the size becoming bigger and the resolution requirement also becoming higher and also more sophisticated requirement for design, the orders that we receive continue to grow. And as a result of this, for LG Display, the order backlog for the LTPS LCD and OLED remains at 90% as of the end of 2021.

我是（聽不清）汽車營銷副總裁，回答您關於汽車展示的問題。現在首先談談我們汽車業務的現狀。眾所周知，LG Displays 在銷售和技術方面都處於汽車行業的領先地位。尤其是汽車顯示屏，尺寸越來越大，分辨率要求也越來越高，對設計的要求也越來越高，我們接到的訂單還在不斷增長。因此，對於 LG Display 而言，截至 2021 年底，LTPS LCD 和 OLED 的訂單積壓率仍保持在 90%。

And then about our Auto business strategy. Now LG Display intends to have a customized platform for the different market segments as well as the customers. Now for the Auto conditions, now in terms of the extreme conditions that are required for the auto display, now the LG Display will center its marketing on the tandem OLED. So for the customers that value design, then we will provide our plastic OLED. And for the customers who value the higher picture quality, then we can also provide the ATO, which is the advancement in OLED. So based on these 2 technologies, we will be able to continue to broaden our market as well as the customer base, utilizing our OLED platform.

然後是關於我們的汽車業務戰略。現在 LG Display 打算為不同的細分市場和客戶提供定制平台。現在對於汽車條件，現在就汽車顯示器所需的極端條件而言，現在 LG Display 將其營銷重點放在串聯 OLED 上。因此，對於重視設計的客戶，我們將提供我們的塑料 OLED。而對於更看重畫質的客戶，我們也可以提供ATO，這是OLED的進步。因此，基於這兩種技術，我們將能夠利用我們的 OLED 平台繼續擴大我們的市場和客戶群。

And last, for those wish to differentiate by cost, then we can also market our in-cell touch LTPS LCD. That is all.

最後，對於那些希望通過成本進行差異化的客戶，我們還可以銷售我們的內嵌式觸摸 LTPS LCD。就這些。

[Interpreted]

[解釋]

And this is [Kee Yong Hee] from BI responding to your question about the difference in profitability with other players. Now the profitability difference in the LCD business comes from the differences in the customer structure as well as the product lineup. Now when we look at the history of display business, then we see that when there is a higher share of commodity or general LCD products, then when the market is doing well, then the profitability also tends to improve considerably. But in vice versa, when the market is not doing well, then there could be big losses.

這是來自 BI 的 [Kee Yong Hee] 回答您關於與其他參與者的盈利能力差異的問題。現在液晶業務的盈利能力差異來自於客戶結構的差異，以及產品陣容的差異。現在回顧顯示業務的歷史，當商品或普通液晶產品的份額較高時，市場表現良好時，盈利能力也有明顯提高的趨勢。但反之亦然，當市場表現不佳時，可能會出現重大損失。

So we see that for the players like the Taiwanese player, that have a larger share of other customers and also larger share of commodity products, they have -- we see that they have benefited more than other players during the pandemic. As was explained earlier, we see that the price is falling centered on commodity products. And for the company, we are focusing more on differentiating for the long term, and we believe that we will be ready to have a more stable business down the road.

所以我們看到，對於像台灣玩家這樣擁有更大份額的其他客戶和更大份額的商品的玩家來說，他們有——我們看到他們在大流行期間比其他玩家受益更多。如前所述，我們看到價格以商品為中心下跌。對於公司而言，我們更關注長期的差異化，我們相信我們將準備好在未來擁有更穩定的業務。

[Interpreted] We will take one last question.

[解釋] 我們將回答最後一個問題。

[Interpreted]

[解釋]

The following question will be presented by Simon Woo from Bank of America Securities.

以下問題將由美國銀行證券的 Simon Woo 提出。

[Interpreted]

[解釋]

Now first of all, thank you for the good performance in the fourth quarter. And my question is pertaining to the growth potential down the road. Because we see that the OLED capacity is almost to the full and the new ramp-up can come only like in a year's time. Then in 2022, does the company believe that there is still room for more top line growth to come for OLED, perhaps maximizing utilization rate and also enhancing productivity could help pull up the growth rate, but then you would also have limitations. So what is the company's outlook for the further growth of OLED?

現在首先感謝你們在第四季度的出色表現。我的問題是關於未來的增長潛力。因為我們看到 OLED 產能幾乎已滿，而新的產能提升也只能在一年內到來。那麼到 2022 年，公司是否認為 OLED 仍有更多的頂線增長空間，也許最大化利用率和提高生產力可以幫助拉動增長率，但你也會有限制。那麼公司對OLED進一步增長的前景如何呢？

[Interpreted]

[解釋]

This is Hee Yeon Kim of Corporate Strategy Group. So the question is pertaining to the growth potential of large OLED. Now regarding this, we see that recently, the market is moving more towards convergence. So under this trend of convergence, we believe that there will be more opportunities for the company. So for example, based on the WRGB technology, we can supply to the TV market, not only that but IT in the gaming side, and then also utilizing our unique transparent feature for OLED we can also get ready to move into the mobile market. And in these markets for these products, the ASP would be higher than the TV. So it is from both the revenue growth and also higher profitability that we are seeking to achieve top line growth.

我是 Corporate Strategy Group 的 Hee Yeon Kim。所以問題在於大尺寸OLED的增長潛力。現在關於這一點，我們看到最近，市場正朝著趨同的方向發展。所以在這種趨同的趨勢下，我們相信公司會有更多的機會。例如，基於WRGB技術，我們可以為電視市場供應，不僅如此，遊戲方面的IT，然後利用我們獨特的OLED透明特性，我們也可以準備進入移動市場。而在這些市場中，這些產品的平均售價會高於電視。因此，我們正在尋求實現收入增長的同時來自收入增長和更高的盈利能力。

So in short, more growth will come after CapEx spend. So for example, there's going to be the CapEx on the mid-sized OLED from where mass production will begin from 2024. So there is going to be a higher sales from here. And also, even without CapEx spend from the gaming and the transparent OLED side, the ASP is going to be higher than other applications. So let me make one correction. So about the transparent display. So it's not getting ready to enter the mobile, but it's the mobility market.

所以簡而言之，在資本支出支出之後會有更多的增長。例如，中型 OLED 的資本支出將從 2024 年開始量產。因此，從這裡開始會有更高的銷售額。此外，即使沒有遊戲和透明 OLED 方面的資本支出，ASP 也將高於其他應用。所以讓我做一個更正。那麼關於透明顯示器。所以它還沒有準備好進入移動市場，但它是移動市場。

[Interpreted]

[解釋]

Thank you very much for the good explanation. And then this question is to the CFO. So you did emphasize the companies intend to keep the CapEx within EBITDA. But then given the fact that the EBITDA has grown considerably from the past. From the investors' perspective, perhaps keeping it in line with depreciation and amortization would be more reasonable, because now the dividend payout is likely to be around KRW 200 billion, KRW 300 billion. So there is the EBITDA, and then there is also the taxes to be paid. And then setting aside the working capital, after all this, then the cash is likely to be quite tight. So what is the company's view on this comment?

非常感謝您的良好解釋。然後這個問題是給首席財務官的。因此，您確實強調了公司打算將資本支出保持在 EBITDA 內。但考慮到 EBITDA 與過去相比大幅增長的事實。從投資者的角度來看，或許讓其與折舊和攤銷保持一致會更合理，因為現在的股息支付可能在2000億韓元、3000億韓元左右。所以有 EBITDA，然後還有要支付的稅款。再拋開營運資金，畢竟這一切，那麼現金很可能是相當緊張的。那麼公司對此評論有何看法？

[Interpreted]

[解釋]

So this is the CFO, and I take that as a suggestion or a recommendation to the company, and we will take that comment into due consideration. Now as you all know very well, part of the nature of this business is that it requires large-scale investment. And I'm sure that you also understand that this is indispensable to make sure that we achieve sustainability and also continued profitability, which are also the aspiration of both the company and the shareholders. And again, you might be aware of this, but then for the company to make sure that we get the right returns on our investment we have, and I also have, 5 rules and 1 additional rule.

所以這是首席財務官，我認為這是對公司的建議或建議，我們將適當考慮該評論。現在眾所周知，這項業務的部分性質是需要大規模投資。我相信你也明白，這對於確保我們實現可持續發展和持續盈利是必不可少的，這也是公司和股東的願望。再說一次，您可能已經意識到這一點，但是對於公司來說，要確保我們從我們擁有的投資中獲得正確的回報，我也有 5 條規則和 1 條附加規則。

First, we look at the -- we look at whether there is alignment between the planned investment and the company's mid- to long-term strategy. And we also look at the market demand and also more importantly, recently, the market supply as well as the -- our selling capability and also our production capacity. In other words, we also look at the fit between our current condition and the planned investment. And we also look at the timeliness of the investment. In other words, between the time of making the investment until the mass production, then will the production be in time for the market.

首先，我們看看 - 我們看看計劃投資與公司的中長期戰略是否一致。我們還關注市場需求，更重要的是，最近，市場供應以及我們的銷售能力和生產能力。換句話說，我們還要看我們目前的狀況和計劃投資之間的契合度。我們還關注投資的及時性。換句話說，從投資到量產之間，生產是否能趕上市場。

And also whether it is the right time for the company to make this kind of investment, whether the company has the fundamentals to withstand this. And of course, also the economics, which are also the more immediate factor. And we also look at the technological feasibility. In other words, whether the company has the right technology and the technological sophistication befitting this investment. So that is from the business performance side and then the 1 additional rule for the finance side. And that is whether we have the financial resources to make this investment at this time. And if we lack such financial resources, then how are we going to finance that from the market.

以及公司是否是進行這種投資的合適時機，公司是否有基本面來承受這種情況。當然，還有經濟，這也是更直接的因素。我們還研究了技術可行性。換句話說，公司是否擁有適合這項投資的正確技術和技術成熟度。這是從業務績效方面，然後是財務方面的 1 個附加規則。這就是我們目前是否有財力進行這項投資。如果我們缺乏這樣的財政資源，那麼我們將如何從市場上融資。

Now for the CapEx plan of the year, as was explained earlier, we will -- we intend to keep it within EBITDA. And we are moving ahead with the investment with the answers to all of those 5 plus 1 rules with the conviction that it is the investment that we need. So I hope for your patience for a bit, and I do hope that we will be able to share in the good performance out of it. And I also hope that the time until then will become shorter. Thank you.

現在對於今年的資本支出計劃，如前所述，我們將 - 我們打算將其保持在 EBITDA 內。我們正在推進投資，回答所有這些 5 加 1 規則，並堅信這是我們需要的投資。所以我希望你能耐心一點，我確實希望我們能夠分享它的良好表現。而且我也希望到那時的時間會越來越短。謝謝你。

[Interpreted]

[解釋]

That brings us to the end of the conference call for the earnings presentation of LG Display Q4 2021. I thank all the participants. And if you have further questions, then please contact the IR team.

至此，LG Display 2021 年第四季度財報電話會議結束。感謝所有與會者。如果您還有其他問題，請聯繫 IR 團隊。

[Portions of this transcript that are marked Interpreted were spoken by an interpreter present on the live call.]

[此成績單中標記為已口譯的部分由現場通話中的口譯員朗讀。]