LG Display Co Ltd (LPL) 2024 Q3 法說會逐字稿

  • 公布時間
    24/10/23
  • 本季實際 EPS
    -
  • EPS 市場預期
    -
  • EPS 年成長
    -

完整原文

使用警語:中文譯文來源為 Google 翻譯,僅供參考,實際內容請以英文原文為主

  • Brian Heo - Investor Relation

    Brian Heo - Investor Relation

  • (spoken in foreign language) Good afternoon. I am Brian Heo, in charge of LG Display's, IR team. On behalf of the company, thank you to all the participants for joining us today in our third quarter, 2024 earnings call. Today, I have with me our CFO, Sunghyun Kim; Seung Min Lim, Senior Vice President of Corporate Planning; [Joo Dong] Kim, Vice President of Finance; Ki-Yong Lee, in-charge of Business Intelligence; [Joo Dong Kim], Vice President of Large Display Planning and Management; [Won Jae Lee], in-charge of Medium Display Planning and Management, [Sanghee Park], in-charge of Small Display Planning and Management; and [Moon Tae-Hyoung], in-charge of Auto Planning and Management.

    (用外語發言)下午好。我是 Brian Heo,負責 LG Display 的 IR 團隊。我謹代表公司感謝所有參與者今天參加我們的 2024 年第三季財報電話會議。今天,和我在一起的還有我們的財務長 Sunghyun Kim; Seung Min Lim,企業規劃資深副總裁; [Joo Dong] Kim,財務副總裁; Ki-Yong Lee,負責商業智慧; [Joo Dong Kim],大型顯示器規劃與管理副總裁; [Won Jae Lee],負責中型顯示器規劃與管理,[Sanghee Park],負責小型顯示器規劃與管理;以及負責汽車規劃和管理的[Moon Tae-Hyoung]。

  • The conference call will be conducted in both Korean and English. For more details, please refer to the provisional earnings disclosed today or the IR events section on the company's website.

    電話會議將以韓語和英語進行。欲了解更多詳情,請參閱今天披露的臨時盈利或公司網站上的IR事件部分。

  • Also before we begin, please take a moment to read the disclaimer.

    另外,在我們開始之前,請花點時間閱讀免責聲明。

  • Also as a reminder, today's results are based on consolidated IFRS standards prepared for your benefit and has yet to receive an audit by an outside auditor.

    另請注意,今天的結果是基於為您的利益而準備的綜合國際財務報告準則標準,尚未接受外部審計師的審計。

  • We now begin with the earnings results for the third quarter of 2024, against the backdrop of uncertainties continuing in the downstream it product market, there was adjustment in shipment for certain product lineup. While we saw a rise in small panel shipment including smartphone panels, which had a positive impact on this quarter's results.

    我們先來看看2024年第三季的業績,在下游IT產品市場持續存在不確定性的背景下,部分產品線的出貨量出現了調整。雖然我們看到包括智慧型手機面板在內的小型面板出貨量有所增加,這對本季的業績產生了積極影響。

  • As such Q3 revenue posted KRW6,821.3 billion, recording 2% QoQ growth and on greater impact from OLED-centric business portfolio transition, there was 43% year over year growth. In terms of P&O, we are seeing results materialize from OLED-centric business structure upgrades, while activities around corporate wide cost savings and operational efficiency gain continue to drive an uptrend in performance.

    第三季營收為 68,213 億韓元,季增 2%,加上以 OLED 為中心的業務組合轉型的影響更大,較去年同期成長 43%。就 P&O 而言,我們看到以 OLED 為中心的業務結構升級取得了成果,而圍繞全公司成本節約和營運效率提升的活動繼續推動業績上升趨勢。

  • In Q3, hence operating loss came in at KRW80.6 billion, including one-off expense of more than KRW100 billion related to ERP program, which took place during the quarter.

    因此,第三季的營業虧損為 806 億韓元,其中包括本季發生的與 ERP 項目相關的超過 1,000 億韓元的一次性費用。

  • But even with this cost impact, we narrowed the loss versus previous year. And it's also worth noting one positive fact that despite greater market uncertainties, there has been significant profitability improvement year over year.

    但即使受到成本影響,我們仍比去年縮小了損失。另外值得注意的一個正面事實是,儘管市場不確定性較大,但獲利能力逐年顯著改善。

  • Next is on area shipment and ASP per square meter. Third quarter area shipment declined 3% quarter over quarter due to lower shipment of midsize IT products, i,e. notebook, PC's and tablet versus the guidance. While on a year over year basis, higher TV panel shipment drove area shipment growth of 32%.

    接下來是出貨面積和每平方公尺的平均售價。第三季面積出貨量較上季下降 3%,原因是中型 IT 產品(即筆記型電腦)出貨量下降。筆記型電腦、PC 和平板電腦與指南的比較。與去年同期相比,電視面板出貨量增加推動面積出貨量成長 32%。

  • (spoken in foreign language) In terms of ASP per square meter, there was an increase of 6% quarter over quarter to $825 on the back of shipment growth in small OLED products including panels for smartphones,

    (以外語發言)就每平方米平均售價而言,由於包括智慧型手機面板在內的小型 OLED 產品出貨量增長,環比增長 6% 至 825 美元,

  • (spoken in foreign language) Next is product revenue mix in Q3 mobile and others accounted for the biggest portion of the revenue mix at 36%. This was driven by growth in small product shipment including smartphone panels which was up 13-percentage-point , Q over Q and 10% points year over year. And we expect there to be a creative Q over Q expansion in the fourth quarter.

    (以外語發言)接下來是第三季行動和其他產品收入組合,佔收入組合的最大部分為 36%。這是由包括智慧型手機面板在內的小型產品出貨量成長推動的,該產品出貨量較上季成長 13%,較去年同期成長 10%。我們預計第四季將出現創造性的季度擴張。

  • (spoken in foreign language) IT Segment revenue was 33% less than the previous quarter. On the back of sluggish downstream demand, which is slowing down industries overall recovery, which in turn is driving higher volatilities across different product lineup. TV Panel revenue stayed relatively flat with no fluctuations accounting 23% of the revenue mix in Q3.

    (用外語發言) IT 部門營收比上一季減少 33%。在下游需求低迷的背景下,產業整體復甦放緩,進而導致不同產品線的波動性增加。電視面板收入保持相對平穩,沒有波動,佔第三季收入組合的 23%。

  • Auto segment revenue is sustaining its annual growth trajectory. But in Q3, it accounted for 8% of the revenue mix down by 1-percentage-points Q over Q, due to the differences arising from quarterly shipment planning.

    汽車部門的收入正在維持其年度成長軌跡。但在第三季度,由於季度出貨計畫的差異,它佔收入組合的8%,季減了1個百分點。

  • OLED share out of the total revenue increased 16-percentage-points year over year, and up 6-percentage-points Q over Q, reaching 58%, as we continue to solidify the benefits of business structure upgrades.

    隨著我們持續鞏固業務結構升級的效益,OLED佔總營收的市佔率年增16個百分點,較上季成長6個百分點,達到58%。

  • (spoken in foreign language) Next is on the financial position and key business metrics. Q3 cash and cash equivalent was KRW1,787.7 billion after accounting for assets of China's Guangzhou Fab, which was reclassified under assets held for sale. So if we were to include back this item, total cash and cash equivalent will amount to KRW2,75.1 billion.

    (用外語發言)接下來是財務狀況和關鍵業務指標。計入中國廣州晶圓廠的資產(重新分類為持有待售資產)後,第三季現金及現金等價物為 17,877 億韓元。因此,如果我們將此項計入,現金和現金等價物總額將達到 27,51 億韓元。

  • (spoken in foreign language) Part of the borrowings was also separately classified under help for sale, which explains the Q over Q change. While asset and liabilities are all inclusive of held for sale, line items. Debt to equity ratio and net debt to equity ratio recorded 297% and 156% respectively, which is somewhat of an increase, Q over Q.

    (用外語發言)部分借款也單獨分類在幫助出售項下,這解釋了 Q 比 Q 變化的原因。資產和負債均包括持有待售的項目。債務股本比率和淨負債股本比率分別為 297% 和 156%,較上季上升。

  • (spoken in foreign language) Next is on Q4 guidance. We continue to see uncertainties in the downstream market for IT products, which may cause shipment volatilities depending on the product segment. But on the shipment expansion for TV and notebook, PC panels, Q over Q we project mid single digit percent growth.

    (用外語發言)接下來是第四季的指導。我們持續看到IT產品下游市場的不確定性,這可能會導致不同產品領域的出貨量波動。但就電視和筆記型電腦、個人電腦面板的出貨量擴張而言,我們預期季度成長率將達到中個位數。

  • (spoken in foreign language) ASP per square meter is also expected to rise by mid single digit percent driven by growth in smartphone panel shipment following the trajectory of the previous quarter.

    (以外語發言)受智慧型手機面板出貨量繼上一季軌跡成長的推動,每平方公尺平均售價預計也將上漲中個位數百分比。

  • Next, I will turn it over to our CFO, Sunghyun Kim; who will walk you through the key highlights.

    接下來,我將把它交給我們的財務長 Sunghyun Kim;誰將引導您了解主要亮點。

  • Sunghyun Kim - Chief Financial Officer

    Sunghyun Kim - Chief Financial Officer

  • (spoken in foreign language) Good afternoon. I'm CFO, Sunghyun Kim. Thank you for joining our earnings call today.

    (用外語發言)下午好。我是財務長金成賢。感謝您參加今天的財報電話會議。

  • (spoken in foreign language) Despite sluggish downstream demand, a high volatility seen in the external environment. The company was able to drive business performance on a sustained basis, underpinned by stronger fundamentals, following the OLED-centric structural upgrades. We are also focusing on our capabilities around gains in operational efficiency and improvement in profit supported by rigorous cost innovation activities.

    (外語發言) 儘管下游需求低迷,外部環境波動較大。在以OLED為核心的結構升級之後,公司基本面更加強勁,業績持續成長。我們也專注於在嚴格的成本創新活動的支持下提高營運效率和提高利潤的能力。

  • (spoken in foreign language) As previously mentioned, Q3 earnings reflects one-off ERP related expense. But excluding this impact, we saw business performance improve both on Q over Q and year over year basis. In a meaningful way.

    (以外語發言) 如前所述,第三季收益反映了一次性 ERP 相關費用。但排除這種影響,我們看到業務績效上季和年比都有所改善。以有意義的方式。

  • (spoken in foreign language) Please note that one-off expense reflected in Q3 results amount to around mid KRW100 billion. And although we cannot disclose the headcount number and details of the ERP program, we expect there will be more than KRW100 billion, of annual labor cost reductions following the implementation of this year's efficiency program.

    (以外語發言) 請注意,第三季業績中反映的一次性費用約為 1,000 億韓元左右。雖然我們無法透露 ERP 計畫的員工人數和細節,但我們預計,今年的效率計畫實施後,每年將減少 1,000 億韓元以上的勞動成本。

  • (spoken in foreign language) In the fourth quarter, we will continue to scale up business structure around OLED to drive improvements in fundamentals and business performance and ensure earnings stability through company wide activities such as operational efficiency, gains against the backdrop of highly uncertain and volatile macro environment.

    (以外語發言)第四季度,我們將繼續擴大圍繞OLED的業務結構,以推動基本面和業績的改善,並透過全公司範圍內的活動(例如營運效率、在高度不確定性和不確定性的背景下的收益)確保獲利穩定性。

  • (spoken in foreign language) Next, moving on to plans and strategies for each of our business domain.

    (用外語發言)接下來,我們將討論每個業務領域的計畫和策略。

  • (spoken in foreign language) For medium OLED business underpinned by stable supply and technology leadership. We will solidify our business competitiveness.

    (外語發言)中型OLED業務以穩定的供應和技術領先為基礎。我們將鞏固我們的業務競爭力。

  • (spoken in foreign language) For IT OLED, we will keep reinforcing our leadership in tandem OLED technology known for superior durability and performance like long life, high luminance and low power and plan to build up an efficient framework that can maximize the use of current production infrastructure in step with the changing market environment.

    (以外語發言)對於IT OLED,我們將繼續鞏固我們在串聯OLED技術方面的領導地位,該技術以卓越的耐用性和性能(如長壽命、高亮度和低功耗)而聞名,併計劃建立一個有效的框架,以最大限度地利用現有技術生產基礎設施與不斷變化的市場環境保持同步。

  • (spoken in foreign language) OLED for mobile will leverage stronger production capacity and capabilities to drive shipment expansion and also secure topline growth and profitability through product diversification.

    (用外語發言)移動OLED將利用更強大的產能和能力來推動出貨量擴張,並透過產品多元化確保營收成長和獲利能力。

  • (spoken in foreign language) In large OLED business based on close collaboration with customers, we plan to expand on high end differentiated product lineup such as gaming monitors and ergonomic products incorporating even the health related needs of the users. On top of focusing on ultra large and ultra high definition products. We will also push forward with quality centric growth that drive bottom line enhancements by innovating the operational structure around cost savings and efficient production and sales strategies underpinned by end user demand.

    (外語演講)在大型OLED業務中,基於與客戶的密切合作,我們計劃擴大高端差異化產品陣容,例如遊戲顯示器和人體工學產品,甚至結合用戶的健康相關需求。除了專注於超大、超高清產品。我們還將推動以品質為中心的成長,透過圍繞成本節約和以最終用戶需求為基礎的高效生產和銷售策略創新營運結構,推動利潤的提高。

  • (spoken in foreign language) Next is the auto business, although e market growth seems to have dampened and there are to a certain extent signs of downstream volatility based on robust customer relationship and our differentiated product and technology portfolio like the P-OLED using the tandem technology, ATO a high end LTPS LCD, we will make sure there are no interruptions in winning orders across not only EVs but IC vehicles. Our plan thus is to build out stable earnings structure through cost competitiveness and by expanding customer segment and increasing share of OLED products.

    (用外語發言)接下來是汽車業務,儘管電子市場成長似乎有所放緩,並且基於強大的客戶關係以及我們的差異化產品和技術組合(例如使用串聯技術、ATO 高端LTPS LCD,我們將確保贏得電動車和IC 汽車訂單的過程中不會出現中斷。因此,我們的計劃是透過成本競爭力、擴大客戶群和增加OLED產品的份額來建立穩定的獲利結構。

  • (spoken in foreign language) Next is on the company's investment activities with external uncertainties continuing for longer and higher volatility seen on the demand side. We will take on a conservative approach in running and reviewing the capex plan.

    (外語發言)接下來是公司的投資活動,外部不確定性持續時間較長,需求方面波動較大。我們將採取保守的方式來運作和審查資本支出計劃。

  • (spoken in foreign language) For the time being, our priority is placed on strengthening business fundamentals, financial soundness. While securing steady stream of profitability, we plan to maximize use of current infrastructure while cautiously proceeding with new investments for expansion.

    (以外語發言)目前,我們的首要任務是加強業務基礎、財務穩健性。在確保穩定的獲利能力的同時,我們計劃最大限度地利用現有基礎設施,同時謹慎地進行新的擴張投資。

  • Under this overarching approach. In full consideration of external environment and demand growth, we will be enhancing investment efficiency by focusing on ordinary recurring basis, investment and essential investments required for business structure upgrades and for gaining of technological competencies.

    在這種總體方針下。充分考慮外部環境和需求成長,重點在於一般性經常性投資、業務結構升級、技術提升所需的必要性投資,並提高投資效率。

  • (spoken in foreign language) Capex for the year, hence, is expected to be in the mid KRW2 trillion level down by around KRW1.1 trillion year over year, as capex plan will be managed based on the cash flow generated under a profitability centric approach.

    (以外語發言)因此,今年的資本支出預計將在 2 兆韓元左右,年減約 1.1 兆韓元,因為資本支出計畫將根據以獲利為中心產生的現金流進行管理方法。

  • (spoken in foreign language) Despite continuing market and external uncertainties and volatilities in the end user demand through profitability centric business operations, underpinned by the outcomes of business structure, upgrades and operational efficiency gains. We will continue to bring gradual improvement in earnings as we go forward. Thank you

    (以外語發言)儘管市場和外部持續存在不確定性和波動,但以盈利為中心的業務運營,最終用戶的需求仍存在波動,並以業務結構、升級和運營效率提升的成果為基礎。隨著我們的前進,我們將繼續逐步改善獲利。謝謝

  • (spoken in foreign language) That brings us to the end of the earnings presentation for Q3 of 2024. We will now take your questions and I would like to ask the operator to please commence with the Q&A session.

    (用外語發言)2024 年第三季的收益報告到此結束。

  • Sunghyun Kim - Chief Financial Officer

    Sunghyun Kim - Chief Financial Officer

  • Now Q&A session will begin. (Operator Instructions)

    現在問答環節開始。 (操作員說明)

  • Dongwon Kim, KB Securities.

    Dongwon Kim,KB 證券。

  • Dongwon Kim - Analyst

    Dongwon Kim - Analyst

  • (spoken in foreign language) Thank you for taking my question. I have two questions that I would like to ask. The first one is your plans, in terms of the use of the cash proceeds that you will get from the sale of the Guangzhou LCD TV set planm would like to like you to provide some color as to how you would be making use of the proceeds? And after the inflow of the cash, what impact would that have on your financial metrics?

    (用外語發言)感謝您提出我的問題。我有兩個問題想請教。第一個是你們的計劃,關於你們從銷售廣州液晶電視機中獲得的現金收益的用途,計劃希望你們提供一些關於你們將如何使用這些收益的說明。現金流入後,會對您的財務指標產生什麼影響?

  • My second question is including the assets that are currently classified under held for sale. It seems your cash and cash equivalent amounts to around KRW2 trillion, and also it seems there has been some change compared to the previous number. Can you provide some explanation with regards to the difference?

    我的第二個問題是包括目前分類為持有待售的資產。您的現金及現金等價物似乎約為2萬億韓元左右,而且與之前的數字相比似乎也出現了一些變化。您能否對差異提供一些解釋?

  • Sunghyun Kim - Chief Financial Officer

    Sunghyun Kim - Chief Financial Officer

  • (spoken in foreign language) This is the CFO, responding to your question. After we made our disclosure on September 30, there had been a series of news articles that followed.

    (用外語發言)我是財務官,回答你的問題。 9月30日我們做出揭露後,隨之而來的是一系列新聞報導。

  • (spoken in foreign language) Now, I also personally had very closely read and followed those articles, but I have to say that there were none of these articles clearly portrayed or accurately portrayed how things were.

    (外語)現在,我個人也非常仔細地閱讀和關注過這些文章,但我必須說,這些文章都沒有清楚地描述或準確地描述事情的真相。

  • (spoken in foreign language) And I believe that is one of the reasons why the analysts are also having a difficult time understanding the clear structure of this deal and the transaction. So today, I would like to take the opportunity to provide you with the explanation regarding how the deal was structured and how the payment is actually going to be settled without disclosing all the specifics.

    (用外語發言)我相信這也是分析師很難理解這筆交易和交易的清晰結構的原因之一。因此,今天,我想藉此機會向大家解釋一下交易的結構以及付款實際上將如何結算,但不透露所有細節。

  • (spoken in foreign language) In the previous conference call, I mentioned that the whole process may take some time. And I said as such because if you look at the whole deal process up until the time that the deal actually closes, there was a certain step that will be quite time consuming.

    (外語)在之前的電話會議中,我提到整個過程可能需要一些時間。我之所以這麼說,是因為如果你看看整個交易流程,直到交易實際完成,你會發現有一個步驟非常耗時。

  • (spoken in foreign language) It is actually right and true. That date is September 30, we executed a SPA, share purchase agreement and there is another process that would have to follow after the execution of the agreement, which is that we need to receive approval from seven different countries with regards to the combination of the company entities.

    (用外語說)這確實是正確的、真實的。那個日期是9月30日,我們簽署了一份SPA,即股份購買協議,協議簽署後還必須遵循另一個流程,那就是我們需要獲得七個不同國家關於合併的批准公司實體。

  • (spoken in foreign language) It is only after we go through this merger approval, can we actually arrive at the closure of this deal. And then the relevant payment will be made to us and then we will be able to finalize the whole deal process.

    (外語)只有經過這次合併審批之後,我們才能真正完成這筆交易。然後向我們支付相關款項,然後我們就可以完成整個交易過程。

  • (spoken in foreign language) And in terms of the timing of this, basically, our goal is to finish and finalize the process by the end of the first quarter of next year.

    (以外語發言)就時間而言,基本上,我們的目標是在明年第一季末之前完成並最終確定該流程。

  • (spoken in foreign language) And basically, this is the reason why I had previously mentioned that the whole process may be time consuming.

    (用外語說)基本上,這就是為什麼我之前提到整個過程可能很耗時的原因。

  • (spoken in foreign language) And I think, there was also a bit of a misunderstanding with regards to the price, the amount of the deal as you know, when it comes to an M&A deal, even if the asset is a same asset that the M&A deal structure can take many different forms.

    (用外語說)而且我認為,在併購交易中,對於價格、交易金額也存在一些誤解,即使該資產與併購交易是相同的資產。

  • (spoken in foreign language) As a matter of fact, the whole sale or sell off process for this asset had actually begun in the early summer of 2023.

    (外語)事實上,這項資產的整個出售或拋售過程其實早在2023年初夏就開始了。

  • (spoken in foreign language) So in the process of going through this deal, we went through a bidding process in 2024 and we were able to shortlist the preferred potential buyers and that fact had as you know, been disclosed

    (用外語說)因此,在完成這筆交易的過程中,我們在 2024 年進行了招標過程,我們能夠篩選出首選的潛在買家,正如您所知,這一事實已被披露

  • (spoken in foreign language) Now regarding the bidding process and the price setting process, unlike other types of deal, the KRW10.8 billion, the figure that we had previously disclosed was based off of December end 2023 figure including the facilities, the equipment, the land, the asset as well as the liabilities and working capital. It once again just to elaborate and highlight it was based off of end of '23 figure.

    (用外語發言)現在關於招標過程和定價過程,與其他類型的交易不同,108億韓元,我們之前披露的數字是基於2023年12月底的數字,包括設施、設備、土地、資產以及負債和營運資金。它再次只是為了闡述和強調它是基於 23 年底的數字。

  • (spoken in foreign language) So I mentioned that closing is expected to happen in the first quarter of 2025. And one of the special thing to know for this particular deal is that, with regards to the asset value which is the facilities and the production asset, it is valued as of end of '23 and it is from that point on that this asset is not going to depreciate.

    (以外語發言)因此,我提到預計將於 2025 年第一季完成交割。截至23 年底,從那時起該資產就不會貶值。

  • (spoken in foreign language) And so how this whole payment is going to be settled is, the difference between the liabilities, the working capital and the borrowings as of December end of 2023. And the figure as of at the closing of 2025. So it is only the difference in this amount that will be subject to the settlement, the payment settlement.

    (用外語說)那麼,整個付款將如何結算,即截至 2023 年 12 月底的負債、營運資金和借款之間的差額。結算。

  • (spoken in foreign language) Which means that the earnings performance and the business performance that is generated by the CA entity, which is the Guangzhou LCD TV fab, is going to be reflected. And basically in year 2024, the entity had actually turned around and profit. So basically what that goes to show is that compared to the amount and the price that we had previously disclosed, I can assure you that number is not going to decline.

    (以外語發言)這意味著CA實體(即廣州液晶電視工廠)所產生的獲利表現和經營績效將會得到體現。基本上在 2024 年,該實體實際上已經扭虧為盈並獲利。因此,基本上這表明,與我們之前披露的金額和價格相比,我可以向您保證,這個數字不會下降。

  • (spoken in foreign language) So I think it will be helpful for you to make your projection based upon the rational and the logic, that I have just laid out. But since we have not yet closed the fiscal year 2024, accounts yet, once the whole deal is closed, there may be some difference in the actual price -- actual payment that will be received. So once we make that payment finalized, we will be able to come back to you and provide you with more details.

    (用外語說)所以我認為根據我剛才闡述的理性和邏輯來做出你的預測會對你有所幫助。但由於我們還沒有結束 2024 財年的帳目,一旦整個交易完成,實際價格(將收到的實際付款)可能會有所不同。因此,一旦我們完成付款,我們將能夠回覆您並為您提供更多詳細資訊。

  • (spoken in foreign language) At the end of the day, the market will assess as it wishes. But from my perspective, I believe that this actually is a deal transaction that is both a win, win for the buyer as well as the seller.

    (用外語發言)最終,市場將按照自己的意願進行評估。但從我的角度來看,我相信這實際上是一筆交易,對買方和賣方來說都是雙贏。

  • Joo Dong Kim - Vice President of Finance

    Joo Dong Kim - Vice President of Finance

  • (spoken in foreign language) Hello, this is Kim, this is [Joo Dong Kim] VP of Finance. I will respond to your question about cash and cash equivalent.

    (用外語發言) 大家好,我是 Kim,我是 [Joo Dong Kim] 財務副總裁。我將回答您有關現金和現金等價物的問題。

  • (spoken in foreign language) So with the -- starting this year, we have seen improvement in our business performance and through equity increase, we were able to stabilize our financial position and we are also gaining more visibility in terms of future uptrend in corporate earnings. So as such, we are going to focus our efforts on optimizing the appropriate level of cash that we hold in order to reduce any financial expenses and also to allow for a further uptrend or further improvement in financial structure.

    (用外語發言)因此,從今年開始,我們看到我們的業務績效有所改善,透過股權增加,我們能夠穩定我們的財務狀況,並且我們對企業未來的上升趨勢也有了更多的了解。 。因此,我們將集中精力優化我們持有的適當現金水平,以減少財務費用,並允許財務結構進一步上升或進一步改善。

  • (spoken in foreign language) Since we have in place a structure that allows us to respond to changes in liquidity and to eliminate any mismatch in cash held by different geographies as we can employ and use global cash pooling mechanism. And hence, we believe that with the cash at about KRW2 trillion level, we will be able to operate our business quite steadily.

    (用外語發言)因為我們已經建立了一個結構,使我們能夠應對流動性的變化,並消除不同地區持有的現金的不匹配,因為我們可以採用和使用全球現金池機制。因此,我們相信,憑藉大約2兆韓元水準的現金,我們將能夠相當穩定地經營我們的業務。

  • (spoken in foreign language) We also have sufficient access to various financing methods through the financial markets, including borrowing or loans from banks and also issuance of corporate debt. All going forward, we are going to optimize our financing portfolio, as well as our internal cash flow generation capabilities, so that we could have a laser focus on improving our financial position.

    (用外語發言)我們也有充分的機會透過金融市場獲得各種融資方式,包括向銀行借款或貸款以及發行企業債務。展望未來,我們將優化我們的融資組合以及我們的內部現金流產生能力,以便我們能夠專注於改善我們的財務狀況。

  • Sunghyun Kim - Chief Financial Officer

    Sunghyun Kim - Chief Financial Officer

  • (spoken in foreign language) Next question please.

    (用外語發言)請下一個問題。

  • Operator

    Operator

  • Hyon NamKung, Shinhan Investment & Securities.

    Hyon NamKung,新韓投資證券公司。

  • Hyon NamKung - Analysr

    Hyon NamKung - Analysr

  • (spoken in foreign language) Thank you for taking my question. My question relates to your smartphone business. Recently, there seems to have been more heightened competition amongst your peers, for this business segment, would like to understand, what your thoughts are regarding the competition that you're seeing to gain wallet share of your customers? Would like to know what your strategies are in order to respond to such competition? What's your strategy? And also I believe that you would need to manage seasonality, especially regarding the first half of the year. What are your plans to further enhance companies value and also to strengthen your business capabilities?

    (用外語發言)感謝您提出我的問題。我的問題與你們的智慧型手機業務有關。最近,您的同行之間的競爭似乎更加激烈,對於這個業務領域,您想了解一下,您對您所看到的爭奪客戶錢包份額的競爭有何看法?想知道你們應對這類競爭的策略是什麼?你的策略是什麼?我還認為,您需要管理季節性,尤其是上半年。您有哪些計劃來進一步提升公司價值並增強您的業務能力?

  • And then the second part of the question is that as LG Displays core business, what is your plan to further grow the top line revenue, the profit as well as its share, out of your total revenue mix?

    問題的第二部分是,作為 LG Display 的核心業務,您計劃如何進一步增加總收入組合中的營收、利潤及其份額?

  • My last question relates to recent interest and emergence of the foldable product. There seems to be heightened interest around this product segment. What is LG Display's plan for this product segment? If you could provide some color that would be appreciated.

    我的最後一個問題與最近對可折疊產品的興趣和出現有關。人們似乎對該產品領域的興趣越來越濃厚。 LG Display對該產品領域有何計畫?如果您能提供一些顏色,我們將不勝感激。

  • Sanghee Park - in-charge of Small Display Planning and Management

    Sanghee Park - in-charge of Small Display Planning and Management

  • (spoken in foreign language) Hello, this is [Sanghee Park] I'm in-charge of small display planning and management responding to your question. Yes, you are correct. We see supply competition heighten across different providers, but our panel shipment continues to show an uptrend and our product mix around the new models is also strengthening. So we have seen our capabilities regarding technological leadership around the high end products actually improve over the years and we have steady supply capabilities. Hence, we expect that still going forward, we will be able to show a continuous uptrend in terms of performance.

    (外語)您好,我是【尚熙公園】,我負責小型展示規劃和管理,回答您的問題。是的,你是對的。我們看到不同供應商之間的供應競爭加劇,但我們的面板出貨量持續呈現上升趨勢,並且我們圍繞新型號的產品組合也在加強。因此,我們看到多年來我們在高端產品方面的技術領先能力實際上有所提高,並且我們擁有穩定的供應能力。因此,我們預計未來我們將能夠在業績方面呈現持續上升的趨勢。

  • (spoken in foreign language) When you look at the smartphone business, it is inevitable due to the product cycle that there is to a certain extent seasonality factor. But at LG Display, through diversifying our product models and also further growing and expanding the volume, we are going to increase the fab utilization so that we may minimize the GAAP that we see between first half and second half of the year.

    (用外語發言) 從智慧型手機業務來看,由於產品週期的原因,不可避免地存在一定的季節性因素。但在LG Display,透過產品型號的多樣化以及進一步成長和擴大產量,我們將提高晶圓廠利用率,以便我們可以最大限度地減少上半年和下半年之間的GAAP。

  • (spoken in foreign language) If you look at the mix from the small businesses in 2021, the revenue mix was 26% it increased to 33% in year 2023. So this has been on a growing trend. Going forward we will continue to make most out of our current production infrastructure and diversify the models as well as increase the shipment, so that we may drive improvement in product mix. So that we can ensure topline growth and secure bottom line profitability.

    (用外語發言)如果你看看 2021 年小企業的收入組合,你會發現收入組合為 26%,到 ​​2023 年增加到 33%。展望未來,我們將繼續充分利用現有的生產基礎設施,豐富車型,增加出貨量,並推動產品結構的改善。這樣我們就可以確保營收成長並確保獲利能力。

  • (spoken in foreign language) Regarding the changes in the form factor, particularly around high end products, we do expect there is a specific space for these types of high end products in the total market. However, with the continuation of the macro uncertainties, as well as heightened volatilities that we are seeing on the demand side, we are very closely monitoring the acceptance of these differentiated and unique products as well as the pace of market growth as we adjust and respond accordingly.

    (用外語發言)關於外形尺寸的變化,特別是高端產品的變化,我們確實預計這些類型的高端產品在整個市場中會有特定的空間。然而,隨著宏觀不確定性的持續存在,以及需求方面波動性的加大,我們正在密切關注這些差異化和獨特產品的接受度以及市場成長的步伐,並進行調整和應對。

  • At this point in time, we are mass producing and supplying notebook foldable products to one of the global customers. We are once again very closely monitoring the user response and acceptance and we are also experiencing more broader application of this product segment. And in so doing, we are building our own technological as well as mass production experience and when our customers make the request, we have the ample capabilities to respond accordingly.

    目前,我們正在向全球客戶之一批量生產和供應筆記本可折疊產品。我們再次密切關注用戶的反應和接受度,我們也正在體驗該產品領域更廣泛的應用。透過這樣做,我們正在建立自己的技術和大規模生產經驗,當我們的客戶提出要求時,我們有足夠的能力做出相應的反應。

  • (spoken in foreign language) Next question please,

    (用外語發言)請下一個問題,

  • Operator

    Operator

  • Sun Woo Kim, Meritz Securities.

    Sun Woo Kim,梅里茨證券公司。

  • Sun Woo Kim - Analyst

    Sun Woo Kim - Analyst

  • (spoken in foreign language) Thank you for taking my question. My question relates to the demand side. We see that the recovery for the IT product industry is slower than expected and also it is quite stagnant as we speak. And I think this is having a bigger impact on the higher end, more pricier product as we enter as we entered into the second half of the year, we also see a very clear downward trend in terms of demand for tablet OLED, as well as panel shipment. We would like to know if you therefore had changed your forecast for the future.

    (用外語發言)感謝您提出我的問題。我的問題涉及需求方。我們看到IT產品產業的復甦比預期慢,而且目前還相當停滯。我認為,隨著我們進入下半年,這對高端、價格更高的產品產生了更大的影響,我們也看到平板電腦 OLED 的需求出現了非常明顯的下降趨勢,以及面板出貨。我們想知道您是否因此改變了對未來的預測。

  • Unidentified_1

    Unidentified_1

  • (spoken in foreign language) Now, we still believe that we have the differentiated edge and competitiveness when it comes to tablets that is developed based off of the tandem technology because it provides a lower power and longer life characteristics.

    (外語發言)現在,我們仍然相信基於串聯技術開發的平板電腦具有差異化優勢和競爭力,因為它具有更低的功耗和更長的壽命特性。

  • (spoken in foreign language) Now having said that because we see continuing macro uncertainties and also delayed recovery in the overall IT device demand and especially for the high end product as well. We are in the process of adjusting our original shipment plan.

    (用外語發言)話雖如此,因為我們看到宏觀不確定性持續存在,而且整體 IT 設備需求(尤其是高階產品)的復甦也延遲。我們正在調整原來的出貨計劃。

  • (spoken in foreign language) But still since we are in the midst of the fourth quarter, it is a bit too early for us to provide you with a clear cut direction as to what our annual shipment volume will look like.

    (用外語發言)但由於我們正處於第四季度中期,所以現在向您提供關於我們的年度出貨量的明確方向還為時過早。

  • (spoken in foreign language) Next question, please.

    (用外語發言)請下一個問題。

  • Operator

    Operator

  • Kyuha Lee, NH Investment & Securities.

    Kyuha Lee,NH 投資與證券。

  • Kyuha Lee - Analyst

    Kyuha Lee - Analyst

  • (spoken in foreign language) Thank you for taking my question. I'm Kyuha, from NH Securities. I have two questions, that I would like to ask would like to know what your price projection is going forward in line with the panel as well as the set demand assumptions that you have in place? Has there been any significant changes compared to your original forecast? And also we see the sluggishness in the IT LCD demand actually being prolonged. When do you think that things will start to normalize and what is LG Displays countermeasures and response so that you could actually drive improvement in profitability?

    (用外語發言)感謝您提出我的問題。我是 NH 證券公司的 Kyuha。我有兩個問題想問一下,想知道你們的價格預測是根據面板以及你們現有的設定需求假設進行的嗎?與您最初的預測相比,有什麼重大變化嗎?我們也看到 IT LCD 需求的低迷實際上正在持續。您認為情況什麼時候會開始正常化?

  • My next question is, if you could just share with us what the key characteristics are, for your product at the same compared to your peers at the same product segment as well as the price range for the IT LCD and your and also in terms of your it businesses mid to longer term plan?

    我的下一個問題是,您是否可以與我們分享您的產品與同一產品領域的同行相比的主要特徵是什麼,以及 IT LCD 和您的產品的價格範圍,以及您的IT 業務中長期計劃是什麼?

  • Ki-Yong Lee - In-charge of Business Intelligence

    Ki-Yong Lee - In-charge of Business Intelligence

  • (spoken in foreign language) I am Ki Yong, in-charge of business intelligence, responding to your question about the demand. Now, compared to our early year outlook, the TV set market we are expecting is going to contract versus our original expectation. But conversely for the IT set and panel market, mostly around the low end low price point products, we are seeing some signs of slight recovery.

    (外語)我是商務智能負責人Ki Yong,回答你關於需求的問題。現在,與我們年初的展望相比,我們預計電視機市場將比我們最初的預期收縮。但相反,對於 IT 設備和麵板市場,主要圍繞在低端低價位產品,我們看到了一些小幅復甦的跡象。

  • (spoken in foreign language) Looking at first, the TV market, the demand from the TV set market is currently being delayed. But if you specifically look at the OLED TV market, we had worked on clearing up the inventory. So on a year over year basis, we believe that the performance is going to be more stabilized compared to the past. And for the panel segment, with the fall in the downstream inventory level, the overall TV panel growth was in the low single digit. Whilst for the OLED TV panels, we expect to see an outperformance compared to the overall market growth.

    (外語發言) 首先看電視市場,目前電視機市場的需求正在延遲。但如果你專門關注 OLED 電視市場,我們一直在努力清理庫存。因此,與去年相比,我們認為業績將比過去更加穩定。而面板板塊,隨著下游庫存水準下降,電視面板整體成長率處於低個位數。對於 OLED 電視面板,我們預計其表現將優於整體市場成長。

  • (spoken in foreign language) Now, during the second quarter, because there was big global sporting event, we saw a one-off TV panel price uptick. However, this does not mean that there was any structural changes on the demand side. So we do not expect any significant ups and downs or fluctuations when it comes to panel prices.

    (外語)現在第二季度,因為有大型全球體育賽事,我們看到電視面板價格出現了一次性上漲。但這並不意味著需求端發生了結構性變化。因此,我們預計面板價格不會有任何大幅波動。

  • (spoken in foreign language) It's too uncertain at this point in time for us to be definitive of any meaningful recovery in the IT product market this year. We are sensing some positive market data on a year over year basis for the set and the panel business. But this number actually includes the impact that we've seen in Q2, A tipping impact because of the global logistics issue. And also we are seeing some migration and transition around the lower end of the B2C market, the general purpose, the commoditized products.

    (用外語發言) 目前還不確定,我們無法確定今年 IT 產品市場是否會出現任何有意義的復甦。我們感受到電視和麵板業務較去年同期出現了一些正面的市場數據。但這個數字實際上包括了我們在第二季度看到的影響,這是由於全球物流問題而產生的重大影響。我們也看到圍繞著低端 B2C 市場、通用產品和商品化產品的一些遷移和轉變。

  • Hence, that seems to be where we are at this point. But in terms of the B2B and high end product demand at this point, we are very closely monitoring how the market plays out.

    因此,這似乎就是我們目前所處的情況。但就目前的 B2B 和高端產品需求而言,我們正在密切關注市場的發展。

  • (spoken in foreign language) Just to elaborate on some of the factors that may impact the demand would be the changes in the B2C demand with the rate cut environment as well as increases in companies it spending which may further expand B2B demand. And at the same time with Windows '10 releasing its final version and it's being terminated as well as increases in the demand for AI based PCs, which will trigger a replacement demand. We think that these factors may work as and we hope that these factors work as some catalyst. So there may be some quarterly changes regarding the it panel prices, but even if there are, we expect it to be not too significant.

    (以外語發言) 只是詳細說明可能影響需求的一些因素,即降息環境下B2C需求的變化以及企業支出的增加可能會進一步擴大B2B需求。同時,隨著 Windows '10 發布其最終版本並被終止,以及基於人工智慧的 PC 的需求增加,這將引發更換需求。我們認為這些因素可能會發揮作用,我們希望這些因素能起到某種催化劑的作用。因此,IT面板價格可能會出現一些季度變化,但即使有,我們預計變化也不會太大。

  • Won Jae Lee - In-charge of Medium Display Planning and Management

    Won Jae Lee - In-charge of Medium Display Planning and Management

  • (spoken in foreign language) Hello, this is [Won Jae Lee]. I'm in charge of medium display planning and management, responding to your question on different IT product segment and demand, ensuing demand for those segments, we see differences across different product price points. And so it's very difficult for us to make very accurate prediction as to what will happen in the market.

    (用外語)大家好,我是[Won Jae Lee]。我負責媒體展示的規劃和管理,回答你關於不同IT產品細分和需求的問題,隨後對這些細分市場的需求,我們看到不同產品價格點的差異。因此,我們很難對市場將發生什麼事做出非常準確的預測。

  • Having said that the company has really focused on profit over the years and endeavoring to reduce cost and also to reduce the products that are low margin and to grow the share of high end products and underpinned by our technological competitiveness and based upon our partnership with customers.

    話雖如此,該公司多年來一直非常注重利潤,努力降低成本,減少低利潤產品,增加高端產品的份額,並以我們的技術競爭力為基礎,以我們與客戶的合作夥伴關係為基礎。

  • (spoken in foreign language) So when the time comes for full fledged, IT demand recovery, supported by our differentiated unique capabilities and product competitiveness, we expect that in the high end segment of the market, we will be able to expand and solidify our positioning which will then translate into improvement in profitability.

    (外語)所以當IT需求全面復甦的時候,在我們差異化的獨特能力和產品競爭力的支持下,我們預計在高端市場,我們能夠擴大和鞏固我們的產品。能力的提高。

  • Will take the final question before we end today's call.

    在我們結束今天的電話會議之前將回答最後一個問題。

  • Operator

    Operator

  • [Suan Kim, QM Securities].

    [Suan Kim,QM 證券]。

  • Suan Kim - Analyst

    Suan Kim - Analyst

  • Hello, I am [Kim Suan from QM Securities]. I have a question relating to your large OLED tunnel business. If you look at the shipment, we are looking forward to an year over your increase going forward and come next year, your depreciation period would also end. So aside from improvement in the macro backdrop, in order for you to sustain the growth for these large OLED business, what are some of the efforts that the company is currently planning on?

    大家好,我是【QM 證券的 Kim Suan】。我有一個關於你們大型 OLED 隧道業務的問題。如果你看一下這批貨物,我們期待你的增加一年,到明年,你的折舊期也將結束。那麼除了宏觀背景的改善之外,為了讓這些大型OLED業務能夠持續成長,公司目前計劃做出哪些努力呢?

  • Kim Joo Dong - Vice President of Large Display Planning and Management

    Kim Joo Dong - Vice President of Large Display Planning and Management

  • I am Kim [Joo Dong], VP of large display, and I will provide you with the explanation separating the panels that we supply for the finished product set, as well as our panel business separately.

    我是大型顯示器副總裁 Kim [Joo Dong],我將分別為您提供我們為成品組提供的面板以及我們的面板業務的解釋。

  • (spoken in foreign language) First, if you look at the TV set company, the overall total growth is limited at this point, which means that our customers are focused more on the premium, the high end the OLED products and they are also undertaking some of the value of improvements applying that to TV sets by incorporating AI feature.

    (用外語發言)首先,如果你看看電視機公司,目前整體的總成長是有限的,這意味著我們的客戶更專注於高端、高端的OLED產品,他們也在承擔透過結合人工智慧功能,將其應用於電視機的一些改進的價值。

  • (spoken in foreign language) And also if you look at the total set market from a supply chain perspective, the inventories have become more healthier.

    (用外語發言)而且,如果從供應鏈的角度來看整個市場,庫存也變得更健康。

  • (spoken in foreign language) So under this overarching backdrop, if you look at our large size OLED panels on a year over year basis, we are seeing better performance.

    (用外語發言)因此,在這個總體背景下,如果你逐年觀察我們的大尺寸OLED面板,我們會看到更好的表現。

  • (spoken in foreign language) Now in order to further drive meaningful improvement from a earnings perspective. At this point, our division in the large OLED business is currently making preparations to further enhance competitiveness.

    (用外語發言)現在為了從獲利角度進一步推動有意義的改善。目前,我們的大型OLED業務部門目前正在做準備,以進一步增強競爭力。

  • (spoken in foreign language) A good case to note is that we're making some technological preparations, especially called the meta technology and also developing technology for eye health, eye safety. So we have been able to communicate this recently to the market.

    (用外語發言)一個很好的例子是我們正在做一些技術準備,特別是元技術,同時也在開發眼睛健康、眼睛安全的技術。所以我們最近已經能夠向市場傳達這一點。

  • (spoken in foreign language) Now. Last but not least, we are also strengthening our customer base and for us to further improve on our profitability structure, we are very much focused on our internal cost improvement activities.

    (用外語說)現在。最後但並非最不重要的一點是,我們還在加強我們的客戶基礎,為了進一步改善我們的獲利結構,我們非常注重內部成本改善活動。

  • (spoken in foreign language) So our priority that we have placed is on transitioning into a profit making structure. We will also based our fab operation and really focus on efficiency in terms of fab operation, production sales, as well as cost reduction. All of this underpinned and underpinned by the demand that we see from the market. And as you've mentioned, our depreciation will come to end next year and we in this process will come up with meaningful ways to further improve on our profitability.

    (用外語發言)因此,我們的首要任務是轉型為獲利結構。我們也將立足於晶圓廠運營,真正關注晶圓廠營運、生產銷售以及降低成本方面的效率。所有這一切都是由我們從市場上看到的需求所支撐和支撐的。正如您所提到的,我們的折舊將於明年結束,在此過程中我們將提出有意義的方法來進一步提高我們的獲利能力。

  • Unidentified_1

    Unidentified_1

  • Thank you. This brings us to the end of the third quarter, 2024 earnings conference call of LG Display. Thank you very much for joining us today. And if you have any unanswered questions, please feel free to contact us at the IRT. Thank you.

    謝謝。 LG Display 2024 年第三季財報電話會議即將結束。非常感謝您今天加入我們。如果您有任何未解答的問題,請隨時透過 IRT 與我們聯絡。謝謝。