LG Display Co Ltd (LPL) 2024 Q4 法說會逐字稿

(spoken in Korean)

（韓文）

Good afternoon.

午安.

I am Brian Heo, in charge of LG Display's IR team.

我是 Brian Heo，負責 LG Display 的 IR 團隊。

On behalf of the company, thank you to all the participants for joining us today in our Q4 2024 earnings call.

我代表公司感謝今天參加我們 2024 年第四季財報電話會議的所有參與者。

Today, I have with me our CFO, Kim Seonghyeon; Lee Kiyoung, who is in charge of Business Intelligence; [Kim Jongdeok], Vice President of Large Display Planning and Management; Eum Seungchul, Team Head of Medium Display Business Strategy; [Baek Seungyong] in charge of Small Display Planning and Management; and Son Kihwan, VP of Auto Marketing.

今天，和我一起的有我們的財務長 Kim Seonghyeon；負責商業智慧的 Lee Kiyoung； [Kim Jongdeok] 大型顯示器規劃與管理副總裁； Eum Seungchul，中型顯示器業務策略團隊負責人； [白承勇] 負責小型顯示器規劃與管理；以及汽車行銷副總裁 Son Kihwan。

(spoken in Korean)

（韓文）

Today's conference call will be conducted in both Korean and English.

今天的電話會議將以韓語和英語進行。

And for more details, please refer to the provisional earnings, which we disclosed today, or the IR Events section on the company's website.

更多詳細資訊請參閱我們今天揭露的臨時收益或公司網站上的 IR 事件部分。

(spoken in Korean)

（韓文）

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

此外，在我們開始之前，請花一點時間閱讀免責聲明。

(spoken in Korean)

（韓文）

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.

提醒一下，今天的結果是基於為您提供便利而準備的合併 IFRS 標準，尚未接受外部審計師的審計。

(spoken in Korean)

（韓文）

Now, allow me to begin with our fourth-quarter earnings for 2024.

現在，請容許我先介紹我們 2024 年第四季的收益。

With continuing OLED-centric business structure upgrade, smartphone panel shipment in Q4 showed a sizable expansion, resulting in revenue increase of 15% QoQ and 6% year over year, reporting KRW7,832.9 billion.

受惠OLED為中心的事業架構持續升級，第四季智慧型手機面板出貨量大幅擴增，帶動營收季增15%，較去年同期增加6%，達7.8,329兆韓元。

(spoken in Korean)

（韓文）

Coupled with smartphone panel shipment expansion, rigorous cost savings and operational efficiency supported continuous earnings improvement, driving a turnaround in operating profit of KRW83.1 billion.

加上智慧型手機面板出貨量擴大，嚴謹的成本節約及營運效率支撐獲利持續改善，帶動營業利潤扭虧為盈達831億韓元。

Absent any notable changes in the end user demand and in the relevant downstream market, we were able to drive year-over-year profit improvement of around KRW2 trillion on a 2024 full-year basis.

如果最終用戶需求和相關下游市場沒有明顯變化，我們能夠實現 2024 年全年利潤年增幅約 2 兆韓元。

(spoken in Korean)

（韓文）

In Q4, we had around mid-KRW100 billion one-off expense, including ERP-related severance pay for clerical workers, which is similar to the levels of previous quarter.

第四季度，我們的一次性支出約為1000億韓元中段，其中包括與ERP相關的文職人員遣散費，與上一季的水平相似。

(spoken in Korean)

（韓文）

EBITDA in Q4 recorded KRW1,306.5 billion, and on a yearly basis, KRW4,565 billion.

第四季的 EBITDA 為 13,065 億韓元，去年同期為 45,650 億韓元。

EBITDA margin rate in 2024 was 17%.

2024 年 EBITDA 利潤率為 17%。

(spoken in Korean)

（韓文）

Next is area shipment and ASP per square meter.

接下來是面積出貨量和每平方公尺的平均售價。

Q4 area shipment was up 5% Q over Q on shipment expansion driven mostly by TV panels.

第四季出貨面積比上一季成長 5%，主要原因是電視面板的出貨量擴張。

And also on year-over-year basis, there was 19% increase as TV panel shipment expansion drove overall area shipment growth.

與去年同期相比，由於電視面板出貨量的擴大帶動了整體出貨面積的成長，因此成長了19%。

ASP per square meter also increased 6% QoQ, reaching USD873 following volume growth for smartphone panels.

隨著智慧型手機面板銷量的成長，每平方公尺的平均售價也較上季成長了 6%，達到 873 美元。

(spoken in Korean)

（韓文）

Next is product revenue mix.

接下來是產品收入組合。

In Q4, mobile and others accounted for the biggest portion of the revenue mix at 42%.

第四季度，行動和其他業務佔據了收入結構的最大份額，為 42%。

It's quite positive to see sustained uptrend in panel shipment every year, supported by stable supply capacity.

在穩定的供應能力支撐下，每年面板出貨量持續呈現上升趨勢，這是非常正面的趨勢。

(spoken in Korean)

（韓文）

IT segment revenue was down 28% QoQ on prolonged sluggishness in the downstream demand, and we are seeing varying volatilities in shipment across different quarters by product segments and customers.

由於下游需求持續低迷，IT部門營收季減28％，而且我們看到不同產品部門和客戶在不同季度的出貨量有不同的波動。

(spoken in Korean)

（韓文）

Following OLED TV panel shipment expansion, TV segment revenue posted QoQ and YoY growth, accounting for 22% of revenue mix, which is mostly flat due to overall increase in total revenue.

隨著OLED電視面板出貨量擴大，電視部門收入環比和同比增長，佔收入結構的22％，由於總收入整體增加，這一比例基本持平。

(spoken in Korean)

（韓文）

Auto segment revenue also increased mid-10% QoQ and YoY, while its share of the mix staying at 8%, same as last quarter.

汽車部門收入環比和同比增長均達到 10% 左右，而其在汽車結構中的份額仍為 8%，與上一季相同。

(spoken in Korean)

（韓文）

OLED share out of total revenue was up 2 percentage points QoQ and year over year, reaching 60%, which is record high, further solidifying the outcome from the company's OLED-centric business portfolio transformation.

OLED營收佔比季、年比分別提升2個百分點，達到60%，創歷史新高，進一步鞏固公司以OLED為中心的業務轉型成果。

(spoken in Korean)

（韓文）

Next is on the financial position and key metrics.

接下來是財務狀況和關鍵指標。

(spoken in Korean)

（韓文）

Q4 cash and cash equivalent was KRW2,021.6 billion while inventory assets declined to KRW2,671.2 billion on the back of shipment expansion in time for the peak season during Q4.

第四季現金和現金等價物為20,216億韓元，而由於第四季旺季出貨量擴大，庫存資產下降至26,712億韓元。

(spoken in Korean)

（韓文）

Debt-to-equity ratio and net debt ratio recorded 307% and 155%, respectively.

負債比率、淨負債比率分別為307%、155%。

(spoken in Korean)

（韓文）

In terms of Q1 guidance, we project area shipment to see a decline in TV panel shipment impacted by seasonality, reporting a decline of more than mid-single-digit fall Q over Q. ASP per square meter is expected to fall by around mid-10% range QoQ, due to it being a slow season for smartphone panels.

就第一季的指引而言，我們預計受季節性影響，電視面板出貨面積將出現下降，環比下降幅度將超過個位數中段。是智慧型手機面板的淡季，因此季增10%。

However, with loading rate increase based on volume growth and diversification in smartphone models, we expect performance to be quite strong compared to a typical first quarter season.

然而，隨著銷售成長和智慧型手機型號多樣化導致的裝載率上升，我們預計與典型的第一季相比，業績將相當強勁。

(spoken in Korean)

（韓文）

Next, I will invite our CFO, Kim Seonghyeon, to run through the highlights.

接下來，我將邀請我們的財務長金成鉉（Kim Seonghyeon）來回顧今年的亮點。

(spoken in Korean)

（韓文）

Good afternoon.

午安.

I'm Kim Seonghyeon, the CFO.

我是財務長金成鉉 (Kim Seonghyeon)。

Thank you for joining our earnings call today.

感謝您參加我們今天的財報電話會議。

(spoken in Korean)

（韓文）

Against the macro headwind of delayed demand recovery in the downstream market, we are seeing signs of changing global trade environment leading to ever-heightened business volatility.

在下游市場需求復甦延遲的宏觀逆風下，我們看到全球貿易環境變化的跡象，導致業務波動不斷加劇。

We, therefore, continue to drive OLED-centric business structural upgrade in order to sustain the business performance uptrends and are focusing on rigorous cost innovation and operational efficiency activities to improve profitability of our business, which is the company's priority as we push ahead with stronger execution capacity.

因此，我們繼續推動以 OLED 為中心的業務結構升級，以維持業務績效上升趨勢，並專注於嚴格的成本創新和營運效率活動，以提高我們業務的盈利能力，這是公司在推進更強​​大的執行能力。

(spoken in Korean)

（韓文）

As a result, despite uncertain market backdrop, 2024 annual revenue was up 25% year on year and despite mid-KRW100 billion level of one-off expense in Q3 and Q4, respectively, last year, we drove meaningful outcome of reporting around KRW2 trillion of profit improvement on an annual basis.

因此，儘管市場背景不明朗，2024 年的年收入年增了25%，儘管去年第三季和第四季的一次性支出分別達到1,000 億韓元左右，但我們取得了有意義的成果，報告顯示收入約2 兆韓元利潤逐年提高。

(spoken in Korean)

（韓文）

Excluding the impact of one-off factors, earnings results since Q3 of last year have been very much stable, and we expect such trend will continue into the first half of this year, which is typically on offseason, allowing us to constrain the fluctuations and ensure a more steady trend without the dramatic changes that we've seen in the past.

排除一次性因素的影響，自去年第三季度以來的盈利結果非常穩定，我們預計這種趨勢將持續到今年上半年，而上半年通常處於淡季，這使我們能夠抑制波動和確保趨勢更加穩定，不會出現過去那樣劇烈的變化。

(spoken in Korean)

（韓文）

This year, we will endeavor to not only achieve a turnaround in annual results, but also meet market expectations, underpinned by OLED panel shipment expansion across different product segments.

今年，我們不僅要努力實現全年業績扭虧，更要努力滿足市場預期，借助OLED面板在各產品領域的出貨量擴大優勢。

(spoken in Korean)

（韓文）

Next, I will run through the business plan and strategies.

接下來，我將介紹商業計劃和策略。

(spoken in Korean)

（韓文）

OLED for mobile will secure a competitive edge by preparing for future technologies required by the market and the customer.

行動用OLED將為市場和客戶所需的未來技術做好準備，確保競爭優勢。

Also, we will drive utilization in the first half, supported by shipment expansion and diversification of product offerings based on stronger production capabilities to grow top line and to strengthen profitability.

此外，我們將在上半年提高利用率，透過擴大出貨量和基於更強大的生產能力實現產品多樣化，從而增加營收並增強獲利能力。

(spoken in Korean)

（韓文）

For medium IT segment, underpinned by global customer base and differentiated technologies, including IPS Black and Neo LED, we will respond effectively to the competitive landscape.

對於中型IT領域，我們將依托全球客戶群及IPS Black、Neo LED等差異化技術，有效因應競爭格局。

Although global IT market has been sluggish for an extended term, we are carrying out various internal activities that can drive profitability, including innovating our cost base.

儘管全球IT市場長期低迷，但我們仍在進行各種可以提高獲利能力的內部活動，包括創新我們的成本基礎。

As such, we believe in the second half.

因此，我們對下半年充滿信心。

If we start to see signals for demand recovery and many other opportunities, we can sufficiently have an upside compared to the target set at the start of the year.

如果我們開始看到需求復甦的訊號和許多其他機會，那麼與年初設定的目標相比，我們就可以有足夠的上升空間。

(spoken in Korean)

（韓文）

For IT OLED, although the market situation does not favor the sale of high-end products, we expect to see year-over-year growth in 2025 since there clearly exists unique value offering of tandem OLED, such as the lower power profile.

對於 IT OLED，儘管市場情況不利於高端產品的銷售，但我們預計 2025 年將出現同比增長，因為串聯 OLED 顯然具有獨特的價值，例如更低的功率特性。

Also, in step with market changes, we are looking at various ways to scale up operational efficiency such as maximizing the use of production infrastructure.

此外，隨著市場的變化，我們正在尋找各種方法來提高營運效率，例如最大限度地利用生產基礎設施。

(spoken in Korean)

（韓文）

In large OLED business through diversification of product lineup, including ultra large TV panels and a more solid portfolio, as well as expansion into differentiated and high-end lineup, such as gaming OLED monitors that better caters to consumer needs, we plan to drive shipment expansion.

在大型OLED業務方面，我們計劃透過產品陣容的多樣化，包括超大型電視面板和更穩固的產品組合，以及擴展到差異化和高端產品線，例如更能滿足消費者需求的遊戲OLED顯示器，來推動出貨量擴張。

At the same time, we plan to sustain quality-driven growth and bring profitability enhancements as well through efficient production strategy underpinned by the end user demand and cost savings and other operational innovations.

同時，我們計劃透過以最終用戶需求和成本節約以及其他營運創新為基礎的高效生產策略，維持品質驅動的成長並提高獲利能力。

(spoken in Korean)

（韓文）

Next is auto business.

接下來是汽車業務。

Recently, automobile market is starting to recover gradually, but there are uncertainties lingering around EVs as countries are scaling down on subsidies.

近期汽車市場開始逐步回暖，但隨著國家逐步取消補貼，電動車市場仍面臨許多不確定性。

LG Display has close and stable relationship with our customer base, and we have a portfolio of customers spanning from premium to the mass market.

LG Display 與我們的客戶群保持著密切且穩定的關係，我們的客戶組合涵蓋從高端市場到大眾市場。

And because we have a portfolio of distinct product and technology offerings, which are tandem-based plastic OLED, ATO, advanced OLED, and high-end LTPS LCD, we will continue to endeavor to win orders and grow the top line from not only EVs but also internal combustion engine vehicles as we operate our business under a solid footing.

由於我們擁有一系列獨特的產品和技術，包括串聯式塑膠 OLED、ATO、先進 OLED 和高端 LTPS LCD，我們將繼續努力贏得訂單，並不僅從電動車領域增加營收而且我們還會涉足內燃機汽車領域，因為我們的業務是在穩固的基礎上開展的。

(spoken in Korean)

（韓文）

Last point is on CapEx.

最後一點是關於資本支出。

Since the uncertainties persist and with higher demand volatility, we wish to keep to a conservative stance when it comes to making investments.

由於不確定性仍然存在且需求波動較大，我們希望在投資時保持保守的立場。

(spoken in Korean)

（韓文）

Hence, our priority is to strengthen business fundamentals, and financial soundness, and secure stable profitability.

因此，我們的首要任務是加強業務基礎和財務穩健性，確保穩定的獲利能力。

So we will fully utilize the infrastructure that we currently own whilst maintaining prudence when it comes to CapEx for new expansion.

因此，我們將充分利用我們目前擁有的基礎設施，同時在新的擴張的資本支出方面保持謹慎。

(spoken in Korean)

（韓文）

Last year, CapEx spend amounted to KRW2.2 trillion.

去年，資本支出達2.2兆韓元。

And for this year, we estimate low to mid-KRW2 trillion of CapEx.

我們預計今年的資本支出將在 2 兆韓元左右。

Investments will be focused on what's needed for the business structure upgrade and spending will be from cash flow generated based on profitable operations as we plan on enhancing investment efficiency.

我們計劃提高投資效率，投資將集中在業務結構升級所需的領域，支出將來自獲利營運產生的現金流量。

Thank you.

謝謝。

(spoken in Korean)

（韓文）

That brings us to the end of the earnings presentation for Q4 of '24.

這就結束了 2024 年第四季的財報。

We will now take your questions.

我們現在將回答大家的提問。

Operator, please commence with the Q&A session.

接線生，請開始問答環節。

(spoken in Korean)

（韓文）

(Operator Instructions) Kim Dongwon, KB Securities.

(操作員指令) Kim Dongwon，KB 證券。

(spoken in Korean)

（韓文）

Thank you for taking my question.

感謝您回答我的問題。

I would like to ask you two questions.

我想問你兩個問題。

First one is with response to your mid to small-sized pOLED business.

第一個是針對你們的中小型pOLED業務。

With regards to your North America-based strategic customer, I understand that there is heightened competition across different suppliers to gain share of wallet of that specific customer.

關於您位於北美的策略客戶，我了解到不同供應商之間的競爭非常激烈，以爭奪該特定客戶的市場份額。

Would like to understand as to what your strategies are in order to further improve on your profitability and for you to maintain your share of wallet and market share in the smartphone panel business against that specific customer?

想了解你們採取什麼策略來進一步提高獲利能力，並在智慧型手機面板業務中保持相對於特定客戶的份額和市場份額？

And related to that, I also understand that in -- for that company, there is going to be the introduction of the most mass-market level, entry-level model that is going to be introduced into the market.

與此相關，我還了解到，該公司將會推出最適合大眾市場的入門車型。

Would like to understand whether that will help you mitigate the impact from seasonality, and also what impact would that have on your bottom line.

想了解這是否有助於您減輕季節性的影響，以及這會對您的底線產生什麼影響。

Second question is with respect to the exclusive supply of foldable panels to your strategic customer.

第二個問題是關於向你們的策略客戶獨家供應可折疊面板。

I would like to understand what LG Display's position and strategies are to cater to that need.

我想了解 LG Display 的立場和策略是如何滿足這項需求的。

(spoken in Korean)

（韓文）

That is correct, that against the backdrop of more heightened competition across different suppliers.

確實如此，這是在不同供應商之間競爭更加激烈的背景下發生的。

We are very much focused on making preparations for future-proof technologies and also to gain our mass production competitiveness so that we can further reinforce our company's competitive edge.

我們非常注重為面向未來的技術做好準備，並獲得量產競爭力，以便進一步增強公司的競爭優勢。

And at the same time, we have plans to further improve on continuous productivity as well as more strengthened at a high level of quality and also engage in innovation, cost innovation activities, which will help with strengthening and reinforcing the business competitiveness of the company.

同時，我們計劃進一步提高持續生產力，加強高品質水平，並開展創新、成本創新活動，這將有助於加強和鞏固公司的商業競爭力。

(spoken in Korean)

（韓文）

Now, looking at the smartphone business, as of today, we continuously see growth in terms of the panel shipment, and we are strengthening the product mix centering around the new models.

現在，縱觀智慧型手機業務，截至今天，我們看到面板出貨量持續成長，並且我們正在圍繞新機型加強產品組合。

And also through diversification of the models, we are able to increase the volume, which helps us to minimize the gap between the loading rate for our production lines between the first half and the second half of the year.

同時透過車型的多樣化，我們能夠增加產量，這有助於我們盡量縮小上半年和下半年生產線裝載率的差距。

As a result, we are looking forward to around 20%, on a year-over-year basis, growth in terms of shipment.

因此，我們預計出貨量將年增 20% 左右。

(spoken in Korean)

（韓文）

In terms of the small panel business, the revenue mix has moved from 26% in 2021 to 33% in 2024.

小型面板業務方面，營收佔比從 2021 年的 26% 變為 2024 年的 33%。

So you can see that, continuously, we've seen an uptrend.

因此您可以看到，我們一直看到上升趨勢。

Going forward, we would actively utilize the existing infrastructure in terms of the -- that is production infrastructure that we have.

展望未來，我們將積極利用現有的基礎設施，即我們現有的生產基礎設施。

We will fully utilize them so that we can push for a more expanded shipment and further facilitate diversification of models, as well as improve our revenue mix and product mix, focusing on the new models, so that we may ensure a top line growth and secure bottom-line profitability.

我們將充分利用這些資源，推動出貨量進一步擴大，進一步促進機型多樣化，改善收入結構和產品結構，並專注於新機型，確保營收成長，確保底線獲利能力。

(spoken in Korean)

（韓文）

Within the market, there is a certain level of demand for different type of form factors.

在市場中，對不同類型的外形尺寸有一定程度的需求。

However, we are working under a continuous backdrop of macro uncertainty, and we expect there to be quite a bit of volatility when it comes to end-user demand.

然而，我們正處於持續的宏觀不確定性背景下，我們預期終端用戶需求會出現相當大的波動。

But LG Display has a firm foundation of offering foldable products on the notebook segment, which we are, at this point, mass producing and supplying to a global customer.

但 LG Display 在筆記型電腦領域擁有提供可折疊產品的堅實基礎，目前我們正在大規模生產並供應給全球客戶。

Based upon that know-how in the smartphone business as well, we will be fully mindful of the acceptance level in the market with regards to such unique and differentiated product, and also be mindful of the pace at which the market is growing and in line with which we will come up with a basic structure in terms of supplying of those differentiated products and accordingly expand on the business opportunity.

基於我們在智慧型手機領域的專業知識，我們將充分注意市場對這種獨特和差異化產品的接受程度，同時也注意市場的增長速度，並在此基礎上，我們將提出一個供應差異化產品的基本架構，並相應地擴大商業機會。

[Yoon Jeunghyun], UBS.

[尹正鉉]，瑞銀。

(spoken in Korean)

（韓文）

Thank you.

謝謝。

I just have a single question relating to your IT OLED business.

我只有一個問題與您的 IT OLED 業務有關。

We see that, compared to what was originally projected, the demand for your tablet -- the tablet OLED panels really underperformed the expectation.

我們發現，與最初的預測相比，平板電腦 OLED 面板的需求確實低於預期。

Compared to the actual shipment number that you've seen on a quarterly basis for 2024, what is your outlook for 2025?

與您看到的 2024 年季度實際出貨量相比，您對 2025 年的展望如何？

(spoken in Korean)

（韓文）

You are correct because of the sluggishness in the global IT market.

由於全球 IT 市場低迷，您的說法是正確的。

Compared to what we had planned and expected, the actual sales at tablet OLED was not up to par.

與我們的計劃和預期相比，平板OLED的實際銷售量並未達到預期。

So the current macro environment does not favor sales of high-end products, but because we have a distinct differentiation in terms of low power and the tandem technology, which is best fit for IT devices, we expect that in 2025, we will be able to drive year-over-year growth.

因此，目前的宏觀環境不利於高端產品的銷售，但由於我們在低功耗和最適合 IT 設備的串聯技術方面具有明顯的差異化，我們預計在 2025 年，我們將能夠推動同比增長。

(spoken in Korean)

（韓文）

Now, having said that, with regards to a specific target in terms of supply, as well as market share, these are some detailed information that we would not be able to share with you because they are closely related to customers.

現在，話雖如此，關於供應以及市場份額的具體目標，這些是一些詳細信息，我們無法與您分享，因為它們與客戶密切相關。

So I ask for your understanding.

因此我請求你們的理解。

Now, for your information, basically, under this backdrop where there is limited panel shipment for tablet OLED, the company is looking at various different ways that will help us further increase and maximize on the operational efficiency of the fab.

現在，供大家了解一下，基本上，在平板電腦 OLED 面板出貨量有限的背景下，公司正在尋找各種不同的方法來幫助我們進一步提高和最大化工廠的營運效率。

[Namgung Hyun], Shinhan Investment & Securities.

[Namgung Hyun]，新韓投資證券。

(spoken in Korean)

（韓文）

Thank you.

謝謝。

I am Namgung Hyun from Shinhan Securities.

我是新韓證券的南宮鉉。

I have one question relating to especially your large-panel OLED business.

我有一個問題，特別是與你們的大面板 OLED 業務有關。

Come second half of the year, a lot of the depreciation will come to an end.

到下半年，許多貶值現象將會結束。

I would like to understand as to what the company's strategies are in terms of your bottom line if you were to compare '24 versus '25?

如果要比較 24 年和 25 年，我想了解一下公司的底線策略是什麼？

(spoken in Korean)

（韓文）

Hello.

你好。

I am Kim Jongdeok.

我是金鐘德。

I'm Vice President of Large Display Planning and Management.

我是大型顯示器規劃和管理副總裁。

The TV market in general, we expect the uncertainties to persist in 2025 as was the case in 2024.

就整個電視市場而言，我們預計 2025 年的不確定性仍將持續存在，就像 2024 年的情況一樣。

The company, under such a constrain in terms of demand recovery, had focused its internal efforts on improving and enhancing the portability.

在需求復甦受到限制的情況下，該公司已將內部努力集中在改善和提高可移植性上。

In 2024, we had rigorous innovations based -- against the cost base and we've put in a lot of efforts to improve on the operational side, and such efforts will continue on in 2025.

2024年，我們根據成本基礎進行了嚴格的創新，並在營運方面做出了許多改進，這種努力將在2025年繼續下去。

(spoken in Korean)

（韓文）

As you've also correctly mentioned, yes, in the second half of the year, the Guangzhou fab is going to see its depreciation come to an end, which obviously works as a positive for us.

正如您正確提到的，是的，今年下半年，廣州工廠的折舊將結束，這對我們來說顯然是一個積極因素。

So going forward, we are going to continuously strengthen the cost competitiveness that we have based on which we will make sure that we operate our fab in the most optimal way possible.

因此，展望未來，我們將持續增強成本競爭力，確保以最優方式運作我們的晶圓廠。

And also going forward, we will further strengthen our cooperation with our strategic customers.

未來我們也將進一步加強與策略客戶的合作。

Also, expand on the sales by focusing on differentiated products such as the gaming monitors, and at the same time, continue to work on our cost base, all of which will help us bring about meaningful results in terms of the profitability.

此外，透過專注於遊戲顯示器等差異化產品來擴大銷售，同時繼續努力降低成本，所有這些都將幫助我們在獲利能力方面帶來有意義的成果。

Chung Wonsuk, iM Securities.

iM Securities 的 Chung Wonsuk。

(spoken in Korean)

（韓文）

Thank you for taking my question.

感謝您回答我的問題。

I am Chung Wonsuk from iM Securities.

我是 iM Securities 的 Chung Wonsuk。

I have two very simple questions.

我有兩個非常簡單的問題。

There is a lot of changes and uncertainties in the downstream market.

下游市場變化較大，不確定性因素較多。

So the market considers your conservative stance on investment as something being positive, especially with regards to the eighth generation IT OLED business.

因此，市場認為您在投資方面的保守立場是正面的，特別是對於第八代 IT OLED 業務。

I'd like to understand as to, what are some of your technologies and product segments that you will focus on to drive future growth?

我想了解一下，您將重點放在哪些技術和產品領域來推動未來的成長？

Second question is, you've mentioned depreciation.

第二個問題是，您提到了折舊。

I would like to understand as to -- aside from last year and this year, I would like to understand what the mid- to long-term depreciation trend would look like.

我想了解——除了去年和今年之外，我想了解中長期的貶值趨勢是什麼樣子。

(spoken in Korean)

（韓文）

This is the CFO responding to your question.

這是財務長來回答您的問題。

Our basic take of the macro environment is that there still persist external uncertainties and there is a high level of demand volatility, which have been ongoing for a prolonged period.

我們對宏觀環境的基本看法是，外部不確定性仍然存在，需求波動幅度較大，且這種狀況已經持續了較長時間。

And as you've -- and I take your question to talk about possible new investment, especially since you've mentioned the eighth generation IT OLED.

正如您所說——我接受您的問題，談論可能的新投資，特別是因為您提到了第八代 IT OLED。

So under this backdrop, we've repeatedly communicated that the top priority for our company for the time being is to focus on improving the business fundamentals, as well as enhancing the financials of the company and also securing a stable bottom-line profitability.

因此，在這種背景下，我們一再表示，目前公司首要任務是專注於改善業務基本面，增強公司財務狀況，確保穩定的底線獲利能力。

It is under that stance that we had kept to a quite conservative CapEx or investment approach.

正是在這種立場下，我們一直採取相當保守的資本支出或投資方式。

Now, when it comes to the eighth generation IT OLED, our belief is, our take of the market is, that, still, there is a high level of uncertainties.

現在，談到第八代 IT OLED，我們的信念是，我們對市場的看法是，仍然存在高度不確定性。

LG Display, while once we are able to identify clear market signal of an improvement on that backdrop and once we are able -- and once we gain a conviction that that is where the mode is going, and once we have that visibility, we are fully prepared in terms of the resources and the timing to be able to cater to and respond to that change.

LG Display，一旦我們能夠在這種背景下識別出明確的市場改善訊號，一旦我們能夠——一旦我們確信這就是模式的發展方向，一旦我們有了這種可見性，我們就會在資源和時間方面做好充分準備，以便能夠滿足和應對這一變化。

(spoken in Korean)

（韓文）

Regarding depreciation, if you look back to 2024, we've kept that figure at around KRW5.1 trillion or KRW5.2 trillion.

關於折舊，如果回顧 2024 年，我們將數字保持在 5.1 兆韓元或 5.2 兆韓元左右。

This -- if you look at this year, well, actually end of last year, some of the fab line for smartphones, pOLED, had ended in terms of its depreciation period.

如果你看看今年，實際上到去年年底，一些智慧型手機 pOLED 生產線的折舊期已經結束。

And in the second half of this year, for large OLED fab in Guangzhou, there will also be some depreciation that will come to a termination there as well.

而今年下半年，廣州大型OLED工廠也會出現一些折舊，折舊也將終止。

So as such, we're looking towards -- to around KRW4.3 trillion, so a decline to KRW0.3 trillion, that is, in depreciation.

因此，我們預計人民幣匯率將貶值至約 4.3 兆韓元，即下降至 0.3 兆韓元。

Kim Sowon, Kiwoom Securities.

Kim Sowon，Kiwoom 證券。

(spoken in Korean)

（韓文）

Thank you for taking my question.

感謝您回答我的問題。

I'm Kim Sowon from Kiwoom Securities.

我是 Kiwoom Securities 的 Kim Sowon。

My question relates to your auto business.

我的問題與你們的汽車業務有關。

As the CFO has mentioned during the presentation, the auto market, as well as the EV segment, has experienced quite a bit of slump.

正如財務長在演講中提到的，汽車市場以及電動車市場都經歷了相當大的低迷。

Would like to understand what LED display's assessment is of the overall auto market, also particularly regarding the auto display market, and what your projections are in terms of the market going forward, and what your objectives and strategies are for this business.

想了解LED顯示器對整體汽車市場的評價，特別是對汽車顯示器市場的評價，以及您對未來市場的預測以及您對這項業務的目標和策略是什麼。

(spoken in Korean)

（韓文）

Hello, I am Son Kihwan, I'm VP of Auto Marketing.

大家好，我是 Son Kihwan，汽車行銷副總裁。

In terms of the auto market, there are both negatives and some positives, negatives being a global economic slump, as well as sluggishness that we see in the EV market.

就汽車市場而言，既有負面因素，也有一些正面因素，負面因素包括全球經濟衰退，以及電動車市場的低迷。

But there are also positives, which are interest rate cuts, and more stronger CO2 emissions regulations that is adopted in Europe for 2025.

但也有積極的因素，例如利率降低，以及歐洲將在 2025 年採取更嚴格的二氧化碳排放法規。

So the mix of factors coexist.

因此，多種因素是並存的。

And in 2025, we think that the auto market, in general, will be about flat on a year-over-year basis at around 90 million cars.

我們認為，到 2025 年，汽車市場整體銷售將與去年持平，約 9,000 萬輛。

(spoken in Korean)

（韓文）

On the other hand, if you look at the auto display market, it continuously is showing a growth.

另一方面，如果你看看汽車顯示器市場，它正在持續呈現成長趨勢。

It's providing not just a driving or mileage-related information, but the display works to provide information, entertainment, and plays a key function in terms of safety as well.

它不僅提供與駕駛或里程相關的信息，而且顯示器還可以提供資訊、娛樂，並且在安全方面也發揮關鍵作用。

As such, we are seeing the adoption rate per vehicle increase and we think that number will surpass 200 million units of cars.

因此，我們看到每輛車的採用率正在增加，我們認為這個數字將超過 2 億輛。

As a result, OLED is expected to grow by more than 70% year over year, while LTPS LCD growing on a YoY basis more than 20% growth.

因此，預計 OLED 年成長超過 70%，而 LTPS LCD 年比成長超過 20%。

(spoken in Korean)

（韓文）

It's just to note that above 200 million is sales in the number of auto display units.

需要說明的是，2億以上是汽車顯示器銷售量的數量。

Now, so based upon the tandem OLED technology, we have a variety of product portfolio offerings, including tandem OLED-based pOLED, ATO, LTPS LCD, and oxide LCD.

現在，基於串聯 OLED 技術，我們提供多種產品組合，包括基於串聯 OLED 的 pOLED、ATO、LTPS LCD 和氧化物 LCD。

So we are able to cover the mainstream as well as the premium OEM customers.

因此我們能夠覆蓋主流以及高端 OEM 客戶。

We have the basis of -- customer base of major companies.

我們擁有主要公司的客戶群基礎。

And also, we operate our autoplay business that is well balanced between growth and profitability.

此外，我們經營的自動播放業務在成長和獲利之間實現了良好的平衡。

(spoken in Korean)

（韓文）

And our key competitiveness is the strong and close relationship that we have with our customer base who include the European premium companies, as well as Korea and Japanese incumbent auto powerhouses, as well as a global EV maker based in the US.

我們的核心競爭力在於與客戶群建立的牢固而密切的關係，我們的客戶包括歐洲高端公司、韓國和日本現有的汽車巨頭以及總部位於美國的全球電動車製造商。

Based upon that, vis-a-vis the OEM customers, we are looking to a growth rate of about 100%.

基於此，相較於 OEM 客戶，我們預期成長率約為 100%。

(spoken in Korean)

（韓文）

Supported by such differentiated technology offerings mid- to longer term, and variety of product portfolios, and cost savings, and very solid customer base, we will make sure that we maintain a market share number one position that is based off of the revenue.

透過中長期差異化技術產品、多樣化產品組合、成本節約和非常穩固的客戶群的支持，我們將確保保持基於收入的市場份額第一的位置。

And we'll continue to further strengthen our market leadership going forward.

我們將繼續進一步加強我們的市場領導地位。

(spoken in Korean)

（韓文）

This brings us to the end of the fourth-quarter 2024 earnings conference call of LG Display.

LG Display 2024 年第四季財報電話會議就此結束。

Thank you all for joining us this afternoon.

感謝大家今天下午加入我們。

And if you have any unanswered questions, please feel free to contact us at the IR team.

如果您有任何未解答的問題，請隨時聯絡 IR 團隊。

Thank you very much.

非常感謝。

Statements in English on this transcript were spoken by an interpreter present on the live call.

本記錄中的英文陳述是由現場翻譯說出的。

The interpreter was provided by the company sponsoring this event.

翻譯由贊助此活動的公司提供。