LG Display Co Ltd (LPL) 2025 Q1 法說會逐字稿

(spoken in Korean)

（韓文）

Good afternoon. I'm Brian Hoe in charge of IR team at LG Display. On behalf of the company, thank you all for joining us today in our first-quarter, 2025 earnings call.

午安.我是 Brian Hoe，負責 LG Display 的 IR 團隊。我代表公司感謝大家今天參加我們的 2025 年第一季財報電話會議。

Today I'm joined by our CFO Kim Sunghyun; Cho Seung Hyun, who's the VP of Business Management; Kim Kyu Dong, VP in charge of Finance; [Yi Ge-yong] in charge of Business Intelligence; Kim Jong-Duck, VP of Large Display Planning and Management and [Hoon Jeong] in charge of Medium Display Planning and Management; [Hek Sun-yong] in charge of Small Display Planning and Management and last but not least Son Ki-Hwan, VP of Auto marketing.

今天與我一起參加的是我們的財務長 Kim Sunghyun；業務管理副總裁 Cho Seung Hyun； Kim Kyu Dong，財務副總裁；【易格勇】 負責商業智慧；大型顯示器規劃與管理副總裁 Kim Jong-Duck 和負責中型顯示器規劃與管理的 [Hoon Jeong]；[Hek Sun-yong] 負責小型行銷計劃和管理行銷但同樣重要的行銷副總裁，最後一家行銷副總裁。

(spoken in Korean)

（韓文）

This call will be conducted in both Korean and English, and for more details, please refer to the provisional earnings that was just disclosed or the IR events section on the company's website.

本次電話會議將以韓語和英語進行，更多詳情請參閱剛剛揭露的臨時收益或公司網站上的 IR 活動部分。

(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, please note that today's results are based on consolidated IFRS standards prepared for your benefit and have yet to receive an audit by an outside auditor.

提醒一下，請注意，今天的結果是基於為您準備的合併 IFRS 標準，尚未接受外部審計師的審計。

(spoken in Korean)

（韓文）

Let me start by running through the business results for Q1 of 2025. Despite the usual seasonality seen during the first quarter across different product segments driven by OLED-centric business structural upgrade coupled with $1 FX impact adding to the positives, revenue reported a solid KRW6,065.3 billion, which is an increase of 15% on a year-over-year basis.

首先，我來介紹一下 2025 年第一季的業務成果。儘管第一季不同產品領域都出現了常見的季節性現象，受以 OLED 為中心的業務結構升級以及 1 美元外匯影響等積極因素的影響，但營收仍達到 6,0653 億韓元，同比增長 15%。

(spoken in Korean)

（韓文）

Coupled with increase in revenue share of our OLED products following business structural upgrades and stringent cost savings and operational efficiency activities continuing, despite it being a slow season and unlike typical trends seen in the past, operating profit reported KRW33.5 billion, sustaining the profit-making streak since last quarter.

加上業務結構升級、嚴格的成本節約和營運效率活動持續進行，我們的OLED產品收入份額有所增加，儘管這是一個淡季，並且與過去的典型趨勢不同，但營業利潤仍達到335億韓元，延續了上個季度以來的盈利勢頭。

This is an improvement of KRW509.2 billion on a year-over-year basis and KRW1,131.8 billion versus Q1 of 2023, which is quite noteworthy and that we were able to generate profit in the first quarter for the first time in eight years except for the special period during the COVID pandemic.

與去年同期相比增加了 5,092 億韓元，與 2023 年第一季相比增加了 1,1318 億韓元，這是非常值得注意的，除新冠疫情期間的特殊時期外，我們八年來首次在第一季度實現盈利。

(spoken in Korean)

（韓文）

Q1 EBITDA was KRW 1,231.3 billion with the EBITDA margin rate at 20%, which is at its highest since Q3 of 2021.

第一季EBITDA為1.2313兆韓元，EBITDA利潤率為20%，為2021年第三季以來的最高水準。

(spoken in Korean)

（韓文）

Next is area shipment and ASP per square meter. Area shipment in Q1 was down 19% Q-on-Q on the back of seasonality impact on mid to larger panels, while on a year over year basis, driven by panel shipment expansion for OLED TV and notebooks, there was 1% increase.

接下來是面積出貨量和每平方公尺的平均售價。由於中大型面板季節性影響，第一季出貨面積環比下降19％，而同比而言，受OLED電視和筆記型電腦面板出貨量擴大的推動，出貨面積增長了1％。

(spoken in Korean)

（韓文）

ASP per square meter recorded $804 which is down by 8% Q-on-Q.

每平方公尺平均售價為 804 美元，季減 8%。

Considering how prices tend to fluctuate during the first quarter, the decline was very much mitigated, thanks to robust OLED performance.

考慮到第一季價格波動趨勢，由於 OLED 的強勁表​​現，跌幅得到了很大緩解。

(spoken in Korean)

（韓文）

Moving on to product revenue mix. On subdued seasonality, mobile and others revenue dipped 8 percentage points Q-on-Q, reaching 34%, while revenue share of other product segment expanded on a relative basis.

繼續討論產品收入組合。受淡季因素影響，行動及其他業務收入較上季下降8個百分點，至34%，其他產品業務收入佔比則相對擴大。

(spoken in Korean)

（韓文）

IT segment revenue share was up 7 percentage points Q-on-Q, recording 35%, underpinned by increase in shipment of OLED panels for IT. TV segment revenue was flat Q-on-Q at 22%, while auto segment revenue mix increased 1 percentage point Q-on-Q, accounting for 9%.

IT部門營收份額較上季成長7個百分點，達到35%，這得益於IT領域OLED面板出貨量的增加。電視分部營收較去年同期持平，為 22%，而汽車分部營收則是較上季增加 1 個百分點，為 9%。

(spoken in Korean)

（韓文）

OLED mix out of total revenue increased 8 percentage points year-on-year, reaching 55%, as we continue to see expanded outcome from the company's transformation of OLED-centric business portfolio.

OLED 佔總營收的比重年增了 8 個百分點，達到 55%，我們繼續看到公司以 OLED 為中心的業務組合轉型成果不斷擴大。

(spoken in Korean)

（韓文）

Next is financial position and key metrics. Cash and cash equivalents, as stated in Q1 financial statement is KRW 982.3 billion. But if we were to include back cash held by China's Guangzhou LCD plant, which has been classified under assets held for sale in terms of actual cash and cash equivalent that the company owns, it will amount to KRW 2,372.8 billion.

接下來是財務狀況和關鍵指標。第一季財務報表中顯示的現金和現金等價物為 9,823 億韓元。但如果加上中國廣州液晶工廠持有的現金（該工廠已按公司擁有的實際現金和現金等價物歸類為持有待售資產），則總額將達到 2,3728 億韓元。

(spoken in Korean)

（韓文）

Next is Q2 guidance. Generally, we see area shipment to uptrend during the second quarter, but following discontinuation of LCD TV business, we expect second quarter area shipment to decline by around mid-20%. And conversely, ASP per square meter is expected to rise by around 20% level.

接下來是第二季指引。總體而言，我們預計第二季出貨面積將呈上升趨勢，但由於液晶電視業務停止，我們預計第二季出貨面積將下降約 20%。相反，每平方公尺的平均售價預計將上漲 20% 左右。

(spoken in Korean)

（韓文）

Next, I invite our CFO, Kim Sung-Hyun, to run through the highlights.

接下來，我邀請我們的財務長金成鉉來回顧亮點。

(spoken in Korean)

（韓文）

Good afternoon. I'm Kim Sung-Hyun, the CFO. Thank you all for joining our earnings call today.

午安.我是財務長金成鉉。感謝大家今天參加我們的收益電話會議。

(spoken in Korean)

（韓文）

Aside from uncertainties in the downstream market, various factors continue to emerge such as the shifts in the global trade environment. Although we face heightened level of volatilities in the business backdrop, we were able to drive meaningful results by way of sustaining the profit-making streak even during the first quarter, which is known to be a slow season.

除了下游市場的不確定性之外，全球貿易環境的變化等各種因素也不斷出現。儘管我們面臨的商業環境波動性有所加大，但即使在眾所周知的第一季（淡季），我們仍然能夠維持獲利勢頭，從而取得有意義的業績。

This is a result of our strategies that solidified our fundamentals, including the OLED-centric structural upgrades, rigorous cost innovations, which gradually drove better performance.

這是我們鞏固基本面策略的結果，包括以OLED為中心的結構升級、嚴格的成本創新，這些策略逐步推動了績效的提升。

(spoken in Korean)

（韓文）

Although external uncertainties may persist for the time being, we are beginning to see tangible results from the efforts that we've placed behind strengthening core competitiveness. And as such, we will continue to endeavor to achieve a turnaround in annual profit and further grow the size of that profit.

雖然目前外部不確定因素仍存在，但我們加強核心競爭力的努力已開始取得明顯成效。因此，我們將繼續努力實現年度利潤扭虧為盈，並進一步增加利潤規模。

(spoken in Korean)

（韓文）

Next, moving on to plans and strategies for each business domain, OLED for mobile has won greater trust from the customers and based on stronger production capabilities, we've been able to continuously expand our presence in the high-end market.

接下來談到各個業務領域的計劃和策略，行動OLED贏得了客戶的更多信任，並且基於更強大的生產能力，我們能夠不斷擴大在高端市場的份額。

Going forward, underpinned by competitive capabilities in technology and stable supply, we plan to enhance core competitiveness such as quality and cost to drive and sustain shipment expansion. Also, by responding nimbly to fast-changing market, we will prepare in a structured way to be ready for future technologies.

展望未來，我們計畫以技術優勢和穩定供應為支撐，提升品質、成本等核心競爭力，推動並維持出貨量擴張。此外，透過靈活應對快速變化的市場，我們將以結構化的方式做好準備，為未來的技術做好準備。

(spoken in Korean)

（韓文）

For the medium IT segment, we will be closely monitoring how the market moves and be agile in responding to changes in the downstream market. In IT OLED, there is clear and distinctive user value that tandem OLED offers with its outstanding performance and durability features, including low power, longer life and high luminance.

對於中型IT領域，我們將密切關注市場動向，並靈活應對下游市場的變化。在IT OLED中，串聯OLED憑藉其出色的性能和耐用性特點（包括低功耗、長壽命和高亮度）提供了明確而獨特的用戶價值。

Thus, we expect there to be year-over-year growth in shipment in 2025. And supported by technological leadership and stable mass production experience that's been accumulating over the years, we will further solidify our market position and effectively respond to changes in the environment.

因此，我們預計 2025 年出貨量將年增。並憑藉著多年累積的技術領先地位和穩定的量產經驗，進一步鞏固我們的市場地位，有效應對環境的變化。

(spoken in Korean)

（韓文）

In IT LCD segment, we will leverage differentiated high-end LCD technologies, including IPS Black and next-generation oxide to deliver optimized products that meet customer needs in each product segment. And by collaborating with global top-tier customers, who are spearheading the high-end segment of the market, we will respond to competition and drive results. Also, through rigorous cost-based innovation and operational efficiency efforts, we plan to sustain bottom line enhancement.

在IT LCD領域，我們將利用差異化的高階 LCD 技術，包括 IPS Black 和下一代氧化物，提供滿足每個產品領域客戶需求的最佳化產品。透過與引領高端市場的全球頂級客戶合作，我們將應對競爭並取得成果。此外，透過嚴格的基於成本的創新和營運效率努力，我們計劃維持底線提升。

(spoken in Korean)

（韓文）

In large panel business, following the closing of sale of Guangzhou LCD TV plant, revenue from large panel may start to decline starting in the second quarter of this year, as LCD TV revenue will no longer be captured. But through this strategic decision, we are able to place greater focus on OLED-centric structural upgrades.

大面板業務方面，隨著廣州液晶電視廠出售結束，今年第二季開始大面板營收可能開始下滑，因為不再有液晶電視營收。但透過這項策略決策，我們能夠更專注於以OLED為中心的結構升級。

(spoken in Korean)

（韓文）

For large OLED business, underpinned by distinctive value of OLED, we are solidifying our market presence in the high-end segment, as we maintain close collaboration with global customers in order to expand differentiated and premium product portfolio, including gaming monitors and Gen 4 OLED TVs, whose values such as low power and high luminance are even more improved, we expect positive performance hence will follow.

對於大型OLED業務，憑藉OLED獨特的價值，我們正在鞏固在高端領域的市場地位，同時我們與全球客戶保持密切合作，以擴大差異化和高端產品組合，包括遊戲顯示器和第四代OLED電視，其低功耗和高亮度等價值將進一步提升，我們預計將帶來積極的表現。

We will also continue to run efficient operational strategy and cost-cutting efforts to respond nimbly to changing demand and consequently drive mid- to longer-term volume growth, coupled with quality-driven growth accompanied with profitability enhancements.

我們也將繼續實行高效的營運策略和削減成本的努力，以靈活應對不斷變化的需求，從而推動中長期銷售成長，同時實現品質驅動的成長和獲利能力的提高。

(spoken in Korean)

（韓文）

Next is auto business. Although volatility can be spotted across the overall auto market, in-vehicle display adoption continues to expand and accelerated shift towards larger-sized panels works to the advantage of the demand for our core products, OLED and LTPS LCD.

接下來是汽車業務。儘管整個汽車市場都存在波動，但車載顯示器的採用率仍在不斷擴大，向大尺寸面板的加速轉變有利於我們核心產品 OLED 和 LTPS LCD 的需求。

For the auto business, we will fortify our position as global number one in terms of differentiated products and technology portfolio, which includes plastic OLED, ATO, high-end LTPS LCD. And coupled with sustainable growth, we plan to build up a stable earnings structure.

對於汽車業務，我們將鞏固我們在差異化產品和技術組合方面的全球第一地位，其中包括塑膠OLED，ATO，高端LTPS LCD。並且，隨著永續成長，我們計劃建立穩定的獲利結構。

(spoken in Korean)

（韓文）

Lastly, on investment activities. Investment last year amounted to KRW2.2 trillion and investment in 2025 is expected to be around mid- to low KRW2 trillion, in line with the communication made last quarter.

最後，關於投資活動。去年的投資額為 2.2 兆韓元，預計 2025 年的投資額將在 2 兆韓元中低位左右，與上個季度的溝通結果一致。

(spoken in Korean)

（韓文）

We maintain profit-focused business operations. And as we are mindful of changing external environment and ensuing fluctuations in demand, we adhere to the principle of keeping to a conservative stance when it comes to reviewing and running the investments.

我們保持以利潤為中心的業務運作。由於我們注意到外部環境的變化和隨之而來的需求波動，我們在審查和執行投資時堅持保持保守的原則。

We will fully maximize the use of our infrastructure that we currently own and be prudent in making CapEx spend and -- CapEx spend, and profitability will be of utmost priority when we make new investment decisions in the future. Thank you.

我們將充分利用我們目前擁有的基礎設施，並謹慎地進行資本支出和——資本支出，盈利能力將是未來我們做出新的投資決策時的首要考慮因素。謝謝。

(spoken in Korean)

（韓文）

This ends the key highlights for the first quarter of 2025 earnings. We will now begin the Q&A. Operator, please proceed.

2025 年第一季財報的關鍵亮點就此結束。我們現在開始問答環節。接線員，請繼續。

(spoken in Korean)

（韓文）

(Operator instructions) (spoken in Korean)

（操作員指令）（韓文）

Dongwon Kim, KB Securities.

KB證券的Dongwon Kim。

(spoken in Korean)

（韓文）

Thank you very much for taking my question. My first question, I would like to understand as to whether there are any changes that you are able to identify in the downstream market as well as in your customers with regards to the United States tariff that is quite hotly debated of recent. And also, would like to know as to how LG Display could respond to such development.

非常感謝您回答我的問題。我的第一個問題，我想了解一下，就最近備受爭議的美國關稅而言，您是否能夠發現下游市場以及客戶方面有什麼變化。另外，想知道 LG Display 將如何應對這種發展。

Second question is, as per the disclosure made on April the 11th, there was a disclosure on the sales proceeds with regards to the sale of LCD TV plant at Guangzhou. Is there any information that you could update us on?

第二個問題，4月11日的揭露中，有關於廣州液晶電視工廠出售的銷售收入的揭露。您能向我們更新一下資訊嗎？

(spoken in Korean)

（韓文）

This is the CFO. I will take your question. With regards to the imposition of the United States tariff, I understand that the direction going forward is towards imposing such tariffs.

這是首席財務官。我回答你的問題。關於美國徵收關稅的問題，我理解未來的方向是徵收這樣的關稅。

(spoken in Korean)

（韓文）

As you would appreciate, a tariff policy does not singly target the tariff per se. There are multiple issues that are relevant in terms of the relationship that a country has with another. And I believe that tariff policy is used as a means to deal with those multiple array of issues.

正如您所知，關稅政策並不單獨針對關稅本身。就一個國家與另一個國家的關係而言，存在著多個相關的問題。我認為關稅政策是解決這些多重問題的手段。

(spoken in Korean)

（韓文）

In a nutshell, what I mean to say that there is quite a bit of volatility that is embedded in the implementation of the tariff policy per se.

總而言之，我的意思是說，關稅政策本身在實施過程中存在相當大的波動性。

(spoken in Korean)

（韓文）

And as you would know, basically, it is rare that our product would directly be exported into the US market.

而且如您所知，我們的產品很少直接出口到美國市場。

(spoken in Korean)

（韓文）

As you know, the companies that are directly facing the tariff issue are the set makers, and we are hence very closely monitoring as how the set makers will determine their production base going forward and the strategies related to their production base.

眾所周知，直接面臨關稅問題的公司是電視機製造商，因此我們正密切關注電視機製造商如何確定未來的生產基地以及與生產基地相關的策略。

(spoken in Korean)

（韓文）

But as far as we know and based upon what we had researched as of today, we understand that there are no set makers at this point, who have changed their production base strategy.

但據我們所知，根據我們今天的研究，我們了解到目前還沒有任何電視機製造商改變其生產基地策略。

(spoken in Korean)

（韓文）

And so, what we know is that in terms of how the policy is actually going to play out into the future, which direction that it will take, it is still open to fluctuation. It has not yet been completely determined. So hence, there are certain uncertainties. That is why we are very closely observing and following what is happening with regards to the policy implementation, and we will come up with an appropriate countermeasure to deal with the developments that take place to make sure that we control the situation that we don't lose out on any business opportunity or that we don't -- so the developments don't undermine our profitability.

因此，我們知道的是，就政策未來將如何實施、將朝哪個方向發展而言，它仍然存在波動。目前還未完全確定。因此，存在一定的不確定性。這就是為什麼我們密切關注和追蹤政策實施的進展，並製定適當的對策來應對發生的事態發展，以確保我們控制局面，不會失去任何商業機會，也不會讓事態發展損害我們的盈利能力。

(spoken in Korean)

（韓文）

I believe one of the things that you'll be most interested in is whether there are any critical issue points across our SCM, our supply chain. I can tell you that there are no critical issues that at this point, we believe will exist. And also, in terms of any pressures on our pricing, we believe that there is no price pressures that will be exposed to because of this issue.

我相信您最感興趣的事情之一是我們的 SCM 即供應鏈中是否存在任何關鍵問題點。我可以告訴你們，我們認為目前不存在任何關鍵問題。此外，就我們的定價壓力而言，我們相信不會因為這個問題而面臨價格壓力。

(spoken in Korean)

（韓文）

Yes. And then moving on to the second question about the sale of the entity that we have, the LCD TV plant at Guangzhou. As per our disclosure that we have previously made, the amount of the sales proceed is the correct amount. There is almost no change to the figure that we had previously disclosed. And we've been informed that as of April 1, CSOT is running that plant at full capacity, meaning that the plant is currently running without any significant issues.

是的。然後我們再問第二個問題，關於我們現有的實體，即廣州液晶電視工廠的出售。根據我們之前披露的信息，銷售收益的金額是正確的。與我們之前披露的數字幾乎沒有變化。據我們了解，截至 4 月 1 日，華星光電該工廠已滿載運轉，這意味著該工廠目前運作正常，沒有出現任何重大問題。

And in terms of the sales proceed, we are being paid, meaning we are receiving that payment as per the payment schedule. And so, with regards to this sales transaction, I can tell you that more or less, the whole transaction is now closed. So in the first half of the year, we are looking forward to a meaningful amount of cash into the company.

就銷售收益而言，我們正在獲得付款，這意味著我們將按照付款計劃收到付款。因此，關於這筆銷售交易，我可以告訴你，整個交易現在或多或少已經結束。因此，我們期待今年上半年公司能有大量現金流入。

Second part, I'm sure you're also interested as to where we will be using this sales proceed. The company's thoughts are that we would not be concentrating the use into one specific area. So we will not be using the whole amount to one certain area. We are mindful of different aspects in terms of urgency of certain business and preparations for the future and the operation. Now based upon the assumption that all of those factors that there are no issues, we will be making the decision as to where we will invest that amount.

第二部分，我相信您也對我們將如何使用這筆銷售收益感興趣。公司的想法是，我們不會將用途集中到某個特定領域。所以我們不會將全部金額用於某個特定區域。我們從某項業務的迫切性以及未來和營運的準備等方面來考慮。現在，基於所有這些因素都沒有問題的假設，我們將決定將這筆錢投資到哪裡。

(spoken in Korean)

（韓文）

So let me backtrack on this and just give you a clear message on this. Basically, in terms of the cash flow requirements for our operations, we are able to fund that through the operational activities. So the sales proceeds that we will get the cash flow that will come in, we will use part of it in improving the financial standing. And also, the need to -- there may need to be some investments that we make to better prepare for the future and to strengthen our business capabilities in terms of the OLED business.

因此，讓我回顧一下這一點，並向你們傳達一個明確的訊息。基本上，就我們營運的現金流需求而言，我們能夠透過營運活動來提供資金。因此，我們將利用銷售收益產生的現金流，其中一部分用於改善財務狀況。此外，我們可能需要進行一些投資，以便更好地為未來做好準備，並加強我們在 OLED 業務方面的業務能力。

(spoken in Korean) Next question, please.

（韓語）請問下一個問題。

(spoken in Korean) [Woonho Kim], IBK Investment and Securities.

（韓文）[Woonho Kim]，IBK 投資證券。

(spoken in Korean)

（韓文）

Thank you. I would like to ask you three questions. Although the CFO gave us a quite good explanation on this, I just would like to follow up by asking the external uncertainties does not seem very good. So I would like to understand whether you have made some adjustment into your business plan outlook going forward and particularly in relation to your strategic customers.

謝謝。我想問您三個問題。儘管財務長對此給出了相當好的解釋，但我還是想跟進一下，外部的不確定性似乎不是很好。因此，我想了解您是否對未來的業務計劃前景做出了一些調整，特別是針對您的策略客戶。

Second question also regards to your strategic customers. There seems to be a heightened level of competition amongst the suppliers. We'd like to know whether that is impacting the amount of volume shipment that you're making to each of these customers or whether you are exposed continuously to any pressures -- downward pressures on ASP?

第二個問題也與您的策略客戶有關。供應商之間的競爭似乎愈發激烈。我們想知道這是否會影響您向每位客戶發貨的數量，或者您是否持續面臨任何壓力——平均售價下行壓力？

And then the third question is, in the second half, we always used to get new products. There is a rumor in the market that the new products will all be based on LTPO technology. If that is the case, what good news would that be for LG Display?

第三個問題是，在下半年，我們總是會推出新產品。市場有傳言稱，新產品將全部基於LTPO技術。如果是這樣，對於 LG Display 來說，這會是什麼好消息呢？

(spoken in Korean)

（韓文）

Hello. I'm in charge of Small Display. Responding to your question, yes, there is definitely uncertainties coming out of the tariff-related developments. But basically, the customers are at this point, diversifying their production base. And so, we expect that multiple companies will continue to pay close attention to how things go going forward.

你好。我負責小型展示。回答您的問題，是的，關稅相關的發展肯定存在不確定性。但基本上，客戶現在正在實現生產基礎的多樣化。因此，我們預計多家公司將繼續密切關注未來的發展。

In terms of the smartphone business that we engage in, we have very strong capabilities, and our strategic position is quite robust. So we are running our business as per our original business plan. But having said that, there may be downstream market volatility. So we are in close communication with our customer base, and we are fully prepared to nimbly respond to changes in the market.

就我們所從事的智慧型手機業務而言，我們擁有非常強大的能力，我們的戰略地位非常穩固。因此，我們按照最初的商業計劃開展業務。但話雖如此，下游市場仍可能出現波動。因此，我們與客戶群保持密切溝通，並已做好充分準備靈活應對市場變化。

(spoken in Korean)

（韓文）

And competition amongst the suppliers and vendors have always existed, but we were able to prove our differentiating points by -- through timely supply of the products and volume to our customers and also through making appropriate preparations for upcoming future technologies. And through continuous cost innovations and strengthening of quality, as well as other competitive factors, we were able to expand the volume that we supply. And through such commitments, we will effectively respond to competitive landscape.

供應商和廠商之間的競爭一直存在，但我們能夠透過及時向客戶供應產品和數量以及為即將到來的未來技術做好適當的準備來證明我們的差異化優勢。並且透過不斷的成本創新和品質的加強以及其他競爭因素，我們能夠擴大供應量。並且透過這樣的承諾，我們將有效地應對競爭格局。

(spoken in Korean)

（韓文）

So despite the fact that the first half of the year is usually the slow season, thanks to the trust that we have from our customers and our strategic positioning as well as our production capabilities, we expect there to be a year-over-year increase in volume. In the second half of the year, we will continue to see more expansion through the shipment volumes, especially coming out of the new models. So we expect to achieve a YoY performance that is on par with what we've seen in the previous year.

因此，儘管上半年通常是淡季，但由於客戶的信任、我們的策略定位以及生產能力，我們預計銷售量將同比增長。下半年，我們將繼續看到出貨量進一步擴大，尤其是新車型的出貨量。因此，我們預計同比業績將與去年持平。

(spoken in Korean) Next question, please.

（韓語）請問下一個問題。

(spoken in Korean) Won-Seok Chung, IM Securities.

（韓文演講）IM Securities 的 Won-Seok Chung。

(spoken in Korean)

（韓文）

Thank you for taking my question. I just have two very simple questions. Since you've discontinued your LCD TV business, for your large business, I take it that you have to focus on your OLED business. But in light of the uncertainties in the demand and the fact that the high-end market segment is currently stagnant, I would like to understand what strategies you have in place? Second question is that on top of the tariffs as well as uncertainties in the market, I would like to know as to whether that drove any changes to your overall shipment plan.

感謝您回答我的問題。我只有兩個非常簡單的問題。既然您已經停止了液晶電視業務，為了您的大業務，我認為您必須專注於OLED業務。但鑑於需求的不確定性以及高端市場目前停滯不前的事實，我想了解您採取了哪些策略？第二個問題是，除了關稅以及市場不確定性之外，我想知道這是否會導致您的整體裝運計劃發生變化。

(spoken in Korean)

（韓文）

My name is [Kim Yong Duck]. I'm VP in charge of Large Display. I will take your first question on the profitability side. Basically, I can divide that into two pillars. We operate our business under a profit-centric operational stance, and it's made up of two pillars. First, in terms of responding to what the customers need, we are focusing and providing a differentiated product portfolio that has distinct product specifications as well as sizes.

我的名字是[金永德]我是負責大型顯示器的副總裁。我將回答您關於盈利能力方面的第一個問題。基本上，我可以將其分為兩大支柱。我們以利潤為中心的經營理念來經營我們的業務，它由兩大支柱組成。首先，在回應客戶需求方面，我們專注於提供具有不同產品規格和尺寸的差異化產品組合。

So by strengthening the portfolio, we will be responding to the need. And the second pillar has to do with an ever-stringent cost savings effort. So through these two approaches, we are committed to stay in line with the plan towards the objective of enhancing the business performance.

因此，透過加強投資組合，我們將滿足需求。第二個支柱與不斷嚴格的成本節約措施有關。因此，透過這兩種方法，我們致力於按照計畫實現提高業務績效的目標。

(spoken in Korean)

（韓文）

And the second part of the question, yes, we've decided to discontinue the LCD business, which means that in our large panel OLED business, we will focus our efforts to further enhance and notch up that business, and things are going as planned. So looking overall at our large panel OLED business, because of the existing uncertainties in the market, we have linked the -- we have linked actual demand of the market on to the capacity, the operation -- the operating capacity of our business.

問題的第二部分，是的，我們決定停止 LCD 業務，這意味著在我們的大型面板 OLED 業務中，我們將集中精力進一步加強和提升該業務，事情正在按計劃進行。因此，從整體來看我們的大面板 OLED 業務，由於市場中存在的不確定性，我們已經將市場的實際需求與我們業務的產能、營運聯繫起來。

And also, we've taken cost-cutting activities to the extreme. That's the second part. And third, we've strengthened our cooperation with the global customer base. And fourth, we have expanded and differentiated LG Display's very distinctive products such as OLED monitors. So through these different efforts, we are really strengthening our earnings structure. So from a mid- to longer-term perspective, we're seeking to drive growth in terms of volume, which will bring us a steady performance.

此外，我們也將削減成本的活動推向了極致。這是第二部分。第三，我們加強了與全球客戶的合作。第四，我們擴大並區分了 LG Display 非常獨特的產品，例如 OLED 顯示器。因此，透過這些不同的努力，我們確實加強了我們的獲利結構。因此，從中長期來看，我們正在尋求推動銷售的成長，這將為我們帶來穩定的業績。

(spoken in Korean)

（韓文）

So OLED is actually at the top of the product lineup at the top-tier customers and OLED itself has a top-tier positioning in the market. We do expect that there will continue to be competition against LCD but underpinned by the very distinctive value that only OLED can offer, we are committed to strengthening its positioning in the high-end segment of the market.

因此，OLED 實際上是頂級客戶產品線中的頂級產品，而 OLED 本身在市場上也佔據頂級地位。我們確實預計與 LCD 的競爭將持續，但憑藉只有 OLED 才能提供的獨特價值，我們致力於加強其在高端市場中的地位。

(spoken in Korean)

（韓文）

Regarding your question on tariff, our CFO has provided you with the overview of the high-level explanation regarding tariff. But with respect to the changes in the tariff policy that hinges on the TV set, there's been some mixed impact. But I can tell you that for now, in terms of the large panel business, the TV set business, the impact at this point, we believe, is quite limited.

關於您關於關稅的問題，我們的財務長已經為您提供了有關關稅的高層解釋概述。但就電視機關稅政策的變化而言，其影響有好有壞。但我可以告訴你，就目前而言，就大面板業務、電視機業務而言，我們認為目前的影響相當有限。

But going forward, subject to how the tariff policy is actually going to play out into the future, the entities that will directly be impacted are the set makers. So, we are committed to doing our best to make sure that we secure flexibility in terms of supply against our customers.

但展望未來，取決於關稅政策的實際實施情況，直接受到影響的實體是電視機製造商。因此，我們致力於盡最大努力確保在向客戶提供供應方面的靈活性。

(spoken in Korean) We'll take the next question.

（韓文）我們來回答下一個問題。

(spoken in Korean) [Sowon Kim], Kiwoom Securities.

（韓文）[Sowon Kim]，Kiwoom Securities。

(spoken in Korean)

（韓文）

I will ask two questions on your IT panel business. The demand for IT panels and the uncertainties is continuing and persisting. So what is your outlook for the IT product demand by each different product segment for year 2025? Second question is not just LG Display, but your peers have all been able to up their technology standards. So the standard itself has become very elevated.

我將就您的 IT 面板業務詢問兩個問題。IT面板的需求和不確定性仍在持續。那麼，您對 2025 年各不同產品領域的 IT 產品需求有何展望？第二個問題是，不只是 LG Display，你們的同行都能夠提高他們的技術標準。因此標準本身已經變得非常高。

So how do you differentiate yourself in the market? How can you continue to sustain your competitiveness in the high-end segment of the IT market? And also, do you have -- with regards to the IT LCD efficiency planning, what are some of the ways for you to improve on your profitability as you go forward?

那麼，您如何在市場中脫穎而出呢？如何才能持續保持在高階IT市場的競爭力？另外，關於 IT LCD 效率規劃，您有哪些方法可以提高未來的獲利能力？

(spoken in Korean)

（韓文）

I am [Ahn Yu Shin]. I'm in charge of Medium Display. Responding to your question, originally, we were looking forward to some positive impact coming from the replacement demand and the discontinuation of Window 10 having and triggering the market demand in the high end as well as the B2B market. But at this point, with the talk of the reciprocal tariff that will be imposed by the US and with the prolongation of the macroeconomic uncertainties, we do need to closely and continuously monitor how the demand dynamic changes as we go into the future.

我是[安宥信]。我負責中型展示。回答您的問題，最初，我們期待更換需求和 Windows 10 的停產能夠帶來一些正面影響，並引發高端市場以及 B2B 市場的需求。但目前，隨著美國將徵收互惠關稅的討論以及宏觀經濟不確定性的延長，我們確實需要密切、持續地監控未來需求動態如何變化。

So depending on the decision on the imposition of the tariff by different countries and the extent of that tariff, the actual impact could surface in quite differently depending on which product segment you're talking about and depending on different geographies. So there are potential for continuous volatility to emerge in the downstream market. So we are committed to very closely communicating with our customers in regards to the market situation and respond accordingly.

因此，根據不同國家徵收關稅的決定及其幅度，實際影響可能會因所討論的產品領域和不同地區而大不相同。因此下游市場有可能出現持續波動。因此，我們致力於與客戶密切溝通市場狀況並做出相應反應。

(spoken in Korean)

（韓文）

So we have technological edge in terms of high-end LCD technology that includes the IPS Black and next-generation oxide technology as well as in tandem OLED that's known for high luminance, low power and long life. And underpinned by the technological strength, we are able to offer the most optimized portfolio that best fits the needs of the customer for each of the product segments, and that is the way in which we respond to competition.

因此，我們在高階 LCD 技術方面擁有技術優勢，包括 IPS Black 和新一代氧化物技術以及以高亮度、低功耗和長壽命著稱的串聯 OLED。而憑藉著技術實力，我們能夠針對每個產品領域提供最符合客戶需求的最佳化產品組合，這也是我們應對競爭的方式。

(spoken in Korean)

（韓文）

Now going forward, our forecast is that there will be growth from the OLED monitor market on top of the AI PC growth from a mid- to longer-term perspective. And hence, we believe that our capabilities in the mid- to large OLED, especially on high picture quality and low-power solutions, our competitiveness will be further solidified, as we move into the future.

展望未來，我們預測從中長期來看，OLED 顯示器市場將隨著 AI PC 的成長而成長。因此，我們相信，隨著我們邁向未來，我們在中大型OLED方面的能力，特別是在高畫質和低功耗解決方案方面的能力，我們的競爭力將進一步鞏固。

So by bringing such differentiated technologies to bear on the products that we offered, we will be able to continuously lead the market as we have a very solid base of Tier 1 customer base, and that really works to our advantage.

因此，透過將這種差異化技術應用到我們提供的產品中，我們將能夠持續引領市場，因為我們擁有非常穩固的一級客戶群，這對我們確實有利。

(spoken in Korean)

（韓文）

So across the entire IT segment, the level of competition between and amongst the panel providers is becoming more fierce. However, through very stringent cost innovation as well as operational -- achievement of operational efficiencies and really focusing on our top-tier customer base and through strengthening the partnership that we have, we will continuously and gradually notch up our profitability.

因此，在整個 IT 領域，面板供應商之間的競爭越來越激烈。然而，透過非常嚴格的成本創新以及營運——實現營運效率並真正關注我們的頂級客戶群，並透過加強我們現有的合作夥伴關係，我們將不斷逐步提高盈利能力。

(spoken in Korean) We will take the final question before we close.

（韓語）在結束之前，我們將回答最後一個問題。

(spoken in Korean) [Zhang Hyunyon], UBS.

（韓文）[Zhang Hyunyon]，瑞銀。

(spoken in Korean)

（韓文）

Thank you for taking my question. My question relates to your auto business. Can you provide us some color on what your take is for your short-term and mid- to longer-term outlook for your auto business? And also, what's the forecast for LG Display's auto business growth and profitability going forward?

感謝您回答我的問題。我的問題與您的汽車業務有關。您能否向我們詳細介紹一下您對汽車業務的短期和中長期前景的看法？另外，LG Display 未來汽車業務的成長和獲利能力預測如何？

(spoken in Korean)

（韓文）

I am, [Son Ki Hwan], I'm VP in charge of Auto Marketing. If you look at the greater auto market, we are in the gradual recovery phase, but there are certain issues that have newly emerged such as the tariff issue as well as the slowing of the EV growth and the OEMs in Europe and US have been experiencing quite a bit of stagnation. Because of all these factors, this year, we expect that it will be quite difficult for the overall auto market to report more than 90 million units of vehicles.

我是 [Son Ki Hwan]，負責汽車行銷的副總裁。如果你看一下更大的汽車市場，我們正處於逐步復甦階段，但也出現了一些新問題，例如關稅問題以及電動車成長放緩，歐洲和美國的原始設備製造商經歷了相當多的停滯。綜合這些因素，我們預計今年整個汽車市場要突破9,000萬輛還是比較困難的。

But having said that, fortunately, if you look at in-vehicle display, regardless of whether a car is an EV or IC, we see on a per vehicle basis, the percent of adoption of such displays is increasing, and we see accelerated speed of shift to a larger panels. And so, we are looking forward to growth -- continuous growth this year of LTPS LCD and OLED market.

但話雖如此，幸運的是，如果你看一下車載顯示器，無論汽車是電動車還是集成電路，我們都會看到，按每輛車計算，採用這種顯示器的百分比正在增加，而且我們看到向更大面板轉變的速度正在加快。因此，我們期待今年 LTPS LCD 和 OLED 市場持續成長。

(spoken in Korean)

（韓文）

So the auto business since 2020 for the past four years, it posted a growth on a CAGR basis of around 10% over the past four years. So from a mid- to longer-term perspective going forward, at least for three years to come, we're expecting a steady growth trend. And compared to our peers and competitors, we were successful in transitioning to LTPS LCD and supported by large-scale OLED orders, we hence expect and project there to be steady growth.

因此，自 2020 年以來，汽車業務在過去四年中實現了約 10% 的複合年增長率。因此，從中長期來看，至少在未來三年內，我們預期會出現穩定的成長趨勢。與同行和競爭對手相比，我們成功轉型至 LTPS LCD，並得到大規模 OLED 訂單的支持，因此我們預計並預測將實現穩定成長。

(spoken in Korean)

（韓文）

In particular, for our OLED display product, we started with customers in Europe and US, and now we were able to expand to customer base in Korea and Japan as well. So going forward, in three years' time, we are expecting to triple the revenue compared to where we are today.

特別是對於我們的 OLED 顯示器產品，我們從歐洲和美國的客戶開始，現在我們也能夠擴展到韓國和日本的客戶群。因此，展望未來，我們預計三年後的收入將比現在增加兩倍。

And going forward, we will actively leverage new technologies such as pillar-to-pillar display, switchable privacy and tandem, which are OLED and LCD differentiated technologies that we have supported by these new techs, we will further strengthen our top line revenue, as well as our bottom line and solidify our leadership in the market.

展望未來，我們將積極利用柱對柱顯示、可切換隱私和串聯等新技術，這些新技術是我們透過這些新技術支援的 OLED 和 LCD 差異化技術，我們將進一步加強我們的營業收入和利潤，鞏固我們在市場上的領導地位。

(spoken in Korean)

（韓文）

This brings us to the end of the earnings call for first quarter of 2025. If you have any unanswered questions or additional questions, please feel free to contact us at the IR team. Thank you very much.

2025 年第一季的收益電話會議到此結束。如果您有任何未解答的問題或其他問題，請隨時聯絡 IR 團隊。非常感謝。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助此活動的公司提供。