LG Display Co Ltd (LPL) 2025 Q2 法說會逐字稿

(spoken in foreign language)

（用外語說）

Good afternoon. I am Brian Heo, Leader of the IR team at LG Display. Thank you for attending LG Display 2025 second quarter earnings conference call. Joining us today are CFO, Mr. Sung-Hyun Kim; VP of Business Management, Mr. [Soon Hyun Cheol]; VP of Finance, Mr. Kyu Dong Kim; Leader of the Business Intelligence Team, Mr. Woo-suk Ha; VP of Large Display Planning and Management, Mr. Chun Deok Kim; Head of Medium Display Planning Management, Mr. Yoo-shin Ahn; Head of Small Display Planning and Management, [Mr. Seung-ryong Paik]; and Head of Auto Planning and Management Department, Mr. Moon Tae Hwang.

午安.我是 LG Display IR 團隊負責人 Brian Heo。感謝您參加 LG Display 2025 第二季財報電話會議。今天參加會議的有首席財務官 Sung-Hyun Kim 先生、業務管理副總裁 Soon Hyun Cheol 先生、財務副總裁 Kyu Dong Kim 先生、商業智慧團隊負責人 Woo-suk Ha 先生、大型顯示器規劃和管理副總裁 Chun Deok Kim 先生、中型顯示器規劃管理主管 Yoo-shin Ahn 先生、小型規劃顯示器和管理主管 Seung-ongo-shin Ahn 先生、小型規劃顯示器和管理主管和版本。

Today's conference call will be conducted in Korean and English. Please refer to the disclosed preliminary earnings release or the Investor Relations section of our website for a detailed performance data. Please read the disclaimer before the earnings presentation. Today's earnings presentation is based on consolidated financial figures prepared in accordance with International Financial Reporting Standards, IFRS. Please note that the numbers are unaudited and are provided for the convenience of our investors.

今天的電話會議將以韓語和英語進行。請參閱已揭露的初步收益報告或我們網站的投資者關係部分，以了解詳細的業績數據。請在收益報告之前閱讀免責聲明。今天的收益報告是基於按照國際財務報告準則 (IFRS) 編制的合併財務數據。請注意，這些數字未經審計，只是為了方便我們的投資者而提供的。

Let me begin by presenting our business performance for Q2 of 2025. In Q2, shipments of products decreased due to the seasonal off-peak period for smartphones and the termination of the LCD TV business. In addition, the Korean won US dollar exchange rate turned stronger and, as a result, sales declined by 8% Q-o-Q to KRW5,587 trillion. This represents a 17% decline Y-o-Y, which is due to the base effect of increased initial shipments following the new mass production of tablet OLED panels last year and the discontinuation of the LCD TV business in Q2 of this year.

首先，我介紹一下我們 2025 年第二季的業務表現。第二季度，受智慧型手機淡季和液晶電視業務終止的影響，產品出貨量下降。此外，韓元兌美元匯率走強，導致銷售額季減 8% 至 5,587 兆韓元。這一數字年減了 17%，這是由於去年平板電腦 OLED 面板新量產後初始出貨量增加以及今年第二季度液晶電視業務停止帶來的基數效應。

Operating profit also posted a loss of KRW116 billion, reflecting both the negative impact of the stronger Korean won exchange rate and business factors, such as the end of the LCD TV business and seasonally weak demand for mobile panels. For the first half of the year, cumulative sales amounted to KRW11,652.3 trillion and operating loss to KRW82.6 billion. Despite the 3% decline in sales Y-o-Y, operating loss improved by KRW480.5 billion. This improvement was the result of ongoing efforts to upgrade our business structure to the OLED-centered business, reduce costs and enhance operational efficiency, which are now producing tangible results for the improvement of the company's fundamentals.

營業利潤也虧損1,160億韓元，既反映了韓元匯率走強的負面影響，也反映了液晶電視業務結束和行動面板季節性需求疲軟等商業因素。上半年累計銷售額達11652.3兆韓元，營業虧損達826億韓元。儘管銷售額年減 3%，但營業虧損仍改善了 4,805 億韓元。這項改善是我們不斷努力將業務結構升級為以OLED為中心的業務、降低成本和提高營運效率的結果，這些努力目前已為公司基本面的改善產生了切實的成果。

Net income turned positive to KRW890.8 billion, driven by improved FX gains and other nonoperating income, including the gain on the sale of our stake in the Guangzhou LCD plant. EBITDA for Q2 stood at KRW1,539 trillion with an EBITDA margin of approximately 19%, maintaining a mid-teen margin for the seventh consecutive quarter.

淨收入轉為正值 8,908 億韓元，這得益於外匯收益和其他非營業收入的增加，包括出售我們在廣州 LCD 工廠的股份所獲得的收益。第二季的 EBITDA 為 1,539 兆韓元，EBITDA 利潤率約為 19%，連續第七個季度維持中等水準的利潤率。

Next are the trends of shipment area and ASP per square meter. Q2 shipment area decreased by 26% Q-o-Q due to the termination of the LCD TV business. This aligns with our guidance of around mid-20% decrease in shipment area. As for the ASP per square meter, the figure increased by 32% Q-o-Q to $1,056. This was due to the exit of the LCD TV business, which had the lowest ASP per area, and changes in shipment within some small to medium panel products compared to the original plan.

接下來是出貨面積和每平方公尺平均售價的趨勢。由於液晶電視業務的終止，第二季出貨面積較上季下降26%。這與我們預計的出貨量減少約 20% 左右的預期一致。至於每平方公尺的平均售價，季增 32%，達到 1,056 美元。這是由於退出單位面積平均售價最低的液晶電視業務，以及部分中小型面板產品的出貨量與原計劃相比發生變化。

With the transition to an OLED-focused business structure, we expect to sustain significantly higher ASP levels compared to the past.

隨著以 OLED 為中心的業務結構的轉變，我們預計與過去相比，ASP 水準將維持顯著更高的水準。

Moving on to revenue breakdown by product category. TV revenue accounted for 20% of total sales, down 2-percentage-points Q-o-Q. However, the decline was limited as OLED TV panel shipments increased Q-o-Q, offsetting much of the impact on the LCD TV business exit. Revenue from mobile and others declined by 6-percentage-points Q-o-Q to 28% due to seasonally weak panel shipments.

繼續按產品類別細分收入。電視收入佔總銷售額的20%，季減2個百分點。不過，由於OLED電視面板出貨量較上月增加，降幅有限，抵銷了液晶電視業務退出帶來的大部分影響。由於季節性面板出貨量疲軟，行動及其他業務的營收季減 6 個百分點至 28%。

The IT segment recorded 42%, reflecting a relatively notable increase driven by higher LCD IT panel shipments compared to last quarter and a reduced share of other product categories. The automotive segment grew 1-percentage-point Q-o-Q to 10%. The only portion of total revenue increased by 1-percentage-point Q-o-Q and 3-percentage-points Y-o-Y, reaching 56%, continuing its steady growth.

IT部門的出貨量成長了42%，由於液晶IT面板出貨量較上一季增加以及其他產品類別份額減少，推動了相對顯著的成長。汽車領域較上季成長 1 個百分點，達到 10%。唯一佔比上季增加1個百分點，較去年同期成長3個百分點，達到56%，持續維持穩定成長。

Let's now look at our financial status and key indicators. Cash and cash equivalents at the end of Q2 amounted to KRW1,666 trillion. With the sale of the Guangzhou plant and the end of the LCD TV business, essential operating capital has decreased compared to the past, and our cash level has been managed accordingly to improve efficiency. The debt ratio stood at 268% and net debt-to-equity ratio at 155%, representing significant decreases of 40-percentage-points and 19-percentage-points Q-o-Q, respectively.

現在讓我們來看看我們的財務狀況和關鍵指標。第二季末的現金及現金等價物總額為1,666兆韓元。隨著廣州工廠的出售和液晶電視業務的結束，必要的營運資金較過去相比有所減少，我們對現金水準進行了相應的管理，以提高效率。負債比率為268%，淨負債權益比率為155%，較上季分別大幅下降40個百分點及19個百分點。

Let me now provide guidance for Q3. For the third quarter, shipment area is expected to decline by a low to mid-single-digit percentage due to product mix changes and mid- to large panel products and a reduction in the share of low-margin medium panel products. On the other hand, ASP per area is forecast to increase to mid-20% levels, driven by seasonal increase of shipments in small- and medium-sized OLED products.

現在讓我為第三季提供指導。第三季度，由於產品結構變化、中大型面板產品以及低利潤率中型面板產品份額的減少，預計出貨面積將出現低至中等個位數百分比的下降。另一方面，受中小型 OLED 產品出貨量季節性成長的推動，預計每面積平均售價將上漲至 20% 左右。

Now we will hear from our CFO, Mr. Sung-Hyun Kim.

現在我們來聽聽我們的財務長 Sung-Hyun Kim 先生的演講。

(spoken in foreign language)

（用外語說）

Good afternoon. This is Sung-Hyun Kim, the CFO. Thank you all for joining today's conference call. Following the Q2 results and our outlook for the second half, I would like to further elaborate on our financial performance. Q2 is traditionally an off-season and our performance was affected by lower utilization rates of mobile panel production lines and FX volatility.

午安.我是財務長 Sung-Hyun Kim。感謝大家參加今天的電話會議。繼第二季業績和下半年展望之後，我想進一步闡述我們的財務表現。第二季度傳統上是淡季，我們的業績受到行動面板生產線利用率較低和外匯波動的影響。

However, as has been previously mentioned, the OLED portion of our total sales continue to grow and ASP per square meter increased significantly, marking structural achievements in our business model. . The approximately KRW500 billion improvement in operating results for the first half compared to last year was driven by an upgraded business structure centered on OLED and high-end LCD products, continuous cost innovation and operational efficiency. We expect this performance improvement to continue in the second half.

然而，如同前面提到的，我們總銷售額中的 OLED 部分持續成長，每平方公尺的平均銷售價格大幅上漲，標誌著我們商業模式取得了結構性成就。。上半年營運業績較去年同期成長約5,000億韓元，這得益於以OLED和高階LCD產品為中心的業務結構升級、持續的成本創新和營運效率。我們預計這種業績改善將在下半年持續下去。

Despite ongoing macroeconomic uncertainties and the volatility in the trade environment, we remain firmly committed to our strategic initiatives: business restructuring around OLED, technological differentiation, product quality enhancement and cost innovation, which will strengthen our core competitiveness and translate into performance outcomes. In particular, we expect a steep rebound in performance in the second half with broader profit improvement compared to first half driven by performance expansion across both large and small and medium OLED panel businesses.

儘管宏觀經濟不確定性持續存在，貿易環境波動較大，但我們依然堅定不移地堅持戰略舉措：圍繞OLED進行業務重組、技術差異化、產品品質提升和成本創新，這將增強我們的核心競爭力並轉化為業績成果。特別是，我們預計下半年業績將大幅反彈，在大型和中小型OLED面板業務業績擴張的推動下，利潤將比上半年有更廣泛的改善。

In addition to the business performance, our efforts to improve the financial structure such as early loan repayments and debt reductions are progressing ahead of plan. We already achieved our total debt reduction target of KRW13 trillion level early, as set out in our corporate value plan at the end of last year. We will continue to improve financial structure through cash flow enhancement with various actions such as the sale of the Guangzhou LCD TV plant and expansion of second half operating profit while further reducing debt by the year-end.

除了經營業績以外，提前償還貸款、削減債務等改善財務結構的努力也在按計畫推進。我們已經提前實現了去年年底企業價值計畫中提出的13兆韓元的總債務削減目標。我們將透過出售廣州液晶電視工廠、擴大下半年營業利潤等各種措施增強現金流，持續改善財務結構，同時在年底前進一步減少債務。

Let me now walk you through the plans and strategies for each business segment. In the small panel mobile segment, our panel shipments are growing each year, backed by our enhanced production capabilities with strong performance particularly in the high-end segment. Going forward, we will continue to strengthen our competitive edge and quality and costs based on differentiated technology to further drive business performance.

現在讓我向您介紹每個業務部門的計劃和策略。在小型面板移動領域，我們的面板出貨量每年都在成長，這得益於我們增強的生產能力，尤其是在高端領域表現強勁。未來，我們將持續加強競爭優勢，以差異化技術為基礎，降低品質和成本，進一步推動營運績效。

In the medium panel IT OLED segment, we will address new high-end market demand with tandem OLEDs, known for its low power consumption, long life span and high illuminance. We'll also plan to systematically prepare for a broader transition to OLED across IT devices. With our accumulated technological leadership and stable mass production capabilities, we will continue to strengthen our market leadership and respond proactively to a changing environment.

在中面板IT OLED領域，我們將利用以低功耗、長壽命和高照度著稱的串聯OLED來滿足新的高階市場需求。我們還將計劃系統地為 IT 設備向 OLED 的更廣泛過渡做好準備。憑藉我們累積的技術領先地位和穩定的量產能力，我們將繼續加強市場領導地位，並積極應對不斷變化的環境。

In the IT LCD segment, we plan to strengthen partnerships with global top-tier market-leading customers in the B2B and high-end sectors based on differentiated high-end LCD technologies. Particularly, we will continue improving profitability by reducing the proportion of low-margin products and engaging in structural cost innovation.

在IT LCD領域，我們計劃以差異化的高端 LCD 技術為基礎，加強與 B2B 和高端領域的全球頂級市場領先客戶的合作夥伴關係。具體來說，我們將透過降低低利潤產品的比例和進行結構性成本創新來持續提高獲利能力。

In the large panel segment, although the LCD TV business has ended, OLED TV is widely recognized for its competitive differentiation, which we expect will continue to drive business performance. With the gaming monitor market also expanding, the mid- to long-term outlook is positive. We will solidify our leadership in the premium market with a diverse OLED panel line up with differentiated values and, at the same time, strengthen our profit structure through cost improvements and flexible, efficient operation strategies.

在大面板領域，雖然液晶電視業務已經結束，但OLED電視因其競爭差異化而受到廣泛認可，我們預計這將繼續推動業務表現。隨著遊戲顯示器市場的不斷擴大，中長期前景看好。我們將透過具有差異化價值的多樣化OLED面板產品線來鞏固我們在高端市場的領導地位，同時透過成本改進和靈活高效的營運策略來加強我們的利潤結構。

Lastly, in the automotive segment, the increasing adoption and larger sizes of in-vehicle displays are positive indicators for our future market growth. While competition is expected, we will deliver differentiated customer value through our solid market position, innovative technologies and product competitiveness, including ultra large size, high resolution, reliability, durability, low power and diverse form factors.

最後，在汽車領域，車載顯示器的普及率不斷提高且尺寸越來越大，這對我們未來的市場成長來說是積極的指標。雖然競爭是不可避免的，但我們將透過穩固的市場地位、創新的技術和產品競爭力，提供差異化的客戶價值，包括超大尺寸、高解析度、可靠性、耐用性、低功耗和多樣化的外形尺寸。

Finally, I would like to speak on our investment activities. We are maintaining our CapEx strategy centered on future readiness and business structure enhancement. In June, we announced an investment for new OLED technology preparation, but we continue our efforts to improve investment efficiency. As such, our CapEx for this year is expected to be in the low KRW2 trillion range, similar to last year. Going forward, we will maximize the use of our existing infrastructure and make careful investment decisions.

最後我想談談我們的投資活動。我們將繼續堅持以未來準備和業務結構增強為中心的資本支出策略。6月份，我們宣布了對新OLED技術準備的投資，但我們仍在繼續努力提高投資效率。因此，我們今年的資本支出預計將在 2 兆韓元左右，與去年相似。展望未來，我們將最大限度地利用現有的基礎設施，並做出謹慎的投資決策。

New investments will be executed with profitability as the top priority. Thank you very much.

新投資將以獲利為首要任務。非常感謝。

(spoken in foreign language)

（用外語說）

So that concludes the presentation of LG Display's Q2 2025 earnings results. We'll now move on to the Q&A session. Operator, please provide instructions for Q&A.

以上就是 LG Display 2025 年第二季財報結果的介紹。我們現在進入問答環節。接線員，請提供問答說明。

(spoken in foreign language)

（用外語說）

(Operator Instructions) Dongwon Kim, KB Securities.

（操作員指示） Dongwon Kim，KB 證券。

(spoken in foreign language)

（用外語說）

My name is Kim Dongwon an from KB Securities. My question has to do with OLED as well as your future business performance. So in last June, you have disclosed a new OLED technology-related investment. And so what is the specific content and the application scope of the OLED new technology that the company is currently working on? That is my first question.

我叫金東元，來自 KB 證券。我的問題與OLED以及你們未來的業務表現有關。那麼在去年六月，你們揭露了一項與OLED技術相關的新投資。那麼公司目前正在研究的OLED新技術的具體內容和應用範圍是如何的呢？這是我的第一個問題。

My second question has to do with the fact that tariff-related uncertainties are growing and also there's continuing exchange rate-related volatilities. In this situation, to what extent do you expect performance to improve in the second half? Thank you.

我的第二個問題與關稅相關的不確定性日益增加以及匯率持續波動有關。在這種情況下，您預計下半年業績會有什麼樣的改善？謝謝。

(spoken in foreign language)

（用外語說）

So I'm the CFO. Let me take your question. So what we have continuously communicated to the market was that we will be shifting away from LCD business and we'll be increasingly focused on the OLED business. And as part of that plan, in the first half of this year, we have sold our stake in China's TV LCD plant. And so that is how we have dealt with the LCD business.

所以我是財務長。我來回答你的問題。因此，我們不斷向市場傳達的訊息是，我們將逐漸放棄 LCD 業務，並將重點放在 OLED 業務上。作為該計劃的一部分，今年上半年，我們出售了在中國電視液晶工廠的股份。這就是我們處理 LCD 業務的方式。

And now the answer has to come forward of how we will strengthen our OLED business. As you are probably well aware, the reason we have withdrawn from the LCD business is because we have determined that we don't really have have competitive advantage when it comes to the LCD technology. The reason why we are shifting toward more advanced and OLED-centered business structure is because we have concluded our ability to secure future technology is as of yet still superior to our peers.

現在我們必須回答如何加強我們的 OLED 業務。您可能很清楚，我們退出 LCD 業務的原因是，我們確定在 LCD 技術方面我們確實不具備競爭優勢。我們之所以轉向更先進、以 OLED 為中心的業務結構，是因為我們得出結論，我們確保未來技術的能力仍然優於同業。

And so our investment that was disclosed in June this year to secure new OLED technology was part of our strategic direction to maintain this technological gap with our competitors. And we have announced back in June that the total investment amount will come to KRW1,260 trillion, and this investment will be executed over the next two years until the first half of 2027. Because our financial structure has been very significantly improved and because our performance will continue to improve going forward, we do not believe that this amount is burdensome.

因此，我們今年 6 月揭露的為確保新 OLED 技術而進行的投資是我們保持與競爭對手技術差距的策略方向的一部分。我們在六月就宣布，總投資額將達到 1,260 兆韓元，這項投資將在未來兩年內執行，直到 2027 年上半年。由於我們的財務結構已經得到了非常顯著的改善，而且我們的業績未來還將繼續改善，因此我們認為這筆款項並不構成負擔。

So I have just explained the significance of this investment. And I think your question pertains to which area this investment will go into and what kind of new technologies will be developed. I would like to disclose that information. However, due to confidentiality reasons as well as other limitations, I'm not in a position to share that information. So please, we ask for your understanding in that regard.

所以我剛才解釋了這項投資的意義。我想你的問題涉及這筆投資將用於哪些領域以及將開發哪些類型的新技術。我想披露該資訊。然而，由於保密原因以及其他限制，我無法分享該資訊。因此，我們懇請您對此給予理解。

The second question has to do with the extent of the performance improvement that can be expected until the year-end of this year. And my answer is that I'm sure you're all aware that in the beginning of the year, we established our business plans. And throughout the year, we make efforts to achieve that business plan. That becomes our annual business results.

第二個問題與今年年底前可以預期的業績改善程度有關。我的回答是，我相信你們都知道，我們在年初就制定了商業計畫。全年我們都在努力實現該業務計劃。這成為我們的年度業務成果。

First of all, let me talk about the performance up until the first half of the year. At the beginning of this year, we have announced our commitment to turn around into the profit for the full year of 2025. So in order to keep our promise to you about this plan, we have established our company business plan, and we have made efforts to achieve the targets that were set out in the business plan. If we make an assessment about our performance until the first half of the year, well, it is actually exceeding our initial expectations.

首先我來介紹一下上半年的業績。今年年初，我們宣布了2025年全年轉虧為盈的承諾。因此，為了履行我們對您對該計劃的承諾，我們制定了公司業務計劃，並努力實現業務計劃中列出的目標。如果我們對上半年的表現進行評估，那麼它實際上超出了我們最初的預期。

So our intention is to continue this trend to the second half of the year. And up until now, this trend is being well maintained. I have already noted that compared to last year, we have been able to post a performance improvement of KRW500 billion in the first half of this year. And in the second half as well, proportional to all the revenues that we will be achieving, I think a level similar to that can be expected by the year-end. We will make an all-out effort in order to ensure that a strong performance is delivered.

因此我們的目標是將這一趨勢延續到今年下半年。並且到目前為止，這一趨勢仍然保持良好。我已經注意到，與去年相比，今年上半年我們的業績成長了 5,000 億韓元。而且在下半年，相對於我們將實現的所有收入，我認為到年底我們也能達到類似的水準。我們將竭盡全力，確保取得優異的業績。

[Soo Yeon Kim] [Kiwon Securities].

[金秀妍][基元證券]。

(spoken in foreign language)

（用外語說）

This is Kim Soo Yeon from GM Securities. There is news that finished batch for panels for customers' new smartphone models in the second half will be produced by a Korean company while others say that a Chinese company will be handling the production. So what is the second half outlook for the smartphone business? And every year, the mobile panel shipment is increasing, can we expect further growth opportunities this year as well? That is my first question.

我是 GM Securities 的 Kim Soo Yeon。有消息稱，下半年客戶新款智慧型手機面板的成品批次將由一家韓國公司生產，也有消息稱，該批次面板將由一家中國公司生產。那麼智慧型手機業務下半年的前景如何？而且每年移動面板出貨量都在增加，今年我們還能期待進一步的成長機會嗎？這是我的第一個問題。

And my second question is, what is the shipment forecast for the OLED panel for tablets in 2025? Or are there any changes in market demand? And has the shipment target changed compared to last year?

我的第二個問題是，2025年平板電腦OLED面板的出貨量預測是多少？或是市場需求有什麼變化？與去年相比，出貨目標有改變嗎？

(spoken in foreign language)

（用外語說）

This is [Seung-ryong Paik]. I'm the Head of the Small Display Planning and Management. Let me take your question. The smartphone business continues to show expanded performance as our capabilities across technology, production and operations are further strengthened. Although the volatility in the external environment, such as US tariff issues continues, we are stably managing operations without major deviations from our initial plans and business targets.

這是[白承龍]。我是小型展示規劃和管理的主管。我來回答你的問題。隨著我們的技術、生產和營運能力進一步增強，智慧型手機業務的表現持續成長。儘管美國關稅問題等外部環境持續波動，但我們仍在穩定地管理運營，並未與最初的計劃和業務目標有重大偏差。

Despite the seasonal off-peak in the first half, we have achieved a meaningful shipment growth of more than 20% Y-o-Y. We're also planning to increase volumes centered on new models in the second half and thus expect to outperform last year's full year performance.

儘管上半年是淡季，但我們的出貨量仍然實現了同比 20% 以上的顯著增長。我們還計劃在下半年增加以新車型為中心的銷量，從而預計業績將超過去年全年。

It would not be appropriate for us to directly comment on the capabilities or business status of other suppliers. But for ourselves, we will continue to strengthen our quality competitiveness, steadily reduce cost and prepare for future technologies so that we can respond to the competitive landscape and maintain stable business results.

我們不宜直接評論其他供應商的能力或業務狀況。但對我們自己來說，我們將繼續加強品質競爭力，穩步降低成本，為未來的技術做好準備，以便我們能夠應對競爭格局並保持穩定的經營業績。

With regards to the tablet OLED panels, due to the sluggish global IT market, last year shipment of tablet OLED panels fell short of both our internal targets and market expectations. While the current macro environment is somewhat unfavorable to high-end product sales, our tablet OLEDs offer distinct advantages such as low power consumption, longer lifespan and high brightness, which are expected to continue attracting market attention and consumer demand.

平板電腦OLED面板方面，受全球IT市場低迷影響，去年平板電腦OLED面板的出貨量未達公司內部目標及市場預期。雖然目前的宏觀環境對高階產品銷售有些不利，但我們的平板OLED具有低功耗、長壽命、高亮度等明顯優勢，預計將持續吸引市場關注和消費者需求。

So accordingly, our panel shipments are expected to increase Y-o-Y, and the utilization rate is also expected to rise compared to last year. We'd like to ask for your understanding that specific targets for our panel supply by model and expected market share involves confidential customer information and, thus, cannot be disclosed.

因此，我們的面板出貨量預計將年增，利用率也預計將比去年上升。請您瞭解，我們按型號劃分的面板供應具體目標和預期市場份額涉及機密客戶信息，因此無法透露。

However, we have secured differentiated technological competitiveness in the tandem OLED space, and we'll continue to maintain our position as the first vendor in the market. We're going to continue pursuing product differentiation that is based on our long-standing technological leadership and competitiveness and actively respond to market demand.

然而，我們已經在串聯OLED領域確保了差異化的技術競爭力，並且我們將繼續保持市場第一供應商的地位。我們將繼續追求基於長期技術領先地位和競爭力的產品差異化，並積極回應市場需求。

Mingyu Kwon, SK Securities.

Mingyu Kwon，SK證券。

(spoken in foreign language)

（用外語說）

My questions are twofold. First, given the macro level uncertainties such as tariffs still persist, are there any new developments regarding a recovery in IT demand? My second question is, if the current situation becomes protracted, what is LG Display's operational plan and strategic direction for the medium panel LCD business? And how does the company plan to manage profitability?

我的問題有兩個。第一，鑑於關稅等宏觀不確定因素仍然存在，IT需求復甦是否有新的進展？我的第二個問題是，如果目前的情況持續下去，LG Display對中面板LCD業務的營運計畫和策略方向是什麼？公司計劃如何管理獲利能力？

(spoken in foreign language)

（用外語說）

Good afternoon. This is Yoo-shin Ahn, Head of the Medium Display Planning and Management. Let me take your questions. So the demand for medium-sized panel products are expected to grow slightly this year with both -- and panel demand projected to increase in the low to middle single digits. While the end of negative growth is a positive sign, we do believe that demand volatility remains high due to the continued uncertainty in the external environment.

午安.我是媒體展示規劃與管理部門負責人 Yoo-shin Ahn。我來回答你們的問題。因此，預計今年中型面板產品的需求將略有成長，面板需求預計將以低至中等個位數成長。雖然負成長的結束是一個正面的訊號，但我們確實認為，由於外部環境的持續不確定性，需求波動仍然很高。

Demand and sales conditions vary by product category as well as by customer. But in the LCD segment, we are focusing our business operations on B2B and high-end areas, strengthening partnerships with top tier global customers. At the same time, we are closely monitoring the growth and transition pace of OLED demand across each product category and systematically preparing for the future. We believe replacement demand and opportunities such as AI PCs are still valid, and we will actively respond to market opportunities in each product area based on our differentiated technological strength.

需求和銷售條件因產品類別和客戶而異。但在LCD領域，我們將業務營運重點放在B2B和高端領域，加強與全球頂級客戶的合作關係。同時，我們密切關注各產品類別OLED需求的成長和轉型速度，並有系統地為未來做好準備。我們認為AI PC等換機需求與機會依然存在，我們將基於差異化的技術實力，積極因應各產品領域的市場機會。

Regarding profitability, we expect the profitability of our medium panel business to improve gradually with last year marking the bottom. As has been mentioned, although there have not been any significant changes on the demand side, we are rationalizing our product lineup in the LCD area by reducing the proportion of low-margin products and focusing on top-tier global customers. In the medium panel OLED segment, we anticipate improving profitability to a meaningful level this year by increasing panel shipments compared to last year and leveraging OLED's differentiated competitiveness.

至於獲利能力，我們預期中面板業務的獲利能力將逐步改善，去年則是最低點。正如已經提到的，儘管需求方面沒有發生任何重大變化，但我們正在透過減少低利潤產品的比例並專注於全球頂級客戶來合理化我們在 LCD 領域的產品陣容。在中型面板OLED領域，我們預計今年透過增加面板出貨量（較去年同期）並利用OLED的差異化競爭力，獲利能力將提高到一個有意義的水平。

Although recently, the profitability of the IT business has weakened compared to the past, we are intensifying our cost innovation efforts and leveraging our differentiated competitiveness in the high-end LCD technologies like IPS and oxide as well as in the tandem OLED, which offers advantages in high illuminance, low power consumption and long lifespan to expand our performance in B2B in high-end product areas and, thereby, improve profitability.

雖然最近IT業務的獲利能力較過去有所減弱，但我們正在加大成本創新力度，利用IPS、氧化物等高端LCD技術以及串聯OLED等高照度、低功耗、長壽命等優勢的差異化競爭力，擴大高端產品領域B2B業務的業績，從而提高盈利能力。

Jimmy Yoon, UBS.

瑞銀的 Jimmy Yoon。

(spoken in foreign language)

（用外語說）

My name is Jimmy from UBS. I have two questions. The first question has to do with the full year outlook for sales of the large OLED panel in 2025. Has there been any changes to the beginning of the year business plan that you have established?

我叫吉米，來自瑞銀。我有兩個問題。第一個問題與2025年大型OLED面板全年銷售前景有關。您年初制定的經營計畫有變化嗎？

And my second question has to do with the OLED monitors. I think you have briefly mentioned this area in your presentation. But what are the opportunity factors for OLED monitor? And what is the current and future contribution levels of OLED monitors? Thank you.

我的第二個問題與 OLED 顯示器有關。我認為您在演講中已經簡要地提到了這個領域。但OLED顯示器的機會因素有哪些呢？而OLED顯示器目前及未來的貢獻水準又如何呢？謝謝。

(spoken in foreign language)

（用外語說）

Good afternoon. This is Chun Deok Kim. I'm the VP of Large Display Planning and Management. Let me take your question. So with regards to the sales outlook for our large OLED panels and monitors, despite volatile external environment, including the US tariff issue and other macroeconomic factors, our large-sized OLED panel shipments are proceeding according to the original plan without much deviation. And annual shipments are expected to reach the 6 million-mid range, an increase over the previous year.

午安.我是金春德。我是大型顯示器規劃和管理副總裁。我來回答你的問題。因此，就我們的大尺寸OLED面板和顯示器的銷售前景而言，儘管外部環境動盪，包括美國關稅問題和其他宏觀經濟因素，但我們的大尺寸OLED面板出貨量仍按照原計劃進行，沒有太大偏差。預計年出貨量將達到 600 萬輛左右，比前一年有所成長。

And in relation to price compared to LCD, the differentiated value of OLED panels is being recognized in the market. And in terms of our price acceptability, the prices are approaching an acceptable level, increasing their overall appeal. And so as a result, both OLED TVs and monitors are seeing continuous growth, not only in panel shipments but also in sales as well. Recently, in addition to TV panels, the share of OLED monitor products, especially gaming monitors, has significantly increased. We expect the proportion of monitor products within our total large OLED panel shipments this year to exceed 10%.

而相對於LCD的價格而言，OLED面板的差異化價值正在獲得市場的認可。就我們的價格接受度而言，價格正在接近可接受的水平，從而增加了其整體吸引力。因此，OLED 電視和顯示器不僅在面板出貨量上持續成長，而且在銷售上也持續成長。近期，除了電視面板外，OLED顯示器產品，尤其是電競顯示器的佔比也明顯提升。我們預計今年顯示器產品占我們大型OLED面板總出貨量的比例將超過10%。

Now regarding profitability, although this has been said time and again, let me repeat this once again, that we believe the most important factor is to establish a cost structure and internal operations that could ensure stable profitability despite any changes in the external environment.

現在關於獲利能力，雖然我們已經說過很多次了，但我還是要再重複一遍，我們認為最重要的因素是建立一個成本結構和內部運營，以確保無論外部環境如何變化，都能穩定盈利。

So accordingly, we are shifting the structure of our large panel business to focus on OLED in response to competition and are making significant efforts towards cost innovation to enhance profitability. To improve the profitability of the large panel business going forward, we're not only strengthening the competitiveness of the OLED products, but we're diversifying our OLED product lineup and also carrying out aggressive cost innovation and operational efficiency wide efforts.

因此，為了應對競爭，我們正在轉變大面板業務結構，將重點轉向 OLED，並在成本創新方面做出巨大努力，以提高獲利能力。為了提高未來大面板業務的獲利能力，我們不僅要加強OLED產品的競爭力，還要實現OLED產品陣容的多樣化，並積極進行成本創新和提高營運效率。

As a result, we are now seeing tangible results in terms of profitability improvement Q-o-Q. While it is difficult to comment on the profitability of the individual business segments, we expect that our large-panel OLED business will continue to deliver stable performance in both growth and profitability by leveraging strong partnerships with the global top-tier customers.

因此，我們現在看到了獲利能力上季改善的實質成果。雖然很難評論各個業務部門的獲利能力，但我們預計，透過與全球頂級客戶建立強有力的合作夥伴關係，我們的大面板OLED業務將繼續在成長和獲利方面保持穩定的表現。

With this, we'd like to conclude the 2025 second quarter LG Display's earnings presentation. Thank you very much for your attendance. And if you have any additional questions, please contact our IR team. Thank you.

至此，我們想結束 2025 年第二季 LG Display 的財報。非常感謝您的出席。如果您有任何其他問題，請聯絡我們的 IR 團隊。謝謝。

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。