LG Display Co Ltd (LPL) 2025 Q4 法說會逐字稿

(spoken in foreign language)

（用外語說）

Good afternoon. This is Heo Suk, Leader of the LG Display IR team. Thank you for joining our fourth quarter 2025 earnings conference call. Joining us today are CFO, Kim Sung-Hyun; Vice President, Choi Hyun-chul, in charge of Business Control and Management; Vice President, Kim Kyu Dong, in charge of Finance and Risk Management; Lee Kyung, in charge of Business Intelligence; Vice President, Kim Yong Duck, in charge of Large Display Planning and Management; and in charge of Medium Display Planning and Management, Park Sang-woo, in charge of Small Display Planning and Management and Head of Auto Marketing.

午安.這位是LG Display IR團隊負責人許碩。感謝您參加我們2025年第四季財報電話會議。今天與我們一同出席的有：財務長金成鉉；負責業務控制和管理的副總裁崔賢哲；負責財務和風險管理的副總裁金奎東；負責商業智慧的李京；負責大型展示規劃和管理的副總裁金勇德；負責中型展示規劃和管理的副總裁相佑；負責小型展示規劃和管理的副總裁金勇德；負責中型展示規劃和管理的副總裁相佑；負責小型展示規劃和管理的副總裁兼汽車營銷主管。

(spoken in foreign language)

（用外語說）

Today's conference call will be conducted in both Korean and English. For detailed performance-related materials, please refer to our disclosure or the Investor Relations section in the company website. Please refer to the disclaimer before we begin the presentation.

今天的電話會議將以韓語和英語進行。有關業績的詳細資料，請參閱我們的揭露文件或公司網站上的投資者關係部分。請在開始示範前閱讀免責聲明。

(spoken in foreign language)

（用外語說）

Please be informed that the financial figures presented in today's earnings release are consolidated figures prepared in accordance with International Financial Reporting Standards. These figures have not yet been audited by an external auditor and are provided for the convenience of our investors.

請注意，今天發布的盈利報告中所列的財務數據是根據國際財務報告準則編制的合併數據。這些數據尚未經過外部審計師的審計，僅供投資人參考。

(spoken in foreign language)

（用外語說）

I will now report on the company's business performance in Q4 2025. Shipment of panels for TVs and notebook PCs in Q4 remained solid, but there were some changes to the mix in some small and medium OLED products that lessen the usual seasonality. As a result, revenue rose slightly Q-o-Q to KRW7.2008 trillion.

接下來我將報告公司 2025 年第四季的業務表現。第四季電視和筆記型電腦面板的出貨量保持穩定，但一些中小尺寸 OLED 產品的組合發生了一些變化，減弱了通常的季節性波動。因此，營收季增至7.2008兆韓元。

(spoken in foreign language)

（用外語說）

Operating profit declined Q-o-Q to KRW168.5 billion. It is owed to lower shipments of certain small and medium OLED models Q-o-Q together with one-off costs related to strengthening the company's profit structure and future competitiveness.

營業利潤季減至1685億韓元。這主要是由於某些中小尺寸 OLED 型號的出貨量環比下降，以及與加強公司利潤結構和未來競爭力相關的一次性成本。

(spoken in foreign language)

（用外語說）

As noted in last quarter's earnings call, for the purpose of efficiency of manpower structure, costs associated with voluntary retirement program for domestic and overseas employees exceeded KRW90 billion. In addition, fourth quarter included incentive payments as rewards to employees for achieving the company's first annual turnaround in four years and as motivation to further bolster the company's competitiveness. Cost for activities such as reducing low-margin products and inventory rationalization were also included in Q4 results, which were part of the initiative to adjust the company's business and product portfolio. It was intended to strengthen our profit structure and operational efficiency.

如同上季財報電話會議所述，為了提高人力資源結構的效率，國內外員工自願退休計畫的相關成本超過 900 億韓元。此外，第四季度還包括激勵獎金，作為對員工的獎勵，以表彰公司四年來首次實現年度扭虧為盈，並激勵員工進一步增強公司的競爭力。第四季業績中還包括了減少低利潤產品和庫存合理化等活動的成本，這是公司調整業務和產品組合措施的一部分。其目的是為了加強我們的利潤結構和營運效率。

(spoken in foreign language)

（用外語說）

Operating performance in Q4, excluding these one-off costs, expanded both Q-o-Q and Y-o-Y, demonstrating continued improvement in our business fundamentals and profitability. There was net loss of KRW351.2 billion down Q-o-Q, primarily due to foreign currency translation loss stemming from the higher year-end exchange rate. EBITDA in Q4 was KRW1.162 trillion, with an EBITDA margin of 16%.

第四季的經營業績（不包括這些一次性成本）環比和年比均有所成長，顯示我們的業務基本面和獲利能力持續改善。由於年末匯率走高導致外幣折算損失，公司淨虧損較上季下降3512億韓元。第四季 EBITDA 為 1.162 兆韓元，EBITDA 利潤率為 16%。

(spoken in foreign language)

（用外語說）

Next is shipment area and ASP trend. What we are seeing recently is that panel shipments by product have diverged from traditional seasonality, reflecting instead the downstream conditions, customers' inventory levels and strategic panel buying trends as well as differences in customer and/or product strategies among panel fires, particularly for the company, as we maintain profitability-focused product portfolio, shipment of low-margin midsized LCD models continue to shrink.

接下來是出貨區域和平均售價趨勢。我們最近看到的是，面板產品出貨量已經偏離了傳統的季節性規律，而是反映了下游情況、客戶的庫存水平和戰略性面板購買趨勢，以及面板火災中客戶和/或產品策略的差異，特別是對於我們公司而言，由於我們保持以盈利為導向的產品組合，低利潤的中型液晶顯示器型號的出貨量持續下降。

(spoken in foreign language)

（用外語說）

Specifically in Q4, shipment area for TV and notebook PC panels grew quarter-on-quarter, while shipment for monitor and tablet panels declined. As a result, despite the strong seasonality, total shipment area rose modestly Q-o-Q to 4.0 million square meters.

具體來說，在第四季度，電視和筆記型電腦面板的出貨量較上季成長，而顯示器和平板電腦面板的出貨量則有所下降。因此，儘管季節性因素影響顯著，但總出貨面積比上季小幅增加至 400 萬平方公尺。

(spoken in foreign language)

（用外語說）

ASP per square meter was $1,297, down 5% quarter-on-quarter largely because shipment of certain small and midsized OLED models were concentrated in Q3. Although it fell Q-o-Q, it is up 14% year-on-year, reflecting continued progress in upgrading the business structure toward OLED and supporting expectations at the high level will be maintained going forward.

每平方公尺平均售價為 1,297 美元，季減 5%，主要是因為某些小型和中型 OLED 型號的出貨量集中在第三季。儘管環比下降，但年增 14%，反映出公司在向 OLED 升級業務結構方面持續取得進展，並支持未來將維持高水準的預期。

(spoken in foreign language)

（用外語說）

Next is revenue share by product group. Overall revenue share remained largely unchanged from Q3. First, mobile and others accounted for 40% of revenue, up 1-percentage-point Q-o-Q, mainly due to shifts in the product mix. IT revenue share remained almost unchanged at 36%, down 1-percentage-point Q-o-Q, reflecting the deferring shipments across product categories, as described earlier.

接下來是按產品組別劃分的收入份額。整體收入份額與第三季基本保持不變。首先，行動端和其他業務佔總收入的 40%，環比成長 1 個百分點，這主要是由於產品組合的變化。IT 收入份額基本上保持不變，為 36%，環比下降 1 個百分點，反映出各產品類別的出貨量有所推遲，如前所述。

(spoken in foreign language)

（用外語說）

TV share out of revenue rose slightly by 1-percentage-point as shipments of white OLED panels for TV and monitor increased. Auto revenue share rose to 7% and down 1-percentage-point Q-o-Q. OLED products accounted for 65% of total revenue in Q4, unchanged Q-o-Q and up 5-percentage-points Y-o-Y. Year-to-date, OLED share rose to 61% from 55% last year, up 6-percentage-points. The continued upgrade toward OLED-centric business structure is steadily broadening and strengthening our growth and profitability base.

由於用於電視和顯示器的白色 OLED 面板出貨量增加，電視業務收入份額略微上升了 1 個百分點。汽車收入份額上升至 7%，較上季下降 1 個百分點。第四季 OLED 產品佔總營收的 65%，季減持平，年增 5 個百分點。今年迄今為止，OLED 市佔率從去年的 55% 上升至 61%，成長了 6 個百分點。持續向以OLED為中心的業務結構升級，正在穩步擴大和加強我們的成長和獲利基礎。

(spoken in foreign language)

（用外語說）

Next is our financial position and key indicators. Cash and cash equivalents at quarter end were KRW1.573 trillion, largely unchanged Q-o-Q. As we wind down nonstrategic businesses such as LCD TV and improve operating efficiency, the level of required operating capital has remained lower than in the past.

接下來是我們的財務狀況和關鍵指標。截至季末，現金及現金等價物為1.573兆韓元，與上一季基本持平。隨著我們逐步關閉液晶電視等非策略性業務並提高營運效率，所需的營運資金水準仍然低於過去。

(spoken in foreign language)

（用外語說）

Inventory at quarter end declined Y-o-Y to KRW2.546 trillion, reflecting progress from our efficiency improvement efforts. Total debt decreased by KRW1.886 trillion from the end of 2024 to KRW12.664 trillion. And net debt fell by KRW1.437 trillion Y-o-Y to KRW11.0910 trillion.

季末庫存年減至2.546兆韓元，反映出我們在提高效率方面所取得的進展。到 2024 年底，總債務減少了 1.886 兆韓元，降至 12.664 兆韓元。淨負債年減1.437兆韓元，至11.0910兆韓元。

(spoken in foreign language)

（用外語說）

Debt-to-equity ratio improved to 243% and net debt-to-equity ratio to 141%, lower by 20-percentage-points and 10-percentage-points, respectively, Q-o-Q and lower by 54-percentage-points and 14-percentage-points Y-o-Y, further strengthening our financial soundness.

負債權益比率改善至 243%，淨負債權益比率改善至 141%，季減 20 個百分點和 10 個百分點，年比分別下降 54 個百分點和 14 個百分點，進一步增強了我們的財務穩健性。

(spoken in foreign language)

（用外語說）

I will now move on to guidance for Q1. Shipment area is expected to fall across all categories in Q1 due to seasonality. While ASP per square meter is also expected to fall slightly Q-o-Q, it will be tempered compared to the same quarters in the past due to the strong and sustained upgrade to OLED-centric business structure.

接下來我將介紹第一季的指導意見。受季節性因素影響，預計第一季所有類別的出貨量都會下降。雖然預計每平方公尺平均售價也會較上季略有下降，但由於以 OLED 為中心的業務結構實現了強勁且持續的升級，與過去同期相比，降幅將會緩和。

(spoken in foreign language)

（用外語說）

Total shipment area is projected to decrease by low 20% level from the previous quarter and ASP per square meter to decline by mid-single-digit percent. Notably, ASP per square meter is expected to remain above the $1,200 line even through the seasonality of Q1 up by more than 50% Y-o-Y.

預計總出貨面積將比上一季減少 20% 左右，每平方公尺平均售價將下降個位數百分比。值得注意的是，即使第一季受季節性因素影響，每平方公尺的平均售價預計仍將保持在 1,200 美元以上，較去年同期上漲超過 50%。

(spoken in foreign language)

（用外語說）

I will now hand over to our CFO, Kim Sung-Hyun.

現在我將把發言權交給我們的財務長金成鉉。

(interpreted) Good afternoon and evening to everyone. I am Kim Sung-Hyun, the CFO. Thank you very much for joining today's conference call. Looking back to last year's performance, our most significant achievement was delivering a meaningful scale of turnaround after four years, improving profitability by more than KRW1 trillion Y-o-Y, thanks to the hard work and dedication of all our members. Beside elevated external uncertainty and volatility in global markets, we continue to expand OLED revenue share and persisted with intensive structural improvements.

（翻譯）大家下午好/晚上好。我是財務長金成鉉。非常感謝您參加今天的電話會議。回顧去年的業績，我們最顯著的成就是時隔四年實現了意義重大的扭虧為盈，盈利能力同比增長超過 1 萬億韓元，這要歸功於我們所有成員的辛勤工作和奉獻精神。儘管全球市場面臨較高的外部不確定性和波動性，我們仍持續擴大OLED收入份額，並堅持進行深入的結構性改進。

As a result, we reduced our loss by roughly KRW2 trillion in 2024 versus '23 and further improved results by about KRW1 trillion in 2025.

因此，與 2023 年相比，我們在 2024 年減少了約 2 兆韓元的損失，並在 2025 年進一步改善了業績，減少了約 1 兆韓元。

(spoken in foreign language)

（用外語說）

OLED share out of revenue reached a record high of 61% for the year. It was only 32% when we began business structure upgrade in 2020 and rose to 44% in 2022, then again to 55% in 2024. We believe that we are moving much closer to the complete solidification of our OLED-centric business structure, having terminated the large LCD business with the sell-off of Guangzhou LCD plants in 2025.

OLED 佔全年營收的份額達到了創紀錄的 61%。2020 年我們開始進行業務結構升級時，這一比例僅為 32%，2022 年上升至 44%，2024 年又上升至 55%。我們相信，隨著2025年廣州液晶工廠的出售，大型液晶業務的終止，我們正朝著以OLED為中心的業務結構的完全鞏固邁進一大步。

(spoken in foreign language)

（用外語說）

Allow me to explain the one-off cost in Q4. There were explanation and guidance for costs related to voluntary retirement program provided at last year's October earnings call. And the actual cost incurred roughly KRW90 billion is largely in line with the guidance. These costs include besides workforce rationalization to strengthen our business fundamentals, local workforce adjustment costs that were incurred while trying to improve our overseas production strategies to proactively address changes in trade and tariff environment, as well as customers' production strategies. Financial impact from the voluntary retirement cost is unchanged from what we described at last quarter.

請容許我解釋一下第四季的一次性成本。在去年 10 月的財報電話會議上，公司對與自願退休計畫相關的成本進行了解釋和指導。實際發生的成本約為900億韓元，與預期基本一致。除了為了加強業務基本面而進行的勞動力合理化之外，這些成本還包括在嘗試改善海外生產策略以積極應對貿易和關稅環境的變化以及客戶的生產策略時產生的本地勞動力調整成本。自願退休成本帶來的財務影響與我們上個季度所描述的情況相同。

(interpreted) The one-off costs will be offset from about 18 months after implementation and will contribute positively to future results.

（解釋）一次性成本將在實施後約 18 個月內抵消，並將對未來的業績產生正面影響。

(spoken in foreign language)

（用外語說）

In addition, as mentioned as part of the Q4 performance briefing, incentive payments tied to last year's business performance were also reflected. It is to recognize our members' role in achieving the first annual turnaround in four years and to motivate them further going forward. The incentive is intended to further support our ability to shift towards a technology-centric company by focusing more on improving our fundamentals, build a sustainable profit structure and better achieve our future goals. Last item is the cost associated with the strengthening profitability and improving operating efficiency. It will enable the company to boost future profitability and broader push to improve operational efficiency, such as reducing low-margin products or consolidating inventory and is expected to strengthen business performance overall.

此外，正如第四季度業績簡報所述，與去年業務業績掛鉤的激勵性付款也已反映在內。這是為了表彰我們的成員在實現四年來首次年度扭虧為盈中所發揮的作用，並激勵他們繼續努力。這項激勵措施旨在進一步支持我們向以技術為中心的公司轉型，更加重視改善我們的基本面，建立可持續的獲利結構，並更好地實現我們的未來目標。最後一項是與提高獲利能力和營運效率相關的成本。這將使公司能夠提高未來的獲利能力，並更廣泛地推動提高營運效率，例如減少低利潤產品或整合庫存，並有望增強整體業務績效。

(spoken in foreign language)

（用外語說）

Total nonrecurring cost impact in Q4 was in the high KRW300 billion range, which is the result of the company's activities and work to strengthen our profit structure and future competitiveness. Excluding these items, Q4 operating profit was roughly mid KRW500 billion, exceeding market expectations. It is an improvement Q-o-Q and Y-o-Y underscoring continued improvement in our business fundamentals and profit structure.

第四季非經常性成本影響總額高達 3,000 億韓元，這是公司為加強利潤結構和未來競爭力而開展的活動和工作的結果。剔除這些項目後，第四季營業利潤約5000億韓元，超出市場預期。與上季和去年相比均有所改善，這凸顯了我們業務基本面和利潤結構的持續改善。

(spoken in foreign language)

（用外語說）

Looking ahead, we expect external uncertainty and product level volatility in the downstream market to persist this year. While numerous factors persist in our business environment like macroeconomic-driven real demand, changes in the trade environment and supply chain stability, we will remain focused on stabilizing our business performance by growing our OLED business and driving cost innovation and operational efficiency activities.

展望未來，我們預計今年下游市場的外部不確定性和產品水平波動性將持續存在。儘管宏觀經濟驅動的實際需求、貿易環境的變化以及供應鏈的穩定性等諸多因素持續影響著我們的商業環境，但我們將繼續專注於透過發展OLED業務、推動成本創新和提高營運效率來穩定我們的業務表現。

(spoken in foreign language)

（用外語說）

Next, let me briefly remark on our plan and strategy by business. For small mobile we will expand panel shipment, leveraging differentiated technological leadership and strengthened customer partnerships to enhance business performance and stability. At the same time, we will systematically execute R&D and new technology investments to grow our future opportunities.

接下來，請容許我簡要介紹我們的業務計劃和策略。對於小型行動設備，我們將擴大面板出貨量，利用差異化的技術領先優勢和加強的客戶合作關係，以提高業務績效和穩定性。同時，我們將系統性地進行研發和新技術投資，以拓展未來的發展機會。

(spoken in foreign language)

（用外語說）

For medium-sized OLED, we will respond to high-end market demand across product segments by leveraging our technological leadership and mass production experience. We will also respond proactively to shifting market demand and customer requests by more efficiently utilizing existing infrastructure. As to the demand for OLED conversion by product, which is expected to grow, we will carefully assess market size and conversion pace to enhance competitiveness in ways that will differentiate us.

對於中等尺寸的OLED，我們將利用我們的技術領先優勢和大規模生產經驗，滿足各個產品領域的高端市場需求。我們也將積極回應不斷變化的市場需求和客戶要求，更有效地利用現有基礎設施。至於產品對 OLED 轉換的需求預計將會成長，我們將仔細評估市場規模和轉換速度，以增強競爭力，使我們脫穎而出。

(spoken in foreign language)

（用外語說）

For IT LCD, as reflected in recent quarterly shipment trends and results, we are keeping our focus on B2B and differentiated high-end LCD while continuing to reduce low-margin products. It is leading to meaningful profitability improvement every year. We will intensify execution of what is already underway to achieve possibility for a turnaround this year.

對於 IT LCD，正如最近幾季的出貨趨勢和結果所反映的那樣，我們將繼續專注於 B2B 和差異化的高階 LCD，同時繼續減少低利潤產品。它正逐年帶來顯著的獲利能力提升。我們將加強執行目前正在進行的工作，以期今年實現扭虧為盈的目標。

(spoken in foreign language)

（用外語說）

For large panels, we will solidify our leadership in the premium market through our differentiated and diversified TV and gaming OLED panel lineup on the back of growing recognition of white OLED's competitiveness and close collaboration with strategic customers. We will expand business results and pursue rigorous cost improvement to maintain stable operations.

對於大尺寸面板，我們將憑藉差異化和多元化的電視和遊戲 OLED 面板產品線，鞏固我們在高端市場的領先地位，這得益於人們對白色 OLED 競爭力的日益認可以及與戰略客戶的緊密合作。我們將擴大業務成果，並嚴格控製成本，以維持穩定營運。

(spoken in foreign language)

（用外語說）

And for automotive, we will sustain our competitive advantage and create customer value based on our market leadership and differentiated product and technology portfolio.

在汽車領域，我們將保持競爭優勢，並基於我們的市場領導地位和差異化的產品及技術組合來創造客戶價值。

(spoken in foreign language)

（用外語說）

Finally, on investment. We maintained a CapEx policy focused on investments in our future readiness and structural upgrade. After investment optimization activities, CapEx in 2025 was completed at mid KRW1 trillion. In 2026, CapEx is expected at KRW2 trillion level, up Y-o-Y. This includes execution of the planned investment to enhance OLED technological competitiveness and investment to strengthen OLED business and future readiness.

最後，談談投資。我們堅持以資本支出為導向的政策，並專注於投資未來的準備和結構升級。經過投資優化活動後，2025 年的資本支出預計約 1 兆韓元。預計到 2026 年，資本支出將達到 2 兆韓元，年增。這包括執行旨在增強 OLED 技術競爭力的計畫投資，以及旨在加強 OLED 業務和未來準備的投資。

(spoken in foreign language)

（用外語說）

For any new investment decision, we will communicate with the market without delay.

對於任何新的投資決策，我們將立即與市場溝通。

(spoken in foreign language)

（用外語說）

This completes our report on Q4 business performance and review of 2025. Thank you very much.

至此，我們的第四季業務表現報告和2025年展望全部完成。非常感謝。

(spoken in foreign language)

（用外語說）

This completes our presentation of business highlights for Q4 2025. We will now take your questions. Operator, please commence the Q&A.

至此，我們對2025年第四季業務亮點的介紹就結束了。現在開始回答各位的問題。操作員，請開始問答環節。

(Operator Instructions)

（操作說明）

Kangho Park from Daishin Securities.

大信證券的 Kangho Park。

(spoken in foreign language)

（用外語說）

(interpreted) And first of all, congratulations on achieving a turnaround for the time in four years. Now I would like to ask two questions broadly about the company overall. The first is in 2025, the company sold off its LCD company in China and continue with the business upgrade, and it has also increased the share of OLED out of the total revenue. It has also which has then improved the business performance as well as the profitability.

（譯）首先，恭喜你們在四年內實現了扭轉局面。現在我想就公司整體狀況問兩個比較廣泛的問題。第一個目標是在 2025 年，該公司出售其在中國的 LCD 業務，並繼續進行業務升級，同時提高 OLED 在總收入中的佔比。這也提高了企業的績效和獲利能力。

(spoken in foreign language)

（用外語說）

So looking ahead to this year, then it appears that the share of OLED appears to be set to keep growing, which is likely, hopefully, to keep driving up the revenue. So then my question is, what is the company's outlook for each business? And also what is the expected business performance for the year?

展望今年，OLED 的市場份額似乎將繼續成長，這有望繼續推動營收成長。那麼我的問題是，公司對各項業務的前景有何看法？此外，預計今年的業務業績如何？

(spoken in foreign language)

（用外語說）

And also for the short term, I believe what the company needs in order to quell the negative perception about LG Display is to sever the trend of entering into loss in the first half of the year. So can we expect a better trend in the first half of this year? And the second question is, the company for the past few years has been focused on improving financial soundness, for example, improving the cost efficiency and also lowering the facilities and lowering the inventory level and also improving the overall operational efficiency.

而且就短期而言，我認為LG Display要平息外界對其的負面看法，就必須扭轉上半年持續虧損的局面。那麼我們能否期待今年上半年趨勢有所改善？第二個問題是，該公司過去幾年致力於改善財務狀況，例如提高成本效益，降低設施成本和庫存水平，以及提高整體營運效率。

(spoken in foreign language)

（用外語說）

Now then again, looking ahead to 2026 and also from a mid- to long-term perspective, what is going to be the and new strategic priorities or strategic tasks down the road? And especially for the CFO personally, what would be your priorities or what would be the important part of your action plan?

那麼，展望 2026 年以及中長期來看，未來的新策略重點或策略任務是什麼？特別是對於財務長個人而言，您的優先事項是什麼？或者說，您的行動計畫中最重要的部分是什麼？

Thank you very much for the question, which was quite specific and also appear to have the answers embedded in them already. I would just like to provide my response at once based on my own interpretation of the questions.

非常感謝您的提問，您的問題非常具體，而且答案似乎已經包含在答案之中了。我想根據自己對問題的理解，立即給出我的答案。

(spoken in foreign language)

（用外語說）

Now, of course, so far, there have been work to upgrade our business structure and also improve our operational efficiency and the results or the performance out of that is, I believe, meeting up to the to our commitment to the market perhaps not 100% satisfactorily, but we have done the job.

當然，到目前為止，我們已經致力於升級業務結構，提高營運效率，我相信，這些努力的成果或表現，或許不能百分之百令人滿意地履行我們對市場的承諾，但我們已經完成了這項工作。

(spoken in foreign language)

（用外語說）

But that does not mean that we can put an end to the process or the efforts that we have carried on for the past few years. Rather, they need to continue with new tasks in new phases. Now for the mid to long term, what is important and fundamental to the company is that, first of all, we need to keep growing; and second, we need to be steadfastly profitable every quarter.

但這並不意味著我們可以結束過去幾年一直在進行的進程或努力。相反，他們需要在新的階段繼續執行新的任務。從中長期來看，對公司而言，最重要的是，首先，我們需要保持成長；其次，我們需要每季都保持獲利。

(spoken in foreign language)

（用外語說）

No, that would be my short answer to questions number one and number two. But then now in order to enable the points that I have just made, then there are some points that we also need to reach and allow me to explain a bit more. Now today, an important theme for the company is to turn into a technology-centric company. But then looking around to our external environment, then again in 2026, as you would all know, the environment is still full of uncertainties and also unpredictable elements.

不，這就是我對第一個和第二個問題的簡短回答。但是，為了實現我剛才提出的觀點，我們還需要討論一些問題，請容許我再詳細解釋。如今，公司的一個重要主題是轉型成為一家以技術為中心的公司。但是，當我們環顧四周，看看我們所處的外部環境，再看看 2026 年的情況，正如大家所知，環境仍然充滿了不確定性和不可預測的因素。

(spoken in foreign language)

（用外語說）

So then what should be the end goal for the company is? So what I envision is that we need to become we need to become a normalized and competitive company. And this is because as we went through some tough times in the past few years, I see that the company has become perhaps a bit not typical and also perhaps that has eroded our competitiveness somewhat.

那麼，公司的最終目標應該是什麼呢？因此，我設想我們需要成為一家正常化且具競爭力的公司。這是因為在過去幾年裡，我們經歷了一些艱難時期，我發現公司可能變得有點不尋常，而且這或許也在某種程度上削弱了我們的競爭力。

(spoken in foreign language)

（用外語說）

Well, as you would know, there were losses to our capital, which made it impossible for us to pay out dividends. And we were seeing large losses up until two years ago. Our financial position was quite bad somewhat so that we had to turn to our shareholders to go into a paid-in capital increase. Now looking at last year's performance, yes, we were profitable, but not in all businesses. And what we need to do now is complete a business structure where we will be profitable in each and every one of our businesses, and so that we can also revive trust from the market

如您所知，我們的資本遭受了損失，因此我們無法支付股息。直到兩年前，我們還一直面臨巨額虧損。我們的財務狀況相當糟糕，所以我們不得不向股東尋求增資。現在回顧去年的業績，是的，我們實現了盈利，但並非所有業務都實現了盈利。我們現在需要做的是完善業務架構，確保我們旗下所有業務都能獲利，進而重獲市場信任。

(spoken in foreign language)

（用外語說）

So this means that we also need to reestablish our operations inside the company and across the company. And there is no other choice but for us to continue with our business structure upgrade and operational efficiency improvement. But although the work and the efforts have to continue, I would say that the purpose has slightly become different, whereas in the past, it was more for survival. Now it is more about improving our competitiveness.

所以這意味著我們也需要重建公司內部以及整個公司的營運體系。我們別無選擇，只能繼續推動業務結構升級和營運效率提升。雖然工作和努力必須繼續下去，但我認為目的已經略有不同，過去更多的是為了生存。現在更重要的是提高我們的競爭力。

(spoken in foreign language)

（用外語說）

Competitiveness in our technology, competitiveness in our cost, competitiveness in our products and also competitiveness in our efficient operation. So once we hit all these targets, then I believe we can once again become the market leader. So once we finish that process, then we will once again become a normalized company, win back market trust and also win back the love from our shareholders. So I have been a little bit long winded, but I would say that this is a homework that I have assigned upon myself.

我們在技術上具有競爭力，在成本上具有競爭力，在產品上具有競爭力，在高效運作方面也具有競爭力。所以，一旦我們實現了所有這些目標，我相信我們就能再次成為市場領導者。所以一旦我們完成這個過程，我們就能再次成為一家正常的公司，贏回市場的信任，也能贏回股東們的喜愛。我可能有點囉嗦了，但我想說，這是我給自己的作業。

John Hou Yoon from UBS Securities.

來自瑞銀證券的John Hou Yoon。

(spoken in foreign language)

（用外語說）

(interpreted) My questions are also twofold. Now first is about first is about the mobile OLED. Now the number for the smartphone panel shipment for last year and also the target for this year. So could you share the information regarding these numbers? And also depending so there were some changes in the product launch cycle by customers and also looking at the technological preparedness by competitors, what are some of the opportunity factors that the company can expect?

（譯）我的問題也有兩個面向。首先要說的是移動OLED。現在公佈去年智慧型手機面板出貨量數據以及今年的目標出貨量。您能否分享一下關於這些數字的資訊？此外，由於客戶對產品發布週期進行了一些調整，以及考慮到競爭對手的技術準備情況，公司可以期待哪些機會因素？

(spoken in foreign language)

（用外語說）

And another question. The following question is with regards to the company overall. So following tariffs last year, this year, it appears as if the memory semiconductors trends are going to be the major factor that could affect the business performance of each business segment. So what is the company's perspective and intended response to this trend?

還有一個問題。以下問題與公司整體狀況有關。因此，繼去年的關稅之後，今年儲存半導體的發展趨勢似乎將成為影響各業務部門業務表現的主要因素。那麼，該公司對這一趨勢的看法和應對措施是什麼？

(spoken in foreign language)

（用外語說）

This is Park Sang-woo, in charge of a Smart Size Panel. Now looking back to smartphone business performance in 2025. The first half saw meaningful growth in panel shipments, largely reducing the seasonal variation between the first and second halves. In the second half, while the actual demand varied by model, the diversified product portfolio enabled our annual panel shipment target of around the mid-70 million units as planned.

這位是樸相宇，負責智慧尺寸面板專案。現在展望2025年智慧型手機業務表現。上半年面板出貨量實現了顯著增長，大大減少了上下半年之間的季節性波動。下半年，雖然實際需求因型號而異，但多元化的產品組合使我們得以按計劃實現年度面板出貨量目標，約為 7000 萬台。

(spoken in foreign language)

（用外語說）

And typically, panel shipment jump from the third quarter to the fourth quarter, but last year stood out in that panel shipments were relatively concentrated in the third quarter. Our smartphone business is generating stable results based on enhanced capabilities across our technology, production and operations. This year, we aim to further close the gap between the first and second half while outpacing last year's growth in panel shipment.

通常情況下，面板出貨量會在第三季到第四季之間大幅成長，但去年的情況比較特殊，面板出貨量相對集中在第三季。基於我們在技術、生產和營運方面的能力提升，我們的智慧型手機業務正在產生穩定的業績。今年，我們的目標是進一步縮小上半年和下半年之間的差距，同時在面板出貨量方面超越去年的成長速度。

(spoken in foreign language)

（用外語說）

So please understand that I am not in the position to comment on details about our customers. But what is certain is that our smartphone panel development and production capabilities are proven and recognized, and we have accumulated sufficient know-how to fully address diverse technical need. And we believe that by efficiently utilizing our existing production infrastructure, we can address swiftly and flexibly both the increasing demand and new technology readiness and grow our achievements.

因此，請理解我無法評論有關我們客戶的具體細節。但可以肯定的是，我們的智慧型手機面板開發和生產能力已經過驗證和認可，並且我們已經積累了足夠的專業知識，可以充分滿足各種技術需求。我們相信，透過有效利用我們現有的生產基礎設施，我們可以迅速且靈活地應對不斷增長的需求和新技術準備情況，並取得更大的成就。

(spoken in foreign language)

（用外語說）

Now I would like to respond to the question about the impact from the memory semiconductors. Largely, there are two types of impact. The first is with the increase in the memory price, then there would also be a pressure on the display pricing that it could also go up. And then this could also increase the and for the IT, it could also increase the set price, which could a dampen demand. And also the component price could also go up, meaning that there could also be pressure from customers to lower the panel price.

現在我想回答一下關於儲存半導體的影響這個問題。整體而言，影響分為兩種。首先，隨著記憶體價格的上漲，顯示器價格也會面臨上漲的壓力。而且，這也可能導致 IT 產業定價上漲，進而抑制需求。此外，組件價格也可能上漲，這意味著客戶可能會施加壓力，要求降低面板價格。

(spoken in foreign language)

（用外語說）

Having said that, the impact on the company currently remains limited, but the volatility is quite high. So we are carefully monitoring any changes in the demand as well as the trend and we'll also try to address any impact that might arise. Thank you.

儘管如此，目前對公司的影響仍然有限，但波動性相當高。因此，我們正在密切關注需求和趨勢的任何變化，並將努力應對可能出現的任何影響。謝謝。

Won Suk Chung from iM Securities.

來自 iM Securities 的 Won Suk Chung。

(spoken in foreign language)

（用外語說）

They are also twofold. First, as was mentioned earlier, the rise in the memory semiconductor price could also bring some questions about the company's profitability. And so my question regarding the company's profitability is that now about the IT set, now it appears that the outlook for the downstream market for the IT set demand appears to be conservative.

它們也具有雙重性。首先，如同前面提到的，儲存半導體價格的上漲也可能引發人們對公司獲利能力的一些疑問。因此，關於公司獲利能力的問題是，就IT設備而言，目前看來，IT設備下游市場的需求前景似乎較為保守。

(spoken in foreign language)

（用外語說）

So what is the company's outlook for the IT business? And also what would be the possibility of seeing a turnaround? And a related second question is, now the competition appears to be investing or going into mass production with the 8.6 gen plant, but the company at this time appears to have no such plans. Then wouldn't that place the company at a disadvantage when it comes to customers' allocation? And also with the outlook for the IT PC OLED for this year.

那麼，該公司對IT業務的前景如何？那麼，出現轉機的可能性有多大呢？第二個相關問題是，目前競爭對手似乎正在投資或大規模生產 8.6 代工廠，但該公司目前似乎沒有這樣的計畫。那麼，在客戶分配方面，這豈不是會讓公司處於不利地位嗎？此外，也要展望一下今年IT PC OLED的發展前景。

For this year company's midsized business focused on upgrading our customer structure around global high-end clients throughout 2025, while actively reducing low-margin products. At the same time, we sustained rigorous cost innovation activities, generating meaningful improvement in profitability Y-o-Y. We anticipate this trend to continue into 2026.

今年，該公司中型業務的重點是到 2025 年圍繞全球高端客戶升級客戶結構，同時積極減少低利潤產品。同時，我們持續進行嚴格的成本創新活動，實現了獲利能力的顯著提升。我們預計這一趨勢將持續到2026年。

(spoken in foreign language)

（用外語說）

Now given the rising component prices driven by semiconductors, supply chain disruptions and lingering uncertainties in the broader external environment, full recovery in the market remains uncertain even in 2026, but we will strive to achieve differentiated results and profitability and future proofing. We will stick to our 2-track strategy with LCD focusing on profitability with high-end LCD and with OLED responding to new demand and preparing for new markets with tandem OLED-based differentiated products. We are closely monitoring the potential for OLED market expansion in IT. So we are closely monitoring the OLED market expansion in IT, but there is still insufficient visibility into demand to justify an 8.6 Gen investment decision and external uncertainties remain high, that could also affect demand. So for now, the company intends to monitor market conditions before making investment decisions.

鑑於半導體價格上漲、供應鏈中斷以及更廣泛的外部環境持續存在不確定性，即使到 2026 年，市場全面復甦仍不明朗，但我們將努力實現差異化的業績、盈利能力和麵向未來的保障。我們將繼續堅持雙軌策略，LCD 將專注於高階 LCD 的獲利能力，而 OLED 將響應新的需求並為新市場做好準備，推出基於 OLED 的差異化產品。我們正在密切關注OLED在IT領域的市場擴張潛力。因此，我們正在密切關注 IT 領域 OLED 市場的擴張，但目前對需求的了解仍然不足，不足以支持 8.6 代技術的投資決策，而且外部不確定性仍然很高，這也可能會影響需求。因此，目前該公司打算先觀察市場狀況，然後再做出投資決定。

(spoken in foreign language)

（用外語說）

In the tablet OLED market that is that continues to open up, we have solidified our leading position based on the differentiated competitiveness of tandem OLED technology at our sixth gen OLED fab. Monitor OLED is actively responding to the growing demand for high-end applications like gaming by leveraging our 8th Gen OLED fab. For notebook PC OLED, we are monitoring the OLED market size and the pace of demand shifting from LCD to OLED, maximizing existing infrastructure while developing future-ready technologies and mass production capabilities to retain a cost advantage even in competitive situation.

在不斷開放的平板電腦 OLED 市場中，我們憑藉第六代 OLED 工廠的串聯 OLED 技術的差異化競爭力，鞏固了我們的領先地位。Monitor OLED 正在積極回應高端應用（如遊戲）日益增長的需求，充分利用我們的第八代 OLED 製造流程。對於筆記型電腦 OLED，我們正在密切關注 OLED 市場規模以及從 LCD 向 OLED 的需求轉變速度，在最大限度地利用現有基礎設施的同時，開發面向未來的技術和大規模生產能力，以即使在競爭激烈的環境中也能保持成本優勢。

(Operator Instructions)

（操作說明）

Sang Kim from Kiwoom Securities.

來自 Kiwoom Securities 的 Sang Kim。

My question is with regards to the large OLED. Now thanks to the cost improvement as well as lower depreciation and amortization cost, it appears as if the profitability has been improving since the second half of the year. So then what is going to be the outlook for the TV and monitor OLED this year? And so based on the higher demand for the TV and monitor OLED as well as the lower depreciation and appreciation -- depreciation and amortization, does the company expect the profitability to continue to improve this year? And then also, the next question is now for the TV set companies, they are continuing to see sluggish differentiation and also worsening profitability.

我的問題是關於大尺寸OLED螢幕的。現在，由於成本改善以及折舊和攤提成本降低，從下半年開始，獲利能力似乎有所提高。那麼，今年OLED電視和顯示器的前景如何呢？因此，基於對 OLED 電視和顯示器的較高需求以及較低的折舊和增值（折舊和攤提），該公司是否預計今年的獲利能力將繼續提高？此外，下一個問題是針對電視機公司的，他們正面臨產品差異化緩慢和獲利能力下降的問題。

(spoken in foreign language)

（用外語說）

So there may also be some pressure to lower the price, but then what would be the company's response and also what would be the company's strategy down the road to continue to secure profitability in the large panel business?

因此，可能會有一些降價的壓力，但公司會如何應對？公司未來的策略又是什麼，才能繼續確保大面板業務的獲利能力？

This is Kim Yong Duck, in charge of Large Display Planning and Management. Now our large panel business, despite the external uncertainties and market volatility, achieved the intended panel shipment of approximately mid-6 million level in 2025, growing nearly 8% Y-o-Y. Now the white OLED for both TVs and monitors is recognized by the market and customers for their differentiated value compared to LCD. And that is why I believe that we were able to maintain such business.

這是負責大型展示規劃和管理的金永德。儘管外部環境存在不確定性，市場波動較大，但我們的大面板業務仍實現了 2025 年面板出貨量約為 600 萬塊的預期目標，同比增長近 8%。如今，白色 OLED 電視和顯示器因其與 LCD 相比的差異化價值而受到市場和消費者的認可。正因如此，我相信我們才能維持這樣的業務。

(spoken in foreign language)

（用外語說）

Now coming into this year, we see that the uncertainty remains and also the market growth potential still remains a bit limited, but the high-end market that we are targeting with OLED maintains a 10% share of the overall market. So then in 2026, based on this projection, we plan to continue strengthening our W OLED at the white OLED lineup for TV and monitors based on partnerships with global strategic partners. And on the back of such partnership. The target for panel shipment in 2026 is set at just over 7 million to grow by around 10% Y-o-Y.

進入今年，我們看到不確定性依然存在，市場成長潛力仍然有限，但我們瞄準的OLED高端市場仍佔據了整個市場10%的份額。因此，根據這項預測，我們計劃在 2026 年繼續加強我們面向電視和顯示器的白色 OLED 產品線，這得益於我們與全球戰略合作夥伴的合作。正是在這種合作關係的基礎上。2026 年面板出貨量目標設定為略高於 700 萬塊，較去年同期成長約 10%。

(spoken in foreign language)

（用外語說）

And for the mid to long term, OLED TV is expected to maintain unwavering leadership in the market while expanding our performance. And for especially for OLED monitors, it is also expected to see continued steep growth compared to other businesses. So we will continue to effectively respond to market trends and also reach an optimal production share between TVs and monitors to continue to expand our business performance.

從中長期來看，OLED 電視有望保持市場領先地位，同時不斷提升我們的業績。尤其對於 OLED 顯示器而言，預計與其他行業相比，其成長速度也將繼續保持強勁勢頭。因此，我們將繼續有效應對市場趨勢，並實現電視和顯示器之間的最佳生產份額，以繼續擴大我們的業務業績。

(spoken in foreign language)

（用外語說）

And again, for the short term, this year, there is some positivity expected from some sporting events. But at the same time, some side effects are also expected, especially coming from the supply-demand situation of components, especially semiconductor. So for the company, as we look ahead to continued market growth, our priority lies in securing stability in our production as well as supply.

此外，就短期而言，今年的一些體育賽事有望帶來一些正面影響。但同時，也預期會出現一些副作用，特別是來自零組件（尤其是半導體）的供需情況。因此，對於公司而言，展望未來市場持續成長，我們的首要任務是確保生產和供應的穩定性。

(spoken in foreign language)

（用外語說）

Now for our large panel business, we expect the competition to continue to intensify and it is incumbent upon us to continue to strengthen our technology and also differentiate our products so that we can keep expanding our business performance. So to that end, we will continue to work closely with our customers in close partnership to make sure that we can bring about win-win to all the companies involved with improved profitability. So we will continue to discuss our strategy to that end with our customers.

現在，就我們的大面板業務而言，我們預計競爭將繼續加劇，因此我們必須繼續加強技術，並使產品差異化，以便我們能夠持續擴大業務績效。因此，為此，我們將繼續與客戶緊密合作，確保所有相關公司都能實現雙贏，並提高獲利能力。因此，我們將繼續與客戶探討實現這一目標的策略。

Thank you very much, and that concludes LG Display's Q4 2025 earnings conference call. We thank everyone for joining us today. Should you have any additional questions, please contact the IR team. Thank you.

非常感謝，LG Display 2025 年第四季財報電話會議到此結束。感謝各位今天蒞臨現場。如果您還有其他疑問，請聯絡投資者關係團隊。謝謝。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標有（已翻譯）的部分是由現場通話中的翻譯人員翻譯的。本次活動的翻譯人員由活動贊助公司提供。