LG Display Co., Ltd. Q1 FY2025 earnings call

OLED-Centric Business: Continues to drive structural upgrades with OLED mix in revenue reaching 55%, up 8 percentage points year-over-year. ### IT Segment: Closely monitoring market moves, leveraging high-end LCD technologies like IPS Black and next-generation oxide, and tandem OLED for growth. ### Large Panel Business: Focuses on OLED-centric structural upgrades, with large OLED business expected to perform positively due to improved product values like low power and high luminance. Also, running efficient operational strategies and cost-cutting efforts. ### Auto Business: In-vehicle display adoption expands, with focus on fortifying position as global #1 in differentiated products and technology portfolio, including plastic OLED, ATO, high-end LTPS LCD. ### Investment: 2024 investment was KRW 2.2 trillion, 2025 investment expected mid- to low KRW 2 trillion, with profit-focused operations and conservative investment review.

In Q1 2025, LG Display reported revenue of KRW 6,065.3 billion, a 15% year-over-year increase. Operating profit was KRW 33.5 billion, sustaining the profit-making streak. EBITDA was KRW 1,231.3 billion with a 20% margin, the highest since Q3 2021. Area shipment in Q1 was down 19% quarter-over-quarter due to seasonality in mid- to larger panels but up 1% year-over-year. ASP per square meter was $804, down 8% quarter-over-quarter. Product revenue mix: Mobile and others revenue dipped 8 percentage points quarter-over-quarter to 34%, IT segment revenue share was up 7 percentage points quarter-over-quarter to 35%, TV segment revenue was flat quarter-over-quarter at 22%, auto segment revenue mix increased 1 percentage point quarter-over-quarter to 9%. OLED mix out of total revenue increased 8 percentage points year-over-year to 55%.

Q2 Guidance: Area shipment expected to decline by around mid-20% due to discontinuation of LCD TV business, while ASP per square meter is expected to rise by around 20% level. ### Investment: 2025 investment expected to be around mid- to low KRW 2 trillion, in line with previous communication.

Tariff Uncertainties: Volatility in downstream market and global trade environment poses uncertainties. ### Downstream Market Volatility: Persistent macroeconomic uncertainties and potential impact of tariff decisions on different product segments and geographies. ### Macroeconomic Uncertainties: Prolonged uncertainties affecting demand dynamics across various product segments.

Q: Understand changes in downstream market and customer response to US tariffs, and update on sale of Guangzhou LCD TV plant.

A: On tariffs, closely monitoring policy implementation and no critical supply chain issues or pricing pressures identified. On Guangzhou LCD TV plant sale, sales proceed figure is as previously disclosed, plant is running at full capacity, and proceeds will be used for improving financial standing and OLED business investments.

Q: External uncertainties and impact on business plan, competition among suppliers, and LTPO technology in second half.

A: Customers diversifying production base, but LG Display's smartphone business has strong capabilities and is running on original plan. Competition exists but LG Display differentiates via timely supply, quality, and preparation for future tech. LTPO technology in second half expected to drive volume expansion with year-over-year growth in OLED monitor and AI PC markets.

Q: Strategies for large business after discontinuing LCD TV, and impact of tariffs on shipment plan.

A: Large business focuses on profit-centric operation with two pillars: providing differentiated product portfolio and stringent cost savings. Tariff impact on large panel business currently limited, but set makers may be directly impacted in future, with LG Display securing supply flexibility.

Q: Outlook for IT product demand, differentiation in IT market, and IT LCD profitability.

A: Need to monitor changing demand due to tariff and macroeconomic uncertainties. LG Display has technological edge in high-end LCD and tandem OLED, offering optimized portfolios. Forecast growth in OLED monitor and AI PC markets, with profitability enhanced through cost innovation and partnership with top-tier customers.

Q: Short-term and mid- to longer-term outlook for auto business, growth and profitability.

A: Auto business sees gradual recovery, with in-vehicle display adoption expanding. Mid- to longer-term, expecting steady growth with CAGR of around 10% over past 4 years, and aiming to triple auto business revenue in 3 years through new technologies like pillar-to-pillar display and switchable privacy.