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Q1 ’12 Earnings Results Apr 24, 2012
Q1 ’12 Earnings ResultsApr 24, 2012
Disclaimer
����This presentation contains forward-looking statemen ts. We may also make written or oral forward-looki ng statements in our periodic reports to the United St ates Securities and Exchange Commission and the Kor ean Financial Supervisory Service, in our annual report to shareholders, in our proxy statements, in our o ffering circulars and prospectuses, in press releases and o ther written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, includin g statements about our beliefs and expectations, are forward-loo king statements. These statements are based on cur rent plans, estimates and projections, and therefore you should not place undue reliance on them. Forward- looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
�Forward-looking statements involve inherent risks a nd uncertainties. We caution you that a number of important factors could cause actual results to dif fer materially from those contained in any forward- looking statement. Such factors include, but are not limit ed to: our highly competitive environment; the cycl ical nature of our industry; our ability to introduce new products on a timely basis; our dependence on growth in the demand for our products; our ability to successfully execu te our expansion strategy; our dependence on key pe rsonnel; and general economic and political conditions, incl uding those related to the TFT-LCD industry; possib le disruptions in business activities caused by natura l and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currenc y exchange rates. Additional information as to the se and other factors that may cause actual results to differ mat erially from our forward-looking statements can be found in our filings with the United States Securities and Excha nge Commission.
�All financial information contained in this documen t is based on consolidated IFRS.
����This presentation also includes information regardi ng our historical financial performance through Mar . 31, 2012, and our expectations regarding future perform ance which is available on our investor relations we bsite at http://www.lgdisplay.com under the file name Q1 2012 Earnings Results Presen tation .
1. Q1 ’12 Earnings Results
2. Performance Highlights
3. Q2 ’12 Outlook
Q4 ’11 QoQ YoYQ1 ’11Q1 ’12
N/A-239
-4% 41%577
-115
-202
-4%
11%
Q4 ’11Q1 ’12 Q1 ’11
6% ↓↓↓↓ (QoQ)15% ↑↑↑↑ (YoY)
-178
812
-129
-197
-3%
13%
-145
849
-6
-133
-2%
13%
1,000
7,000
6,000
5,000
4,000
3,000
2,000
5,3665,366
8000
6,1846,184 6,6106,610
N/A
N/A N/A
N/A N/A
Revenues & Profits
Revenues Profits
(Unit : KRW B) (Unit : KRW B, %)
3
* EBITDA = Operating Income + Depreciation + AmortizationSource : Unaudited, Company financials
IFRS (Consolidated)
OperatingIncome
Net Income
Income before tax
EBITDA*
126%148% 145%
85%79% 76%
15%22%
29%
Q1 ’12 Q4 ’11 Q1 ’11
Assets 24,532 25,163 24,325
Current Assets 7,383 7,858 8,541
Cash* 2,393 2,333 3,012
Inventory 2,198 2,317 2,505
Non-Current Assets 17,149 17,305 15,784
Liabilities 14,533 15,032 13,570
Current Liabilities 9,691 9,912 10,015
Non-Current Liab. 4,842 5,120 3,555
Shareholders’ Equity 9,999 10,131 10,755
Debts 5,254 4,610 4,605
Net Debts 2,861 2,277 1,593
Q1 ’11 Q1 ’12Q4 ’11
Financial Positions & Ratios
Financial Positions Financial Ratios(Unit : KRW B) (Unit : %)
Source : Unaudited, Company financials
* Cash includes short term financial instruments.
4
IFRS (Consolidated)
Current Ratio
Net Debt toEquity Ratio
Liabilities toEquity Ratio
Cash Flow
Source : Unaudited, Company financials
Cash Flow StatementNet Cash Flow(Unit : KRW B) (Unit : KRW B)
* Based on cash flow before financing activities
5
IFRS (Consolidated)
677 Financing activities
(617)Cash flow before financing activities
2,393Cash at end of quarter
60Net change in Cash
677Cash flow from financing activities
(1,273)Cash flow from investing activities
(275)Others
70Change in Working Capital
990Depreciation & Amortization
(129)Net Income
656Cash flow from operating activities
2,333Cash at beginning of quarter
Q1 ’12
Depreciation
Change in WC
Capex
OthersNet income
Cash In Cash Out Net
990
-1,273
60
-129402
70
7,442
8,1008,414
8,089
6,757 705
708
684669
747
0
2,000
4,000
6,000
8,000
10,000
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12$0
$200
$400
$600
$800
$1,000
Total K m² ASP/m² (USD)
Shipments and ASP
6
Net Display area shipment in K m 2
ASP per m 2 (USD), LCM based Source: Company financials
Notebook
Monitor
TV
Mobile etc.
50%
100%
0
48% 48% 47% 47% 47%
24% 20% 19% 20% 21%
13% 14% 13% 15%
5% 11% 11% 9% 5%
9% 8% 9% 11% 12%
14%
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12
Tablet PC
Revenue: Product Mix
Source: Company financials (KRW)
7
P7
P61 ~ 2
P1 ~ P5
P81 ~ 3
Capacity
Quarterly producible capacity by area (M m² )
Q4 ’11
10.711.2
11.5
Q3 ’11Q1 ’11 Q2 ’11
11.1
10.2
Q1 ’12
Source: Company financials
Outlook
12
►►►► Total Shipment in m2 (QoQ)
• Around 10% ↑↑↑↑ QoQ
►►►► ASP
• Slight upward trend expected
Q2 ’12
Questions and Answers
Appendix
11.2
-3.8
5.0
-2,202
-788
-1,081
2,727
-924
1,210
23,081
24,291
2011
13.1
-2.9
5.3
-361
-129
-197
812
-178
328
5,856
6,184
Q1 '12
12.8
-2.2
5.2
-17
-6
-133
849
-145
345
6,265
6,610
Q4 '11
7.3
-7.8
2.9
-1,921
-688
-695
456
-492
180
6,088
6,269
Q3 '11
14.0
-0.8
7.5
60
21
-51
845
-48
451
5,596
6,047
Q2 '11
10.8
-4.5
4.3
-323
-115
-202
577
-239
233
5,133
5,366
Q1 '11Accounts Q1 '10 Q2 '10 Q3 '10 Q4 '10 2010
Revenue 5,876 6,454 6,698 6,483 25,512
COGS 4,639 5,125 5,927 6,089 21,781
Gross Profit 1,237 1,329 771 394 3,731
Operating Income 789 726 182 -387 1,310
EBITDA 1,421 1,433 986 396 4,236
Income before tax 842 604 244 -424 1,266
Net Income 649 555 224 -268 1,159
EPS (Unit: KRW) 1,813 1,550 627 -750 3,240
Margins (%)
Gross Margin 21.1 20.6 11.5 6.1 14.6
Operating Margin 13.4 11.2 2.7 -6.0 5.1
EBITDA Margin 24.2 22.2 14.7 6.1 16.6
12
Source: Unaudited, Company financialsIFRS (Consolidated)
IFRS Statements of Income
Unit: KRW Bn
Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.
22.5
28,314
10,131
3,722
888
15,032
2,317
2,333
25,163
Q4’11
28.6
27,944
9,999
3,467
1,787
14,533
2,198
2,393
24,532
Q1 ’12
25.4
28,458
10,183
3,482
1,133
14,591
2,369
2,032
24,774
Q3’11
21.1
30,115
10,776
2,864
1,775
13,894
2,822
2,364
24,670
Q2’11
14.8
30,056
10,755
2,495
2,110
13,570
2,505
3,012
24,325
Q1 ’11Accounts Q1 ’10 Q2 ’10 Q3 ’10 Q4 ’10
Assets 20,767 22,942 23,793 23,858
Cash* 3,144 3,212 3,146 3,134
Inventory 1,716 2,256 2,492 2,215
Liabilities 10,246 11,858 12,504 12,797
Short-term debts 1,329 1,393 1,855 2,100
Long-term debts 2,300 2,558 2,365 2,543
Shareholders ’’’’ Equity 10,521 11,084 11,289 11,061
BPS (Unit: KRW) 29,403 30,977 31,551 30,912
Net debt to equity ratio (%) 4.6 6.7 9.5 13.6
13
Unit: KRW Bn
IFRS Statements of Financial Position
Source: Unaudited, Company financialsIFRS (Consolidated)
* Cash includes short term financial instruments.
Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.
-801
6
-179
-106
-522
-4,182
3,660
979
-182
3,651
-788
2011
301
0
0
58
243
-1,223
1,466
638
-160
994
-6
Q4 ’11
60
0
0
677
-617
-1,273
656
70
-275
990
-129
Q1 ‘12
-332
0
0
-252
-80
-947
867
289
318
948
-688
Q3 ’11
-648
3
-179
36
-508
-1,021
513
-250
-151
893
21
Q2 ’11
-122
3
0
52
-177
-991
814
302
-189
816
-115
Q1 ’11Accounts Q1 ’10 Q2 ’10 Q3 ’10 Q4 ’10 2010
Net Income 649 555 224 -268 1,159
Depreciation & Amortization 632 707 804 783 2,926
Others -144 369 -77 351 500
Working Capital* -187 -423 71 873 334Cash flow from operating activities 950 1,208 1,022 1,739 4,919
Cash flow from investing activities** -765 -1,126 -1,469 -2,155 -5,515
Net cash flow before financing activities 185 82 -447 -416 -596
Financing Activities -376 165 381 399 569
Dividends 0 -179 0 0 -179
Change in non-controlling interest
17 0 0 5 22
Net change in cash -174 68 -66 -12 -184
14
Source: Unaudited, Company financials IFRS (Consolidated)
* Working Capital consists of net change in AR, Inventory, AP and F/X effect** Cash flow from Investing Activities exclude increase (decrease) of short term financial instruments.
Unit: KRW Bn
IFRS Statements of Cash Flow
Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.
2,727
238
3,413
-924
2011
849
65
929
-145
Q4 ’11
456
63
885
-492
Q3 ’11
845
58
835
-48
Q2 ’11
577
52
764
-239
Q1 ’11Accounts Q1 ’10 Q2 ’10 Q3 ’10 Q4 ’10 2010 Q1 ‘12
1. Operating Income 789 726 182 -387 1,310 -178
2. Depreciation 596 666 761 734 2,757 927
3. Amortization 36 41 43 49 169 63
EBITDA (1+2+3) 1,421 1,433 986 396 4,236 812
15
Source: Unaudited, Company financials IFRS (Consolidated)
We add depreciation and amortization expense to ope rating income to calculate EBITDA. It is a key fina ncial measure used by our senior management to internally evaluate the performance of our business and for other required or discretionary purposes.
We believe that the presentation of EBITDA will enh ance an investor ’’’’s understanding of our operating performance as we believe it is commonly reported a nd widely used by analysts and investors in our ind ustry. It also provides useful information for comparison on a more comparable basis of our operating perform ance and those of our competitors, who follow different accounting policies.
EBITDA is not a measure defined by GAAP. Our calcul ation of EBITDA may not be consistent with other si milarly titled measures reported by other companies.
Unit: KRW Bn
EBITDA Calculation
Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.
