LG Display Co. Ltd. Q1 2023 Earnings Call
Example, again in <unk>.
<unk> LCD TV company PGE comes on the.
To understand Concannon video chomping at the Esport and 10000.
Perfect, which parochial question Peter.
Next in area shipment and ASP per square meter.
First quarter area shipment was down 46% Q on Q reporting for two 4 million square meters on the back of muted downstream demand and seasonal shipment declines across all product segments as well as downsizing of the Companys LCD TV business with the closure of domestic LCD TV fab end of last year.
Typically a ASP per square meter follows a downward trajectory during the first quarter as mobile demand seasonally declines during this period, but this quarter on a lower LCD TV mix, whose ASP is the lowest ASP per square meter actually increased 20% Q on Q reporting 850 <unk>.
Dollars.
I am an entrepreneur mutual region, one might assume that it gets me though.
TB downsizing rule to be able to embed should be doing some funky Debbie you put into point becomes one she cooper them.
Smeal it even when they may be doing hundreds of origin government. Some superb people close to me though.
My guitar boom it shall be June cause or Tokyo in return and Archer albums at all so I'm going to get maybe it wasn't the point that comes on you'll come to be put into riskier against me, though what was up in the name of children and young cerebral email. So nantong Adobe is put into tremblant aimed at children Kyriacos meal, you won't give me it will be June .
Put in through Q2 kilometer.
We already mentioned, we determine the ultimate mobile OLED as a company keto chocolate too young at all so I'm going to get the Bureau, and incomes of asthma, how could you could order a meal.
So nantong Iranian ships are important to point to an open possible put into riskier pessimism.
In terms of the revenue breakdown by each product segment on the back of downsizing of the LCD TV business revenue mix of the TV panel was down six percentage points Q on Q reporting 19% while panel next we put at a relative increase recording 38%.
Driven by seasonality and ensuing decline in panel shipment mobile and other products saw their revenue mix dip by two percentage points Q over Q2, 32%.
Auto business continued to show steady topline growth reporting mid 20% revenue growth year over year with its revenue mix at 11% this quarter.
OLED revenue mix was lower Q on Q due to seasonal declines for large and mobile OLED, but on a year over year basis, driven by sustained effort towards business structure upgrades OLED revenue mix was up 13 percentage points reporting 45%.
AMA and Tim Whelan, our mutual Japan without all of them.
Some of that on or some sort of a pet something go bad parts about one rule of thumb. John Swinburne, you can learn sheet October Rudy Junior meal. So I got one juggles with UNH everybody reads October sidamo, Mr. Illegal mutually welcome everyone Samsung duos on each or put some vegetable neutral quite similar.
Next is on the financial position and key metrics companies.
Companys cash and cash equivalent was three trillion 894 billion one maintaining above the mid <unk> three trillion level.
While on the back of active inventory management to keep it at the minimum level Q1 inventory was flat Q over Q at two trillion 811 billion won.
Yeah.
Tim will be able to take them down the road, so I'm going to either be it hung somehow smeal puts abuse ebix has put into.
Computer and Peggy can you put a team leader.
Key financial ratios were up Q on Q on rise in debt with debt to equity ratio of 248% and net debt to equity ratio at 126%.
Good throw young men and women of the Detroit hung with them comes or some type of attrition, but when it all similar to what I'm gonna be beats in gummy, all chemo younger men at some point could there be some tons of attrition, but ones in gun Hangzhou put some Quebec plus about one kilometer.
In terms of cash flow the opening cash balance was three trillion 547 billion won and with increase in cash inflow from financial activities. There was an increase of 347 billion when Q over Q reporting ending balance of three trillion 894 billion won.
Tom I know you won't give guidance limiter, so I'm going to give them. Some good production sung yoon Shin oak, which months, even getting into some other troubling because theres some of yoga and autonomy.
Maybe Jim Jones of Penguin Shrug off after a quarter or some other ways to me, though yet.
Yet there are SRAM undergone some funky Debbie support until for donating cause I you don't give me that.
Doctor Concannon casual.
Mobile long tenor.
So I'm going to either be hundreds to bump into her a cocoa so lots of Malawi is similar.
Next on Q2 guidance, although market Volatilities and uncertainties persist, we expect pickup in seasonal demand following the launch of new models from each product segment in the second quarter driving Q over Q shipment growth for large and mid sized panels.
Such area shipment is expected to rise by around 10% Q on Q.
Seasonal declines in mobile panel shipment and ASP per square meter is expected to fall mid single digit on a Q over Q basis.
Yes.
Yes.
Utah tons shipped bookings and underway key highlight it gives me that.
Next our CFO sang Don Kim will walk through key highlights.
Yes, because your bookings and then even though.
Good afternoon. This is CFO sang Don Kim.
Shimon will get real global Moon casual took pieces.
She's not able to use June close given the pressures from the inclusion of making them. So beautiful goods sort of display panel the supergene got some bonds hangover.
Two quarters are going to pay them or doing some huge deals.
Uh huh.
Hi, I'm disappointed if it was an absolutely a younger but implemented quickly.
With smeal to first half.
Could you could also look at sharing rule Hdtvs hope it a minute ago Shlomi bitumen.
To me to be canceled.
Yes.
Looking back over the first quarter difficult market backdrop continued as last year's macro uncertainty has persisted while inflation squeeze down on consumption, which drove muted demand for display panels with inventory question is continuing in the downstream industries.
In particular sluggish demand for high end product was more pronounced versus what was seen previously for general BTC products and as the company downsized its LCD TV business as part of the strategy to advance its business structure shipment and revenue declined by somewhat of a large margin compared to previous years.
Oh.
He runs our community.
And then some days are going to move them to pay them. So bear with me.
When quakes in coupon due upon them to collect and we talk to Richardson.
Who depend on pool assemblers.
As homebuilder grow to push Qdoba witness how long a meter.
To respond to such business environment. The company has engaged in preemptive inventory cuts rationalized operation of large panel business and actively and intensely reduced an innovated our cost base in order to narrow the extensive fluctuation in profit.
Yeah.
Most of them are opportunities appearing on the penalty for gossip Super mirror or pone longer coach.
So feel good book to learn so much to me somewhat skewed audience, how long it usually was similar.
As I mentioned, we're going to have some tables, so could you put us sooner.
Welcome to the club.
Peter.
Under continuing slump of the downstream industry market dynamic has been such that panel shipment has been weaker below actual set sales for around one full year now, making it difficult to predict the exact timing of recovery or normalization of sell through of demand. Accordingly, the company is focusing on <unk>.
Covey of its financial soundness, and upgrading to advanced business structure in order to pull forward it's execution capabilities.
Although you do some <unk>.
<unk>.
So it looks like in settlement reached in English.
So some component.
Then I'm, giving you so target when you get in doing so we'll come on to share.
Hope to talk to their cost for Qdoba.
Two buildings arguments to the Pokemon go well, it's so convenient.
To a point to make as we go but.
<unk> came in with a strong sense oxygen them. So could you put <unk> on the road.
Get them done.
First to strengthen our liquidity position in Q1, we entered into a strategic financing arrangement with LG.
Through this arrangement, we were able to expand business cooperation while at the same time strengthen stability in operating our funds in the face of uncertain external environment.
The funds raised will be used to bolster our financial strength developed products and technologies to strengthen our OLED business and to further advance company's business structure, such as through driving market, creating businesses, including transparent and gaming OLED applications.
Samsung gear to eligible retirement option as I come to the Hilton.
So we'll talk on a scalable audio in our opinion.
Retail machine endurance and withdrew from the poker give me the Evo.
Carlos you move your toughest homes.
How long do you and Tom and Docs, who took this will ensure now to mobile world Congress of occupancy turnover with them either.
Also throughout the first half we plan to tap into multiple financing options to further strengthen our liquidity position and buildup and agile financial structure to flexibly respond to challenging environment. This will push up some of our financial ratios, but after the start of the second half on gradual earnings improvement.
We will enhance financial metrics in stages.
Oh.
So could you could automate insulin could commit on travel between Teng Woodrow broccoli another shipment. So zhangzhou two instrument peers remarked to talk to reach you know fabulous under new.
Davidson.
On the EBITDA.
In terms of upgrading the business structure by growing the contribution from order based business, where volume and price can be managed favorably based upon close collaboration with our customers. We plan to focus our capabilities on future proofing and bolstering competitiveness towards differentiation.
So John based on some attribute June we'll do those hospitals to Banca <unk>.
Tongue in.
To support them to sustainable total hope with similar.
Would it sugar is union, who will go over to Bob Wells.
Hooked in Hampton, Southern New display tool, which was $1 <unk> pokemon go to trigger changes in tablet, presumably due to young led to two minutes and then.
His leadership will be burned through each one is.
<unk> summit.
So the dosage from beautiful kick them, though.
Share of order based business increased two early 40% this year and our target is to reach 70% in two to three years' time.
High value added mobile products slated for additional mass production. This year will see increase in shipment, while we solidify global number one positioning by securing orders and growing revenue from displays for automobile application.
For the mid size OLED, including OLED for tablet Pcs, where investment is currently ongoing we plan to thoroughly prepare for supply and mass production in 2024 underpinned by technology leadership.
She doesn't condemn scenario young consumer pins, how big an <unk> chip.
Talk to you Timna, we similar to Purdue to visual look to component continue to come on <unk>.
Premium Tvs.
She's a corona.
<unk> related and she doesn't consume oxygen, though put a customer called kicking me though.
Cumulative probably between Britain go hug.
<unk> seen and so Johns Hopkins medical genomic diluted look through original.
Tabular conversion economy besides from VA.
Can you give me though.
So the supply and demand basis, where market Volatilities are high we are focusing on high value add segment for large outlets. We are broadening the lineup of differentiator products underpinned by stronger fundamental competitiveness in I E brightness and power consumption and through cost innovations we plan to.
<unk>, a premium TV market positioning and accelerate market, creating businesses, which include transparent and gaming OLED applications.
The order based business, where volume and price are more favorable as we can engage in close collaboration with customers. We will continue to grow its share and focus our capabilities on future proofing and bolstering our competitive edge.
Yeah.
Sure I'll hit production productions.
So Neil do you need to pull so long ago, <unk>, Dave Wichmann condo NEPOOL tune them to do to grow <unk>.
Vw's, who pocket on vehicles grow tomorrow with solar.
Samsung <unk> assume rule, how long do you tune in.
Since <unk>, Timothy Penner, Mis Yogurts and Google Mobile search algorithm. So Julien so based on cargo conjuncture grew up to them and so how long does it take a moment a similar number in the ruble tremendously to ultrasound.
Peter.
Market, uncertainties and volatility still run high and although demand is muted and inventory adjustment continues in the downstream driven by intense cost saving efforts, we expect Q2 profit to marginally improve versus the first quarter.
As he bought them out in the first half following recovery of inventory levels and soundness thereof across the overall ecosystem of the industry in the second half of the year, we will see rising demand for panels and with increase in shipment for our mobile products and positive performance from the order base businesses, we plan to achieve a turnaround in profit in the <unk>.
Second half of the year and drive earnings improvement on a full year basis.
Sure Colin.
But with two months to move a little sooner.
And on the <unk> balloon, but honestly news how could you could order tania audience target.
We mean funko reportedly citadel sizzling Pachysandra comes on.
Notwithstanding unprecedented weakness in the market by advancing the business structure that will form the basis for steady earnings going forward and stronger financial soundness, we commit to do our utmost to overcome this difficult situation with speed and drive meaningful results. Thank you.
<unk>.
It sits o'neil I put them out to give me the Palmer and Chilean deficit through I guess mid Oh.
Operator, Chilean debonair protect Remitter. This brings us to the end of the earnings presentation for Q1 2023, we will now go into quick questions. Operator, please commence with the Q&A session.
Given the tragedy in debates that I guess.
That came on in his opening John I'll give up <unk> human nature.
<unk>, one <unk> 2 million.
<unk> Neto protected and meter now Q&A session will begin please perhaps darwin that is darn one if you have any questions questions will be taken according to the water yeah, perhaps just starting number one.
Please press star two that is doron too on your phone.
Joe lowest many chances as possible within the restricted time, we would appreciate only two questions per participant.
Tom what are the managers have been in <unk>. One. The first question will be presented by <unk> from Kb Securities. Please go ahead with your question.
Yes.
So no longer boom powder to mitigate some of that.
Monza <unk> and <unk>.
She names how long is it.
Chung with TPG.
It is.
<unk> done pretty.
<unk> taken a number based on booked in really deep organizing youll get some money there.
The comment so much on the cable synergy.
And it will be on October six on getting back to you guys in India.
I'm going to take them.
And then second is doing that and seeing some to Angela Merkel William <unk> looks like.
We haven't yet.
I mean, the elements within that began to embedded management you are to uremia and seek some gains and then again.
Oregon.
I think we're going to look heavily at will it be a killing power.
However, you're right there.
Years ago honestly connecting to eating at home applications you are.
Are you doing that though six homecare, so maybe 2 million young days ago.
Thinking about Canada.
Okay.
Thank you for taking my question I have several questions relating to your large panel business as well as to meet related to your mid to small sized panel business first can you provide some color as to how things are going with regards to your plan to sell all of your plans and thoughts in Guangzhou and part two.
If you could also provide a little more color on the entire LCD TV fab exit roadmap that will also be quite helpful and according to the press coverage.
I would like to understand what your assessment is with regards to the likelihood of your success does abbvie. The large panel OLED and acquiring of new customers compared to your past endeavors and also would that mean that we can expect to see some improvement in your profitability on your white OLED business going forward.
And second question relates to your P. OLED business. Your profitability has not been all that great and also the amount of sold volume was quite low at below about $14 million with slight to understand whether you see that going forward as we enter into the second half of the year, we will see improvement in profitability in a meaningful manner.
As well as improvement in volume another question relates to your tablet OLED business for next year.
What is your assessment as to your positioning on.
On your key customers vis vis your competitors and can we look forward to profitability improvement from this business at all.
Thank you David Dunkel.
No it.
In our opinion, a little like what you did is Amanda mathematically total credit for that.
Yes, I would respond to the first question on LCD exit planning.
I think that speaks nanny Aamac Mickey D TV inventory.
Cool.
Oh, well that's good to move price a day should you pay for it.
Pleasant disciplined downsizing is when youll have with Nida.
As you are already aware, we closed down our domestic LCD fab end of last year and we are currently running our China eight generation fab at about 50% we have downsized the running of that is China fab.
Actually <unk> you Amy I don't buy no collateral control Denise No wonder what you said at TV baboons, hoping they go go to Indonesia.
Now with regards to the LCD TV fab, if we are looking at various different aspects to come up with ways to meaningfully utilize the LCD TV fab and at this point, we are carrying out with initiatives to sell off our domestic gen seven TV fab.
And how do you conduct than it is on that and do it on any of that.
So you don't put too much downside.
I see.
The nonpayment of Shannon and their conclusion.
And with regards to other Fabs, we are at this point and tapping into various different options that could help us maximize the profit of the company by looking at potentially transitioning it or migrating it for a different use case or two selling it off or maybe engaging in strategic partnerships.
There aren't a lot of marketing number you want to me though.
Hum.
The Cougars.
Oh.
We are doing over there.
Thomas.
Hello, I am Wonder Lee in charge of large display marketing before I provide you with an answer I hope that you could appreciate and understand that it will be difficult for us to provide you with any specific information that relates to our customers.
Okay.
Oh.
Vertical with some young.
Hum.
Neither.
So are you doing.
It's really enjoyable.
Similar to the Permian.
To control we have over here on a regular school.
Oh.
Okay.
We're comfortable.
Ooh.
David known cooperative or go to <unk>.
Well you're quite right.
Okay.
The company as we speak is really endeavoring to bring improvements with regards to our overall customer relationship and the overall dynamics of the structure.
We will very actively engaging collaborations with any customer.
Who we deem we could create mutual synergies and who really appreciate and understand the value of OLED at the same time. We are at this point are continuously strengthening.
Our other businesses, including gaming and transparent OLED applications that fully utilizes the strength of the OLED technology. So that we may further bolster our business portfolio in the future.
Sugarman.
I'm going to walk through.
Tom.
Cool.
The pivotal program.
<unk>.
100, <unk> <unk> Sidoti.
No.
Probably longer.
Paul couldn't volume at all.
Now if you look at the recent macro environment. The Volatilities are running high and we have seen Mike It really significantly dampen and if you look at the sluggishness in the market demand what we experience in the high end market, including the OLED TV is much weaker compared to what we previously.
As explained in our general purpose PTC products.
Okay.
So you are you.
You too.
We'll get to the.
Hi, Brian .
Andrew.
Parallel to the unknown.
Pardon me Debbie hung up with demand.
Oh, sorry.
So I'm done and.
Hundreds of <unk> fusion or whatever.
So.
You should talk carefully.
Part of it at all.
You and Tom Dugan belonged in Ghana, So gung tubular Carter to go with.
So under this backdrop, we have seen during the first quarter in terms of the OLED panel shipment.
Really perform weaker compared to the actual set sales or sell through due to the fact that there has been a the inventory adjustment and I said customers as well as from the channel as well as influenced by the slow seasonality on the other hand from our major customer LTE we.
Have seen through preemptive inventory adjustment as well as cost efficiency efforts, we have seen significant improvement in terms of our performance for the Q1 and going into Q2, we expect to see a gradual improvement in terms of the volume as well as in terms of our market position.
Yes.
Yeah.
Yes.
We're already starting to take my money.
Tony Youre on some of the rule.
Audio and Hungary.
Well, let me from doing Yoki brand through high end Tvs.
Uh huh.
Overall comment on that.
Yes.
So based off of this assessment, our expectations are positive expectations going forward for the large OLED market still stands it is still valid and despite the difficult situation by utilizing and leveraging our competitive edge that we have in the OLED.
We will continue to strengthen our positioning in the high end TV market.
Smith <unk> Wesson delay that'll convince me that can you Anita.
If this is the CFO I will respond to your question about the volume growth for smartphone.
Thanks, Matt.
Thank you gentlemen.
To go to panel Sundance 7000 meter.
Now if you look at our company's smartphone capacity based on generation six well capacity is 30 K and this year, we will be adding at 115.
15 K more.
Hello, and welcome to <unk> 31 in Brooklyn got Peter asking Guy goes for today, and we see that and we expect to see that our volume growth will be aligned with such capacity additions.
No marketing should sound can tell when he was out.
<unk> will lead to your question is a patent litigation.
Hello, I am Taiwan, Kim in charge of medium display marketing I will respond to your question about tablet with it.
So I'm wondering if any of them.
Thank you.
Tablet cheaper two minutes I'll touch on shortly.
I'd like to come back would you present to you some position there.
With similar.
Related.
So puneet, Arizona, you keep putting sensors and that puts us on Humira tomorrow.
As we start to enter into the OLED tablet segment in the first half of year 2024, we are expecting to have a share of about 50% and our strategic customer and the OLED tablet segment and in terms of the overall OLED tablet market we are.
Seeking to have more than 60% positioning.
Yes.
When Liberty Liberty pulling it all together you're going to fix.
<unk> suite of condoms on guanaco lymphoma.
Uh huh.
Now as we enter into this tablet OLED business. We are looking forward to two areas of improvement in terms of profitability and narrowing the volatility of earnings performance.
And I'm just wondering if you could be.
This isn't a pan Nordic hydro title that combines.
The tree cutting summer it took off discovery.
Two genuine smart Tvs tablets.
Hum.
In order to do.
Someone from doing some of that goes through.
Yeah.
Now because the panel price is two times higher compared to the LCD price. We are looking forward to a higher and higher levels of revenue growth and also secondly, compared to smartphones tablets have a much lesser seasonal volatility across the first half in the second half of the year.
We believe or we hope to see a reduced extent the volatility experienced in the first half of the year.
Tom.
A meter.
Take the next question please.
What are the German energy opening some Belgium go ahead Tony.
Your next question will be presented by from Samsung Securities. Please go ahead with your question.
Yes.
I mean, it sounds quite challenging.
Sure Okay. So.
So thanks.
John that's helped in time to be joining for the class.
We saw some of them.
Okay.
Total managed which is all Sega switching tunnel complementary type businesses.
Please target complementary.
So you won't get between.
I'll turn the time to be doing so.
That will go on the road.
On that I'll go to put somebody in the legacy <unk>.
Can I I'll try bucaramanga.
200, and then yield.
Or to display to wonder is can we talk.
A couple of items.
Congrats on a chip.
Bill Crooker, where Ken maybe you can just tell me.
Hey, John .
Some are temporary some common location G <unk>, even if it turned out pretty good.
Okay.
Thank you for taking my question from Samsung Securities.
During the presentation and CFO mentioned that you are looking to increase the revenue mix from the order based business from our two from 40% to above 70% going forward into the future.
I'd like to ask for more color with regards to this is that in the first half of the year I see that your auto apt.
Application business accounts for 11% of the total mix and can we expect to see this increased to 40%.
At the end of the year and what would be the key driver that will enable that and also if you are seeking to expand your audio display business and also expand your order base business I would assume that your customers would want to have a what I want to confirm the level of capacity that you can provide them, we'd like to hunt understand what.
Your business management plans are with regards to capacity management.
Okay.
So can you give me that you'd be willing to say that all the data that'll convince me that yes, hi. This is <unk> Kim I am the CFO I will respond to your questions.
Oh, Tony go to Jeremy Lagoon that intimated in London.
Our mother listened in and listen Aida.
Oh, good morning to you.
You on demand.
I know, there's always forget the diamond winning pseudoephedrine, Sony coupon is all kept that.
Cool cool.
When she comes along at that up.
Jason you can gain on that.
We'll go to Canada TBN in Gloucester.
And what I'll tell you this is Jos Humberto.
You bet.
When we say order based business, we are not just referring to the auto business. The concept of order based business is.
His comp is I guess is opposite to what we are used to in the display industry whereby the display industry has usually been based off of a supply and demand dynamics based upon the growth of the market, but the companies usually did was build out capacity add capacity before.
Before the actual orders come in and there has been significant market fluctuation that hence the companies were exposed to so the order based business is a concept that is a you know an opposite to this demand and supply base dynamic.
That's also jump at Eastman.
Yeah, I mean, our commitment today basically is all based on what we know what they need.
Is there any sort of sponsor will begin CBA assumed it would not be doesn't have today.
I see.
Thanks Helane.
I think some of that.
Now in that sense, the order base businesses.
Basically under this mechanism that the volume of the business is managed based up based upon the agreement or contract as well as communication with the customers. So it provides one with a clear visibility and stability as compared to the demand and supply base business.
Danielle <unk>.
Well my point.
<unk> Neal.
Probably needs it goes on to mutually pool now multiple times.
They're going through that.
So based upon that definition.
This order based business would include tablets mobile phone watch and auto applications and auto as you've correctly mentioned it makes it will be around 10%, whereas everything else will account for around 30%.
What are the D C.
So this isn't gonna BDC VW tiguan something cool.
For someone who knows how many you'll know that chinas auto market.
So you can just give me that.
So auto business in terms of its order backlog and business visibility is very high and quite clear.
With regards to how the auto business will play out going forward I will turn it over to Mr song from auto marketing to respond to that question.
There were two buckets here.
Yes, I am Q zone from auto marketing.
Armando Torres.
But for me to Tango airports and got you said, there's a bunch of our summer till you get a.
Responding first to the overall growth trend in terms of the top line revenue and order backlog for auto businesses allow me to speak on that first.
<unk> on your bonds.
My son's orders hanging around noon also to come in.
So autonomous.
Just hanging on the August proved homes on a cool you should be a motivator for noon doctors put all hung Chung UK Sundar.
Now auto business as of the first quarter, we actually reported above three trillion and the orders booked and on a YTD basis in terms of the order backlog. This is a 20% growth and compared to end of 2021, 70% growth.
And in.
Or is.
I'm known this room, Doug your daughter's hung around them, but to remove a millionaire automaker modules from China of course, with all the time and hopefully sooner.
And so for the auto business the revenue for year 2023 in three Years' time, we expect to see about a twofold growth going forward.
Going above the two trillion.
In three Years' time.
Within three Years' time excuse me.
Yeah.
Tom Salmon.
Peter.
Next question please.
Pamela German attitude, but in high 2000, Guanajuato ones, hoping you mean over the next question will be presented by <unk>.
<unk> Zhang from Hi investment <unk> Securities. Please go ahead with your question.
Yes.
<unk> controls.
So no.
As always a tool to add some additional color on the chicken.
Thank you Jean <unk>.
Ill children, you're going to linger LCD TV panel.
I'm sorry.
To display Jonathan J J took bitumen.
Vehicle.
It gives me hope that.
Two young women that you can take them altogether that envelope, who in Asia with the TV Tokyo.
Albeit as well.
She took it on your computer.
Sure.
So that's generally positive.
So how long do you need to hit us on the pension.
<unk> had another good and so you're looking at.
And in wholesale.
Key.
Okay Tony.
Alright, Danielle Fugere.
We'll get you on your take on how to do so that's attributable to one question. If I can go get on them.
It wasn't again producing something thousand G. You don't go through 'twenty.
I, just don't mean in English and G <unk>.
Okay.
Excellent.
I'm, telling you that.
Yeah.
Oh, yes.
With regards to your long term horizon approach you talked about the auto display but.
At the end of last year, you started to reduce and phase out your LCD TV capacity and the fact that the panel prices started to pick up in Q1 of course doesn't really influence your earnings that much because of your downsizing of the LCD TV business. It.
It seems your lost significantly lossmaking businesses, our OLED TV and your it business and with regards to improving the earnings that seems to be quite necessary at this point and from the investor's perspective, and as you mentioned during the presentation, you're looking forward to a turnaround in profit in the second half of the year, but would that mean that we would just have.
To wait for an improvement in the overall market demand or even if the demand recovery is delayed and pushed back to next year can we still expect a profit turnaround.
Driven by your cost savings assets or maybe potentially a human resources restructuring of your head count.
They're good and you just need that happened there did you talk with me that.
Thank you very much for that good question I would respond as a CSO to your question.
Hello, Tom Keys are now being displayed things on Chicago had been accrued Vega Kombucha with Dow Jones <unk> Shipman Puccini Altamont is on that kind of another leg. So none on Seatac is on Oh, Iginla legal attempted Jonathan let them do that.
Okay.
Now in such a large scale equipment based industries, such as that of a display industry. When there are three factors that are all coming into play, including macro uncertainties adjustment of the inventory as well as a muted the sell through demand I have to admit it is extremely difficult and not easy.
To predict a earnings improvement going forward.
All time kind of 2 million is only younger.
Companies.
You can take with you in it or how long do you know what I know is always a meter.
We are however, looking forward to a turnaround next year in turning around to profit driven by one of the one driver which is industry based and three very corporate specific driver.
When does the bundle kind of dug in issuing in all Tony do choose only known Gardena ship on Mary's you got the auto macro you in Italy, Nassau Hebel, taking in audio Pocketbook with me that Corona Elon you in at all panel tornado gain shareholders only new Yogi <unk> diamonds.
Panelists, you'll watch, Japan, MELA Kingdom, Charterer party menthol or total knee <unk> nanometer.
Now regarding the the industry factor, we do admit that it will be quite difficult to expect a recovery that is significantly driven by improved or a rebound in the actual end user demand in light of the macro situation that we foresee next year.
However, it's been about one year since the industry had undergone a significant inventory correction phase and there's been a significant adjustment in the inventory levels and also in terms of the gap or the difference between the panel demand as well as the sell through demand.
Good to go to Johnny on the Jumbo Chilean deal a week dosing.
Cool.
And then I'll, let you go to <unk> to <unk> <unk>.
India now MA you don't know if we dug a week at the knee you don't win didn't have unusual kind of Enzo to conduct the Michigan that answer your question I Hope we see that.
And so we believe that inventory adjustment in the tunnel had been had been taken.
It had taken place quite extensively so although I'm a very minor we are seeing positive signals, where there is a inventory restocking demand that is starting to pick up.
Suzanne you, Tom Glace teacher, who do on your own.
Secondly to that group.
To you Tony <unk> penalty.
Ladies Tanya D D.
<unk> young in penalty Miami, who don't do that well I assume that that's the same knee how long gain.
Hello, Doug into Penn I do need to move to leak that online and who the modal selling into telecom nickel might go in a group with me that.
Now typically that market dynamic is such that the set inventory and channel inventory and sales usually.
It is at a higher level compared to the panel sales, but over the past year. It was quite unusual where the panel volume or the panel sales was much weaker compared to the set sales and I think as we go into the second half of the year, we will see normalization of this market dynamic whereby the panel volume with the sales volume.
We find its alignment with the actual asset sales.
Could you go to I thought I did that on <unk>. So you've got the urine in something and I'm going to assume the other NATO Smokey and will likely be cuddled limiter, because lucidly number Yung Kim go God I wish pro rata hit M&A come around.
Nick I think Youll go click what's wrong with me that.
And also there are three specific reasons from the Companys perspective first is the 15 K capacity for mobile SaaS coming online, which is going to drive up the volume by about 50% and that would be the biggest contributor behind a turnaround in profit.
Clinical data until the dog I don't be an antibody. So you can do.
Mitchell they'll go to a woman.
You don't really need to get when you get the M&A group window today.
And even though it sounds like your Internet goes with Nida to go to all total group so that will that could still keep it on its own.
Dmitry I saw some doner you poke on a materially negative policy sequential group with me that.
And early next year, we will also start to see our tablets have come online and as a result, we will be able to see the revenues to around two trillion level and an ear of a yearly basis and that will also make contributions to next year's earnings performance and at the same time, our order backlog.
For auto business is also growing and as was mentioned previously we will be able to drive up that this business from two trillion to <unk> three trillion by next year.
Jim I'm going to I'm gonna to eliminate Papa.
I guess to me that we.
We'll now take the final question.
Multimodal regimen that you should have been in 2000, and <unk> channel Neiman meter. The last question will be presented by channel gain from Shinhan Securities. Please go ahead with your question.
Yes Simona.
I'm hesitant about four <unk>.
Each of them.
That's helpful.
Cumulatively, which can directly.
And were not even born and I'll call back some debt.
<unk> announced two minutes I'll send them home.
Okay.
Yeah.
I was wondering any day.
Will it is hoped that we make on things how you go to <unk>.
And one thing that you can get started.
And that I know you're doing it at all.
Hello financing.
Okay.
Yes.
Okay.
Thank you I would like to ask two questions first has to do with your auto electrical business display business you talked about the order backlog would like to get some color on what your assessment is in terms of short to mid to long term profitability. Second question is on your OLED business your competitor your domestic.
Competitor has announced a new investment into a bigger a bigger sheet or a bigger a higher generation and investment for OLED. What is your take on this and what is your direction going forward.
There were two buckets.
Two six songs.
Jon or Linda.
Linda.
Blue I will respond to your question about the auto business in Q1 from out of market.
Oh no.
Thank you, Doug and CFO Paragon uncle.
So we got some good total.
Clinton and Tango Tango two angles, we saw no problem.
Uh huh.
Now for the auto business, rather than looking at short term profitability. What's more important is to look at the profitability off of the order backlog that is considered more important.
No.
I'm going to speak soon are high single digits.
Oh Wow.
Or how long, but it's a lot harder.
Oh I don't know what it is all so far in October .
Now looking at the auto backlog basically our profitability is on high single digit and we will of course manage our order.
Steady manner, so that you know.
Up until the time that they are actually accrue revenue.
Marketing and selling them to go.
Okay.
Yes, I am telling Kim in charge of medium to say marketing.
Yeah.
Olivia.
I assume that you get on an I T.
Tom Mcguire taught us or yogurt, one job I assume.
Before taking your question on OLED investment allow me to just provide oh, it might get outlook and the company's strategy on OLED.
So in conjunction to teacher program, therefore to procure some costs will be filmed erythritol already reaching two.
To promote greater loss goes through.
Yep.
Now from a mid to long term perspective within the product segment, depending on the level of acceptance consumer acceptance that is for each of the products segment OLED penetration. We believe is going to be quite different for different product and pro customers.
Yes.
Okay.
Michigan Tabulate all of the Toyota will come at all.
Some of them could fill uncle Comdata, Amazon Com Walmart com.
And particularly those who come off.
So as mentioned briefly just just some moment ago through the tablet OLED fab, we will be maximizing our mass production efficiency and supported by our proven experience in mass production, we will be able to further bolster our technological leadership.
<unk> global.
<unk> when it all turned on all of them, because we're going to do to Pelican.
<unk> Leverages our summer concert tour.
Second in the literature.
Preorder.
Okay.
And also against our global customers, we will be testing the economics of the OLED market by taking our white OLED based monitor as well as notebook panels, which we supply and which has the tandem OLED technology.
Applied.
We will do this too.
We take these products to test the OLED market or test the feasibility of.
Our capabilities and we'll build out the high end <unk> product portfolio supported by the OLED.
Yeah total.
Literature.
Sometimes.
And what sort of tumor to watch over a quarter or so so I went to China.
So I'll just touch on what's up.
So in light of all of these aspects our decision for investment we'll consider the led market size the speed of growth as well as our financial strength and the amount of our available investment capital all of those aspects will be thoroughly considered in making the investment decision.
Yeah.
If you did it.
Please E Mail me some known irrelevant.
And what about I guess meter.
The condition that they're good I'm glad the email.
Efficient wondering Iot I'd love to give out a meter sometimes it up.
Well with that though we will now close the first quarter 2023 earnings conference call. Thank you very much for joining us today and please contact the IR team. If you have any further questions. Thank you.
Yeah.
[music].
Yeah.
[music].