Q1 2024 LG Display Co Ltd Earnings Call
Operator: Will walk us through the key highlights.
We will walk us through the key highlights.
Sung-Hyun Kim: 안녕하십니까? CFO 김성현입니다. conference call에 참석해 주신 여러분들께 감사드립니다.
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Operator: Good morning, and afternoon. This is the CFO, Sung-Hyun Kim. Thank you for joining our conference call.
Speaker Change: Good morning, and afternoon. This is the CFO sang Don Kim Thank you for joining our conference call.
Sung-Hyun Kim: 거시경제 등 소비에 영향을 주는 대외환경의 불확실성이 지속되며, 패널 제품군 전반에서 수요 약세가 장기화되고 있습니다. 계절성 등의 영향으로 단기적으로는 경영 성과의 변동성이 나타나고 있지만, 중장기적으로는 사업 구조 고도화 지속과 비용 구조 개선, 운영 효율화 등과 같은 활동에 전사 역량을 집중함으로써 사업 경쟁력과 미래 사업 기반을 강화하고, 안정적인 수익 구조를 확보해 나가는 노력을 다하고 있습니다.
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Operator: Uncertainties in the external environment continue affecting macroeconomic factors like consumption, which is prolonging the soft demand across panel products. For the short term, business performance will remain volatile due to factors like seasonality, but the company is trying to build a secure revenue structure for the mid to long term. We are trying to strengthen business competitiveness, lay the foundation for future businesses, and establish a stable revenue structure by focusing company-wide attention on activities to upgrade the business structure, improve the cost structure, and operational efficiency.
Dong Jun Kim: Uncertainties in the external environment continue affecting macroeconomic factors like consumption, which is prolonging the soft demand across panel products.
Dong Jun Kim: But the short term business performance will remain volatile due to factors like seasonality, but the company is trying to build a secure revenue structure for the mid to long term. We are trying to strengthen business competitiveness laid the foundation for future businesses and establish a stable revenue structure by you folks.
Dong Jun Kim: Company wide attention on activities to upgrade the business structure improved the cost structure and operational efficiency.
Sung-Hyun Kim: 사업 영역별 계획과 전략을 말씀드리도록 하겠습니다.
Dong Jun Kim: Talk culturally everybody some new hires.
Operator: Now, allow me to explain the company's plan and strategy per business area.
Dong Jun Kim: Now allow me to explain the company's plan and strategy per business area.
Sung-Hyun Kim: 대형 OLED 사업 부문은 기존 대비 휘도를 더 높인 META Technology 2.0 기술을 적용한 초고화질, 초대형 제품 중심으로 고객 포트폴리오를 강화하고, 프리미엄 TV 시장에서의 입지를 더욱 공고히 해 나갈 계획입니다. 수요와 생산성 향상, 재료비 등에서 원가 혁신과 확대된 물동을 기반으로 수익성 또한 개선해 나가고자 합니다.
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Dong Jun Kim: Conclusion of all categories.
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Operator: In large OLED, we will strengthen our customer portfolio and solidify our position in the premium TV market with a focus on ultra-high definition, ultra-large products applied with META Technology 2.0 with higher luminance. We also aim to improve profitability based on cost innovations and volume expansion, resulting from improvement in yield, productivity, and material costs.
Speaker Change: In large OLED, we will strengthen our customer portfolio and solidify our position in the premium TV market with a focus on ultra high definition ultra large products applied with meta technology to that though with higher luminance.
Speaker Change: We also aim to improve profitability based on cost innovations and volume expansion.
Two from improvement in yield productivity and material costs.
Sung-Hyun Kim: 중형 IT 영역 중 IT OLED 부문에서는 장수명, 고휘도, 저전력 등 내구성과 성능이 뛰어난 Tandem OLED 기술을 적용한 제품을 현재 양산하고 있으며, 2분기부터 본격적으로 생산을 확대하고, 차질 없이 사업을 운영하여 사업 성과를 확보해 나갈 계획입니다. 안정적 양산과 기술 리더십 기반으로 시장 내 입지를 강화할 뿐만 아니라, 사업 구조 고도화 측면에서도 당사의 사업 체질이 한층 더 강화될 것으로 기대됩니다.
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Operator: In the IT OLED segment under medium IT, we are currently mass producing the products that utilize Tandem OLED, characterized by superior durability and performance like long life, high luminance, and low power. We plan to secure business results by ramping up production in earnest in Q2, and running the business on track as planned. This will not only help consolidate our position in the market based on stable mass production and technology leadership, but also to build the fundamentals for our business upgrade.
Speaker Change: In the I T O led segment under medium I T. We are currently mass producing the products that utilize tandem OLED characterized by superior durability and performance like long life high luminance and low power.
Speaker Change: We plan to secure a business results by ramping up production in earnest in Q2 and running the business on track as planned.
Speaker Change: This will not only help consolidate our position in the market based on stable mass production and technology leadership, but also to build the fundamentals for our business upgrade.
Sung-Hyun Kim: 소형 모바일 사업은 지난해 45,000장으로 확대된 생산 캐파를 적극적으로 활용하고, 고부가가치 제품 출하와 비중 확대를 통해 하이엔드 스마트폰 내에서 점유율을 지속적으로 확대해 나가겠습니다.
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Operator: In the small mobile business, we will keep driving our market share in high-end smartphones by actively utilizing the expanded capacity of 45,000 and growing the shipment and mix of high-value-add products.
Speaker Change: In the small mobile business, they will keep driving our market share in high end smartphones, but actively utilizing the expanded capacity of 45000 and growing the shipment and mix of high value add products.
Sung-Hyun Kim: 다음으로 Auto 사업 부문입니다. 당사는 Tandem OLED 기술에 기반한 P-OLED, ATO, High-End LTPS LCD 등 기술 경쟁력과 차별화된 제품 포트폴리오를 보유하고 있습니다. 단기적으로 수요 변동성은 나타날 수 있겠으나, 차별성 있는 제품과 기술 포트폴리오, 그리고 안정적인 생산 역량, 긴밀한 고객 관계를 바탕으로 신규 수주와 사업 성과를 지속적으로 높여갈 예정입니다. 특히 차량용 OLED의 경우, 사업 확장을 가속화하고 있으며, 고객 확장, 신규 수주와 매출을 지속적으로 확대하여 Auto Display 세계 1등 업체로서의 위상을 더욱 강화해 나가고자 합니다.
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Operator: Next is Auto business. We have technological competitiveness and differentiated product portfolio in such products as P-OLED and ATO based on Tandem OLED technology and high-end LTPS LCD. Demand may be volatile in the short term, but we will keep working to win new orders and drive business performance based on our differentiated product and technology portfolio, reliable production capability, and close customer relations. Particularly in Auto OLED, we are accelerating business expansion with the goal of further building up our position as the world's number one auto display player by winning new customers, new orders, and revenue.
Speaker Change: Next is auto business.
Speaker Change: We have technological competitiveness and differentiated product portfolio in such products as P OLED and H b.
Speaker Change: Based on tandem OLED technology and high Ed L. T P S LCD.
Speaker Change: <unk> may be volatile in the short term, but we will keep working to win new orders and drive business performance based on our differentiated product and technology portfolio reliable production capability and close customer relations.
Speaker Change: Particularly in auto OLED, we are accelerating business expansion with the goal of further building up our position as the world's number one audio display player by winning new customers new orders and revenue.
Sung-Hyun Kim: 마지막으로 투자 활동에 대해서 말씀드리겠습니다. 지속적으로 말씀드리는 바와 같이 CapEx는 대외환경의 영향이 상대적으로 적고 조기에 성과 확보가 가능한 수주형 사업과 필수 경상 투자에만 집중하고 있습니다. 올해 투자는 작년 3조 6천억 원 대비 추가적으로 축소된 2조 원대, 그 정도로 집행하고자 합니다.
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Operator: Last is on our investment activities. As has been reiterated, our CapEx is focused on essential investment and order-based business that is less susceptible to external environment and likely to yield quick returns. Investment this year is planned at KRW 2 trillion level, a further reduction from last year's KRW 3.6 trillion.
Speaker Change: Last is on our investment activities.
Speaker Change: As has been reiterated our capex is focused on essential investment and order based business that is less susceptible to external environment and likely to yield quick returns invest.
Speaker Change: Investment. This year is planned at two of Chilean one level a further reduction from last year's three six trillion won.
Sung-Hyun Kim: 아직까지 시장과 대외환경의 불확실성과 변동성이 이어지고 있지만, 앞서 말씀드린 사항을 통해 분기별 사업 성과 실적의 개선 흐름을 이어나가고, 하반기에는 OLED 중심의 하이엔드 제품 비중 확대를 기반으로 한 턴어라운드를 목표로 하고 있습니다. 또한 금일 공시된 유휴 부동산 매각과 같은 비전략 자산 활용 등을 통해 재무 안정성을 강화하기 위한 노력도 병행하여 회사의 체질을 한층 개선시켜 나가겠습니다. 감사합니다.
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Operator: Although the market and external environment remain uncertain and volatile, we will try to sustain the improvement trend in our quarterly business performance and earnings through the aforementioned measures as we aim to reach a turnaround in H2, led by a higher mix of OLED-centered high-end products. We are also working to strengthen our financial soundness and improve our fundamentals by utilizing non-strategic assets, such as the sale of idle real estate disclosed today. Thank you very much for your attention.
Speaker Change: Although the market in external environment remains uncertain and volatile they will try to sustain the improvement trend in our quarterly business performance in earnings through the aforementioned measures as we aim to reach a turnaround in the second half led by a higher mix of all that sensor at high end products.
Speaker Change: We are also working to strengthen our financial soundness and improve our fundamentals by utilizing non strategic assets such as the sale of idle real estate disclosed today. Thank you very much for your attention.
Sung-Hyun Kim: 이상으로 2024년 1분기 주요 실적 내용 발표를 마치겠습니다. 다음은 질의응답 시간을 갖도록 하겠습니다. 오퍼레이터께서는 질의응답 안내 부탁드립니다.
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Operator: That brings us to the end of earnings presentation for Q1 2024. We will now take your questions. Operator, please commence with the Q&A session.
Speaker Change: That brings us to the end of earnings presentation for Q1 2024, we will now take your questions. Operator, please commence with the Q&A session.
Operator 2: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다. Now Q&A session will begin. Please press star one. That is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two. That is star and two on your phone. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions for each participant. 처음으로 질문해 주실 분은 메리츠증권의 김선우 님입니다. The first question will be provided by Sunwoo Kim from Meritz Securities. Please go ahead with your question.
Operator: She can be thought she didn't debates.
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Speaker Change: Now Q&A session will begin please press star one that Istar and one if you have any questions.
Speaker Change: Questions will be taken according to the order you have pressed the number of star one for.
Speaker Change: For cancellation, please press star two that Istar and two on your phone.
Speaker Change: In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant.
Speaker Change: Tom Road same relationship with embedded system, where they can use auto dimming mirror. The first question will be provided by <unk> Kim from Merit Securities. Please go ahead with your question.
Sunwoo Kim: 안녕하세요. 메리츠증권의 김선우입니다. 발표 잘 들었습니다. 저는 저희 재무구조 그리고 현금 유동성 관련된, 어떻게 보면 지금 상황에서 가장 중요한 질문이라고 할 수 있는 질문을 한번 드리도록 하겠습니다. 이번 재무제표를 보면 1분기 말 순차입금은 13조 원대 후반으로써 지난 1년 전에서 계속 13조 원대에서 머무르고 있는데요. 요새 불확실한 시장 및 대외환경 상황을 감안해 본다면 좀 부담스러운 수준이 아닌가, 이런 생각이 좀 있습니다. 지난해 말 유증도 하셨고, 그리고 최근에 언론 보도들 보면 광저우 LCD TV 팹을 매각 추진 중이라고 알려져 있는데요. 저희 당사가 올해 말이나 혹은 내년에는 목표로 하는 재무 비율이 따로 있으신지 궁금합니다. 이렇게 기준을 좀 제공해 주시면 감사하겠고요. 그리고 광저우 라인을 매각해서 현금을 유입시키는 방안 외에 혹시 또 다른 현금 유동성 유입 방안이 있으시다면 공유 부탁드리겠습니다. 감사합니다.
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Operator: Thank you very much for the presentation. I have questions about the financial structure as well as cash liquidity, probably the two most important questions in today's environment. The company's financial statement shows that the net borrowing at the end of Q1 was KRW 13.8 trillion, and we see that the net borrowing has been remaining at the KRW 13 trillion level since from a year ago, and which appears to be a bit on the higher side considering the current circumstances. There has been the paid-in capital increase and also there have been reports of the intention to sell off the Guangzhou LCD TV fab. I wonder whether there are any target financial ratios for the company for the end of this year as well as next year.
Speaker Change: Thank you very much for the presentation now I have questions about the financial structure as well as cash cash liquidity, probably the two most important questions in todays environment now.
Speaker Change: The company's financial statement it shows that the net borrowing at the end of Q1 was $13 eight trillion won and we see that the net borrowing has been remaining at the 13 children one levels from.
Speaker Change: From a year ago.
Speaker Change: And which appears to be a bit on the higher side, considering the current circumstances.
Speaker Change: That's been the paid in capital increase and also there have been reports of the intention to sell off the Guangzhou LCD.
Speaker Change: To sell off the Guangzhou, LCD TV fab and I Wonder whether are there are any target our financial ratios for the company for the end of this year as well as next year and also aside from the sell off of the Guangzhou LCD TV fab are there any large scale cash.
Operator: Also aside from the sell off of the Guangzhou LCD TV fab, are there any large scale cash in events that have been planned for the sake of stabilizing the financial ratios?
Speaker Change: In events that have been planned for the sake of stabilizing the financial ratios.
Sung-Hyun Kim: 예, CFO 말씀드리겠습니다. 상당히 구체적으로
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Sung-Hyun Kim: 현황을 잘 파악하고 계시는 질문이신데요. 순차입금이 지난 몇 분기 동안 계속 동일 수준에서 유지가 되고 있는 상황인데, 지금 사실은 당연히 부담스러운 수준인 건 맞는 말씀입니다.
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Operator: This is the CFO responding to your questions. I see that the question is stemming from very good understanding of the specifics of the company. Yes, as has been rightly mentioned, the net borrowing has been remaining almost flat for the past few quarters. Also, as the questioner has pointed out, it is a bit burdensome given the current circumstances.
Speaker Change: This is the CFO responding to your questions I see that the question is stemming from very good understanding of the specifics of the company and yes as has been rightly mentioned the net borrowing has been remaining almost flat for the past few quarters and also asked a question of has.
Speaker Change: Pointed out it is a bit burdensome given the current circumstances.
Sung-Hyun Kim: 지난 2년간 저희가 계속 수익성이 악화되어 있는 상황이었는데, 너무 잘 알고 계시겠지만 재무적인 활동은 이와 별개로 계속 안정적으로 진행이 되어 왔었습니다.
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Operator: Now, for the past 2 years, the company's profitability has not been so robust, but as you would also be fully aware, our financial activities have been consistently ongoing despite the other circumstances.
Speaker Change: Now for the past two years, the company's profitability has not been robust, but as you would also be fully aware our financial activities have been consistently ongoing despite the other circumstances.
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Sung-Hyun Kim: 조금 전에 말씀 주셨다시피, 광저우 LCD TV 공장 매각 그런 얘기를 말씀 주셨는데요. 회사가 할 수 있는 것들은 일단은 효율화 효과를 극대로 볼 수 있는 행위를 계속 강화하는 것들인데, 기본적으로 저희가 자산 건전화나 아니면 전략 자산이 아니라고 판단되는 것들은, 저희가 다른 형태의 자산으로 전환을 하는 것을 추진을 계속하고 있습니다.
Speaker Change: My assumption and Bill I'm sorry.
Speaker Change: As I have seen them go to them.
Speaker Change: Hmm.
Speaker Change: Oh shoot our Oaxaca pushing.
Speaker Change: We've seen an angry because will come on line in between the coupon Jerusalem onboard Joanna I mean once reluctant.
Speaker Change: We opened them then it goes to them.
Speaker Change: Pardon.
Speaker Change: Homepage Hassan rule turnaround in Russia.
Speaker Change: Because of accomplishment.
Operator: You also mentioned the sell-off of the Guangzhou LCD TV fab. Basically, what the company can do now is to keep strengthening our activities to maximize our business efficiency and effectiveness. What we can do is improve the soundness of our assets, and for the assets that are deemed not to be strategic, then we can perhaps try to turn them into other types of assets.
Speaker Change: Oh and you also mentioned the sell off of the Guangzhou LCD TV fab. So basically what the company can do now is to keep strengthening our activities to maximize our business efficiency and effectiveness.
Speaker Change: So what we can do is improve the soundness of our assets and for the assets that are deemed not to be strategic that we can perhaps try to turn them into our other types of assets.
Sung-Hyun Kim: 일단은 재무적인 활동이 안정적이라는 걸 말씀드렸지만, 가장 효과적인 재무 대책은 사실 사업이 수익을 창출하기 시작하는 것이라고 생각합니다.
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Speaker Change: Determine more timber juggernaut Tony.
Speaker Change: We'll make some judgments.
Speaker Change: Our zhengzhou cause organ terminal to chicken toby's single tranche luggage to come and we should always into Hanmi, though.
Operator: I did mention that we have been consistently carrying on financial activities, but then I would say that at the fundamental level, the best financial response would be for our businesses to produce profits.
Speaker Change: And I did mention that we have been consistently carrying on financial activities, but then I would say that at a fundamental level. The best financial response would be to for our businesses to produce profits.
Sung-Hyun Kim: 그와 관련해서 저희가 지속적인 노력을 지금 수차례에 걸쳐서 말씀드렸던 내용인데요. 다시 반복드리진 않겠고요. 그 내용을 하고 있고, 이제 성과가 조금씩 조금씩 나려고 하는 것 같습니다. 그래서 결국은 그런 근본적인 사업 성과를 내는 것을 통해서 이제부터는 재무 대책을 좀 세우도록 하겠습니다.
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Speaker Change: And regarding so with regards to that our continuous efforts have been reiterated several times. So I did not believe that they married my repeating at this point, but so we will continue with our efforts to improve our fundamental business performance and we are now beginning.
Operator: With regards to that, our continuous efforts have been reiterated several times, so I do not believe that they merit my repeating at this point. We will continue with our efforts to improve our fundamental business performance, and we are now beginning to see some signs of getting good results out of it. Based on the results as well as the continued business performance, we will also be coming up with our financial plan accordingly.
Speaker Change: To see some signs of getting good results out of it so based on the results as well as the continued business performance. We will also be coming up with our financial plan Accordingly.
Sung-Hyun Kim: 네, 첫 번째 김선혜 위원 질문에 답변을 드렸고, 다음 질문을 받아보도록 하겠습니다. 수화기 쪽에서는 다음 질문 받아주시기 바랍니다.
Speaker Change: The commentary on two minute of peninsula cool down similar to Escondida.
Speaker Change: Escondida.
Speaker Change: It probably took us a long time to learn but I do see Miranda.
Operator 2: 다음으로 질문해 주실 분은 KB증권의 김동원 님입니다. The following question will be presented by Dongwon Kim from KB Securities. Please go ahead with your question.
Speaker Change: Hi, I'm Little Timna, just happened then cables and connect them to one name in meter. The following question will be presented by to one Kim from <unk> Securities. Please go ahead with your question.
Dongwon Kim: 네, 질문 기회 감사합니다. 저는 광저우 LCD 공장 관련 질문 한 가지만 드리겠습니다. 이 시장에서는 재무구조 개선과 투자 재원 측면에서 광저우 공장 매각에 관심이 많으신 것 같습니다. 그러나 최근 TV set 고객사들을 보면, 중국 패널의 의존도를 낮추기 위해서 LG Display의 증량도 요청하고 있는 것으로 알고 있습니다. 최근 LCD TV 시황 개선 영향으로 향후 광저우 공장의 매각 방향성에 변화가 있으신지 궁금하고요. 만약 없으시다면 매각 예상 시기와 자금 활용 계획 등 광저우 LCD 공장 매각 전반에 대한 업데이트 부탁드리겠습니다. 이상입니다.
Kim: Yeah Simona vehicle.
Kim: Hum do with Citi, Hong Zhang Chairman, how much might that he gets it.
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Speaker Change: Grammar Checker and Tvs that took we accelerated from him.
Unknown Executive: I'm going to give you. So LG display is young dual guitar windows right.
LG Display: Right.
LG Display: Checking the LCD Tvs swung Kevin Young young girl.
LG Display: I'm joking gently makeup from Canada efficient you can come up with my now called Fisher, Danielle maybe I'll get hung secure chug them, how do you own character them underway should equal Zheng makeup combined.
LG Display: Stop producing.
LG Display: Huh.
Operator: Thank you for taking my question. It is going to be on the Guangzhou LCD fab. The market is quite keen on the sell-off of the Guangzhou LCD fab for such purposes as improving the financial ratios and also the potential use of the investment funds. Also at the same time, some TV set makers recently requested volume increase from LG Display to hedge their reliance on Chinese makers. Based on the recent improvement in the LCD TV market, are there any changes to the company's plan on the sell-off of the Guangzhou LCD TV fab? If not, meaning that if the current plan is to continue, I would just like to ask for a broad update on the Guangzhou LCD fab sell-off. For example, the timeline of the expected sell-off as well as the plan for utilizing the proceeds.
LG Display: Okay.
Thank you for taking my question it is going to be R&D, Guangzhou LCD fab now the market is quite keen on the sell off of the Guangzhou LCD Fab Ah.
Speaker Change: For such purposes, as improving the financial ratios and also deep potential use of the investment funds.
Speaker Change: But also at the same time sums TV set makers recently requested volume increase from LG display to hedge their reliance on Chinese makers.
Speaker Change: And based on the recent improvement in the LCD TV market are there any changes to the company's plan on the selloff of the Guangzhou LCD TV fab and if not meaning that if the current plan is to continue then I would just like to ask for a broad update on D. Guangzhou LCD.
Speaker Change: Fab sell off so for example, the timeline of the expected sell off as well as the plan for utilizing the proceeds.
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Operator: This is the CFO again, responding to your question. A few years back, the company announced our decision to suspend our large LCD business, since then we have been executing this plan through a number of steps. This means that what we are intending to do is not about improving the financial ratios or making more proceeds available to be used, but this is part of our execution of what was determined strategically. In terms of the substance of the decision, we have shared with the market about the path that we intend to take. In terms of the specific approach, I must admit that perhaps we have not been fully clear yet. Neither will I be clear this time. What I can tell you is that we are working very hard the outcome might be better than what we expect.
Speaker Change: Stifel <unk> Taylor is over.
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Linda: Hi, Linda.
Linda: With 10 gig, which was what I remember them all.
Linda: Student Scimitar.
Linda: This is the CFO again responding to your question now a few years back the company announced her decision to suspend or large LCD business and since then we have been executing this plan through a number of steps.
Linda: Sure.
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So this means that our what we our intention intending to do is not about improving the financial ratios or making more proceeds available to be used but this is part of our execution of what was determined strategically.
Linda: Hmm.
Linda: Or are there some trigger coupons or what would trigger that.
Linda: I'll keep it there from them by some extra to Mohawk wheel Cuda unemployed is on them. So that you can cause.
Linda: No assurance of a keyboard blah blah blah.
Linda: Tony a little by some doing well.
Linda: Also to us.
Linda: Okay.
Now in terms of the substance of the decision. So we have shared with the market about the path that we intend to take.
Linda: But in terms of the specific approach I must admit that perhaps we have not been fully clear yet.
Linda: Are you going to do by some presumed similar how do you want them.
Linda: And I'm not sure how Vita.
Speaker Change: We will.
Speaker Change: Several of them to be at home and go with a two seater.
Speaker Change: So.
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Speaker Change: All participants will be now.
Speaker Change: Oh go on with them to the best in the region.
Speaker Change: Yeah.
Speaker Change: And neither will I be clear at this time, but what I can tell you is that we are working very hard.
Speaker Change: And the outcome might be better than what we expect but in terms of the timing, we would have to wait and see but again in terms of specific approach. Please understand that we cannot be specific at this time.
Operator: In terms of the timing, we would have to wait and see. Again, in terms of the specific approach, please understand that we cannot be specific at this time. Thank you. We will take the next question. The following question will be presented by Woonho Kim from IBK Investment & Securities. Please go ahead with your question. Thank you for taking my questions. I will be asking about the sales environment. Now, since a few years back, we see that the large OLED has been increasing. The large OLED is likely to expand year-over-year, especially thanks to the new customer and also the increased volume for the new customer. Also the LCD IT products and the IT OLED are likely to be the main drivers of performance improvement this year along with the large OLED.
Speaker Change: I want to eliminate about through August.
Speaker Change: Thank you we will take the next question.
Commodore terminate to ship and then IV K 2000 connect chemo honeymoon meter. The following question will be presented by <unk> Kim from IV K investment in Securities. Please go ahead with your question.
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Dan Mccarthy: Hey, Dan Mccarthy.
Speaker Change: It's an industry issue energy Mohammed.
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Speaker Change: It ended up in Canada.
Speaker Change: And thank you for taking my questions I will be asking about the sales environment now since a few years back we see that the large OLED has been increasing and also it is like Ah sorry, so the large OLED is likely to expense.
Speaker Change: Year over ear, especially thanks to the new customer and also the increased volume for the new customer.
Speaker Change: And also the L. C D I T products N D. I T. OLED are likely to be the main drivers of performance improvement this year along with the large OLED. So then what is the company's projection for the demand for the mid sized LCD products and also if possible what is to come.
Operator: What is the company's projection for the demand for the mid-sized LCD products? If possible, what is the company's projection for the panel prices as well? The second question is, as was explained during the presentation, the company started the mass production of IT OLED, and it seems as if the volume is set to increase quite rapidly in Q2 of this year. With the IT OLED, what is the company's goal in terms of the annual production? Also, the company has been putting a lot of stock on the order-based business, so the company has great vision for the order-based business. So what is also the company's expectation of the performance coming out of this?
Speaker Change: These projections for the panel prices as well.
Speaker Change: And the second question is as was explained during the presentation. The company started the mass production of OLED and it seems as if the volume is set to increase quite rapidly in the second quarter of this year.
Speaker Change: Then with the I T. All that what is the company's goal in terms of the annual production.
Speaker Change: And also the company has been putting a lot of stock on the order based business. So the company has great vision for the auto business. So what is also the company's expectation of performance coming out of this.
Won Jae Lee: 중형 전략 마케팅 담당 이원재입니다. 먼저 중형 LCD 시장은 TV 패널 가격 상승 기조, 매크로 영향 등으로 인해서 역성장세가 지속되어 왔습니다만, 최근 모니터의 경우 선진 B2C, 그리고 신흥기업 시장에서의 실판매 증가 경향이 나타나고 있습니다.
Speaker Change: So along with getting them down using them at all.
Speaker Change: Wonderful.
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Sterling: Supermarkets and grocery.
Operator: This is Won Jae Lee, in charge of medium display marketing, responding to the first part of your question. For the mid-sized LCD market, there has been negative growth recently because of some macroeconomic environment and impact. More recently, what we are seeing is signals of growth in the sales of monitors, especially in the B2C market, in developed markets, and in the emerging markets as well.
Speaker Change: This is one daily in charge of media marketing responding to the first part of your question now for the mid sized LCD market. There has been negative growth recently because of some macroeconomic environment and impact, but then more recently.
We are seeing is Ah snows of our gross in the sales of monitors, especially in D. C market in developed markets and in the emerging markets as well.
Won Jae Lee: TV 패널 가격 상승 기조에 따라 점진적 IT 패널 가격의 상승도 나타나고 있고, 이는 이후 기업 IT 소비 여건 개선 등, 그리고 교체 주기 도래에 따른 추가적인 수요 개선이 전망됨에 따라 올해 하반기부터 업황 개선에 대한 기대감을 갖고 있는 상황입니다.
Speaker Change: Yeah.
Speaker Change: TB funding.
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Speaker Change: So you'll get a leader among them it at all.
Speaker Change: Thank you tore open can you tell me again, Japan government wintertime.
Operator: Now, along with the rise in the TV panel prices, we see that to start picking up in 2025 and on the back of the replacement cycle coming up and also with improved IT consumption environment among the businesses.
Speaker Change: Hum along with the rise in the TV panel prices.
Speaker Change: They are also paying.
Speaker Change: And so we.
Speaker Change: The two starting up in 2025 and on the back of the replacement cycle coming up and also with improved.
Speaker Change: Consumption environment, among the businesses and as a result, we believe that starting from the second half of the ear.
Yong Won Kim: 담당 김용원입니다. 고객사 관련 내용과 관련되어 있기에 구체적으로 말씀드릴 수 없는 점 양해를 부탁드립니다. 다만 IT OLED용 패널은 자사가 앞선 기술 리더십을 바탕으로 해서 기존 계획대로 1분기 중 양산을 시작하였고, 지금 차질 없이 사업을 잘 진행하고 있습니다. 사업적 좀 더 강화하실 수 있을 많은 기대하고 있습니다.
The improvement.
Speaker Change: Thank you norm.
Speaker Change: Hum.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Which is robust and there are some indoor younger.
Speaker Change: Palomar in Iot already owned paneled room.
Speaker Change: So if I got phone, which is a negotiable propelled us Hong Kong.
Speaker Change: She joined character rule, even getting young from the Shanghai pool to interject Oxy Turbo charging you always see that.
Operator: This is Yong Won Kim in charge of responding regarding the OLED. Plan. We cannot disclose it because of clients. Now for the OLED. In Q1 based on our plan, and we are currently moving on. In terms of the upgrade to our business structure, companies fundamentally are looking forward to seeing the result of this effort.
Speaker Change: Okay.
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Yes.
Speaker Change: Okay.
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Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: And we can now.
Speaker Change: Yes.
Speaker Change: All of our clients.
Speaker Change: So oh.
Speaker Change: Hello.
Speaker Change: Okay.
Sung-Hyun Kim: 네, 질문 하나 더 받도록 하겠습니다. 오퍼레이터께서는 질문 받아주시기 바랍니다.
Speaker Change: That's right.
Speaker Change: In the first quarter.
Operator: Thank you. We will now take one more.
Speaker Change: Uh huh.
Speaker Change: Moving on.
Operator 2: 다음으로 질문해 주실 분은 키움증권의 김소원 님입니다. The following question will be presented by So Won Kim from Kiwoom Securities. Please go ahead with your question.
Speaker Change: And in terms of the upgrade to our business structure.
Speaker Change: Ken.
Speaker Change: Companies demand.
Speaker Change: Our look forward.
So Won Kim: 네, 안녕하세요. 키움증권 김소원이라고 합니다. 질문해 주셔서 감사합니다. 저는 P-OLED 관련 질문을 드리려고 하는데요. 최근에 북미 전략 고객사의 중국 수요 부진에 대한 우려가 계속 지적이 되고 있고, 관련 supply chain에 대한 우려도 이어지고 있습니다. 그래서 스마트폰 시장 경쟁이 심화되는 가운데 저희 올해 모바일용 P-OLED 출하량 목표치 변화가 있는지 궁금하고요. 그다음에 지난 2년간 저희가 소모재용 P-OLED 공급 초기에 좀 이슈가 발생했었는데, 저희 경쟁력 준비 상황 등 어떻게
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Speaker Change: Paul Smith.
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Speaker Change: But I just feel about a meter. Thank you and we will now take one.
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Speaker Change: Cameroon timber legislate put in kimpton connections wasn't immediate that the following question will be presented by <unk> Kim from <unk> Securities. Please go ahead with your question.
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Kim: And then Joe Reservoir luncheon.
Speaker Change: And Dale.
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Speaker Change: Please note that no pause.
Operator: Thank you for taking my question, which is on P-OLED. The North American customer has been seeing sluggish sales in the Chinese region. As all understand that there have been some, let's say concerns about the supply chain, especially regarding the M&A. Given the fact it has become such and are there any changes to the company's annual Q4? In the past two years, there have been some, especially the early state of supply. What is the company's competitive strategy to further strengthen your position as among the customers and to suitability?
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Speaker Change: I'm curious what location in sugar prices.
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Speaker Change: But how long do okay.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Thank you for taking my question, which is on P. OLED now.
Speaker Change: Now D.
Speaker Change: North American customer has been seeing a sluggish sales in the Chinese region.
Speaker Change: And that there have been some let's take turns about Ts.
Speaker Change: Especially regarding D a.
Yong Won Kim: 네, 소형 마케팅 담당 김용원입니다. 고객사 관련 내용으로 답변드릴 수 없는 점 양해 말씀드립니다. 지난해 확대된 생산과 강화된 역량을 기반으로 해서 전년 대비 패널 출하가 확대될 것으로 예상하기 때문에 금년 매출과 손익 측면에서 개선을 기대하고 있습니다. 기술 생산 운영 전반에서 고객과 빠르게 할 수 있는, 그리고 수율과 전반적인 생산성 측면에서도 과거 대비 한층 진일보한 경험을 축적하고 있다고 생각합니다. 적기에 제품이 공급이 되고, 성과를 지속적으로 만들어 가도록 할 계획입니다. 이상입니다.
Speaker Change: And also given the fact.
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Speaker Change: So are there any changes.
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Speaker Change: Competitive strategy.
Speaker Change: To further strengthen your position.
Speaker Change: Among customers.
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Speaker Change: Okay.
Speaker Change: So under this umbrella.
Operator: This is Young-Won Kim in charge of small display marketing responding to this question. Once again, please ask for understanding that I cannot disclose details or specifics with regards to the customer. Based on the expanded production capacity and strengthened capability, we believe that the panel shipment is year-on-year, which is also an improvement in revenue and profit. We have a system in place to collaborate very quickly with customers in technology, production and operations, and also have a more advanced experience, much more so than before. We believe that position to supply our products on a timely manner and continue to broaden our performance.
Speaker Change: Okay.
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Speaker Change: Well Ricardo young younger coupon over his long tenure.
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Speaker Change: All grown basically what I was wanting to municipal or just wondering if you better have we seen.
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Speaker Change: Virtual care to permit we will take all because you go from quarter to under overall.
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Speaker Change: This is <unk> Kim in charge of small display marketing responding to this question now once again, please I ask for attending I cannot close details or specifics with regard to customer now.
Sung-Hyun Kim: 네, 이상으로 LG Display 2024년 1분기 실적 설명회를 마치도록 하겠습니다. 참석해 주신 분들께 감사드리며, 추가 질문이 있으신 분들은 이후 IR 팀으로 연락 주시기 바랍니다. 감사합니다.
Speaker Change: Now based on the expanded.
Speaker Change: The city and strengthen capability.
Speaker Change: We believe that the panel shipment.
Speaker Change: On here.
Operator: Thank you. Please do contact the additional.
Speaker Change: Which is awesome.
Speaker Change: An improvement in revenue and profit.
Speaker Change: Now have a system in place to collaborate very quickly with some.
Speaker Change: In technology of production.
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Speaker Change: For advanced experience much more so than before.
Speaker Change: Yeah.
Speaker Change: That position to supply our products on a timely manner and continue to broaden our comments.
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Speaker Change: It wont be permanent.
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Speaker Change: Thank you.
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