Q1 ’09 Earnings Results
April 16, 2009
Disclaimer
This presentation contains forward-looking statements. We may also make written or oral forward-looking
stateme...
Q1 ’09 Earnings Results
3
Revenues & Profit
Revenues Profit
(Unit : KRW B) (Unit : KRW B, %)
Operating
Income
Q4 ’08 QoQ
EBITDA*
Net Income
YoY Q1 ’...
Balance Sheets & Financial Ratios
Balance Sheets Financial Ratios
(Unit : KRW B) (Unit : %)
5
74%
87%
110%
130%
147%
219%
...
Cash Flow
Net Cash Flow*
3,566
143
10
0
10
(1,009)
412
429
556
(255)
1,142
3,423
Q1 ’09
Cash at the end of the Quarter
Net...
Performance Highlights
7
8
3,188
3,275
3,674
3,859
3,754
$1,339
$1,274
$992
$766
$669
0
1,000
2,000
3,000
4,000
5,000
Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q...
9
Revenue: Product Mix
Source: Company financials (USD Base)
NBPC
MNT
TV
APPL
50%
100%
0
43%
51%
57% 56%
26%
22%
20% 23%
2...
10
Capacity
Source: Company financials
Quarterly input capacity by Area (K m² )
P1-P3
P4
P5
P6
P7
4,727
5,092
5,474
5,667 ...
Outlook
11
12
Outlook
► Total Shipment in m2 (QoQ)
• Mid to high twenties (%) ↑
► ASP
• Gradual increase expected
► COGS per m2 (USD)...
Questions and Answers
13
Appendix
14
K GAAP Income Statement
15
Source: Unaudited, Company financials K GAAP (Consolidated)
KRW bn Q1 ’09 Q4 ’08 Q1 ’08 QoQ Cha...
K GAAP Balance Sheet
* Cash includes short term financial instruments KRW 1,880B in Q1 ’09, KRW 2,055B in Q4 ’08 and KRW 1...
K GAAP Cash Flow
* Working capital consists of net change in AR, inventory and AP.
- Working capital includes F/X effect.
...
18
EBITDA Reconciliation
Source: Unaudited, Company financials
We are adding depreciation and amortization to operating in...
Q109 Er Deck (English) Final
Q109 Er Deck (English) Final
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Q109 Er Deck (English) Final

  1. 1. Q1 ’09 Earnings Results April 16, 2009
  2. 2. Disclaimer This presentation contains forward-looking statements. We may also make written or oral forward-looking statements in our periodic reports to the United States Securities and Exchange Commission and the Korean Financial Supervisory Service, in our annual report to shareholders, in our proxy statements, in our offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to third parties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current 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 and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to: our highly competitive environment; the cyclical 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 execute our expansion strategy; our dependence on key personnel; and general economic and political conditions, including those related to the TFT-LCD industry; possible disruptions in business activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations in foreign currency exchange rates. Additional information as to these and other factors that may cause actual results to differ materially from our forward-looking statements can be found in our filings with the United States Securities and Exchange Commission. This presentation also includes information regarding our historical financial performance through March 31, 2009, and our expectations regarding future performance which is available on our investor relations website at http://www.lgdisplay.com under the file name Q1 2009 Earnings Results Presentation.
  3. 3. Q1 ’09 Earnings Results 3
  4. 4. Revenues & Profit Revenues Profit (Unit : KRW B) (Unit : KRW B, %) Operating Income Q4 ’08 QoQ EBITDA* Net Income YoY Q1 ’08Q1 ’09 -288 N/A N/A 881-412 250 -42% -91% 1,566144 -684 N/A N/A 717-255 5,000 4,000 3,000 1,000 ↓12% ↓9% 2,000 4,1564,156 3,6663,666 4,0364,036 -7% 22%-11% 6% 39%4% Income before tax -844 N/A N/A 915-372 Q4 ’08 Q1 ’09 Q1 ’08 KGAAP (Consolidated) * EBITDA = Operating Income + Depreciation + Amortization Source : Company financials 4
  5. 5. Balance Sheets & Financial Ratios Balance Sheets Financial Ratios (Unit : KRW B) (Unit : %) 5 74% 87% 110% 130% 147% 219% 5%5% 12% Liabilities to Equity Ratio Current Ratio Net Debt to Equity Ratio Q1 ’08 Q1 ’09Q4 ’08Q4 ’08 Q1 ’09 Assets 15,238 17,388 7,018 Cash* 2,988 3,423 3,566 Debt 4,014 3,887 4,016 Net Debt 1,026 464 450 Inventory 1,031 1,137 1,193 10,370 8,100 4,786 3,314 9,288 18,562 Current Assets 7,285 7,718 Non-Current Assets 7,953 10,844 Liabilities 6,480 9,712 Current Liabilities 3,321 5,915 Non-Current Liabilities 3,159 3,797 Shareholder’s Equity 8,758 8,850 Q1 ’08 KGAAP (Consolidated) * Cash includes short term financial instruments. Source : Company financials
  6. 6. Cash Flow Net Cash Flow* 3,566 143 10 0 10 (1,009) 412 429 556 (255) 1,142 3,423 Q1 ’09 Cash at the end of the Quarter Net Change in Cash Other Financing Activities Dividend Cash Flow from Financing Activities Cash Flow from Investing Activities Others Change in Working Capital Depreciation & Amortization Net Income Cash Flow from Operating Activities Cash at the beginning of the Quarter Cash Flow (Unit : KRW B)(Unit : KRW B) Cash In Cash Out Net Depreciation Change in Working Capital Others CAPEX & Capital Investment * 556 412 429 133 1,009 Net Income255 * Excludes cash flow from financing activities KGAAP (Consolidated) Source : Company financials 6
  7. 7. Performance Highlights 7
  8. 8. 8 3,188 3,275 3,674 3,859 3,754 $1,339 $1,274 $992 $766 $669 0 1,000 2,000 3,000 4,000 5,000 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09 $0 $500 $1,000 $1,500 Total K m² * ASP/m² ** (USD) Display area shipment in K m2 ASP per m2 (USD) Shipments and ASP * Net display area shipped ** Quarterly average selling price per square meter of net display area shipped Source: Company financials
  9. 9. 9 Revenue: Product Mix Source: Company financials (USD Base) NBPC MNT TV APPL 50% 100% 0 43% 51% 57% 56% 26% 22% 20% 23% 22% 18% 16% 5% 5% 5% 5% 26% Q3 ’08Q2 ’08 Q4 ’08 Q1 ’09
  10. 10. 10 Capacity Source: Company financials Quarterly input capacity by Area (K m² ) P1-P3 P4 P5 P6 P7 4,727 5,092 5,474 5,667 5,561 P8 426 425 436 442 422 490 517 546 561 517 639 653 694 724 667 1,430 1,458 1,560 1,634 1,508 1,742 2,039 2,238 2,306 2,210 237 0 1000 2000 3000 4000 5000 6000 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09
  11. 11. Outlook 11
  12. 12. 12 Outlook ► Total Shipment in m2 (QoQ) • Mid to high twenties (%) ↑ ► ASP • Gradual increase expected ► COGS per m2 (USD) • Mid single digit (%) ↓ ► CAPEX • Approximately KRW 2.5 trillion Q2 ’09 2009
  13. 13. Questions and Answers 13
  14. 14. Appendix 14
  15. 15. K GAAP Income Statement 15 Source: Unaudited, Company financials K GAAP (Consolidated) KRW bn Q1 ’09 Q4 ’08 Q1 ’08 QoQ Change YoY Change Revenues 3,666 4,156 4,036 -12% -9% COGS 3,827 4,188 2,973 -9% 29% Gross Profit -161 -32 1,063 N/A N/A Operating Income -412 -288 881 N/A N/A EBITDA 144 250 1,566 -42% -91% Income before Tax -372 -844 915 N/A N/A Net Income -255 -684 717 N/A N/A Margin (%) Gross Margin -4 -1 26 -3 -30 Operating Margin -11 -7 22 -4 -33 EBITDA Margin 4 6 39 -2 -35 Net Margin -7 -16 18 9 -25
  16. 16. K GAAP Balance Sheet * Cash includes short term financial instruments KRW 1,880B in Q1 ’09, KRW 2,055B in Q4 ’08 and KRW 1,980B in Q1 ’08 respectively. K GAAP (Consolidated) 16 KRW bn Q1 ’09 Q4 ’08 Q1 ’08 QoQ Change YoY Change Assets 18,562 17,388 15,238 7% 22% Cash* 3,566 3,423 2,988 4% 19% Inventory 1,193 1,137 1,031 5% 16% Liabilities 9,712 8,100 6,480 20% 50% Short term debt 1,550 1,154 976 34% 59% Long term debt 2,466 2,733 3,038 -10% -19% Shareholders’ Equity 8,850 9,288 8,758 -5% 1% Net Debt to Equity Ratio (%) 5 5 12 0 -7 Source: Unaudited, Company financials
  17. 17. K GAAP Cash Flow * Working capital consists of net change in AR, inventory and AP. - Working capital includes F/X effect. ** Cash flow from investing activities excludes increase (decrease) of short term financial instruments KRW -175B in Q1 ’09, KRW -945B in Q4 ’08 and KRW 1,195B in Q1 ’08 respectively. K GAAP (Consolidated) 17 KRW bn Q1 ’09 Q4 ’08 Q1 ’08 QoQ Change YoY Change Net Income -255 -684 717 429 -972 Depreciation & Amortization 556 538 685 18 -129 Other Financing Activities 10 -359 532 369 -522 Dividend 0 0 -268 0 268 Others 412 330 83 82 329 Working Capital* 429 992 -412 -563 841 Cash Flow from Operating Activities 1,142 1,176 1,073 -34 69 Cash Flow from Investing Activities** -1,009 -1,179 -330 170 -679 Cash Flow before Financing Activities 133 -3 743 136 -610 Net Change in Cash 143 -362 1,007 505 -864 Source: Unaudited, Company financials
  18. 18. 18 EBITDA Reconciliation Source: Unaudited, Company financials We are adding depreciation and amortization to operating income to calculate EBITDA. It is a key financial 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 enhance an investor’s understanding of our operating performance as we believe it is commonly reported and widely used by analysts and investors in our industry. It also provides useful information for comparison on a more comparable basis of our operating performance and those of our competitors, who follow different accounting policies. EBITDA is not a measure determined in accordance with GAAP. Our calculation of EBITDA may not be comparable to similarly titled measures reported by other companies. K GAAP (Consolidated) KRW bn Q1 ’09 Q4 ’08 Q1 ’08 QoQ Change YoY Change 1. Operating Income -412 -288 881 -124 -1,293 2. Depreciation of PP&E 546 527 671 19 -125 3. Amortization of Intangible Assets 10 11 14 -1 -4 EBITDA (1+2+3) 144 250 1,566 -106 -1,422

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