LGD.2Q11 Results

8/6/2019 LGD.2Q11 Results

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Q2 ’11 Earnings ResultsJuly 21, 2011



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.

§All financial information contained in this document is based on consolidated IFRS.

§This presentation also includes information regarding our historical financial performance through June 30,

2011, and our expectations regarding future performance which is available on our investor relations website at

http://www.lgdisplay.comunder the file name Q2 2011 Earnings Results Presentation.



1. Q2 ’11 Earnings Results

2. Performance Highlights

3. Management Focus



3

Revenues & Profits

* EBITDA = Operating Income + Depreciation + AmortizationSource : Unaudited, Company financials

IFRS (Consolidated)

Revenues Profits

(Unit : KRW B)(Unit : KRW B, %)

OperatingIncome

Net Income

Incomebefore tax

EBITDA*

Q1 ’11Q2 ’11 Q2 ’10

1,000

7,000

6,000

5,000

4,000

3,000

2,000

6,0476,0476,4546,454

13% (QoQ)6% ¯ (YoY)

5,3665,366

Q1 ’11 QoQ YoY Q2 ’10Q2 ’11

-80%726

46% -41%1,433

555

604

11%

22%

-48

845

21

-51

-1%

14%

N/A

-75% N/A

N/A -96%

-239

577

-115

-202

-4%

11%



Financial Positions & Ratios

Financial Positions Financial Ratios

(Unit : KRW B) (Unit : %)

Source : Unaudited, Company financials

* Cash includes short term financial instruments.

4

** Net Liabilities to Equity Ratio: (Total liabilities - cash equivalents) / shareholders’ equity

IFRS (Consolidated)

739

3,951

11,084

3,680

8,178

11,858

13,357

2,256

3,212

9,585

22,942

Q2 ’10

1,5932,275Net Debts

4,6054,639Debts

3,0122,364Cash*

2,5052,822Inventory

10,755

3,555

10,015

13,570

15,784

8,541

24,325

Q1 ’11

10,776Shareholders’ Equity

4,184Non-Current Liab.

9,710Current Liabilities

13,894Liabilities

16,634Non-Current Assets

8,036Current Assets

24,670Assets

Q2 ’11

Current Ratio

Net Debt toEquity Ratio

Liabilities toEquity Ratio

Net Liabilitiesto Equity Ratio**

Q2 ’10 Q2 ’11Q1 ’11

21%

15%

7%

107%126% 129%

78%

98%107%

117%

85% 83%



Cash Flow

5

Source : Unaudited, Company financials

Cash Flow StatementNet Cash Flow

(Unit : KRW B) (Unit : KRW B)

* Based on cash flow before financing activities

IFRS (Consolidated)

Cash In Cash Out Net*

Depreciation

Net incomeCapex

21

-250Change in WC

894Others-152

-1,021

-50836 Financing activities

3Other

(508)Cash flow before financing activities

2,364Cash at end of quarter

(648)Net change in Cash

(179)Dividends Paid

(143)Cash flow from financing activities

(1,021)Cash flow from investing activities

(152)Others(250)Change in Working Capital

894Depreciation & Amortization

21Net Income

513Cash flow from operating activities

3,012Cash at beginning of quarter

Q2 ’11



Shipments and ASP

6

Net Display area shipment in K m2

ASP per m2 (USD), LCM basedSource: Company financials

Total K m² ASP/m² (USD)

7,200

7,918

6,728

7,454

6,446

$866

$785$743

$702

$707

0

2,000

4,000

6,000

8,000

10,000

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11

$0

$200

$400

$600

$800

$1,000



Revenue: Product Mix

Source: Company financials (KRW)

7

50%

100%

0

NBPC

MNT

TV

Mobile etc.

Smartbook

53%58% 56%

48% 48%

23%19%

19%

24% 20%

12% 13%14%

14%

2%3% 5%

5% 10%

5% 8% 7% 9% 8%

17%

Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11



Capacity

Source: Company financials

8

P7

P61 ~ 2

P1 ~ P5

P81 ~ 3

Q2 ’10 Q3 ’10 Q4 ’10

Quarterly producible capacity by area (M m² )

8.6

Q1 ’11

10.4

Q2 ’11

10.7 10.7

11.2



USA

Europe

China

FPR 3D TV Update

FPR Market Share Comparison

W28 : 7/4 ~7/11

9



► Differentiating Product and Biz. Structure

► Reasonably Adjusting Input Resources

►Maximizing Resource Management Efficiency

Management Focus

10



11

Questions and Answers



Appendix

12



13

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.

10.8

-4.5

4.3

-323

-115

-202

577

-239

233

5,133

5,366

Q1 '11Accounts Q1 '09 Q2 '09 Q3 '09 Q4 '09 2009 Q1 '10 Q2 '10 Q3 '10 Q4 '10 2010 Q2 '11

Revenue 3,542 4,772 5,818 5,905 20,038 5,876 6,454 6,698 6,483 25,512 6,047

COGS 3,649 4,193 4,591 5,043 17,477 4,639 5,125 5,927 6,089 21,781 5,596

Gross Profit -107 579 1,227 862 2,561 1,237 1,329 771 394 3,731 451

Operating Income -317 352 662 313 1,010 789 726 182 -387 1,310 -48

EBITDA 237 1,072 1,450 1,091 3,852 1,421 1,433 986 396 4,236 845

Income before tax -488 429 714 358 1,013 842 604 244 -424 1,266 -51

Net Income -347 367 595 502 1,118 649 555 224 -268 1,159 21

EPS (Unit: KRW) -969 1,026 1,664 1,403 3,124 1,813 1,550 627 -750 3,240 60

Margins (%)

Gross Margin -3.0 12.1 21.1 14.6 12.8 21.1 20.6 11.5 6.1 14.6 7.5

Operating Margin -8.9 7.4 11.4 5.3 5.0 13.4 11.2 2.7 -6.0 5.1 -0.8

EBITDA Margin 6.7 22.5 24.9 18.5 19.2 24.2 22.2 14.7 6.1 16.6 14.0



14

Unit: KRW Bn

IFRS Statements of Financial Position

Source: Unaudited, Company financialsIFRS (Consolidated)

* Cash includes short term financial instruments.


14.8

30,056

10,755

2,495

2,110

13,570

2,505

3,012

24,325

Q1 ’11Accounts Q1 ’09 Q2 ’09 Q3 ’09 Q4 ’09 Q1 ’10 Q2 ’10 Q3 ’10 Q4 ’10 Q2’11

Assets 18,728 18,438 18,671 19,704 20,767 22,942 23,793 23,858 24,670

Cash* 3,544 2,671 2,678 3,318 3,144 3,212 3,146 3,134 2,364

Inventory 1,142 1,351 1,666 1,668 1,716 2,256 2,492 2,215 2,822

Liabilities 10,094 9,442 9,114 9,664 10,246 11,858 12,504 12,797 13,894

Short-term debts 1,550 2,268 1,941 2,004 1,329 1,393 1,855 2,100 1,775

Long-term debts 2,720 1,965 1,842 2,076 2,300 2,558 2,365 2,543 2,864

Shareholders’ Equity 8,634 8,996 9,557 10,040 10,521 11,084 11,289 11,061 10,776

BPS (Unit: KRW) 24,130 25,141 26,709 28,059 29,403 30,977 31,551 30,912 30,115

Net debt to equity ratio

(%)8.4 17.4 11.6 7.6 4.6 6.7 9.5 13.6 21.1



Source: Unaudited, Company financials IFRS (Consolidated)

* Working Capital consists of net change in AR, Inventory, AP and F/X effect

** Cash flow f rom Investing Activities exclude increase (decrease) of short term financial instruments.

Unit: KRW Bn

IFRS Statements of Cash Flow


-122

3

0

52

-177

-991

814

302

-189

816

-115

Q1 ’11Accounts Q1 ’09 Q2 ’09 Q3 ’09 Q4 ’09 2009 Q1 ’10 Q2 ’10 Q3 ’10 Q4 ’10 2010 Q2 ’11

Net Income -347 367 595 502 1,118 649 555 224 -268 1,159 21

Depreciation & Amortization 554 720 788 778 2,842 632 707 804 783 2,926 894

Others 448 -185 300 65 626 -144 369 -77 351 500 -152

Working Capital* 460 -703 -487 306 -424 -187 -423 71 873 334 -250

Cash flow from operatingactivities

1,115 200 1,196 1,651 4,162 950 1,208 1,022 1,739 4,919 513

Cash flow from investingactivities** -998 -964 -865 -1,310 -4,137 -765 -1,126 -1,469 -2,155 -5,515 -1,021

Net cash flow before financing

activities 117 -764 331 341 25 185 82 -447 -416 -596 -508

Financing Activities 19 70 -324 299 64 -376 165 381 399 569 36

Dividends 0 -179 0 0 -179 0 -179 0 0 -179 -179

Change in non-controlling

interest0 0 0 0 0 17 0 0 5 22 3

Net change in cash 136 -873 7 640 -90 -174 68 -66 -12 -184 -648

15



Source: Unaudited, Company financials IFRS (Consolidated)

We add depreciation and amortization expense to operating income to calculate EBITDA. It is a key financialmeasure 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 operatingperformance 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 defined by GAAP. Our calculation of EBITDA may not be consistent with other similarlytitled measures reported by other companies.

Unit: KRW Bn

EBITDA Calculation


577

52

764

-239

Q1 ’11Accounts Q1 ’09 Q2 ’09 Q3 ’09 Q4 '09 2009 Q1 ’10 Q2 ’10 Q3 ’10 Q4 ’10 2010 Q2 ’11

1. Operating Income -317 352 662 313 1,010 789 726 182 -387 1,310 -48

2. Depreciation 544 708 771 756 2,779 596 666 761 734 2,757 836

3. Amortization 10 12 17 22 63 36 41 43 49 169 58

EBITDA (1+2+3) 237 1,072 1,450 1,091 3,852 1,421 1,433 986 396 4,236 845

16



LGD.2Q11 Results

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