LG Display Q4 2024 Earnings Report

LG Display EPS Results

• Actual EPS: -$0.60
• Consensus EPS: $0.07
• Beat/Miss: Missed by -$0.67
• One Year Ago EPS: N/A

LG Display Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $6.21 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

LG Display Announcement Details

• Quarter: Q4 2024
• Date: 1/22/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, January 22, 2025
• Conference Call Time: 12:00AM ET

LG Display (NYSE:LPL) Co., Ltd., headquartered in Seoul, South Korea, is a global manufacturer of thin-film transistor liquid crystal display (TFT-LCD) and organic light-emitting diode (OLED) panels. The company designs and produces display solutions for a wide range of applications, including televisions, desktop monitors, notebook computers, tablets, smartphones, signage and automotive screens. Its product offerings span large-screen television modules, ultra-high definition monitors, flexible and transparent OLED displays, and specialized industrial panels.

LG Display operates a network of production facilities and research centers across Asia, including major manufacturing sites in Paju and Gumi, South Korea, as well as Wuhan, China. It supplies panels to prominent electronics brands around the world in North America, Europe and other Asian markets. The company has invested in next-generation display technologies such as WOLED for premium TV applications and advanced LTPO backplanes for energy-efficient mobile devices.

Tracing its roots to a 1999 joint venture between LG Electronics and Philips, LG Display was formally established under its current name in 2008 and became a standalone entity within the LG Group. Over the years, the company has built a reputation for research-driven innovation, securing numerous patents in display engineering. LG Display’s executive leadership team, based at the company’s Seoul headquarters, is focused on driving growth through technological advancement and strategic partnerships in emerging display markets.

LG Display Q4 2024 Earnings Call Transcript

Key Takeaways

• In Q4 2024, LG Display delivered KRW 7.83 trillion in revenue (up 15% QoQ, 6% YoY) and achieved an operating profit of KRW 83.1 billion, marking a turnaround with a 17% EBITDA margin.
• For full‐year 2024, annual revenue rose 25% YoY and the company achieved a profit improvement of around KRW 2.1 trillion despite incurring mid‐KRW 100 billion one‐off expenses in Q3 and Q4.
• Balance sheet metrics show debt‐to‐equity of 307% and a net debt ratio of 155% in Q4, underscoring high leverage amid rising cash levels.
• Q1 2025 guidance anticipates a mid‐single digit QoQ decline in TV area shipments and a mid‐teens ASP fall, though LG Display expects to outperform typical seasonal lows through higher fab loading rates and model diversification.
• The auto display market is projected to exceed 200 million units in 2025 with OLED growing +70% YoY, and LG Display is targeting ~100% growth in auto displays leveraging its diverse OLED/LCD portfolio and strong OEM ties.

Presentation

[Translator]

Good afternoon. I am Brian Heo, in charge of LG Display's IR team. On behalf of the company, thank you to all the participants for joining us today in our Q4 2024 earnings call. Today, I have with me our CFO, Kim Sunghyun, Lee Ki-Yong, who's in charge of Business Intelligence, Kim Chun Deok, Vice President of Large Display Planning and Management, Ahn Sung-Chul, Team Head of Medium Display Business Strategy, Baek Seung-Yong, in charge of Small Display Planning and Management, and Son Ki-Hwan, VP of Auto Marketing.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Today's conference call will be conducted in both Korean and English, and for more details, please refer to the provisional earnings which we disclosed today or the IR events section on the company's website.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Also, before we begin, please take a moment to read the disclaimer.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

As a reminder, today's results are based on consolidated IFRS standards prepared for your benefit and have yet to receive an audit by an outside auditor.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Now, allow me to begin with our fourth quarter earnings for 2024. With continuing OLED-centric business structure upgrades, smartphone panel shipment in Q4 showed a sizable expansion, resulting in revenue increase of 15% Q-over-Q and 6% year-over-year, reporting KRW 7,832.9 billion.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Coupled with smartphone panel shipment expansion, rigorous cost savings and operational efficiency supported continuous earnings improvement, driving a turnaround in operating profit of KRW 83.1 billion. Absent any notable changes in the end user demand and in the relevant downstream market, we were able to drive year-over-year profit improvement of around KRW 2 trillion on a 2024 full-year basis.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

In Q4, we had around mid-100 billion one-off expense, including ERP-related severance pay for clerical workers, which is similar to the levels of previous quarter. KRW 1.3065 trillion, annually it is KRW 4.565 trillion, annual EBITDA margin is 17%. EBITDA in Q4 recorded KRW 1 trillion 306.5 billion and on a yearly basis, KRW 4 trillion and KRW 565 billion. EBITDA margin rate in 2024 was 17%. Next is area shipment and ASP per square meter. Q4 area shipment was up 5% Q over Q on shipment expansion driven mostly by TV panels, and also on year-over-year basis there was 19% increase as TV panel shipment expansion drove overall area shipment growth. ASP per square meter also increased 6% Q-on-Q, reaching $873 following volume growth for smartphone panels.

[Brian Heo, Head of Investor Relations at LG Display]

Next is product revenue mix. In Q4, mobile and others accounted for the biggest portion of the revenue mix at 42%. It's quite positive to see sustained uptrend in panel shipment every year supported by stable supply capacity.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

IT segment revenue was down 28% Q-on-Q on prolonged sluggishness in the downstream demand, and we are seeing varying volatilities in shipment across different quarters by product segments and customers.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Following OLED TV panel shipment expansion, TV segment revenue posted Q-o-Q and Y-o-Y growth accounting for 22% of revenue mix, which is mostly flat due to overall increase in total revenue.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Auto segment revenue also increased mid-10% Q-on-Q and Y-o-Y, while its share of the mix staying at 8%, same as last quarter.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

OLED share out of total revenue was up 2 percentage points Q-on-Q and year-over-year, reaching 60%, which is record high, further solidifying the outcome from the company's OLED-centric business portfolio transformation.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Next is on the financial position and key metrics.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Q4 cash and cash equivalent was KRW 2,021.6 billion, while inventory asset declined to KRW 2,671.2 billion on the back of shipment expansion in time for the peak season during Q4.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Debt-to-equity ratio and net debt ratio recorded 307% and 155% respectively.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

In terms of Q1 guidance, we project area shipment to see a decline in TV panel shipment impacted by seasonality, reporting a decline of more than a mid-single digit fall Q-over-Q. ASP per square meter is expected to fall by around mid-10% range Q-on-Q due to it being a slow season for smartphone panels. However, with loading rate increase based on volume growth and diversification in smartphone models, we expect performance to be quite strong compared to a typical first quarter season.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Next, I will invite our CFO, Kim Sunghyun, to run through the highlights.

[Brian Heo, Head of Investor Relations at LG Display]

Good afternoon. I am Kim Sunghyun, the CFO. Thank you for joining our earnings call today.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Against the macro headwind of delayed demand recovery in the downstream market, we are seeing signs of changing global trade environment leading to ever-heightened business volatilities. We therefore continue to drive OLED-centric business structural upgrades in order to sustain the business performance uptrend and are focusing on rigorous cost innovation and operational efficiency activities to improve profitability of our business, which is the company's priority as we push ahead with stronger execution capacity.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

As a result, despite uncertain market backdrop, 2024 annual revenue was up 25% year-on-year, and despite mid-100 billion level of one-off expense in Q3 and Q4 respectively last year, we drove meaningful outcome of reporting around KRW 2 trillion of profit improvement on an annual basis.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Excluding the impact of one-off factors, earnings results since Q3 of last year have been very much stable, and we expect such trend will continue into the first half of this year, which is typically an off-season, allowing us to constrain the fluctuations and ensure a more steady trend without the dramatic changes that were seen in the past.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

This year, we will endeavor to not only achieve a turnaround in annual results but also meet market expectations underpinned by OLED panel shipment expansion across different product segments.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Next, I will run through the business plan and strategies.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

OLED for mobile will secure a competitive edge by preparing for future technologies required by the market and the customer. Also, we will drive utilization in the first half, supported by shipment expansion and diversification of product offerings based on stronger production capabilities to grow top line and to strengthen profitability.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

For medium IT segment, underpinned by global customer base and differentiated technologies including IPS Black and Neo LED, we will respond effectively to the competitive landscape. Although the global IT market has been sluggish for an extended term, we are carrying out various internal activities that can drive profitability, including innovating our cost base. As such, we believe in the second half, if we start to see signals for demand recovery and many other opportunities, we can sufficiently have an upside compared to the targets set at the start of the year.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

For IT OLED, although the market situation does not favor the sale of high-end products, we expect to see year-over-year growth in 2025 since there clearly exists a unique value offering of tandem OLED, such as the lower power profile. Also, in step with market changes, we are looking at various ways to scale up operational efficiency, such as maximizing the use of production infrastructure.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Enlarge OLED business through diversification of product lineup, including ultra-large TV panels and a more solid portfolio, as well as expansion into differentiated and high-end lineup, such as gaming OLED monitors that better caters to consumer needs. We plan to drive shipment expansion. At the same time, we plan to sustain quality-driven growth and bring profitability enhancements as well through efficient production strategy underpinned by the end-user demand and cost savings and other operational innovations.

[Sunghyun Kim, CFO at LG Display]

Next is auto business. Recently, the automobile market is starting to recover gradually, but there are uncertainties lingering around EVs as countries are scaling down on subsidies. LG Display has a close and stable relationship with our customer base, and we have a portfolio of customers spanning from premium to the mass market. And because we have a portfolio of distinct product and technology offerings, which are tandem-based plastic OLED, ATO advanced OLED, and high-end LTPS LCD, we will continue to endeavor to win orders and grow the top line from not only EVs but also internal combustion engine vehicles as we operate our business under a solid footing.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Last point is on CapEx. Since uncertainties persist and with higher demand volatility, we wish to keep to a conservative stance when it comes to making investments.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Hence, our priority is to strengthen business fundamentals and financial soundness and secure stable profitability, so we will fully utilize the infrastructure that we currently own while maintaining prudence when it comes to CapEx for new expansion.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Last year, CapEx spend amounted to KRW 2.2 trillion, and for this year, we estimate low to mid KRW 2 trillion of CapEx. Investments will be focused on what's needed for the business structure upgrade, and spending will be from cash flow generated based on profitable operations as we plan on enhancing investment efficiency. Thank you.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

That brings us to the end of the earnings presentation for Q4 of 2024. We will now take your questions. Operator, please commence with the Q&A session.

[Operator]

[Foreign language].

[Operator]

Now, Q&A session will begin. Please press star one, that is star 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 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 per each participant.

[Operator]

[Foreign language].

[Operator]

The first question will be provided by Kim Dong-won from KB Securities. Please go ahead with your question.

[Dong-won Kim, Senior Managing Director at KB Securities]

[Foreign language].

[Dong-won Kim, Senior Managing Director at KB Securities]

Thank you for taking my question. I would like to ask you two questions. First one is with respect to your mid- to small-size P-OLED business. With regards to your North America-based strategic customer, I understand that there is heightened competition across different suppliers to gain a share of wallet of that specific customer. Would like to understand as to what your strategies are in order to further improve on your profitability and for you to maintain your share of wallet and market share in the smartphone panel business against that specific customer, and related to that, I also understand that for that company, there is going to be the introduction of the most mass-market level entry-level model that is going to be introduced into the market.

[Dong-won Kim, Senior Managing Director at KB Securities]

Would like to understand whether that will help you mitigate the impact from seasonality and also what impact would that have on your bottom line? Second question is with respect to the exclusive supply of foldable panels to your strategic customer. Would like to understand what LG Display's position and strategies are to cater to that need?

[Dong-won Kim, Senior Managing Director at KB Securities]

It is correct that against the backdrop of more heightened competition across different suppliers, we are very much focused on making preparations for future-proof technologies and also to gain our mass production competitiveness so that we can further reinforce our company's competitive edge, and at the same time, we have plans to further improve on continuous productivity as well as more strengthened at a high level of quality and also engage in innovation, cost innovation activities, which will help with strengthening and reinforcing the business competitiveness of the company.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Now, looking at the smartphone business, as of today, we continuously see growth in terms of the panel shipment, and we are strengthening the product mix centering around the new models, and also, through diversification of the models, we are able to increase the volume, which helps us to minimize the gap between the loading rates for our production lines between the first half and the second half of the year. As a result, we are looking forward to around 20% on a year-over-year basis growth in terms of shipment.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

In terms of the small panel business, the revenue mix has moved from 26% in 2021 to 33% in 2024. So you can see that continuously we've seen an uptrend. Going forward, we would actively utilize the existing infrastructure in terms of that is production infrastructure that we have. We will fully utilize them so that we can push for a more expanded shipment and further facilitate diversification of models as well as improve our revenue mix and product mix, focusing on the new models so that we may ensure a top-line growth and secure bottom-line profitability.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Within the market, there is a certain level of demand for different types of form factors. However, we are working under a continuous backdrop of macro uncertainty, and we expect there to be quite a bit of volatility when it comes to end-user demand. But LG Display has a firm foundation of offering foldable products on the notebook segment, which we are at this point mass-producing and supplying to a global customer. Based upon that know-how in the smartphone business as well, we will be fully mindful of the acceptance level in the market with regards to such unique and differentiated products and also be mindful of the pace at which the market is growing and in line with which we will come up with a basic structure in terms of supplying of those differentiated products and accordingly expand on the business opportunity.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

We'll take the next question.

[Operator]

[Foreign language].

[Operator]

The following question will be presented by Hyun Joon from UBS Securities. Please go ahead with your question.

[Young Hyun, Global Banking Business Management for SEA at UBS Securities]

[Foreign language].

[Young Hyun, Global Banking Business Management for SEA at UBS Securities]

Thank you. I just have a single question relating to your IT OLED business. We see that compared to what was originally projected, the demand for your tablet OLED, the tablet OLED panels really underperformed the expectation. Compared to the actual shipment number that you've seen on a quarterly basis for 2024, what is your outlook for 2025?

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

You are correct because of the sluggishness in the global IT market compared to what we had planned and expected, the actual sales of tablet OLED was not up to par, so the current macro environment does not favor sales of high-end products, but because we have a distinct differentiation in terms of low power and the tandem technology, which is best fit for IT devices, we expect that in 2025 we will be able to drive year-over-year growth.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Now, having said that, with regards to a specific target in terms of supply as well as market share, these are some detailed information that we will not be able to share with you because they are closely related to our customers. So I ask for your understanding. Now, for your information, basically under this backdrop where there is limited panel shipment for tablet OLED, the company is looking at various different ways that will help us further increase and maximize on the operational efficiency of the fab.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Yes, I just want to correct one thing. The analyst that asked the question was from UBS.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Next question, please.

[Operator]

[Foreign language].

[Operator]

The following question will be presented by NamKung Hyon from Shinhan Investment and Securities. Please go ahead with your question.

[NamKung Hyon, Research Analyst at Shinhan Investment and Securities]

[Foreign language].

[NamKung Hyon, Research Analyst at Shinhan Investment and Securities]

Thank you. I am NamKung Hyon from Shinhan Securities. I have one question relating to especially your large panel OLED business. Come second half of the year, a lot of the depreciation will come to an end. Would like to understand as to what the company's strategies are in terms of your bottom line if you were to compare 2024 versus 2025?

[Chun Deok Kim, VP of Large Display Planning and Management at LG Display]

[Foreign language].

[Chun Deok Kim, VP of Large Display Planning and Management at LG Display]

Hello, I am Kim Chun Deok. I'm Vice President of Large Display Planning and Management. The TV market in general, we expect the uncertainties to persist in 2025, as was the case in 2024. The company, under such a constraint in terms of demand recovery, had focused its internal efforts on improving and enhancing the profitability. In 2024, we had rigorous innovations against the cost base, and we put in a lot of efforts to improve on the operational side, and such effort will continue on in 2025.

[Chun Deok Kim, VP of Large Display Planning and Management at LG Display]

[Foreign language].

[Chun Deok Kim, VP of Large Display Planning and Management at LG Display]

As you've also correctly mentioned, yes, in the second half of the year, the Guangzhou Fab is going to see its depreciation come to an end, which obviously works as a positive for us, so going forward, we are going to continuously strengthen the cost competitiveness that we have, based on which we will make sure that we operate our fab in the most optimal way possible, and also going forward, we will further strengthen our cooperation with our strategic customers, also expand on the sales by focusing on our differentiated products such as the gaming monitors, and at the same time continue to work on our cost base, all of which will help us bring about meaningful results in terms of the profitability.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Any other questions?

[Operator]

[Foreign language].

[Operator]

The following question will be presented by Jeong Won-seok from iM Securities. Please go ahead with your question.

[Won‑seok Jeong, Analyst at iM Securities]

[Foreign language].

[Won‑seok Jeong, Analyst at iM Securities]

Thank you for taking my question. I am Jeong Won-seok from iM Securities. I have two very simple questions. There is a lot of changes and uncertainties in the downstream market. So the market considers your conservative stance on investment as something being positive, especially with regards to the eighth-generation IT OLED business. We'd like to understand as to what are some of your technologies and product segments that you would focus on to drive future growth. Second question is, you've mentioned depreciation. We'd like to understand as to, aside from last year and this year, we'd like to understand what the mid to longer-term depreciation trend would look like.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

This is the CFO responding to your question. Our basic take of the macro environment is that there still persist external uncertainties and there's high level of demand volatility, which have been ongoing for a prolonged period, and as you've, I take your question to talk about possible new investment, especially since you've mentioned the eighth-generation IT OLED, so under this backdrop, we've repeatedly communicated that the top priority for our company for the time being is to focus on improving the business fundamentals as well as enhancing the financials of the company and also securing a stable bottom line profitability. It is under that stance that we had kept to a quite conservative CapEx or investment approach. Now, when it comes to the eighth-generation IT OLED, our belief is, our take of the market is that still there is high level of uncertainties.

[Sunghyun Kim, CFO at LG Display]

LG Display, once we are able to identify clear market signal of an improvement on that backdrop, and once we are able, and once we gain a conviction that that is where the market is going, and once we have that visibility, we are fully prepared in terms of the resources and the timing to be able to cater to and respond to that change.

[Sunghyun Kim, CFO at LG Display]

[Foreign language].

[Sunghyun Kim, CFO at LG Display]

Regarding depreciation, if you look back to 2024, we've kept that figure at around KRW 5.1 trillion or KRW 5.2 trillion. This, and if you look at this year, well, actually end of last year, some of the fab line for smartphones P-OLED had ended in terms of its depreciation period. And in the second half of this year for large OLED fab in Guangzhou, there will also be some depreciation that will come to a termination there as well. So as such, we're looking towards to around KRW 4.3 trillion. So a decline to KRW 4.3 trillion that is in depreciation.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

Yes, we will take the final question.

[Operator]

[Foreign language].

[Operator]

The last question will be presented by Kim So-won from Kiwoom Securities. Please go ahead with your question.

[So-won Kim, Analyst at Kiwoom Securities]

[Foreign language].

[So-won Kim, Analyst at Kiwoom Securities]

Thank you for taking my question. I'm Kim So-won from Kiwoom Securities. My question relates to your auto business. As the CFO has mentioned during the presentation, the auto market, as well as the EV segment, has experienced quite a bit of slump. We'd like to understand what LG Display's assessment is of the overall auto market, also particularly regarding the auto display market, and what your projections are in terms of the market going forward and what your objectives and strategies are for this business.

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

[Foreign language].

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

Hello, I am Son Ki-hwan. I'm VP of Auto Marketing. In terms of the auto market, there are both negatives and some positives, negatives being a global economic slump as well as sluggishness that we see in the EV market. But there are also positives, which are interest rate cuts and more stronger CO2 emissions regulation that was adopted in Europe for 2025. So the mix of factors coexist, and in 2025, we think that the auto market in general will be about flat on a year-over-year basis at around 90 million cars.

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

[Foreign language].

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

On the other hand, if you look at the auto display market, it continuously is showing a growth. It is providing not just a driving or mileage-related information, but the display works to provide information, entertainment, and plays a key function in terms of safety as well. As such, we are seeing the adoption rate per vehicle increase, and we think that number will surpass 200 million units of cars. As a result, OLED is expected to grow by more than 70% year-over-year, while LTPS LCD growing on a YOY basis more than 20% growth.

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

[Foreign language].

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

It's just to note that above 200 million is sales in the number of auto display units. Now, so based upon the Tandem OLED technology, we have a variety of product portfolio offerings, including Tandem OLED-based P-OLED ATO, LTPS LCD, and Oxide LCD. So we are able to cover the mainstream as well as the premium OEM customers. We have the basis of customer base of major companies, and also we operate our auto display business that is well balanced between growth and profitability.

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

[Foreign language].

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

Our key competitiveness is the strong and close relationship that we have with our customer base, who include the European premium companies as well as Korea and Japanese incumbent auto powerhouses, as well as a global EV maker based in the U.S. Based upon that, vis-à-vis the OEM customers, we are looking to a growth rate of about 100%.

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

[Foreign language].

[Ki-Hwan Son, VP of Auto Marketing at LG Display]

Supported by such differentiated technology offerings, mid- to longer-term, and variety of product portfolios and cost savings and very solid customer base, we will make sure that we maintain a market share number one position that is based off of the revenue and will continue to further strengthen our market leadership going forward.

[Brian Heo, Head of Investor Relations at LG Display]

[Foreign language].

[Brian Heo, Head of Investor Relations at LG Display]

This brings us to the end of the fourth quarter 2024 earnings conference call of LG Display. Thank you all for joining us this afternoon, and if you have any unanswered questions, please feel free to contact us at the IR team. Thank you very much.

Participants

Executives

• Chun Deok Kim, VP of Large Display Planning and Management
• Sunghyun Kim, CFO
• Brian Heo, Head of Investor Relations
• Ki-Hwan Son, VP of Auto Marketing

Analysts

• So-won Kim, Analyst at Kiwoom Securities
• Won‑seok Jeong, Analyst at iM Securities
• Translator
• Young Hyun, Global Banking Business Management for SEA at UBS Securities
• Dong-won Kim, Senior Managing Director at KB Securities
• NamKung Hyon, Research Analyst at Shinhan Investment and Securities