Q1 12 Earnings Results

Apr 24, 2012

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 Mar. 31, 2012, and our expectations regarding future performance which is available on our investor relations website at http://www.lgdisplay.com under the file name Q1 2012 Earnings Results Presentation.

1. Q1 12 Earnings Results 2. Performance Highlights 3. Q2 12 Outlook

Revenues & Profits

Revenues
(Unit : KRW B)

Profits
(Unit : KRW B, %)

Q1 12
6% (QoQ) 15% (YoY)
8000

Q4 11 Q1 11

QoQ

YoY

7,000

Operating Income

-178
-3%

-145
-2%

-239
-4%

N/A

N/A

6,000

5,000

EBITDA*
4,000

812
13%

849
13%

577
11%

-4%

41%

6,184

6,610 5,366

3,000

2,000

Income before tax

-197

-133

-202

N/A

N/A

1,000

Net Income

-129

-6

-115

N/A

N/A

Q1 12

Q4 11

Q1 11
IFRS (Consolidated)

Source : Unaudited, Company financials 3

* EBITDA = Operating Income + Depreciation + Amortization

Financial Positions & Ratios

Financial Positions
(Unit : KRW B)

Financial Ratios
(Unit : %)

Q1 12
Assets Current Assets Cash* Inventory Non-Current Assets Liabilities Current Liabilities Non-Current Liab. Shareholders Equity Debts Net Debts 24,532 7,383 2,393 2,198 17,149 14,533 9,691 4,842 9,999 5,254 2,861

Q4 11
25,163 7,858 2,333 2,317 17,305 15,032 9,912 5,120 10,131 4,610 2,277

Q1 11
24,325 8,541 3,012 2,505 15,784 13,570 10,015 3,555 10,755 4,605 1,593
Net Debt to Equity Ratio Current Ratio Liabilities to Equity Ratio

Q1 11

Q4 11

Q1 12

148% 126%

145%

85% 79% 76%

29% 22% 15%

IFRS (Consolidated)

* Cash includes short term financial instruments.

Source : Unaudited, Company financials 4

Cash Flow
Net Cash Flow
(Unit : KRW B)

Cash Flow Statement

(Unit : KRW B)

Q1 12 Cash at beginning of quarter

Others

2,333 656 (129) 990 70 (275) (1,273) (617) 677 677 60 2,393
IFRS (Consolidated)

-129 402 70 -1,273

Net income

Cash flow from operating activities Net Income

Change in WC

Depreciation & Amortization Change in Working Capital

Capex

Depreciation

Others Cash flow from investing activities

990

Cash flow before financing activities Cash flow from financing activities Financing activities

60 Cash In Cash Out Net

Net change in Cash Cash at end of quarter

* Based on cash flow before financing activities

Source : Unaudited, Company financials 5

Shipments and ASP

Total K m ASP/m (USD)

10,000

$1,000

8,000 708

747 7,442 6,757

8,100

8,414

8,089

$800

705

6,000

684

669

$600

4,000

$400

2,000

$200

0 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12

$0

Net Display area shipment in K m2 Source: Company financials 6 ASP per m2 (USD), LCM based

Revenue: Product Mix

100%
9% 5% 14%

8% 11% 13%

9% 11% 14%

11% 9% 13%

12% 5% 15%

Mobile etc. Tablet PC Notebook

24%

20%

19%

20%

21%

Monitor

50%

48%

48%

47%

47%

47%

TV

0
Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12

Source: Company financials (KRW) 7

Capacity
Quarterly producible capacity by area (M m )
11.5 11.2 10.7 10.2 11.1

P81 ~ 3

P7

P61 ~ 2

P1 ~ P5 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12

Source: Company financials

Outlook

Q2 12

Total Shipment in m2 (QoQ)

Around 10% QoQ

ASP
Slight upward trend expected

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Questions and Answers

Appendix

IFRS Statements of Income

Unit: KRW Bn Accounts Revenue COGS Gross Profit Operating Income EBITDA Income before tax Net Income EPS (Unit: KRW) Margins (%) Gross Margin Operating Margin EBITDA Margin 21.1 13.4 24.2 20.6 11.2 22.2 11.5 2.7 14.7 6.1 -6.0 6.1 14.6 5.1 16.6 4.3 -4.5 10.8 7.5 -0.8 14.0 2.9 -7.8 7.3 5.2 -2.2 12.8 5.0 -3.8 11.2 5.3 -2.9 13.1 Q1 '10 5,876 4,639 1,237 789 1,421 842 649 1,813 Q2 '10 6,454 5,125 1,329 726 1,433 604 555 1,550 Q3 '10 6,698 5,927 771 182 986 244 224 627 Q4 '10 6,483 6,089 394 -387 396 -424 -268 -750 2010 25,512 21,781 3,731 1,310 4,236 1,266 1,159 3,240 Q1 '11 5,366 5,133 233 -239 577 -202 -115 -323 Q2 '11 6,047 5,596 451 -48 845 -51 21 60 Q3 '11 6,269 6,088 180 -492 456 -695 -688 -1,921 Q4 '11 6,610 6,265 345 -145 849 -133 -6 -17 2011 24,291 23,081 1,210 -924 2,727 -1,081 -788 -2,202 Q1 '12 6,184 5,856 328 -178 812 -197 -129 -361

Source: Unaudited, Company financials

IFRS (Consolidated)

Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.

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IFRS Statements of Financial Position

Unit: KRW Bn Accounts Assets Cash* Inventory Liabilities Short-term debts Long-term debts Shareholders Equity BPS (Unit: KRW) Net debt to equity ratio (%) Q1 10 20,767 3,144 1,716 10,246 1,329 2,300 10,521 29,403 4.6 Q2 10 22,942 3,212 2,256 11,858 1,393 2,558 11,084 30,977 6.7 Q3 10 23,793 3,146 2,492 12,504 1,855 2,365 11,289 31,551 9.5 Q4 10 23,858 3,134 2,215 12,797 2,100 2,543 11,061 30,912 13.6 Q1 11 24,325 3,012 2,505 13,570 2,110 2,495 10,755 30,056 14.8 Q211 24,670 2,364 2,822 13,894 1,775 2,864 10,776 30,115 21.1 Q311 24,774 2,032 2,369 14,591 1,133 3,482 10,183 28,458 25.4 Q411 25,163 2,333 2,317 15,032 888 3,722 10,131 28,314 22.5 Q1 12 24,532 2,393 2,198 14,533 1,787 3,467 9,999 27,944 28.6

Source: Unaudited, Company financials * Cash includes short term financial instruments.

IFRS (Consolidated)

Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.

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IFRS Statements of Cash Flow

Unit: KRW Bn Accounts Net Income Depreciation & Amortization Others Working Capital* Cash flow from operating activities Cash flow from investing activities** Net cash flow before financing activities Financing Activities Dividends Change in non-controlling interest Net change in cash Source: Unaudited, Company financials * Working Capital consists of net change in AR, Inventory, AP and F/X effect ** Cash flow from Investing Activities exclude increase (decrease) of short term financial instruments. Q1 10 649 632 -144 -187 950 -765 185 -376 0 17 -174 Q2 10 555 707 369 -423 1,208 -1,126 82 165 -179 0 68 Q3 10 224 804 -77 71 1,022 -1,469 -447 381 0 0 -66 Q4 10 -268 783 351 873 1,739 -2,155 -416 399 0 5 -12 2010 1,159 2,926 500 334 4,919 -5,515 -596 569 -179 22 -184 Q1 11 -115 816 -189 302 814 -991 -177 52 0 3 -122 Q2 11 21 893 -151 -250 513 -1,021 -508 36 -179 3 -648 Q3 11 -688 948 318 289 867 -947 -80 -252 0 0 -332 Q4 11 -6 994 -160 638 1,466 -1,223 243 58 0 0 301 2011 -788 3,651 -182 979 3,660 -4,182 -522 -106 -179 6 -801 Q1 12 -129 990 -275 70 656 -1,273 -617 677 0 0 60

IFRS (Consolidated)

Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.

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EBITDA Calculation
Unit: KRW Bn Accounts 1. Operating Income 2. Depreciation 3. Amortization EBITDA (1+2+3) Q1 10 789 596 36 1,421 Q2 10 726 666 41 1,433 Q3 10 182 761 43 986 Q4 10 -387 734 49 396 2010 1,310 2,757 169 4,236 Q1 11 -239 764 52 577 Q2 11 -48 835 58 845 Q3 11 -492 885 63 456 Q4 11 -145 929 65 849 2011 -924 3,413 238 2,727 Q1 12 -178 927 63 812

Source: Unaudited, Company financials

IFRS (Consolidated)

We add depreciation and amortization expense 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 investors 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 defined by GAAP. Our calculation of EBITDA may not be consistent with other similarly titled measures reported by other companies.

Any discrepancies in any table between the totals and the sums of the amounts listed are due to rounding.

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