LG Display will make all-out efforts to improve the financial
structure by strengthening its operations focusing on market-to-order business in response to market volatility and economic uncertainty.
With respect to the market-to-order business which now accounts for 30% of its
revenue, LG Display will expand its share in revenue by over 40% in 2023 and 50% in 2024 to establish a stable profit structure resilient to market conditions. In addition, the company will further strengthen its position in the automotive display
sector and continue to lead the mid-sized OLED market including tablet PCs, as the rise in smartphone panel shipments in the second half of 2023 is expected to add positive fuel to its efforts to enhance its market-to-order business.
For its supply and demand-based business, the company
will focus more on high value-added areas to establish a reasonable operating system in response to market volatility.
After the companys decision
to end its LCD TV panel production in Korea, LG Displays large-sized OLED business was evaluated by an external institution and divided into separate cash-generating unit in accordance with related
accounting standards and objective procedures. The companys large-sized OLED business was reflected KRW 1,331 billion as asset impairment loss after calculated by an external institution, causing
the net loss to expand. Considering it occurred only in the financial statement without actually affecting business operations, it is in turn expected to remove possible uncertainties in the companys businesses in the future.
For its large-sized OLED business, LG Display will further strengthen its profit structure by improving
competitiveness in products and costs while concentrating continuously on qualitative growth. In addition, the company will make efforts to enhance its market position by further improving its fundamental competitiveness with its OLED technology, as
well as expanding its market-creating business with high growth potential such as Transparent and Gaming OLED panels.
LG Display will also secure
financial soundness by minimizing its investment such as investing only in essential and market-to-order businesses, while maintaining its inventory at the minimum level and flexibly adjusting production
accordingly.
Our preemptive move to reduce the companys inventory in the fourth quarter is expected to improve our performance down the road,
and the quarterly result is also expected to improve as we continue to intensely reduce our costs, said Sung-hyun Kim, CFO and Senior Vice President at LG Display.
Kim added, We will continue to improve our financial soundness while enhancing our business structure. Regarding our supply and demand business, we will
focus more on high value-added areas to establish reasonable operating system in response to market volatility. Through structural innovation centered on the
market-to-order business and expansion of market-creating business, we will establish stable profit structure and strengthen our future business portfolio.
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