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SEOUL, Korea (Jul. 25, 2018) – LG Display reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2018.
 
w   Revenues in the second quarter of 2018 decreased by 1% to KRW 5,611 billion from KRW 5,675 billion in the first quarter of 2018 and decreased by 15% from KRW 6,629 billion in the second quarter of 2017.
 
w   Operating loss in the second quarter of 2018 recorded KRW 228 billion. This compares with the operating loss of KRW 98 billion in the first quarter of 2018 and the operating profit of KRW 804 billion in the second quarter of 2017.
 
w   EBITDA in the second quarter of 2018 was KRW 681 billion, compared with EBITDA of KRW 812 billion in the first quarter of 2018 and with EBITDA of KRW 1,583 billion in the second quarter of 2017.
 
w   Net loss in the second quarter of 2018 was KRW 301 billion, compared with the net loss of KRW 49 billion in the first quarter of 2018 and with the net income of KRW 737 billion in the second quarter of 2017.
 
LG Display recorded KRW 5,611 billion in revenues and KRW 228 billion in operating loss in the second quarter of 2018 due to a continued and steep decline in panel prices and lower demand in panels driven by set makers’ conservative purchasing strategy.
 
Panels for TVs accounted for 42% of the revenue in the second quarter of 2018, mobile devices for 22%, tablets and notebook PCs for 19%, and desktop monitors for 17%.
 
LG Display recorded 116% in the liability-to-equity ratio, 99% in the current ratio, and 30% in the net debt-to-equity ratio as of June 30, 2018. The increased ratios of liability-to-equity and net debt-to-equity compared with the previous quarter were mainly due to the borrowings made for the strategic shift toward a more OLED-focused business structure.
 
LG Display will focus more on differentiated LCD features and technologies in the IT sector such as narrow bezel, IPS borderless, and oxide technology, as well as high-value-added products such as larger-size TV panels and commercial displays, considering that a structural oversupply in panels and fierce competition among display makers are expected to continue down the road.
 
In addition, LG Display will achieve a turnaround to profit in the OLED TV sector in the third quarter of 2018. By making its final decision to invest in its Gen 10.5 OLED panel production line in Paju, Korea, and by starting mass production in the latter half of 2019 at its Gen 8.5 OLED production line now under construction in Guangzhou, China, LG Display will accelerate the expansion of the global large-size OLED market.
 
“Panel area shipments in the third quarter are expected to increase by a mid-single digit percentage, as upcoming favorable seasonality is anticipated to drive up the sales volume. As the trend of panel prices is expected to turn positive, we anticipate seeing an increase in some panel prices, which will depend on the supply and demand situation per panel size,” said Don Kim, CFO of LG Display.
 
He added, “LG Display will invest KRW 3 trillion less than originally planned by 2020 by adjusting the timing and amount of investment while continuing to speed up the shift toward an OLED-focused business in the mid and long term.”
 
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Earnings Conference Call
LG Display will hold a bilingual conference call in English and Korean on July 25, 2018 starting at 10:00 a.m. Korea Standard Time to announce the second quarter of 2018 earnings results. Investors can listen to the conference call via https://events.arkadin.com/ev/APAC/kr/lgd18q1webcast
 
About LG Display
LG Display Co., Ltd. [NYSE: LPL, KRX: 034220] is the world’s leading innovator of display technologies, including thin-film transistor liquid crystal (TFT-LCD) and OLED displays, as well as the global pioneer in OLED lightning. The company manufactures display panels in a broad range of sizes and specifications primarily for use in TVs, notebook computers, desktop monitors, and various other applications, including tablets and mobile devices. It also produces a wide range of OLED light panels for the automotive and interior design sectors. LG Display currently operates manufacturing facilities in Korea and China, and back-end assembly facilities in Korea, China, Poland, and Vietnam. The company has approximately 54,000 employees operating worldwide. For more news and information about LG Display, please visit

www.lgdisplay.com.
 
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements. 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. Additional information as to 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.