LG Display Co., Ltd. (NYSE:LPL) Q3 2022 Earnings Conference Call October 26, 2022 1:00 AM ET

Company Participants

Sunghyun Kim - Chief Financial Officer

Hee Yeon Kim - Senior Vice President-Corporate Strategy Group

Daniel Lee - In Charge-Large Display Marketing

Ki Hwan Son - Vice President-Auto Marketing

Seong Gon Kim - In Charge-Medium Display Marketing

Seung Min Lim - Vice President-Corporate Planning

Brian Heo - Head of Investor Relations

Conference Call Participants

SK Kim - Daiwa Capital Market

Junghoon Chang - Samsung Securities

Won-Suk Chung - Hi Investment and Securities

Han-Soo Kim - Hana Securities

Operator

[Foreign Language] [Interpreted] Good morning and good evening. First of all, thank you all for joining this conference call. And now we will begin the Conference of the Fiscal Year 2022 Third Quarter Earnings Results by LG Display. This conference will start with a presentation followed by a divisional Q&A session. [Operator Instructions].

Now we shall commence the presentation on the fiscal year 2022 third quarter and results by LG Display.

Brian Heo

[Foreign Language] [Interpreted] Good morning, this is Brian Heo, in charge of LG Display's IR. On behalf of the company, let me thank all the participants at this conference call. Today, I'm joined by the CFO, Sunghyun Kim; Hee Yeon Kim, Senior Vice President of Corporate Strategy Group; Seung Min Lim, Vice President of Corporate Planning; Jeong Lee [ph], in charge of Business Intelligence; Daniel Lee, in charge of Large Display Marketing; Seong Gon Kim, in charge of Medium Display Marketing, and Ki Hwan Son, Vice President of Auto Marketing.

[Foreign Language] [Interpreted] The conference call will be conducted in both Korean and English. Please refer to the provisional earnings release today or the IR Events section in the company's website for more details on the financial results of Q3 2022.

[Foreign Language] [Interpreted] Before we begin the presentation, please take a moment to read the disclaimer. [Foreign Language] [Interpreted] Please note that today's results are based on consolidated IFRS standards prepared for your benefit and have not yet been audited by an outside auditor.

[Foreign Language] [Interpreted] Let me start off with our business performance in Q3. With worsening macro economy in Q3, panel demand fell more sharply than expected, with sluggish sales by set makers, large inventory reduction, and stronger standards for inventory operations. In Europe, the biggest market for OLED TV, consumer confidence contracted rapidly following the Russia-Ukraine war and energy crisis, pulling down actual set sales to the negative territory. Demand reduction has been most pronounced where the company is strongest in high-end TV and IT and our business performance in Q3 underperformed our guidance.