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  • Q1 09 Earnings ResultsApril 16, 2009

  • 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.

    This presentation also includes information regarding our historical financial performance through March 31, 2009, and our expectations regarding future performance which is available on our investor relations website at http://www.lgdisplay.com under the file name Q1 2009 Earnings Results Presentation.

  • Q1 09 Earnings Results

    3

  • Revenues & Profit

    Revenues Profit(Unit : KRW B) (Unit : KRW B, %)

    OperatingIncome

    Q4 08 QoQ

    EBITDA*

    Net Income

    YoY Q1 08Q1 09

    -288 N/A N/A 881-412

    250 -42% -91% 1,566144

    -684 N/A N/A 717-255

    5,000

    4,000

    3,000

    1,000

    12% 9%

    2,0004,1564,156 3,6663,666 4,0364,036

    -7% 22%-11%

    6% 39%4%

    Income before tax -844 N/A N/A 915-372

    Q4 08 Q1 09 Q1 08

    KGAAP (Consolidated)

    * EBITDA = Operating Income + Depreciation + Amortization

    Source : Company financials4

  • Balance Sheets & Financial Ratios

    Balance Sheets Financial Ratios(Unit : KRW B) (Unit : %)

    5

    74%87%

    110%

    130%147%

    219%

    5%5%

    12%

    Liabilities toEquity Ratio

    Current Ratio

    Net Debt toEquity Ratio

    Q1 08 Q1 09Q4 08Q4 08 Q1 09

    Assets 15,238 17,388

    7,018

    Cash* 2,988 3,423 3,566

    Debt 4,014 3,887 4,016

    Net Debt 1,026 464 450

    Inventory 1,031 1,137 1,193

    10,370

    8,100

    4,786

    3,314

    9,288

    18,562

    Current Assets 7,285 7,718

    Non-Current Assets 7,953 10,844

    Liabilities 6,480 9,712

    Current Liabilities 3,321 5,915

    Non-Current Liabilities

    3,159 3,797

    Shareholders Equity 8,758 8,850

    Q1 08

    KGAAP (Consolidated)* Cash includes short term financial instruments.

    Source : Company financials

  • Cash Flow

    Net Cash Flow *

    3,566

    143

    10

    0

    10

    (1,009)

    412

    429

    556

    (255)

    1,142

    3,423

    Q1 09

    Cash at the end of the Quarter

    Net Change in Cash

    Other Financing Activities

    Dividend

    Cash Flow from Financing Activities

    Cash Flow from Investing Activities

    Others

    Change in Working Capital

    Depreciation & Amortization

    Net Income

    Cash Flow from Operating Activities

    Cash at the beginning of the Quarter

    Cash Flow(Unit : KRW B)(Unit : KRW B)

    Cash In Cash Out Net

    Depreciation

    Change in Working

    Capital

    Others

    CAPEX & CapitalInvestment

    *

    556

    412

    429

    133

    1,009

    Net Income255

    * Excludes cash flow from financing activities KGAAP (Consolidated)

    Source : Company financials6

  • Performance Highlights

    7

  • 83,188 3,275

    3,6743,859 3,754

    $1,339$1,274

    $992

    $766

    $669

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09$0

    $500

    $1,000

    $1,500Total K m * ASP/m ** (USD)

    Display area shipment in K m2

    ASP per m2 (USD)

    Shipments and ASP

    * Net display area shipped** Quarterly average selling price per square meter of net display area shipped

    Source: Company financials

  • 9Revenue: Product Mix

    Source: Company financials (USD Base)

    NBPC

    MNT

    TV

    APPL

    50%

    100%

    0

    43%51% 57% 56%

    26%22%

    20% 23%

    22% 18% 16%

    5% 5% 5% 5%

    26%

    Q3 08Q2 08 Q4 08 Q1 09

  • 10

    Capacity

    Source: Company financials

    Quarterly input capacity by Area (K m )

    P1-P3

    P4

    P5

    P6

    P7

    4,7275,092

    5,4745,667 5,561

    P8

    426 425 436 442 422

    490 517 546 561 517

    639 653 694 724 667

    1,430 1,4581,560 1,634 1,508

    1,7422,039

    2,238 2,306 2,210

    237

    0

    1000

    2000

    3000

    4000

    5000

    6000

    Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q1 '09

  • Outlook

    11

  • 12

    Outlook

    Total Shipment in m2 (QoQ) Mid to high twenties (%)

    ASP Gradual increase expected

    COGS per m2 (USD) Mid single digit (%)

    CAPEX Approximately KRW 2.5 trillion

    Q2 09

    2009

  • Questions and Answers

    13

  • Appendix

    14

  • K GAAP Income Statement

    15

    Source: Unaudited, Company financials K GAAP (Consolidated)

    KRW bn Q1 09 Q4 08 Q1 08 QoQ Change YoY Change

    Revenues 3,666 4,156 4,036 -12% -9%

    COGS 3,827 4,188 2,973 -9% 29%

    Gross Profit -161 -32 1,063 N/A N/A

    Operating Income -412 -288 881 N/A N/A

    EBITDA 144 250 1,566 -42% -91%

    Income before Tax -372 -844 915 N/A N/A

    Net Income -255 -684 717 N/A N/A

    Margin (%)

    Gross Margin -4 -1 26 -3 -30

    Operating Margin -11 -7 22 -4 -33

    EBITDA Margin 4 6 39 -2 -35

    Net Margin -7 -16 18 9 -25

  • K GAAP Balance Sheet

    * Cash includes short term financial instruments KRW 1,880B in Q1 09, KRW 2,055B in Q4 08 and KRW 1,980B in Q1 08 respectively.

    K GAAP (Consolidated)

    16

    KRW bn Q1 09 Q4 08 Q1 08 QoQ Change YoY Change

    Assets 18,562 17,388 15,238 7% 22%

    Cash* 3,566 3,423 2,988 4% 19%

    Inventory 1,193 1,137 1,031 5% 16%

    Liabilities 9,712 8,100 6,480 20% 50%

    Short term debt 1,550 1,154 976 34% 59%

    Long term debt 2,466 2,733 3,038 -10% -19%

    Shareholders Equity 8,850 9,288 8,758 -5% 1%

    Net Debt to Equity Ratio (%) 5 5 12 0 -7

    Source: Unaudited, Company financials

  • K GAAP Cash Flow

    * Working capital consists of net change in AR, inventory and AP.- Working capital includes F/X effect.

    ** Cash flow from investing activities excludes increase (decrease) of short term financial instruments KRW -175B in Q1 09, KRW -945B in Q4 08 and KRW 1,195B in Q1 08 respectively.

    K GAAP (Consolidated)

    17

    KRW bn Q1 09 Q4 08 Q1 08 QoQ Change YoY Change

    Net Income -255 -684 717 429 -972

    Depreciation & Amortization 556 538 685 18 -129

    Other Financing Activities 10 -359 532 369 -522

    Dividend 0 0 -268 0 268

    Others 412 330 83 82 329

    Working Capital* 429 992 -412 -563 841

    Cash Flow from Operating Activities 1,142 1,176 1,073 -34 69

    Cash Flow from Investing Activities** -1,009 -1,179 -330 170 -679

    Cash Flow before Financing Activities 133 -3 743 136 -610

    Net Change in Cash 143 -362 1,007 505 -864

    Source: Unaudited, Company financials

  • 18

    EBITDA Reconciliation

    Source: Unaudited, Company financials

    We are adding depreciation and amortization 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 determined in accordance with GAAP. Our calculation of EBITDA may not be comparable to similarly titled measures reported by other companies.

    K GAAP (Consolidated)

    KRW bn Q1 09 Q4 08 Q1 08 QoQ Change YoY Change

    1. Operating Income -412 -288 881 -124 -1,293

    2. Depreciation of PP&E 546 527 671 19 -125

    3. Amortization of Intangible Assets 10 11 14 -1 -4

    EBITDA (1+2+3) 144 250 1,566 -106 -1,4

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