LG Display Co., Ltd.

Hello, I am the team leader of LG DISPLAY IR team, Heo Seok. I would like to thank everyone who attended the conference call of the 2nd quarter of 2025. Today's conference call includes Vice President Kim Sung-hyun of CFO, Manager Cho Seung-hyun of Management Management, Manager Kim Kyu-dong of Finance, Team Leader Heo Woo-seok of Business Intelligence, Team Leader Kim Jong-deok of Big Project Management, Team Leader Ahn Yoo-shin of Middle Project Management, CEO Baek Seung-yong of Soyoung Project Management, CEO Hwang Moon-tae of Oto Project Management.

Good afternoon. I am Brian Hall, leader of the IR team at LG Display. Thank you for attending LG Display's 2025 Second Quarter Earnings Conference Call. Joining us today are CFO Mr. Sung Hyun Kim, VP of Business Management Mr. Seung Hyun Joo, VP of Finance, Mr. Kyu-dong Kim, Leader of the Business Intelligence Team, Mr. Woo-seok Hall, VP of Large Display Planning and Management, Mr. Jong-dok Kim, Head of Medium Display Planning and Management, Mr. Yu-shin Ahn, Head of Small Display Planning and Management, Mr. Seung-yong Paek, and Head of Auto Planning and Management Department, Mr. Moon Tae-hwang.

On Friday, the conference call will be held in the form of a Q&A. For details on the results, Today's conference call will be conducted in Korean and English.

Please refer to the disclosed preliminary earnings release or the investor relations section of our website for detailed performance data.

Please read the disclaimer before the earnings presentation. Today's earnings presentation is based on consolidated financial figures prepared in accordance with International Financial Reporting Standards, IFRS.

Please note that the numbers are unaudited

and are provided for the convenience of our investors. Let me begin by presenting our business performance for Q2 of 2025.

In Q2, shipments of products decreased due to the seasonal off-peak period for smartphones and the termination of the LCD TV business. In addition, the Korean won U.S. dollar exchange rate turned stronger, and as a result, sales declined by 8% QOQ to 5,587,000,000,000 Korean won. This represents a 17% decline YOY, which is due to the base effect of increased initial shipments following the new mass production of tablet OLED panels last year and the discontinuation of the LCD TV business in Q2 of this year.

Operating profit also posted a loss of 116 billion KRW, reflecting both the negative impact of the stronger KRW exchange rate and business factors such as the end of the LCD TV business and seasonally weak demand for mobile panels.

For the first half of the year, cumulative sales amounted to $11 trillion and $652.3 billion, and operating loss to $82.6 billion. Despite the 3% decline in sales YOY, operating loss improved by $480.5 billion. This improvement was the result of ongoing efforts to upgrade our business structure to the OLED-centered business reduce cost, and enhance operational efficiency, which are now producing tangible results for the improvement of the company's fundamentals.

Net income turned positive to 890.8 billion won,

driven by improved FX gains and other non-operating income, including the gain on the sale of our stake in the Guangzhou LCD plant.

EBITDA 4Q2 stood at 1 trillion and 53.9 billion won, which is

with an EBITDA margin of approximately 19%, maintaining a mid-teen margin for the 7th consecutive quarter.

Next, let's look at the fallout area and the rate of evaluation per area. The fallout area in the second quarter decreased by 26% compared to the previous quarter due to the end of the LCD TV business. This is a level that corresponds to the decrease in the fallout area by 20% before and after the guidance.

Next are the trends of shipment area and ASP per square meter. Q2 shipment area decreased by 26% QOQ due to the termination of the LCD TV business. This aligns with our guidance of around mid-20% decrease in shipment area.

In the case of the interviewer's evaluation, the interviewer's evaluation is the lowest among the entrepreneurs, As for the ASP per square meter, the figure increased by 32% to $1,056.

This was due to the exit of the LCD TV business, which had the lowest ASP per area, and changes in shipment within some small to medium panel products compared to the original plan. With a transition to an OLED-focused business structure, we expect to sustain significantly higher ASP levels compared to the past.

Moving on to revenue breakdown by product category. Moving on to revenue breakdown by product category. 상당 부분 상세한 결과입니다.

TV revenue accounted for 20% of total sales, down 2 percentage points QOQ. However, the decline was limited as OLED TV panel shipments increased QOQ, offsetting much of the impact from the LCD TV business exit.

Mobile 및 기타 부문의 매출 비중의 경우, 계절적 비수기 패널 출하가 감소하며, and recorded 28% drop of 6% for the previous quarter.

Revenue from mobile and others declined by 6% points QQ to 28% due to seasonally weak panel shipments.

In the case of IT, in addition to the increase in the drop in the LCD IT product group compared to the previous quarter, due to the decrease in the proportion of other product groups,

The IT segment recorded 42%, reflecting a relatively notable increase driven by higher LCD IT panel shipments compared to last quarter and a reduced share of other product categories. The automotive segment grew 1% point QOQ to 10%.

The OLED portion of total revenue increased by 1% point QOQ and 3% point YOY, reaching 56%, continuing its steady growth. Let's now look at our financial status and key indicators.

Cash and cash equivalents at the end of Q2 amounted to 1 trillion and 666 billion KRW. With the sale of the Guangzhou plant and the end of the LCD TV business, essential operating capital has decreased compared to the past, and our cash level has been managed accordingly to improve efficiency.

The budget ratio is 268%, and the orderly income ratio is 155%, each 40% per year.

The debt ratio stood at 268%, and net debt-to-equity ratio at 155%, representing significant decreases of 40 percentage points and 19 percentage points, QOQ, respectively.

Next is the 3rd quarter guidance. In the 3rd quarter, mixed changes in the medium-sized product groups Let me now provide guidance for Q3.

For the third quarter, shipment area is expected to decline by a low-to-mid single-digit percentage due to product mix changes in mid-to-large panel products and a reduction in the share of low-margin medium panel products. On the other hand, ASP per area is forecast to increase to mid-20% levels driven by seasonal increase of shipments in small- and medium-sized OLED products.

Next, I'd like to hear from the CEO, Mr. Kim.

Now we will hear from our CFO, Mr. Sung Hyun Kim. Good afternoon.

This is Sung Hyun Kim, the CFO. Thank you all for joining today's conference call. Following the Q2 results and our outlook for the second half, I would like to further elaborate on our financial performance.

As the second quarter is a traditional quarter, the decrease in the operating rate of the mobile panel production line and the change in the exchange rate have affected the performance, but as I mentioned earlier, the share of Oled products in sales is continuously expanding, The sale price per unit area was also significantly increased, which was effective in terms of business structure.

Q2 is traditionally an off-season, and our performance was affected by lower utilization rates of mobile panel production lines and FX volatility. However, as has been previously mentioned, the OLED portion of our total sales continued to grow, and ASP per square meter increased significantly, marking structural achievements in our business model.

The approximately 500 billion won improvement in operating results for the first half compared to last year

was driven by an upgraded business structure centered on OLED and high-end LCD products, continuous cost-innovation, and operational efficiency. We expect this performance improvement to continue in the second half.

Although the economy will continue to falter and the general environment will change, we will continue to work to strengthen the fundamental competitiveness

Despite ongoing macroeconomic uncertainties and the volatility in the trade environment, we remain firmly committed to our strategic initiatives, business restructuring around OLED, technological differentiation, product quality enhancement, and cost innovation, which will strengthen our core competitiveness and translate into performance outcomes. In particular, we expect a steep rebound in performance in the second half with broader profit improvements compared to the first half, driven by performance expansion across both large and small and medium OLED panel businesses.

In addition to the business performance, there is also a speedy improvement in the financial structure, such as initial damage to the loan amount and reduction of interest rates. In the past year, we achieved a total interest rate goal of 13 trillion won, which was proposed in the company's value-added stock plan at the end of the year, and Gwangju LCD TV Factory

In addition to the business performance, our efforts to improve the financial structure such as early loan repayments and debt reductions are progressing ahead of plan. We already achieved our total debt reduction target of 13 trillion won level early as set out in our corporate value up plan at the end of last year. We will continue to improve financial structure through cash flow enhancement with various actions such as the sale of the Gwangju LCD TV Plant and the expansion of second half operating profits while further reducing debt by the year end.

Next, I would like to talk about business planning and strategy. In the case of small mobile businesses, we will continue to improve Let me now walk you through the plans and strategies for each business segment.

In the small panel mobile segment, our panel shipments are growing each year backed by our enhanced production capabilities with strong performance, particularly in the high-end segment. Going forward, we will continue to strengthen our competitive edge in quality and cost based on differentiated technology to further drive business performance.

In the case of IT OLEDs among medium-sized businesses, we will respond to the new high-end market demand, focusing on Tandem OLEDs, which have discriminatory values such as low-power, long-life, and high-intensity, We are also planning to prepare the world-wide supply of OLEDs that will be spread throughout IT devices in the future. We will continue to actively respond to the changing environment by warning the leadership of the company and the stable production competitiveness in the market.

In the medium-panel IT OLED segment, we will address new high-end market demand with tandem OLEDs known for its low power consumption, long lifespan, and high illuminance. We'll also plan to systematically prepare for a broader transition to OLED across IT devices. With our accumulated technological leadership and stable mass production capabilities, we will continue to strengthen our market leadership and respond proactively to a changing environment.

In the IT LCD segment, we plan to strengthen partnerships with global top-tier market-leading customers in the B2B

and high-end sectors based on differentiated high-end LCD technologies. Particularly, we will continue improving profitability by reducing the proportion of low-margin products and engaging in structural cost innovation.

In the case of large-scale businesses, the LCD TV business has been terminated, but OLED TV is recognized for its high competitiveness in the market, we expect business performance to continue to expand. Also, the growth of the gaming monitor market is continuing, so we expect the medium-term market to be positive. With a variety of OLED panel lineups with differentiated values, we will strengthen the revenue structure through original price improvement efforts and a resilient and efficient operating strategy to strengthen the premium market dominance and at the same time strengthen the revenue structure.

In the large panel segment, although the LCD TV business has ended, OLED TV is widely recognized for its competitive differentiation, which we expect will continue to drive business performance. With the gaming monitor market also expanding, the mid- to long-term outlook is positive. We will solidify our leadership in the premium market with a diverse OLED panel lineup with differentiated values, and at the same time, strengthen our profit structure through cost improvements and flexible, efficient operation strategies.

Next is the auto business sector. The increase in the occupancy rate of the display in the car and the acceleration of the face-to-faceization are positive for the future market. There will be competition between companies, but the company will continue to develop a high-quality, Lastly, in the automotive segment, increasing adoption and larger sizes of in-vehicle displays are positive indicators for future market growth.

While competition is expected, we will deliver differentiated customer value through our solid market position innovative technologies, and product competitiveness, including ultra-large size, high resolution, reliability, durability, low power, and diverse form factors.

Finally, I would like to talk about investment activities. The company is maintaining the CAPEX ZIPPEN structure at the investment center for future preparation and business structure enhancement. Finally, I would like to speak on our investment activities.

We are maintaining our CAPEX strategy centered on future readiness and business structure enhancement. In June, we announced an investment for new OLED technology preparation but we continue our efforts to improve investment efficiency. As such, our CapEx for this year is expected to be in the low 2 trillion won range, similar to last year.

In the future, investments will be decided carefully using the existing infrastructure as much as possible, and new investments will be implemented with the highest priority.

Going forward, we will maximize the use of our existing infrastructure and make careful investment decisions. New investments will be executed with profitability as the top priority.

Thank you very much.

So that concludes the presentation of LG Display's Q2 2025 earnings results. Now move on to the Q&A session.

Operator, please provide instructions for Q&A.

Now Q&A session will begin. Please press star 1, that is star and 1, if you have any questions. Questions will be taken according to the order you have pressed the number star 1. For cancellation please press star 2, that is star and 2 on your phone. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant. The first question will be provided by Dongwon Kim from KB Securities. Please go ahead with your question.

Yes, thank you for the question. I have two questions related to OLED and performance. Regarding the OLED new technology investment announced in June, what is the specific content of the OLED new technology you are currently preparing, My name is Kim Dongwon from KB Securities.

Thank you very much for giving me this opportunity to ask my question. My question has to do with OLED as well as your future business performance. So in last June, you have disclosed new OLED technology-related investment. And so what is the specific content and the application scope of the OLED new technology that the company is currently working on? That is my first question. My second question has to do with the fact that tariff-related uncertainties are growing, and also there's continuing exchange rate-related volatilities. In this situation, to what extent do you expect performance to improve in the second half?

Thank you. I will tell you about CFO. What we have been continuously talking about is that we will focus on LCD and OLED.

I'm the CFO. Let me take your question.

What we have continuously communicated to the market was that we will be shifting away from LCD business and will be increasingly focused on the OLED business.

And as part of that plan, in the first half of this year, we have sold our stake in China's TV LCD plant.

After that, we have settled the ACD issue. Now, we need to find out how to strengthen OLED.

And so that is how we have dealt with the LCD business. And now the answer has to come forward of how we will strengthen our OLED business.

As you all know, the reason why we withdrew from the LCD business is because we no longer have the advantage in terms of technical competitiveness. As you are probably well aware, the reason we have withdrawn from the LCD business is because we have determined that we no longer have competitive advantage when it comes to the LCD technology.

The reason why we are shifting toward a more advanced and OLED-centered business structure is because we have concluded that our ability to secure future technology is as of yet still superior to our peers.

So, in order to secure OLED technology in June, we will continue to work with competitors

And so our investment that was disclosed in June this year to secure new OLED technology was part of our strategic direction to maintain this technological gap with our competitors.

And we have announced back in June that the total investment amount will come to 1 trillion and 260 billion won.

and this investment will be executed over the next two years till the first half of 2027. Because our financial structure has been very significantly improved, and because our performance will continue to improve going forward, we do not believe that this amount is burdensome.

Yes, well, I told you about the meaning of investment, and you asked me what kind of technology we will focus on. I have just explained the significance of this investment and I think your question pertained to which area this investment will go into and what kind of new technologies will be developed

I would like to disclose that information. However, due to confidentiality reasons as well as other limitations, I'm not in a position to share that information.

So please, we ask for your understanding in that regard. You asked us how much we can expect from this year's end of the year. As you all know, the result of our effort to achieve the business plan for a year is the end of the year.

The second question has to do with the extent of the performance improvement that can be expected till the year end of this year. And my answer is that I'm sure you're well aware that in the beginning of the year, we establish our business plans and throughout the year, we make efforts to achieve that business plan. That becomes our annual business results.

First of all, let me talk about the performance up until the first half of the year.

At the beginning of this year, we have announced our commitment to turning around into the profit for the full year of 2025.

We are following the business plan that we mentioned earlier to achieve the plan that you mentioned earlier. If we evaluate the business plan until the first half of the year, we will achieve better results than we expected.

So, in order to keep our promise to you about this plan, we have established our company business plan and we have made efforts to achieve the targets that were set out in the business plan. If we make an assessment about our performance until the first half of the year, well, it is actually exceeding our initial expectations.

Our intention is to continue this trend to the second half of the year, and up until now, this trend is being well maintained.

I have already noted that compared to last year, we have been able to post a performance improvement of 500 billion won in the first half of this year. And in the second half as well, proportional to all the revenues that we will be achieving, I think a level similar to that can be expected by the year-end. We will make an all-out effort in order to ensure that a strong performance is delivered.

The following question will be presented by Sung Kim from Kiwoom Securities. Please go ahead with your question.

Hello, I am Kim So Won from Kiwoom Securities. Thank you for your question. I would like to ask two questions related to medium-sized OLEDs. The first question is about mobile OLEDs. On the other hand, there is news that domestic companies are in charge of mass production of new models for the second half of OGEX, and there is also news that Chinese competitors are producing them. What is the future of the smartphone business in the second half of the year, and can the number of mobile panel outputs grow this year compared to last year? Second, I am also curious about the future of the tablet-based OLED panel output this year. Is there a change in market demand, and is there a change in the stock price this year compared to last year?

This is Kim Soyeon from QM Securities. Thank you very much for this opportunity to ask my question. There is news that the initial batch for panels for customers' new smartphone models in the second half will be produced by a Korean company, while others say that a Chinese company will be handling the production. So what is the second half outlook for the smartphone business? and every year the mobile panel shipment is increasing. Can we expect further growth opportunities this year as well? That is my first question. My second question is, what is the shipment forecast for the OLED panels for tablets in 2025? Are there any changes in market demand, and has the shipment target changed compared to last year?

My name is Seung Ryong Baek, and I am the CEO of Soyoung Project. Smartphone business is a company's technology production operation, This is Seungyong Baek.

I'm the head of the small display planning and management. Let me take your question. The smartphone business continues to show expanded performance as our capabilities across technology, production, and operations are further strengthened. Although the volatility in the external environment, such as U.S. tariff issues, continues, we are stably managing operations without major deviations from our initial plans and business targets.

Despite the seasonal decline in the first half of the year, there was significant growth in volume by more than 20% compared to the previous year. Despite the seasonal off-peak in the first half, we have achieved a meaningful shipment growth of more than 20% YOY.

We are also planning to increase volumes as entered on new models in the second half and thus expect to outperform last year's full-year performance. It would not be appropriate for us to directly comment on the capabilities or business status of other suppliers, but for ourselves, we will continue to strengthen our quality competitiveness, steadily reduce costs, and prepare for future technologies so that we can respond to the competitive landscape and maintain stable business results.

With regards to the tablet OLED panels, due to the sluggish global IT market, last year's shipment of tablet OLED panels fell short of both our internal targets and market expectations.

While the current macro environment is somewhat unfavorable to high-end product sales, tablet OLEDs offer distinct advantages such as low power consumption, longer lifespan, and high brightness, which are expected to continue attracting market attention and consumer demand.

So accordingly, our panel shipments are expected to increase YOY and utilization rate is also expected to rise compared to last year.

We would like to ask for your understanding that specific targets for PanaSupply buy model and expected market share involve confidential customer information and thus cannot be disclosed.

We will continue to maintain the first vendor of the market, and we will continue to actively respond to product discrimination and market demand based on long-term technology leadership and competitiveness.

However, we have secured differentiated technological competitiveness in the tandem OLED space and will continue to maintain our position as the first vendor in the market. We're going to continue pursuing product differentiation that is based on our longstanding technological leadership and competitiveness and actively respond to market demand. We will receive the next question.

The following question will be presented by Min-kyu Kwon from SK Securities. Please go ahead with your question.

Yes, thank you for the opportunity to ask a question. I would like to ask two questions about IT demand and LCD in the middle and LCD side. First, it seems that macro uncertainty such as tariffs on IT demand is still ongoing. Thank you very much for giving me this opportunity to ask my questions.

My questions are twofold. Given that macro-level uncertainties such as tariffs still persist, are there any new developments regarding a recovery in IT demand? My second question is, if the current situation becomes protracted, what is LG Display's operational plan and strategic direction for the medium-panel LCD business, and how does the company plan to manage profitability? Thank you.

I'm Ahn Joon-shin, Director of the Chungyeong Technology Institute. Chungyeong Technology Institute Good afternoon. This is Yuxin Ahn, head of the medium display planning and management.

Let me take your question. So the demand for medium-sized panel products are expected to grow slightly this year with both a second panel demand projected to increase in the low to middle single digits. While the end of negative growth is a positive sign, we do believe that demand volatility remains high due to the continued uncertainty in the external environment.

There is a difference in demand and sales for each product group and customer, but the company is operating its business in the B2B and high-end areas in the LCD area, We plan to strengthen our partnership with global top customers. At the same time, we will closely monitor the demand growth and conversion rate of OLED products and prepare for future preparations systematically.

Demand and sales conditions vary by product category as well as by customer. But in the LCD segment, we are focusing our business operations on B2B and high-end areas, strengthening partnerships with top-tier global customers. At the same time, we are closely monitoring the growth and transition pace of OLED demand across each product category and systematically preparing for the future.

I see that the opportunity factor such as replacement demand and AIPC is still significant, and we will actively respond to market opportunities in each product area based on the technology of the parties with discriminatory strengths.

We believe replacement demand and opportunities such as AIPCs are still valid, and we will actively respond to market opportunities in each product area based on our differentiated technological strength.

In terms of profitability, we expect the profitability to improve gradually based on last year's low. As I mentioned earlier, there is no significant change in demand, In the LCD area, we plan to operate the business with the focus on product line-up optimization and global commercial customers through the reduction of low-income products, and the medium OLED area is expected to improve profitability to a meaningful level this year through the expansion of the panel compared to the previous year based on the discriminatory competitiveness of OLED.

Regarding profitability, we expect the profitability of our medium panel business to improve gradually with last year marking the bottom. As has been mentioned, although there have not been any significant changes on the demand side, we are rationalizing our product lineup in the LCD area by reducing the proportion of low-margin products and focusing on top-tier global customers. In the medium panel OLED segment, we anticipate improving profitability to a meaningful level this year by increasing panel shipments compared to last year and leveraging OLED's differentiated competitiveness.

Recently, the profitability of the IT industry has worsened compared to the past, but we strongly promote cost-efficiency activity, and expand the performance in the B2B and high-end product areas based on the different competitiveness of Tandem OLED, which has high-end LCD technology such as IPS and Oxide, and high-level control and longevity strengths.

Although recently the profitability of the IT business has weakened compared to the past, we are intensifying our cost innovation efforts and leveraging our differentiated competitiveness in the high-end LCD technologies like IPS and oxide, as well as in the tandem OLED, which offers advantages in high luminance, low power consumption, and long lifespan to expand our performance in B2B and high-end product areas and thereby improve profitability. We will receive one final question.

The last question will be presented by Jimmy Yoon from UBS.

Please go ahead with your question. I would like to ask a question related to the large OLED business. How do you see this year's large OLED panel sales prospects? And please share if there were any changes in the beginning of the year. How do you see the profitability status and prospects? And in particular, I think there is a concern about the price pressure due to the issue of tariffs, but I would appreciate it if you could tell me if there are any changes in the price strategy. And finally, about the opportunity factors for OLED monitors, Thank you.

My name is Jimmy Yoon from USD. Thank you for this opportunity to ask my questions. I have two questions. The first question has to do with the full year outlook for sales of the large OLED panel in 2025. Has there been any changes to the beginning of the year business plan that you have established. And my second question has to do with the OLED monitors. I think you have briefly mentioned this area in your presentation, but what are the opportunity factors for OLED monitor and what is the current and the future contribution levels of OLED monitors?

Thank you. First of all, including the OLED monitor, I would like to talk about the large OLED sales perspective. Despite the large environmental variability due to the U.S. tariffs issue and macro situation, the current large OLED panel sale and sale situation is going on without much change according to our original plan. Good afternoon.

This is Jong-Dok Kim, the VP of Large Display Planning and Management. Let me take your question. With regards to the sales outlook for our large OLED panels and monitors, Despite volatile external environment, including the U.S. tariff issue and other macroeconomic factors, our large-size OLED panel shipments are proceeding according to the original plan without much deviation, and annual shipments are expected to reach the mid-$6 million range and increase over the previous year.

In terms of price, OLED is recognized in the market for its differentiated value compared to LCD, and the price acceptance part is currently in the range that can be accepted in the market, and we are judging it at the level that is being operated. Therefore, OLED TV and monitor, not only panel output, but also set sales, in both aspects, It is expanding. Recently, in addition to TV panels, we are increasing the number of monitor OLED products, focusing on gaming products, and we expect that the proportion of monitors will increase by 10% out of all large OLED panels issued this year.

And in relation to price, compared to LCD, the differentiated value of OLED panels is being recognized in the market. And in terms of price acceptability, the prices are approaching an acceptable level, increasing their overall appeal. And so as a result, both OLED TVs and monitors are seeing continuous growth, not only in panel shipments, but also in set sales as well. Recently, in addition to TV panels, the share of OLED monitor products, especially gaming monitors, has significantly increased. We expect the proportion of monitor products within our total large OLED panel shipments this year to exceed 10%.

Next, I would like to talk about profitability. The market is still repetitive, The most important thing is that we are focusing on building a raw material structure that can provide stable revenue structure regardless of external environmental changes. Therefore, the large-scale business is focusing on changing the business structure and responding to competitive situations, and we are making more efforts to promote raw material innovation to strengthen profitability.

Now regarding profitability, although this has been said time and again, let me repeat this once again, that we believe the most important factor is to establish a cost structure and internal operations that can ensure stable profitability despite any changes in the external environment. So accordingly, we are shifting the structure of our large panel business to focus on OLED in response to competition and are making significant efforts toward cost innovation to enhance profitability.

In order to improve the profitability of the business in the future, we believe that the competitive strength of the OLED product, the multi-change of product parts, and other high-intensity price innovation activities are making progress in terms of profitability improvement. It is difficult to mention the profitability of individual businesses in person, but in the future, large-scale OLED businesses To improve the profitability of the large-panel business going forward, we're not only strengthening the competitiveness of the OLED products, but we're diversifying our OLED product lineup.

and also carrying out aggressive cost innovation and operational efficiency-wise efforts. As a result, we are now seeing tangible results in terms of profitability improvement, QOQ. While it is difficult to comment on the profitability of the individual business segments, we expect that our large panel OLED business

will continue to deliver stable performance in both growth and profitability by leveraging strong partnerships with global top-tier customers.

With this, we'd like to conclude the 2025 Second Quarter LG Displays earnings presentation. Thank you very much for your attendance, and if you have any additional questions, please contact our IR team. Thank you.