The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Dongwon Kim - KB Securities Co., Ltd., Research Division - Analyst
: [Interpreted] My first question is about Home Entertainment business. Can you share your short-term OLED TV sales objectives in this year and
next year? And further elaborate how the OLED market will grow, and what your sales target volume and market share will be?
My second question regard Vehicle Component Solution. Considering the recent slowdown of EV market growth, are you making any change in
the previously shared prospect of reaching KRW 100 trillion by the end of this year in terms of backorder? And can you share with us the current
figures on your backorder -- backlog and break them down by business?
Question: Kangho Park - Daishin Securities Co. Ltd., Research Division - Analyst
: [Interpreted] I have 2 questions. And my first question is on H&A business. The macro uncertainty is expected to continue in next year as well. This
will lead to less consumption and our customers may find more affordable products. This may be very favorable for Chinese market entering into
the market. I would like to ask for your strategy to respond such circumstances. And if such circumstances continues, do you think you can continue
acquiring high single-digit profitability? My second question is on Home Entertainment business. When do you expect TV demand to show a
recovery? And how much recovery do you expect in 2024?
Question: Hyung Wou Park - SK Securities Co., Ltd., Research Division - Analyst
: [Interpreted] I have 2 questions. And my first question is about H&A business. Did you see any meaningful enhancement in your cost structures
such as logistic cost cuts in the third quarter? Also, it would be very appreciated if you can share your projections on the possibilities of additional
cost cuts of the fourth quarter and the coming year.
My second question regards Vehicle Component business. United Auto Workers is on strike against GM, Ford, and other U.S. automakers, and it
seems like it may last a long time. According to the earnings release of other secondary battery makers, the strike is focused -- mainly focused and
concentrated on factories producing internal combustion engine. Does that mean that it would impact LG's business? Are you seeing an impact
on your auto part business specifically? If so, what is your plan to overcome this hurdle?
Question: Rok-ho Kim - Hana Financial Investment Co., Ltd., Research Division - Analyst
: [Interpreted] I have 2 questions. My first regards corporate-wide operations. What is your outlook for business in 2024? It seems like the business
environment for the next year is going to be very difficult for LGE. Will sales grow, and what is your estimate for operating profit? My second question
regards Business Solutions. Companies are getting very reluctant to invest in infrastructure. And this may lead to a lot of difficulties for Information
Display business. How would demand for Information Display unfold? And what is your short-term and mid to long-term strategy?
Unidentified Company Representative
[Interpreted] Let me answer your first question regarding corporate-wide operation. Uncertainties in the business environment are likely to be
sustained into 2024. Economic slowdown and geopolitical risk in major markets persist, while a delay in demand recovery is working against our
favor as it pushes up competition and marketing expenditure. However, at the same time, increasing demand for HVAC products and the expansion
of EV component market will give a boost to our business.
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OCTOBER 27, 2023 / 7:00AM, 066570.KS - Q3 2023 LG Electronics Inc Earnings Call
To respond to the circumstance in line with the growing polarization in consumption behavior, we will vigorously pursue results in premium and
volume zone appliance segment, where demand tends to be stronger. We will work on recovering sales of TV business by strengthening OLED TV
sales based on enhanced product lineup and expanding platform business. Sales of EV components and EV-based high value-added products will
be expanded to drive sales in 2024.
In terms of profitability, stable profitability will be secured by enhancing operation, cost efficiency and cost structure, as we preemptively respond
to changes in oil and logistics price and other factors that may push up cost and expenses. We'll continue to improve business structure to offset
the high in the first half, low in the back-end pattern by further growing B2B, non-hardware business, and online sales while improving regional
portfolio.
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