LPL » Topics » Sales

This excerpt taken from the LPL 20-F filed Jun 23, 2009.

Sales

Our sales increased by 35.1% from (Won)10,624.2 billion in 2006 to (Won)14,352.0 billion in 2007. Increases in unit sales of our large-size panels for televisions, notebook computers and desktop monitors were the primary contributing factors to this increase, offset by a decrease in the average selling price of our panels. In particular:

 

   

unit sales of 42-inch panels for televisions increased by 147.4% from 1.8 million panels in 2006 to 4.5 million panels in 2007;

 

   

unit sales of 32-inch panels for televisions increased by 85.6% from 3.5 million panels in 2006 to 6.5 million panels in 2007;

 

   

unit sales of 15.4-inch panels for notebook computers increased by 69.4% from 9.1 million panels in 2006 to 15.4 million panels in 2007; and

 

   

unit sales of 19-inch panels for desktop monitors increased by 76.2% from 6.2 million panels in 2006 to 11.0 million panels in 2007.

The total unit sales of panels for televisions increased by 47.2% from approximately 12.6 million in 2006 to 18.6 million in 2007. Total sales attributable to television panels increased by 38.5% from approximately (Won)4,938.9 billion in 2006 to (Won)6,841.5 billion in 2007. Growth in total sales of panels for televisions primarily reflected increased demand for larger- and wider-sized panels, which more than offset a decrease in the average selling price of our television panels in 2007.

The total unit sales of panels for notebook computers increased by 52.2% from approximately 21.1 million in 2006 to 32.1 million in 2007 and the total unit sales of panels for desktop monitors increased by 38.3% from approximately 20.1 million in 2006 to 27.8 million in 2007. Total sales attributable to panels for notebook computers increased by 42.4% from approximately (Won)2,166.9 billion in 2006 to (Won)3,084.7 billion in 2007, while total sales attributable to panels for desktop monitors increased by 27.6% from approximately (Won)2,906.9 billion in 2006 to (Won)3,708.9 billion in 2007. The increase in total sales of panels for notebook computers and desktop monitors is due primarily to increased demand for larger- and wider-sized panels, which more than offset a decrease in the average selling price of our panels for notebook computers and desktop monitors in 2007.

The effect of the overall increase in unit sales was partially offset by a decrease in the average selling price of panels for our major product categories from 2006 to 2007. The average selling price of panels for televisions decreased 5.9% from (Won)390,457 per panel in 2006 to (Won)367,501 in 2007, the average selling price of panels for notebook computers decreased 6.5% from (Won)102,752 per panel in 2006 to (Won)96,078 in 2007 and the average selling price of panels for desktop monitors decreased 7.7% from (Won)144,444 per panel to (Won)133,283 over the same period.

This excerpt taken from the LPL 6-K filed Mar 31, 2009.

5. Sales

 

  A. Sales performance

 

          (Unit: In billions of Won)

Business area

   Sales types    Items (Market)    2008    2007    2006
         Overseas    14,801    13,137    9,355

TFT-LCD

   Products, etc.    TFT-LCD    Korea*    1,064    1,026    846
         Total    15,865    14,163    10,201

 

*       Including local export.

 

  B. Sales route and sales method

 

  (1) Sales organization

 

   

As of December 31, 2008, each of the IT Business Unit, TV Business Unit, Mobile Business Unit and OLED Business Unit had individual sales and customer support functions.

 

   

Sales subsidiaries in the United Sates, Germany, Japan, Taiwan and China (Shanghai and Shenzhen) perform sales activities in overseas countries and provide local technical support to customers.

 

  (2) Sales route

 

   

LG Display Headquarters g Overseas subsidiaries (USA/Germany/Japan/Taiwan /Shenzhen/Shanghai), etc. g System integrators, Branded customers g End users

 

   

LG Display Headquarters g System integrators, Branded customers g End users

 

  (3) Sales methods and conditions

 

   

Direct sales & sales through overseas subsidiaries, etc

 

  (4) Sales strategy

 

   

To secure stable sales to major PC makers and the leading consumer electronics makers globally

 

   

To increase sales of premium notebook computer products, to strengthen sales of the large-size, high-end monitor segment and to lead the large-size LCD TV market, including with respect to full-HD 120Hz TV monitors

 

   

To diversify our market in the small- to medium-sized monitor segment, including products such as mobile phone, P-A/V, automobile navigation systems, aircraft instrumentation and medical diagnostic equipment, etc.


Table of Contents
This excerpt taken from the LPL 6-K filed Nov 12, 2008.

5. Sales

A. Sales performance

 

               (Unit: In billions of Won)

Business area

  

Sales types

  

Items (Market)

   2008
Q1~Q3
   2007
Q1~Q3
   2007

TFT-LCD

   Products, etc.    TFT-LCD    Overseas    11,321    9,119    13,137
        

Korea*

   822    729    1,026
        

Total

   12,143    9,849    14,163

 

* Including local export.

B. Sales route and sales method

(1) Sales organization

 

   

As of September 30 2008, each of the IT Business Unit, TV Business Unit, and Mobile Business Unit had individual sales and customer support functions.

 

   

Sales subsidiaries in the United States, Germany, Japan, Taiwan and China (Shanghai and Shenzhen) perform sales activities in overseas countries and provide local technical support to customers.

(2) Sales route

 

   

LG Display HQ g Overseas subsidiaries (USA/Germany/Japan/Taiwan/Shenzhen/Shanghai), etc.

g System integrators, Branded customers g End users

 

   

LG Display HQ g System integrators, Branded customers g End users

(3) Sales methods and conditions

 

   

Direct sales and sales through overseas subsidiaries, etc.

(4) Sales strategy

 

   

To secure stable sales to major PC makers and the leading consumer electronics makers globally

 

   

To increase sales of premium notebook computer products, to strengthen sales of the larger size and high-end monitor segment and to lead the large and wide LCD TV market including in the category of full-HD 120Hz TV monitors

 

   

To diversify our market in the small- to medium-sized monitor segment, including products such as mobile phone, P-A/V, automobile navigation systems, aircraft instrumentation and medical diagnostic equipment, etc.


Table of Contents
This excerpt taken from the LPL 6-K filed Aug 14, 2008.

5. Sales

A. Sales performance

 

     (Unit: In billions of Won)

Business area

   Sales types    Items (Market)   2008 H1    2007 H1    2007

TFT-LCD

   Products, etc.    TFT-LCD    Overseas   7,676    5,422    13,137
         Korea*   575    452    1,026
         Total   8,251    5,874    14,163

 

* Including local export.


Table of Contents

B. Sales route and sales method

(1) Sales organization

 

   

As of June 30, 2008, each of the IT Business Unit, TV Business Unit, Mobile Business Unit, and OLED Business Unit had individual sales and customer support functions.

 

   

Sales subsidiaries in America, Germany, Japan, Taiwan and China (Shanghai and Shenzhen) perform sales activities in overseas countries and provide technical support to customers.

(2) Sales route

 

   

LG Display HQ g Overseas subsidiaries (USA/Germany/Japan/Taiwan/Shenzhen/Shanghai), etc.

gSystem integrators, Branded customers g End users

 

   

LG Display HQ g System integrators, Branded customers g End users

(3) Sales methods and conditions

 

   

Direct sales & sales through overseas subsidiaries, etc.

(4) Sales strategy

 

   

To secure stable sales to major PC makers and the leading consumer electronics makers globally

 

   

To increase sales of premium notebook computer products, to strengthen sales of the larger size and high-end monitor segment and to lead the large and wide LCD TV market including in the category of full-HD 120Hz TV monitors

 

   

To diversify our market in the small- to medium-sized monitor segment, including products such as mobile phone, P-A/V, automobile navigation systems, aircraft instrumentation and medical diagnostic equipment, etc.

This excerpt taken from the LPL 20-F filed Apr 16, 2008.

Sales

Our sales increased by 5.4% from (Won)10,075.6 billion in 2005 to (Won)10,624.2 billion in 2006. Increases in unit sales of our large-size panels for televisions were the primary contributing factors to this increase, offset by decreases in unit sales of our large-size panels for desktop monitors and a decrease in the average selling price of our panels. In particular:

 

   

unit sales of 32.0-inch panels for televisions increased by more than two-fold from 1.4 million panels in 2005 to 3.5 million panels in 2006;

 

   

unit sales of 42.0-inch panels for televisions increased by more than nine-fold from 0.2 million panels in 2005 to 1.8 million panels in 2006;

 

   

unit sales of 37.0-inch panels for televisions increased by more than three-fold from 0.7 million panels in 2005 to 2.1 million panels in 2006;

 

   

unit sales of 17.0-inch panels for desktop monitors decreased by 37.5% from 12.8 million panels in 2005 to 8.0 million panels in 2006; and

 

   

unit sales of 15.0-inch panels for desktop monitors decreased by 39.3% from 2.8 million panels in 2005 to 1.7 million panels in 2006.

The total unit sales of panels for televisions increased by 105.1% from approximately 6.2 million in 2005 to 12.6 million in 2006. Total sales attributable to television panels increased by 76.1% from approximately (Won)2,805.0 billion in 2005 to (Won)4,938.9 billion in 2006. Growth in total sales of panels for televisions primarily reflected increased demand for larger- and wider-sized panels, which more than offset a decrease in the average selling price for our television panels in 2006.

While the total unit sales of panels for notebook computers increased by 51.4% from approximately 13.9 million in 2005 to 21.1 million in 2006, the total unit sales of panels for desktop monitors decreased by 15.4% from approximately 23.8 million in 2005 to 20.1 million in 2006. Total sales attributable to panels for notebook computers increased by 2.5% from approximately (Won)2,113.5 billon in 2005 to (Won)2,166.9 billion in 2006, while total sales attributable to panels for desktop monitors decreased by 38.7% from approximately (Won)4,740.4 billion in 2005 to (Won)2,906.9 billion in 2006. The increase in total sales of panels for notebook computers is due primarily to growing market demand for larger-sized panels, particularly 15.4-inch wide-format for notebook computers. The decrease in total unit sales of panels for desktop monitors primarily reflected our strategic capacity allocation among desktop monitor and notebook computer markets based on our assessment of the relative profitability of notebook computer display panels compared with display panels for desktop monitors.

 

55


The effect of the overall increase in unit sales was partially offset by a decrease in the average selling price of panels for our major product categories from 2005 to 2006. The average selling price of panels for televisions decreased 14.1% from (Won)454,748 per panel in 2005 to (Won)390,457 in 2006, the average selling price of panels for notebook computers decreased 32.3% from (Won)151,687 per panel in 2005 to (Won)102,752 in 2006 and the average selling price of panels for desktop monitors decreased 27.5% from (Won)199,283 per panel to (Won)144,444 over the same period.

This excerpt taken from the LPL 6-K filed May 15, 2007.

5. Sales

 

  A. Sales performance

(Unit: In billions of Won)

 

Business area

   Sales types    Items (Market)    2007 Q1    2006    2005
TFT-LCD    Products, etc.    TFT-LCD    Overseas    2,390    9,355    8,114
         Korea*    216    846    776
         Total    2,606    10,201    8,890

* Local export was included.

 

  B. Sales route and sales method

 

  (1) Sales organization

 

  - As of March 31, 2007, each of IT business unit, TV business unit, and Small & Medium Displays business unit has individual sales and customer support function.

 

  - Sales subsidiaries in America, Germany, Japan, Taiwan and China (Hong Kong and Shanghai) perform sales activities in overseas countries and provide technical support to customers.

 

  (2) Sales route

 

  - LG.Philips LCD HQ ® Overseas subsidiaries (USA/Germany/Japan/Taiwan /Hong Kong/Shanghai), etc.

 

  ® System integrators, Branded customers ® End users

 

  - LG.Philips LCD HQ ® System integrators, Branded customers ® End users

 

  (3) Sales methods and conditions

 

  - Direct sales & sales through overseas subsidiaries, etc.

 

  (4) Sales strategy

 

  - To secure stable sales to major PC makers and the leading consumer electronics makers globally

 

  - To increase sales of premium Notebook Computer products, to strengthen sales of the larger size and high-end Monitor segment and to lead the large and wide LCD TV market

 

  - To diversify our market in the application segment, including products such as mobile phone, automobile navigation systems, aircraft instrumentation and medical diagnostic equipment, etc.


Table of Contents
This excerpt taken from the LPL 20-F filed Apr 11, 2007.

Sales

Our sales increased by 21.0% from (Won)8,324.8 billion in 2004 to (Won)10,075.6 billion in 2005. Significant increases in unit sales of our large-size panels for televisions were the primary contributing factors to this increase. In particular:

 

   

unit sales of 32.0-inch panels for televisions increased by more than ten-fold from 0.1 million panels in 2004 to 1.4 million panels in 2005;

 

43


Table of Contents
   

unit sales of 26.0-inch panels for televisions increased by more than three-fold from 0.3 million panels in 2004 to 1.1 million panels in 2005;

 

   

unit sales of 37.0-inch panels for televisions increased by more than twenty-fold from 27,000 panels in 2004 to 0.7 million panels in 2005; and

 

   

unit sales of 42.0-inch panels for televisions increased by more than twenty-fold from 8,000 panels in 2004 to 0.2 million panels in 2005.

The total unit sales of panels for televisions increased by 156.9% from approximately 2.4 million in 2004 to 6.2 million in 2005. Total sales attributable to television panels increased by 141.2% from approximately (Won)1,162.8 billion in 2004 to (Won)2,805.0 billion in 2005. Growth in total sales of panels for televisions primarily reflected increased demand for larger- and wider-sized panels, which more than offset a decrease in the average selling price for our television panels in 2005.

While the total unit sales of panels for notebook computers and desktop monitors increased significantly in 2005, sales attributable to panels for notebook computers were flat and sales attributable to panels for desktop monitors increased by only 1.7% due to decreases in their average selling prices. The increase in total unit sales of panels for notebook computers and desktop monitors primarily reflected growing market demand for larger-sized panels, particularly 15.0-inches or larger for notebook computers and 17.0-inches or larger for desktop monitors.

The effect of the overall increase in unit sales was partially offset by a decrease in the average selling price of panels for notebook computers and televisions from 2004 to 2005. The average selling price of panels for notebook computers decreased 34.7% from (Won)232,219 in 2004 to (Won)151,687 in 2005, the average selling price of panels for desktop monitors decreased 34.2% from (Won)302,904 in 2004 to (Won)199,283 in 2005 and the average selling price of panels for televisions decreased 6.1% from (Won)484,382 to (Won)454,748 over the same period.

This excerpt taken from the LPL 6-K filed Mar 30, 2007.

5. Sales

A. Sales performance

(Unit: In billions of Won)

 

Business area   Sales types   Items (Market)   2006   2005   2004
TFT-LCD   Products, etc.   TFT-LCD   Overseas   9,355   8,114   7,298
      Korea*   846   776   782
      Total   10,201   8,890   8,080

* Local export was included.

B. Sales route and sales method

(1) Sales organization

 

  - As of December 31, 2006, each of IT business unit, TV business unit, and Small & Medium Displays business unit has individual sales and customer support function.

 

  - Sales subsidiaries in America, Germany, Japan, Taiwan and China (Hong Kong and Shanghai) perform sales activities in overseas countries and provide technical support to customers.

(2) Sales route

 

  - LG.Philips LCD HQ ® Overseas subsidiaries (USA/Germany/Japan/Taiwan /Hong Kong/Shanghai), etc.

 

     ® System integrators, Branded customers ® End users

 

  - LG.Philips LCD HQ ® System integrators, Branded customers ® End users

(3) Sales methods and conditions

 

  - Direct sales & sales through overseas subsidiaries, etc.

(4) Sales strategy

 

  - To secure stable sales to major PC makers and the leading consumer electronics makers globally


Table of Contents
  - To increase sales of premium Notebook Computer products, to strengthen sales of the larger size and high-end Monitor segment and to lead the large and wide LCD TV market

 

  - To diversify our market in the application segment, including products such as mobile phone, automobile navigation systems, aircraft instrumentation and medical diagnostic equipment, etc.
This excerpt taken from the LPL 6-K filed Aug 14, 2006.

5. Sales

A. Sales performance

(Unit: In billions of Won)

Business area

  

Sales

types

  

Items

(Market)

  1H 2006    1H 2005    2005

TFT-LCD

   Products, etc.    TFT-LCD    Overseas   4,090    3,436    8,114
         Korea*   414    363    776
         Total   4,504    3,799    8,890

* Local export was included.

B. Sales route and sales method

 

  (1) Sales organization

 

    As of June 30, 2006, Sales departments for Notebook Computer, Monitor and TV panels, qualification department and sales planning & administration department are grouped under the Chief Marketing Sales Officer. Sales department for Application and Customer Service department for Application are in the Application Division.

 

  * On August 1, 2006, we reorganized our organization and adopted three business units - IT business, Television business and small and medium display business unit. As each business unit has individual sales and customer support function, the above mentioned & existing sales departments were reorganized into each business unit.

 

    Sales subsidiaries in America, Germany, Japan, Taiwan and China (Hong Kong and Shanghai) perform sales activities in overseas countries and provide technical support to customers.

 

  (2) Sales route

 

    LG.Philips LCD HQ & Overseas manufacturing subsidiary, etc. ®Overseas subsidiaries (USA/Europe/Japan/Taiwan /Hong Kong/Shanghai), etc. ® System integrators, Branded customers ® End users

 

    LG.Philips LCD HQ & Overseas manufacturing subsidiary, etc. ® System integrators, Branded customers ® End users


  (3) Sales methods and conditions

 

    Direct sales & sales through overseas subsidiaries, etc.

 

  (4) Sales strategy

 

    To secure stable sales to major PC makers and the leading consumer electronics makers globally

 

    To increase sales of premium Notebook Computer products, to strengthen sales of the larger size and high-end Monitor segment and to lead the large and wide LCD TV market

 

    To diversify our market in the application segment, including products such as mobile phone, automobile navigation systems, aircraft instrumentation and medical diagnostic equipment, etc.


This excerpt taken from the LPL 20-F filed Jun 21, 2006.

Sales

Our sales increased by 36.5% from (Won)6,098.4 billion in 2003 to (Won)8,324.8 billion in 2004. Significant increases in unit sales of our large-size panels for notebook computers, desktop monitors and televisions were the primary contributing factors to this increase. In particular:

 

    unit sales of 17.0-inch panels for desktop monitors increased by 112.8% from 3.4 million panels in 2003 to 7.2 million panels in 2004;

 

    unit sales of 15.0-inch panels for notebook computers increased by 32.2% from 4.0 million panels in 2003 to 5.3 million panels in 2004;

 

    unit sales of 19.0-inch panels for desktop monitors increased from fewer than 100 thousand panels in 2003 to 1.9 million panels in 2004;

 

    unit sales of 20.1-inch panels for desktop monitors increased by 177.1% from 0.4 million panels in 2003 to 1.2 million panels in 2004; and

 

    combined unit sales of large panels for televisions, primarily in the 15.0-inch, 17.1-inch wide format, 20.1-inch and 30.0-inch wide-format categories, increased by 77.7% from 1.4 million panels in 2003 to 2.4 million panels in 2004.

As a result of a shift in market demand in 2004 toward larger-size panels, primarily 15.0 inches or larger, we experienced a notable decrease in unit sales of our 13.3-inch and 14.1-inch panels for notebook computers from 2003 to 2004. Unit sales of 13.3-inch panels for notebook computers decreased from 0.3 million panels in 2003 to fewer than one thousand panels in 2004. Unit sales of 14.1-inch panels for notebook computers decreased 42.2% from 1.8 million panels to 1.0 million panels over the same period. In addition, unit sales of 18.1-inch panels decreased 73.5% from 2.0 million to 0.5 million from 2003 to 2004 due to a shift in demand toward 17.0-inch and 17.1-inch wide-format panels.

The effect of the overall increase in unit sales was partially offset by a decrease in the average selling price of panels for notebook computers and televisions from 2003 to 2004. The average selling price of panels for notebook computers decreased 1.3% from (Won)235,162 in 2003 to (Won)232,219 in 2004 and the average selling price of panels for televisions decreased 4.6% from (Won)507,535 to (Won)484,382 over the same period. The average selling price of panels for desktop monitors, however, increased 2.7% from (Won)294,841 in 2003 to (Won)302,904 in 2004.

 

51


Table of Contents
This excerpt taken from the LPL 6-K filed Mar 31, 2006.

5. Sales

 

  A. Sales performance

(Unit: In billions of won)

 

Business

area

 

Sales

types

 

Items

(Market)

  2005   2004   2003
TFT-LCD   Products, etc.   TFT-LCD   Overseas   8,114   7,298   5,053
      Korea*   776   782   978
                 
      Total   8,890   8,080   6,031
                 

* Local export was included.


Table of Contents
  B. Sales route and sales method

 

  (1) Sales organization

 

  - Sales departments for Notebook PC, Monitor and TV panels, qualification department and sales planning & administration department are grouped under the Chief Marketing Sales Officer. Sales department for Application and Customer Service department for Application are in the Application Division.

 

  - Sales subsidiaries in America, Germany, Japan, Taiwan and China (Hong Kong, Shanghai) perform sales activities in overseas countries and provide technical support to customers.

 

  * We have a back-end manufacturing subsidiary in Nanjing, China and we have entered into investment agreement with Polish Government to build a “back-end” module production plant in Wroclaw, Poland.

 

  (2) Sales route

 

  - LG.Philips LCD HQ & Overseas manufacturing subsidiary ® Overseas subsidiaries (USA/Europe/Japan/Taiwan /Hong Kong/Shanghai) ® System integrators, Branded customers ® End users

 

  - LG.Philips LCD HQ & Overseas manufacturing subsidiary ® System integrators, Branded customers ® End users

 

  (3) Sales methods and conditions

 

  - Direct sales & sales through overseas subsidiaries, etc.

 

  (4) Sales strategy

 

  - To secure stable sales to major PC makers and the leading consumer electronics makers globally

 

  - To increase sales of premium Notebook PC products, to strengthen sales of the larger size and high-end Monitor segment and to lead the large and wide LCD TV market

 

  - To diversify our market in the applications segment, including products such as mobile phone, automobile navigation systems, aircraft instrumentation and medical diagnostic equipment, etc.


Table of Contents
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