I. 07 Business Overview. II. FPTV Market Trend. III. Strategy & Vision

Transcription

1 Nov 28, 2007

2 I. 07 Business Overview II. FPTV Market Trend III. Strategy & Vision

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4 Business Structure Corporate Technology Operations Corporate Executive Staff Digital Media Business Telecom. Network Business Semiconductor Business LCD Business Digital Appliance Division Visual Display Division Digital AV Division Computer System Division Digital Printing Division Digital Media R&D Center Global Production Technology Center Biz. Management Office 3/34

5 Global Operation Global Network Operations : Manufacturing, R&D and Design Facilities China Production (3) R&D Center (2) Design Center(1) Korea Production (1) R&D Center (1) Design Center(1) North America Production (1) R&D Center (2) Design Center(2) Europe / CIS Production (2) R&D Center (3) Design Center(2) Asia Production (6) R&D Center (2) Japan R&D Center (1) Design Center(1) South America Production (2) R&D Center (1) Overseas Production Rate (%) Production Subsidiaries : 11 Countries, 15 Factories R&D Centers : 9 Countries, 13 R&D Centers Design Centers : 6 Countries, 7 Design Centers E 4/34

6 Achievements The World s Best-Selling LCD TVs Bordeaux Series 7 million units sold ( 06.3~ 07.10) Rome (2005) Bordeaux (2006) Bordeaux Plus (2007) 1 million units 4 million units 3 million units ( 05.2~ 06.1) ( 06.3~ 07.10) ( 07.3~ 07.10) Tulip (2007) 1 Million Units ( 07.3~ 07.10) 5/34

7 Achievements FPTV M/S #1 in Unit & Revenue #1 M/S by Revenues in Global FPTV : M/S Gap is Continuously Increasing #1 M/S by Units in Global FPTV : M/S Gap is Continuously Increasing Revenue (%) Unit (%) Q Q Q Q Q Q 2007 (Source : Display Search 07.4Q) 6/34

8 Achievements #1 Market Share by Units & Revenues in LCD TV #1 M/S by Revenues in Global LCD TV : M/S Gap is Continuously Increasing #1 M/S by Units in Global LCD TV : M/S Gap is Continuously Increasing Revenue Unit (%) (%) Q Q Q Q Q Q 2007 (Source : Display Search 07.4Q) 7/34

9 Achievements LCD TV & PDP TV : Global M/S #1 Country Expansion LCD : 38 in countries in 2007, PDP : 5 in countries in 2007 : 2007 LCD #1(55 countries) : 2007 PDP #1(12 countries) 8/34

10 Achievements International Awards reddot Design Award for 3 years if Design Award for 5 years EISA Award for 5 years 2007 Bordeaux Plus 2003 CES Award for 6 years /34

11 Achievements International Editorials USA Consumer Report (US Major Consumer Magazine) - LCD TV 32,40, 46 Ranked #1, Triple Crown 494 1, , UK What Home Cinema (UK AV Magazine) - LCD TV 32,37,52 Winner, Totaling 4 best picks Germany Award 194 Editorial France What Hi-fi? (France/Global AV Magazine) Video (Germany AV Magazine) - Chosen as Test Winner in 40 LCD TV category (1~10)- 5 Stars Test Winner for PDP TV Super Test 1,270 10/34

12 2007 Business Outlook Forecast (by Sales Units) Sales Portion of FPTV : 37% in % in Total TV Sales Units(E) : 26M Units in 2007 (Including 15M Units of FPTV) (Million units) 26 PDP TV LCD TV MD PJTV 15 18% Market 14% 20 37% Market 29% 57% Market 43% CRT TV (E) 11/34

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14 Market Outlook - Strong Growth Momentum FPTV Leads CTV Market : 29% in % in 2011 (Million units) 190 CAGR : TV total 3.2% (FPTV 23.4%) LCD-TV 43% 95 54% 46 29% 73 PDP-TV PJ-TV % % % CRT-TV (Source : Display Search 07.3Q) 13/34

15 Market Trend Large Screen Share (LCD 40 +/PDP 50 +) : 14% in % in 2011 LCD TV PDP TV (Million units) 46 CAGR 25.2% % (CAGR) (123%) 41% (54%) (25%) (Million units) 9 20% 11 CAGR 13.1% 13 39% (CAGR) (64%) 55% (36%) 13% (3%) (3%) (-23%) s 30 s 29 (Source : Display Search 07.3Q) s 40 s 40 14/34

16 Market Trend Emerging Market Share (FPTV) : 19% in % in 2011 LCD TV PDP TV (Million units) CAGR 25% 25% (CAGR) (15%) (19%) (Million units) 9 11 CAGR 13% (CAGR) (9%) 46 18% 73 30% (9%) (43%) 44% (55%) 23% 30% (9%) (7%) (24%) 37% (25%) (Source : Display Search 07.3Q) N. America Europe Japan China ROW 15/34

17 LCD TV Market Slow Price Decline LCD TV price is likely to fall at a slower pace in large sizes $10, $8,000 32"HD 40"HD -35% -33% -34% -38% -10% -17% 40"FHD N/A -26% -22% $6, FHD 52"FHD -61% N/A -31% -19% -23% -25% $4,000 $2, FHD 46 FHD 40 FHD 40 HD 32 HD 06 1Q 06 3Q 07 1Q 07 3Q 08 1Q 08 3Q (Source : Display Search 07.3Q) 16/34

18 LCD TV Market Large screen size market increase After 40 in 2006 & 46 in 2007, 52 will surge in 2008 (K unit) Growth 40/42 4,885 11,795 19, % ,685 5, % , % Increased Supply With increased capacity in 7G & 8G 52 supply will be more stable. 52 7G x3 7.5G 8G 10G x3 (Source : Display Search 07.3Q) x6 x8 Growing Opportunity ASP will approach $2K in 2008 $4,500 Magic Price $2,300 $2, $1,990 $2, $ /34

19 LCD TV Market Resolution shift from HD to Full HD(1080P) In 2008, share of Full HD in LCD TV market will increase to 19% Demand Side [share in 40/42 ] 100% 1080p 720p LCD TV demand by resolution Full HD 1,985 4% 8,646 12% ,020 19% 50% 73% 74% 71% 67% 64% 63% 60% 59% 56% HD 36,254 79% 57,952 80% 71,034 75% SD 7,751 17% 6,269 8% 5,989 6% Total 45,990 72,867 95,043 Narrowed gap will drive more sales in 1080p CAGR 29% 36% 40% 41% 44% 33% 37% 27% 26% 0% '06.4Q '07.1Q 2Q 3Q 4Q '08.1Q 2Q 3Q 4Q [Share in 46 ] 1080p 720p 100% 43% 35% 37% 33% 27% 27% 23% 22% 19% 1080p 720p Gap $2,594 $1,127 $1,468 $1,914 $785 $1,129 $1,535 $711 $823 23% 21% 50% 73% 77% 78% 82% 63% 67% 74% 57% 65% [Source: Display Search, Q3 07] 0% '064Q '07.1Q 2Q 3Q 4Q '08.1Q 2Q 3Q 4Q 18/34

20 PDP TV Market Slow Price Decline PDP TV price is likely to fall at a slower pace in 42 and 50 $10, $8,000 42"HD 50"HD -39% -35% -38% -40% -22% -26% 50"FHD N/A -63% -26% $6,000 60~65"HD 60~65"FHD -29% N/A -38% -27% -30% -29% $4,000 60~65 FHD 60~65 HD $2, FHD 50 HD 42 HD 06 1Q 06 3Q 07 1Q 07 3Q 08 1Q 08 3Q [Source: Display Search, Q3 07] 19/34

21 PDP TV Market LCD TV vs. PDP TV in Large screen market HD segments still remain as the biggest segments 40 Grade 50 and above Grade LCD TV portion : 47% in 2006 to 78% in 2008 PDP portion : 45% in 2006 to 63% in % 80% PDP HD 100% 80% MD FHD PDP FHD 60% PDP SD LCD FHD 60% MD HD 40% 40% PDP HD 20% LCD HD 20% 0% [Display Search, 07.3Q] LCD FHD 0% /34

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23 08 Marketing Strategy Value Creation through New Experience [ Brand Image Portfolio ] FUNCTIONAL TECHNICAL ~ ~ EMOTIONAL 2005 ROME 2006~7 BORDEAUX 2008 NEW Experience Living Objet User Objet Device Content Emotion 2004 Multi-media Center Additional Function Exterior Quality NAPLES Broadcasting Device Picture Sound 22/34

24 08 Marketing Strategy Leading the FPTV Design 2006 V - Shaped Design High Glossy Hidden (High-Quality) Speakers New Emotional Design 2007 U - Shaped Design Luxurious Blue Light Touch Button 2008 New Premium Design Luxurious Blue Light Invisible Speakers 23/34

25 08 Marketing Strategy Improved Picture Display Technology Conventional Super Clear Reduced reflection Enhance contrast Deep & natural color More dynamic motion Deeper Black Darker and Clearer Picture 24/34

26 08 Marketing Strategy Improved Picture Display Technology Conventional WCE applied Reduced reflection Enhance contrast Deep & natural color More dynamic motion Darker and Clearer Picture 25/34

27 08 Marketing Strategy Improved Picture Display Technology Analog Digital Reduced reflection Enhance contrast Deep & natural color More dynamic motion External Dimming Internal Dimming Darker and Clearer Picture 26/34

28 08 Marketing Strategy HDMI-CEC New AV Networking Solution - Easy connection and control with a single remote One touch play / record One touch home theater 27/34

29 08 Marketing Strategy Life-enriching Infotainment Solution WiseLink Pro (USB 2.0) RSS (Really Simple Syndication) Easy access to PC contents - Enjoy Movie & UCC, Music, Photo on TV Easy navigation & searching contents Movie Easy real-time information immediately without booting up PC Stock News Weather Internet I need a fast way to get weather and traffic info before leaving at the morning rush hour UCC 28/34

30 08 Marketing Strategy Highly effective Global SCM Systems Global SCM Supply Chain Efficiency - Minimize the inventory level - Prompt response to demand change CPFR Suppliers / Channel Mgmt. Efficiency - Improved Sales Visibility - Improved Forecast Accuracy Monthly Weekly Inventory 2W Continuous Supply Accuracy 0.5W Reliability Sales Visibility Key Suppliers Channel Partners *SCM (Supply Chain Management) *CPFR (Collaborative Planning Forecasting & Replenishment) 29/34

31 08 Marketing Strategy Optimization of the Global Operation New Plants : Localization, Cost Saving, Mfg. Efficiency, etc. India Chennai, 2nd Plant in India (Noida, 1st Plant) - To Meet the Strong Southern Market Demands - To Minimize the Lead-Time (2 Weeks 3 Days) Brazil San Paulo, 2nd Plant in Brazil (Manaus, 1st Plant) - To Maximize the Production Efficiency Russia Kaluga, Russia - To Meet the Strong Russia / CIS Market Demands - To Build the Strong Relationship w/ GOV. & Biz. Partners 30/34

32 Product & Technology Leadership Operational Excellency Preparation For the Future Design Differentiation 3D Display Wireless Features Product Portfolio Global SCM Scenario Management Full HD Connectivity New Display Device Emerging Market

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