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APPENDIX
2009 %sales 2010 %sales 2011F %sales 2012F %sales 2013F %sale
Sales ₩20,037,702.00 1.0000 ₩25,511,535.00 1.0000 ₩21,810,992.64 1.0000 ₩26,344,789.80 1.0000 ₩24,533,220.34 1.000
Cost of Sales -₩17,476,996.00 (0.8722) -₩21,780,880.00 (0.8538) ₩20,720,443.01 0.9500 ₩25,027,550.31 0.9500 ₩22,079,898.31 0.900
Gross Profit ₩2,560,706.00 0.1278 ₩3,730,655.00 0.1462 ₩1,090,549.63 0.0500 ₩1,317,239.49 0.0500 ₩2,453,322.03 0.100
SG&A -₩1,445,762.00 (0.0722) -₩2,042,095.00 (0.0800) -₩1,659,795.10 (0.0761) -₩2,071,639.69 (0.0786) -₩1,471,993.22 -0.06
Other expenses -₩104,757.00 (0.0052) -₩378,088.00 (0.0148) -₩218,636.35 (0.0100) -₩268,674.76 (0.0102) -₩257,598.81 -0.01
Operating Income ₩1,010,187.00 0.0504 ₩1,310,472.00 0.0514 -₩787,881.81 (0.0361) -₩1,023,074.96 (0.0388) ₩723,730.00 0.029
Finance Income ₩122,927.00 0.0061 ₩91,203.00 0.0036 ₩105,889.71 0.0049 ₩136,427.46 0.0052 ₩171,732.54 0.007Finance Costs -₩112,632.00 (0.0056) -₩99,659.00 (0.0039) -₩103,901.38 (0.0048) -₩129,682.41 (0.0049) -₩12,266.61 -0.00
Foreign exchange Net ₩88,389.00 0.0044 -₩23,745.00 (0.0009) ₩37,955.26 0.0017 ₩46,609.01 0.0018 ₩49,066.44 0.002
Others, net -₩95,911.00 (0.0048) -₩12,702.00 (0.0005) -₩57,629.22 (0.0026) -₩70,768.60 (0.0027) -₩73,599.66 -0.00
Total ₩2,773.00 0.0001 -₩44,903.00 (0.0018) -₩17,685.62 (0.0008) -₩17,414.54 (0.0007) ₩134,932.71 0.005
Income Before Taxes ₩1,012,960.00 0.0506 ₩1,265,569.00 0.0496 -₩805,567.44 (0.0369) -₩1,040,489.50 (0.0395) ₩858,662.71 0.035
Income Tax Benefit ₩104,818.00 0.0052 -₩106,335.00 (0.0042) ₩11,591.72 0.0005 ₩14,934.68 0.0006 ₩14,719.93 0.000
Net Income/Loss ₩1,117,778.00 0.0558 ₩1,159,234.00 0.0454 -₩793,975.72 (0.0364) -₩1,025,554.82 (0.0389) ₩873,382.64 0.035
Dividend ₩178,900.00
Controlling Interest ₩1,117,778.00 ₩1,156,343.00 -₩788,849.19 -₩1,013,643.43 ₩855,761.03
Non-controlling Interest ₩0.00 ₩2,891.00 -₩5,126.53 -₩11,911.39 ₩17,621.61
(Expressed in Nominal Terms)
For the years 2012 to 2015
Forecasted Income Statement
LG Display Corporation
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%sales
1.0000
0.8800
0.1200
-0.0720
-0.0103
0.0378
0.0069-0.0045
0.0022
-0.0027
0.0020
0.0397
0.0006
0.0403
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change TV NBPC Desktop Monitors Others
-10% 263.50 60.10 97.29 6.26
-5% 278.14 63.44 102.70 6.61
BASE 292.77 66.78 108.10 6.96
5% 307.41 70.12 113.51 7.3110% 322.05 73.46 118.91 7.66
-10% 256.91 58.60 94.86 6.11
-5% 271.18 61.85 100.13 6.45
BASE 285.46 65.11 105.40 6.79
5% 299.73 68.36 110.67 7.13
10% 314.00 71.62 115.94 7.47
-10% 266.46 60.78 98.39 6.18
-5% 281.26 64.15 103.85 6.53BASE 296.07 67.53 109.32 6.87
5% 310.87 70.91 114.78 7.21
10% 325.67 74.28 120.25 7.56
-10% 267.87 61.10 98.91 6.30
-5% 282.75 64.49 104.40 6.65
BASE 297.63 67.89 109.90 7.00
5% 312.51 71.28 115.39 7.35
10% 327.40 74.68 120.88 7.70
-10% 253.81 59.42 93.71 6.08
-5% 267.91 62.72 98.92 6.42
BASE 282.01 66.02 104.13 6.76
5% 296.11 69.32 109.33 7.10
10% 310.21 72.62 114.54 7.44
Line items 2009 2010 2011 2012 2013
Gross Profit % 12.78% 14.62% 5% 6% 10%
SG&A -7.610% -7.864% -6.000%
Other expenses -1.002% -1.020% -1.050%
Price Simulation
2012
2011
2013
2015
2014
OPERATING CONDITION
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Finance Income 0.485% 0.518% 0.700%
Finance Costs -0.476% -0.492% -0.050%
Foreign exchange Net 0.174% 0.177% 0.200%
Others, net -0.264% -0.269% -0.300%
Income Tax Benefit 0.053% 0.057% 0.060%
Inflation Rate - - 0.42% 0.38% 0.39%
Market Risk Premium will increase by 1% 7.20% 7.27% 7.34%
Beta 1.35 1.54 1.3
Balance Sheet Assumptions
Year Description Quantitave terms
2011 Cash and Cash Equivalents grows by 25% 1.25
Short term financial instruments grows by 40% 1.4
Trade accounts and notes receivable collection period shorten 45Inventories will increase by 4.6% 1.046
Other Current Assets will grow by 25% 1.25
Investments and other non current assets will increase by 25% 1.25
Net PPE will increase by 2% 1.02
Net Intangible assets will increase by 5% 1.05
Short term debt will decrease by 42.5% 0.425
Trade Accounts and notes payable will increase by 27.7% 1.277
Other payables and accrued liabilities will increase by 37% 1.37
Long term debt will increase by 50% 1.5
Other non-current liabilities will increase by 2% 1.02Common Stock and additional paid-in capital will be constant 1
R/E will decrease due to net loss -793,976
Other comprehensive income will decrease to 34.5% -0.345
Non-controlling interest equity ₩66,869.25
2012 Cash and Cash Equivalents grows by 18% 1.18
Short term financial instruments grows by 35% 1.35
Trade accounts and notes receivable collection period will be 45 day 45
Inventories will increase by 2% 1.15
Other Current Assets will grow by 10% 1.25
Investments and other non current assets will increase by 58% 1.58Net PPE will increase by 25% 1.25
Net Intangible assets will increase by 6% 1.06
Short term debt will increase by 50% 1.5
Trade accounts and notes payable will increase by 56% 1.56
Other payables and accrued liabilities will increase by 70% 1.7
Long term debt will increase by 30% 1.3
Other non-current liabilities will increase by 20% 1.2
Common Stock and additional paid-in capital will be held constant 1
Market Condition
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R/E will decrease due to net loss -1,025,555
Other comprehensive income will increase by 15% 1.15
Non-controlling interest equity ₩108,883.34
2013 Cash and Cash Equivalents grows by 35% 1.35
Short term financial instruments grows by 37.8% 1.378Trade accounts and notes receivable collection period will be 40 day 40
Inventories will increase by 25% 1.3
Other Current Assets will grow by 28% 1.35
Investments and other non current assets will increase by 40% 1.4
Net PPE will increase by 15% 1.15
Net Intangible assets will increase by 22% 1.22
Short term debt will increase by 30% 1.3
Trade accounts and notes payable will increase by 29% 1.29
Other payables and accrued liabilities will increase by 22% 1.22
Long term debt will increase by 25% 1.25Other non-current liabilities will increase by 13% 1.13
Common Stock and additional paid-in capital will be held constant 1
R/E will decrease due to dividend payment of 178908 -178,908
Other comprehensive income will increase by 10% 1.1
Non-controlling interest equity ₩205,128.83
2014 Cash and Cash Equivalents grows by 15% 1.15
Short term financial instruments grows by 25% 1.25
Trade accounts and notes receivable collection period will be 45 day 45
Inventories will increase by 27% 1.27Other Current Assets will grow by 22.5% 1.3
Investments and other non current assets will increase by 35% 1.35
Net PPE will increase by 10% 1.10
Net Intangible assets will increase by 17% 1.17
Short term debt will increase by 25% 1.25
Trade accounts and notes payable will increase by 31% 1.31
Other payables and accrued liabilities will increase by 25% 1.25
Long term debt will increase by 13% 1.13
Other non-current liabilities will increase by 8% 1.08
Common Stock and additional paid-in capital will be held constant 1R/E will decrease due to dividend payment of 178908 -178,908
Other comprehensive income will increase by 10% 1.1
Non-controlling interest equity ₩318,076.43
2015 Cash and Cash Equivalents grows by 16% 1.16
Short term financial instruments grows by 18% 1.18
Trade accounts and notes receivable collection period will be 45 day 45
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Inventories will increase by 10% 1.1
Other Current Assets will grow by 20% 1.2
Investments and other non current assets will increase by 19% 1.19
Net PPE will increase by 5% 1.05
Net Intangible assets will increase by 13% 1.13
Short term debt will increase by 12% 1.12
Trade accounts and notes payable will increase by 20% 1.2Other payables and accrued liabilities will increase by 10% 1.1
Long term debt will remain 1
Other non-current liabilities will increase by 2% 1.02
Common Stock and additional paid-in capital will be held constant 1
R/E will decrease due to dividend payment of 178908 -178,908
Other comprehensive income will increase by 10% 1.1
Non-controlling interest equity ₩375,335.63
Cash flow assumptions
Description Quantitative term
Depreciation is 25% of PPE 0.25Amortization of intangible assets is 25% of the account 0.25
Gain on disposal of intangible assets is 15% 0.15
Gain on foreign currency translation is 25% 1.25
Loss on foreign currency translation 0.25
Impairment loss on property, plant and equipment is 3% 0.03
Acquisition of property, plant and equipment is 10% 0.1
Acquisition of intangible assets is 10% 0.1
Gain on disposal of property, plant and equipment is 12% 0.12
Loss on disposal of property, plant and equipment is 5% 0.05
Proceeds from short-term borrowings is 15% 0.15Repayment of short-term borrowings is 35% 0.35
Proceeds from long-term debt is 20% 0.2
Repayment of long-term debt is 23% 0.23
Repayment of current portion of long-term debt is 10% 0.1
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change TV NBPC Desktop Monitors Others
-10% 38,925 54,340 41,724 157,771
-5% 41,088 57,359 44,042 166,536
BASE 43,250 60,378 46,360 175,301
5% 45,413 63,397 48,678 184,066 10% 47,575 66,416 50,996 192,831
-10% 37,952 52,982 40,681 153,827
-5% 40,060 55,925 42,941 162,373
BASE 42,169 58,869 45,201 170,918
5% 44,277 61,812 47,461 179,464
10% 46,386 64,755 49,721 188,010
-10% 39,363 54,952 42,193 155,700
-5% 41,550 58,004 44,537 164,350 BASE 43,737 61,057 46,882 173,000
5% 45,923 64,110 49,226 181,650
10% 48,110 67,163 51,570 190,300
-10% 42,523 59,363 45,581 170,240
-5% 44,886 62,661 48,113 179,697
BASE 47,248 65,959 50,645 189,155
5% 49,610 69,257 53,178 198,613
10% 51,973 72,555 55,710 208,071
-10% 45,037 62,873 47,136 175,011
-5% 47,539 66,366 49,755 184,734
BASE 50,041 69,859 52,374 194,457
5% 52,544 73,352 54,992 204,179
10% 55,046 76,845 57,611 213,902
2014 2015
12% 15%
-7.250% -7.200%
-1.030% -1.025%
Sales Volume Simulation
2011
2012
2013
2014
2015
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0.730% 0.690%
-0.450% -0.450%
0.240% 0.220%
-0.270% -0.265%
0.070% 0.058%
0.38% 0.40%
7.42% 7.49%
1.27 1.28
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2009 2010 2011F
1,117,778.00 1,159,234.00 (793,975.72)
Adjustments for: 3,602,379.14 4,438,127.32 3,988,920.19
Depreciation 2,399,124.25 3,203,850.25 3,267,927.26 Amortization of intangible assets 88,098.25 134,975.25 141,724.01
Gain on disposal of intangible assets 52,858.95 80,985.15 85,034.41
Gain on foreign currency translation 110,486.25 29,681.25 47,444.08
Loss on foreign currency translation (22,097.25) 5,936.25 (9,488.82)
Impairment loss on property, plant and equipment (287,894.91) (384,462.03) (392,151.27)
Gain on disposal of property, plant and equipment 959,649.70 1,281,540.10 1,307,170.90
Loss on disposal of property, plant and equipment 959,649.70 1,281,540.10 1,307,170.90
Change in Working Capital 1,588,494.00 1,588,494.00 1,113,387.49
Change in trade accounts and receivables (66,891.00) (50,416.00) 311,634.51
Change in other current assets (148,795.00) (200,411.00) (122,636.50)
Change in inventories (356,874.00) (547,437.00) (101,899.98)
Change in trade accounts and notes payable 708,696.00 930,573.00 820,472.62
Operating Activities 4,720,157.14 5,597,361.32 3,194,944.46
Acquisition of property, plant and equipment 45,853.38 (3,218,904.00) (256,308.02)
Acquisition of intangible assets 959,649.70 (187,508.00) (26,995.05)
Investing Activities 1,005,503.08 (3,406,412.00) (283,303.07)
Proceeds from short-term borrowings (300,535.50) (315,003.45) (133,876.47)
Repayment of short-term borrowings 701,249.50 735,008.05 312,378.42
Proceeds from long-term debt (415,232.00) (508,580.00) (762,870.00)
Repayment of long-term debt 477,516.80 584,867.00 877,300.50
Repayment of current portion of long-term debt 207,616.00 254,290.00 381,435.00
Increase in non-controlling interest - 24,911.00 41,959.25
Payment of cash dividend - - -
Financing Activities 670,614.80 775,492.60 716,326.71
Supplemental Cash flow disclosures
Income tax paid 101,296.00 126,556.90 (80,556.74)
Net Income for the year (Won)
LG Display Corpora
Forecasted Cash flow S
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122,927.00 91,203.00 105,889.71
(112,632.00) (99,659.00) (103,901.38)
1,528,446.00 1,661,923.00 2,077,403.75
(95,911.00) (12,702.00) (57,629.22)
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2012F 2013F 2014F 2015F
(1,025,554.82) 873,382.64 548,502.37 1,134,043.07
8,752,708.48 7,695,394.81 8,172,414.84 7,525,622.70
4,084,909.07 4,697,645.43 5,167,409.97 5,425,780.47 150,227.45 183,277.49 214,434.67 242,311.17
90,136.47 109,966.50 128,660.80 145,386.70
58,261.26 61,333.05 80,662.11 77,423.50
(11,652.25) (12,266.61) (16,132.42) (15,484.70)
(490,189.09) (563,717.45) (620,089.20) (651,093.66)
1,633,963.63 1,879,058.17 2,066,963.99 2,170,312.19
1,633,963.63 1,879,058.17 2,066,963.99 2,170,312.19
5,167,811.03 3,561,755.50 3,636,114.73 2,746,919.61
(558,961.29) 559,415.69 (626,309.25) (156,159.60)
(153,295.63) (268,267.34) (310,423.64) (269,033.82)
(347,567.55) (799,405.36) (935,304.27) (439,939.42)
2,118,181.86 1,711,188.35 2,359,669.73 1,994,301.51
7,727,153.66 8,568,777.45 8,720,917.20 8,659,665.76
(3,267,927.26) (2,450,945.44) (1,879,058.17) (1,033,481.99)
(34,013.76) (132,200.16) (124,628.70) (111,506.03)
(3,301,941.02) (2,583,145.60) (2,003,686.87) (1,144,988.02)
(200,814.70) (261,059.11) (326,323.89) (365,482.75)
468,567.63 609,137.92 761,422.40 852,793.09
(991,731.00) (1,239,663.75) (1,400,820.04) (1,400,820.04)
1,140,490.65 1,425,613.31 1,610,943.04 1,610,943.04
495,865.50 619,831.88 700,410.02 700,410.02
42,014.09 96,245.49 112,947.60 57,259.20
- 178,900.00 178,900.00 178,900.00
954,392.17 1,429,005.74 1,637,479.14 1,634,002.56
(104,048.95) 85,866.27 52,968.12 111,771.37
tion
atement
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136,427.46 171,732.54 196,277.81 194,262.59
(129,682.41) (12,266.61) (120,993.17) (126,692.99)
3,282,297.93 4,595,217.10 6,203,543.08 7,382,216.26
(70,768.60) (73,599.66) (72,595.90) (74,608.10)
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2009 2010 2011F 2012F 2013F 2014F 2015F
Liquidity Ratio
Current Ratio 1.2665 0.9953 0.9853 0.7391 0.7102 0.6879 0.6830
Quick Ratio 0.9651 0.6907 0.6895 0.5264 0.4875 0.4645 0.4630Cash Ratio 0.5108 0.3529 0.4181 0.3251 0.3545 0.3355 0.3446
Turnover Ratio
Receivable Turnover 6.7343 17.0039 7.3475 8.8754 18.2500 16.2222 16.2222
Payable Turnover 5.5660 11.4042 -2.9329 -2.5345 -4.0687 -1.6987 -3.3203
Inventory Turnover 9.0018 19.6648 -8.3185 -8.1672 -12.7479 -5.2385 -10.2392
Days of Sales Outstanding 54.20 21.47 49.68 41.12 20.00 22.50 22.50
Days of Payable 65.58 32.01 -124.45 -144.02 -89.71 -214.87 -109.93
Days of Inventory in Hand 40.55 18.56 -43.88 -44.69 -28.63 -69.68 -35.65
Cash Conversion Cycle 29.17 8.02 130.25 140.45 81.08 167.69 96.78
Fixed Asset Turnover 1.5126 2.2766 1.6851 1.7915 1.3967 1.3628 1.3289
Total Asset Turnover 1.0170 0.0486 0.8561 0.8195 0.6377 0.5920 0.5621
Profitability Ratio
Gross Profit Margin 0.1278 0.1462 0.1462 0.1462 0.0500 0.0500 0.0500
Operating Profit Margin 0.0504 0.0514 0.0514 0.0514 -0.0361 -0.0361 -0.0388
Net Profit Margin 0.0558 0.0454 0.0454 0.0454 -0.0364 -0.0364 -0.0389
Return on Assets 0.0513 0.2623 -0.0276 -0.0290 0.1217 0.0115 0.0453
Return on Equity 1.8992 0.1099 -0.0741 -0.0356 0.0894 0.0131 0.1016
Return on Total Capital 0.0717 0.0806 -0.0535 -0.0664 0.0474 0.0267 0.0530
EBIT Margin 0.0504 0.0504 0.0514 0.0514 -0.0361 -0.0361 -0.0388
Other Ratios
Tax Burden 19.7813 0.9160 20.1582 20.1582 0.9856 -27.0753 -25.3196Interest Burden 1.0027 0.9657 0.9657 0.9657 1.0224 1.0224 1.0170
Financial Leverage 2.0644 2.1569 2.9206 3.6137 3.7837 4.2796 4.2937
Debt/Asset 0.4905 0.5364 0.5935 0.7084 0.7357 0.7655 0.7671
Debt/Equity 0.9625 1.1569 1.4601 2.4293 2.7837 3.2643 3.2937
Debt/Capital 0.4905 0.5364 0.5935 0.7084 0.7357 0.7655 0.7671
Interest Coverage 8.9689 13.1496 13.1496 13.1496 -7.5830 -7.5830 -7.8891
Fixed Charge coverage 8.9689 13.1496 13.1496 13.1496 -7.5830 -7.5830 -7.8891
Dividend payout 0.0000 0.0000 0.0000 0.0000 0.2048 0.3262 0.1578
Retention Rate 1.0000 1.0000 1.0000 1.0000 0.7952 0.6738 0.8422
Sustainable growth rate 1.8992 0.1099 -0.0741 -0.0356 0.0711 0.0088 0.0856
Financial Statement Analysis
Forecasted Financial Ratios
LG Display Corporation
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2009 2010 2011F
ASSETSCurrent assets:
Cash and cash equivalents ₩817,982.00 ₩1,631,009.00 ₩2,038,761.25
Short term financial instruments ₩2,500,000.00 ₩1,503,000.00 ₩2,104,200.00
Trade accounts and notes receivable ₩2,950,245.00 ₩3,000,661.00 ₩2,689,026.49
Inventories ₩1,667,780.00 ₩2,215,217.00 ₩2,317,116.98
Other current assets ₩290,135.00 ₩490,546.00 ₩613,182.50
Total current assets ₩8,226,142.00 ₩8,840,433.00 ₩9,762,287.22
Investments and other non-current assets ₩1,528,446.00 ₩1,661,923.00 ₩2,077,403.75
Property, plant and equipment, net ₩9,596,497.00 ₩12,815,401.00 ₩13,071,709.02
Intangible assets, net ₩352,393.00 ₩539,901.00 ₩566,896.05
Total noncurrent assets ₩11,477,336.00 ₩15,017,225.00 ₩15,716,008.82
Total Assets ₩19,703,478.00 ₩23,857,658.00 ₩25,478,296.04
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt ₩2,003,570.00 ₩2,100,023.00 ₩892,509.78
Trade accounts and notes payable ₩2,031,422.00 ₩2,961,995.00 ₩3,782,467.62
Other payables and accrued liabilities ₩2,460,079.00 ₩3,819,811.00 ₩5,233,141.07
Total current liabilities ₩6,495,071.00 ₩8,881,829.00 ₩9,908,118.46
Long-term debt ₩2,076,160.00 ₩2,542,900.00 ₩3,814,350.00
Other non-current liabilities ₩1,092,498.00 ₩1,371,962.00 ₩1,399,401.24
Total liabilities ₩9,663,729.00 ₩12,796,691.00 ₩15,121,869.70
Common Stock and additional paid-in capital ₩4,040,191.00 ₩4,040,192.00 ₩4,040,192.00
Retained Earnings ₩6,050,562.00 ₩7,031,163.00 ₩6,237,187.28
Other comprehensive income -₩51,003.00 -₩35,298.00 ₩12,177.81
Controlling Interest equity ₩10,039,750.00 ₩11,036,057.00 ₩10,289,557.09
Non-controlling Interest equity -₩1.00 ₩24,910.00 ₩66,869.25
Total shareholders' equity ₩10,039,749.00 ₩11,060,967.00 ₩10,356,426.34
Total liabilities and shareholders' equity ₩19,703,478.00 ₩23,857,658.00 ₩25,478,296.04
L
Fo
Fo
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2012F 2013F 2014F 2015F
₩2,405,738.28 ₩3,247,746.67 ₩3,734,908.67 ₩4,332,494.06
₩2,840,670.00 ₩3,914,443.26 ₩4,893,054.08 ₩5,773,803.81
₩3,247,987.78 ₩2,688,572.09 ₩3,314,881.34 ₩3,471,040.94
₩2,664,684.53 ₩3,464,089.89 ₩4,399,394.16 ₩4,839,333.57
₩766,478.13 ₩1,034,745.47 ₩1,345,169.11 ₩1,614,202.93
₩11,925,558.71 ₩14,349,597.38 ₩17,687,407.35 ₩20,030,875.31
₩3,282,297.93 ₩4,595,217.10 ₩6,203,543.08 ₩7,382,216.26
₩16,339,636.28 ₩18,790,581.72 ₩20,669,639.89 ₩21,703,121.88
₩600,909.81 ₩733,109.97 ₩857,738.67 ₩969,244.69
₩20,222,844.01 ₩24,118,908.78 ₩27,730,921.63 ₩30,054,582.84
₩32,148,402.73 ₩38,468,506.16 ₩45,418,328.99 ₩50,085,458.15
₩1,338,764.66 ₩1,740,394.06 ₩2,175,492.58 ₩2,436,551.69
₩5,900,649.48 ₩7,611,837.83 ₩9,971,507.56 ₩11,965,809.07
₩8,896,339.82 ₩10,853,534.58 ₩13,566,918.22 ₩14,923,610.05
₩16,135,753.96 ₩20,205,766.47 ₩25,713,918.36 ₩29,325,970.80
₩4,958,655.00 ₩6,198,318.75 ₩7,004,100.19 ₩7,004,100.19
₩1,679,281.49 ₩1,897,588.08 ₩2,049,395.13 ₩2,090,383.03
₩22,773,690.45 ₩28,301,673.30 ₩34,767,413.67 ₩38,420,454.02
₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00
₩5,211,632.46 ₩5,906,107.10 ₩6,275,701.47 ₩7,230,836.54
₩14,004.48 ₩15,404.93 ₩16,945.42 ₩18,639.96
₩9,265,828.94 ₩9,961,704.03 ₩10,332,838.89 ₩11,289,668.50
₩108,883.34 ₩205,128.83 ₩318,076.43 ₩375,335.63
₩9,374,712.28 ₩10,166,832.86 ₩10,650,915.32 ₩11,665,004.13
₩32,148,402.73 ₩38,468,506.16 ₩45,418,328.99 ₩50,085,458.15
G Display Corporation
recasted Balance Sheet
the years 2012 to 2015
(In Korean Won)
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2011 2012 2013 2014 2015
Cash flow from operations 3,194,944.46 7,727,153.66 8,568,777.45 8,720,917.20 8,659,665.76
Interest Expense after tax 93,511.25 116,714.17 11,039.95 108,893.85 114,023.69
Investment in Fixed Capital (256,308.02) (3,267,927.26) (2,450,945.44) (1,879,058.17) (1,033,481.99)
FCFF 3,032,147.69 4,575,940.57 6,128,871.96 6,950,752.88 7,740,207.46
WACC 8.64% 8.57% 8.73% 8.90% 8.90%
growth -7% -4% 7% 1% 9%
Firm Size ₩18,886,517.74 ₩37,721,487.60 ₩377,224,681.51 ₩86,684,027.57 ₩2,279,588,870.95
Free Cashflow to the firm 3,032,147.69 4,575,940.57 6,128,871.96 6,950,752.88 7,740,207.46
Interest Expense after tax (93,511.25) (116,714.17) (11,039.95) (108,893.85) (114,023.69)
Net Borrowing 674,367.46 912,378.08 1,153,860.25 1,345,631.54 1,397,843.36
FCFE 3,613,003.90 5,371,604.49 7,271,692.26 8,187,490.57 9,024,027.13
Equity Value (201,346.10) 412,949.49 1,073,373.51 1,183,390.38 2,019,926.94
Long Term Debt 8.00% 8.00% 8.00% 8.00% 8.00%
LTD issuance 2012 9.00% 9.00% 9.00% 9.00%
LTD issuance 2013 11.00% 11.00% 11.00%
LTD issuance 2014 12.25% 12.25%
Common Stock 10.00% 10.00% 10.00% 10.00% 10.00%
Long Term Debt after tax 7.20% 7.20% 7.20% 7.20% 7.20%
LTD issuance 2012 after tax 8.10% 8.10% 8.10% 8.10%
LTD issuance 2013 after tax 9.90% 9.90% 9.90%
LTD issuance 2014 after tax 11.03% 11.03%
WACC 8.64% 8.57% 8.73% 8.90% 8.90%
Market Value of Equity ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00 ₩4,040,192.00
Market Value of Debt ₩3,814,350.00 ₩3,814,350.00 ₩3,814,350.00 ₩3,814,350.00 ₩3,814,350.00
Market Value of Debt issuance 2012 ₩1,144,305.00 ₩1,144,305.00 ₩1,144,305.00 ₩1,144,305.00
Market Value of Debt issuance 2013 ₩1,239,663.75 ₩1,239,663.75 ₩1,239,663.75
Market Value of Debt issuance 2014 ₩805,781.44 ₩805,781.44
Total ₩7,854,542.00 ₩8,998,847.00 ₩10,238,510.75 ₩11,044,292.19 ₩11,044,292.19
MV E 51% 45% 39% 37% 37%
MV D 49% 42% 37% 35% 35%
MV D 2012 13% 11% 10% 10%
MV D 2013 12% 11% 11%
MV D 2014 7% 7%
Market Risk Premium 7.20% 7.27% 7.34% 7.42% 7.49%
5 year Treasury Bond 6.00% 6.00% 6.00% 6.00% 6.00%
Beta (LPL) 1.35 1.54 1.3 1.27 1.28
Market Return 13.20% 13.27% 13.34% 13.42% 13.49%
Required Return 15.72% 17.20% 15.55% 15.42% 15.59%
Required Return
Free Cashflow to the Firm Valuation
PRORATION OF DEBT AND EQUITY
WEIGHTED AVERAGE COST OF CAPITAL (WACC)
Effective Tax Rate 10%
Free Cashflow to the Equity Valuation
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2011 2012 2013 2014 2015
Sales 21,810,992.64 26,344,789.80 24,533,220.34 26,887,370.87 28,153,998.71
Sales growth 0.8549 1.2079 0.9312 1.0960 1.0471
Share/Share 6.0956 7.3627 6.8564 7.5143 7.8683 EBITDA/share 0.30 0.37 0.69 0.75 0.94
Depreciation/share 0.9043 1.0275 1.2272 1.3785 1.4803
EBIT/share (0.5996) (0.6593) (0.5416) (0.6271) (0.5361)
Total Asset/Share 7.1205 8.9846 10.7509 12.6932 13.9976
Debt-Total Asset 4.2262 6.3646 7.9096 9.7166 10.7375
Interest Expense/share 0.3381 0.5092 0.6328 0.7773 0.8590
EBT/share (0.9377) (1.1685) (1.1744) (1.4044) (1.3951)
Tax rate at 10% (0.0938) (0.1168) (0.1174) (0.1404) (0.1395)
Estimate EPS (1.0314) (1.2853) (1.2918) (1.5448) (1.5346)
Common shares
3,578,157
2011 2012 2013 2014 2015
Current EPS (t-1) -0.97 -1.031424157 -1.285349217 -1.291809718 -1.544846153
Current Stock Price(Won 20050 21319.64365 26568.30083 26701.84005 31932.12925
Current P/E ratio -20670.10309 -20670.10309 -20670.10309 -20670.10309 -20670.10309
Current Stock Price 13.02 21319.64365 26568.30083 26701.84005 31932.12925
Projected EPS -1.031424157 -1.285349217 -1.291809718 -1.544846153 -1.534568457
Projected Stock Price 21,319.64₩ 26,568.30₩ 26,701.84₩ 31,932.13₩ 31,719.69₩
LG Display Corporation
Stock Price Valuation
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