LG Innotek Releases 2022 3rd Quarter Earnings Report

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Oct 27, 2022, 06:14 ET

Sales of KRW 5,387.4 billion and operating profit of KRW 444.8 billion in the 3rd quarter
- Sales increased by 41.9% and operating profit increased by 32.5% from the same period of the last year.
High-performance camera modules and semiconductor substrates led the sales of Smartphone components
Sales in all product groups of electric components such as the communication module and power for electric vehicles increased

SEOUL, South Korea, Oct. 27, 2022 /PRNewswire/ -- LG Innotek (CEO Jeong Cheol-dong) achieved sales of KRW 5,387.4 billion and operating profit of KRW 444.8 billion in the third quarter of 2022 according to the Korea International Financial Reporting Standards (K-IFRS). Sales and operating profit increased by 41.9% and 32.5% respectively from the same period of the last year. Compared to the previous quarter, the company's sales increased by 45.5%, and profits increased by 53.4%. *As of Oct. 27, KRW 1,000 is $0.71.

The company representative stated that "We officially initiated the mass production for the new model on our customer, and the supply of the high-performance camera module for Smartphones was expanded to lead the increase in sales," and added, "Along with semiconductor substrates for 5G communication, all products groups in the electric components such as the vehicle communication module and power for electric vehicles expanded in sales to support the increase."

Performance by Business Units

Optics Solution Business recorded sales of KRW 4,439.5 billion, a 48% increase from the same period of the last year. Supply for the new model on the customer was initiated in full-scale to increase in sales centrally on the high value added products such as the multiple camera module for Smartphones and 3D sensing module, etc. The sales compared to the previous quarter was increased by 58%.

Substrate & Material Business recorded sales of KRW 435.6 billion, a 3% increase from the same period of the last year. Due to the supply for the new model on the customer was expanded to lead the increase in the sales of semiconductor substrates for 5G communication. Meanwhile, display components including the tape substrate and photomask suffered due to the decrease in demand from the front industries including TV/IT products, etc. The sales compared to the previous quarter was decreased by 4%.

Automotive Components Business recorded sales of KRW 380.8 billion, a 48% increase from the same period of the last year and a 15% increase from the quarter prior. As the demand from the front industries increased and expanded in the demand for electric vehicles/autonomous driving vehicles, the sales from all product groups including the vehicle communication module and power for electric vehicles were increased to lead the continuous sales growth for 5 consecutive quarters.

Moreover, LG Innotek succeeded in improving the profitability through elitism of product/customer structure, reinforcement of global SCM capabilities, and development centrally on the platform model (universal products for minimizing the need for customizing).

2022 3rd Quarter Earnings by LG Innotek

(Unit: KRW 100 million)
Classification	2022.3Q	2021.3Q	Increase Compared to Same Period in the Previous Year	2022.2Q	Increase Compared to the Previous Quarter
Sales	53,874	37,976	41.9 %	37,026	45.5 %
Operating profit	4,448	3,357	32.5 %	2,899	53.4 %

* The table above shows tentative consolidated sales performance in accordance with K-IFRS.

About LG Innotek Co.,Ltd.

LG Innotek is a cutting-edge materials and components manufacturer and an affiliate of the LG group. The company's business units include core components for mobile, automotive, display, semiconductor, and IoT products. Furthermore, the company has cooperated closely with the mobile devices, home appliances, and automotive companies, producing camera modules, automotive electronic components, wireless communication modules, and substrate materials.

LG Innotek is headquartered in Seoul, Korea and its sales subsidiaries are located in Germany, USA, Mainland China, Japan, and Taiwan with production subsidiaries in Mainland China, Vietnam, Indonesia, Mexico, and Poland. For more information, please refer to the website: www.lginnotek.com

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