Good morning, and good afternoon. Thank you for joining LG Electronics earnings release conference call for the third quarter of 2022. This conference call will start with a presentation on the earnings results, followed by a Q&A session, at which time if you wish to ask a question, you will need to press star and one on your telephone. I would now like to hand the conference over to the first speaker.
Good afternoon. My name is Sang bo Sim from Investor Relations. Thank you for joining LG Electronics earnings release conference call for the third quarter of 2022. With me are representatives of each business management division, Mr. Kim I-kueon from Home Appliance & Air Solution, Mr. Jung Hee Lee from Home Entertainment, Mr. Jinyong Kim from Vehicle Component Solutions, Mr. Choong Hyun Park from Business Solutions. We are also joined by Mr. Sang Ho Park from Global Business Management Group, Mr. Hyungyu Lee from Finance Division, and Mr. Hong-Su Lee from Accounting Division.
Please note that all statements we'll be making today regarding the financial results of the third quarter are subject to change in accordance with the result of the external review. I would also like to remind you that uncertainties in the market and changes in strategies may cause our results to be different from the outlooks and forward-looking statements made today. Today, I will outline the overall performance results of the third quarter of 2022 and the outlook for the fourth quarter. After that, each division will take turns to deliver its business results and outlook. Now let me start with the consolidated financial results of the third quarter of 2022 and the outlook for the fourth quarter.
Consolidated sales of the third quarter was KRW 21.2 trillion , and operating profit was KRW 746.6 billion. Despite declining consumer sentiment due to intensified inflationary pressures and impact from weak demand for durable goods, sales grew year-on-year on the back of increased product sales centered around B2B and new appliances and significant top-line growth in vehicle components. Though profit decreased for appliance and TV due to rising marketing costs in response to intensified competition brought on by slowing demand, operating profit grew year-on-year thanks to the vehicle component business maintaining profitability. I will now briefly review the third quarter performance of each business. H&A recorded KRW 7.5 trillion in sales, KRW 228.3 billion in operating profit, and 3.1% in profitability.
HE recorded KRW 3.7 trillion in sales and KRW 55.4 billion in operating loss. BS recorded KRW 2.3 trillion in sales, KRW 96.1 billion in operating profit, and 4.1% in profitability. VS recorded KRW 1.4 trillion in sales and KRW 14.4 billion in operating loss. Each business will later share its respective business results and outlook in detail. Let's move on to the profit and loss and cash flow of the third quarter. In terms of profit and loss, reflecting financial income and expense, equity method gain and loss, other non-operating income and expense, corporate income tax, and income and loss from discontinued operations, we posted KRW 336.5 billion in net income. Next, on cash flow.
Q3 cash flow from operating activities was KRW 998.9 billion, and cash flow from investment activities was KRW -835.6 billion, resulting in net cash flow of KRW 437.7 billion. When reflecting cash flow from financial activities of KRW 647.1 billion, cash balance at the end of Q3 came to stand at KRW 7.6 trillion, a KRW 1.1 trillion increase from the previous quarter. Next is the key financial position and indicators for the third quarter of 2022. As of the end of the third quarter, assets stood at KRW 61.3 trillion, liability at KRW 36.4 trillion, and equity at KRW 24.9 trillion.
In terms of leverage ratios regarding liability to equity, debt to equity, and net debt to equity, we continue to maintain a healthy financial condition. Now the outlook for the fourth quarter. In terms of the business environment, there are rising concerns of a possible global economic recession stemming from declining consumer sentiment due to inflation and interest rate hikes, the persisting Russia-Ukraine conflict, energy crisis in Europe, and economic slowdown. Amidst this environment, we will secure growth momentum by adopting new business models, including software platforms, and prepare for potential risk in business operations by adjusting channel inventory and boosting operation efficiency. Our fourth quarter revenue is projected to maintain growth momentum year on year on the back of top-line growth in appliances and vehicle components. We will strengthen efforts to secure profitability through preemptive risk management.
Now let's move on to the third quarter results and fourth quarter outlook by business. We will start with H&A.
Let me share the third quarter results of H&A. We recorded sales of KRW 7.5 trillion, up 6% year-on-year, led by a turnaround to growth in Korea and continued growth in overseas markets. Though enhanced revenue acted as an upside factor for profitability, operating profit decreased year-on-year due to rising logistics cost burdens and costs entailed by intense market competition. Next is the outlook for the fourth quarter.
Appliance demand is expected to weaken further, and subsequently, competition to secure the upper hand in the market is expected to intensify. Amid this environment, along with efforts for top line growth by expanding presence in the volume zone, we will seek to secure profitability by increasing selling prices, especially for premium products, improving cost structures and taking cost reduction measures.
I will share the third quarter results of H&A. Sales declined year on year, impacted by the decrease in global TV demand and weakened consumer sentiment in Europe due to the prolonged Russia-Ukraine conflict. Despite improved material cost, thanks to panel price drops, operating profit decreased year on year due to declining revenue and increased marketing spending to address intensifying competition. Now let me share the outlook for the fourth quarter.
In the market, amid persistent risk of a global recession due to inflation and energy supply disruption, competition in the market is projected to further intensify because of weak demand. Accordingly, we will secure a competitive position in the market by expanding sales of premium products such as OLED TVs and make efforts to secure profitability through sound management of channel inventory and efficient marketing spending. Let me share the third quarter results of VS. Sales grew year-on-year to stand at KRW 2.3 trillion, thanks to OEM production increases following easing of the chip shortage and effective supply chain management. We continue to be profitable on the back of revenue growth and ongoing improvements in cost structure. Next, the outlook for the fourth quarter.
Amid continued easing of the semiconductor shortage and normalization of OEM productions, macroeconomic risks also continue to exist in the market, such as weak consumer sentiment attributable to inflation. Through collaboration with automotive OEMs and component suppliers, we will actively respond to rising demand. Moreover, we will reinforce global supply chain management and continuously improve cost structure to maintain top line growth and profitability. I will share the third quarter results of BS. Q3 sales increased year-over-year, led by recovering demand in the B2B market, including information display, but decreased against the previous quarter, impacted by slowing demand in IT. Operating profit decreased year-over-year because of rising marketing costs attributable to weak demand and intensified competition and increased cost burden brought on by the strong dollar. Now let me share the outlook for the fourth quarter.
IT demand is expected to decline, centered around advanced markets such as North America and Europe, as the risk of a global economic slowdown remains. That said, the B2B market, mainly Information Display, is projected to continue on a growth trajectory. We will continue to actively secure new B2B projects centered on hotel TVs and Digital Signage, but also drive efficiency in operations with regard to inventory and resource management in preparation for worsening market conditions. That brings us to the end of the third quarter earnings release and outlook for the fourth quarter. We will now take questions. Operator, please commence with the Q&A session.
Now Q&A session will begin. Please press star one if you have any questions. Questions will be taken according to the order you have pressed star and number one. For cancellation, please press star two on your phone. The first question will be presented by Matt Shin from Bank of America. Please go ahead with your question.
두 번째는 H&A 사업부인데 상당히 이 어려운 상황에서도 계속 이익을 내주시고 상당히 좋은 것 같은데 단기적으로 봤을 때 특히 한국이든 미국이든 유통 채널을 저희들이 랜덤하게 체크해 보면 재고가 좀 많은 것 같습니다. 그만큼 Sell-through가 좀 리스크가 커지고 있는데 그거에 따른 우리의 또 현재의 재고 수준을 어떻게 파악하고 계시고, 즉 LG전자가 갖고 계시는 재고와 유통업체들이 갖고 있는 LG전자 제품의 재고 수준이 어느 정도인지 과거 평균 대비, 그리고 그에 따른 또 리스크 관리 또는 혹시라도 기회가 있는지 설명해 주시면 감사하겠습니다.
Thank you for taking my question. This is Matt Shin from Bank of America. I have two questions. My first question is about corporate wide operation. As everybody is aware, the global economy is witnessing various macro issues, and we are under a big confusion at the moment. Even though we have enjoyed good performance and market situation during the past three years, I believe that big changes will come right ahead. I would like to ask how big you think the risks are at the moment. For example, do you believe the current situation is as serious as the situation that we witnessed during the Lehman Brothers crisis or the foreign exchange crisis back in history? When do you think we can overcome such situation?
When will we be able to see some recovery in revenue and sales in home appliances and TVs? I know that this is very difficult to make projections. However, I would like to ask for your thoughts on this week. My second question is about home appliances. I believe that the current situation is very difficult, but still you are seeing profit at the moment. Taking a look at the short term, I believe many core retailers in the U.S. and Korea are having like quite large amount of channel inventory. I would like to ask for the inventory level for both LG Electronics and your distributors compared to the average years and how you are planning to manage the risk and what kind of opportunities you see through this.
질문 감사드립니다. 먼저 경기 침체에 대해서 여쭤보셨는데요. 사실 경기 침체에 영향을 주는 여러 가지 Factor들이 많기 때문에 경기 침체 depth를 현재 시점에서 단정적으로 얘기하기는 어렵지만, 하나 확실한 거는 제가 아까 서두에서 말씀드린 것처럼 러시아, 우크라이나 사태가 지금 장기화되고 있고, 그다음에 Global Inflation은 계속적으로 심화되고 있는 상태고, 이에 따른 소비자 심리 둔화로 영향이 많기 때문에 사업 환경의 불확실성은 아마도 당분간은 지속될 걸로 그렇게 지금 인지하고 있습니다.
Thank you for your question. First, you have asked about the economic recession that we are witnessing, and there are various factors, I know, it is very difficult to determine the depth and elaborate further. Furthermore, what I can say for sure is that as I have covered in my presentation, we predict the uncertainty in the business environment to continue for now due to the prolonged conflict between Russia and Ukraine and worsening consumer sentiment stemming from deepened global inflation.
가전하고 TV 시장의 Turnaround 아니면 개선점에 대해서도 먼저 말씀을 해주셨는데요. 먼저 가전 쪽으로 먼저 말씀을 드리면 저희가 이제 견조한 수요를 유지하고 있는 Premium 가전은 계속적으로 경쟁력을 계속으로 강화할 예정이고요. TV 시장에서도 이제 제품 기술력 우위를 바탕으로 마찬가지로 경쟁력을 계속 강화하면서 또 하나 그 회복세를 보이고 있는 자동차 부품 시장의 수요에도 적극 대응해서 계속해서 매출 성장 모멘텀을 확보해 나가고자 합니다.
To further answer your question about the current status of home appliances TVs, I would like to tell you more starting from home appliances. We have strong position in the premium market and premium appliances. Based on our superior market strength, we would like to further strengthen our position in the market. We are seeing recovery in the vehicle component business and we would like to further continue such momentum.
수익성 같은 경우에는 Premium 제품 중심으로 판가 인상으로 원가 부담을 완화하고, 앞에서 말씀드린 것처럼 선행적 리스크 관리 및 원가 구조 개선을 계속해서 추진해서 수익성 확보를 위한 노력을 계속해서 지속해 나가도록 하겠습니다.
To elaborate more on profitability, our plan is to ease cost burden by raising our selling price of the premium lineup. Also, as mentioned, we will continue devoting efforts to secure profitability through enhancing cost structure and taking proactive risk management measures.
그리고 마지막으로 언론사에서 많이 접하신 것처럼 성장 잠재력이 큰 Software Platform 기반의 광고 Content 사업 등 추가적인 수익 모델을 계속적으로 확보해서 수익원 확보에 주력해 나갈 계획입니다. 이상입니다.
Lastly, as you have been a witness throughout the media, our plan is to focus on securing additional profit-making models with great growth potential, such as expanding advertising and content business based on software platform. Thank you.
네, H&A 답변 드리겠습니다. 저희 그 H&A 본부 재고 운영 관련해서는 저희 자사하고 유통의 그 세분화된 구간별 재고 현황 점검을 통해서 적정 수준으로 현재 운영 중에 있다고 말씀드릴 수 있고요. 수요 둔화 및 그 불확실성 등을 사전에 감지해서 리스크를 반영한 판매 계획을 수립하고 있고, 매출을 지원하는 물동 흐름 관리 체계를 진행하고 있습니다.
To the second part of your question on H&A, we're currently maintaining an appropriate inventory level as we check by section for our own inventory and general inventory. By identifying demand slowdown or uncertainty in advance, we factor all the potential risks into our sales plan reset. Additionally, we also proactively manage our PSI, which supports our revenues.
말씀하신 당사의 9월 말 재고 수준을 보면 전체 재고는 미래 구간의 판매를 봐서 약간 좀 많습니다마는, 유통 재고 수준은 보통 한 5조 정도의 재고를 보유하는 게 정상적이라고 봅니다. 근데 현재 9월 말로 보면 평년 수준과 비교하여도 건전한 적정 수준으로 관리되고 있다 말씀드릴 수 있겠습니다.
Yes, it's true. The overall inventory amount is a bit considerable. However, it's normal that we normally have about KRW 5 trillion of general inventory. As of the end of September, we have also managed a sound level of general inventory when compared to previous years.
향후 재고 운영 전략에 대해서 간략히 말씀드리면, 현재 팬데믹에서 엔데믹으로 전환과 글로벌 경제 위기로 인한 수요 감소 대응을 위해서 과거의 경험을 기반으로 정교한 물동 관리와 비효율 재고 최소화 운영을 통해 재고 건전성을 확보하고 있으며, 사업 전략을 지원하는 지역 제품별 차별화된 유연한 재고 운영을 통해 분기 단위별 목표를 수립하고 효율적으로 자원을 운영해 나갈 예정입니다. 이상입니다.
On our future inventory operation strategy to respond to the pandemic to endemic shift in combination with demand declines driven by the global economic crisis, we're going to establish quarterly goals to efficiently operate our resources by way of ensuring sound inventory levels in conjunction with sophisticated inventory management and minimum inefficient inventory based on our past experience and flexibly operating our own inventory, thereby differentiating for each region and product to support business strategies. Thank you.
네, 다음 질문 부탁드리겠습니다.
Next question, please.
다음으로 질문해 주실 분은 KB증권의 김동원 님입니다.
The next question will be presented by Dongwon Kim from KB Securities. Please go ahead with your question.
질문기에 감사드립니다. 저는 H&A와 BS 본부에 질문드리겠습니다. 글로벌 TV 수요 둔화로 유통 채널의 재고 조정과 디스플레이 패널 출하 감소가 지속될 것으로 보입니다. 이에 대한 우리 회사의 대응 방안이 있으시면 공유 부탁드립니다. 다음은 태양광 사업 종료 이후에 BS 본부의 포트폴리오와 사업 전략에 어떤 변화를 기대할 수 있는지 말씀 부탁드립니다. 감사합니다.
Thank you for taking my questions. I have two questions, and my first one is about Home Entertainment. Due to the slowdown in TV market demand, it is expected for retailers to adjust inventory level and display companies to lower its production volume. What are your plans to respond to such circumstances? My second question is about Business Solutions. What is the business portfolio strategy of the BS company after exiting the solar panel business?
네, H&A 본부에서 답변드리도록 하겠습니다. 이미 이 분기부터 알고 계시는 바와 같이 글로벌 TV 시장 수요가 감소로 TV 제조사와 유통업체들의 재고가 증가한 건 사실입니다. 이에 당사 또한 1분기부터 출하량 조정을 통해 유통 재고 리스크를 최소화하기 위해서 노력을 지속하고 있으며, 9월 말 현재 기준으로 보면 유통 재고와 사사 재고가 전년 동기 대비 봤을 때 건전한 재고 수준으로 유지되고 있다고 판단되어집니다.
I would like to answer your question about Home Entertainment. As you have seen from the second quarter of this year, due to the global TV market demand drop, TV manufacturers and retailers have seen an increase in their inventory level. The company has also put in effort to minimize channel inventory risk by adjusting the shipment levels from the first quarter. As of late September, our inventory level remains relatively sound Y-O-Y.
하지만 현재 디스플레이 업계의 출하량 감소 등처럼 수요 둔화로 인해 패널 공급 과잉 상황이 발생하여서 추가적인 가격 하락 방지 및 수익성 방어를 위해서 디스플레이 업체들의 출하량 조정도 계속될 것으로 전망됩니다.
However, at a time when panel supply is exceeding demand due to a slowdown in demand, it is expected for display companies to adjust their shipment volume in order to prevent additional price dip and to protect their profitability. However, the oversupply of panels will continue for a while unless the overall industry adjusts the LCD production capacity. Therefore, we would like to optimize the inventory level and panel supply through precise demand forecasting, and we are currently making actions. Thank you. I would like to answer your question about Business Solutions. VS Company's business portfolio consists of information technology, including monitors and PCs, Information Display like commercial display and hotel TVs, together with commercial robot business. Our business strategy that is being implemented focuses on nurturing B2B solution business from the IT business sector.
In addition, the company would like to continue expanding our solution business that provides products and services to customers in each vertical by developing robots and EV charging business as part of the new portfolio. In terms of IT business, LG Electronics would like to continuously provide products that satisfy the high-end market needs with our outstanding gaming monitors and Gram laptops. We would like to expand our capability from our strong B2C to B2B area. Thank you. Next question, please.
The next question will be presented by Ji-San Kim from Kiwoom Securities. Please go ahead with your question.
Thanks for taking my questions. It's a twofold question on H&A and VS respectively. First, on H&A, there have been improvements to logistics and raw material costs despite slowing global home appliance demand due to weak consumption sentiment led by inflation. Can you give us H&A Company's revenues and profitability guidance for Q4 and the 2023 year, given all that? And then secondly, what is your outlook on VS Company's revenues and profitability for Q4 and the 2023 year? Your Q3 profitability was better than expected. Do you think you could continue to secure and improve profitability? Let me start with the first part on H&A. Although logistics and raw material costs have fallen in the back half of the year relative to the first half, raw material costs are still a burden when compared to the previous year.
Additionally, logistics costs seem unlikely to fall by year-end when we are to renew our contracts, since we have usually done long-term contracts. However, when the effects of renewed contracts materializes in 2023 and our cost competitiveness improves like further drops of raw material costs, and as we increase premium product ASP and target the volume zone to achieve solid revenue growth, we expect to further improve our profitability of the appliance business. Thank you.
Let me answer your question on VS. We have had positive profits in Q3 following Q2, despite component supply issues for OEMs and some components cost increases. For Q4 as well, we aim to have positive operating as we continue to improve profitability. In Q4, we will continuously drive a high growth of revenues and achieve positive operating profit margins.
Going into 2023 by further improving cost factors and achieving high revenues in addition to rising vehicle components demand and mass production kicking off for new projects, we expect to be on track to secure profits. Thank you.
Next question, please.
The next question will be presented by Kang-ho Park from Daishin Securities. Please go ahead with your question.
Thanks for taking my questions. I have two questions on H&A and VS respectively. First on H&A. Now, there are concerns over the home appliance business. Are you going to continue to increase prices of premium appliances into 2023 as well? And can you please elaborate on the backgrounds of your increasing ASP well into 2023? And then secondly, how do you see the revenue proportion trends per region and customer? You have seen great revenue, high revenues in Q3 as well. If possible, can you please elaborate on it?
Let me take the first part of H&A's pricing strategy. As the demand for high-end premium products is solid despite declining demand trends, we are to continue our strategy in expanding premium products with lower demand volatility well into 2023.
By scaling up the premium appliance segment where we have a competitive edge, we expect to continuously roll out new products with new technology mounted to lead the market and further ramp up our own premium strategy going forward. As for pricing strategy, we always calculate spend-worthiness figures considering diverse factors, including markets, demands, and inventory. We plan to continuously increase ASP of products, especially premium ones, within proper ranges given what's happening in the markets. In regards to what products in what regions will increase the ASP, we will consider spend-worthiness when setting prices of newly launched products with new or upgraded features or designs as we always do.
Let me answer your question on VS. VS company does business with various global OEMs. North America and Europe take up over 60% of the total infotainment revenues, and we have also worked to expand the size of the business with Korean and Japanese companies. While NA customers still take up a large share of the total in the EV components business, with the inception of the LG Magna e-Powertrain, we expect orders and revenues from European OEMs to expand.
Thank you. Next question, please.
The next question will be presented by Sung-yul Kwon from DB Financial Investment. Please go ahead with your question.
I have two questions. My first question is about Home Entertainment. At a time when we are witnessing an increase in market demand, I believe that your company may have great impact. I would like to ask the OLED TV sales quantity of the second half of this year and the entire year 2022, and if possible, the figures for 2023 together. My second question is to corporate-wide operations. I believe that liquidity is found in the market, and cash managing is very important. Under such circumstances, do you have any changes in the overall CapEx compared to the plan established earlier this year? It would be also very appreciated if you can share the mid- to long-term investment plan of each business.
I would like your answer to the question about Home Entertainment. As mentioned earlier, we have seen a decrease in TV market demand, not only in OLED TVs, but the TV market as a whole, and especially we have seen a decrease in the European market. Well, the demand drop was what we have witnessed by the third quarter of this year. If I may elaborate furthermore on the demand of the peak season in the fourth quarter, there are some risk factors that may bring down purchasing power due to various global economic issues. However, there are also opportunities such as the World Cup at the same time. Therefore, we believe that we will be able to see some recovery in major distribution channels through marketing and promotions.
Especially just as the sales success that we had witnessed in major channels in the fourth quarter of last year, we are expecting sales growth, especially in OLED TVs, led by the World Cup and Black Friday promotions. In terms of the European TV market especially, we have seen negative growth in demand until August, with a 7% drop in sales volume due to macroeconomic issues, including geopolitical risk in Russia and Ukraine, weak euro and inflation. However, we're expecting sales quantity to grow by approximately 5% in the fourth quarter with our aggressive sales plans per channels, coupled with peak sales season. We are being well prepared for this. Well, this is the case in this year and next year altogether. We are preparing to bring new model to the market.
Especially, we are planning to bring lifestyle screens such as Easel, Posé, Flex to the market this year so that we can see a slight increase in the market sales in the second half of this year together, and together with next year. Thank you.
I would like to answer your question in regards to CapEx investment. The company's investment in capital expenditure this year will be made without witnessing big changes compared to the plan established, like, earlier this year, following principle to invest within the EBITDA amount. If I may elaborate on each business' mid- to long-term investment plan, the company is investing in expanding existing businesses, advancing and intellectualizing the manufacturing sector and realizing digital transformation. As a result, we will continue to make best practice such as lights-out factory in Changwon.
Together with making investment that can advance our business portfolio and discover new business sector, we would like to put in our best efforts in minimizing unnecessary investments and making investment more efficient, so that the company can respond to global economic recession and slowdown in demand, and eventually can well manage the financial soundness.
Next question, please.
The next question will be presented by Jason Sung Kim from Daiwa Capital Markets. Please go ahead with your question.
Thanks for taking my questions. I have two questions on VS Vehicle component Solutions company and BS respectively. First, on VS, your Q3 performance was really great. Can you give us more color on backlogs across the VS company and for each of the main businesses, namely Infotainment, LG Magna e-Powertrain, and ZKW? And by year, by end of year 2022, how do you expect your backlogs and proportions of each main business? And the other thing is around B2B demands. I believe the company's B2B demand can remain strong compared to that of B2C amidst economic slowdown. How do you see the demand trends?
Yeah. Let me start with the first part on VS. Our backlogs were initially expected to be around KRW 65 trillion, but we now expect to have over KRW 80 trillion towards the end of the year, supported by new orders and exchange rate effects, and so on in Q3 to Q4. As of now, infotainment takes up around 60% of the total backlogs. EV components mid-20% and automotive lamp the rest. On the back of the high growth of the EV markets and LG Magna JV joint venture effects, we expect the EV components business to take up a larger share of backlog in the future. Thank you.
I would like to answer your question about Business Solutions. As you just covered, the overall B2B demand remains relatively stable compared to B2C. We have witnessed higher demand in the first half of this year as governments and corporates started to make actual investments that were postponed and downsized during the pandemic. Starting from the second half, the global economic recession became worsened, hence demand of government and corporate vertical is not rising as expected.
However, hospitality, including hotels and education vertical demand, are showing relatively strong growth. In a nutshell, the overall demand outlook of B2B has decreased compared to our forecast estimate. However, the overall demand will be on the rise. Lastly, adding more about the company's outlook, the B2B performance is remaining sound based on the sound demand, and we are expecting high revenues. Therefore, I can say that the profitability is remaining sound at the moment. Thank you.
Next question, please.
The next question will be presented by Jong Jin Park from JP Morgan. Please go ahead with your question.
I have two questions. My first question is about corporate-wide operations. Currently, the dollar is remaining strong compared to the Korean won, and how does this impact your sales and OI? My second question is about Home Entertainment. You mentioned that TV sales will go up by 5% in the fourth quarter. Do you think this is because of the World Cup effect, or do you have any other reasons behind such a growth?
네, 환율 영향에 대해서 말씀드리겠습니다. 당사는 지역 포트폴리오가 안정적으로 운영되고 있고, 큰 폭의 환율 변동에도 외환 손익이 영향을 받지 않도록 거래 통화 매칭 등 뉴트럴 헷지를 통해서 외화 자산과 부채 균형을 유지하고 있기 때문에, 걱정하시는 환율 변동에 대한 영향은 매우 제한적이라고 이렇게 말씀드릴 수 있겠습니다. 이상입니다.
I would like to answer your question about the exchange rate. The company is running stable regional portfolio operations. In addition, we are taking natural hedging methods such as currency matching in order to mitigate exchange risk despite foreign exchange rate fluctuation. As per, we are well striking the balance between foreign currency assets and liability. Therefore, the foreign exchange rate fluctuation has very limited impact on the corporate-wide performance. Thank you.
H&A 본부에서 말씀드리겠습니다. 질의하셨던 월드컵 특수와 관련돼서는 이미 4분기에 성수기와 함께 몰리면서 추가적인 수요 개선 효과는 있다고 보고 있습니다. 다만 그 규모가 과거 수준에 대비해서는 좀 제한적이라고 저희들은 판단하고 있고요. 지역별로 보게 되면 성장 시장 중심으로는 특히 브라질 같은 경우에는 정부에서 Economic Stimulus Package라는 프로그램 등을 시행함에 따라 월드컵 기간에 TV 판매 확대를 추진하고 있어 좀 긍정적인 영향을 미칠 것으로 보고 있습니다. 그리고 중화 시장에서도 최초로 중화 지역에서 월드컵이 개최되다 보니까 지역 내 관심도가 증가되고 있어서 중화 지역도 추가적인 수요 요인이 기대되고 있고요. 마지막으로는 유럽인데, 유럽은 제가 말씀드린 오프로는 그냥 예측 기간에서 전체적인 성수기를 맞이해 예측을 하고 있다고 말씀드린 거고, 우리 내부, 사내에서는 유럽도 경제 상황은 안 좋지만 기본적으로 겨울에 열리고 있고, 다른 활동보다는 실내에서 TV를 즐길 수 있는 시간적 여유가 많지 않나.
월드컵에 추가적 수요가 있을 것으로 저희들이 보고 있고, 그에 따른 마케팅 활동을 추진하고 있습니다. 이상입니다.
I would like to answer your question about Home Entertainment. As you have mentioned, we are expecting World Cup effects, and the figure that I have mentioned, 5%, is mentioned by the market analysis ahead of the peak. I believe that we will be able to see additional enhancement in the fourth quarter along with the peak season. We believe that this sort of increase will be limited compared to past levels. If I may move on to the regional sales, taking a look at the developing market, the Brazilian government is planning to implement an economic stimulus package that can bring positive breeze to TV sales during the World Cup.
The company is also expecting higher demand in Middle East Asia markets, driven by greater interest toward the event as the World Cup is taking place in the region for the first time in history. As mentioned, the 5% figure came from market analysis ahead of the peak. Despite the worsened economic situation in Europe, we believe there will be additional demand as the World Cup is going to take place during the winter season, and people may enjoy the event indoors, and we are implementing marketing measures accordingly. Thank you.
네, 다음 질문 부탁드리겠습니다.
Next question, please.
현재 질문을 요청하신 분이 없습니다. 질문을 하실 분은 전화기 버튼의 별표와 일 번을 눌러주시기 바랍니다.
Currently, there are no participants with questions. Please press star one, star and one to give your question.
추가적인 질문하실 분 계시면 질문 부탁드리겠습니다.
Any further question?
현재 질문을 요청하신 분이 없습니다. 질문을 요청하실 때까지 잠시 기다리겠습니다.
Once again, currently there are no participants with questions. We will wait for a second until there is another question.
네, 추가적인 질문이 없는 것 같습니다. 그럼 이상으로 2022년 3분기 LG전자 실적 발표 컨퍼런스 콜을 마치도록 하겠습니다. 이 시간 이후 추가적인 질문이 있으신 분은 저희 LG전자 IR팀으로 연락을 주시면 자세한 설명을 드리도록 하겠습니다. 참석해 주셔서 감사합니다.
If there's no further question, this brings us to the end of LG Electronics earnings release conference call for the third quarter of 2022. For further questions, please contact the IR Team. Thank you.