Overview Our results of operations are affected principally by overall market conditions, our manufacturing productivity and costs, and our product mix. Market Conditions The display industry in which we operate is affected by market conditions that are often outside the control of individual manufacturers. Our results of operations might fluctuate significantly from period to period due to market factors, such as seasonal variations in consumer demand, global economic conditions, external factors that impact the supply chain, surges in production capacity by competitors and changes in technology. Over the past decade, the display industry has been undergoing a transition from TFT-LCD panels to alternative display panels based on newer technologies, primarily OLED panels. While TFT-LCD panels account for a majority of the products supplied in the overall display industry, OLED technology is widely seen in the display industry as the successor technology to TFT-LCD technology and has continually gained wider market acceptance for use in display panels over the past decade. With respect to the TFT-LCD industry, sales volume decreased from 2,706 million units in 2012 to 2,526 million units in 2025, and market revenue decreased from US$92 billion to US$81 billion during the same period according to OMDIA. With respect to the OLED industry, sales volume significantly increased from 188 million units in 2012 to 1,063 million units in 2025, and market revenue also significantly increased from US$7 billion to US$52 billion during the same period, also according to OMDIA. Currently, small-sized panels for use in mobile devices such as smartphones make up the bulk of the OLED panel market, accounting for approximately 83% of industry revenue from global sales of OLED panels in 2025. While the OLED market has historically been significantly smaller than the TFT-LCD market, we believe that the market has been evolving steadily as OLED panels have continued to achieve broader adoption across a wider range of applications and sizes, supported by technological advances and improvements in manufacturing efficiency. We have been engaged in the development and commercialization of OLED technology for over a decade and have accumulated experience in the mass production of OLED panels across various product categories. In recent years, we have significantly expanded our investment and production capabilities to support the commercialization of OLED panels at scale. For example, in August 2021, we announced plans to make investments in an aggregate amount of up to W3.3 trillion in a new fabrication complex in Paju, Korea, P10, which will be used for the production of small- and medium-sized OLED panels. We completed the construction of our AP5 fabrication facility located within such complex in February 2024, and have subsequently commenced mass production of medium-sized OLED panels at such facility. In June 2025, we announced plans to invest approximately W1.3 trillion in next-generation OLED technologies and infrastructure, primarily at our fabrication complex in Paju, Korea, and such investment is currently in progress. In addition, on April 22, 2026, we announced plans to make investments in an aggregate amount of W1.1 trillion in new facilities for the purpose of enhancing our technological competitiveness and strengthening our basis for growth through the advancement of OLED technologies, with an expected completion date of June 30, 2028. At the same time, we have been strategically reducing the production level of our TFT-LCD panels, including through the disposal of our equity interest in our Chinese subsidiaries engaged in the manufacturing of TFT-LCD panels and modules for televisions. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. See “Risk Factors — Risks Relating to Our Industry — A global economic downturn may result in reduced demand for our products and adversely affect our profitability.” While the display industry has shown periods of rapid growth in the past, it has also experienced business cycles with significant and rapid price declines from time to time. Historically, display panel manufacturers have increased display area fabrication capacity rapidly at times. Capacity expansion occurs especially rapidly when several manufacturers ramp-up new factories at the same time. Recently, Chinese display panel manufacturers have been increasingly making capital investments in OLED technology, especially with respect to small- and mid-sized OLED display panels. For example, BOE, China’s largest display panel manufacturer, has continued to make capital investments aimed at expanding its OLED production capabilities across multiple manufacturing facilities in China, including in Chengdu and other regions. Moreover, Samsung Display, one of our primary competitors based in Korea, has been making significant capital investments in a new OLED manufacturing facility in Asan, Korea. During periods of surges in the rate of supply growth, our customers are able to exert downward pricing pressure, leading to sharp declines in average selling prices and significant fluctuations in our gross margin. In addition, regardless of relative capacity expansion, we expect average selling prices of our existing products to decline as the cost of manufacturing declines due to technology advances and component cost reductions. Conversely, 41 Table of Contents constraints in the industry supply chain or increased demand for new technology products have led to increased prices for display panels in some past periods. According to OMDIA, the display industry for panels that are nine inches or larger expanded in 2025 compared to 2024, with total market revenue increasing from approximately US$71 billion in 2024 to US$72 billion in 2025. The average selling price of those panels decreased during the same period by approximately 4% from approximately US$80 in 2024 to US$76 in 2025. Moreover, according to OMDIA, the display industry for panels that are smaller than nine inches contracted in 2025 compared to 2024, with total market revenue decreasing from US$65 billion in 2024 to US$63 billion in 2025. The average selling price of those panels decreased during the same period by approximately 3% from approximately US$23 in 2024 to US$22 in 2025. We believe that these decreases in the average selling prices of display panels were partly attributable to intensified competition in the display panel industry. We strive to mitigate the effect of industry cyclicality and the resulting price fluctuations by planning capacity expansions and capacity allocations, or shifting our product mix, to capture premium prices in specific emerging, high-end product categories. As part of our strategy, we have been proceeding with additional investments to secure future technological competitiveness through timely development of new OLED technologies and related infrastructure, as well as upgrading and converting existing facilities and production lines to produce differentiated specialty display panels that command higher premiums. See “Item 4.D. Property, Plants and Equipment—Capital Expenditures.” In addition, we are vigorously pursuing our strategy to develop differentiated specialty products and technologies that better address our customers’ needs, thereby delivering greater value to our customers. In many cases, these efforts go hand-in-hand with our efforts to develop products based on new technologies that allow us to realize greater premiums. For example, we have allocated significant resources to the development and production of specialized OLED panels for televisions and commercial displays (such as our next-generation “META” display panels (which apply advanced technologies to offer brighter and more stable images), transparent OLED display panels as well as OLED display panels for gaming monitors), display panels utilizing Ultra HD technology, low power consumption and AH-IPS technology for various IT products and televisions and plastic OLED technology for smartphones, automotive products and wearable devices. In particular, we have deployed, and are continuing to deploy, significant resources into plastic OLED panels for mobile and other products and auto products, as well as medium-sized OLED panels for IT products, to further expand our market presence and maintain our early competitive edge in such market. Another key aspect of our strategy is to foster close cooperation with our customers and build on our strategic relationships with many of our key suppliers. Success of a new product depends on, among other things, working closely with our customers to gain insights into their product needs and to understand general trends in the market. At the same time, we often work with our equipment suppliers to design equipment that can enhance the efficiency of our production processes for such new products. Uncertainties in the global economy have increased in recent years, with global financial and capital markets experiencing substantial volatility. In particular, the COVID-19 pandemic that began in late 2019 and rapid increases in interest rates globally starting in the second half of 2021 to combat inflation have materially and adversely affected the global economy and financial markets. Such uncertainties have been, and continue to be, exacerbated by, among other things, a deterioration in economic and trade relations between the United States and its trading partners (including as a result of the imposition of significant tariffs by the United States on its trading partners) which has been followed by retaliatory tariffs in some cases, escalations in trade protectionism globally, Russia’s invasion of Ukraine and ensuing sanctions against Russia, the slowdown of economic growth in China and other major emerging market economies, adverse economic and political conditions in Europe and Latin America and continuing geopolitical and social instability in North Korea and various parts of the Middle East, including the military conflicts between Iran and other countries, including the United States and Israel. See “Item 3.D. Risk Factors—Risks Relating to Our Industry—A global economic downturn may result in reduced demand for our products and adversely affect our profitability” and “Item 3.D. Risk Factors—Risks Relating to Our Company—Earthquakes, tsunamis, floods, severe health epidemics and other natural calamities could materially adversely affect our business, results of operations or financial condition.” We cannot provide any assurance that demand for our products can increase or be sustained at current levels in future periods, or that the demand for our products will not decrease in the future due to such economic downturns, which may adversely affect our profitability. Manufacturing Productivity and Costs We seek to continually enhance our manufacturing productivity and thereby reduce the cost of producing each panel. Over the years, we have expanded our production capacity by investing in fabrication facilities that can process 42 Table of Contents larger-size glass substrates, which allows us to improve manufacturing efficiency and produce more panels and a variety of display sizes to accommodate evolving business and consumer demands. The following table shows the input substrate size, initial design capacity and year-end input capacity as a result of ramp-up for each of our fabrication facilities as of the dates indicated: Primary Input Substrates Size Year-end Input Capacity(1) Facility (in millimeters) 2023 2024 2025 (in thousands of input substrates per month) AP3 1,500 x 1,850 29 37 37 AP4 1,500 x 1,850 45 47 47 AP5 1,500 x 1,850 N/A (3) 17 15 OP1 2,200 x 2,500 39 58 35 P62(2) 1,500 x 1,850 N/A (3) N/A (3) N/A (3) P8 2,200 x 2,500 102 103 86 P9 2,200 x 2,500 70 70 69 CA(4) 2,200 x 2,500 114 190 N/A (3) CO 2,200 x 2,500 65 75 91 (1)Year-end input capacity is the total input substrates for the month that had the highest monthly input substrates during the fiscal year. (2)We ceased production at, and closed, the P62 fabrication facility in June 2023. (3)N/A means not applicable. (4)In September 2024, we entered into an agreement with TCL CSOT to dispose of our entire equity interest in LG Display (China) Co., Ltd., the company that owned and operated our CA fabrication facility. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. Our cash outflows for capital expenditures amounted to W3,483 billion in 2023, W2,130 billion in 2024 and W1,348 billion (US$933 million) in 2025. Such capital expenditures related mainly to our investments in production facilities for medium-sized and plastic OLED panels and our ongoing efforts to secure future technological competitiveness through timely development of new OLED technologies and related infrastructure. Capital expenditures were also incurred for the acquisition of new equipment during the same period. Our depreciation expense as a percentage of revenue decreased from 17.0% in 2023 to 16.2% in 2024 and to 14.1% in 2025. Such decrease in 2025 compared to 2024 was a result of a relatively larger decrease in our depreciation expense compared to the decrease in our revenue. We currently expect that, in 2026, our total capital expenditures on a cash out basis will be higher compared to 2025 and will be used primarily to continue to fund our previously announced investments related to our continued and ongoing transition to an OLED-centric business structure, as well as other essential recurring investments. Such expected capital expenditures are subject to periodic assessment, and we cannot provide any assurance that such expected capital expenditures may not change materially after assessment. Since our inception, we have designed our fabrication facilities in-house and co-developed most equipment sets with our suppliers. These efforts have enabled us to gain valuable experience in designing and operating next-generation fabrication facilities capable of processing increasingly larger-size glass substrates. We have been able to leverage this experience to achieve and maintain high production output and yields at our fabrication facilities, thereby lowering costs. In addition, in recent years, we have substituted a portion of our equipment purchased from overseas vendors with purchases from local vendors to diversify our supply source and reduce costs. We also continue to make various process improvements at our fabrication facilities, including enhancing the performance of process equipment, efficiency of material flows and quality of process and product designs. Such process improvements result in increased unit output of our fabrication facilities without significant capital investment, thus enabling us to reduce fixed costs on a per panel basis. In addition, in commencing mass production of large-sized OLED products, we have made modifications to certain of our existing TFT-LCD production lines to convert them into OLED panel production lines. Because our large-sized OLED panels employ oxide TFT backplane technology, which can be produced using manufacturing processes similar to the processes used to manufacture TFT-LCD panels, relatively little modification has been necessary, thereby reducing the costs of additional investments needed for the conversion of our production lines. The size of our OLED manufacturing operations has also expanded considerably in recent years, enabling us to benefit from economies of scale. Raw materials comprise the largest component of our costs. We monitor the prices at which we can procure raw materials from suppliers and to the extent overseas suppliers are able to provide raw materials at competitive prices, we have diversified our supplier base by procuring raw materials from such overseas suppliers. We have also been able to leverage our scale and leading industry position to obtain competitive prices from our suppliers. 43 Table of Contents Our cost reduction efforts in recent years also include our decision to substantially reduce the production of TFT-LCD panels in Korea and China in light of the continued overcapacity in the global TFT-LCD market and capital investments by other suppliers, particularly from China. Between 2022 and 2023, we closed certain TFT-LCD fabrication facilities, including P5 (where we had produced TFT-LCD panels for notebook computers and mobile and other products), P7 (where we had produced TFT-LCD panels for televisions) and P62 (where we had produced TFT-LCD panels for notebook computers and desktop monitors), in light of our continued efforts to increase the proportion of OLED panels in our product mix and the production capacity for such panels and further reduce our production level of TFT-LCD panels, which we believe to be relatively more sensitive to market conditions and generally allow for fewer opportunities for product differentiation. In September 2024, as part of our efforts to accelerate the ongoing shift in our strategic direction to focus on OLED panels, we entered into an agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries, which engaged in TFT-LCD panel manufacturing and TFT-LCD module manufacturing for televisions, for approximately W2.2 trillion. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. Assets and liabilities relating to such subsidiaries were accounted for as assets and liabilities held for sale in our consolidated statements of financial position as of December 31, 2024. See Note 1(c) of the notes to our financial statements for further discussion. In addition, we launched a voluntary retirement program in late 2023 for our manufacturing personnel in Korea, in late 2024 for our non-manufacturing personnel and in late 2025 for both manufacturing and non-manufacturing personnel, in each case to optimize the size of our workforce, partly in connection with the reduced production of TFT-LCD panels as mentioned above. More recently, in February 2026, to further improve our overall operational efficiency and upgrade our business structure by outsourcing the in-house production of automotive display TFT-LCD modules, we entered into an agreement with Top Run Total Solution to transfer the automotive display TFT-LCD module business of LG Display Nanjing Co., Ltd., which transfer is expected to be completed in July 2026. The above factors play significant roles in our efforts to manage our cost of sales per square meter of net display area, which is derived by dividing total costs of sales by total square meters of net display area shipped. Our cost of sales per square meter of net display area increased by 33.7% in 2025 compared to 2024, mainly due to changes in our product mix following the discontinuation of our TFT-LCD television panel production upon the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025. As shipments of large-sized TFT-LCD television panels, which generally have a lower cost of sales per square meter, decreased significantly, and shipments of smaller-sized OLED panels, which require more expensive raw materials and are generally more costly to manufacture, accounted for a greater proportion of our products in 2025, our cost of sales per square meter of net display area increased. The increase was also partly attributable to the continued overall depreciation of the Korean Won against the U.S. dollar, in which a significant portion of our purchases of raw materials and components are denominated, during 2025. Our cost of sales per square meter of net display area decreased by 10.5% in 2024 compared to 2023, mainly due to the increased production efficiency of our manufacturing processes and our implementation of various cost reduction measures, which were partially offset by an overall depreciation of the Korean won against the U.S. dollar during 2024. Product Mix Our product mix reflects our strategic capacity allocation among various product markets, and is continually reviewed and adjusted based on the demand for, and our assessment of the profitability of, display panels in different markets and size categories. In recent years, we believe market demand has been shaped by a shift toward differentiated specialty products based on newer technologies, including OLED technology, especially in the display panel markets for Ultra HD televisions as well as various types of IT products and mobile and other products. In response to such market trends, we have increased our production capacity and sales of OLED panels, which accounted for 61% of our revenue in 2025, and have also developed and commercialized differentiated specialty products for a variety of applications. For example, with respect to our television display panel product portfolio, the proportion of sales of our television panels equipped with OLED technology increased between 2023 and 2025, and we have introduced various new products utilizing our differentiated technologies and features, such as Ultra HD and our next-generation “META” technologies, as well as large-sized display panels for gaming OLED monitors (which are included in our television display panel segment) featuring high resolutions, rapid response times, fast refresh rates, curved designs and other advanced performance features, in recent years. In addition, with respect to our IT products, we have expanded our product portfolio to offer desktop panels with Full HD and higher resolutions in a variety of screen aspect ratios and form factors. In recent years, we have also introduced and expanded our product offerings of panels for IT products utilizing OLED technology as well as AH-IPS technology with increasingly higher resolution and other features, and panels for smartphones, automotive products and wearable devices utilizing plastic OLED technology. 44 Table of Contents As part of our continued efforts to increase the proportion of OLED panels in our product mix, we have been reducing the production level of less profitable types of TFT-LCD panels in recent years, including by disposing of our entire equity interest in our Chinese subsidiaries engaged in the manufacturing of TFT-LCD panels and modules for televisions. Following the completion of the sale, these entities were excluded from the scope of our consolidated subsidiaries effective April 1, 2025. Additionally, we have been closing some of our fabrication facilities in Korea, where we had previously produced TFT-LCD panels, as described above. The following table sets forth our revenue by product category for the years indicated and revenue in each product category as a percentage of our total revenue: Year ended December 31, 2023 2024 2025 Sales % Sales % Sales Sales (1) % Panels for: (in billions of Won and millions of US$, except for percentages) Televisions W 4,331 20.3 % W 5,973 22.4 % W 4,791 US$ 3,317 18.6 % IT Products(2) 7,853 36.8 9,420 35.4 9,509 6,583 36.8 Mobile and other products(3) 7,071 33.1 8,782 33.0 9,132 6,321 35.4 Auto Products 1,999 9.4 2,281 8.6 2,136 1,479 8.3 Sales of goods W 21,254 99.6 % W 26,456 99.4 % W 25,568 US$ 17,700 99.1 % Royalties and others 77 0.4 159 0.6 242 167 0.9 Revenue W 21,331 100.0 % W 26,615 100.0 % W 25,810 US$ 17,867 100.0 % (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. (2)Comprises notebook computers, desktop monitors and tablet computers. (3)Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems and medical diagnostic equipment. The following table sets forth our sales volume by product category for the years indicated and as a percentage of our total panels sold: Year ended December 31, 2023 2024 2025 Panels for Number of Panels % Number of Panels % Number of Panels % (in thousands, except for percentages) Televisions 13,932 7.2 % 20,512 9.1 % 10,498 4.7 % IT Products(1) 78,176 40.2 81,554 36.1 78,571 35.5 Mobile and other products(2) 84,855 43.6 103,803 46.0 113,826 51.6 Auto Products 17,414 9.0 19,745 8.8 18,153 8.2 Total 194,377 100.0 % 225,614 100.0 % 221,048 100.0 % (1)Comprises notebook computers, desktop monitors and tablet computers. (2)Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems and medical diagnostic equipment. Average Selling Prices Our product mix has an impact on our average selling prices. In addition to business cycles, industry-wide supply and demand balances and other market- or industry-wide variables, our product cost and price vary with the product display area, as well as the technology and specification of such product. Therefore, the average selling price of our products can vary over time as a result of business cycles and the choices we make in capacity allocation for specific products. The overall average selling price of our display panels can fluctuate significantly. Our average selling price per panel, which is derived by dividing total sales of goods by the total number of panels sold, increased by 7.3% from W109 thousand in 2023 to W117 thousand in 2024, but slightly decreased by 0.9% to W116 thousand (US$80) in 2025. 45 Table of Contents In 2024 compared to 2023, our average selling price increased mainly due to increases in the average selling price for certain IT products applying our tandem OLED technology, which allows for higher resolutions with lower power consumption and longer lifespan, and to a lesser extent, mobile and other products. Such increases were primarily attributable to our continued strategic focus to increase the proportion of high-end and differentiated products in our product mix as well as the overall depreciation of the Korean won against the U.S. dollar during 2024, in which substantially all of our sales are denominated. The impact of such increases was partially offset by a decrease in the average selling price for television products, which in turn was mainly due to continued weak demand in the overall television market, amid continued economic volatility and uncertainty globally. In 2025 compared to 2024, our average selling price decreased slightly, mainly due to changes in our product mix following the discontinuation of our TFT-LCD television panel production as discussed above. As we discontinued production of TFT-LCD television panels and increased the proportion of panels for mobile and other applications, which are typically smaller in size and generally sold at a lower price per panel compared to panels for televisions, IT and automotive products, our average selling price decreased. The decrease was also partly attributable to a decline in the average selling price for mobile and other applications, which primarily reflected changes in product mix within the mobile and other applications segment, including a higher proportion of panels with comparatively lower average selling prices, as well as continued pricing pressure in certain end markets. The impact of such changes was offset in part by a significant increase in the average selling price of television panel products, which was mainly attributable to our continued efforts to focus on and increase sales of higher-priced OLED television panels, as well as increases in the average selling prices of IT and automotive panel products, primarily reflecting a higher proportion of higher-end and differentiated products in these product segments and the overall depreciation of the Korean won against the U.S. dollar during 2025, in which substantially all of our sales are denominated. The following table sets forth our average selling price per panel by markets for the years indicated: Average Selling Price(1) Year ended December 31, 2023 2024 2025(2) (in thousands, except for US$) Televisions W 311 W 291 W 456 US$ 316 IT Products(3) 100 116 121 84 Mobile and other products (4) 83 85 80 55 Auto Products 115 116 118 82 All panels 109 117 116 80 (1)Average selling price for each market represents revenue per market divided by unit sales per market. (2)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. (3)Comprises notebook computers, desktop monitors and tablet computers. (4)Includes, among others, panels for mobile devices, including smartphones and other types of mobile phones, and industrial and other applications, including entertainment systems and medical diagnostic equipment. Our average revenue per square meter of net display area, which is derived by dividing our total revenue by total square meters of net display area shipped, decreased by 2.5% from W1,103 thousand in 2023 to W1,076 thousand in 2024. In 2025, our average revenue per square meter of net display area shipped significantly increased by 38.9% to W1,495 thousand (US$1,035). Recent Accounting Changes For a discussion of new standards, interpretations and amendments to existing standards that have been published, see Note 3 of the notes to our financial statements. 46 Table of Contents Operating Results The following presents our consolidated results of operation information and as a percentage of our revenue for the years indicated: Year ended December 31, 2023 % 2024 % 2025 2025(1) % (in billions of Won and in millions of US$, except for percentages) Revenue W 21,331 100.0 % W 26,615 100.0 % W 25,810 US$ 17,867 100.0 % Cost of sales (20,986 ) 98.4 (24,040 ) 90.3 (22,434 ) (15,530 ) 86.9 Gross profit 345 1.6 2,575 9.7 3,376 2,337 13.1 Selling expenses (576 ) 2.7 (585 ) 2.2 (481 ) (333 ) 1.9 Administrative expenses (900 ) 4.2 (1,104 ) 4.1 (968 ) (670 ) 3.8 Research and development expenses (1,380 ) 6.5 (1,448 ) 5.4 (1,411 ) (977 ) 5.5 Other income 1,472 6.9 2,100 7.9 2,596 1,797 10.1 Other expenses (1,786 ) 8.4 (2,798 ) 10.5 (2,039 ) (1,412 ) 7.9 Finance income 1,122 5.3 883 3.3 578 400 2.2 Finance costs (1,635 ) 7.7 (1,822 ) 6.8 (1,153 ) (798 ) 4.5 Equity in income (loss) of equity accounted investees, net (3 ) 0.0 5 0.0 2 1 0.0 Profit (Loss) before income tax (3,339 ) (15.7 ) (2,192 ) (8.2 ) 502 348 1.9 Income tax benefit (expense) 763 3.6 (218 ) 0.8 (198 ) (137 ) 0.8 Profit (Loss) for the year (2,577 ) (12.1 ) (2,409 ) (9.1 ) 304 210 1.2 (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. Comparison of 2025 to 2024 Revenue Our revenue decreased by 3.0% from W26,615 billion in 2024 to W25,810 billion (US$17,867 million) in 2025. The decrease in revenue resulted from decreases in revenue derived from sales of panels for televisions and auto products, which were in turn mainly due to decreases in the number of panels sold in both categories, offset in part by increases in revenue derived from sales of panels for mobile and other products and IT products. Revenue attributable to sales of panels for televisions decreased by 19.8% from W5,973 billion in 2024 to W4,791 billion (US$3,317 million) in 2025, resulting from a significant decrease in the number of units sold of panels in this category in 2025 compared to 2024, which was partially offset by a significant increase in the average selling price of panels in this category in 2025 compared to 2024. The total unit sales of panels for televisions decreased by 48.8% from 20.5 million panels in 2024 to 10.5 million panels in 2025, whereas the average selling price of panels in this category increased by 56.7% from W291 thousand in 2024 to W456 thousand (US$316) in 2025. The decrease in the sales volume of panels for televisions was mainly attributable to the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025 as part of the continued implementation of our strategy to phase out the production of TFT-LCD television panels. The increase in the average selling price of panels for televisions was mainly due to an increase in the proportion of OLED television panels, which generally command higher selling prices than TFT-LCD television panels, in our product mix as we phased out the production of TFT-LCD television panels as described above, as well as the depreciation of the Korean Won against the U.S. dollar during 2025. Revenue attributable to sales of panels for auto products decreased by 6.4% from W2,281 billion in 2024 to W2,136 billion (US$1,479 million) in 2025, resulting from a decrease in the number of units sold of panels in this category in 2025 compared to 2024, which was partially offset by an increase in the average selling price of panels in this category in 2025 compared to 2024. The total unit sales of panels for auto products decreased by 7.6% from 19.7 million panels in 2024 to 18.2 million panels in 2025, whereas the average selling price of panels in this category increased slightly by 1.7% from W116 thousand in 2024 to W118 thousand (US$82) in 2025. The decrease in the sales volume of panels for auto products was attributable to a decrease in orders from certain global automotive downstream customers, reflecting reduced electric vehicle sales by those customers amid reductions in government subsidies in certain major countries and intensifying competition from Chinese downstream manufacturers in the electric vehicle market. The slight increase in the average selling price of our panels for auto products was mainly due to a higher proportion of differentiated automotive display products with specialty features and newer technologies in our product mix, as well as the depreciation of the Korean Won against the U.S. dollar during 2025, as discussed above. 47 Table of Contents Revenue attributable to sales of panels for mobile and other products increased by 4.0% from W8,782 billion in 2024 to W9,132 billion (US$6,321 million) in 2025, resulting from an increase in the number of units sold of panels in this category in 2025 compared to 2024, which was partially offset by a decrease in the average selling price of panels in this category in 2025 compared to 2024. The total unit sales of panels for mobile and other products increased by 9.6% from 103.8 million in 2024 to 113.8 million in 2025, whereas the average selling price of panels in this category decreased by 5.9% from W85 thousand in 2024 to W80 thousand (US$55) in 2025. The increase in the sales volume of panels for mobile and other products was primarily attributable to our timely development of new panels and our achievement of increased stability in the mass production of our panels in this category, which together strengthened our collaboration with our end-brand customers. The decrease in the average selling price of panels in this category was mainly due to changes in our product mix within this segment and increased price competition among suppliers in the market for smartphone display panels, particularly in China, partially offset by the depreciation of the Korean Won against the U.S. dollar during 2025. Revenue attributable to sales of panels for IT products slightly increased by 0.9% from W9,420 billion in 2024 to W9,509 billion (US$6,583 million) in 2025, resulting from an increase in the average selling price of panels in this category in 2025 compared to 2024, which was partially offset by a decrease in the number of units sold of panels in this category in 2025 compared to 2024. The average selling price of panels for IT products increased by 4.3% from W116 thousand in 2024 to W121 thousand (US$84) in 2025, whereas the total unit sales of panels in this category decreased by 3.7% from 81.6 million panels in 2024 to 78.6 million panels in 2025. The increase in the average selling price of our panels for IT products was mainly attributable to the depreciation of the Korean Won against the U.S. dollar during 2025, as discussed above, as well as changes in product mix, including an increased proportion of OLED panels and higher-end products and our continued efforts to improve profitability by discontinuing or reducing the production level of lower-margin models. The decrease in the sales volume of panels for IT products was mainly attributable to the discontinuation, or reduction in the production volume, of such lower-margin models as part of our profitability-focused business strategy. In addition, our revenue attributable to royalty and others increased by 52.2% from W159 billion in 2024 to W242 billion (US$167 million) in 2025. The increase was primarily attributable to a significant increase in royalty revenue, mainly relating to our display equipment technology, as well as an increase in other revenue, consisting primarily of sales of sample products and certain raw materials and components. Cost of Sales Cost of sales decreased by 6.7% from W24,040 billion in 2024 to W22,434 billion (US$15,530 million) in 2025. The decrease in our cost of sales in 2025 compared to 2024 was attributable primarily to a decrease in raw materials and component costs mainly relating to a decrease in the number of panels sold in 2025 compared to 2024, partially offset by an increase in the proportion of products with differentiated specialty features and newer technologies that require higher-cost raw materials and components in our product mix. In addition, decreases in depreciation and overhead costs, resulting mainly from certain large-sized and small- to medium-sized OLED production facilities becoming fully depreciated and, to a lesser extent, the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025, which removed the depreciable asset base and personnel associated with such operations, contributed to the decrease in cost of sales in 2025 compared to 2024. As a percentage of our total cost of sales, raw materials and component costs, labor costs, overhead costs, depreciation and amortization costs and change in inventory costs constituted 56.7%, 10.8%, 13.7%, 17.2% and 1.7%, respectively, in 2024 and 57.6%, 11.1%, 12.7%, 15.6% and 2.9%, respectively, in 2025. As a percentage of revenue, cost of sales decreased from 90.3% in 2024 to 86.9% in 2025. The decrease in our cost of sales as a percentage of revenue in 2025 compared to 2024 was attributable mainly to our continued cost reduction efforts and activities seeking to optimize our cost structure, as well as increasing the proportion of higher value-added products with higher margins in our product mix. Cost of sales per square meter of net display area, which is derived by dividing total cost of sales by total square meters of net display area shipped, increased by 33.7% from W972 thousand in 2024 to W1,299 thousand (US$899) in 2025. Cost of sales per panel sold, which is derived by dividing total cost of sales by total number of panels sold, decreased by 4.8% from W107 thousand in 2024 to W101 thousand (US$70) in 2025. Such changes were due mainly to decreases in the proportion of our large-sized television and IT panels, which generally have higher cost of sales per panel, but lower cost of sales per square meter of net display area, relative to our small- and medium-sized panels primarily in the mobile and others product category, sold in our product mix during the same period. 48 Table of Contents Gross Profit and Gross Margin Mainly as a result of our continued cost reduction efforts and activities seeking to optimize our cost structure, including the impact of the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025, which outpaced the decrease in our revenue, our gross profit increased by 31.1% from W2,575 billion in 2024 to W3,376 billion (US$2,337 million) in 2025. Our gross margin increased from 9.7% to 13.1% over the same period primarily as a result of such cost reduction efforts and cost structure optimization activities, as well as changes in our product mix toward a higher proportion of OLED and other higher value-added products, including high-end TFT-LCD IT products, that generally carry higher margins. Selling and Administrative Expenses Selling and administrative expenses decreased by 14.2% from W1,688 billion in 2024 to W1,449 billion (US$1,003 million) in 2025. As a percentage of revenue, our selling and administrative expenses decreased from 6.3% in 2024 to 5.6% in 2025. The decrease in selling and administrative expenses in 2025 compared to 2024 was attributable to a decrease in depreciation and amortization expenses, resulting mainly from the discontinuation of our TFT-LCD television panel production following the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025, a decrease in warranty expenses, primarily reflecting improved product quality in panels equipped with newer technologies (including OLED), and a decrease in shipping expenses, primarily attributable to a decrease in the volume of panels we sold. The following are the major components of our selling and administrative expenses for each of the years in the two-year period ended December 31, 2025: Year ended December 31, 2024 2025(1) (in billions of Won and millions of US$) Salaries W 580 W 542 US$ 375 Expenses related to defined benefit plans 23 26 18 Other employee benefits 84 79 55 Shipping 119 77 53 Fees and commissions 246 229 159 Depreciation 266 222 154 Taxes and dues 63 31 21 Advertising 67 62 43 Warranty 114 71 49 Insurance 14 12 8 Travel 13 12 8 Training 9 8 6 Others 90 78 54 Total W 1,688 W 1,449 US$ 1,003 (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025 as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. Research and Development Expenses Research and development expenses decreased by 2.6% from W1,448 billion in 2024 to W1,411 billion (US$977 million) in 2025. As a percentage of revenue, our research and development expenses slightly increased from 5.4% in 2024 to 5.5% in 2025. The research and development expenses in 2025 were incurred mainly in relation to research and development activities related to OLED and next generation technologies and products. Other Income (Expense), Net Other income includes primarily foreign currency gain, gain on disposal of assets held for sale and gain on disposal of property, plant and equipment, and other expenses include primarily foreign currency loss, impairment loss on property, plant and equipment, loss on disposal of property, plant and equipment, and impairment loss on intangible assets. We recognized total net other income of W557 billion (US$385 million) in 2025 compared to total net other expense of W698 49 Table of Contents billion in 2024. Such change was mainly attributable to a gain on disposal of assets held for sale of W759 billion (US$525 million) in 2025 compared to no such gain in 2024, primarily due to the gain recognized in connection with the sale of the China TFT-LCD Television Panel Subsidiaries in April 2025. See Note 20 of the notes to our financial statements. Such change was also attributable to a net foreign currency gain of W6 billion (US$4 million) in 2025 compared to a net foreign currency loss of W507 billion in 2024, reflecting the weakening of the Korean Won against the U.S. dollar in 2025 compared to 2024. Such changes were partially offset by an increase in net impairment loss on property, plant and equipment from W94 billion in 2024 to W159 billion (US$110 million) in 2025, primarily due to an increase in impairment loss associated with our construction-in-progress costs, mainly relating to certain production facilities and related assets. Finance Income (Costs), Net Our total net finance costs decreased by 38.9% from W939 billion in 2024 to W574 billion (US$397 million) in 2025. Such decrease was mainly attributable to a net foreign currency gain of W58 billion (US$40 million) in 2025 compared to a net foreign currency loss of W486 billion in 2024, primarily due to an overall depreciation of the Korean Won against major foreign currencies and higher exchange rate volatility in 2025 compared to 2024, and a 22.7% decrease in interest expense from W910 billion in 2024 to W703 billion (US$487 million) in 2025, which was mainly due to a decrease in the average amount of our long-term borrowings outstanding as well as decreases in market interest rates in 2025 compared to 2024. Such effects were offset in part by a net loss on valuation of derivatives of W123 billion (US$85 million) in 2025 compared to a net gain on valuation of derivatives of W139 billion in 2024, which change was also primarily attributable to an overall depreciation of the Korean Won against the U.S. dollar and higher exchange rate volatility in 2025 compared to 2024. Against such fluctuations, we also recognized net gains on transaction of derivatives of W274 billion in 2024 and W162 billion (US$112 million) in 2025. Income Tax Benefit (Expense) Our income tax expense decreased by 9.2% from W218 billion in 2024 to W198 billion (US$137 million) in 2025, primarily reflecting a decrease in unrecognized deferred tax assets of W273 billion (US$189 million) in 2025 compared to an increase in unrecognized deferred tax assets of W704 billion in 2024, which related to variations in our estimates of tax loss carryforwards and tax credit carryforwards that are deemed to be not realizable based on our estimates of future taxable profit. The effect of such change was partially offset by our recording of profit before income tax of W502 billion (US$348 million) in 2025 compared to loss before income tax of W2,192 billion in 2024, resulting in income tax expense using the statutory tax rate of each country in which we pay income tax of W80 billion (US$55 million) in 2025 compared to income tax benefit of W527 billion in 2024, as well as a significant increase in the expenses attributable to the effect on change in tax rate from W55 billion in 2024 to W338 billion (US$234 million) in 2025, which mainly reflected a decrease in deferred tax assets resulting from the extension of certain tax incentive brackets in Korea, which lowered the applicable effective tax rate for such brackets. Our effective tax rate was 39.4% in 2025, whereas our effective tax rate was not calculated in 2024 due to the loss before income tax we recorded in such year. See Notes 22 and 23 of the notes to our financial statements. Profit (Loss) for the Year As a result of the cumulative effect of the reasons explained above, we recorded a loss for the year of W2,409 billion in 2024 but recorded a profit for the year of W304 billion (US$210 million) in 2025. Our loss for the year as a percentage of revenue was (9.1)% in 2024 and our profit for the year as a percentage of revenue was 1.2% in 2025. Comparison of 2024 to 2023 Revenue Our revenue increased by 24.8% from W21,331 billion in 2023 to W26,615 billion in 2024. The increase in revenue resulted from increases in revenue derived from sales of panels for mobile and other devices, televisions, IT products and auto products, which were in turn mainly due to an increase in the number of panels sold in each of these categories and increases in the average selling price of panels for IT products, mobile and other products and auto products. Revenue attributable to sales of panels for mobile and other products increased by 24.2% from W7,071 billion in 2023 to W8,782 billion in 2024, resulting primarily from an increase in the number of units sold of panels in this category in 2024 compared to 2023, accompanied by an increase in the average selling price of panels in this category in 2024 compared to 2023. The total unit sales of panels for mobile and other products increased by 22.3% from 84.9 million in 2023 to 103.8 million in 2024, and the average selling price of panels in this category increased by 2.4% from W83 thousand in 2023 to 50 Table of Contents W85 thousand in 2024. The increase in the sales volume of panels for mobile and other products was primarily attributable to our timely development of new panels and our achievement of increased stability in the mass production of our panels in this category, which together strengthened our collaboration with our end-brand customers. The increase in the average selling price of panels in this category was mainly due to the depreciation of the Korean Won against the U.S. dollar during 2024, which was partially offset by increased price competition among suppliers in the market for smartphone display panels. Revenue attributable to sales of panels for televisions increased by 37.9% from W4,331 billion in 2023 to W5,973 billion in 2024, resulting from a significant increase in the number of units sold of panels in this category in 2024 compared to 2023, which was partially offset by a decrease in the average selling price of panels in this category in 2024 compared to 2023. The total unit sales of panels for televisions increased by 47.5% from 13.9 million panels in 2023 to 20.5 million panels in 2024, whereas the average selling price of panels in this category decreased by 6.4% from W311 thousand in 2023 to W291 thousand in 2024. The increase in the sales volume of panels for televisions was mainly attributable to an increase in the sales volume of our large-sized OLED panels in the premium television market, primarily reflecting our continued strategic focus to increase the proportion of high-end OLED television panels while decreasing the proportion of TFT-LCD television panels in our product mix. The decrease in the average selling price of television panels was mainly attributable to the continued weak demand in the overall television market, due in part to the continued economic volatility and uncertainty globally, which more than offset the positive effects of the depreciation of the Korean Won against the U.S. dollar on average selling price during 2024. Revenue attributable to sales of panels for IT products increased by 20.0% from W7,853 billion in 2023 to W9,420 billion in 2024, resulting primarily from an increase in the average selling price of panels in this category in 2024 compared to 2023, accompanied by an increase in the number of units sold of panels in this category in 2024 compared to 2023. The average selling price of panels in this category increased by 16.0% from W100 thousand in 2023 to W116 thousand in 2024, and the total unit sales of panels for IT products increased by 4.4% from 78.2 million panels in 2023 to 81.6 million panels in 2024. The increase in the average selling price of our panels for IT products was mainly attributable to the depreciation of the Korean Won against the U.S. dollar during 2024, as discussed above, and the commencement of mass production of display panels applying tandem OLED technology, which generally command higher selling prices. The increase in the sales volume of panels for IT products was mainly attributable to the commencement of mass production of display panels applying tandem OLED technology. Revenue attributable to sales of panels for auto products increased by 14.1% from W1,999 billion in 2023 to W2,281 billion in 2024, resulting primarily from an increase in the number of units sold of panels in this category in 2024 compared to 2023, accompanied by a slight increase in the average selling price of panels in this category in 2024 compared to 2023. The total unit sales of panels for auto products increased by 13.2% from 17.4 million panels in 2023 to 19.7 million panels in 2024, and the average selling price of panels in this category increased slightly by 0.9% from W115 thousand in 2023 to W116 thousand in 2024. The increase in the sales volume of panels for auto products was attributable to our timely development of new panels and our achievement of increased stability in the mass production of our panels in this category, which together strengthened our collaboration with our end-brand customers. The slight increase in the average selling price of our panels for auto products was mainly due to our introduction and maintenance of a diverse product portfolio with differentiated specialty features and newer technologies, as well as the depreciation of the Korean Won against the U.S. dollar during 2024, as discussed above, which were largely offset by sluggish market demand for new automobiles due in part to the continued economic volatility and uncertainty globally. In addition, our revenue attributable to royalty and others increased by 106.5% from W77 billion in 2023 to W159 billion in 2024. The increase was primarily attributable to a significant increase in royalty revenue, mainly relating to our newly developed display equipment technology, as well as an increase in other revenue, consisting primarily of sales of sample products and certain raw materials and components. Cost of Sales Cost of sales increased by 14.6% from W20,986 billion in 2023 to W24,040 billion in 2024. The increase in our cost of sales in 2024 compared to 2023 was attributable primarily to an increase in raw materials and component costs mainly relating to an increase in the number of panels sold in 2024 compared to 2023, as well as the increase in the proportion of products with differentiated specialty features and newer technologies that require higher-cost raw materials and components in our product mix. In addition, an increase in overhead costs as well as an increase in depreciation costs resulting mainly from recognition of depreciation costs in respect of newly purchased machinery and equipment, contributed to the increase in cost of sales in 2024 compared to 2023. 51 Table of Contents As a percentage of our total cost of sales, raw materials and component costs, labor costs, overhead costs, depreciation and amortization costs and change in inventory costs constituted 55.1%, 12.0%, 13.8%, 16.2% and 2.9%, respectively, in 2023 and 56.7%, 10.8%, 13.7%, 17.2% and 1.7%, respectively, in 2024. As a percentage of revenue, cost of sales decreased from 98.4% in 2023 to 90.3% in 2024. The decrease in our cost of sales as a percentage of revenue in 2024 compared to 2023 was attributable mainly to our continued cost reduction efforts and activities seeking to optimize our cost structure, as well as increasing the proportion of higher value-added products with higher margins in our product mix. Cost of sales per square meter of net display area, which is derived by dividing total cost of sales by total square meters of net display area shipped, decreased by 10.5% from W1,086 thousand in 2023 to W972 thousand in 2024. Such decrease was due mainly to the higher capacity utilization rates at our production facilities in 2024 compared to 2023. Cost of sales per panel sold, which is derived by dividing total cost of sales by total number of panels sold, decreased by 1.3% from W108 thousand in 2023 to W107 thousand in 2024. Such decrease was due mainly to an increase in the proportion of our display panels for mobile and other products, which generally have lower cost of sales per panel relative to our larger panels in other product categories, sold in our product mix during the same period. Gross Profit and Gross Margin Mainly as a result of our continued cost reduction efforts and activities seeking to optimize our cost structure, which outpaced the effect of the increase in our revenue, our gross profit increased significantly from W345 billion in 2023 to W2,575 billion in 2024. Our gross margin increased from 1.6% to 9.7% over the same period primarily as a result of such cost reduction efforts and cost structure optimization activities as well as the higher capacity utilization rates at our production facilities in 2024 compared to 2023 and an increase in the average selling price of our panels in 2024 compared to 2023. High capacity utilization rates allow us to allocate fixed costs over a greater number of panels produced and thereby increase our gross margin. Selling and Administrative Expenses Selling and administrative expenses increased by 14.4% from W1,476 billion in 2023 to W1,688 billion in 2024. As a percentage of revenue, our selling and administrative expenses decreased from 6.9% in 2023 to 6.3% in 2024. The increase in selling and administrative expenses in 2024 compared to 2023 was attributable primarily to an increase in salaries, resulting mainly from a one-time retirement allowance incurred in connection with our voluntary retirement program implemented in 2024 in order to optimize our workforce and, to a much lesser extent, an increase in shipping costs, resulting mainly from an increase in our overall shipment volume (especially the volume of large-sized television product shipments) in 2024 compared to 2023. The following are the major components of our selling and administrative expenses for each of the years in the two-year period ended December 31, 2024: Year ended December 31, 2023 2024 (in billions of Won) Salaries W 373 W 580 Expenses related to defined benefit plans 25 23 Other employee benefits 87 84 Shipping 92 119 Fees and commissions 253 246 Depreciation 265 266 Taxes and dues 66 63 Advertising 76 67 Warranty 102 114 Insurance 14 14 Travel 18 13 Training 10 9 Others 95 90 Total W 1,476 W 1,688 52 Table of Contents Research and Development Expenses Research and development expenses increased by 4.9% from W1,380 billion in 2023 to W1,448 billion in 2024. As a percentage of revenue, our research and development expenses decreased from 6.5% in 2023 to 5.4% in 2024. The research and development expenses in 2024 were incurred mainly in relation to research and development activities related to OLED and next generation technologies and products. Other Income (Expense), Net Other income includes primarily foreign currency gain and gain on disposal of property, plant and equipment, and other expenses include primarily foreign currency loss, impairment loss on property, plant and equipment, loss on disposal of property, plant and equipment, and impairment loss on intangible assets. Our total net other expense increased by 122.2% from W314 billion in 2023 to W698 billion in 2024. Such increase was primarily due to an increase in net foreign currency loss from W118 billion in 2023 to W507 billion in 2024, reflecting higher exchange rate volatility in 2024 compared to 2023. Such increase was enhanced by an increase in net impairment loss on property, plant and equipment from W60 billion in 2023 to W94 billion in 2024, primarily due to an increase in impairment loss associated with our machinery and equipment, as well as an increase in net impairment loss on intangible assets from W55 billion in 2023 to W72 billion in 2024, primarily due to an increase in impairment loss associated with our development costs. Such increases were partially offset by a decrease in net loss on disposal of property, plant and equipment from W67 billion in 2023 to W25 billion in 2024, which primarily reflected a lower volume of manufacturing equipment disposed of in 2024 compared to 2023. Finance Income (Costs), Net Our total net finance costs increased by 83.3% from W512 billion in 2023 to W939 billion in 2024. Such increase was mainly attributable to a net foreign currency loss of W486 billion in 2024 compared to a net foreign currency gain of W48 billion in 2023, primarily due to higher exchange rate volatility in 2024 compared to 2023, and a 25.9% increase in interest expense from W723 billion in 2023 to W910 billion in 2024, which was mainly due to a decrease in capitalized interest in 2024 compared to 2023. Such increases were offset in part by net gain on valuation of derivatives of W139 billion in 2024 compared to net loss on valuation of derivatives of W76 billion in 2023, which change was primarily attributable to the general appreciation of the U.S. dollar against the Korean Won in 2024 and higher exchange rate volatility in 2024 compared to 2023. Against such fluctuations, we also recognized net gains on transaction of derivatives of W179 billion in 2023 and W274 billion in 2024. Income Tax Benefit (Expense) We recognized income tax expense of W218 billion in 2024 compared to income tax benefit of W763 billion in 2023, primarily due to a significant increase in unrecognized deferred tax assets, which related to tax loss carryforwards and tax credit carryforwards that are deemed to be not realizable based on our estimates of future taxable profit. We recognized an increase in unrecognized deferred tax assets of W704 billion in 2024 compared to an increase of W157 billion in 2023. The effect of such increase in 2024 was further enhanced by a 33.3% decrease in our income tax benefit using the statutory tax rate of each country in which we pay income tax from W790 billion in 2023 to W527 billion in 2024, as our loss before income tax decreased from W3,339 billion in 2023 to W2,192 billion in 2024, and a significant decrease in tax credits from W208 billion in 2023 to W23 billion in 2024, which mainly reflected a decrease in our capital expenditure level. Our effective tax rates were not calculated in 2023 and 2024 due to the loss before income tax we recorded in such years. See Notes 22 and 23 of the notes to our financial statements. Loss for the Year As a result of the cumulative effect of the reasons explained above, our loss for the year decreased by 6.5% from W2,577 billion in 2023 to W2,409 billion in 2024. Our loss for the year as a percentage of revenue was (12.1)% in 2023 and (9.1)% in 2024. Item 5.B. Liquidity and Capital Resources Our principal sources of liquidity have been net cash flows generated from our operating activities and debt financing activities. We had cash and cash equivalents of W2,258 billion, W2,022 billion and W1,572 billion (US$1,088 million) as of December 31, 2023, 2024 and 2025, respectively. 53 Table of Contents Our cash and cash equivalents was held in the following currencies as at December 31, 2025: (in billions of Won) Korean Won W 141 Chinese Yuan 150 U.S. Dollar 1,261 Other currencies 20 Total W 1,572 We also had short-term deposits in banks of W906 billion, W0.6 billion and W0.6 billion (US$0.4 million), respectively, as of December 31, 2023, 2024 and 2025. The significant decrease in short-term deposits in 2024 compared to 2023 was mainly due to a decrease in restricted cash deposits in connection with secured borrowings from our subsidiaries. Our primary use of cash historically has been to fund capital expenditures related to the expansion and improvement of our production capacity with respect to existing and newly developed products, including the construction and ramping-up of new, or in certain cases, expansion or conversion of existing, fabrication facilities and production lines and the acquisition of new equipment. We also use cash flows from operations for our working capital requirements and servicing our debt payments. We expect our cash requirements for 2026 to be primarily for repayment of maturing debt, working capital requirements and, to a lesser extent, capital expenditures. As of December 31, 2023, we had current assets of W9,503 billion and current liabilities of W13,885 billion, resulting in a working capital deficit of W4,382 billion. As of December 31, 2024, we had current assets of W10,123 billion and current liabilities of W15,859 billion, resulting in a working capital deficit of W5,736 billion. As of December 31, 2025, we had current assets of W6,982 billion (US$4,833 million) and current liabilities of W9,596 billion (US$6,643 million), resulting in a working capital deficit of W2,614 billion (US$1,810 million). The increase in working capital deficit as of December 31, 2024, compared to the working capital deficit as of December 31, 2023, was primarily attributable to our recognition of liabilities held for sale of W1,657 billion in 2024, resulting from our agreement with TCL CSOT to dispose of our entire equity interest in the China TFT-LCD Television Panel Subsidiaries as discussed above, a W1,265 billion increase in current financial liabilities, which mainly reflected an increase in our current portion of long-term borrowings payable as of the end of 2024 compared to the end of 2023, and a W905 billion decrease in deposits in banks, which was primarily attributable to a decrease in restricted cash deposits in connection with secured borrowings from our subsidiaries. The effects of such changes were partially offset by a W1,198 billion decrease in other accounts payable, which mainly reflected a decrease in our capital expenditures in 2024 compared to 2023, and a W983 billion increase in assets held for sale, which was attributable to our agreement with TCL CSOT as discussed above. The decrease in working capital deficit as of December 31, 2025, compared to the working capital deficit as of December 31, 2024, was primarily attributable to a W2,729 billion decrease in current financial liabilities, which mainly reflected a decrease in our current portion of long-term borrowings payable as of the end of 2025 compared to the end of 2024, the W1,657 billion of liabilities held for sale recognized in 2024 in connection with the sale of our TFT-LCD television panel business in China to TCL CSOT in April 2025, as discussed above, compared to no such liabilities held for sale recognized in 2025, and a W848 billion decrease in trade accounts and notes payable, which was primarily attributable to differences in the timing of settlement of trade accounts and notes payable between the respective year-ends. The effects of such changes were partially offset by a W1,265 billion decrease in net trade accounts and notes receivable, which was mainly caused by a decrease in our sales revenue as described above, and the W983 billion of assets held for sale recognized in 2024 in connection with the sale of our TFT-LCD television panel business in China to TCL CSOT in April 2025, as discussed above, compared to no such assets held for sale recognized in 2025. Our management constantly monitors our working capital, and we have historically been able to satisfy our cash requirements from cash flows from operations and debt financing. We believe that we have sufficient sources of working capital, including in the form of debt financing, for at least the next 12 months following the date of this annual report. In 2025, we entered into a number of short-term and long-term facility loan agreements, from which we have drawn down the full aggregate principal amount of US$150 million and CNY 500 million in short-term loans, and W1,005 billion (US$696 million), US$450 million and CNY 7,383 million in long-term loans, in each case as of December 31, 2025, primarily to fund our capital expenditures and refinance our existing borrowings maturing in 2025. Our ability to satisfy our cash requirements from cash flows from operations and financing activities will be affected by our ability to maintain and improve our margins and, in the case of external financing, market conditions, which in turn may be affected by various factors outside of our control. Therefore, we re-evaluate our capital requirements regularly in light of our cash flows from operations, the progress of our expansion plans and market conditions. To the extent that we do not generate sufficient cash flows from our operations to meet our capital requirements, we may rely on other financing activities, such as external borrowings and securities offerings, including the issuance of equity, equity-linked and other debt 54 Table of Contents securities. In March 2024, as part of our ongoing efforts to improve our financial condition and liquidity, we issued 142,184,300 new shares of common stock (including 1,038,078 new shares represented by 2,076,156 ADSs) at a subscription price of W9,090 per share (and US$3.450019 per ADS) pursuant to a preemptive rights offering to our existing shareholders, including ADS holders, followed by a public offering in Korea. We have used the proceeds of such offering to fund our capital investments, general corporate purposes (including purchases of raw materials) and the repayment of certain of our outstanding debt. Immediately following the completion of such offering, the number of issued and outstanding shares of our common stock increased to 500,000,000. Our net cash provided by operating activities amounted to W1,683 billion in 2023, W2,412 billion in 2024 and W2,352 billion (US$1,628 million) in 2025. The increase in net cash provided by operating activities in 2024 compared to 2023 was mainly due to an increase in cash collected from our customers primarily as a result of an increase in our sales revenue, as well as a decrease in cash outflow from trade accounts and notes receivable from W1,014 billion in 2023 to W396 billion in 2024. The increase in net cash provided by operating activities in 2024 compared to 2023 was offset in part by the long-term advances received in 2023 discussed above compared to no such advances received in 2024. The decrease in net cash provided by operating activities in 2025 compared to 2024 was mainly due to a decrease in cash collected from our customers primarily as a result of a decrease in our sales revenue, as well as a significant increase in cash outflow from trade accounts and notes payable from W47 billion in 2024 to W2,601 billion (US$1,801 million) in 2025, which principally reflected the settlement of trade payables following the sale of the China TFT-LCD Television Panel Subsidiaries. The decrease in net cash provided by operating activities in 2025 compared to 2024 was offset in part by a decrease in trade accounts and notes receivable of W24 billion (US$17 million) in 2025 compared to an increase of W396 billion in 2024, which primarily reflected an increase in the amount of trade accounts and notes receivable sold to financial institutions without recourse towards the end of 2025 compared to the end of 2024, as well as a decrease in other accounts receivable of W262 billion (US$181 million) in 2025 compared to an increase of W143 billion in 2024. The cyclical market conditions that are characteristic of our industry, as well as the regular ramp-up of our new fabrication facilities and production lines and our cost reduction measures, contribute to the fluctuations in our inventory levels from period to period. As of December 31, 2024, our inventory levels increased by 5.7% compared to December 31, 2023. As of December 31, 2025, our inventory levels decreased by 4.7% compared to December 31, 2024. Inventories consisted of the following for the dates indicated: As of December 31, 2023 2024 2025(1) 2025 (in billions of Won and millions of US$) Finished goods W 751 W 945 W 746 US$ 516 Work-in-process 1,146 1,102 1,114 771 Raw materials 457 460 504 349 Supplies 174 164 182 126 Total W 2,528 W 2,671 W 2,546 US$ 1,762 (1)For convenience, the Korean Won amounts are expressed in U.S. dollars at the rate of W1,444.55 to US$1.00, the noon buying rate in effect on December 31, 2025, as certified by the Federal Reserve Bank of New York for customs purposes. This translation should not be construed as a representation that the Korean Won amounts represent, have been or could be converted to U.S. dollars at that rate or any other rate. Our net cash used in investing activities amounted to W2,589 billion in 2023, W1,363 billion in 2024 and W979 billion (US$678 million) in 2025. Net cash used in investing activities primarily reflected the substantial capital expenditures we have made in connection with the expansion and improvement of our OLED-focused production capacity in recent years, mainly relating to construction of our new, or in certain cases, expansion or conversion of existing, fabrication and module assembly facilities and acquisition of new equipment. These cash outflows from capital expenditures amounted to W3,483 billion, W2,130 billion and W1,348 billion (US$933 million) in 2023, 2024 and 2025, respectively. We intend to fund our capital requirements associated with our expansion and construction projects with cash flows from operations and financing activities, including external long-term borrowings and bond issuances. 55 Table of Contents We currently expect that, in 2026, our total capital expenditures on a cash out basis will be higher compared to 2025 and will be used primarily to continue to fund our previously announced investments related to our continued and ongoing transition to an OLED-centric business structure, as well as other essential recurring investments. However, our overall expenditure levels and our allocation among projects are subject to many uncertainties. We review the amount of our capital expenditures and may make adjustments from time to time based on cash flows from operations, the progress of our expansion plans and market conditions. As of December 31, 2025, our commitments in relation to future acquisitions of property, plant and equipment and intangible assets amounted to W908 billion (US$629 million). Our net cash provided by financing activities amounted to W1,351 billion in 2023, and our net cash used in financing activities amounted to W1,334 billion in 2024 and W1,963 billion (US$1,359 million) in 2025. The net cash used in financing activities in 2024 compared to net cash provided by financing activities in 2023 primarily reflected decreases in net proceeds from issuance of long-term borrowings and short-term borrowings in 2024 compared to 2023 as well as an increase in our repayment of current portion of long-term borrowings in 2024 compared to 2023, partially offset by our capital increase through a preemptive rights offering in March 2024. The increase in net cash used in financing activities in 2025 primarily reflected an increase in our repayment of current portion of long-term borrowings in 2025 compared to 2024, a capital increase in 2024 compared to no such capital increase in 2025 and a decrease in net proceeds from short-term borrowings in 2025 compared to 2024, partially offset by an increase in proceeds from long-term borrowings as well as a decrease in our repayment of short-term borrowings. At each of our annual general meeting of shareholders that was held on March 21, 2023, March 22, 2024, March 20, 2025 and March 19, 2026, we did not declare any cash dividend to our shareholders. We had a total of W1,876 billion, W970 billion and W811 billion (US$561 million) of short-term borrowings outstanding as of December 31, 2023, 2024 and 2025, respectively. Approximately 27% of our outstanding short-term borrowings as of December 31, 2025 were subject to floating interest rates. For further information regarding our short-term borrowings, including their interest rate and currency structure, please see Note 12 of the notes to our financial statements. As of December 31, 2025, we maintained accounts receivable discount agreements with several banks for up to an aggregate amount of US$1,000 million at the parent company level in connection with our export sales transaction with our subsidiaries. In addition, we and our subsidiaries have also entered into various receivable transfer agreements with financial institutions for up to an aggregate amount of W3,867 billion. For further information regarding these facilities, please see Note 15 of the notes to our financial statements. As of December 31, 2025, we had outstanding long-term debt including current portion in the amount of W11,854 billion (US$8,206 million) and prior to deducting discounts on bonds, consisting of W380 billion of Korean Won denominated bonds, US$100 million of U.S. dollar denominated bonds, US$2,350 million of U.S. dollar denominated long-term borrowings, CNY19,332 million of CNY denominated long-term borrowings and W4,000 billion of Korean Won denominated long-term borrowings. As of December 31, 2025, 17% of our outstanding long-term debt were subject to fixed interest rates. The terms of some of our long-term debt contain provisions that would trigger a requirement for early repayment. The principal and interest under these obligations may be accelerated if there is a default, including defaults triggered by failure to comply with financial covenants and cross defaults triggered under our other debt obligations. We believe we were in compliance with the covenants under our debt obligations at December 31, 2025. For further information about our short- and long-term debt obligations as of December 31, 2025, including their interest rate and currency structure, see Note 12 of the notes to our financial statements. As of December 31, 2025, we have entered into an agreement to guarantee the payment obligations of our subsidiary LG Display Vietnam Haiphong Co., Ltd. in the aggregate amount of US$938 million under credit facilities and payables facilities with various financial institutions, including Citibank, Export-Import Bank of Korea and Bank of Australia and New Zealand, among other lenders. We also utilize cross-currency swap contracts and forward exchange contracts to hedge our foreign currency risk. See “Item 11. Quantitative and Qualitative Disclosures about Market Risk – Foreign Currency Risk.” 56 Table of Contents The following table summarizes our material short- and long-term cash requirements as of December 31, 2025: Payments Due by Period (in billions of Won) Total Less than 6 months 6 months-1 year 1-2 years 2-5 years More than 5 years Unsecured bank borrowings W 11,245 2,462 1,162 4,160 3,461 — Secured bank borrowings 1,701 75 74 465 1,087 — Unsecured bond issues 539 199 214 126 — — Trade accounts and notes payable 3,308 3,308 — — — — Other accounts payable(1) 1,463 1,433 30 — — — Long-term other accounts payable 248 — — 67 181 — Securities deposits received 147 0 4 143 0 — Lease liabilities 63 23 15 11 14 0 Derivatives 7 3 2 2 (0 ) — Total contractual cash obligations W 18,721 7,503 1,501 4,974 4,743 0 (1)Includes the amount of utility expenses and other expenses paid using the enterprise procurement cards. For further information, please see Note 25 of the notes to our financial statements. We intend to fund our cash commitments with cash flows generated from our operations as well as debt financing activities. In addition, we also have continuing obligations to make cash royalty payments under our technology license agreements, the amount of which are generally determined based on a percentage of sales of our display products. Expenses relating to our license fees and royalty payments under existing license agreements were W146 billion in 2023, W145 billion in 2024 and W141 billion (US$98 million) in 2025, representing 6.1%, 6.5% and 6.4% of our research and development related expenditures in 2023, 2024 and 2025, respectively. We expect to make additional license fee payments as we enter into new technology license agreements from time to time with third parties. Taxation In 2025, the statutory corporate income tax rate applicable to us was 9.9% (including local income surtax) for the first W200 million of our taxable income, 20.9% (including local income surtax) for our taxable income between W200 million and W20 billion, 23.1% (including local income surtax) for our taxable income between W20 billion and W300 billion, and 26.4% (including local income surtax) for our taxable income in excess of W300 billion. In recent years, the Organization for Economic Cooperation and Development has introduced and implemented the Base Erosion and Profit Shifting 2.0 framework (“BEPS 2.0”), which imposes a minimum tax for multinational enterprise groups with total consolidated group revenue of €750 million or more in at least two of the four most recent fiscal years (the “global minimum tax requirement”). Under the model rules of BEPS 2.0, a multinational enterprise group meeting the above-described criteria are required to pay a top-up tax on excess profits realized by a consolidated entity in any jurisdiction in which the effective tax rate for the jurisdiction is below a 15% minimum rate. The top-up tax must be paid to the tax authority of the country in which the responsible entity (either the controlling company or the local entity, depending on the jurisdiction) is located and meets certain requirements. In 2023, the Korean government enacted a new tax legislation, which is effective for fiscal years that begin on or after January 1, 2024, that reflects the global minimum tax requirement. Based on our assessment, we recognized income tax expense of W7.6 billion for the year ended December 31, 2025 in connection with the global minimum tax requirement. Tax Credits We are entitled to a number of tax credits relating to certain investments in tangible assets for business use (excluding certain assets for which tax credits are not permitted under Korean tax laws) and facilities used for research and development and human resources development. For example, in 2025, under the Restriction of Special Taxation Act, we were entitled to a tax credit of 15% of our qualifying capital investments in certain national strategic technology facilities in 2025. Under the same law, we are also entitled to a tax credit on a percentage of our research and development expenses incurred for procuring certain national strategic technologies, which include OLED display technology. The applicable amount of such tax credit is calculated by multiplying the applicable research and development expenses by the sum of (x) 30% and (y) three times the proportion of such research and development expenses as a percentage of revenue. 57 Table of Contents Tax credits may be utilized for an amount up to the tax payable using the minimum tax rate for a given fiscal year. Tax credits not utilized in the fiscal year during which the relevant investment was made may be carried forward over the next ten years. As of December 31, 2025, we had recognized deferred tax assets related to these credits of W155 billion (US$107 million), which may be utilized against future income tax liabilities through 2035. See Note 23(b) of the notes to our financial statements. Item 5.C. Research and Development, Patents and Licenses, etc. Research and Development The display panel industry is subject to rapid technological changes. We believe that effective research and development is essential to maintaining our position as one of the industry’s leading technology innovators. To meet the demands of the future trends, we have formulated a long-term research and development strategy aimed at improving the process, performance and design of the existing products and diversifying the use of display panels as new opportunities arise with the development of communication systems and information technology. The following are examples of products and technologies that have been developed through our research and development activities in recent years: •In 2023, we developed the world’s first medium-sized transparent WOLED display product (30-inch HD) with a transparency rate of 45% and luminance of 600/200 nit. In addition, we produced the world’s first 17-inch foldable pen touch notebook display panel applying tandem OLED technology. For gaming display products, we developed the world’s first 34-inch and 39-inch ultra-wide, full-size 240Hz gaming monitor display product that applies high-speed, fast response time, high-luminance and curved OLED technology. •In 2024, we developed our first notebook panel based on the ATO (Advanced Thin OLED) structure, a 13.4-inch model that incorporates Touch on Encap technology. We also introduced Micro LED display products, including a 22.3-inch module for 136-inch 4K business-to-consumer products and a 22.3-inch module for infinitely expandable business-to-business applications. Additionally, we produced large WOLED desktop monitors applying the first-ever “4Stack” technology in various sizes ranging from 48-inches to 83-inches, offering superior brightness, color accuracy and fast response times, while also achieving greater cost efficiency. For gaming display products, we launched the world’s first Gaming OLED QHD 480Hz monitor product (27-inch), along with the world’s first gaming DFR (Dynamic Frequency & Resolution) product, which allows the implementation of both high resolution (UHD 240Hz) and high refresh rate (FHD 480Hz) on a single display panel while providing maximized sound effects. Additionally, we developed our first dual-resolution gaming LCD monitor product (27-inch), which supports both fast-paced (FHD 330Hz) and high-resolution (UHD 165Hz) gaming on a single screen. •In 2025, we developed the world’s first 45WUHD 165Hz Gaming OLED panel, which applies DFR (Dynamic Frequency & Resolution) technology to enable both high resolution (WUHD 165Hz) and high refresh rate (WFHD 330Hz) on a single display panel, and features an 800R curved screen. Additionally, we developed the world’s first 27-inch QHD 540Hz OLED gaming monitor (DFR 720Hz), achieving industry-leading refresh rates and ultra-fast response time to provide a smoother and more immersive gaming experience. We also developed the world’s first medium-sized (14-inch) OLED notebook panel based on LTPO and Tandem technology and the world’s first 1Hz low-power notebook display panels (14-inch and 16-inch), delivering low power consumption, variable refresh rate functionality and enhanced design efficiency for high-end notebook applications. Furthermore, we developed the world’s first 51.5-inch high-resolution IPS curved monitor, reinforcing our leadership in the high-end large-sized desktop monitor market. For television panel products, we introduced our first large OLED television display panels based on the DRD (Double Rate Driving) platform, enhancing cost competitiveness and structural innovation. In the automotive segment, we developed our first 8.5th-generation large-sized display panel (38.9 inches) using oxide technology, featuring pillar-to-pillar full-dashboard products and expanding automotive TFT-LCD panel production beyond the existing 6th-generation line. In line with our overall business strategy to focus on the development and production of OLED and other high-end differentiated specialty display products, we plan to continue to concentrate on the research and development of OLED and other newer display technologies, while also exploring new growth opportunities in the application of display panels, such as automotive displays and life displays. Life displays include gaming displays and transparent displays, among others. 58 Table of Contents In order to maintain our position as one of the industry’s technology leaders, we believe it is important not only to increase direct spending on research and development, but also to manage our research and development capability effectively in order to successfully implement our long-term strategy. In connection with our efforts to enhance our research and development capability with respect to next-generation display technologies, we opened the R&D Center in Paju, Korea in April 2012. In addition, we have further expanded our research and development resources by allocating some of our research and development personnel to LG Science Park, which is located in western Seoul and commenced its operations in December 2017. LG Science Park accommodates researchers from various LG Group-affiliated companies with expertise in a broad range of disciplines, including electronics, chemistry, nanotechnology, display, fabrication, life sciences and new materials, to focus on developing and testing innovative new technologies. We complement our in-house research and development capability through collaborations with universities and other third parties. For example, we provide project-based funding to both domestic and overseas universities as a means to recruit promising engineering students and to research and develop new technologies. As part of our such efforts, we operate cooperation centers within various universities, including Korea University and Korea Advanced Institute of Science and Technology, in order to promote the research and development of various technologies for use in future display panels. In 2021 and 2022, we entered into agreements with Yonsei University, Hanyang University and Sungkyunkwan University to establish a “Display Convergence Engineering Department” at each of these universities that offers specialized classes in technical fields such as electronics, electricity, physics, chemistry and materials with the aim to cultivate next-generation talents. We also enter into joint research and development agreements from time to time with third parties for the development of technologies in next-generation display fields. In addition, we belong to several display industry consortia, and we receive annual government funding to support our research and development efforts. While we primarily rely on our own capacity for the development of new technologies in the display panel design and manufacturing process, we rely on third parties for certain key technologies to enhance our technology leadership, as further described in “—Intellectual Property” below. Intellectual Property Overview Our business has benefited from our patent portfolio, which includes patents for display technologies, manufacturing processes, products and applications related to the production of TFT-LCD and OLED panels. We hold a large number of patents in Korea and in other countries, including in the United States, China, Japan, Germany, France, Great Britain, Taiwan, India and Vietnam. These patents will expire at various dates upon the expiration of their respective terms ranging from 2026 to 2045. In March 2014, we formed Unified Innovative Technology, LLC in the United States, a limited liability company solely owned by us for the purpose of patent portfolio management. As part of our ongoing efforts to prevent infringements on our intellectual property rights and to keep abreast of critical technology developments by our competitors, we closely monitor patent applications in Korea and various other countries in which we sold our products. We intend to continue to file patent applications, where appropriate, to protect our proprietary technologies. We also enter into confidentiality agreements with each of our employees and consultants upon the commencement of an employment or consulting relationship. These agreements generally provide that all inventions, ideas, discoveries, improvements and copyrightable material made or conceived by the individual arising out of the employment or consulting relationship and all confidential information developed or made known to the individual during the term of the relationship are our exclusive property. In addition, we have increased our efforts to safeguard our propriety information by engaging in in-house information protection awareness activities with our employees. For a discussion of risks related to our reliance on trade secrets and the potential unauthorized disclosure of proprietary information, see “Item 3.D. Risk Factors—Risks Related to Our Business and Industry—We rely upon trade secrets and other unpatented proprietary know-how to maintain our competitive position in the display panel industry and any loss of our rights to, or unauthorized disclosure of, our trade secrets or other unpatented proprietary know-how could negatively affect our business.” License Agreements We enter into license or cross-license agreements from time to time with third parties with respect to various device and process technologies to complement our in-house research and development. We engage in regular discussions with third parties to identify potential areas for additional licensing of key technologies. 59 Table of Contents Expenses relating to our license fees and royalty payments under existing license agreements were W146 billion in 2023, W145 billion in 2024 and W141 billion (US$98 million) in 2025, representing 6.1%, 6.5% and 6.4% of our research and development related expenditures in 2023, 2024 and 2025, respectively. The following are examples of license agreements we have entered into: •We have a license agreement with each of Columbia University, Penn State University, Honeywell International, Honeywell Intellectual Properties, Plasma Physics Corporation and Fergason Patent Properties. Each license agreement provides for a non-exclusive license under certain patents relating to TFT-LCD technologies. •We have a license agreement with Universal Display Corporation for a non-exclusive license under certain patents relating to OLED technologies. •We have a license agreement with Semiconductor Energy Laboratory for a non-exclusive license under certain patents relating to TFT-LCD and OLED technologies. •We have a cross-license agreement with each of Hitachi, HannStar and Hydis for a non-exclusive license under certain patents relating to display technologies. •We have separate cross-license agreements with each of NEC and AU Optronics in connection with the settlement of certain patent infringement lawsuits. Under the agreements, each party grants the other party a license under certain patents relating to TFT-LCD technologies. •We are licensed to use certain patents for our TFT-LCD products pursuant to a cross-license agreement between Philips Electronics and Toshiba Corporation. In addition to the above, we have also entered into license or cross-license agreements with other third parties in the course of our business operations in connection with certain patents, which such third parties own or control. As well as licensing key technologies from third parties, we aim to benefit from our own patents and other intellectual property rights by granting licenses to third parties from time to time in return for royalty payments. We have also entered into certain patent purchase and license agreements with third parties, where we receive a portion of the license payments. Item 5.D. Trend Information These matters are discussed under Item 5.A. and Item 5.B. above where relevant. Item 5.E. Critical Accounting Estimates Our financial statements are prepared in accordance with IFRS Accounting Standards as issued by the IASB. See Note 3 of the notes to our financial statements for a discussion on the accounting policies critical to an understanding of our consolidated financial statements. Item 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES