Good morning and good afternoon. Thank you for joining LG Electronics earnings release conference call for the first quarter of 2022. This conference call will start with a presentation on the earnings results, followed by a Q&A session, at which time, if you wish to ask a question, you will need to press star and one on your telephone. I would now like to hand the conference over to the first speaker. Good afternoon. My name is Sang Bo Sim from Investor Relations. Thank you for joining LG Electronics earnings release conference call for the first quarter of 2022. With me are representatives of each business management division, Mr. I-Kueon Kim from Home Appliance and Air Solution, Mr. Jeong-hee Lee from Home Entertainment, Mr. Jin-Yong Kim from Vehicle Component Solutions, Mr. Choong-hyun Park from Business Solutions. We are also joined by Mr. Sang-Ho Park from Global Business Management Group, Mr. Hyungyu Lee from Finance Division, and Mr. Hong Su Lee from Accounting Division. Please note that all statements we'll be making today regarding the financial results of the first quarter are subject to change in accordance with the results of the external review. I would also like to remind you that uncertainties in the market and changes in strategies may cause our results to be different from the outlooks and forward-looking statements made today. Today, I will outline the overall performance results of the first quarter of 2022 and the outlook for the second quarter. After that, each division will take turns to deliver its business results and outlook. Now let me start with the consolidated financial results of the first quarter of 2022 and the outlook for the second quarter. Consolidated sales of the first quarter was KRW 21.1 trillion, and operating profit was KRW 1.9 trillion. Sales grew 18.5% year-on-year attributable to robust sales in premium appliances, revenue growth in VS, and recovering B2B demand on the back of easing of COVID-related restrictions across nations and subsequent step up in government and corporate investments. Though affected by non-recurring costs associated with workforce restructuring, operating profit grew year-on-year with a one-off increase in royalty income in others. Regarding non-recurring income and expense, first, on the cost related to workforce restructuring, to secure a future-oriented organization structure and enhance dynamism in the organization, we implemented workforce restructuring activities, including early retirement program this quarter. Though I cannot share specifics on the scale, package amount, or impact by business, early retirement package levels were set based on reasonable standards. Like we explained in the preliminary earnings announcement, the gap between the first quarter operating profit of each business and market expectations mostly stem from the impact of this cost. Though such activities entail cost burdens in the short term, we expect it to contribute significantly in strengthening business competitiveness in the mid to long term. Next, to comment on the royalty income that showed a one-off increase this quarter, though it's not the first time we've recorded royalty income, this quarter we reflected a significant amount of licensing revenue in others as efforts to leverage and monetize our patents since last year bore fruit. I ask for your understanding that we cannot provide details on the counterparty, contract structure, patent type, or income amount due to the confidentiality clause in the agreement. We plan to continue efforts to monetize our patents going forward. I will now briefly review the first quarter performance of each business. H&A recorded KRW 8 trillion in sales, KRW 447.6 billion in operating profit, and 5.6% in profitability. HE recorded KRW 4.1 trillion in sales, KRW 188.4 billion in operating profit, and 4.6% in profitability. VS recorded KRW 1.9 trillion in sales and KRW 6.3 billion in operating loss. BS recorded KRW 2 trillion in sales, KRW 37 billion in operating profit, and 1.8% in profitability. Each business will later share its respective business results and outlooks in detail. Let's move on to the profit and loss and cash flow of the first quarter. In terms of profit and loss, reflecting financial income and expense, equity method gain and loss, other non-operating income and expense, corporate income tax, and income and loss from discontinued operations, we posted KRW 1.4 trillion in net income. Next, on cash flow. Cash flow from operating activities of the first quarter was -KRW 137.7 billion, and cash flow from investment activities was -KRW 446.1 billion. As a result, net cash flow stood at -KRW 536.4 billion, and when reflecting cash flow from financial activities of KRW 45.9 billion, net change in cash decreased by KRW 490.5 billion. After reflecting changes in cash held for sale of KRW 58.4 billion, cash balance at the end of the first quarter came to stand at KRW 5.6 trillion. Next is the key financial position and indicators for the first quarter of 2022. As of the end of the first quarter, assets stood at KRW 55.1 trillion, liability at KRW 33.2 trillion, and equity at KRW 21.9 trillion. In terms of leverage ratios, though there was a slight increase in net debt to equity, liability to equity and debt to equity all decreased quarter-on-quarter and year-on-year, and we continue to maintain a healthy financial condition. Next is the outlook for the second quarter. In terms of the business environment, uncertainties are expected to persist with the raw material price hikes due to the prolonged Russia-Ukraine conflict, global inflationary pressures, and delay in easing of global supply chain issues. Amidst this environment, we will maintain growth momentum and leading position in the global market by strengthening regional and product portfolio. We will drive business performance through continuous improvement in cost structure and preemptive risk management. We predict second quarter revenue to grow year on year on the back of new product launches and robust sales of premium products. In terms of profitability, we expect the upward cost pressure to continue, but we seek to maintain sound profitability through product mix improvement and enhanced efficiency in operations. We will move on to the first quarter results and second quarter outlook by business. Before that, I would like to state that because of the business transfer to LG Chem, the GM battery pack business and CEM business, originally under VS and BS respectively, were incorporated into others. We have reflected these changes in performance results from the first quarter of 2022, and past results have also been restated in line with these changes. Now the business results and outlook, starting with H&A. Let me share the first quarter results of H&A. Sales stood at KRW 8 trillion with a 19% increase year-on-year, driven by growth across overseas markets, including North America. Despite the upside of revenue growth and marketing cost savings, operating profit decreased year-on-year due to rising raw material and logistics costs. Next is the outlook for the second quarter. Raw material and logistics cost burdens are expected to persist, and the Russia-Ukraine conflict, lockdown in major cities of China, and global oil price hikes are projected to pose further risk to business operations. Amidst this environment, armed with our product competitiveness, we will continue efforts to expand sales of premium, large capacity, and high efficiency products. We will focus capabilities to secure sound profitability through new product launches, aggressive selling price increases, and spending optimization. I will share the first quarter results of HE. Sales recorded a slight growth year-over-year, thanks to strong revenue from premium products despite the overall demand decrease in major regions such as North America and Europe. Though revenue grew and the panel price situation improved, operating profit decreased year-over-year due to increased spending, including marketing expenses. Now let me share the outlook for the second quarter. In the market, demand is projected to decrease year-over-year in Russia and advanced markets such as North America and Europe, but we expect demand for premium products to be maintained. Accordingly, we will improve product mix to focus on premium TVs like OLED, QNED, and large size TVs to maintain revenue levels similar to that of the previous year and previous quarter. We will exert efforts to secure profitability with efficient spending, including marketing costs. Let me share the first quarter results of VS. Sales grew year-over-year and quarter-over-quarter, thanks to close cooperation with OEMs on timely production and supply amidst the prolonged supply shortage of automotive semiconductors. Operating loss was reduced quarter-over-quarter on the back of revenue growth. Next, the outlook for the second quarter. Uncertainties in the external market are expected to persist with disruption in auto semiconductor supply, the Russia-Ukraine conflict, and lockdown in major cities of China. We will strengthen business risk management through flexible response to customers and continuous improvement in cost structure. I will share the first quarter results of BS. Though uncertainties remain due to deteriorating macroeconomic factors, sales recorded an increase quarter-on-quarter and year-on-year on the back of sustained growth in gaming monitors and gram PCs in information technology business and recovering market demand and expanded sales of digital signage and hotel TV products in information display. Operating income turned around to record profit with significant improvement quarter-on-quarter, thanks to growth in revenue, but decreased year-on-year due to rising component and logistics costs. Now let me share the outlook for the second quarter. In general, uncertainties still remain in the market, and the B2C market with regard to IT products is expected to be stagnant or decline. The B2B market demand is expected to expand, and demand for signage and hotel TVs in information display is projected to show continuous growth. In IT, we will actively meet demand for high-end products in the B2B market, and in information display, we will identify new projects in diverse verticals and secure more project wins to maintain growth momentum in sales and secure stable profitability. That brings us to the end of the first quarter earnings release and outlook for the second quarter. We will now take questions. Operator, please commence with the Q&A session. Now Q&A session will begin. Please press star and one if you have any questions. Questions will be taken according to the order you have pressed the star and one. For cancellation, please press star and two on your phone. The first question will be provided by Dong-Won Kim from KB Securities. Please go ahead with your question. 질문 기회 감사드립니다. 저는 H&A와 VS 본부에 질문드리겠습니다. 인플레이션 확산에 따른 실질 소득이 감소하면서 내구재 수요 둔화에 대한 우려가 있는 것으로 보입니다. 올해 LG전자에서 글로벌 가전 수요를 어떻게 전망하시는지 궁금하고요. 주력 시장인 한국과 북미, 유럽, 중남미 등 지역별로 수요 동향과 전망에 대해서도 의견 부탁드립니다. 다음 질문은 최근 시장에서 전장 부품 사업에 대한 조기 턴어라운드 기대가 커지는 것 같습니다. 만약에 이익 개선이 이루어진다면 어떤 제품과 고객에 의한 것인지 궁금하고요. 하반기 전장 부품 사업의 의미 있는 턴어라운드 가능성에 대해서도 말씀 부탁드립니다. I have two questions. My first question regards to Home Appliance and Air Solution business. Due to the spread of inflation, there are growing concerns on disposable income decrease and overall demand slowdown. What are your projections on this year's overall home appliances demand? I also would like to ask about your demand forecast and the current trend that you see in major regions such as Korea, North America, Europe, and Latin America. My second question regards to Vehicle Component Solutions. There are growing expectations in the market that the vehicle component business may make a turnaround earlier than expected. If your profits do improve, which customer or product would have mainly contributed to such improvement? Do you think there are chances of meaningful turnaround in the second half of this year? 먼저 H&A 답변드리겠습니다. 지난해에는 코로나 펜트업 효과로 인해서 선진국 중심으로 시장 수요의 호조가 이어졌습니다만, 올해는 코로나 대응을 위해서 증가했던 각국의 정부 지출이 줄어들면서 가전 수요에 대한 성장 수준은 전년보다는 감소될 것으로 예상하고 있습니다. Thanks to the pent-up effects of COVID-19, we have seen positive sales demand in the advanced market last year. However, in this year we are expecting the growth rate of home appliances demand to go down compared to the previous year as many countries governmental spending that were used to tackle the COVID-19 outbreak has been reduced. 먼저 국내 가전 시장에 대해서 말씀드리면 현재 정체기에 접어든 것으로 보입니다. 코로나로 확대된 가전 시장의 규모는 코로나 초기와 달리 감소될 조짐도 보이고 있고, 가전 수요의 상황에 대해서 예의주시하면서 지켜보고 있습니다. If I may tell you about the Korean market, it seems to enter the period of stagnation. Unlike when COVID-19 pandemic just broke out, recently we witnessed signs of demand going down. Thus we are keeping a close eye on the home appliance demand circumstances. 북미 시장의 경우에는 펜트업 수요 감소와 수요 심리 악화 상황이 예상되고 있지만, 당사가 유통과의 협업을 통해서 그동안 매장 플로링을 적극 확대해 오고 있으며, 매출이 지속적으로 창출되는 기반을 꾸준히 마련해 오고 있습니다. 이를 통해 경쟁사의 공급 상황이 정상화되더라도 시장 점유율에서는 우위를 유지할 수 있도록 유지할 것이라고 예상하고 있습니다. In the North America market, we have seen the pent-up demand and also the slowing down of growth momentum. However, under these circumstances, LG Electronics have paved the way to create continuous revenue by expanding floor space with cooperation with our distributors. Also we are pouring out such efforts so even though the supply comes back to normal, we believe that we will keep the market share as it was. 유럽은 아시는 바와 같이 러시아, 우크라이나 전쟁의 지정학적 리스크가 있고, 환율 절하 및 물가 상승의 폭이 기존 예상 대비 증가하고 있는 상황입니다. 러시아에 대한 추가 제재가 진행되면서 유로존 국가들의 스태그플레이션 돌입 가능성도 증가하고 있고, 상반기까지는 단기적 수요 침체가 예상되며, 하반기 이후에는 소폭 개선이 될 것으로 예상하고 있습니다. In case of Europe, as you may already know, we are seeing geopolitical risks that stemming from the conflict between Russia and Ukraine and also inflation level and exchange rate depreciation has gone up more than expected. As additional sanctions are posed on Russia, the possibility of eurozone nations to enter stagflation has increased. As a result, we expect a short term demand slowdown until the end of the first half, and slight recovery is expected after the second half of the year. 예, 중남미 시장도 그 정치적인 불확실성이 커지면서 환율 변동 등이 우려가 계속되고 있습니다. 저희 당사에서는 이런 지역별 시장 변동을 고려해서 시장 전략을 세웠고, 현재 실행 중에 있다고 말씀드리겠습니다. 이상입니다. In Latin America, there are concerns on unstable exchange rate due to political uncertainty witnessed in the region. LG Electronics will consider all the circumstances and plan and establish market strategies. Thank you. VS 본부 답변드리겠습니다. 2022년 전장 부품 사업은 전년 대비 매출 성장 및 손익 개선이 예상되며, 금일 실적 발표에서 보셨듯이 1분기 실적이 BEP 수준에 근접해 있습니다. I'll answer your question on VS. We expect the vehicle component business this year to see revenue growth and improved profitability versus last year. As you saw from today's earnings report, our Q1 performance indicates that we are close to breaking even. That said, uncertainties over sales and cost fluctuations abound due to an ongoing shortage of semiconductor chips in the vehicle component industry and rising raw material prices, along with the Russia-Ukraine conflict and COVID lockdowns in China. Therefore, please understand that we are unable to comment on the specific timing of a turnaround. Next question, please. The following question will be presented by Kang-ho Park from Daishin Securities. Please go ahead with your question. I have two questions. My first question regards to H&A business. I believe that increase in raw material costs, logistic costs, and higher inflation are adding uncertainties to the demand, and this will continue in the second quarter as well. At a time when we are expecting continuous growth in logistic costs and raw material costs in the next quarter, I would like to ask your projections on the second quarter and the second half of this year. Additionally, I would like to ask about your strategies to improve profitability, including pricing strategies to secure margin. My second question regards to Vehicle Component Solutions. The market is taking a good look at Magna JV project. Has it generated any synergies? And I would like what is your outlook for the revenue and P&L for 2022? We expect the material cost increase and logistics disruption would continue for a while. Market price of steel is on the rise, and there are also upward pressures on regime costs due to soaring oil prices and increase of raw material prices. As a result of establishing partnerships and keeping cooperative relations with strategic partners, our purchasing price remains lower than the market price. In addition, LG Electronics is also working hard to offset raw material cost increase by changing our existing materials to those that can lead to cost reduction. In regards to logistics costs, thanks to long-term contract with shipping companies and less shipping volume from China, the containerized freight index went down. Also, we're seeing less additional freight payments that are paid on top of our shipping contracts prices. However, the possibility of short-term recovery seems to remain low considering the current situation regarding port strike on U.S. West Coast and China's lockdown in major cities. 예, 뭐 상당히 부담되는 외생 변수의 비용이지만 매출 성장과 그리고 평가 인상, 그리고 비용 투입에 대한 체질적 활동을 통해서 올해도 견조한 수익성을 확보해 나갈 수 있도록 조직의 역량을 집중하고 있습니다. We are seeing a burden in costs. However, we are conducting improvement activities on all fronts to secure profitability through additionally increasing sales price and implementing optimized spending activities. 예, VS본부 답변드리겠습니다. LG Magna JV는 순조롭게 진행되고 있습니다. JV 시너지를 위하여 마그나의 자동차 부품 사업 관련 노하우를 벤치마킹하여 각 분야별 사업 역량 강화를 지속 추진 중이며, 다양한 사업 기회 발굴을 위한 논의도 지속하고 있습니다. Let me answer your question on VS. LG Magna JV is on track. To create synergies, we're continuously working on enhancing our capabilities by benchmarking Magna's vehicle component business related knowhow. We've also been having a discussion about exploring various business opportunities. 수주 측면에서 신규 거래선 확보가 있었으며, 금번 LG Magna 멕시코 공장 설립도 이러한 양사 간 협력의 결과입니다. Also, we have secured a new channel and the establishment of LG Magna e-Powertrain's new plant in Mexico is a testament to our collaboration. 반도체 부족 및 원자재가 인상 등의 이슈에도 불구하고 전기차 시장 가속화에 따라 2022년 매출은 성장 기조를 유지할 것으로 예상되며, 수익성도 매출 증가에 따라 개선될 것으로 전망하고 있습니다. 이상입니다. Despite issues such as a shortage of semiconductors and rising raw material prices, our revenue in 2022 is expected to remain solid, driven by the fast growing EV market, and profitability is also expected to grow as a result of revenue growth. 네, 다음 질문 부탁드리겠습니다. Next question please. 다음으로 질문해 주실 분은 키움증권의 김지산 님입니다. The following question will be presented by Jisan Kim from Kiwoom Securities. Please go ahead with your question. 질문 기회 감사합니다. 두 가지 질문인데요. 첫 번째는 신사업 전략 관련입니다. 이번 주총에서 블록체인, 의료기기 등을 사업 목적에 추가했는데요. 향후 신사업 추진 전략을 공유해 줄 수 있는지 부탁드립니다. 두 번째는 VS 사업부입니다. 차량용 반도체 이슈가 장기화되고 있는데요. 이에 대한 회사의 대응 전략을 말씀해 주시고, 공급 부족 해소 시점을 언제로 예측하시는지 공유 부탁드리겠습니다. I have two questions. My first question is on your strategy about new business. At the general meeting of shareholders, you have added blockchain and medical devices as new areas of business. In light of this, can you share your new business strategy going forward? My second question is on VS. The shortage of automotive semiconductors seems to be continuing with no end in sight. When do you expect the supply constraints to ease? 먼저 문의주신 신사업 관련해서 답변을 드리도록 하겠습니다. 이번 사업 목적 추가 관련해서 정관 변경에 대해 먼저 설명을 드리면, 먼저 블록체인 사업의 경우에는 향후 해당 기술이 전자 산업의 핵심 기술로 발전해 나갈 것으로 예상이 되기 때문에 이를 활용한 다양한 사업 기회 창출이 가능한 것으로 전망하고 있습니다. Let me explain the amendments made to the corporate charter related to added objectives. Since blockchain technology is the core technology in the electronics industry, we believe that various business opportunities can be created utilizing this. 저희 LG전자는 우선 고화질의 스마트 TV에서 NFT 아트 갤러리 서비스 및 가상 자산의 매매 중개 플랫폼을 구축하기 위하여 금번 정관 변경을 진행을 하였고, 향후에도 해당 영역의 잠재적 사업 기회들에 대해 많은 기대를 가지고 있습니다. We have amended our corporate charter in order to install NFT platforms that will enable NFT art gallery services and the trading and brokerage of crypto assets on our high quality smart TVs. We have high expectations for potential business opportunities in this area. 그리고 의료기기 사업은 의료기기 인증이 확보된 Pra.L 제품군을 당사의 온라인 플랫폼을 통해 직접 판매하기 위해서 정관 변경을 진행을 하였습니다. As for the medical device business, we have amended the corporate charter in order to sell prior products which have been certified as medical devices through our online platform. 그동안 MediHair 등 하이프라자 등 의료기기 판매가 가능한 유통을 통해서 소비자 구매가 가능은 했는데, 당사의 온라인 채널에서도 소비자들이 구매가 가능하도록 하기 위해서 정관 변경을 통해 의료기기 판매업자로 신고를 마쳤습니다. So far, the purchase of Pra.L MediHair was available through a retailer like Hiplaza, which is allowed to sell medical devices. Now with the amendments made to the corporate charter, we have filed a notification of sale of medical devices so that consumers can purchase them through our online channel as well. 그리고 헬스케어 영역은 당사에서 꾸준히 기회와 가능성을 열어두고 있는 영역이고요. 그 이외에도 당사가 보유한 IP 자산을 활용해서 라이선스 로열티 매출을 확보하기 위한 노력도 적극적으로 추진해 나갈 계획입니다. 이상입니다. Healthcare is a business area where we are constantly looking for opportunities and open to possibilities. Also, we're going to actively make an effort to increase licensing revenue utilizing our IP assets. 예, VS본부 답변드리겠습니다. 일부 반도체 공급업체들의 공급 이슈가 점진적으로 해소되고 있지만, 아직도 전반적인 수급 불균형은 해소되지 않고 있으며, 하반기 이후 점차 개선은 예상되지만 완전히 해소되기까지는 상당한 시일이 걸릴 것으로 보입니다. Let me answer your second question on VS. While supply constraints for some semiconductor suppliers are gradually easing, the overall supply demand imbalance of semiconductors remains largely unresolved. Although the situation is expected to gradually ease after the second half of the year, it will take quite some time for it to be fully resolved. In response to this, the VS division will closely cooperate with OEMs, semiconductor suppliers and wafer suppliers while exercising flexibility in PSI management by looking for alternative components and multi sourcing. Next question, please. The following question will be presented by Sung Lal Guan from DB Financial Investment. Please go ahead with your question. H&A, BS. H&A steam. business solutions. solar panel. I have two questions. My first question regards to H&A. Currently, I'm not seeing any new big things from LG Electronics. Has the new product launch cycle come to an end? It will be appreciated if you can share your plans of what will come next after you release the streaming product lineup. My second question regards to Business Solutions. I'm wondering about the estimated cost associated with the closure of the solar panel business and the timing of its recognition. Thank you. H&A. I would like to answer your question in regards to H&A. In early this year, LG Electronics announced that we will move on to upgradable home appliances. We are providing new value through upgrading services, not only on new products, but also on those already in the market. We are also planning to continuously bring new products equipped with upgradable features to the market. H&A. Please understand that I cannot describe all new products that will launch in the near future. However, we're planning to launch products that our customers can customize the usage according to their personal taste, and those that we can provide additional upgradable appliances related content and additional features through ThinQ. H&A. In addition, we're planning to apply sanitation and health-related features such as steaming and UVnano sterilization technology to more products and expand into the global market. Also, as more customers are asking for contact-free services after the pandemic outbreak, we have made enhancements on products so that our customers can disassemble air conditioners and replace filters of water purifiers and sterilize by themselves. H&A. We also have plans to expand the application of steaming features that are optimized for sanitation and health appliances to new products and existing products. Thank you. Let me answer your question on VS. Since the closure of the solar panel business was approved by the board of directors and announced in February, we have been working on closing the cell production lines. Also, discussions with channels and suppliers about compensation are underway. We're going to finalize the process involved within the scheduled closure of the business. In accordance with accounting standards related to discontinued operations, the costs associated with the closure of the business will be accounted for as discontinued operations in June, when production and sales will cease. Please understand that at this point, we're unable to provide details of such costs. Next question, please. The next question will be presented by Sung Kyu Kim from Daiwa Capital Markets. Please go ahead with your question. I have two questions. My first question is on corporate-wide operations. After the change of leadership at the end of last year, with CSO being appointed CEO, it looks like the company is undergoing large-scale business restructuring. Can you share the new management's key business strategies along with mid to long-term revenue and profitability guidance? My second question is on VS. Can you give us an update on the revenue from each business, including IVI, LG Magna JV, and ZKW? Can you also talk about the production disruptions experienced by each business caused by supply constraints? Let me answer from business strategy, business portfolio and new growth engine perspectives. From a business strategy point of view, we aim to build momentum for change and growth across all of our business areas by enhancing operational efficiency with a select and focus approach and utilizing the resources gained from it. Our recent decision to close the solar panel business and restructure the workforce was also part of this effort. With our core business areas, such as home appliances and TVs, we are enhancing our capabilities to reach full potential by improving competitiveness for premium products and regional portfolios. From a business portfolio point of view, once the vehicle component business makes turnaround, all of our business divisions will be able to secure a stable profit structure. We expect the revenue and profit contribution of the vehicle component business, which is the future growth engine, to grow further. Also, in order to gain momentum for continuous growth, we're going to apply future technologies such as big data, AI, and IoT to our existing business. By adopting new business models such as software platforms and rental services, we're going to lay the groundwork for leadership in the era of convergence. Lastly, from a new growth engine perspective, we're going to actively explore new business opportunities across various areas and execute swiftly for timely commercialization, including inorganic growth. As for the new business items that we're already working on commercializing, we will improve the business models through intensive development, thereby accelerating growth. Based on these business strategies, we aim to achieve solid over mid-single digit revenue growth in the medium to long term and secure stable profitability. Let me answer your question on VS. In line with recent market situations, we did experience some production disruptions, but sales of each business grew year-over-year. The revenue contribution of VS, including IVI, LG Magna and ZKW is in the ratio of 70 to 10 to 20, respectively. LG Magna, in particular, saw year-over-year growth in the mid-40% range and despite the shortage of semiconductors, VS and ZKW saw year-over-year revenue growth by closely cooperating with channels and semiconductor suppliers to minimize disruptions to production and also driven by new projects. Next question, please. The following question will be presented by JJ Park from JP Morgan. Please go ahead with your question. I have two questions. My first question is on corporate wide operations. Will the workforce restructuring be a one time event or will it recur throughout the remainder of the year? And although you may not be able to mention specific figures, but can you at least tell us which business was most impacted by this? And my second question is on HE. Due to slowdown in consumer demand, can you share your outlook for LCD and OLED panel supply prices for the second quarter and over the year? Let me answer your first question on workforce restructuring. All the costs associated with the workforce restructuring activities, including compensation for early retirees, have been reflected in this quarter's results, and at the moment, no additional plan related to this is under review. Although this workforce restructuring has resulted in the cost burden in the short term, we expect it to contribute greatly to the enhancement of our business competitiveness in the medium to long term. As to which business unit was most impacted by this, considering the size of revenue and the number of personnel, I assume that H&A was impacted most by this. I would like to answer your question regarding Home Entertainment. It is true that due to various macro events such as temporary lockdown in Shenzhen, China, the conflict between Russia and Ukraine, global inflation and others, the global TV demand has slowed down. These factors will lead to the LCD panel price drop until the second quarter. Afterwards, we expect the price to show a recovery from the first quarter as the panel demand will hike in the second half of the year and during the strong TV season of TVs. However, I expect that the OLED panel price drop would be limited due to higher sales and premium line and LGD's quality-centric growth strategy. Next question, please. The next question will be presented by Simon Woo from Bank of America Securities. Please go ahead with your question. Thank you for taking my questions. My first question is on corporate-wide operations. I see what's unique about this quarter is that you have royalty income. I understand that it may be difficult to comment on specific figures and specific information. Can you at least tell us what the royalty income is related to? For example, is it from mobile related patents or is it related to EV? Please explain the background. It would be very much appreciated. Although you say that it's a one-time royalty income, do you think it's possible to make it a steady source of income? My second question is on HE. For a long time, LG has been differentiating itself through OLED TV. As you know, the competitor has started mass producing QD-OLED panels, and we are seeing many new competitors entering the market. LGD has a limit as to additional panels they can produce. In this context, in terms of differentiating quantitatively and considering the fierce competition, you are facing a lot of challenges. Please comment on this. Thank you. Let me answer your first question regarding the one-off increase in royalty income this quarter. We have had non-recurring royalty income in the past, but since last year we have been making efforts to monetize the IP assets that we own. As a result, a fairly large amount of licensing revenue has been reflected as other income this quarter. Regarding your second part of the question, please understand that due to confidentiality clauses, we're unable to provide detailed information such as specific names, agreement structure, or patent type. As to whether it could be a steady source of income, we have been developing core technologies related to future business across various areas and as a result, we own numerous core IP assets, including mobile related standard essential patents. With recent amendments made to the corporate charter this March at the general meeting of shareholders, to which patent licensing business has been added, we will actively and continuously engage in the monetization of IP assets. LG OLED TV has been recognized by our customers and the market ever since from its launch, and the outstanding market share proves that we are leading the market for sure. Our market share may have some impact in case our competitor enters into the OLED TV market. However, we believe that this can rather lead to growth in the overall OLED TV market, eventually allowing us to find more opportunities to expand sales. We are continuously communicating with the market by sending our key message that OLED TV equals LG Electronics. With such message being the key of our TV marketing, we are planning to implement the next generation OLED evo marketing that allows a brighter and clearer viewing experience based on our 10-year experience in this year as well. Our plan is to make continuous enhancement on our products so that our OLED TV can continue to take the leadership in the market. Additionally, we will discover the customer value that can only delivered by LG in order to strengthen the differentiation points compared to our competitors. To answer your question about OLED panel supply issue, so far, we are seeing no impact on the mid- to long-term supply matters. Thank you. Next question, please. The following question will be presented by Jong Uk Lee from Samsung Securities. Please go ahead with your question. I have two questions. My first question is on Home Entertainment. Many are concerned saying that it will be difficult to secure mid- to single-digit in TV profitability in the long term because it may take considerable time until rising raw material prices, inflation and supply chain issues get resolved. What are your projections on LG's mid- to long-term TV profitability? My second question regards to H&A business. I know that smart appliances and subscription economy is on a trend nowadays, and your competitor also launched a big data appliance as well. What kind of preparations are you making for the home smart home appliances lineup, including the subscription services based on ThinQ? And what are the factors that differentiate your products from others? I would like to listen your strategies. Thank you. HE 본부 답변드리도록 하겠습니다. 이미 이야기하신 바와 같이 원자재 가격, 물류비 상승, 그리고 현재 일어나고 있는 러시아, 우크라이나 전쟁으로 인한 공급망 위축 등, 당분간 그 매크로 경제적인 측면에서 보면 상당히 TV 전반적으로 수익성을 확보하기에는 좀 어려운 것은 사실입니다. I would like to answer your question in regard to Home Entertainment. As you just mentioned, we are witnessing various macro risks, including rise in material cost, logistics cost, and supply chain disruption because of the conflict between Russia and Ukraine. It is true that TV business is facing difficulties in securing profitability in the short term because of this. 하지만 그 TV 수요를 보게 되면 기본적으로 $1,000 이상 시장에서의 수요는 지속적으로 성장하는 경향이, 성장하고 있는 상황입니다. 이러한 시장, 그러니까 프리미엄 시장의 수요가 성장하고 있기 때문에 당사는 OLED 그리고 QNED 등 프리미엄 제품 매출을 확대를 하고, 그리고 효율적인 자원 운영을 통해서 기본적으로는 미드 싱글 디짓의 견조한 수익성을 유지해 가는 것이 유리할 수 있을 것이라고 생각하고 있습니다. However, taking a look at the demand in the TV perspective, those demands over $1,000 are growing continuously. At a time when we are seeing growth in premium line of demand, we are planning to expand the lineup in premium models such as OLED and QNED. Together with this, we are planning to do our best to maintain sound level of profitability in this mid- to single digits through developing and launching differentiated products. Thank you. 네, 스마트 가전 관련해서 H&A 답변드리겠습니다. 당사는 스마트 가전으로의 진화를 선도하기 위해서 차별화된 솔루션을 제공하고 있습니다. 특히 기존의 ThinQ 앱과 더불어 최근 출시한 UP 가전 기능을 통해서 인공지능 및 빅데이터를 활용한 다양한 고객 경험 개선의 서비스를 소개하고 있고, 이를 통해서 당사의 시장 경쟁 우위를 지속 강화해 나가고 있습니다. I would like to answer your question on H&A business. We have differentiated solutions to lead the evolution to smart appliances, especially through the features of our newly launched upgradable appliances. Together with the ThinQ application, we are introducing various services that can improve diverse customer experience based on AI and big data. Through this process, we are continuously strengthening our competitive edge in the market. ThinQ 앱 내에 있는 My Home Report 서비스는 고객의 가전 사용 데이터를 분석하고, 가전제품별 사용 현황과 에너지 모니터링 정보를 제공하고 있으며, ThinQ Care 서비스는 인공지능을 기반으로 제품이 올바르게 동작하고 있는지를 알아서 진단하고, 상황에 따라 사용자가 취해야 하는 조치를 선제적으로 알려주는 최적 진단 가이드를 통해 고객이 걱정 없이 가전을 사용할 수 있도록 도와주고 있습니다. Through ThinQ's My Home Report service and we analyze customers' appliances usage data, and provide usage status for each appliance and information on their energy consumption. Our ThinQ Care service via AI technology checks whether the product is working in the right way and proactively lets the users know how to take actions according to what happens, so that they can use their appliances without having any concerns. 또한, 생활 연구소 및 Smart Tips 서비스는 고객의 보유 가전 및 사용 패턴을 기반으로 고객이 궁금해하는 정보나 콘텐츠를 알아서 제공하고 추천하여 스마트한 가전 생활을 경험하도록 하고 있습니다. Other services, such as Smart Life Labs and Smart Tips, proactively provides and recommends appropriate information and contents that users would like to know based on the appliances they have and their usage patterns. This allows customers to enjoy a smart appliance experience. 가전 사용 이력 및 현황을 토대로 렌탈 솔루션 및 소모품 구매까지 연계해서 필요한 것이 무엇인지 알아서 알려주고, 바로 구매까지 가능하도록 하여 고객 경험 여정 전반에 걸쳐 차별화된 맞춤 서비스를 제공하고 있습니다. 이상입니다. Moreover, based on the usage history and status, our services alerts our customers on what they need, linking in with a rental solution or replacement of a consumable part, and let them move on to the next step. In this sense, we are providing customized services throughout the customer experience journey. Thank you. 더 이상 질문이 없는 것 같습니다. 그럼 이상으로 2022년 1분기 LG전자 실적 발표 컨퍼런스 콜을 마치도록 하겠습니다. 이 시간 이후 추가적인 질문이 있으신 분은 저희 LG전자 IR팀으로 연락을 주시면 자세히 설명드리도록 하겠습니다. 오늘 참석해 주셔서 정말 감사드립니다. That brings us to the end of LG Electronics earnings release conference call for the first quarter of 2022. For further questions, please contact the IR team. Thank you.