Edgar Filing: LG.Philips LCD Co., Ltd.

Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of October 2006

LG.Philips LCD Co., Ltd.

(Translation of Registrant’s name into English)

20 Yoido-dong, Youngdungpo-gu, Seoul 150-721, The Republic of Korea

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submission to furnish a report or other document that the registration foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

Q3 06 Earnings Results

I. Performance in Q3 2006 – Korean GAAP Consolidated Financial Data

(Unit: KRW B)


Item	Q3 06	Q2 06	Q3 05	QoQ		YoY
Quarterly Results
Revenues	2,773	2,315	2,741	19.8	%	1.2	%
Operating Income	-382	-372	240	—		—
Ordinary Income	-422	-402	217	—		—
Net Income	-321	-322	227	—		—

II. IR Event of Q3 2006 Earnings Results


1. Provider of Information:		IR Communication team

2. Participants:		Institutional investors, securities analysts, etc.

3. Purpose:		To present Q3 06 Earnings Results of LG.Philips LCD

4. Date & Time:		4:30 p.m. (Korea Time) on October 10, 2006 in Korean

		9:00 p.m. (Korea Time) on October 10, 2006 in English

5. Venue & Method:		1) Earnings release conference in Korean:

		- Main conference room, 21st floor, Korea Exchange
		New Building, Seoul

		2) Conference call in English:

		- Please refer to IR homepage of LG.Philips LCD Co., Ltd. at www.lgphilips-lcd.com

6. Contact Information

1) Head of Disclosure: Dong Joo Kim, Vice President, Finance & Risk Management

		Department (82-2-3777-0702)

2) Main Contact for Disclosure-related Matters:

		Kanghee Kim, Assistant, Financing Team

		(82-2-3777-1665)

3) Relevant Team: IR Communication team (82-2-3777-1010)

III. Remarks

Please note that the presentation material for Q3 06 Earnings Results is attached as an appendix and accessible on IR homepage of LG.Philips LCD Co., Ltd. at www.lgphilips-lcd.com.

Please note that the financial data included in the investor presentation and press release are prepared on a Korean GAAP consolidated basis only (US GAAP consolidated and Korean GAAP non-consolidated information are stated below).

Financial data for Q3 06 are unaudited. They are provided for the convenience of investors and can be subject to change.

The following US GAAP consolidated information and Korean GAAP non-consolidated information are included for the convenience of investors.

US GAAP consolidated information

(Unit: KRW B)


Item	Q3 06	Q2 06	Q3 05	QoQ		YoY
Quarterly Results
Revenues	2,773	2,315	2,741	19.8	%	1.2	%
Operating Income	-378	-379	239	—		—
Ordinary Income	-408	-382	216	—		—
Net Income	-307	-302	238	—		—

Korean GAAP non-consolidated information

(Unit: KRW B)


Item	Q3 06	Q2 06	Q3 05	QoQ		YoY
Quarterly Results
Revenues	2,730	2,086	2,416	30.9	%	13.0	%
Operating Income	-384	-445	243	—		—
Ordinary Income	-426	-403	214	—		—
Net Income	-321	-322	227	—		—

Attached: 1) Press Release

2) Presentation Material

Attachment 1. Press Release

LG.PHILIPS LCD REPORTS THIRD QUARTER 2006 RESULTS

SEOUL, Korea – October 10, 2006 – LG.Philips LCD [NYSE: LPL, KRX: 034220], one of the world’s leading TFT-LCD manufacturers, today reported unaudited earnings results based on consolidated Korean GAAP for the three month period ended September 30, 2006. Amounts in Korean Won (KRW) are translated into US dollars (USD) at the noon buying rate in effect on September 30, 2006, which was KRW 946.25 per US dollar.

•

Sales in the third quarter of 2006 increased by 20% to KRW 2,773 billion (USD 2,931 million) from sales of KRW 2,315 billion (USD 2,446 million) in the second quarter of 2006 and increased 1% compared to KRW 2,741 billion (USD 2,897 million) in the third quarter of 2005. The sequential rise in sales was the result of increased seasonal demand across all segments and improving market conditions, especially in the monitor and notebook segments.

•

Operating loss in the third quarter of 2006 was KRW 382 billion (USD 404 million) compared to an operating loss of KRW 372 billion (USD 393 million) in the second quarter of 2006, and an operating profit of KRW 240 billion (USD 254 million) in the third quarter of 2005.

•

EBITDA in the third quarter of 2006 was KRW 295 billion (USD 312 million), an increase from KRW 243 billion (USD 257 million) in the second quarter of 2006 and a year-over-year decline of 57% from KRW 681 billion (USD 720 million) in the third quarter of 2005.

•

Net income in the third quarter of 2006 was a loss of KRW 321 billion (USD 339 million) compared to a loss of KRW 322 billion (USD 340 million) in the second quarter of 2006 and a profit of KRW 227 billion (USD 240 million) in the third quarter of 2005.

“During the third quarter, our business did not perform at the level we expected, primarily due to higher than anticipated price declines mainly for LCD TVs. As such, the Company continues to take the necessary steps to correct the issues that have limited our progress in recent quarters. Our ability to effectively reduce costs and improve efficiencies will be crucial in restoring profitability as we prepare for what we believe will be a difficult first half of 2007. We have made some inroads in these areas, and will take more substantial steps going forward,” said Bon Joon Koo, CEO of LG.Philips LCD.

Mr. Koo continued, “As part of our ongoing efforts to restore value for our shareholders, we have initiated a number of actions to improve customer alignment and ensure that our operations support their future needs. Toshiba’s equity participation in our new Poland module plant and our focus on Gen 5.5 to accommodate increasing demand for large and wide format notebooks and high-end monitors, are two such examples.”

Third Quarter Financial Review

Revenue and Cost

Revenue in the three-month period ended September 30, 2006, increased by 1% to KRW 2,773 billion (USD 2,931 million) from KRW 2,741 billion (USD 2,897 million) in the corresponding period of 2005. TFT-LCD panels for TVs, desktop monitors, notebook computers and other applications accounted for 48%, 26%, 21% and 5%, respectively, on a revenue basis in the third quarter of 2006, the same level as the second quarter.

Overall, the Company shipped a total of 2 million square meters of net display area in the third quarter of 2006, a 34% increase quarter-on-quarter, with an average selling price per square meter of USD 1,430. This represents a decrease in the average selling price per square meter of net display area of approximately 3% compared to the end of the second quarter of 2006 and an average decrease of 11% from the second quarter of 2006.

The total cost of goods sold increased 19% quarter-on-quarter to KRW 3,019 billion (USD 3,190 million), and increased 28% year-on-year, primarily as a result of increased shipments. The cost of goods sold per square meter of net display area shipped was KRW 1.5 million (USD 1,585) for the third quarter of 2006, down 11% from the second quarter of 2006.

“We saw good progress this quarter with a 12% decline in COGS per square meter in USD, although this was not enough to offset the LCD TV price decline. In addition, our decision last quarter to temporize production, along with an increase in shipments, led to a reduction in inventory turnover levels from four weeks at the end of the second quarter, to over two weeks at the end of the third quarter for large panels,” said Ron Wirahadiraksa, CFO of LG.Philips LCD.

“We are now at a crucial inflection point. Without additional measures relating to product mix, cost, and productivity, we will not be able to deliver value to our shareholders. In the coming months, LG.Philips LCD will take the required actions in these areas to better respond to a new reality on pricing, demand and competitive pressures. We are confident that we have at least taken the right first steps - maintaining healthier inventory levels, reducing costs at an expedited rate in Q3, and aligning ourselves in a more substantial way with our customers – and management remains committed to do what is necessary to generate acceptable returns.”

Liquidity

As of September 30, 2006, LG.Philips LCD had KRW 472 billion (USD 499 million) of cash and cash equivalents. Total debt was KRW 4,480 billion (USD 4,734 million), and the net-debt-to-equity ratio was 57% as of September 30, 2006, compared to 46% as of June 30, 2006.

Capital Spending

Capital expenditures in the third quarter of 2006 were KRW 908 billion (USD 960 million) compared to KRW 1,380 billion (USD 1,458 million) in the third quarter of 2005, and were mainly used for P7, P8 and our module plant in Nanjing, China.

Utilization and Capacity

Total input capacity on an area basis increased approximately 10% in the third quarter compared to the second quarter of 2006, mainly due to the further ramp up of P7, which has reached an average of 52,000 input sheets per month.

Outlook

The following expectations are based on current information as of October 10, 2006. The Company does not expect to update its expectations until next quarter’s earnings announcement. However, the Company may update its full business outlook, or any portion thereof, at any time for any reason.

“For the fourth quarter of 2006, we anticipate continued growth and an increase in area shipments by a mid-twenties percentage quarter-on-quarter,” commented Mr. Wirahadiraksa. “We expect our average selling price per square meter at the end of the fourth quarter of 2006 to decline by a low single digit percentage, largely due to the continued decline in TV prices. The average ASP per square meter is expected to be flat.”

“Our COGS reduction per square meter will be approximately a mid-single digit percentage in the fourth quarter. Our EBITDA margin for the fourth quarter of 2006 is expected to be a low-teens percentage as a result. We are working on plans to achieve a significantly higher cost down for 2007, in order to better prepare for the anticipated price declines.”

“Our CAPEX guidance for 2006 remains unchanged at KRW 3 trillion. In line with us continuing to take a more prudent approach to capital spending and in anticipation of a difficult first half in 2007, we expect our CAPEX for 2007 to be approximately KRW 1 trillion, substantially lower than that of 2006. This CAPEX will be used for the investment in Gen. 5.5, enhancement of production efficiencies and maintenance of our existing facilities.”

Earnings Conference and Conference Call

LG.Philips LCD will hold a Korean language earnings conference on October 10, 2006 at 4:30 p.m. Korea Standard Time on the 21^st floor, in the International Conference Room of the Korea Exchange Building (KRX). An English language conference call will follow at 9:00 p.m. Korea Standard Time, 8:00 a.m. EDT and 1:00 p.m. GMT. The call-in number is +82 (0)31-810-3001 for both callers in Korea and callers outside of Korea. The confirmation number is 3777. Corresponding slides will be available at the Investor Relations section of the LG.Philips LCD web site: http://www.lgphilips-lcd.com

Investors can listen to the conference call via the Internet at http://www.lgphilips-lcd.com. To listen to the live call, please go to the Investor Relations section of the web site at least 15 minutes prior to the call to register and install any necessary audio software.

For those who are unable to participate in the call, a replay will be available for 30 days after the call. The call-in number is 031-810-3100 for callers in Korea and +82-31-810-3100 for callers outside of Korea. The confirmation number for the replay is 68570#.

About LG.Philips LCD

LG.Philips LCD [NYSE: LPL, KRX: 034220] is a leading manufacturer and supplier of thin film transistor liquid crystal display (TFT-LCD) panels. The Company manufactures TFT-LCD panels in a wide range of sizes and specifications primarily for use in notebook computers, desktop monitors and televisions. Headquartered in Seoul, South Korea, LG.Philips LCD currently operates seven fabrication facilities in Korea and has approximately 21,000 employees in locations around the world.

For more information about the Company, please visit http://www.lgphilips-lcd.com. LG.Philips LCD makes “Technology you can see!”

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Additional information as to factors that may cause actual results to differ materially from our forward-looking statements can be found in our filings with the United States Securities and Exchange Commission.


*Investor Relations Contacts:*

Jay Hong [Korea]		Joshua Hochberg [USA]
LG.Philips LCD		Sloane & Company
Tel: +822-3777-1010		Tel: +1-212-446-1892
Email: jay.hong@lgphilips-lcd.com		Email: jhochberg@sloanepr.com

*Media Contacts:*

Elliot Sloane [USA]		Sue Kim [Korea]
Sloane & Company		LG.Philips LCD
Tel: +1-212-446-1860		Tel: +822-3777-0970
Email: ESloane@sloanepr.com		Email: sue.kim@lgphilips-lcd.com

LG.Philips LCD

CONSOLIDATED STATEMENTS OF INCOME

( In millions of KRW)

(The financial statements are based on unaudited Korean GAAP)


	2006								2005
	Three months ended Sep 30				Nine months ended Sep 30				Three months ended Sep 30				Nine months ended Sep 30
REVENUE	2,772,774		100	%	7,558,906		100	%	2,740,507		100	%	7,112,883		100	%
Cost of goods sold	(3,018,773	)	-109	%	(7,842,081	)	-104	%	(2,367,145	)	-86	%	(6,638,041	)	-93	%

GROSS PROFIT	(245,999	)	-9	%	(283,175	)	-4	%	373,362		14	%	474,842		7	%

Selling, general & administrative	(136,065	)	-5	%	(419,275	)	-6	%	(132,959	)	-5	%	(339,529	)	-5	%

OPERATING INCOME	(382,064	)	-14	%	(702,450	)	-9	%	240,403		9	%	135,313		2	%

Interest income	5,151		0	%	23,536		0	%	15,446		1	%	36,487		1	%
Interest expense	(50,815	)	-2	%	(125,759	)	-2	%	(27,954	)	-1	%	(78,675	)	-1	%
Foreign exchange gain (loss),net	1,368		0	%	(1,043	)	0	%	(2,055	)	0	%	(21,039	)	0	%
Others, net	4,372		0	%	(3,921	)	0	%	(8,881	)	0	%	(11,943	)	0	%

Total other income (expense)	(39,924	)	-1	%	(107,187	)	-1	%	(23,444	)	-1	%	(75,170	)	-1	%

INCOME BEFORE TAX	(421,988	)	-15	%	(809,637	)	-11	%	216,959		8	%	60,143		1	%

Income tax (expense) benefit	101,022		4	%	214,669		3	%	10,013		0	%	129,043		2	%

NET INCOME(LOSS)	(320,966	)	-12	%	(594,968	)	-8	%	226,972		8	%	189,186		3	%

- These financial statements are provided for informational purposes only

LG.Philips LCD

CONSOLIDATED BALANCE SHEET

( In millions of KRW)

(The financial statements are based on unaudited Korean GAAP)


	2006							2005
	Sep 30				Jun 30			Sep 30				Jun 30
ASSETS
Current assets:
Cash and cash equivalents	471,747		3	%	778,877	6	%	2,129,456		16	%	1,330,973		11	%
Trade accounts and notes receivable	1,330,539		10	%	985,798	7	%	1,307,958		10	%	1,215,026		10	%
Inventories	1,148,286		8	%	1,270,899	9	%	724,954		5	%	721,298		6	%
Other current assets	320,707		2	%	378,207	3	%	248,701		2	%	299,725		3	%
Total current assets	3,271,279		24	%	3,413,781	25	%	4,411,069		33	%	3,567,022		30	%

Investments and other non-current assets	703,452		5	%	578,946	4	%	413,959		3	%	350,716		3	%
Property, plant and equipment, net	9,578,309		70	%	9,702,000	70	%	8,548,527		63	%	7,754,666		65	%
Intangible assets, net	181,576		1	%	190,984	1	%	167,933		1	%	171,311		1	%

Total assets	13,734,616		100	%	13,885,711	100	%	13,541,488		100	%	11,843,715		100	%

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:

Short-term debt	672,720		5	%	787,845	6	%	794,504		6	%	631,798		5	%
Trade accounts and notes payable	881,443		6	%	632,011	5	%	730,003		5	%	651,783		6	%
Other payables and accrued liabilities	1,230,405		9	%	1,563,409	11	%	1,816,328		13	%	1,836,142		16	%

Total current liabilities	2,784,568		20	%	2,983,265	21	%	3,340,835		25	%	3,119,723		26	%

Long-term debt	3,806,675		28	%	3,413,995	25	%	2,822,930		21	%	2,957,417		25	%
Other non-current liabilities	71,812		1	%	64,770	0	%	59,528		0	%	54,160		0	%

Total liabilities	6,663,055		49	%	6,462,030	47	%	6,223,293		46	%	6,131,300		52	%

Common Stock and additional paid-in capital	4,064,250		30	%	4,064,250	29	%	4,069,499		30	%	2,668,718		23	%
Retained Earnings	3,013,718		22	%	3,334,684	24	%	3,280,838		24	%	3,053,889		26	%
Capital adjustment	(6,407	)	0	%	24,747	0	%	(32,142	)	0	%	(10,192	)	0	%
Shareholders’ equity	7,071,561		51	%	7,423,681	53	%	7,318,195		54	%	5,712,415		48	%

Total liabilities and shareholders’ equity	13,734,616		100	%	13,885,711	100	%	13,541,488		100	%	11,843,715		100	%

- These financial statements are provided for informational purposes only

LG.Philips LCD

CONSOLIDATED STATEMENTS OF CASH FLOW

( In millions of KRW)

(The financial statements are based on unaudited Korean GAAP)


	2006				2005
	Three months ended Sep 30		Nine months ended Sep 30		Three months ended Sep 30		Nine months ended Sep 30
Net Income	(320,966	)	(594,968	)	226,972		189,186
Depreciation	659,072		1,878,125		440,522		1,254,722
Amortization	12,733		37,954		11,097		34,225
Others	5,052		55,735		29,276		78,389

Operating Cash Flow	355,891		1,376,846		707,867		1,556,522
Net Change in Working Capital	(34,156	)	(683,211	)	55,959		(337,364	)

Change in accounts receivable	(356,037	)	(74,461	)	(95,131	)	(404,252	)
Change in inventory	122,613		(457,501	)	(3,657	)	80,406
Change in accounts payable	253,875		193,604		83,020		150,432
Change in others	(54,607	)	(344,853	)	71,727		(163,950	)

Cash Flow from Operation	321,735		693,635		763,826		1,219,158
Capital Expenditures	(908,087	)	(2,742,791	)	(1,380,277	)	(2,801,669	)

Acquisition of property, plant and equipment	(907,819	)	(2,745,098	)	(1,370,812	)	(2,786,520	)
(Delivery)	(535,936	)	(2,312,646	)	(1,207,522	)	(3,277,936	)
(Other account payables)	(371,883	)	(432,452	)	(163,290	)	491,416
Intangible assets investment	(1,970	)	(5,363	)	(7,720	)	(10,147	)
Others	1,702		7,670		(1,745	)	(5,002	)

Cash Flow before Financing	(586,352	)	(2,049,156	)	(616,451	)	(1,582,511	)
Cash Flow from Financing Activities	279,222		941,451		13,754		949,548
Proceeds from Issuance of common stock	0		0		1,401,180		1,401,180

Net Cash Flow	(307,130	)	(1,107,705	)	798,483		768,217

- These financial statements are provided for informational purposes only

LG.Philips LCD

CONSOLIDATED STATEMENTS OF INCOME

(In millions of KRW)

(The financial statements are based on unaudited US GAAP)


	2006								2005
	Three months ended Sep 30				Nine months ended Sep 30				Three months ended Sep 30				Nine months ended Sep 30
REVENUES	2,772,774		100	%	7,558,906		100	%	2,740,507		100	%	7,112,883		100	%
Cost of goods sold	(3,008,522	)	-109	%	(7,834,174	)	-104	%	(2,364,366	)	-86	%	(6,613,579	)	-93	%

GROSS PROFIT	(235,748	)	-9	%	(275,268	)	-4	%	376,141		14	%	499,304		7	%

Selling, general & administrative	(141,829	)	-5	%	(434,860	)	-6	%	(137,490	)	-5	%	(350,047	)	-5	%

OPERATING INCOME	(377,577	)	-14	%	(710,128	)	-9	%	238,651		9	%	149,257		2	%

Interest income	5,151		0	%	23,536				15,446		1	%	36,487		1	%
Interest expense	(43,979	)	-2	%	(117,672	)	-2	%	(27,451	)	-1	%	(81,149	)	-1	%
Foreign exchange gain (loss), net	5,123		0	%	35,701		0	%	(9,568	)	0	%	(33,016	)	0	%
Others, net	3,343		0	%	19,869		0	%	(1,021	)	0	%	(527	)	0	%

Total other income (expense)	(30,362	)	-1	%	(38,566	)	-1	%	(22,594	)	-1	%	(78,205	)	-1	%

INCOME BEFORE TAX	(407,939	)	-15	%	(748,694	)	-10	%	216,057		8	%	71,052		1	%

Income tax (expense) benefit	100,448		4	%	200,676		3	%	21,952		1	%	110,882		2	%

NET INCOME(LOSS)	(307,491	)	-11	%	(548,018	)	-7	%	238,009		9	%	181,934		3	%

- These financial statements are provided for informational purposes only (Unaudited).

LG.Philips LCD

CONSOLIDATED BALANCE SHEETS

(In millions of KRW)

(The financial statements are based on unaudited US GAAP)


	2006							2005
	Sep 30				Jun 30			Sep 30				Jun 30
ASSETS
Current assets:
Cash and cash equivalents	471,747		3	%	778,877	6	%	2,129,456		16	%	1,330,973		11	%
Trade accounts and notes receivable	1,330,539		10	%	985,798	7	%	1,307,957		10	%	1,215,026		10	%
Inventories	1,147,575		8	%	1,270,142	9	%	723,917		5	%	720,836		6	%
Other current assets	326,424		2	%	388,313	3	%	248,029		2	%	297,800		3	%
Total current assets	3,276,285		24	%	3,423,130	25	%	4,409,359		33	%	3,564,635		30	%

Investments and other non-current assets	710,700		5	%	581,576	4	%	434,719		3	%	361,167		3	%
Property, plant and equipment, net	9,663,242		71	%	9,786,668	71	%	8,578,817		64	%	7,788,439		66	%
Intangible assets, net	45,380		0	%	43,791	0	%	42,341		0	%	36,058		0	%

Total assets	13,695,607		100	%	13,835,165	100	%	13,465,236		100	%	11,750,299		100	%

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt	672,853		5	%	788,349	6	%	794,690		6	%	633,107		5	%
Trade accounts and notes payable	881,443		6	%	632,011	5	%	730,003		5	%	651,783		6	%
Other payables and accrued liabilities	1,236,234		9	%	1,569,747	11	%	1,820,553		14	%	1,840,072		16	%

Total current liabilities	2,790,530		20	%	2,990,107	22	%	3,345,246		25	%	3,124,962		27	%

Long-term debt	3,801,984		28	%	3,415,261	25	%	2,875,674		21	%	3,005,875		26	%
Other non-current liabilities	75,560		1	%	68,199	0	%	61,138		0	%	54,829		0	%

Total liabilities	6,668,074		49	%	6,473,567	47	%	6,282,058		47	%	6,185,666		53	%

Common stock and additional paid-in capital	4,035,331		29	%	4,034,636	29	%	4,032,294		30	%	2,630,379		22	%
Retained earnings	2,994,674		22	%	3,302,164	24	%	3,182,976		24	%	2,944,967		25	%
Capital adjustment	(2,472	)	0	%	24,798	0	%	(32,092	)	0	%	(10,713	)	0	%
Shareholders’ equity	7,027,533		51	%	7,361,598	53	%	7,183,178		53	%	5,564,633		47	%

Total liabilities and shareholders’ equity	13,695,607		100	%	13,835,165	100	%	13,465,236		100	%	11,750,299		100	%

- These financial statements are provided for informational purposes only (Unaudited).

LG.Philips LCD

CONSOLIDATED STATEMENTS OF CASH FLOW

(In millions of KRW)

(The financial statements are based on unaudited US GAAP)


	2006				2005
	Three months ended Sep 30		Nine months ended Sep 30		Three months ended Sep 30		Nine months ended Sep 30
Net Income	(307,491	)	(548,018	)	238,009		181,934
Depreciation	661,929		1,886,696		440,892		1,255,835
Amortization	1,735		4,978		1,436		5,242
Others	1,781		2,059		50,322		109,310

Operating Cash Flow	357,954		1,345,715		730,659		1,552,321
Net Change in Working Capital	(36,219	)	(652,080	)	33,167		(333,163	)

Change in accounts receivable	(356,037	)	(74,461	)	(90,238	)	(456,946	)
Change in inventory	122,567		(457,998	)	(3,080	)	80,273
Change in accounts payable	253,875		193,604		83,021		148,897
Change in others	(56,624	)	(313,225	)	43,464		(105,387	)

Cash Flow from Operation	321,735		693,635		763,826		1,219,158
Capital Expenditures	(908,087	)	(2,742,791	)	(1,380,277	)	(2,801,669	)

Acquisition of property, plant and equipment	(907,819	)	(2,745,098	)	(1,370,812	)	(2,786,520	)
(Delivery)	(535,936	)	(2,312,646	)	(1,207,522	)	(3,277,936	)
(Other account payables)	(371,883	)	(432,452	)	(163,290	)	491,416
Intangible assets investment	(1,970	)	(5,363	)	(7,720	)	(10,147	)
Others	1,702		7,670		(1,745	)	(5,002	)

Cash Flow before Financing	(586,352	)	(2,049,156	)	(616,451	)	(1,582,511	)
Cash Flow from Financing Activities	279,222		941,451		13,754		949,548
Proceeds from Issuance of common stock	0		0		1,401,180		1,401,180

Net Cash Flow	(307,130	)	(1,107,705	)	798,483		768,217

- These financial statements are provided for informational purposes only (Unaudited).

LG.Philips LCD

Net Income Reconciliation to US GAAP

(In billions of KRW)


	2006
	Q3		Q2
Net Income under K GAAP	(321	)	(322	)
US GAAP Adjustments	14		20
Depreciation of PP&E	(1	)	0
Amortization of IPR	10		9
Adjustment of AR discount loss	2		0
Capitalization of financial interests	3		2
Pension expense	1		0
Income tax effect of US GAAP Adjustments	(1	)	(1	)
ESOP	(1	)	(1	)
Convertible bonds (including FX valuation)	6		12
Stock appreciation right	0		0
Cash flow hedge	(4	)
Others	(1	)	(1	)

Net Income under US GAAP	(307	)	(302	)

- These financial statements are provided for informational purposes only (Unaudited).

Q3 06

Earnings Results

October

10, 2006

Attachment 2. Presentation Material

Disclaimer

This presentation contains forward-looking statements. We may also make written or oral forward-looking

statements in our periodic reports to the United States Securities and Exchange Commission and the Korean

Financial Supervisory Service, in our annual report to shareholders, in our proxy statements, in our offering

circulars and prospectuses, in press releases and other written materials and in oral statements made by our

officers, directors or employees to third parties. Statements that are not historical facts, including statements

about our beliefs and expectations, are forward-looking statements. These statements are based on current

plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking

statements speak only as of the date they are made, and we undertake no obligation to update publicly any of

them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. We

caution you that a number of

important factors could cause actual results to differ materially from those contained in any forward-looking

statement. Such factors include, but are not limited to: our highly competitive environment; the cyclical nature of

our industry; our ability to introduce new products on a timely basis; our dependence on growth in the demand

for our products; our ability to successfully execute our expansion strategy; our dependence on key personnel;

and general economic and political conditions, including those related to the TFT-LCD industry; possible

disruptions in business activities caused by natural and human-induced disasters, including terrorist activity and

armed conflict; and fluctuations in foreign currency exchange rates. Additional information as to these and other

factors that may cause actual results to differ materially from our forward-looking statements can be found in our

filings with the Securities and Exchange Commission.

This presentation also includes information regarding our historical financial performance through September

30, 2006, and our expectations regarding future performance as reflected in certain non-GAAP financial measures

as defined by US Securities and Exchange Commission rules. As required by such rules, we have provided a

reconciliation of those measures to the most directly comparable

GAAP measures, which is available on our

investor relations website at http://www.lgphilips-lcd.com

under the file name Q3 06 Earnings Presentation.

Agenda

Q3 06 Earnings Results

Performance Highlights

Outlook

Gen 5.5 located in P8

47”W

32”W

37”W

42”W

Q3 06 Earnings Results

Q3 06 Income Statement

Margin (%)

Q3 06 Q2 06 Q3 05 QoQ change YoY change

KRW b

Revenue

COGS

Gross profit

Operating income

EBITDA

Income before tax

Net income

28%

(57%)

20%

19%

21%

Gross margin

Operating margin

EBITDA margin

Net margin

Source: Unaudited, Company financials

K GAAP (Consolidated)

(23)

(14)

(20)

(9)

(16)

(14)

2,315

2,529

(214)

(372)

243

(402)

(322)

(9)

(14)

(12)

2,773

3,019

(246)

(382)

295

(422)

(321)

2,741

2,367

374

240

681

217

227

Q3 06 Balance Sheet

Q3 06 Q2 06 Q3 05 QoQ change YoY change

KRW b

Assets

Cash and cash equivalents

Inventory

Liabilities

Short-term debt

Long-term debt

Shareholders’

equity

Net debt to equity ratio (%)

(78%)

58%

(15%)

35%

(3%)

(1%)

(39%)

(10%)

(15%)

12%

(5%)

K GAAP (Consolidated)

Source: Unaudited, Company financials

13,735

472

1,148

6,663

673

3,807

7,072

13,541

2,129

725

6,223

795

2,823

7,318

13,886

779

1,271

6,462

788

3,414

7,424

Q3 06 Cash Flow

Q3 06 Q2 06 Q3 05 QoQ change YoY change

KRW b

Net income

Depreciation & Amortization

Others

Net change in working capital

Cash flow from operations

CAPEX

Cash flow before financing

Financing activities

Proceeds from issuance of common stock

Net change in cash

K GAAP (Consolidated)

Source: Unaudited, Company financials

(548)

220

(24)

(90)

(442)

472

266

(1,401)

(1,105)

(29)

183

211

293

(319)

(26)

(321)

672

(34)

322

(908)

(586)

279

(307)

(322)

616

(217)

111

(990)

(879)

598

(281)

227

452

764

(1,380)

(616)

1,401

798

Performance Highlights

Shipments and ASP

Total K m²

ASP**/m²

(USD)

Source: Company financials

Net display area shipped

** Quarterly average selling price per square meter of net display area shipped

Display area shipment in K m

ASP per m (USD)

1,248

1,343

1,274

1,485

1,993

$2,121

$2,112

$1,953

$1,598

$1,430

1,000

2,000

3,000

4,000

5,000

Q3 05

Q1 06

$1,000

$2,000

Q3 05

Q2 06

Q3 06

Revenue: Product Mix

Source: Company financials

(Based on USD)

Notebooks

Monitors

TVs

Applications

29%

48%

45%

26%

21%

22%

48%

26%

21%

Q3 06 Capacity Update

P7 has achieved an average of 52K

input sheets per month for the quarter

Source: Company financials

P1-P3

500

1,000

1,500

2,000

2,500

3,000

Q3 05

Q1 06

Unit: Quarterly input capacity

by Area (K m²

)

405

412

424

421

409

362

368

367

359

389

481

490

487

494

507

838

929

1,082

1,092

216

452

682

2,086

2,199

2,576

2,808

3,079

Cash ROIC

Source: Unaudited, Company financials

* IC (Invested Capital) equals average of net debt and equity for the designated period ; Quarterly ratios are annualized

K GAAP (Consolidated)

EBITDA margin

Sales / IC*

Cash ROIC

25%

28%

142%   

141%   

35%

39%

Q3 05      

Q4

Q1 06          Q2     

27%

112%   

30%

Q3

10%

98%

10%

Q3 05     

Q4

Q1 06      

Q2

Q3

Q3 05      

Q4      Q1 06      

Q2

Q3

11%

112%  

12%

Outlook

Outlook

Source: Company financials, Delivery basis

Capex schedule (KRW b)

1,211

3,208

676

1,114

1,245

2005

2006 (E)

Others

Future production facilities

4,419

3,035

Total Shipments in m2

Q4 06 vs. Q3 06

: Mid twenties (%)

ASP per m shipped

End of Q4 06 vs. End of Q3 06

: Low-single digit (%)

–

TV: Mid-single digit (%)

–

IT: Flat (%)

Average Q4 06 vs. Average Q3 06

Flat (%)

–

TV: Mid-single digit (%)

–

IT: Mid-single digit (%)

COGS per m

Q4 06 : Mid-single digit (%)

EBITDA Margin

Q4 06 : Low teens

(%)

CAPEX

2006 (E): KRW 3.0 trillion

2007 (E): Approximately KRW 1.0 trillion

Questions and Answers

Appendix

(20)

(13)

(11)

Net Margin

(14)

EBITDA Margin

(23)

(16)

(14)

Operating Margin

(22)

(9)

Gross Margin

Margin (%)

238

(302)

(307)

Net Income

216

(382)

(408)

Income before tax

(56%)

16%

672

256

297

EBITDA

239

(379)

(378)

Operating Income

377

(216)

(236)

Gross Profit

27%

19%

2,364

2,531

3,009

COGS

20%

2,741

2,315

2,773

Revenues

YoY Change

QoQ Change

Q3 05

Q2 06

Q3 06

KRW b

US GAAP Income Statement

Source: Unaudited, Company financials

US GAAP Balance Sheet

Source: Unaudited, Company financials

Net debt to equity ratio(%)

(2%)

(5%)

7,183

7,362

7,028

Shareholders’

equity

32%

11%

2,876

3,415

3,802

Long term debt

(15%)

795

788

673

Short term debt

6,282

6,473

6,668

Liabilities

59%

(10%)

724

1,270

1,148

Inventory

(78%)

(39%)

2,129

779

472

Cash and cash equivalent

(1%)

13,465

13,835

13,696

Assets

YoY Change

QoQ Change

Q3 05

Q2 06

Q3 06

KRW b

Others

US GAAP Cash Flow

Source: Unaudited, Company financials

(1,105)

(26)

798

(281)

(307)

Net Change in cash

(1,401)

1,401

Proceeds from Issuance of common stock

266

(319)

598

279

Financing Activities

293

(616)

(879)

(586)

Cash flow before financing

472

(1,380)

(990)

(908)

CAPEX

(442)

211

764

111

322

Cash flow from Operation

(68)

170

(206)

(36)

Net change in working capital

(51)

(10)

222

442

608

664

Depreciation & Amortization

(545)

(5)

238

(302)

(307)

Net Income

YoY Change

QoQ Change

Q3 05

Q2 06

Q3 06

KRW b

Net Income Reconciliation to US GAAP

Source: Unaudited, Company financials

(302)

(307)

Net Income under US GAAP

(1)

Others

(4)

Cash flow hedge

Stock appreciation right

Convertible bonds (including FX valuation)

(1)

ESOP

(1)

Income tax effect of US GAAP Adjustments

Pension expense

Capitalization of financial interests

Adjustment of AR discount loss

Amortization of IPR

(1)

Depreciation of PP&E

US GAAP Adjustments

(322)

(321)

Net Income under K GAAP

Q2 06

Q3 06

KRW b

EBITDA Reconciliation

(375)

672

256

297

EBITDA(1+2+3+4+5+6+7)

(1)

7. Amortization of debt issuance cost

6. Amortization of Intangible Asset

221

441

607

662

5. Depreciation of PP&E

(78)

(20)

(22)

(80)

(100)

4. Provision (benefit) for income taxes

(15)

(7)

(5)

3. Interest Income

2. Interest Expense

(545)

(5)

238

(302)

(307)

1. Net Income

YoY Change

QoQ Change

Q3 05

Q2 06

Q3 06

US GAAP (KRW b)

(386)

681

243

295

EBITDA(1+2+3+4+5+6+7)

7. Amortization of debt issuance cost

(1)

6. Amortization of Intangible Asset

218

441

602

659

5. Depreciation of PP&E

(91)

(21)

(10)

(80)

(101)

4. Provision (benefit) for income taxes

(16)

(8)

(5)

3. Interest Income

2. Interest Expense

(548)

227

(322)

(321)

1. Net Income

YoY Change

QoQ Change

Q3 05

Q2 06

Q3 06

K GAAP (KRW b)

EBITDA Reconciliation (Continued)

EBITDA is defined as net income (loss) plus: interest income (expense); provision (benefit) for income taxes;

depreciation of property, plant and equipment; amortization of intangible assets; and amortization of debt

issuance cost. EBITDA is a key financial measure used by our senior management to internally evaluate the

performance of our business and for other required or discretionary purposes. Specifically, our significant capital

assets are in different stages of depreciation, and because we do not have separate operating divisions, our

senior management uses EBITDA internally to measure the performance of these assets on a comparable basis.

We also believe that the presentation of EBITDA will enhance an investor’s understanding of our operating

performance as we believe it is commonly reported and widely used by analysts and investors in our industry. It

also provides useful information for comparison on a more comparable basis of our operating performance and

those of our competitors, who follow different accounting policies. For example, depreciation on most of our

equipment is made based on a four-year useful life while most of our competitors use different depreciation

schedules from our own. EBITDA is not a measure determined in accordance with U.S. GAAP. EBITDA should not

be considered as an alternative to operating income, cash flows from operating activities or net income, as

determined in accordance with U.S. GAAP. Our calculation of EBITDA may not be comparable to similarly titled

measures reported by other companies.

LG.Philips LCD makes

Technology you can see!

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	LG.Philips LCD Co., Ltd.
	(Registrant)

Date: October 10, 2006	By:	/s/ Ron H. Wirahadiraksa
		(Signature)
	Name:	Ron H. Wirahadiraksa
	Title:	Joint Representative Director/
		President & Chief Financial Officer