Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2007 Earnings Presentation
16 slides from Lg Chem's earnings presentation, Jan 29, 2008
Slide 1: 4Q 2007 Business Results & Outlook
4Q 2007 Business Results & Outlook 2008. 1. 29
Slide 2: The business results for the 4th quarter of 2007 currently under audit review are
The business results for the 4th quarter of 2007 currently under audit review are presented here for investors’ convenience. Hence, please be advised that some of their contents may be altered in the course of audit. Forecasts and projections contained in this material are based on current business
Slide 3: Table of Contents
Table of Contents 2007 Quarterly Results 1 4Q 2007 Business Results 2 Divisional Results & Outlook 4 2008 Business Plan 7 Appendix 9
Slide 4: Quarterly Business Results
Quarterly Business Results Non-Consolidated Consolidated (Unit:KRW bn) (Unit:KRW bn) 3.57tn 3.56tn 3.38tn 3.00tn 3.04tn 374.1 2.77tn 2.64tn 292.1 2.38tn 252.5 258.1 257.3 221.2 162.9 127.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Sales Operating Profit Sales Operating Profit 1 / 12
Slide 5: 4Q 2007 Business Results Income Statements
4Q 2007 Business Results Income Statements Non-Consolidated Consolidated (Unit : KRW bn) ’06 4Q ’07 4Q ’07 3Q YoY ’06 4Q ’07 4Q ’07 3Q YoY Sales 2,418.2 3,003.8 2,766.6 24.2% 2,874.2 3,563.4 3,565.9 24.0% Operating Profit 112.3 221.2 252.5 228.4 257.3 374.1 97.0% 12.7% (%) (4.6) (7.4) (9.1) (7.9) (7
Slide 6: 4Q 2007 Business Results Income Statements
4Q 2007 Business Results Income Statements Non-Consolidated Consolidated (Unit:KRW bn) (Unit:KRW bn) 3.38조 13.6tn 3.04조 3,741 11.5tn 3,339 10.8tn 1,181.5 ◆ 2,921 9.3tn 2,581 2,573 763.6 674.7 ◆ ◆ 333.9 ◆ 2006 2007 1분기 2006 2분기 3분기 2007 4분기 SALES OP SALES OP Recurring 3,953 8,224 Recurring 6,162 10,6
Slide 7: 4Q 2007 Business Results Balance Sheets
4Q 2007 Business Results Balance Sheets Non-Consolidated Consolidated (Unit : KRW bn) ’06 ’07 ’06 ’07 Assets 5,806.5 7,050.0 7,638.5 8,515.6 (Cash and equivalents) 115.8 466.4 387.2 597.8 Liabilities 3,189.3 3,171.8 4,360.7 4,515.6 (Borrowings) 1,585.3 1,361.6 2,412.1 2,348.2 Shareholder’s Equity 2,
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals Business results Analysis (Unit:KRW bn) • Analysis A BS / E P 1,905.5 ▣ Increase in sales & profit of NCC/PO attributable to the merger 1,742.8 with LGPC NCC/ PO 1,508.2 26% 29% ▣ Partial pass-through of input cost hikes to ASP · PVC : U$ 1,011/mt (’07 3Q)
Slide 9: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials Business results Analysis (Unit:KRW bn) • Analysis 601.6 590.1 ▣ Battery - Cylindrical : Solid profit given tight supply-demand condition 30% 29% - Prismatic : Rising utilization in line with sales increase to LGE Battery 430.6 ▣ Electronic & optical 29%
Slide 10: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials Business results Analysis (Unit:KRW bn) • Analysis 571.5 ▣ Decline in HS earnings as a result of prolonged sluggish real 546.9 505.1 estate market Liv ing ▣ One-off restructuring expenses S o lu tio ns / 36% 41% Au to mo tiv e 38% - Consolidating low
Slide 11: 2008 Business Plan: Divisional Plan
2008 Business Plan Divisional Plan Business plan Key issue (Unit: KRW bn) Non- ▣ Petrochemicals Consolidated • NCC/PO : Internal turnaround activities, Synergy effect from merger Consolidated • ABS : Internal turnaround activities • PVC : Debottlenecking in China(PVC: April, VCM: June) SALES 12,100
Slide 12: 2008 Business Plan: Cash Flow & CAPEX Plan
2008 Business Plan Cash Flow & CAPEX Plan Cash Flow CAPEX (Unit : KRW bn) (Unit : KRW bn) Key Investment Item Amount Item Amount (Unit : KRW bn) Cash-in 1,624.0 CAPEX 805.1 ▣ Petrochemicals 155.6 Net Income, etc. 1,192.5 New / Expansion 422.9 (BPA expansion etc.) Depreciation 431.5 Type Maintenance
Slide 13: Appendix: Sales & Operating Profit
Appendix Sales & Operating Profit (Unit : KRW bn) 2006 2007 1Q 2Q 3Q 4Q Sum 1Q 2Q 3Q 4Q Sum Sales 2,129.1 2,272.5 2,482.5 2,418.2 9,302.3 2,380.0 2,644.9 2,766.6 3,003.8 10,795.3 Operating Profit 65.6 48.1 107.1 112.3 333.9 127.0 162.9 252.5 221.2 763.6 Petrochemicals 1,364.8 1,429.6 1,582.2 1,508.2
Slide 14: Appendix: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’08 (P) ’06 ’07 ’06 ’07 Changes 1,585.3 1,361.6 △223.7 1,315.2 Beginning 371.0 115.8 Total (100%) (100%) (100%) Operating/Investing 115.8 644.9 KRW 1,269.2 1,033.2 △236.0 1,000.2 (80%) (76%) (76%) Net Income
Slide 15: Appendix: Capex Plan & Results
Appendix Capex Plan & Results (Unit : KRW bn) ’05 Results ’06 Results ’07 Plan ’07 Results New/Expansion 23.7 118.2 180.6 142.2 Maintenance 69.1 83.6 59.8 68.2 Petrochemicals Equity Investment 41.2 39.0 7.5 16.4 Total 134.0 240.8 247.9 226.7 New/Expansion 17.1 14.5 44.9 10.3 Industrial Maintenance 4
Slide 16: Appendix: Price Trends
Appendix Price Trends Vinyls Styrenics (Unit:U$/MT) (Unit:U$/MT) 1,423 1,7331,725 1,331 1,688 1,638 1,5861,5861,584 1,206 1,203 1,480 1,437 1,1291,151 1,412 1,3641,384 1,364 1,3491,3731,3471,340 1,067 1,0601,090 1,050 1,2711,3031,277 970 1011 1025 1,185 1,160 887 834 910 928 983 1,096 841 1,075 1,04