LG Chem Ltd. · KRX:051910
LG Chem — Q3 2004 Earnings Presentation
12 slides from LG Chem's earnings presentation, Oct 28, 2004
Slide 1: 3Q 2004 Results & Business Outlook
3Q 2004 Results & Business Outlook October 28, 2004
Slide 2: Table of Contents
Table of Contents 3Q Results 1 Business Results & Outlook 3 Appendix 7 For the sake of our investors, this material was prepared when our external auditor did not complete its audit of the financial statements for the third quarter of 2004. Hence, parts of this material are subject to change based o
Slide 3: '04 3Q Results: Sales
’04 3Q Results Sales Quarterly Sales Results Review by Business (KRW billion) 1,861 (6%↑) Chemicals & Polymers (38%↑) 1,754 - The sale prices increased sharply because of hike in 1,350 raw material price on top of soaring oil prices and the 58% strong seasonal demand. (QoQ : PVC 7%, ABS 33%) 54% ☞
Slide 4: '04 3Q Results: Operating Profit
’04 3Q Results Operating Profit Quarterly Operating Profit Results Review by Business (KRW billion) Operating Profit Chemicals & Polymers O/P Margin - Overall strength in demand and widened spreads (Sale prices-raw material prices) resulted in a surge 135 in operating profits. ( 94%↑YoY ) 134 ☞ Op
Slide 5: Business Results & Outlook (Petrochemicals)
Business Results & Outlook Chemicals & Polymers (Petrochemicals) The increase in sale prices associated with strong raw material costs (Ethylene, EDC, etc.) and seasonally high demand contributed to a substantial improvement in profitability. Business Results (KRW billion) Results Analysis & Outlook
Slide 6: Business Results & Outlook (Performance Polymer)
Business Results & Outlook Chemicals & Polymers (Performance Polymer) Bullish overseas demand and the moderate increase of raw material costs (AN and BD) resulted in improved margins and operating profits. Business Results Results Analysis & Outlook (KRW billion) • Results Analysis (3Q) 521 432 - Sh
Slide 7: Business Results & Outlook: Industrial Materials
Business Results & Outlook Industrial Materials Although sales rose in line with increased exports, sluggish domestic consumption and a hike in raw material costs lowered operating profits. Business Results Results Analysis & Outlook (KRW billion) • Results Analysis (3Q) 534 - Increased sales of PVC
Slide 8: Business Results & Outlook: Information & Electronic Materials
Business Results & Outlook Information & Electronic Materials Despite sharp increase in sales resulted from new capacity expansion of battery and polarizer production lines, increased burden on depreciation expenses and higher raw material costs hurt profitability. Business Results Results Analysis
Slide 9: Appendix: BS & Cash Flow
Appendix BS & Cash Flow (Unit : KRW billion, %) (Unit : KRW billion) 2004 B/S ’03.12 ’04.09 ’04.12(E) 2003 1Q~3Q 2004(E) Assets 4,761.7 5,480.2 5,472.0 CASH OUT 1,041.2 1,081.4 1,156.2 Accounts and notes receivable (net)1) 392.9 533.6 459.0 Inventories 379.0 566.9 472.2 Investment 841.4 453.0 720.6
Slide 10: Appendix: '04 3Q Sales & Operating Profit
Appendix ’04 3Q Sales & Operating Profit (KRW billion) Sales Operating Profit ’03 ’04 1Q ’04 2Q ’04 3Q ’04 (E) ’03 ’04 1Q ’04 2Q ’04 3Q ’04 (E) Chemicals & Polymers 3,261.3 936,6 988.7 1,112.9 3,677.8 228.1 110.1 85.6 102.2 351.0 PVC/Plasticizer 1,220.1 347.3 364.3 378.6 105.4 53.3 43.0 32.1 Acrylat
Slide 11: Appendix: Balance and estimation of borrowings
Appendix Balance and estimation of borrowings (Unit : KRW billion, %) Balance Dec 31, 2004 Dec 31, 2003 Sep 30, 2004 Change Total 1,706.0 2,119.8 2,076.2 413.8 (%) (100) (100) (100) KRW Currency 1,421.0 1,758.7 1,684.4 337.7 (%) (83) (83) (81) C P 65.0 318.0 253.0 244.0 C B 1,100.0 1,200,0 100.0 1,2
Slide 12: Appendix: CAPEX Plan & Results
Appendix CAPEX Plan & Results (KRW billion) ’03 Result ’04 Plan ’04 1~3Q Result New/Expansion 43.7 33.6 9.2 Chemicals & Maintenance 51.4 65.6 34.1 Polymers Equity Investment 11.5 26.4 5.7 106.6 125.6 49.0 Total New/Expansion 9.4 10.0 3.5 Industrial Maintenance 39.0 50.7 27.3 Materials Equity Investm