Lg Chem Ltd. · KRX:051910
Lg Chem — Q4 2017 Earnings Presentation
16 slides from Lg Chem's earnings presentation, Jan 31, 2018
Slide 1: 4Q 2017 Business Results & Outlook
4Q 2017 Business Results & Outlook January 31, 2018
Slide 2: Disclaimer
Disclaimer The business results for the fourth quarter of 2017 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. The business results are subject to the K-IFRS(Korea International Fi
Slide 3: Table of Contents
Table of Contents 2017 Business Results 1 4Q 2017 Business Results 2-3 Divisional Results & Outlook 4-6 2018 Business Plan 7 Appendix 8-13 / 12
Slide 4: 2017 Business Results
2017 Business Results Sales Operating Profit (Unit: KRW tn) (Unit: KRW bn) 25.7 Classification ’16 ’17 YoY(%) +24.4% 20.7 1,992 2,929 LG Chem +47.0% (9.6) (11.4) Basic Basic 2,139 2,808 Materials & 17.4 Materials & +31.3% Chemicals Chemicals (14.8) (16.1) Energy 14.4 Energy -49 29 Solutions T/B Solu
Slide 5: 4Q 2017 Business Results: Income Statements
4Q 2017 Business Results Income Statements (Unit: KRW bn) Classification 4Q ’16 3Q ’17 4Q ’17 YoY QoQ Sales 5,512 6,397 6,432 16.7% 0.5% Operating Profit 462 790 615 33.2% -22.1% (%) (8.4) (12.3) (9.6) EBITDA 805 1,137 972 20.8% -14.5% (%) (14.6) (17.8) (15.1) Pre-tax Income 358 703 434 21.1% -38.3%
Slide 6: 4Q 2017 Business Results: Financial Status
4Q 2017 Business Results Financial Status Financial Position Financial Ratios (Unit: KRW bn) Classification ’16 ’17 Change ’16 ’17 (End) (End) Classification Change (End) (End) Asset 20,487 25,041 22.2% Borrowings / 20.6 18.6 -2.0%p Equity (%) Cash and 2,207 2,779 25.9% equivalents Net borrowings/ 4
Slide 7: Divisional Results & Outlook: Basic Materials & Chemicals
Divisional Results & Outlook Basic Materials & Chemicals Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Despite the impact of strong KRW and increase in maintenance expenses, historical high 4Q results were achieved on the back of 4,316 4,297 solid performance from
Slide 8: Divisional Results & Outlook: I&E Materials/Energy Solutions
Divisional Results & Outlook I&E Materials/Energy Solutions Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Energy : Quarterly sales recorded historical high and positive Solutions operating income continued thanks to the brisk sales of EVs as well as ESS sales growt
Slide 9: Divisional Results & Outlook: Life Sciences/Farm Hannong
Divisional Results & Outlook Life Sciences/Farm Hannong Business results Divisional Results Analysis & Outlook (Unit: KRW bn) Analysis • Life : Declined profitability due to strong KRW, increased Sciences marketing expenses for new products as well as R&D expenses for new drug development 139 Life S
Slide 10: 2018 Business Plan: Business & CAPEX Plan
2018 Business Plan Business & CAPEX Plan Business Plan CAPEX Plan (Unit: KRW tn) (Unit: KRW tn) Classification ’17 ’18 Plan Change Classification ’17 ’18 Plan Change Sales 25.7 26.9 +4.7% LG Chem 2.5 3.8 +52% Basic Materials 17.4 16.8 -3.6% New/Expansion 1.2 2.2 +85% & Chemicals Energy 4.6 6.1 +34.2
Slide 11: Divisional Sales & Operating Profit
Appendix Divisional Sales & Operating Profit (Unit: KRW bn) 2016 2017 Classification 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 4,874 5,219 5,054 5,512 20,659 6,487 6,382 6,397 6,432 25,698 Operating Profit 458 612 460 462 1,992 797 727 790 615 2,929 (%) 9.4% 11.7% 9.1% 8.4% 9.6% 12.3% 11.4% 12.3% 9.
Slide 12: Borrowings & Cash Flow
Appendix Borrowings & Cash Flow Borrowings Cash Flow (Unit : KRW bn) (Unit: KRW bn) ’16 ’17 Classification ’16 ’17 Classification (Acc.) (Acc.) (End) (End) Total Beginning Cash 2,694 2,207 (Overseas Subsidiaries) 2,891 3,045 (1,892) (1,686) Operating/Investing 524 1,337 KRW Currency 521 1,326 Operat
Slide 13: CAPEX & R&D expenses
Appendix CAPEX & R&D expenses CAPEX R&D expenses (Unit: KRW bn) (Unit: KRW bn) Classification ’15 ’16 ’17 Classification ’15 ’16 ’17 (Acc.) (Acc.) (Acc.) (Acc.) (Acc.) (Acc.) Basic New / Expansion 328 103 324 Basic Materials 132 150 164 Materials & Maintenance 385 289 345 & Chemicals Chemicals Total
Slide 14: Ethylene/PE Demand & Supply
Appendix Ethylene/PE Demand & Supply Ethylene Polyethylene (Unit : Million Tons) (Unit : Million Tons) 200 100% 150 140% 150 90% 100 120% 100 80% 100% 50 50 70% 80% * 0 60% 0 60% '15 '16 '17 '18(e) '19(e) '20(e) '15 '16 '17 '18(e) '19(e) '20(e) Demand (Global) Supply (Global) Demand/Supply (Global,%
Slide 15: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 2,978 2,719 1,285 1,305 1,273 1,942 1,963 1,157 1,230 1,935 1,898 1,172 1,221 1,196 1,180 1,896 1,124 1,139 1,167 1,165 1,100 1,170 1,677 1,745 1,141 1,148 1,656 1,095 1,129 1,090 1,099 1,133 1,066 1,673 983 1,473 1,028 1,432 1,562 936
Slide 16: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 3,233 1,323 3,038 3,038 1,316 1,345 2,940 1,321 1,280 1,291 1,310 1,235 1,230 1,223 1,235 1,238 1,247 2,663 1,188 1,187 1,205 1,205 1,153 1,194 1,133 1,147 1,128 1,176 1,155 1,173 1,166 1,172 1,163 1,145 1,139 1,115 1,046 1,028 1,096 2,28