Lg Chem Ltd. · KRX:051910
Lg Chem — Q3 2008 Earnings Presentation
16 slides from Lg Chem's earnings presentation, Oct 16, 2008
Slide 1: 3Q 2008 Business Results & Outlook
3Q 2008 Business Results & Outlook 2008. 10. 16
Slide 2: The business results for the 3rd quarter of 2008 currently under audit review are
The business results for the 3rd quarter of 2008 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 Quarterly Business Results 1 3Q 2008 Business Results 3 Divisional Results & Outlook 5 Appendix 8
Slide 4: Quarterly Business Results
Quarterly Business Results Consolidated Non-Consolidated (Unit:KRW bn) (Unit:KRW bn) 4.39tn 4.58tn 4.06tn 3.74tn 3.57tn 527 481 452 443 374 2.77tn 253 '07 3Q '08 2Q '08 3Q '07 3Q '08 2Q '08 3Q Sales OP Sales OP 1 /11
Slide 5: Quarterly Business Results
Quarterly Business Results LGC + LGPC 4.06tn 3.74tn 3.45tn 3.10tn 3.02tn 481 2.90tn 443 2.59tn 379 253 340 253 245 ' 071Q 2Q 3Q 4Q ' 081Q 2Q 3Q Sales OP
Slide 6: 3Q 2008 Business Results: Income Statements
3Q 2008 Business Results Income Statements Consolidated Non-Consolidated (Unit : KRW bn) ’07 3Q ’08 3Q ’08 2Q YoY ’07 3Q ’08 3Q ’08 2Q YoY Sales 3,566 4,581 4,386 28.5% 2,767 4,065 3,738 46.9% Operating Profit 374 452 527 253 443 481 20.8% 75.4% (%) (10.5) (9.9) (12.0) (9.1) (10.9) (12.9) Recurring
Slide 7: 3Q 2008 Business Results: Balance Sheets
3Q 2008 Business Results Balance Sheets Consolidated Non-Consolidated (Unit : KRW bn) ’07 ’08.3Q ’07 ’08.3Q Assets 8,551 10,588 7,050 8,510 (Cash and equivalents) 591 567 466 408 Liabilities 4,507 5,634 3,172 3,726 (Borrowings) 2,368 3,031 1,362 1,444 Shareholder’s 4,044 4,955 3,878 4,785 Equity Tot
Slide 8: Divisional Results & Outlook: Petrochemicals
Divisional Results & Outlook Petrochemicals(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 3,380 ▣ Oil price started to fall from August and reflected into product ABS/EP 3,131 prices immediately. But high Naphtha cost (input lagging effects) 27% worsened profitability. 2,396 31% N
Slide 9: Oil Price Trend
Oil Price Trend ▶ 2005 ~ 2008 Monthly Naphtha - WTI Trend 단위 : $/MT Unit : $/bbl Jun ‘08 Jul ‘08 1240 WTI : $135 WTI : $134 140 Date WTI Remark Naph: $1,160 Naph: $1,147 7/3 $145.30 Year peak NAPHTHA W TI 7/16 $134.60 2Q release day 130 May ’08 WTI : $126 1040 Naph: $1,034 120 110 840 Nov.’07 WTI :
Slide 10: Divisional Results & Outlook: I & E Materials
Divisional Results & Outlook I & E Materials(Consolidated) Business results Analysis (Unit:KRW bn) • Analysis 654 654 595 ▣ Electronics & opticals 23% 22% - Maintained solid sales/profit despite reducing production of some panel makers 28% Battery ▣ Battery - Cylindrical : Continued supply shortage
Slide 11: Divisional Results & Outlook: Industrial Materials
Divisional Results & Outlook Industrial Materials(Consolidated) Business results Analysis (Unit:KRW bn) 662 • Analysis 619 560 ▣ Decrease in sales - AMS : impact of Hyundai motor’s strike 41% 45% - L S : U.S construction industry slowdown Living Solutions/ 42% Decrease in demand relevant to Olympic
Slide 12: Appendix: Sales & Operating Profit (Consolidated)
Appendix Sales & Operating Profit(Consolidated) (Unit: KRW bn) 2007 2008 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 3,041 3,384 3,566 3,535 13,525 4,014 4,386 4,581 12,981 Operating Profit 258 292 374 263 1,187 401 527 452 1,380 Petrochemicals 2,038 2,300 2,396 2,381 9,114 2,835 3,131 3,380 9,347 NCC
Slide 13: Appendix: Sales & Operating Profit (Non-Consolidated)
Appendix Sales & Operating Profit(Non-Consolidated) (Unit: KRW bn) 2007 2008 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Sales 2,380 2,645 2,767 3,004 10,795 3,448 3,738 4,065 11,251 Operating Profit 127 163 253 221 764 379 481 443 1,303 Petrochemicals 1,498 1,647 1,743 1,906 6,794 2,397 2,607 2,961 7,964 N
Slide 14: Appendix: Borrowings & Cash Flow (Non-consolidated)
Appendix Borrowings & Cash Flow(Non-consolidated) Borrowings Cash Flow (Unit : KRW bn) (Unit : KRW bn) Balance ’08 (P) ’07 ’08.3Q ’07 ’08.3Q Changes 1,362 1,444 82 1,315 Beginning 116 466 Total (100%) (100%) (100%) Operating/Investing 647 186 KRW 1,033 1,153 120 1,000 Net Income 686 945 Currency (76
Slide 15: Appendix: Capex Plan & Results (Non-consolidated)
Appendix Capex Plan & Results(Non-consolidated) (Unit : KRW bn) ’06 Results ’07 Results ’08 Plan ’08 3Q Results New/Expansion 118 142 156 197 Maintenance 84 68 95 63 Petrochemicals Equity Investment 39 16 3 Total 241 227 253 260 New/Expansion 122 42 231 123 I&E Maintenance 38 36 45 34 Materials Equi
Slide 16: Appendix: Price Trends
Appendix Price Trends (Unit:U$/MT) (Unit:U$/MT) 1,8001,858 1,720 1718 1,600 2,109 1,496 1,681 2,032 1,632 1,756 1,961 1,364 1,322 1,364 1381 1,296 1,477 1,462 1,733 1,973 1,371 1,688 1,199 1,377 1,586 1,586 1,569 1,638 1,111 1,213 1,331 1,294 1,284 1,305 1,307 1,480 1,203 1,036 1,384 1,635 1,624 1,7