Lg Chem Ltd. · KRX:051910
Lg Chem — Q1 2020 Earnings Presentation
19 slides from Lg Chem's earnings presentation, Apr 28, 2020
Slide 1: 1Q 2020 Business Results & Outlook
April 28, 2020 1Q 2020 Business Results & Outlook
Slide 2: Agenda
1Q 2020 Earnings Summary 4~5 Results & Outlook by Business 6~9 Appendix 10~18 - Sales & Operating Profit by Business - Income Statements / Financial Position / Cash Flows - Dividend Summary - Capex / R&D Expenses - Ethylene / PE Demand & Supply - Quarterly / Monthly Price Trends
Slide 3: Disclaimer
The business results 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 Financial Reporting Standards). Forecasts an
Slide 4: 1Q 2020 Business Results: Income Statements
1Q 2020 Business Results Income Statements (Unit:KRW bn) 2019 2020 YoY QoQ 1Q 2Q 3Q 4Q 1Q Sales 6,622 7,163 7,334 7,451 7,116 +7.5% -4.5% OP 281 279 392 -13 237 -15.8% Turn a profit (%) 4.2% 3.9% 5.3% -0.2% 3.3% EBITDA 686 736 869 495 765 +11.5% +54.6% (%) 10.4% 10.3% 11.8% 6.6% 10.8% Pre-tax Income
Slide 5: 1Q 2020 Business Results: Financial Position
1Q 2020 Business Results Financial Position Balance Sheet Financial Ratios (Unit:KRW tn) (Unit:%) 2018 2019 1Q 2020 2018 2019 1Q 2020 Liabilities / Assets 28.94 34.02 37.12 67.1% 95.7% 113.1% Equity Cash and 2.56 1.92 2.80 Debts / Equity 30.7% 48.4% 66.3% Equivalents Net Debts / Liabilities 11.62 16
Slide 6: Results & Outlook by Business: Petrochemicals
Results & Outlook by Business Petrochemicals (Unit:KRW bn) Sales 3,936 3,965 3,898 3,749 3,696 NCC/PO 32% 33% 30% 34% 34% PVC/Plasticizer 16% 14% 14% 14% 15% ABS 31% 31% 30% 29% Acrylate/SAP 27% Rubber/ 12% 12% 12% 12% 13% Specialty Polymers 11% 11% 11% 11% 11% 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 202
Slide 7: Results & Outlook by Business: Energy Solutions
Results & Outlook by Business Energy Solutions (Unit:KRW bn) 2,481 Energy 2,210 2,261 Solutions 2,009 1,650 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 Operating Profit △148 △128 71 Δ250 Δ52 (%) (△9.0%) (△6.4%) (3.2%) (Δ10.1%) (Δ2.3%) [Analysis] [Outlook] On top of the ramp-up of new EV battery produc
Slide 8: Results & Outlook by Business: Advanced Materials
Results & Outlook by Business Advanced Materials (Unit:KRW bn) Advanced 1,191 1,217 1,188 1,174 1,107 Materials 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 Operating Profit 8 29 45 26 62 (%) (0.7%) (2.4%) (3.8%) (2.2%) (5.6%) [Analysis] [Outlook] Due to the seasonality of front industry and COVID-19,
Slide 9: Results & Outlook by Business: Life Sciences / Farm Hannong
Results & Outlook by Business Life Sciences / Farm Hannong (Unit:KRW bn) 144 159 Life Sciences 154 166 164 Farm Hannong 228 221 170 94 99 1Q 2019 2Q 2019 3Q 2019 4Q 2019 1Q 2020 Operating Profit Life Sciences 12 11 16 Δ2 24 (%) (8.2%) (7.1%) (9.7%) (Δ1.0%) (14.7%) 38 9 △11 △15 35 Farm Hannong (16.8%
Slide 10: Sales & Operating Profits by Business
Appendix Sales & Operating Profits by Business (Unit: KRW bn) 2018 2019 2020 LG CHEM 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 6,531 7,028 7,211 7,319 28,089 6,622 7,163 7,334 7,451 28,570 7,116 Operating Profits 655 706 605 289 2,255 281 279 392 -13 939 237 (%) 10.0% 10.0% 8.4% 4.0% 8.0% 4.2% 3.9% 5.3% -0.2
Slide 11: Income Statements
Appendix Income Statements (Unit:KRW bn) 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Sales 6,531 7,028 7,211 7,319 28,089 6,622 7,163 7,334 7,451 28,570 7,116 Cost of Sales 5,187 5,556 5,843 6,154 22,740 5,448 6,005 6,071 6,163 23,686 5,961 1,345 1,472 1,368 1,164 5,349 1,174 1,158 1,264 1,288 4,884 1
Slide 12: Financial Position
Appendix Financial Position (Unit:KRW bn) 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Assets 26,416 27,399 28,419 28,944 31,212 32,436 33,531 34,024 37,121 Cash and 3,132 2,830 3,333 2,557 3,122 2,667 2,085 1,921 2,797 Equivalents A/R 4,709 5,146 4,949 4,381 4,616 4,738 4,575 3,738 4,663 Inventory 3,7
Slide 13: Cash Flows
Appendix Cash Flows (Unit:KRW bn) 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Beginning 2,249 2,917 2,352 3,067 2,249 2,514 3,098 2,631 2,055 2,514 1,889 Cash Balance Operating Activities 37 82 1,198 808 2,125 644 246 395 1,836 3,121 -97 Operating Profits 655 706 605 289 2,255 281 279 392 -13 939 237
Slide 14: CAPEX / R&D Expenses
Appendix CAPEX / R&D Expenses CAPEX R&D Expenses (Unit:KRW tn) (Unit:KRW bn) 2020 2020 2018 2019 2018 2019 1Q 1Q Petrochemicals 1.4 1.8 0.5 Petrochemicals 144 155 39 Energy Solutions 1.9 3.9 0.7 Energy Solutions 320 388 98 Advanced Materials 0.5 0.6 0.1 Advanced Materials 235 192 39 Life Sciences 0.
Slide 15: Dividend Summary
Appendix Dividend Summary (Unit:KRW / Common Share) Dividend per Share 49.0% Dividend Payout Ratio(Consolidated) 31.2% 33.9% 23.7% 28.7% 28.7% 23.3% 19.7% 17.1% 13.6% 13.8% 6,000 6,000 5,000 4,500 4,000 4,000 4,000 4,000 4,000 3,500 2,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ※ Divi
Slide 16: Ethylene / PE Demand Supply
Appendix Ethylene / PE Demand Supply Ethylene Polyethylene (Unit : million tons) (Unit : million tons) 220 100% 150 140% 200 180 90% 120% 160 100 140 120 80% 100% 100 80 50 60 70% 80% 40 20 0 60% 0 60% '17 '18 '19 '20(e) '21(e) '22(e) '23(e) '17 '18 '19 '20(e) '21(e) '22(e) '23(e) (Source: IHS) Capa
Slide 17: Quarterly Price Trends
Appendix Quarterly Price Trends (Unit : USD/MT) (Unit : USD/MT) 1,351 2,024 2,009 1,334 1,331 2,018 1,228 1,213 1,929 1,182 1,793 1,227 1,887 1,726 1,204 1,136 1,087 1,058 1,060 1,594 1,625 1,029 1,582 1,114 1,559 1,093 1,094 1,011 957 1,504 956 1,464 996 961 1,435 1,024 886 1,504 1,378 880 1,390 1,
Slide 18: Monthly Price Trends
Appendix Monthly Price Trends (Unit : USD/MT) (Unit : USD/MT) 1,158 1,053 1,570 1,040 1,617 1,560 1,573 1,019 1,029 1,032 1,010 1,521 996 998 972 1,490 1,040 986 960 966 1,549 1,471 1,474 1,476 1,000 955 1,447 993 996 943 933 1,508 912 1,503 1,482 1,418 1,411 1,416 964 966 1,404 908 907 905 874 894
Slide 19: Copyright 2020 LG Chem
Copyrightⓒ 2020 LG Chem. All Rights Reserved.